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& Chart 5

photo: NatureWorks PLA

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World Bioplastics
Industry Study with Forecasts for 2013 & 2018
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Study #2548
November 2009
$5800
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World Bioplastics
Industry Study with Forecasts for 2013 & 2018

Table of Contents
Executive Summary
Market EnvironmenT
General ....................................................... 4
World Economic Overview............................... 4
Recent Historical Trends............................. 5
World Economic Outlook............................. 7
World Population Outlook..............................11
World Manufacturing Outlook.........................12
World Agricultural Outlook.............................14
Maize.....................................................16
Sugar Crops.............................................18
World Plastics Overview.................................20
Plastics Demand.......................................21
Plastics Production...................................24
Pricing Trends..........................................25
World Converted Flexible Plastic
Packaging Outlook.....................................28
Regulatory & Environmental Considerations......31
Degradability Standards & Certification........31
Composting & Recycling............................34
Legislation..............................................36
Food Versus Industrial Crop Use..................37

WORLD BIOPLASTICS
OVERVIEW
General ......................................................39
Product Overview.........................................40
Biodegradable..........................................42
Starch-Based Resins..............................44
Polylactic Acid......................................47
Petroleum-Based Resins.........................50
PHAs...................................................53
Other..................................................56
Non-Biodegradable...................................58
Market Overview..........................................63
Packaging................................................65
Packaging Film.....................................67
Loose-Fill.............................................68
Containers & Other................................68
Nonpackaging..........................................69
Bags...................................................72
Foodservice Disposables.........................73
Automotive & Electronics.......................74
Agricultural Films..................................75
Other..................................................76
Regional Overview........................................77
Demand..................................................77
Production...............................................80
Trade Flows..............................................83

NORTH AMERICA

Company Profiles

General ......................................................85
Bioplastics Demand......................................86
United States..............................................89
Canada.......................................................96
Mexico..................................................... 101

Archer-Daniels-Midland............................... 227
Arkema SA................................................ 229
BASF SE.................................................... 231
BioMatera Incorporated.............................. 232
Braskem SA............................................... 233
Cardia Bioplastics....................................... 234
Cargill Incorporated................................... 236
Cereplast Incorporated................................ 239
Dow Chemical............................................ 241
DuPont (EI) de Nemours.............................. 242
Eastman Chemical...................................... 245
EBM Biodegradable Materials....................... 246
FKuR Kunststoff......................................... 246
Grace Biotech............................................ 247
Innovia Films............................................ 248
IRe Chemical............................................. 250
Merquinsa................................................. 251
Metabolix Incorporated............................... 252
Mitsubishi Chemical................................... 254
Ningbo Tianan Biologic Material................... 255
Novamont SpA........................................... 256
Perstorp AB............................................... 257
PHB Industrial........................................... 258
Plantic Technologies................................... 259
Rodenburg Biopolymers............................... 261
Showa Denko............................................. 262
Solvay SA................................................. 263
Sphere SA................................................. 265
Stanelco plc.............................................. 266
Synbra Holding.......................................... 267
Teijin Limited............................................ 268
Total SA................................................... 270
Zhejiang Hangzhou Xinfu Pharmaceutical....... 271
Zhejiang Hisun Biomaterials........................ 272

WESTERN EUROPE
General .................................................... 107
Bioplastics Demand.................................... 109
Germany................................................... 111
Italy........................................................ 116
United Kingdom......................................... 122
France...................................................... 127
Netherlands.............................................. 132
Other Western Europe................................. 137
Belgium................................................ 141
Norway................................................. 141
All Other............................................... 141

ASIA/PACIFIC
General .................................................... 144
Bioplastics Demand.................................... 146
Japan...................................................... 149
China....................................................... 156
South Korea.............................................. 162
Other Asia/Pacific...................................... 168
Taiwan.................................................. 173
Australia............................................... 173
All Other............................................... 174

OTHER REGIONS
Latin America: General................................ 177
Latin America: Bioplastics Demand............... 179
Brazil................................................... 181
Other Latin America................................ 187
Eastern Europe.......................................... 192
Africa/Mideast........................................... 198

List of Tables/Charts

INDUSTRY STRUCTURE

1 Summary Table....................................... 3

General .................................................... 204


Market Share............................................. 206
Mergers & Acquisitions................................ 210
Manufacturing Requirements........................ 211
Research & Development............................. 213
Marketing Strategies................................... 215
Channels of Distribution.............................. 218
Competitive Strategies................................ 220
Cooperative Agreements.............................. 221

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Executive Summary

Market EnvironmenT
1 World Gross Domestic Product by Region...10
2 World Population by Region....................12
3 World Manufacturing Value
Added by Region................................14
4 World Agricultural Value Added by Region 16
Cht World Maize Production by Region, 2008...18
Cht World Sugar Crop Production
by Region, 2008................................20
5 World Plastic Resin Demand by Region......23
(continued on next page)

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World Bioplastics
Industry Study with Forecasts for 2013 & 2018

List of Tables/Charts
(continued from previous page)
Cht World Plastic Resin Demand
by Region, 2008................................23
6 World Plastic Resin Production by Region.. 25
7 Plastic Resin Pricing..............................27
Cht Plastic Resin Pricing Trends, 1998-2018....28
8 World Converted Flexible Plastic
Packaging Demand by Region..............30

WORLD BIOPLASTICS
OVERVIEW
1 World Bioplastics Demand by Type...........41
2 World Biodegradable Plastics
Demand by Type................................43
Cht World Biodegradable Plastics
Demand by Type, 1998-2018................44
3 World Starch-Based Resin Demand
by Region & Market............................47
4 World Polylactic Acid Demand
by Region & Market............................50
5 World Petroleum-Based Bioplastic Demand
by Region & Market............................53
6 World PHA Resin Demand
by Region & Market............................55
7 World Other Biodegradable Plastic Resin
Demand by Region & Market................58
8 World Non-Biodegradable Bioplastics
Demand by Type, Region & Market........62
Cht World Non-Biodegradable Bioplastics
Demand by Type, 1998-2018................63
9 World Bioplastics Demand by Market........64
10 World Packaging Demand for Bioplastics
by Application & Region.....................66
Cht World Packaging Demand for Bioplastics
by Application, 2008..........................67
11 World Nonpackaging Demand for
Bioplastics by Application & Region......71
Cht World Nonpackaging Demand for
Bioplastics by Application, 2008..........72
12 World Bioplastics Demand by Region........79
Cht Bioplastics Demand by
Region, 1998-2018............................80
13 World Bioplastics Production by Region....82
Cht Bioplastics Production by
Region, 1998-2018............................83
14 World Bioplastics Net Exports by Region...84

NORTH AMERICA
1 North America -- Bioplastics
Supply & Demand...............................86
Cht North America Bioplastics
Demand by Country, 2008....................89

2 North America -- Bioplastics


Demand by Type & Market...................88
3 United States -- Bioplastics
Supply & Demand...............................92
4 United States -- Bioplastics
Demand by Type................................94
5 United States -- Bioplastics
Demand by Market.............................96
6 Canada -- Bioplastics Supply & Demand....98
7 Canada -- Bioplastics Demand by Type......99
8 Canada -- Bioplastics Demand by Market 101
9 Mexico -- Bioplastics Supply & Demand... 103
10 Mexico -- Bioplastics Demand by Type.... 104
11 Mexico -- Bioplastics Demand by Market 106

WESTERN EUROPE
1 Western Europe -- Bioplastics
Supply & Demand............................. 108
2 Western Europe -- Bioplastics
Demand by Type & Market................. 110
Cht Western Europe Bioplastics
Demand by Country, 2008.................. 111
3 Germany -- Bioplastics Supply & Demand 113
4 Germany -- Bioplastics Demand by Type.. 114
5 Germany -- Bioplastics
Demand by Market........................... 116
6 Italy -- Bioplastics Supply & Demand..... 118
7 Italy -- Bioplastics Demand by Type....... 120
8 Italy -- Bioplastics Demand by Market.... 121
9 United Kingdom -- Bioplastics
Supply & Demand............................. 123
10 United Kingdom -- Bioplastics
Demand by Type.............................. 125
11 United Kingdom -- Bioplastics
Demand by Market........................... 126
12 France -- Bioplastics Supply & Demand... 128
13 France -- Bioplastics Demand by Type..... 130
14 France -- Bioplastics Demand by Market.. 131
15 Netherlands -- Bioplastics
Supply & Demand............................. 133
16 Netherlands -- Bioplastics
Demand by Type.............................. 135
17 Netherlands -- Bioplastics
Demand by Market........................... 136
18 Other Western Europe -- Bioplastics
Supply & Demand............................. 138
19 Other Western Europe -- Bioplastics
Demand by Country & Type . ............. 140
20 Other Western Europe -- Bioplastics
Demand by Market........................... 143

ASIA/PACIFIC
1 Asia/Pacific -- Bioplastics
Supply & Demand............................. 146

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2 Asia/Pacific -- Bioplastics
Demand by Type & Market................. 148
Cht Asia/Pacific Bioplastics Demand
by Country, 2008............................. 149
3 Japan -- Bioplastics Supply & Demand.... 151
4 Japan -- Bioplastics Demand by Type...... 153
5 Japan -- Bioplastics Demand by Market... 155
6 China -- Bioplastics Supply & Demand.... 158
7 China -- Bioplastics Demand by Type...... 160
8 China -- Bioplastics Demand by Market... 162
9 South Korea -- Bioplastics
Supply & Demand............................. 164
10 South Korea -- Bioplastics
Demand by Type.............................. 166
11 South Korea -- Bioplastics
Demand by Market........................... 167
12 Other Asia/Pacific -- Bioplastics
Supply & Demand............................. 170
13 Other Asia/Pacific -- Bioplastics
Demand by Country & Type................ 172
14 Other Asia/Pacific -- Bioplastics
Demand by Market........................... 176

OTHER REGIONS
1 Latin America -- Bioplastics
Supply & Demand............................. 179
2 Latin America -- Bioplastics
Demand by Type & Market................. 181
3 Brazil -- Bioplastics Supply & Demand.... 183
4 Brazil -- Bioplastics Demand by Type...... 185
5 Brazil -- Bioplastics Demand by Market... 187
6 Other Latin America -- Bioplastics
Supply & Demand............................. 190
7 Other Latin America -- Bioplastics
Demand by Type.............................. 191
8 Other Latin America -- Bioplastics
Demand by Market........................... 192
9 Eastern Europe -- Bioplastics
Supply & Demand............................. 194
10 Eastern Europe -- Bioplastics
Demand by Country & Type................ 196
11 Eastern Europe -- Bioplastics
Demand by Market........................... 197
12 Africa/Mideast -- Bioplastics
Supply & Demand............................. 200
13 Africa/Mideast -- Bioplastics
Demand by Type.............................. 201
14 Africa/Mideast -- Bioplastics
Demand by Market........................... 203

INDUSTRY STRUCTURE
1 Bioplastics Sales by Company, 2008....... 205
Cht World Bioplastics Market Share, 2008..... 206
2 Selected Acquisitions & Divestitures....... 211
3 Selected Cooperative Agreements........... 223

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Study #2548
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World Bioplastics
Industry Study with Forecasts for 2013 & 2018

Growth factors include consumer demand for more environmentally-sustainable products, and
increasing restrictions on the use of nondegradable plastic products, particularly plastic bags.

Global demand for bioplastics, plastic


resins that are biodegradable or derived
from plant-based sources, will rise more
than fourfold to 900,000 metric tons in
2013, valued at $2.6 billion. Growth will
be fueled by a number of factors,
including consumer demand for more
environmentally-sustainable products,
the development of bio-based feedstocks for commodity plastic resins, and
increasing restrictions on the use of
nondegradable plastic products, particularly plastic bags. Most important,
however, will be the expected continuation of high crude oil and natural gas
prices, which will allow bioplastics to
become more cost-competitive with
petroleum-based resins.

Non-biodegradable types
to be fastest growing
Non-biodegradable plant-based plastics
will be the primary driver of bioplastics
demand, rising from just 23,000 metric
tons in 2008 to nearly 600,000 metric
tons in 2013. Biodegradable plastics,
such as starch-based resins, polylactic
acid (PLA) and degradable polyesters,
accounted for the vast majority (nearly
90 percent) of bioplastics demand in
2008. Double-digit gains are expected to
continue, fueled in part by the emergence on the commercial market of
polyhydroxy-alkanoates (PHAs). PLA will
also see strong advances in demand as
new production capacity comes online,

Western Europe
38%

World Bioplastics Demand, 2008


(200,000 metric tons)

North America
29%

Asia/Pacific
29%
photo: PolyOne

World demand to rise more


than fourfold by 2013

Other Regions 4%

lowering the price of the resin and


making it more widely available.

