A GROWING number of chemical companies are dipping their toes into the industrial biotechnology arena - not only to go with the green flow but to counteract the volatility of the petroleum market.
Germany-based specialty chemical producer LANXESS is the newest kid on the biotech block, as the company announced its $10m (?.2m) investment in US biobutanol developer Gevo in late May. LANXESS and Gevo also plan to produce isobutene - a key raw material in butyl rubber manufacturing - from sugar-based isobutanol.
Gevo has been developing a fermentation process to produce isobutanol from biomass, and started up its 1m gal/year first biobutanol demonstration plant in St. Joseph, Missouri, last September. As part of the deal, LANXESS' head of butyl rubber business unit, Ron Commander, will also gain a seat on Gevo's board of directors.
"With the success of its demonstration plant, we believe Gevo has the technology available to become a valued supply chain partner for LANXESS," says Commander.
LANXESS chairman and CEO Axel Heitmann noted in a statement the growing importance of green chemistry for stakeholders. "Biofuels have established a significant beachhead in the world of energy, and biological feedstocks are on their way to doing the same thing in the chemical industry," said Heitmann. "This investment broadens our future supply options against the background of volatile raw material prices and consolidation within the chemical industry."
The firms intend to produce isobutene by dehydrating isobutanol. LANXESS is working to optimize the dehydration process, which has already been successful in the laboratory.
BIO POWER PLAYERS
European chemical companies BASF,DSM and WACKER Chemie, and US-based DuPont are considered well-versed in biotechnology, given their background in fine chemicals, life sciences and agriculture biotechnology. BASF and DSM, both producers of biochemicals such as amino acids and vitamins, are now looking into the production of intermediate chemical succinic acid via the fermentation process.
Bio-based succinic acid was declared by the US Department of Energy in 2004 as a high-potential chemical platform for the synthesis of a multitude of chemical compounds, as well as an attractive replacement for petroleum-based maleic anhydride (MA).
In October 2009, BASF formed a development and production partnership with Dutch lactic acid producer Purac for the development of the industrial fermentation and downstream processing of biosuccinic acid. The firms expect to start their test production in the second quarter this year at Purac's plant in Spain. Capacity was not disclosed.
"We have a patent-protected processing technology that economically produces succinic acid of sufficient commercial quantity," says Tilo Habicher, director of health and environment at BASF Future Business. "Low-cost succinic acid has high potential as a platform chemical. One example is its use as a raw material for biodegradable polyester polymers."
Biotechnology is a key for BASF's future, says Habicher. These activities use the biotechnological methods of fermentation and biocatalysis to manufacture products such as enzymes and chiral intermediates.
"BASF has more than three decades of experience in the field of industrial biotechnology. It gives BASF an important alternative to chemical product synthesis, while the combination of biotechnological and chemical steps also frequently offers special opportunities," Habicher adds.
In 2005, DSM intensified its focus on combining its life science and material science technologies by creating four Emerging Business Areas (EBAs) as part of the company's Vision 2010 innovation strategies. White biotechnology is one of the four EBAs, which also include biomedical, personalized nutrition and specialty packaging.
"We are very well positioned in green chemistry, as well as in the biofuels arena, given our strong capabilities in biotechnology and enzyme technology," says DSM's chief innovation officer, Rob van Leen. "We will focus on opportunities where white biotechnology enables drastic process improvements compared to the chemical technologies."
DSM started investing in the development of biosuccinic acid in 2008 by forming a partnership with French starch derivatives producer Roquette. The companies are already producing biosuccinic acid for commercial testing in a 300 tonne/year demonstration plant in Lestrem, France.
DSM expects full commercial production by 2011 or 2012. "We are now in the final stages of establishing a joint venture [JV] for our bio-succinic acid, which we expect to happen this year," says van Leen. "The JV will build a large-scale plant and we are looking at different options in Europe, Asia or Brazil as we try to figure out where is the best place to put a decent-sized facility."
