International. According to consulting firm Lux Research, bio-based chemical and materials technologies have reached a tipping point, as companies are scaling to commercial production levels and rising revenues.
The category leading the growth will be chemical intermediates, such as adipic acid and lactic acid, with a growing capacity of 2.0 million metric tons (MT) to 4.9 million tons in 2017, while the capacity of bio-derived polymers – which currently stands at 1.1 million MT – will grow 18% per year through 2017.
"The basic science of bio-based materials and chemicals has advanced to the point that dozens of chemicals can now be produced from multiple raw materials, at costs competitive against oil, at least in theory and scale," said Julia Allen, an analyst at Lux Researhc and lead author of the report.
Lux Research analyzed 229 sites from 217 companies and 133 chemicals and types such as succinic acid and polyols in seven major categories and 22 subcategories. Several findings from the report are listed below:
Specialty chemicals set to flourish: Products such as farnese will grow at a compound annual growth rate (CAGR) of 46% by 2017, with companies set to benefit include players such as Solazyme and Segetis.
North America will emerge as number one: Today, North America ranks fourth in global capacity, but will become a leader by 2017. Part of Europe's overall capacity will be reduced from 37% in 2005 to 14% in 2017.