Brazil, China to become


major bioplastic producers
Western Europe was the largest regional
market for bioplastics in 2008, accounting for about 40 percent of world demand. Bioplastics sales in the region
benefit from strong consumer demand
for biodegradable and plant-based
products, a regulatory environment that
favors bioplastics over petroleum resins,
and an extensive infrastructure for
composting. Going forward, however,
demand will grow more rapidly in the
Asia/Pacific region, which will surpass
the West European market by 2013.

Gains will be stimulated by strong


demand in Japan, which has focused
intently on the replacement of petroleumbased plastics. Other regions, such as
Latin America and Eastern Europe, will
see stellar gains in bioplastics demand
from a very small 2008 base.
Currently, world bioplastics production is
heavily concentrated in the developed
countries of North America, Western
Europe and Japan. This will change
dramatically by 2013 when Brazil will
become the worlds leading producer of
bioplastics. Furthermore, China plans to
open over 100,000 metric tons of new
bioplastics capacity by 2013, making that
country a major player in the global
industry.
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Study #2548
November 2009
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272 Pages

World Bioplastics
Industry Study with Forecasts for 2013 & 2018

Sample Text,
Table & Chart

TABLE VI-4
JAPAN -- BIOPLASTICS DEMAND BY TYPE
(thousand metric tons)
Item

1998 2003 2008 2013 2018

Plastic Resin Demand 11650 10820 10990 11800 12600


kg bioplastic/m ton plastic 0.94 1.57 2.82 15.08 24.60

asia/pacific
Bioplastics Demand
11
17
31 178 310
Biodegradable:
7
11
24
43 100
Japan: Products
Starch-Based Resins
1
3
8
13
25

Demand for bioplastics in Japan will rise nearly sixfold
178,000 Acid neg
to Polylactic
1
7
15
43
metric tons in 2013, outpacing the Asia/Pacific region as a
whole
and
Petroleum-Based
Resins
2
4
6
9
13
making the country the worlds largest market for bioplastics.
Although
Other Biodegradable
4
3
3
6
19
Japan is already one of the largest markets for bioplastics, demand
will
Non-Biodegradable
4
6
7 135 210
advance at a significantly faster pace than other established bioplastics
markets such as the US and Western Europe. Gains will be driven by a
variety of factors, including falling bioplastic prices compared to their
traditional counterparts, a rising consumer focus on sustainability issues,
the ongoing development of certification and labeling systems for bioplastics in Japan, and the increased availability and variety of bioplastic
products. Legislative and regulatory action is also expected to play a
role, as the Japanese government has set an ambitious goal of replacing 20 percent of petroleum-based plastic consumption with bio-based
plastics by 2020. While this goal is unlikely to be met, efforts toward the
promotion of bioplastic use in Japan will continue to be strong.

sample
table

sample
text


The bioplastics market in Japan includes a diverse range of products, with starch-based resins, PLA, petroleum-based biodegradable
resins, and non-degradable bioplastics each accounting for around 20 to
25 percent of 2008 demand. Through 2013, the fastest gains among biodegradable plastics are expected for PLA, which will benefit from more
widespread availability as production in China begins to come online.
Additionally, Japanese compounders are making efforts to improve the
performance of PLA-based materials in order to penetrate durable goods
markets such as automotive and electronics uses.

CHART VIII-1

The most rapid growth among bioplastic products in Japan, however, will be for non-biodegradable resins such as bio-based polyethylene. WORLD BIOPLASTICS MARKET SHARE, 2008
($793 million)
While this is true in most countries, it is especially apparent in Japan,
due to the willingness of consumers to pay a premium for bio-based materials, as well as achieving the governments goal of bio-based plastic
152

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O th e r s
38.2%

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sample
chart

Market
L ead ers
61.8%

18.3%

N at u reW o rks

16.4%

Arkem a

15.8%

In n o v ia F ilm s

11.3%

N o v am o n t

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Study #2548
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World Bioplastics
Industry Study with Forecasts for 2013 & 2018

Sample Profile,
Table & Forecast

TABLE VI-5
JAPAN -- BIOPLASTICS DEMAND BY MARKET
(thousand metric tons)
Item

1998 2003 2008 2013 2018

Population (million persons) 126.3 127.6 127.4 125.9 123.8


kg bioplastic/capita 0.09 0.13 0.24 1.41 2.50

Bioplastics Demand
11
17
31 178 310
Packaging:
6
6
12
75 124
Packaging Film
4
4
5
47
66
Loose-Fill
1
1
3
3
4
Containers & Other
1
1
4
25
54
Nonpackaging:
5
11
19 103 186
Bags neg
2
4
32
46
Automotive & Electronics
3
4
4
9
22
Agricultural Films
1
2
4
7
12
Foodservice Disposables neg
1
3
6
15
Other Nonpackaging
1
2
4
49
91

% Japan 64.7 68.0 53.4 58.9 47.0
Asia/Pacific Bioplastics Demand
17
25
58 302 660

sample
table

COMPANY PROFILES
Ningbo Tianan Biologic Material Company Limited
68 Dagang Road, Number 6
Beilun, Ningbo, Zhejiang
China
86-574-86895240
http://www.tianan-enmat.com
Annual Sales: $5 million (estimated)
Employment: 85 (estimated)

sample
profile

Key Products: polyhydroxybutyrate-valerate polymers



Ningbo Tianan Biologic Material, which also operates as Tianan,
is among the worlds leading producers of polyhydroxybutyrate-valerate (PHBV), a bio-based and biodegradable polymer. The Company is
privately held.

The Companys PHBV, which is marketed under the ENMAT
brand name, is produced via the fermentation of natural sugars and is
100-percent biodegradable under standard composting conditions. ENMAT PHBV is capable of withstanding temperatures up to 170 degrees
Celsius and offers moisture, gas and aroma barrier properties. This
product is intended for use as an alternative to petroleum-based plastics
in injection molding, paper coating, cast film and sheet, blown film,
thermoforming and other processes. ENMAT PHBV can be employed
in such applications as the production of films, pens, tableware, packaging, home and office goods, electronic parts, automotive components,
and medical products. Specific products from Tianan include ENMAT-Y1000, a pure powder; ENMAT Y1010, a powder blended with
a nucleant and antioxident; and ENMAT Y1000P, a pelletized form of
ENMAT Y1010. In addition, the Company offers ENMAT501 and
255

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Bioplastics demand in Japan will


advance nearly sixfold to 178,000
metric tons in 2013. Like the range of
bioplastic products in Japan, markets
for bioplastics in the country show a
substantial degree of diversity, with a
significant amount of demand in most
major market categories. Nonpackaging
markets accounted for the largest portion of demand in 2008. However, more
rapid gains through 2013 are expected
in packaging markets, fueled by ...
--Section VI, pg. 154

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INDUSTRY MARKET RESEARCH FOR BUSINESS LEADERS, STRATEGISTS, DECISION MAKERS

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National Roadmap for the Development of

Bioplastics Industry
(2008 2012)

In accordance with the policy towards


New Wave Industries

NATIONAL INNOVATION AGECY


MINISTRY OF SCIENCE AND TECHNOLOGY

Innovation: as new things derived from the exploitation of knowledge and creativity,
leading to enhancement of social and economic value.

All rights reserved. No part of this publication may be reproduced,


Stored in retrieval system or transmitted, in any form or by any means,
Electronics, mechanical, photocopying, recording or otherwise,
without written permission of the copyright holders.

Design by
National Innovation Agency (NIA)
73/1 Rama VI Road, Rajdhevee, Bangkok 10400 Thailand
Tel. +662-2-644 6000 Fax. +66-2-644 8444
http://www.nia.or.th

Table of Contents
Page
Executive Summary

Chapter 1 Current Situation of Bioplastics in Thailand

1.1 Introduction

1.2 Status of bioplastics in Thailand

1.3 Thailands readiness for a bioplastics industry

13

1.3.1 Raw materials

13

1.3.2 The plastics industry and market growth in Thailand

18

1.3.3 Government policy and support measures

23

Chapter 2 Strategy, Action Plans & Budget

25

Strategy 1 Sufficient Supply of Biomass Feedstock

27

Strategy 2 Accelerating Technology Development and

30

Technology Cooperation
Strategy 3 Building Industry and Innovative Businesses

38

Strategy 4 Establishment of Supportive Infrastructure

42

Abbreviations

55

Executive Summary
1. Rationale
Bioplastics, as the biodegradable plastics, are plastics which could be derived
from plant-based materials or other renewable resources through fermentation
process. This process requires low energy input and produces the plastics with the
ability to degrade when being composted, yielding carbon dioxide and water as end
products. In fact, bioplastics have become one of the most innovative materials which
answer to the ever-increasing demand for more environmentally friendly solutions.
Around the world, especially in the leading industrialized nations, there is a great
awareness in searching for new raw materials or polymers to improve the quality and
functionality of bioplastics so that they can replace the conventional plastics that
produced by petrochemical industries.
An awareness in using bioplastics can be witnessed in many developed
countries where a wide range of favorable initiatives are put into action, including
government policies, a research and development, and the industrial promotion. These
resulted in a rapid growth of bioplastics business in a clearly defined direction. The
United States, for example, has stepped forward to become the pioneer in bioplastics
industry as a result of the success in the industrial-scale bioplastics resin production.
NatureWork LLC (USA) has successfully produced lactic acids and polylactic acids
(PLAs) from corn feedstock; whereas, Metabolix Inc. has developed the technology to
produce PHAs (Polyhydroxyalkanoates) and is constructing its first production
facility in the USA.
This development has been encouraged by the state policies to increase the
production of biomass-based products from 5% in 2002 to 12% and 20% in 2010 and
2030 respectively. Furthermore, 11 states have declared the policies to promote the
environmentally friendly packaging market. Green Report I and II have also been
issued to serve as the guidelines for advertising eco-friendly products. With regard to
the plastic waste management, MARPOL convention prohibits the dumping of plastic
waste to the sea. These movements arose from the questioning of the conventional
plastics inability to degrade naturally and resulted in the initiation of 17 cent per
piece charged for each plastic bag.
On the other continent, the European Union also announced a mandate for
automobile industry that, from 1 January 2006 onward, more than 85% (by weight) of
the vehicle parts must be made of reusable or recoverable materials. Bioplastics,
consequently, stand out as one of most sought-after answers for those regulations. For
example, Germany has exempted the tax for the compostable packaging, while France
requires that by 2010 all trash bags must be compostable. In Florence, Italy, all food
packaging must be made from degradable materials. As another example, Denmark
bans the use of water containers which cannot be recovered. In Norway, the UK and
Ireland, there is a plan to program to lower the consumption of petrochemical-based
plastic shopping bags as these conventional bags must be bought by consumers
instead of be given freely.

Many more countries in Asia-Pacific also join in enforcing laws and measures
with an aim to reduce environmental loads from the growing demands for packaging.
In Japan, Green Procurement policies were imposed along with the Revised Recycling
Laws and the Pollutant Release and Transfer Register to counter this problem. In
Ladakh, India, it is announced that 1 May of every year is the Plastic Ban Day; while,
in Bombay and Himachal Pradesh, there is a strict regulation of plastic bags and
Styrofoam production. On the other hand, Bangladesh has issued a more strict
regulation of countrywide prohibition of plastic bags since 2002. In Taiwan, R.O.C.,
the conventional LDPE plastic bag control scheme called Plastic Shopping Bag Use
Restriction Policy bans all shops from distribute plastic bags and Styrofoam
containers to their customers without pay.
In some regions, bioplastics have been used as a tool for waste management.
Taking Australia for example, during the Sydney Olympics Games, bioplastics
containers and packaging were used and 75% of these bioplastics was gathered for
compost. This greatly eased the burden of having to separate conventional plastics
before compost and proved to be very effective in the management of plastic waste.
The growth of bioplastics market has been evident in many developed
countries, e.g. USA, European Union and Japan. In Germany, the advances in the
bioplastics compounding technology, the blending process of bioplastics resin and
other additives to attend the desired mechanical and physical properties, has resulted
in the rapid growth of small and medium enterprises (SMEs). Also, the governmental
agencies both at the national and local levels issue tax deterrent for non-degradable
plastics making their price higher and in turns helping the bioplastics to stay
competitive.
In Japan, the development of bioplastics product has been substantial and
rapid. Many large companies, e.g. Sony, Panasonic and Toshiba, have turned to
bioplastics for their product packaging, computer devices and compact discs.
Considering the business rationalization of bioplastics in the abovementioned
examples, it is apparent that the market share for bioplastics is on the rise and
bioplastics is rapidly replacing the conventional petroleum-based plastics. The
production capacity for bioplastics worldwide was 360,000 ton in 2005 or
approximately 1% of the total plastics production of 200 million ton per year. The
demand for bioplastics in the EU is estimated at 40,000-50,000 ton per year with the
projected growth of 20% each year; whereas the bioplastics consumption in Japan is
at 15,000 ton per year and this number is anticipated to double each year. On the other
hand, the demand for bioplastics in USA is estimated at 70,000 80,000 ton per year
with the projected growth of 16% each year. All these figures amount to the global
projected expansion for bioplastics demand of 30% per year.