BUYING BIG
DSM also announced its investment in US green chemistry company Segetis in January this year. The start-up firm has been developing a new monomer platform based on levulinic ketals (L-ketals), which are built from levulinic acid, a chemical derived from cellulosic biomass, and biobased hydroxyl compounds. Potential applications for L-ketals include plasticizers, polyols, solvents, surfactants, and adhesives.
"Biofuels have established a significant beachhead in the world of energy"
Axel Heitmann, chairman and CEO, LANXESS
In March 2008, DSM invested in China-based polyhydroxyalkanoate (PHA) developer Tianjin GreenBio Materials. PHA is produced through fermentation process and is being developed as a bio-based polymer for applications in fibers, films and foams.
Van Leen says they are waiting to see the results of their PHA investment but did not comment further on activity updates. Tianjin GreenBio started operating its 10,000 tonne/year PHA plant in Tianjin, China, last year.
German silicones producer WACKER Chemie even renamed in March its fine chemicals division to WACKER BIOSOLUTIONS to underline the company's focus on biotechnology.
Gunter Wich, head of biotechnology at WACKER's research and development department notes that the firm has more than 20 years of experience. "The company already deploys biotech methods to manufacture several products, such as our cylcodextrins, cysteine as well as biopharmaceuticals. Today, we are market and technology leaders with our fermentative cysteine and globally the biggest producer of natural cyclodextrines," he adds.
Rising prices of petrochemicals and at the same time improvement in biotechnology have made bio-based production processes more economically competitive for bulk chemicals, says Wich. He notes several projects underway aiming for production of bio-based bulk chemicals that have strategic importance to WACKER.
WACKER's polymers business is particularly reliant on acetic acid and ethylene as building blocks for its vinyl acetate monomers. "We are evaluating the scope for generating acetic acid from bioethanol or by direct fermentation from biomass, and the production of ethylene via dehydration of bioethanol. This would allow a sustainable production of vinyl acetate-based polymers independent from crude oil and petrochemical refineries," says Wich.
In October 2009, WACKER started a 500 tonne/year pilot plant that produces acetic acid via its ACEO process in Burghausen, Germany. The process involves a biomass feedstock being converted to ethanol using yeast, and then producing acetic acid via a gas-phase oxidation process.
The ACEO process is able to produce more than 90% bioacetic acid yield. WACKER says the ACEO process technology is available for licensing.
WACKER is also looking at two other bio-acetic acid routes. One is via fermentation of biomass using bacteria to butane 2,3 diol, which could be then dehydrated to produce methyl ethyl ketone (MEK) or directly produce acetic acid via gas-phase oxidation. Acetic acid from MEK is also possible via gas-phase oxidation, according to WACKER.
The second route is fermenting biomass feedstock directly to acetate/acetic acid using a proprietary bacteria.
IN THE LEAD
DuPont has already mastered producing 1,3 propanediol (PDO) via fermentation process at its JV firm DuPont Tate & Lyle BioProducts.
The JV announced plans to expand its corn-based Bio-PDO production by 35% from the current 45,000 tonne/year capacity last month. The expansion is expected to be complete by the second quarter of 2011.
DuPont is also considering a second Bio-PDO facility to be built next year, due to start up by 2013. The location is still to be determined. Strong demand is the main driver for the capacity increases, according to Steve Mirshak, president of DuPont Tate & Lyle BioProducts. "We had record sales last year and are already anticipating the need for additional capacity after just three years of operation. This expansion is proof that industrial biotechnology can deliver products that meet the needs of industry and consumers, while contributing to a smaller environmental footprint," Mirshak said in a statement.
DuPont's Bio-PDO, which is sold under the Zemea and Susterra brands, is used as an ingredient ranging from cosmetics and personal care formulations to fluids and polymers, including DuPont's Sorona renewably sourced polymer. The Sorona biopolymer operations have doubled since 2007 and are now being produced in four production facilities, two in the US and two in China.