2. Opportunity for Thailand to Create Well-Established


Bioplastics Industries
Thailand is an agricultural country which is endowed with biomass materials
and agricultural products including rice, sugarcane, cassava, corn, cellulose, palm, etc.
These products contain abundant composition of either starch (carbohydrates), sugar
(glucose), or fibers (cellulose). All of which can be used as feedstock for the
production of bioplastics. Favored with the price competitiveness and strength in the
cultivation techniques, Thailand is clearly standing at the prime spot.
Cassava starch, one of the most promising potential feedstock for bioplastics,
is priced relatively lower than other kinds of starch in the global market. In fact,
Thailand has long been the largest exporter of cassava starch. In 2005, the country
produced 16.94 million ton of cassava roots and exported approximately 4.6 million
ton of cassava-based products amounting to 85.5% of the market share which worth
more than 40,000 million baht.
The value chain of the production of bioplastics from these agricultural
products is another major propelling factor for the development of bioplastics from
cassava feedstock. At present, the processed products from cassava, in the form of
chips, pellets or starch, are still low in price and subject to unreliable global market
both in the sense of price and demand. These processed products can raise the value
by 2 folds or about 40,000 million baht. However, if cassava is to be used as the
feedstock for bioplastics, its value will increase 10 folds, valued as high as 200,000
million baht.
Thailands readiness in the downstream industries is yet another important
supporting factor. Downstream plastics industries are very well-established with
capability to produce wide-ranging products. Therefore, a full cycle of bioplastics
product development can be achieved in the country once the upstream production is
in place. Majority of plastics producers in Thailand is categorized as SMEs (almost
4,000 factories). The largest proportion is the packaging products at 41.9%, followed
by household products at 16.9%. The rest includes the compounding enterprises
making up 5.1% of the industry.
Thailand is regarded as ASEANs number one plastics exporter and ranks
number eight in the global market. Notable exported products are films, foil straps,
synthetic fibers, sacks, etc. The key markets for Thailands plastics export are Japan,
USA, Hong Kong, UK, Australia and ASEAN countries. During 2000 to 2003, the
export value expanded by more than 40% with the total value as high as 51,000
million baht in 2003. Considering the whole export sector for the country, the plastics
resin and plastics products actually came fourth with the total value of 140,000
million baht.
Furthermore, Thailand is equipped with researchers and experts covering the
entire cycle of bioplastics production process ranging from the upstream, midstream
to downstream industries. About 100 of these personnel are ready and willing to work
actively on the R&D with the industrial sector.

3. Thailands Environmental Issues


Thailand is currently producing 40,000 ton of waste daily (or about 14 million
ton per year). Among this is the plastics waste, making up 20% of the mix, and only
22% of this plastics waste can be recycled or transformed into fuel. As a result, the
remaining 2.2 million ton of plastics waste needs to be disposed each year (Pollution
Control Dept., 2005). However, bioplastics will not create such a problem as they can
be degraded naturally in the suitable condition, leaving no other residues but carbon
dioxide and water. Therefore, bioplastics can be a potential solution to tackle the
problem of the overwhelming plastics waste.
Not only bioplastics can be an effective tool for waste managements, but they
also help combating with various environmental issues including the air pollution
(caused by the global warming from the rising carbon dioxide emission, ozone
depletion and haze from fuel combustion), water pollution (e.g. acidification or
eutrophication of natural bodies of water), and soil and water problems (e.g. the
deposition of non-degradable plastics). The fact that bioplastics can be degraded by
the activity of naturally occurring microbes means that this type of plastics will not
cause the overwhelming load of waste and needs no other waste management such as
burning. As the end products from biodegradation are non-toxic, bioplastics can be
used effectively in the separation of organic waste for compost.

4. Development of Thailands Bioplastics Industry


Bioplastics industry can be regarded as the countrys New Wave Industry due
to the fact that there has not yet been the complete value chain of the bioplastics
industry and the products have not been distributed widely in the local market.
However, the initiations from both government and private sectors have been carried
out continuously. Some of the prominent organizations, which have been involved
with the development of bioplastics in Thailand, are National Innovation Agency
(supporting financially and technically to the companies which are eager to invest in
bioplastics), Thai Industrial Standards Institute-TISI (developing bioplastics standard
for biodegradability, National Research Council of Thailand-NRCT and National
Metal and Materials Technology Center-MTEC (supporting and conduct R&D in
bioplastics), and Thai Bioplastics Industry Association-TBIA (established from the
cooperation of plastics companies which have great interest in creating infrastructure
to support the bioplastics industry in the country), Board of Investment- BOI
(providing tax privileges for bioplastics investment). By working together as a cluster,
TBIA can gain more negotiating power with other trading counterparts and also
successfully kick off various supporting initiatives, e.g. the drafting of standards for
biodegradability of bioplastics products and cooperation with NIA, NRC, MTEC and
some universities to introduce the R&D direction.
National Innovation Agency (NIA), being the initiator of this project in
Thailand, has its major roles to encourage, support and gather information associated
with bioplastics continuously. The key activities carried out with regard to the
development of Thailands bioplastics project are summarized chronologically as
follows:

In 2003, NIA and cassava starch producers carried out a feasibility


study for Thailand to establish bioplastics industry and assess the
business opportunity.
During 2004 to present, NIA has facilitated Thai companies to
negotiate with the worlds leading bioplastics companies, e.g.
NatureWorks LLC (USA), Metabolix Inc. (USA), Unitika (Japan),
Mitsui Chemicals (Japan) BASF (Germany), Uhde Inventa-Fischer
(Germany) and PURAC(Netherlands)
to seek cooperation on
investment, creation of market opportunities, technology licensing
technology transfer and research and development.
In 2006, NIA initiated the founding of the Thai Bioplastics Industry
Association (TBIA) by inviting plastics leading companies (both large
and medium sized) in the country to join as a business association. The
pioneers included Thantawan Industries Plc., Thai Plastics Bag
Industry Co., Ltd, Unity Thai Co., Ltd. and Quality Minerals Plc. This
initiative was also supported by National Metal and Materials
Technology Center (MTEC) and Petroleum and Petrochemical College
(PPC), Chulalongkorn University.
In 2006, the industry standards for bioplastics were firstly drafted by
the cooperation of NIA, TBIA, PPC and MTEC for further developed
by the Thai Industrial Standards Institute (TISI)
In 2005, bioplastics testing facility was developed by MTEC.
In 2006, brainstorming sessions, meetings and workshops were
conducted by NIA to assemble all opinions from all stakeholders
(business executives from private sectors, researchers, academia and
related governmental agencies) in order to conclude the operating
direction for the bioplastics roadmap.
NIA organized 2 international conference-and-exhibitions on
bioplastics, i.e. InnoBioPlast 2006 (September 21-24, 2006) and
EcoInnovaAsia 2008 (October3-5, 2008). These events aimed at
disseminating knowledge and create understanding related to
Thailands bioplastics development, catching up on the latest
technology trend delivered by the world experts, providing the
platform for co-investment and cooperation on bioplastics businesses
and, most importantly, demonstrating Thailands potential to step
forward as a bioplastics hub in the region.
In 2006, NIA was assigned as the responsible agency to coordinate
drafting of a Thailands National Roadmap for the development of
Bioplastics Industry, according to the national economic restructuring
policies to prioritize New Wave Industries.

At the same time, the private sector could develop some bioplastics products
from with the support from NIA through technology transfer and joint research with
universities and research institutes. This technology cooperation between private and
government sectors has resulted in the import of bioplastics compounds for products
processing and of bioplastic resin to blend with starch to produce cost-effective
compounds. These products, in fact, have made it to the international markets.

On the research and development collaboration, NRCT, NIA and TBIA have
initiated a targeted research to develop innovative bioplastics products. This has been
NRCT under the project, Research and Innovation Helix Program on Bioplastics.
Numerous universities and research institutions were the research counterparts in this
project; among these include Chulalongkorn University, King Mongkut's Institute of
Technology Ladkrabang, Suranaree University of Technology, Chiengmai University
and Kasetsart University.
Up to present, there are 3 strategic areas for bioplastics R&D in Thailand
namely: (1) Agricultural Raw Materials, (2) Biotechnology, and (3) Chemical and
Compounding Technology. Approximately 100 researchers have been actively
conducting studies on these 3 areas ranging from the improvement of plant breeding,
the enhancement of crop productivity for industry feedstock, selection of natural
strains of microbes, improvement of microbe strains, fermentation technology, starch
technology and polymerization technology.
In summary, the development of bioplastics industry in Thailand is still in the
early stage. Therefore, there is a need for a national roadmap in order to propel this
initiative into the streamlined manner to facilitate all stakeholders (both government
and private) to work together to induce a favorable environment for investment,
establishment of business partnership, establishment of supporting policy, market
development and development of technology and innovation. This roadmap can, in
turn, enable Thailand to secure a competitive edge to position herself on the global
bioplastics market.

5. Preparation of National Roadmap for the Development of


Bioplastics Industry
Realizing the challenges and opportunities in the development of bioplastics
industry in Thailand, the National Subcommittee on Economic Restructuring
endorsed the plan to include the development of bioplastics industry along with the
development of biomass-based renewable energy in the action plans for the economic
restructuring under New Wave Industries on 12 January 2006. The subcommittee
appointed the Ministry of Science and Technology as a core organization and asked
the Ministry of Industry and Board of Investment (BOI) to take part in this project.
After the meeting on 14 February 2006, the working committee appointed NIA as a
key focal point in this project and a responsible agency to draft the Bioplastics New
Wave Industries Action Plan as the National Roadmap for the Development of
Bioplastics Industry.

6. National Strategies and Targets in the National Bioplastics


Roadmap
To ensure the most efficient execution of the Roadmap, 4 key strategies were
pinpointed and the implementation is planned to last for 5 years. Brief outlines of the
4 strategies are as follows:

Strategy One: Sufficient Supply of Biomass Feedstock


(Budget: 100 million baht)
This strategy targets at preparing sufficient quality and quantity of raw
materials for the industry without having to interfere with the food supply. Also the
acceleration of technology development to enhance the productivity of starchproducing crops must be carried out to ensure that the bioplastics production can
reach the break-even point and to prevent various problems on the crop cultivation
including the destruction of an ecosystem balance.
Strategy Two: Accelerating Technology Development and Technology Cooperation
(Budget: 1,000 million baht)
This strategy not only focuses on the adoption of overseas technologies, but
also aims at having local researchers and scientists to develop technological advances
and innovation further from those adopted technologies. The goal to create the
countrys own technologies is at the heart of this strategy.
Strategy Three: Building Industry and Innovative Businesses
(Budget: 475 million baht)
Under this strategy, an investment in bioplastics industries and businesses
must be encouraged from the upstream, midstream right to the downstream stages
both at the international business and local business levels.
Strategy Four: Establishment of Supportive
(Budget: 225 million baht)
Many supportive infrastructures must be established to facilitate the
development of bioplastics industry in Thailand. These include establishment of
industrial standards, setting up the laboratory for testing and certifying bioplastics
products, raising public awareness for the use of bioplastics products for an
environmental protection, implementation of pilot project for bioplastics utilization in
small municipals or community and various activities of public relation.

7. Expected Outcomes
At the end of this 5-year Roadmap, the cooperation and initiative from both
governmental and private sectors under this action plan should create significant
impact on the following 4 areas:
7.1 Economic, Industrial and Agricultural Aspects
Thailand, through the new wave industries and innovative business on
bioplastics, can anchor herself on the international bioplastics market and manage to
take a considerable proportion of the global market share. Also, this can provide value
creation and value-added to the agricultural raw materials are anticipated to result in
the value totaling up to 4,500 million baht.
7.2 Technological Aspect
The development of new technology can lead to the creation of intellectual
properties, technology transfer and integration of technology from abroad resulting in
the growing number of research specialists on bioplastics. This consequently gears the

country toward the integrated and directed R&D process which could produce an
economic value of 500 million baht.
7.3 Environmental Aspect
Awareness in using bioplastics as a solution for environmental problems can
help lower the burden caused by the plastics waste. Thus, less money will be allocated
to the management of plastics waste and air pollution created from the burning of
these non-degradable plastics will be eliminated. This equates with an economic
impact of 500 million baht.
7.4 Policy Aspect
The execution of the National Bioplastics Roadmap can induce the
establishment of policy, framework and measure to promote and incentives favoring
the investment in the bioplastics industry including the establishment of various
testing and certification standards on bioplastics products.

Chapter 1: Current Situation of Bioplastics


in Thailand*
1.1

Introduction

The amount of garbage produced in Thailand is constantly increasing, with


over 14.4 million tons created in 2003. The main elimination process is landfill- only
11% is recycled. With the situation driving research into developing environmentally
friendly new products, there is an increasing interest in biodegradable plastics as one
of the potential solutions. This chapter focuses on government and private sector
activities in the area of bioplastics, the potential for Thailands materials and plastic
industry, and the current government policy.

1.2

Status of bioplastics in Thailand

With increasing concern over the amount of garbage produced, both


government and private organizations are beginning to support the development of
Thailands bioplastics sector. The National Innovation Agency (NIA) supports the
investment, technology acquisition and assessment in bioplastics, The Pollution
Control Department has enacted laws to alleviate the garbage problem; The National
Metal and Materials Technology (MTEC) supports testing laboratory for
biodegradable plastics; and the Thai Bioplastics Industry Association (TBIA) - which
was recently initiated to stimulate development of the sector- serves as a national
focal point for negotiations with other industrial countries on issues such as
collaboration on drafting standards for biodegradable plastics.
In particular, since 2003 NIA has been active in promoting bioplstics,
compiling technology and business information on bioplastics from leading countries
as well as coordinating with all stakeholder organizations to drive the support
infrastructure and policy for the establishment bioplastics industry in Thailand.
The production of bioplastics products from biomass is shown schematically
in Figure 1.1. Cassava roots are first transformed into cassava starch, which is then
put through a scarification process using enzymes to produce liquid glucose. The
liquid glucose can then be fermented by specialized bacteria or fungi to produce lactic
acid monomer, which is then polymerized to produce polylactic acid (PLA), a
biodegradable polymer. These polymers undergo a compounding process in which its
basic properties are modified and enhanced as needed by addition of plasticizers and
other ingredients. In the final part of the production process, the material is moulded
or blown into various types of finished product as needed. Thailand currently has two
technologies at industrial levels - saccharification by using enzymes to produce
glucose from starch, and molding into finished products. Other technologies are still
at the research and development stage.
* Parts of this material have been translated by GTZ, Thailand, based on the original
Thai version of the National Roadmap for the Development of Bioplastics Industry.

Corn starch
Cassava starch

Saccharification
by enzyme

Liquid glucose

Fermentation
by bacteria

PHAs
Lactic acid

Wheat flour

Succinic acid

Potato starch

1,3-Propanediol: PDO

Bioplastics products

Compounding
Molding

Polymerization
Biodegradable plastics such
as PLA, PBS

Figure 1.1 Production process of bioplastics products from biomass


(The bold arrows shows industrial level in Thailand)

Production of liquid glucose from starch or saccharification by enzymes


Syrup glucose or liquid glucose is the starting point in producing monomers
for biodegradable plastics production. It can be prepared from cassava starch by
digestion with amylase and amyloglucosidase enzymes, as shown in Figure 4.2.
Cassava roots
Native tapioca starch
Centrifuge / add
enzyme

Sieving

Tuber washing machine

Rasping

Separator

Fine stalk extractor

Coarse stalk extractor

Liquid glucose

Figure 1.2 Liquid glucose production process


Sources: adapted from liquid glucose production process by PSC Starch Products Co, Ltd.
http://www.pscstarch.com/th/process.asp

Liquid glucose can be produced from cassava starch and molasses. However,
the process is still under development to optimize the use of specific enzymes
necessary for the digestion process. Production of glucose from corn starch is possible
but different equipment must be used. Since there is only one corn starch factory in
Thailand and a 60% import tax is levied on, its use as a feedstock is not currently
cost-effective.

In Thailand glucose is produced from cassava starch, most of it destined for


the food industry. The liquid glucose price is approximately 14 baht/kg (August
2006). Glucose, as a feedstock for bioplastics, does not need to be purified as for the
food industry. Liquid glucose used for making ethanol is produced directly from
cassava chip, which will generate 20% glucose and can be used directly in the
monomer production process without purification. There are many such glucose
factories in Thailand, producing both liquid and powdered glucose, as shown in Table
1.1. These factories have the potential to expand their facilities to produce monomers
such as lactic acid.
Table 1.1 Glucose factories in Thailand
Factory
Mr. Kamol Tangkamornsiri
Hangya Thai 1942
Prasertchai Co., Ltd.
Thai Sugar Products Co., Ltd.
Pure Chem Co., Ltd.
Chaokhun Kaset Pheud Phon Co., Ltd.
PSC Starch Products Ltd.
Thai Wattana Pharmaceuticals
Dextrose Ltd.
Thai Cassava Industry Co., Ltd.
Rong Paeng Sin Sahasin Wattana Ltd.
Part.
Sima Inter Products Co Ltd (Branch2)
Corn Products Amadas (Thailand)
Co., Ltd.
Siam Sorbitol Co., Ltd.
Mr Kamol Pichitsingh
Asia Fructose Co., Ltd.
Sin Udom Flour and Foods Co., Ltd.
Heng Uy Nguan
Nakorn Luang Glucose Co., Ltd.
Thai Glucose Co., Ltd.

Location
Bangkhuntian, Bangkok
Ratburana, Bangkok
Muang, Samut Prakarn
Bangplee, Samut Prakarn
Bangplee, Samut Prakarn
Gaengkhoi, Saraburi
Nongyai, Chonburi
Banglamung, Chonburi
Bankai, Rayong
Pongnamron, Chantaburi
Panom, Sarakam, Chachoengsao
Muang, Nakhon Ratchasima
Muang, Nakhon Ratchasima
Sikeo, Nakhon Ratchasima
Tamoung, Kanchanaburi
Muang. Nakhon Phatom
Dontoom, Nakhon Phatom
Sampran, Nakhon Phatom
Sampran, Nakhon Phatom

Sources: http://www2.diw.go.th/cluster/Fac_EIA1.asp

Production of monomer and bioplastics products in Thailand


Since there are currently no bioplastics factories in Thailand, many companies
have started importing bioplastics compounds to use the existing plastics processing
machinaery to produce finished bioplastics products as pilot production for both
domestic and export markets. Moreover, some companies have started developing
their business to produce relating bioplastics products as shown in Table 1.2.

Table 1.2 Companies carrying on business relating to bioplastics


Company
1. Advance
Packing Co.,
Ltd. (Special
Tech Group)

Location
Phranakorn Sri-Ayutthaya

Product
Plastic bags for
plants

2. M.S.V.
Trading Ltd.,
Part

Bangkok

3. Bio Green
World Co.,
Ltd. (BGW)

Samut Prakarn

Food container
such as plate,
bowl, spoon and
fork
Food container
such as Plates,
bowls, spoons
and cups

4. BIOFOAM
Jazzy Creation
Co., Ltd.

Bangkok

5. Biodegradable
Packaging for
Environment
Co., Ltd.
(BPE)
6. KU-GREEN:
Biodegradable
Package

Bangkok

7. Thantawan
Industry
Public
Co., Ltd.

Bangkok

Bag, film

8. PURAC
Thailand

Rayong

Lactic acid

Bangkok

Heat-resistant
food packaging
(single-use)
such as
disposable
plates, bowls
and food trays
Single use food
packaging such
as disposable
plates, bowls
and spoons
Single use food
packaging such
as disposable
plates, bowls,
trays and
glasses

Technology
- produced from
corn starch
- import raw
plastic from
USA and
process in
Thailand

- produced from
PLA or PLA /
starch blend
- PLA pellets
imported from
Taiwan
- Produced from
cassava starch,
hot-molded into
finished
products
- Own proprietary
technology
- Produced from
bagasse

- Produced from
cassava starch,
hot-moulded
into finished
products
- Own proprietary
technology
- Import raw
plastic from
USA and
process in
Thailand
- Development
compounding
- Produced from
molasses or
cassava

1.3

Thailands readiness for a bioplastics industry

1.3.1

Raw materials

As an agricultural country, Thailand has major comparative advantages in


producing bulk commodities such as rice, sugar cane, cassava, cellulose, wheat and
oil palm. Such products contain carbohydrates, glucose or cellulose that are suitable
as feedstock for producing bioplastics. Considering its competitive prices and
abundant growing capacity in Thailand, cassava is the most feasible and appropriate
crop for bioplastics industrial production. Comparing starch prices on the world
market, cassava starch has the lowest price, as shown in Figure 1.3. Moreover,
Thailand is now the worlds largest cassava exporter.
Potato flour
Price (dollars per ton)

Corn starch
Wheat flour

Cassava starch

Year
Figure 1.3 Prices of cassava starch, potato flour, corn starch
and wheat flour in the world market
In 2005, Thailand produced 16.94 million tons of fresh cassava roots, equal to
8% of world production and ranked No. 4 among fresh cassava producers, behind
Nigeria, Brazil and Indonesia. 73.5% of fresh cassava roots are exported as pellets,
chips or flour, as shown in Figure 1.4. As mentioned, Thailand is ranked as the
worlds top exporter of cassava products, with 4.6 million tons p.a., or 85.5% of
market share, valued at more than 30 billion baht. Its exports to China, Taiwan and
other emerging markets mean that cassava has now become one of Thailands most
important industrial crops. The non-exported production (26.5%) is mostly used as
fresh starch in various agro-industrial processes such as the monosodium glutamate
production, as well as the lysine, sweeteners, papers, and weaving industries.
However, the export demand for cassava remains the main market driver.

Global production of fresh cassava


204 million tons
World No.4 producer
(8.3 %)

Fresh production- Thailand


16.9 million tons
26.5 %

73.5 %

Cassava consumption in Thailand


(4.2 m tons fresh roots)
1.5 %
Chip
(0.08 m tons fresh
roots)

25 %
Flour
1.1 m tons
(4.12 m tons fresh
roots)

Cassava product exportation


(12.7 m tons fresh roots)
36 %
Chip
2.77 m tons
(6.2 m tons fresh roots)
11,939 million baht

3.5%
Pellets
0.26 m tons
(0.6 m tons fresh roots)
838 million baht

World no.1
Ratio 85.5 %
34%
Flour
1.61 m tons
(5.9 m tons fresh roots)
20,150 million baht

Food industry 200,000 tons flour


MSG/Lysine 250,000 tons flour
Sweeteners 380,000 tons flour
Paper 120,000 tons flour
Modified starch 70,000 tons flour
Sago 50,000 tons flour
Weaving 10,000 tons flour
Others 12,859 tons flour

Figure 1.4 Cassava utilization ratios between domestic industry and exportation (2005)
Source: adapted information from The Thai Tapioca Trade Association Book B.E. 2547 (the detail
based on the Ministry of Agriculture and Cooperatives and Customs Department) From draft report
Evaluation and Identification for Raw Intervention Ideas for Thailands Tapioca Subsector by
AgriSource Co. Ltd. Figure 3.3, page 28.