The Sorona apparel business showed an aggregate growth rate of 90% in revenue for the past two years, says John Ranieri, DuPont Applied BioSciences vice president. Sales of residential carpet under the brand Mohawk SmartStrand, which contains the Sorona polymer, have also doubled in the past two years.
"[The] DuPont Applied BioSciences business was able to grow through the downturn by offering renewable materials that are high performing and cost effective," says Ranieri. "We are clearly uniquely positioned to lead in industrial biotechnology. We are connecting our core technology capabilities to markets that can be transformed by our science and this strategy is beginning to pay off."
DuPont expects its Applied BioSciences business - which includes biomaterials such as the Bio-PDO, Sorona, biopolyol, biomedical materials, as well as biofuels such as cellulosic ethanol and biobutanol - to produce revenues of $1bn and pretax profits of $250m by 2015.
Other chemical companies looking to pursue the biotech route for commodity chemical production include US-based Dow Chemical and Brazil's Braskem. Both are looking to produce polyethylene (PE) resins from sugarcane-based ethanol.
Braskem plans to start its new 200,000 tonne/year bio-based PE plant in Triunfo, Rio Grande do Sul state in September. It expects its green PE resins to be commercially available in supermarket bags by 2011.
Dow is searching for a new partner, replacing its former Brazilian partner, Crystalsev, to build its green PE plant. They announced plans in 2007 for a 350,000 tonne/year PE facility in Santa Vitoria, Brazil, which would process 8m tonnes/year of sugarcane.
Dow is also looking to produce PE from algae-based ethanol through a development partnership with US algae technology developer Algenol Biofuels, which was announced in July 2009. Dow is building a $50m pilot algae biofuels plant co-located with its existing complex in Freeport, Texas, US.
The plant, which will use carbon dioxide feedstock from Dow's chemical facility, will produce 100,000 gal/year of ethanol. The partnership expects to break ground for the pilot biorefinery this year.
Germany-based specialty chemical producer LANXESS is the newest kid on the biotech block, as the company announced its $10m (?.2m) investment in US biobutanol developer Gevo in late May. LANXESS and Gevo also plan to produce isobutene - a key raw material in butyl rubber manufacturing - from sugar-based isobutanol.
Gevo has been developing a fermentation process to produce isobutanol from biomass, and started up its 1m gal/year first biobutanol demonstration plant in St. Joseph, Missouri, last September. As part of the deal, LANXESS' head of butyl rubber business unit, Ron Commander, will also gain a seat on Gevo's board of directors.
"With the success of its demonstration plant, we believe Gevo has the technology available to become a valued supply chain partner for LANXESS," says Commander.
LANXESS chairman and CEO Axel Heitmann noted in a statement the growing importance of green chemistry for stakeholders. "Biofuels have established a significant beachhead in the world of energy, and biological feedstocks are on their way to doing the same thing in the chemical industry," said Heitmann. "This investment broadens our future supply options against the background of volatile raw material prices and consolidation within the chemical industry."
The firms intend to produce isobutene by dehydrating isobutanol. LANXESS is working to optimize the dehydration process, which has already been successful in the laboratory.
BIO POWER PLAYERS
European chemical companies BASF,DSM and WACKER Chemie, and US-based DuPont are considered well-versed in biotechnology, given their background in fine chemicals, life sciences and agriculture biotechnology. BASF and DSM, both producers of biochemicals such as amino acids and vitamins, are now looking into the production of intermediate chemical succinic acid via the fermentation process.
Bio-based succinic acid was declared by the US Department of Energy in 2004 as a high-potential chemical platform for the synthesis of a multitude of chemical compounds, as well as an attractive replacement for petroleum-based maleic anhydride (MA).