Notes:
Conversion ratio for fresh cassava roots:
1 kg cassava chip : 2.2-2.4 kg fresh cassava roots
1 kg pellets cassava : 2.5-3.0 kg fresh cassava roots
1 kg fresh starch : 3.5-4.0 kg fresh cassava roots

Cassava is cultivated over 6.5 million rai (1 rai: 1,600 square meters),
amounting to 14.22% of the total cultivated areas in Thailand. (Source: Ministry of
Agriculture and Cooperatives). Around 52% of the cassava production area is in the
northeastern provinces of Nakorn Ratchasima, Chaiyaphum, Kalasin, Khon Kaen,
Buriram, and Sa kaew, and 25% in the eastern provinces of Chacheongsao, Chonburi,
Chantaburi and Trat. The northern and central regions have 15% and 8%,
respectively. Table 1.3 to 4.6 show statistics on the cultivated area, annual
productivity, productivity per rai, farm gate prices of fresh roots, wholesale prices of
cassava product, and volumes and value of cassava exports.
Table 1.3 Primary information on commercial cassava cultivation
Average product
Production cost
Cost of product

3.5 tons/rai
2,100 baht/rai
4,000 baht/rai

Source: Agricultural Development Plan, Tambon Kornswan, Chaiyaphum

Table 1.4 Cultivated area, product, product per rai, cassava selling price by farmers
B.E. 2539-2005
Cultivated Harvested
Production
Production
area
area
per rai
Year
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005

(1,000 rai) (1,000 rai)


7,885
7,676
7,907
7,690
6,694
6,527
7,200
6,659
7,406
7,068
6,918
6,558
6,224
6,176
6,435
6,386
6,757
6,608
6,524
6,162

(1,000 ton)
17,388
18,084
15,591
16,507
19,064
18,396
16,868
19,718
21,440
16,938

(kg)
2,265
2,352
2,388
2,479
2,697
2,805
2,731
3,087
3,244
2,749

Selling
price by
farmers
(baht/kg)
0.98
0.71
1.26
0.91
0.63
0.69
1.05
0.93
0.80
1.31

Source: Department of Agriculture http://www.doa.go.th/fieldcrops/cas/eco/index.HTM

Table 1.5 Cassava product price B.E. 1990-2005


Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005

Cassava product
Wholesale price in Bangkok
FOB price (baht/ton)
(baht/kg)
Pellets
Chip
Flour
Pellets
Flour
2.36
2.03
5.16
3,700
5,740
2.62
2.40
5.70
3,860
6,070
2.57
2.40
5.59
3,850
5,893
2.16
1.94
4.31
2,736
5,056
2.43
2.22
4.31
2,736
6,184
3.10
3.08
8.48
3,495
8,869
2.96
2.70
6.47
3,160
7,343
2.21
2.05
6.46
2,479
7,566
3.20
3.01
10.64
3,301
11,306
2.65
2.43
5.85
2,865
6,826
2.00
1.81
5.27
2,210
6,308
2.22
2.27
7.29
2,574
7,648
2.22
2.69
7.62
2,807
7,898
2.57
2.56
6.39
2,911
7,052
2.72
2.85
7.60
3,097
7,473
3.20
3.99
9.28
3,207
9,495

Sources: Office of Agricultural Economics, Ministry of Agriculture and Cooperatives. From draft
report Evaluation and Identification for Raw Intervention - Ideas for Thailands Tapioca Subsector
by AgriSource Co. Ltd. Table 4.3

Table 1.6 Exports of cassava products 2003-2004 (volumes and value)


2003
Products
Fresh tubers
Cassava chips
Cassava starch
Cassava pellets
Sago
Dextrin and other
modified starch
Glue
Cassava stalks
Total of cassava products

Amount
(ton)

2004

127
1,812,374
1,084,068
1,859,939
21,684
525,515

Cost
(million
baht)
4.2
5,352.9
7,439.6
5,096.0
251.9
8,780.0

Amount
(ton)
75
2,805,988
1,113,633
2,212,948
26,742
492,638

Cost
(million
baht)
1.8
8,640.7
8,196.5
6,391.6
315.5
7,500.7

5,091
61,594
5,370,392

161.2
138.7
27,224.7

10,231
194,267
6,856,522

289.5
479.2
31,815.5

Sources: Office of Agricultural Economics http://www.doa.go.th/fieldcrops/cas/eco/stat_1.HTM

Thailands cassava exports consist mostly of chips, pellets and starch, which
have low prices and depend on the foreign commodity market factors leading to
unstable prices and demanding conditions. Therefore, in order to increase its value,
cassava needs to be adopted as an industrial raw material. Cassava starch in particular
can be used for a number of industrial processes. As shown in Figure 1.5, when raw
cassava roots are transformed into secondary products such as pellets, chip or flour,
the value added will be only 50%, equal to 30 billion baht. But when further
transformed into its tertiary products such as bioplastics, modified starch, cellulose
products or liquid glucose, the added value will be 150% of its original, equal to 76
billion baht. For bioplastics alone, the added value would be 44 billion baht.

Cost
20,000 MB

Fresh roots
20 MT (1 B/kg)
20,000 MB
12 MT

50 %
30,000 MB

8 MT
Chips
2 MT
6,000 MB

Pellets
3 MT
9,000 MB

Exported
cassava starch
1.4 MT

Animal feed

150 %

76,000 MB

0.2 MT

Bioplastics
(PLA: 120-320 B/kg)
44,000 MB

Flour
2.3 MT (6.5 B/kg)
15,000 MB

Stalks
1 MT
1,000 MB

0.7 MT
Modified starch and
chemicals(14 B/kg)
20,000 MB

Cellulose
10,000 MB

Figure 1.5 Cassava value chain


Source: adapted from strategic plan for agriculture and ago- industrial research, according to
national research period in crisis for national revival by Prof. Dr. Theera Sutabutra, Kasetsart
University. Diagram 2, page 17

Liquid
glucose
2,000 MB

1.3.2

The plastics industry and market growth in Thailand

Plastics production and markets


Thailands plastic industry is a full-cycle mature industry sector with a worldclass potential. Figure 1.6 shows the industry structure. Plastic granules or resin from
the tertiary petrochemical industry may either directly enter the plastic industry or
may undergo compounding or polymer blending or poly-alloy production in order to
increase its value and utility. There are various plastic molding processes such as an
injection molding, extrusion, blow molding and extrusion blow film/sheet. Plastic
products are also extremely diverse, including packaging for household appliances,
plastic parts for use in consumer goods, electrical appliances and the electronics
industry, vehicles, shoes, construction materials etc. Thailand also has an active
molding machinery production sub-sector, including die and mould machinery
manufacture.
Tertiary petrochemical industry

Plastic granules/resin

Strengthening

Composites
SMC, BMC

Compounding
Blending

Plastic product industry

Additives

Molding
Mould and injector
production

Consumer market
Packaging
Sports equipment / toys
Parts / building materials

Downstream industries
Packaging
Electrical parts
Vehicle parts
Construction materials
Household appliance Sports equipment / toys
Synthetic fibres
Shoe parts, others

Figure 1.6 Structure of Thailands plastic products industry


Thailands plastic granule and resin production accounts for 4% of worldwide
production, as shown in Figure 1.7. Annual production amounts to 6.38 million
tons/year, which is 38.7% more than domestic demand. Thus, Thailand has become an
exporter of both basic pellets and engineering plastics. Thailand has fewer primary

sources (natural gas from the Gulf of Thailand) than others such as the Middle Eastern
countries, Indonesia and Malaysia. Nevertheless, Mabtapud Petrochemical Industrial
Estate is ranked 8th in the world, and No.1 in the ASEAN region, as the producer of
plastic granules. Thailand produces a diverse range of high quality plastic granules,
including thermoplastics and thermoset. Both types are made in both basic and
engineering forms. Thailands plastic granule exports are destined mainly for Japan,
Singapore, USA, South Korea and Taiwan (See Figure 1.7).

Thailand
4.0%

USA
31.0%

Others
47.0%

Germany
10.5%

China Malaysia
6.0% 1.5%

Figure 1.7 Major producers of plastic granules and resins, 2003


Plastic production facilities in Thailand are mainly medium and small-sized.
80% of them are located in Bangkok and its surroundings, with a concentration in the
southwestern part of Bangkok- Bangkhuntian, Bangbon, Chomthong, Ratburana and
Toongkru districts.

Table 1.7 The plastics industry in Thailand, 2003


Detail
No of factories

Thailand
4,296

SME ratio (%)

88

Congested factory area


No of domestic consumer (millions)
Domestic consumers / factory
(people/factory)
Ranking (in terms of production quantity)

Bangkok and
surroundings
62
14,432
No.1 in ASEAN

Sources: Department of Industrial Works, Ministry of Industry and Department of Trade Negotiation,
Ministry of Foreign Affairs

There are 4,296 factories producing plastic products for molding registered
with Department of Industrial Works, Ministry of Industry (data from the DIW,
December 2002). However, it was estimated that the real number of factories could be
over 5,000, including 30 plastic granule factories. From 2002 data there are 4,229
registered factories categorized into packaging manufacturers (41.9%, the largest
market), followed by household products (16.9%) and finally, compounding plastic
granules (5.1%). Figure 1.8 below shows the breakdown of plastic product factories in
Thailand.
Vehicle parts
2%

Electrical parts
4%

Home and kitchen utensils


17 %
Packaging

Construction materials
4%

42 %

Toys, sport
equipment

5%

Others
16 %

Shoes

Fibre

4%

1%

Compounding plastic
granules

5%

Figure 1.8 Categories of plastic product factories in Thailand


Source: Department of Industrial Works (2002) and the Federation of Thai Industries.

Economic Importance
Although Thailand has always been considered primarily as an agricultural
country, over 75 percent of its exports are industrial products, including plastic
granules, which indeed form one of the countrys most important exports. Even
during the economic downturn in 1997, the export value of plastic granules is listed in
the top 10 in Thailand. Thailands export volume and value of plastic granules
between the years 1996 2003 are shown in Figure 1.9 below.

3.0

120,000

2.0

80,000
60,000

1.0

40,000
20,000

0.0

0
2539

2540

2541

2542

2543

2544

2545

2546

3.0

120,000
100,000

2.0

80,000
60,000

1.0

40,000
20,000

0.0

0
2539

2540

2541

2542

2543

2544

2545

2546

Figure 1.9 Export volumes and value of plastic granules (1996 2003)
Source: IT Centre for Economy and Trade, and the Customs Department

Thailand is now ASEANs leading exporter of plastic products and is ranked


8th in the world. The most important exports are films, foil/tape, synthesized fibers
and sack bags. As we can see from Figure 1.10, the growth in export value from 1996
to 2003 is as high as 25.3 percent. The most important markets are Japan, USA, Hong
Kong, UK, Australia and other ASEAN countries. From 2000, the value of plastic
exports grew by more than 40 percent to 51 billion baht in 2003. Moreover, the
export value of plastic granules and plastic products comprises 4 percent of the
countrys total export value (140 billion baht).

Value (m baht)

Volume (m tons)

Volume (m tons)

100,000

Woven sacks
2%
Pipes and tubes
2%

Boxes
and luggage2%

Clothing &
accessories
3%

Rainwear
0%

Fishing nets
4%
Tableware and
kitchenware
5%

Other
28%

Bags and sacks


25%
Film, foil and tape
29%

Figure 1.10 Key plastic exports, by value (2003)


Source: Department of Trade Negotiations, Trade Information Centre, and Thai Customs Department.

Plastic Industry

Plastic granules and resin

Production: 6.38 million tons


No of factories : 30 factories

Export volume 2.55 million tons


Export value 89,261 million baht

Domestic consumption 3.83 million tons


Imports: 0.95 million tons

Domestic consumption of plastic


granules: 4.78 million tons, or 80 kg per
capita

Plastic product

Production: 3.91 million tons


Cost 157,000 million baht
No of factories : 4,296 factories

Export value: 51,446 million


baht

Figure 1.11 Potential of Thai plastics industry (2003) by volume and value.
Figure 1.11 indicates the potential for Thailands plastic industry, from the
production of basic intermediates (plastic granules) from the petroleum industry at
Maptaphut to midstream technologies (compounding) and downstream (molding) and
the presence of strong market demand both within Thailand and overseas.
The potential and competitiveness of the petrochemical-based plastics industry
brings both advantages and possibilities for the production of bioplastics, especially
downstream technologies that employ similar production processes and machinery.

As shown in Table 1.8, Thailand has many advantages and strengths. With the
government policy supports in various areas such as an environment, trades and
investment as well as an encouragement to build technology, Thailand has the
potential to play a leading role in bioplastics industry development in the region.
Table 1.8 Strengths and potential of Thailands bioplastic industry
Industry
Polymer
Industry

Strength and opportunity


- Ample supplies of lowpriced cassava feedstocks

Compounding
granule industry

- Readiness for machines,


technology, staff, domestic
and foreign market
- Ability to import
bioplastics in order to
blend with abundant
cassava starch to reduce
costs
- Readiness for machines,
High price of
technology, staff, domestic bioplastics
and foreign markets

Plastic products
industry

1.3.3

Constraints
Lack of
technology and
expertise
High price of
bioplastics

Possibility
Moderate
High

Highest

Government policy and support measures

The government policy and support measures have a direct and major effect in
driving the bioplastics industry. Implementing existing policies and establishing new
ones to create an appropriate enabling regulatory framework to promote the
bioplastics sector will be crucial to achieve national objectives. Since there is
currently no law dealing specifically with bioplastics, laws concerning plastics and
foams packaging are currently applied. New Royal Decrees are needed to amend
existing legislation and ensure an effective enforcement in order to provide an
effective and enabling regulatory framework for a viable bioplastics industry sector in
Thailand. Some suggestions related to current legislation are offered below.

1. Customs Tariff Decree, B.E. 2530 (1987)


Increases in import tariffs (collection of special tariffs) for nonbiodegradable raw materials, would help reducing import volumes and encouraging
manufacturers to turn to biodegradable materials or to recycle products domestically.
2. The Excise Tax Act, B.E. 2527 (1984)
This is an important statute which could be amended to incorporate tax
rate reductions, exemptions and other rules and conditions to reduce the use of foams
and plastics. Under this Act imports and exports could be controlled by establishing
tax-free policies for importing bioplastics, foam compounds, raw materials
and biodegradable products which can substitute for conventional plastic bags and
foam trays.

3. Industrial Product Standards Act, B.E. 2511 (1968)


This Act could be amended to specify standards for biodegradable plastics,
including imprinting of the standard assurance logo and use of environmentally
friendly printing inks.
4. Consumer Protection Act (No.1), B.E. 2522 (1979) and Consumer
Protection Act (No.2), B.E. 2541 (1998)
The Consumer Protection Acts specify product label requirements. The
Act might be amended to specify that the label for plastic and foam products and
packages must indicate whether the products are made from biodegradable materials,
are environment-friendly, and rank their suitability for re-use or recycling. This would
provide consumers with alternatives and would influence distributors to take this into
consideration when choosing products to distribute.
5. Public Health Act, B.E. 2535 (1992)
This Act authorizes a local government and public health officials to
control any business that have the potential to cause damage to public health.
Therefore, the Act might be applied to the business relating to plastics and foams, and
include new measures for collecting, transporting and disposing of plastics and foams
solid wastes. It could also introduce new measures for plastics and foams garbage
separation for households and enterprises in Bangkok and surrounding areas. The Act
could establish different fee rates for collection of separated and non-separated
garbage categories. Separation of the plastics and foams garbage could be used as a
mean to reduce costs of municipal garbage separation services.
Identifying suitable channels for a waste separation and biodegradable plastic
packaging will provide an impetus for the efficient implementation of the green
plastic pilot project. Under this Act, the authority is given to a local government to
prescribe rules, procedures, fees and conditions for collecting, transporting, and
disposing of sewage or solid wastes and the issuance of operating licenses for
collection and disposal of garbage or wastes (pursuant to Articles 20(3), (4) and (5)),
could be extended to include provisions for operations which separate plastics and
foams from other categories.
Moreover, there are some more Acts which are relevant to the sector, as
follows:

Hazardous Substance Act (2nd Issue), B.E. 2544 (2001)

Enhancement and Conservation of National Environmental Quality Act,


B.E. 2535 (1992)

Industrial Estate Authority of Thailand Act, B.E. 2522 (1979)

National Metrological System Development Act, B.E. 2540 (1997)

Investment Promotion Act, B.E 2520 (1977) and Amendment

Factory Act, B.E. 2535 (1992)

Price of Goods and Services Act, B.E. 2542 (1999)

Chapter 2: Strategy, Action Plan and Budget


Updated information about the industry, technologies, methods and strategies
employed by leading countries in the field of bioplastics will be crucial to accelerate the
development of bioplastics industry in Thailand and also to attend the status of a regional
hub for bioplastics production.
There is an urgent need to establish alliances at national and international levels to
support technology transfer and accelerate the development of bioplastics innovations and
technologies. This will facilitate investment in bioplastics industry and further enhance
the international competitiveness for Thailand. Apart from technology transfer, the
enhancement of the national technology capacity will be required in order to make best
use of its comparative advantages in terms of natural resources and existing supporting
industry, proximity to markets etc., and also to aggressively develop Thailands R&D
capacity and ownership of intellectual property rights on bioplastics related technologies.
Furthermore, at the policy level, it will be necessary to impose a range of
measures to support production and encourage the use of bioplastics, including
procurement policies, taxation, and public relations, and pilot schemes and compliance
with international standards. Intermediary organizations which have the power to
negotiate on behalf of the industry at regional and international levels will also be needed.
The Road Map recognizes the need to ensure stable and adequate supplies of raw
feedstock materials, and therefore contains outline plans for utilizing raw materials which
are readily utilizable by industry as feedstock, and which support growth and stability in
the agricultural sector, as well as creating new cultivation and harvesting technologies.
To support the development of bioplastics as the New Wave Industry, a five-year
Road Map (2008-2012) for bioplastics development in Thailand was proposed. The Road
Map consists of 4 key strategies, and is supported by a budget proposal. These strategies
with relating budget are summarized in the Table 2.1.

Table 2.1 Strategy and budget allocation for the Road Map for the Development of
Bioplastics Industry
Strategies

Budget (million baht)

Strategy 1 Sufficient Supply of Biomass Feedstock


Strategy 2 Accelerating Technology Development and Technology
Cooperation
2.1 Immediate adoption of available technologies
2.2 Further developing / generating indigenous new technologies
Strategy 3 Building Industry and Innovative Businesses
3.1 Industry innovative business
3.2 Domestic and overseas markets

100
1,000
(100)
(900)
475
(445)
(30)

Strategy 4 Establishment of Supportive Infrastructure


4.1 Establishing industry standards for biodegradability and testing
4.2 Environment
4.2.1 Environmental conservation
4.2.2 Public relations and building awareness
4.3 Policies (Technology, Industry, Environment)

225
(55)
(50)
(120)

Total Budget

1,800

Each strategy consists of 6 components: target identification, indicators, action


plans, responsible agency, functions of each agency and a budget for implementation. The
rest of this chapter provides specific details for each of the 4 strategies.

Action Plans
Strategy 1: Sufficient Supply of Biomass Feedstock (100 million baht)

1.Introduce policies and


regulations on supporting
cultivation and productivity
enhancement
(20 million baht)

- Ministry of Agriculture
and Cooperatives*

The total of 10,000 ton increase in cassava


production (~20 million baht) with the aid
of 20 percent of the capital for five years;
total budget 20 million baht.

2012

Period/Budget
Sources of Budget Figures

2011

- Found contingent loans and a


lending system for farmers to
increase cassava cultivation and
its productivity
(20 million baht)
- Study and formulate policies for
the use of genetic engineering in
the field of GMO development to
improve cassava variety to be
used as feedstock for bioplastic
production

Responsible Agency
(* Key Agency)

2010

Functions (Budget)

2009

Action Plans (Total Budget)

Key Indicators
- To have approximately 10,000 tons of cassava annually
- To increase the cassava productivity to more than 8 ton per rai #
#
1 Hectare = 6.25 Rai or 10,000 sq. m.

2008

Targets
1. To obtain sufficient cassava as raw materials for production feedstock

2011

2012

Period/Budget
Sources of Budget Figures

2010

3. Encourage improved
management of cultivated areas
(5 million baht)

- Advise and educate farmers on the


importance of using cassava as
feedstock for bioplastic
production and its impact on the
economics and environment
(2 million baht)
- Gather and establish the collection
of crop variety
(2 million baht)
- Transfer technology and
distribute newly improved variety
to farmers
(5 million baht)
- Advise cultivation techniques and
secure all necessary supports e.g.
good variety of crop, fertilizers
and farming equipments
(13 million baht)
Map the cultivation areas and
managing those areas for
agricultural crops especially cassava
(5 million baht)

Responsible Agency
(* Key Agency)

2009

2. Educate farmers to understand


the use of agricultural products
as feedstocks for bioplastic
production
(22 million baht)
- Select high-yield variety and
distribute them to farmers
together with the transfer of
good cultivation techniques and
other necessary knowledge to
ensure high productivity

Functions (Budget)

2008

Action Plans (Total Budget)

0.8

0.8

0.4

2.6

2.6

2.6

2.6

2.6

A 2.5-year project for giving farmers the


understanding; 4 times a year and 0.2
million baht a time, worth 2 million baht.

- Ministry of Agriculture
and Cooperatives*

Implementation budget worth 2 million


baht
A 5-year project for outreach program and
cultivation techniques transfer; twice a year
and 0.5 million baht each time; worth a
total 5 million baht
Fund for procuring all supports for farmers
lasting 5 years with 2.6 allotted each year;
worth a total 13 million baht

- Ministry of Agriculture
and Cooperatives*
- Ministry of Industry

A pilot cultivation project covering the


area of 2,000 rai, worth 5 million baht.

[Working in a form of
committee consisting of
representatives from
Ministry of Education,
Ministry of Industry, Thai
Bioplastics Industry
Association, etc.]

- Analyze the demand for bioplastic


production feedstock
(3 million baht)

- Ministry of Agriculture
and Cooperatives*
- Gather information and acting as
Thai Tapioca
source of information on the status
Development
Institute
of raw material supply

2012

- National Research
Council of Thailand*

2011

Period/Budget
Sources of Budget Figures

2010

6. Promote proper management to


ensure stable supplies to meet
demand e.g. channeling the
low-value cassava products for
bioplastic production
(3 million baht)

- Prepare the direction for research


on crop variety enhancement, and
development of cultivation and
harvesting technology
- Allocate fund to support the
research and development
activities
(50 million baht)

Responsible Agency
(* Key Agency)

2009

4. Support the research and


development, enhancement of
crop variety, cultivation
technology, and machinery to
replace manual labor in
cultivation and harvest process
(50 million baht)

Functions (Budget)

2008

Action Plans (Total Budget)

22

20

0.6

0.6

0.6

0.6

0.6

33

31

17.6

9.2

9.2

Research fund for crop improvement and


development of cultivation technique
lasting for 5 years. The fund is allocated to
7 projects (worth 3 million baht each) and
29 project (worth 1 million baht each)

Hosting inter-ministry meeting to


formulate plans to manage the crop
supplies for 5 years with the budget of 0.2
million baht each time (to be conducted 3
times a year)

- Allocate the crop for the


production of bioplastics
- Analyze all economic factors
concerned with using cassava for
bioplastic production

- Ministry of Commerce*

Total Budget for STRATEGY 1: Sufficient Supply of Biomass Feedstock 100 million baht

Strategy 2: Accelerating Technology Development and Technology Cooperation (1,000 million baht)
2.1 Immediate adoption of available technologies (100 million baht)

- Conduct all necessary activities


to acquire suitable technologies
from upstream to downstream
industry
(7.5 million baht)
- Hire expert(s) to conduct the
technology assessment (from
upstream to downstream) in order
to recommend the technology
with feasibility to invest in
(2.5 million baht)

- To have an access to at least 5 compounding formulae, with an emphasis on the formulae for use in
packaging applications, thermoforming film and injection

- National Innovation
Agency*

Supporting representatives from private


sector and member of academia to attend
seminars and factory visits in countries of
advanced bioplastics technology; 5 areas of
technology (upstream, midstream and
downstream); 1.5 million baht for each
technology making up the total of 7.5
million baht

1.5

0.5

Budget for hiring expert(s) to assess the


technologies worth 2.5 million baht

2012

Period/Budget
Sources of Budget Figures

2011

Responsible Agency
(* Key Agency)

2010

1. Assess and acquire suitable


technologies to adopt or coinvest (including the execution
of feasibility study)
(10 million baht)

Functions (Budget)

- To have an access to 2 types of polymerization technologies such as PLA and PBS production

2009

Action Plans (Total Budget)

Key Indicators
- To have an access to 2 types of technologies in transforming sugar into monomer and/or PHAs, such as
production of lactic acid, PDO, succinic acid and/or PHAs

2008

Targets
1. To gain an access to at least 1 modern technology for fermenting sugar
for monomer production and/or PHAs by 2012
2. To gain an access to at least 1 modern polymerization technology for
polylactic acids (PLAs) by 2012
3. To gain an access to modern compounding technologies for
the preparation of PLA resin for molding products at least 1 technology
by 2010

- National Innovation
Agency*
- Undertake activities to introduce
proven technologies to groups of
industry executives/entrepreneurs
(5 million baht)
- Allocate partial subsidy funds for
buying licenses of intellectual
property for groups of industry
entrepreneurs
(50 million baht)
- Issue investment incentives

- Conducting various activities to identify


and persuade investors lasting 2 years; 2
events per year with 2 million baht
allocated annually, making up 4 million
baht in total
- Partial grant support for business
executives to attend conference/seminar
or have a factory visit to the country of
leading bioplastics technology; 2-year
project, 0.5 million baht allocated
annually making a total of 1 million baht
Seminars to introduce suitable
technologies; 10 times with 0.5 million
baht allotted to each, worth a total of 5
million baht

2.5

2.5

1.5

1.5

1.5

0.5

20

20

10

Support fund for procuring intellectual


properties for 10 technologies worth 50
million baht
- Board of Investment
(BOI)*

2012

2011

- Identify groups of industry


executives/ entrepreneurs who
have the potentials and are
interested in bioplastics investment
(from upstream, midstream and
downstream)
(5 million baht)

Period/Budget
Sources of Budget Figures

2010

Responsible Agency
(* Key Agency)

2009

2. Promote and support the import


or investment of technology
between groups of industry
entrepreneurs and enterprises
which own overseas
technologies
(60 million baht)