In October 2009, BASF formed a development and production partnership with Dutch lactic acid producer Purac for the development of the industrial fermentation and downstream processing of biosuccinic acid. The firms expect to start their test production in the second quarter this year at Purac's plant in Spain. Capacity was not disclosed.
"We have a patent-protected processing technology that economically produces succinic acid of sufficient commercial quantity," says Tilo Habicher, director of health and environment at BASF Future Business. "Low-cost succinic acid has high potential as a platform chemical. One example is its use as a raw material for biodegradable polyester polymers."
Biotechnology is a key for BASF's future, says Habicher. These activities use the biotechnological methods of fermentation and biocatalysis to manufacture products such as enzymes and chiral intermediates.
"BASF has more than three decades of experience in the field of industrial biotechnology. It gives BASF an important alternative to chemical product synthesis, while the combination of biotechnological and chemical steps also frequently offers special opportunities," Habicher adds.
In 2005, DSM intensified its focus on combining its life science and material science technologies by creating four Emerging Business Areas (EBAs) as part of the company's Vision 2010 innovation strategies. White biotechnology is one of the four EBAs, which also include biomedical, personalized nutrition and specialty packaging.
"We are very well positioned in green chemistry, as well as in the biofuels arena, given our strong capabilities in biotechnology and enzyme technology," says DSM's chief innovation officer, Rob van Leen. "We will focus on opportunities where white biotechnology enables drastic process improvements compared to the chemical technologies."
DSM started investing in the development of biosuccinic acid in 2008 by forming a partnership with French starch derivatives producer Roquette. The companies are already producing biosuccinic acid for commercial testing in a 300 tonne/year demonstration plant in Lestrem, France.
DSM expects full commercial production by 2011 or 2012. "We are now in the final stages of establishing a joint venture [JV] for our bio-succinic acid, which we expect to happen this year," says van Leen. "The JV will build a large-scale plant and we are looking at different options in Europe, Asia or Brazil as we try to figure out where is the best place to put a decent-sized facility."
BUYING BIG
DSM also announced its investment in US green chemistry company Segetis in January this year. The start-up firm has been developing a new monomer platform based on levulinic ketals (L-ketals), which are built from levulinic acid, a chemical derived from cellulosic biomass, and biobased hydroxyl compounds. Potential applications for L-ketals include plasticizers, polyols, solvents, surfactants, and adhesives.
"Biofuels have established a significant beachhead in the world of energy"
Axel Heitmann, chairman and CEO, LANXESS
In March 2008, DSM invested in China-based polyhydroxyalkanoate (PHA) developer Tianjin GreenBio Materials. PHA is produced through fermentation process and is being developed as a bio-based polymer for applications in fibers, films and foams.
Van Leen says they are waiting to see the results of their PHA investment but did not comment further on activity updates. Tianjin GreenBio started operating its 10,000 tonne/year PHA plant in Tianjin, China, last year.
German silicones producer WACKER Chemie even renamed in March its fine chemicals division to WACKER BIOSOLUTIONS to underline the company's focus on biotechnology.
Gunter Wich, head of biotechnology at WACKER's research and development department notes that the firm has more than 20 years of experience. "The company already deploys biotech methods to manufacture several products, such as our cylcodextrins, cysteine as well as biopharmaceuticals. Today, we are market and technology leaders with our fermentative cysteine and globally the biggest producer of natural cyclodextrines," he adds.
Rising prices of petrochemicals and at the same time improvement in biotechnology have made bio-based production processes more economically competitive for bulk chemicals, says Wich. He notes several projects underway aiming for production of bio-based bulk chemicals that have strategic importance to WACKER.
WACKER's polymers business is particularly reliant on acetic acid and ethylene as building blocks for its vinyl acetate monomers. "We are evaluating the scope for generating acetic acid from bioethanol or by direct fermentation from biomass, and the production of ethylene via dehydration of bioethanol. This would allow a sustainable production of vinyl acetate-based polymers independent from crude oil and petrochemical refineries," says Wich.
In October 2009, WACKER started a 500 tonne/year pilot plant that produces acetic acid via its ACEO process in Burghausen, Germany. The process involves a biomass feedstock being converted to ethanol using yeast, and then producing acetic acid via a gas-phase oxidation process.
The ACEO process is able to produce more than 90% bioacetic acid yield. WACKER says the ACEO process technology is available for licensing.
WACKER is also looking at two other bio-acetic acid routes. One is via fermentation of biomass using bacteria to butane 2,3 diol, which could be then dehydrated to produce methyl ethyl ketone (MEK) or directly produce acetic acid via gas-phase oxidation. Acetic acid from MEK is also possible via gas-phase oxidation, according to WACKER.
The second route is fermenting biomass feedstock directly to acetate/acetic acid using a proprietary bacteria.
IN THE LEAD
DuPont has already mastered producing 1,3 propanediol (PDO) via fermentation process at its JV firm DuPont Tate & Lyle BioProducts.
The JV announced plans to expand its corn-based Bio-PDO production by 35% from the current 45,000 tonne/year capacity last month. The expansion is expected to be complete by the second quarter of 2011.
DuPont is also considering a second Bio-PDO facility to be built next year, due to start up by 2013. The location is still to be determined. Strong demand is the main driver for the capacity increases, according to Steve Mirshak, president of DuPont Tate & Lyle BioProducts. "We had record sales last year and are already anticipating the need for additional capacity after just three years of operation. This expansion is proof that industrial biotechnology can deliver products that meet the needs of industry and consumers, while contributing to a smaller environmental footprint," Mirshak said in a statement.
DuPont's Bio-PDO, which is sold under the Zemea and Susterra brands, is used as an ingredient ranging from cosmetics and personal care formulations to fluids and polymers, including DuPont's Sorona renewably sourced polymer. The Sorona biopolymer operations have doubled since 2007 and are now being produced in four production facilities, two in the US and two in China.
The Sorona apparel business showed an aggregate growth rate of 90% in revenue for the past two years, says John Ranieri, DuPont Applied BioSciences vice president. Sales of residential carpet under the brand Mohawk SmartStrand, which contains the Sorona polymer, have also doubled in the past two years.
"[The] DuPont Applied BioSciences business was able to grow through the downturn by offering renewable materials that are high performing and cost effective," says Ranieri. "We are clearly uniquely positioned to lead in industrial biotechnology. We are connecting our core technology capabilities to markets that can be transformed by our science and this strategy is beginning to pay off."
DuPont expects its Applied BioSciences business - which includes biomaterials such as the Bio-PDO, Sorona, biopolyol, biomedical materials, as well as biofuels such as cellulosic ethanol and biobutanol - to produce revenues of $1bn and pretax profits of $250m by 2015.
Other chemical companies looking to pursue the biotech route for commodity chemical production include US-based Dow Chemical and Brazil's Braskem. Both are looking to produce polyethylene (PE) resins from sugarcane-based ethanol.
Braskem plans to start its new 200,000 tonne/year bio-based PE plant in Triunfo, Rio Grande do Sul state in September. It expects its green PE resins to be commercially available in supermarket bags by 2011.
Dow is searching for a new partner, replacing its former Brazilian partner, Crystalsev, to build its green PE plant. They announced plans in 2007 for a 350,000 tonne/year PE facility in Santa Vitoria, Brazil, which would process 8m tonnes/year of sugarcane.
Dow is also looking to produce PE from algae-based ethanol through a development partnership with US algae technology developer Algenol Biofuels, which was announced in July 2009. Dow is building a $50m pilot algae biofuels plant co-located with its existing complex in Freeport, Texas, US.
The plant, which will use carbon dioxide feedstock from Dow's chemical facility, will produce 100,000 gal/year of ethanol. The partnership expects to break ground for the pilot biorefinery this year.