Functions (Budget)

2008

Action Plans (Total Budget)

2011

2012

Period/Budget
Sources of Budget Figures

2010

4. Develop human capacity to


transfer knowledge of
technology
(25 million baht)

- Undertake activities to provide


groups of local
executives/entrepreneurs with an
opportunity to associate with
overseas enterprises which own
technology
(5 million baht)
- Create a stimulating environment
for investment, coordinating and
facilitating groups of local
executive/entrepreneurs and
overseas technology owners in
order to encourage co-investment
between them
- Issue incentives to facilitate the coinvestment of local
executives/entrepreneurs and
oversea technology owners
- Conduct seminars and training for
personnel from private sector to
broaden knowledge of technology
(20 million baht)
- Support the training of personnel
overseas for both government and
private sectors; in case of the
private sector, the trainees must
share the cost incurred during the
training
(5 million baht)

Responsible Agency
(* Key Agency)

2009

3. Coordinate groups of industry


entrepreneurs with enterprises
which own overseas
technologies
(5 million baht)

Functions (Budget)

2008

Action Plans (Total Budget)

2.5

2.5

5.5

Organizing meetings between the local and


overseas counterparts (2-year project, 1
meeting per year, 2.5 million baht for each
meeting, totaling to 5 million baht)
- National Innovation
Agency*
- Ministry of Industry

- Board of Investment
(BOI)*

- National Innovation
Agency*

- 5-year project of training and personnel


development; 4 times a year, 1 million
baht set for each seminar/training,
making up the total of 20 million baht
- 5-year project of sending personnel
overseas for technology training; 2 times
a year, 0.5 million baht set for each
training

Total Budget for STRATEGY 2.1: Immediate adoption of available technologies

100 million baht 35.5 35.5 18.5

2.2 Further developing / generating indigenous new technologies (900 million baht)

Period/Budget
Sources of Budget Figures

5-year research program; 5 projects with 4


million baht allocated for each
- National Research
Council*
- National Innovation
Agency

2012

1. Define research directions and


offer research funds for
integrative research in further
development and/or
generation of technologies for
industrial application
(395 million baht)

- Collect and evaluate a status of


global research and state of the art
technologies which can be applied
to the production of bioplastics at
industrial level
(20 million baht)
- Collect data on finished/processing
research projects and research
personnel of countries in
connection with technology of
bioplastics production
- Define research directions for
further development and/or
generation of technologies for
industrial applications

Responsible Agency
(* Key Agency)

2011

Functions (Budget)

2010

Action Plans (Total Budget)

2009

1. Further development and generation of new technologies for


fermenting sugar for monomer production and/or PHAs (by 2012), in
polymerization (by 2011) and in compounding (by 2010)

Key Indicators
- To have at least 2 types of technologies for fermenting sugars for monomer production and PHAs,
e.g. production of lactic acids, PDO, succinic acids and/or PHAs
- To have at least 2 types of technologies in polymer production
- To have at least 5 compounding formulae per year for commercial use
- To have at least 20 research papers per year published in national academic journals and at least
5 papers per year in international academic journals
- To have at least 20 research papers presented in national academic conferences and at least 10
in international academic conferences
- To register at least 10 national patents per year and at least 1 international patent per year
(starting from 2011)

2008

Targets

(cont.)
- Allocate research funds for
research projects in the following
areas:
- Upstream research
(100 million baht)
- Midstream research
(90 million baht)
- Downstream research
(60 million baht)
- Support the instruments and
durable goods to research
institutes or research teams along
with research fund in order to
facilitate the development of
further research or improvement
of existing technology
(125 million baht)

- National Research
Council*

15

15

15

[Working in a form of
committee consisting of
representatives from
National Innovation
Agency, Bereau of the
Budget, Ministry of
Education, Ministry of
Industry, Thai
Bioplastics Industry
Association, etc.]

2) 23 three-year medium projects, 5


million baht per project, worth 115
million baht in total

40

40

35

3) 9 five-year large projects, 10 million


baht per project, worth 90 million baht
in total

30

Instruments and durable goods to support:


1) Upstream research, 60 million baht
2) Midstream research, 30 million baht
3) Downstream research, 35 million baht

60
30
35

30

30

2012

1) 45 one-year small projects, 1 million


baht per project, worth 45 million baht
in total

5-year research funds for target research;

2011

Period/Budget
Sources of Budget Figures

2010

Responsible Agency
(* Key Agency)

2009

Functions (Budget)

2008

Action Plans (Total Budget)

2011

2012

2. Define research directions and


allocate research funds for
target and integrative research
in the generation of the
countrys own technologies that
must be both crucial and
feasible
(305 million baht)

- National Innovation
Agency*

Period/Budget
Sources of Budget Figures

2010

- Gather local information on


research projects and existing
technology concerned with
bioplastics and prioritize
available technologies in order to
determine direction for research
which aims at producing
countrys own technology
(5 million baht)

Responsible Agency
(* Key Agency)

2009

Functions (Budget)

2008

Action Plans (Total Budget)

1) 50 one-year small projects, 1 million


baht per project, worth 50 million baht
in total

10

10

10

10

10

2) 12 three-year medium projects,


5 million baht per project, worth 60
million baht in total

20

20

20

50

40

Conducting meetings to gather project


information

5-year research funds for target research;


- Allocate research funds for
research projects in the
development of crucial and
feasible technologies in the
following areas:
- Upstream research
(90 million baht)
- Midstream research
(80 million baht)
- Downstream research
(30 million baht)
- Support the durable goods for
research to institutes or research
teams to ensure the readiness of
the pilot plant
(100 million baht)

- National Research
Council*
[Working in a form of
committee consisting of
representatives from
National Innovation
Agency, Bureau of the
Budget, Ministry of
Education, Ministry of
Industry, Thai Bioplastics
Industry Association,
etc.]

3) 9 five-year large projects, 10 million


baht per project, worth 90 million baht
in total
Instruments and durable goods to support:
1) Upstream research, 50 million baht
2) Midstream research, 25 million baht
3) Downstream research, 25 million baht

50
25
25

- Allocate funds for relevant


research projects to university
with research excellence on
various areas concerned with
bioplastics in order to develop to
the industrial scale
(20 million baht)
- Support the durable goods for
research to institutes or research
teams to ensure the readiness of
the pilot plant
(30 million baht)
- Initiate the cooperation among
industry sectors to support the
industrial research on the pilot
scale and invest with own fund to
carry out R&D activities with
lecturers and researchers

[Working in a form of
committee consisting of
representatives from
National Innovation
Agency, Bureau of the
Budget, Ministry of
Education, Ministry of
Industry, Thai
Bioplastics Industry
Association, etc.]

- Thai Bioplastics Industry


Association*

5-year research funds for target research;


1) 10 three-year medium projects, 5
million baht per project, worth 50
million baht in total
2) 5 five-year large projects, 10 million
baht per project, worth 50 million baht
in total

15

20

20

10

5-year research funds for target research; 4


three-year medium projects, 5 million baht
per project, worth 20 million baht in total

10

10

- Upstream instruments, 10 million baht


- Midstream instruments, 10 million baht
- Downstream instruments, 10 million
baht

10
10
10

2012

15

2011

20

- National Innovation
Agency*
- National Research
Council

- National Research
Council*
3. Encourage and support the
industrial engineering and
production process at model or
pilot level for building fullyequipped industrial factories
(150 million baht)

Period/Budget
Sources of Budget Figures

2010

- Establish a database on research


projects and researchers who
work on industrial engineering
and production process at the
model or pilot level
- Allocate funds for relevant
research projects which codevelop with private sector
(100 million baht)

Responsible Agency
(* Key Agency)

2009

Functions (Budget)

2008

Action Plans (Total Budget)

2012

5-year project to host meetings and


academic seminars; 2 meetings and
seminars a year, 1 million baht per one
event; total budget 10 million baht.

2011

- National Innovation
Agency*

Period/Budget
Sources of Budget Figures

2010

- Conduct meetings, seminars and


workshop training for researchers
in relevant fields
(25 million baht)

Responsible Agency
(* Key Agency)

2009

4. Encourage and support


researchers in conducting
collaborative research, and to
exchange research data within
and between groups
(25 million baht)

Functions (Budget)

2008

Action Plans (Total Budget)

485

215

150

25

25

- Provide advise and consultation


for the intellectual properties
registration procedures
5. Encourage and support
registration of patents, selecting
from research with potential for
development at industry level
(20 million baht)

7. Establish database of research


in technology and bioplastics
industry
(5 million baht)

- Allocate subsidies for registering


patents
(20 million baht)

- Establish database of research,


technology and companies
engaged in bioplastics
- Allocate subsidy funds for
establishing a database
(5 million baht)

- Ministry of Commerce*
(Department of
Intellectual Properties)

- National Innovation
Agency*

5-year subsidy funds for protecting


intellectual property of the countrys
technologies:
- 50 national intellectual property, 0.3
million baht per case, budget 15 million
baht, and
- 5 international intellectual property
cases, 1 million baht per property; total
budget 5 million baht
- 5-year subsidy funds for establishing
database (5 million baht)

Total Budget for STRATEGY 2.2: Further developing / generating indigenous new technologies

900 million baht

Strategy 3: Building industry and innovative businesses (total budget Baht 475 million)
3.1 Industry innovative business (445 million baht)

Action Plans (Total Budget)

1. Encourage co-investment
between groups of
entrepreneurs and enterprises
which own foreign technologies
in order to build pilot industrial
factories for monomer and
polymer production
(350 million baht)

Functions (Budget)

Responsible Agency
(* Key Agency)

- Allocate zero-interest
contingency loans for building
factories (100 million baht)
- Establish co-investment with
groups of entrepreneurs
(250 million baht)
- Suggest, advise, facilitate and
coordinate relevant sectors for
building factories

- National Innovation
Agency*

- Issue support incentives

- Board of Investment
(BOI)*

Period/Budget
Sources of Budget Figures
Zero-interest contingency loans worth 100
million baht

30

30

40

Funds for co-investment worth 100


million baht

100

150

2012

4. Set up an industrial factory for molding products (by 2011)

2011

3. Set up an industrial factory for compounding (by 2011)

2010

2. Set up a pilot industrial factory for monomer production (by 2012)

2009

1. Establish a pilot industrial factory for monomer production (by 2012)

Key Indicators
- To have 2 starch, sugar or new factories to produce monomer (such as lactic acid, succinic acid, PDO)
from sugars, with capacity of at least 1,500 tons per year and approximate investment value of 1.0
billion baht
- To have 2 factories for monomer production (such as PLA and PHAs), with capacity of at least 1,000
tons per year and approximate investment value of 1.5 billion baht
- To have 5 compounding factories which expand their existing businesses to bioplastics, or set up new
factories, with capacity of at least 300 tons per year in productivity and approximate investment value
of 200 million baht
- To have 30 molding factories expanding their businesses lines to bioplastics, with capacity of at least
100 tons per year and with approximate investment value of 300 million baht

2008

Targets

- National Innovation
Agency*

- Issue support
incentives/measures

- Board of Investment
(BOI)*

3. Support establishment of fullcycle industrial estates


specifically for bioplastics
(10 million baht)

- Determine the area of the


industrial estate including
provision of public utilities and
services and infrastructure
(10 million baht)

- Ministry of Industry*
- National Innovation
Agency
- Ministry of Commerce
- Board of Investment
(BOI)

Budget for conducting study on the zoning


for bioplastics industrial estate lasting for
2 years; worth 5 million baht per year

4. Support various activities to


help strengthening Thailands
bioplastics industries
(15 million baht)

- Support activities and initiatives


conductive to the strengthening
of bioplastics industries
(15 million baht)

- National Innovation
Agency*

Support funding of 3 million baht


annually

2. Encourage compounding
industry and product molding
by having manufacturers
expand their business lines to
include bioplastics, or building
new factory facilities to fully
support bioplastic production
(70 million baht)

2012

- Subsidize loans to expand or


construct new factories without
interest
(15 million baht)
- Initiate joint ventures with
prospective investors
(50 million baht)
- Support via subsidy fund for
importing bioplastics granules
for compounding trial run in the
pilot project
(5 million baht)

2011

Period/Budget
Sources of Budget Figures

2010

Responsible Agency
(* Key Agency)

2009

Functions (Budget)

2008

Action Plans (Total Budget)

25

25

167

217

47

Subsidized loan without interest of 15


million baht
Joint venture subsidy fund of 50 million
baht
5-year subsidy for importing a total of 25
tons of granules worth 5 million baht

Total Budget for STRATEGY 3.1: Industry innovative business

445 million baht

3.2 Building domestic and overseas markets (30 million baht)

1. Encourage manufacturers to
participate in domestic product
exhibition shows
(10 million baht)

- Collect data of annual product


exhibitions and disseminate news
to manufacturers and consumers

- National Innovation
Agency*
- Ministry of Commerce

Subsidy on exhibition participation for


100 manufacturers during the 5-year
period, 0.1 million baht per company - a
total of 10 million baht

2012

Period/Budget
Sources of Budget Figures

2011

- Subsidize participation in
exhibitions for manufacturers
(10 million baht)

Responsible Agency
(* Key Agency)

2010

Functions (Budget)

2009

Action Plans (Total Budget)

Key Indicators
- To sell 4,500 tons per year of compounding granules, valued at 300 million baht per year
- To sell 800 million baht of bioplastic products per year
- To export 1,500 ton per year of compound granules and bioplastic products worth 400 million baht per
year.

2008

Targets
1. Establish a domestic business on bioplastics compounding and
bioplastics products
2. Establish overseas markets for bioplastics compounding and
bioplastics products

- Coordinate cooperation with


foreign companies

- National Innovation
Agency*
- Ministry of Commerce

2012

- Collect data and publicize


product exhibition event abroad
to manufacturers.
- Coordinate cooperation between
Thai companies and foreign
counterparts

2011

2. Encourage manufacturers to
participate in product
exhibitions and major trade
events abroad
(20 million baht)

Period/Budget
Sources of Budget Figures

2010

- Subsidize participation of
manufacturers at exhibitions and
trade shows
(20 million baht)

Responsible Agency
(* Key Agency)

2009

Functions (Budget)

2008

Action Plans (Total Budget)

Subsidy on participation in product


exhibitions and trade promotion events for
the period of 5 years; granted to 100
companies, 0.2 million baht each a total
of 20 million baht

- National Innovation
Agency*
- German Technical
Cooperation (GTZ)

Total Budget for STRATEGY 3.2: Building domestic and overseas markets

30 million baht

Strategy 4: Establishment of Supportive Infrastructure (225 million baht)


4.1 Building industry standards for biodegradability and testing (55 million baht)

1. Establish a committee to set


national standards for
bioplastics, including assurance
logo and render these standards
effective through public
announcement
(5 million baht)

- Conduct preliminary study,


define national standards, and
submit for approval
(5 million baht)
- Execute these national standards

- Conduct public hearing on


biodegradability standards

Responsible Agency
(* Key Agency)
- National Innovation
Agency*
- Ministry of Industry*
(Thai Industrial
Standards Institute)
- Ministry of Industry*
(Thai Industrial
Standards Institute)
- National Innovation
Agency

Period/Budget
Sources of Budget Figures

0.5

0.5

- Standards establishment
4 million baht.

- 2 public hearings over 2-year period


1 million baht

2012

Functions (Budget)

2011

Action Plans (Total Budget)

2010

2. Establish a Degradability Testing Center for bioplastics

2009

1. Set national biodegradability standards for bioplastics

Key Indicators
- To set up certification standards for biodegradation for domestic products, including assurance logo
for certification
- To establish at least 2 functioning centers

2008

Targets

Staff training (10 million baht):


- 5 million baht for domestic training
- 5 million baht for on-the-job training
abroad

Total Budget for STRATEGY 4.1: Building industry standards for biodegradability and testing

2012

- Personnel development
(10 million baht)
- Provide information on testing
techniques and equipment.
- Participate in development of the
Testing Center
- Support information and advise
on the model of Testing Center

Purchase of equipments for 5 tests (40


million baht):
(1) Measureing carbon content before
testing
(2) Weighing
(3) Measuring CO2 by the DIC method
(dissolved in organic solution) or
titration with Ba(OH)2
(4) Measuring O2 through BOD test
(5) Measuring CH4 by using GC

2011

2. Establish a Degradability
Testing Center for bioplastics
(50 million baht)

- National Science and


Technology
Development Agency
(NSTDA) *
- Thailand Institute of
Scientific and
Technological Research
(TISTR)*
- Department of Science
Service
- Thai Bioplastics
Industry Association
(TBIA)
- German Technical
Cooperation (GTZ)

Period/Budget
Sources of Budget Figures

2010

- Support via subsidy fund for


establishing Degradability
Testing Center of bioplastics
(40 million baht)

Responsible Agency
(* Key Agency)

2009

Functions (Budget)

2008

Action Plans (Total Budget)

2.5

40

10

55 million baht 52.5

4.2 Environnent
4.2.1 Environnemental conservation (50 million baht)

- Analyze the regulations, policies


and measures concerned with
environmental issues in order to
support the development of
bioplastics industry and the
utilization of bioplastic product
(10 million baht)

- National Innovation
Agency*

2. Propose measures or policies to


reduce greenhouse gases,
reducing use of energy and
chemicals from industrial
sources.

- Propose regulatory control and


policies or environmental
standards, e.g. control of aerial
discharge from factories and
gaseous ejection from biohazard
incinerator

- Ministry of Natural
Resource and
Environment*
(Department of
Pollution Control)
- Ministry of Science and
Technology

The analysis and research study on


regulations, policies and standards on
environment for the bioplastics
development worth 10 million

2012

1. Study the available measures


and policies addressing the
environmental issues in order to
support the development of
bioplastics industry and the
utilization of bioplastic product
(10 million baht)

Period/Budget
Sources of Budget Figures

2011

Functions (Budget)

2010

Responsible Agency
(* Key Agency)

Action Plans (Total Budget)

2009

3. Reduce the volume of waste in Bangkok

Indicators
- To establish at least 2 government measures/policies to encourage manufacturing and use of
bioplastics
- To launch at least 2 projects/campaigns such as the Green Airline and Compost Bag for Organic
Waste
- To reduce waste in Bangkok by at least 12 percent (equivalent to 1,000 tons per day)

2008

Target
1. Implement government measures or policies to encourage and
facilitate the production and utilization of bioplastics
2. Establish pilot bioplastic project for environmental protection

5. Establish an efficient
biodegradable waste
management model
(20 million baht)

- Ministry of Natural
Resource and
Environment* (Department
of Pollution Control)
- Ministry of Interior*
(District Administration)
- Ministry of Public Health*
(Department of Health)

- Propose incentives for


manufacturers and consumers

- Ministry of Natural
Resource and
Environment*
(Department of
Environmental Quality
Promotion)

- Propose incentives for


manufacturers and consumers

- Ministry of Commerce*

- Support measures for efficient


waste management.

- Ministry of Natural
Resource and
Environment* (Department
of Pollution Control)

- Support measures for efficient


waste management.
(10 million baht)
- Encourage the waste separation
(dry and wet) to enable the waste
recovery
(10 million baht)

2012

4. Propose measures to promote


the use of bioplastics as means
to protect the environment

- Participate in initiatives for


practical waste separation (e.g.
supporting the Livable City,
Livable Community Project)
- Participate in generating
regulations for hospital waste
management

2011

3. Propose measures or policies


for local waste management

Period/Budget
Sources of Budget Figures

2010

- Propose waste management


measures with emphasis on
household waste separation

Responsible Agency
(* Key Agency)

2009

Functions (Budget)

2008

Action Plans (Total Budget)

- Ministry of Interior*
(District Administration)
- National Innovation
Agency*

Project funding of 10 million baht for


5-year implementation period

- National Science and


Technology Development
Agency (NSTDA)*

7. Green Airport Project for


Suvarnbhumi International
Airport

- Promote the use of bioplastics in


the airport compound

- Ministry of Transport*

8. Pilot community project for


bioplastic bags and organic
waste for biogas production; to
be implemented in 2 selected
districts
(10 million baht)

- Create understanding about


waste separation to people in the
community
- Distribute garbage bags within
the target community
(10 million baht)
- Coordinate and create
understanding with community
in the pilot areas.

- Ministry of Interior*
(District Administration)

2012

- Appoint researcher(s) to study,


gather information, analyze and
conduct LCA for bioplastics
(10 million baht)

6. Conduct Life Cycle Assessment


(LCA) for bioplastics and
compare with result from
conventional plastics
(10 million baht)

2011

- Support the LCA analysis of


bioplastics

- Ministry of Natural
Resource and
Environment*
(Department of Pollution
Control)

Period/Budget
Sources of Budget Figures

2010

Responsible Agency
(* Key Agency)

2009

Functions (Budget)

2008

Action Plans (Total Budget)

16

16

Funding for the LCA study worth 10


million baht

Funding for the provision of bioplastic


garbage bags for the duration of 5
years; 1 year for 1 locality with
estimated 5,000 bag/day, worth 10
million baht in total

- Thailand Environmental
Institute (TEI)*

Total Budget for STRATEGY 4.2.1: Environnemental conservation

50 million baht

4.2.2 Public relations and building awareness (120 million baht)


Index
- To hold regional exhibition on bioplastics once a year during the 5-year period
- To create advertising media including, but not limited to, radio and television spots

- National Innovation
Agency*

2. Integrate the content on


bioplastics into Environment
Studies in the education
curricula.

- Submit the content to be added to


the curricula

- Ministry of Education*
(Schools, colleges and
universities)

3. Establish and/or purchase


documentary on bioplastics, and
distribute to school and
institutions of higher education
(30 million baht)
4. Environment Innovation Award
(5 million baht)
5. Produce television and radio
promotional media
(30 million baht)

- Produce or purchase
documentaries
(30 million baht)
- Distribute documentary to
education institutes
- Determine conditions and
award prizes
(5 million baht)
- Produce advertising media to
create positive attitudes towards
bioplastics
(30 million baht)

2012

- Enhance public understanding on


bioplastics, from manufacturing
processes, degradation and
environmental impacts
(5 million baht)

2011

1. Hold the exhibition introducing


bioplastics.
(5 million baht)

Period/Budget
Sources of Budget Figures

2010

Functions (Budget)

2009

Responsible Agency
(* Key Agency)

Action Plans (Total Budget)

2008

Target
1. Arrange campaigns to introduce bioplastics to consumers
2. Create positive attitudes towards using bioplastics, including social
and environmental consciousness

5 exhibitions over the 5-year period;


total budget of 5 million baht

- National Science and


Technology Development
Agency (NSTDA)*
- Ministry of Education*
(Schools, colleges and
universities)

Subsidy fund of 5 million baht to


purchase a documentary from overseas
(e.g. BBC or NHK from Japan, or to
produce locally

- National Innovation
Agency*

Prize money and event support of 1


million baht per year

- National Innovation
Agency*

Subsidy fund of 30 million baht for the


duration of 5 years 1 event per year,
max 6 million baht per promotional
event

Total Budget for STRATEGY 4.2.2: Public relations and building awareness

120 million baht

2012

Hosting 1 exhibition per year;


10 million baht set for each event

2011

- National Innovation
Agency*

Period/Budget
Sources of Budget Figures

2010

- Organize exhibitions and


publicize the events
(50 million baht)

Responsible Agency
(* Key Agency)

2009

6. Convene an international
exhibition in Thailand
(50 million baht)

Functions (Budget)

2008

Action Plans (Total Budget)

10

10

10

10

10

24

24

24

24

24

4.3 Policies (Technology, Industry, Environment)


Target
1. Establish supportive technology policies

Key Indicators
- Technology policies created and implemented

2. Establish supportive policies for bioplastics industry business

- Industry business policies created and implemented

3. Establish supportive policies to stimulate domestic and export


markets

- Market stimulation policies created and implemented

- Issue policies and measures for


tax, inducement, privileges and
exemptions (such as the privilege
for tax exemptions for
investment in technology R&D)

- Ministry of Finance*
(Thai Customs Department,
Revenue Department)

- Issue policies and measures to


accelerate technology R&D

- National Innovation
Agency*
- National Research Council
- Ministry of Education
(education institutes,
Commission on Higher
Education, Institute for the
Promotion of Teaching
Science and Technology)
- Thailand Research Fund

1. Propose policies and measures


to accelerate growth and
technology transfer

2012

2011

Period/Budget
Sources of Budget Figures

2010

Responsible Agency
(* Key Agency)

2009

Functions (Budget)

2008

Action Plans (Total Budget)

- Issue policies to support


establishment of bioplastics
production facilities (e.g. tax
privileges for investment)
2. Propose policies and measures
supporting bioplastic industry
development
- Issue policies to enforce some
locally produced plastic parts,
e.g. electrical parts, to be
replaced by bioplastics

3. Propose policies and measures


facilitating import and export of
compounding granules and
bioplastic products

- Issue policies, measures, tax


privileges, trade privileges and
international measures
facilitating imports and exports
of bioplastics

- Issue biodegradation standards

- Ministry of Industry*
(Dept. of Industrial
Promotion, Board of
Investment, Office of
Industrial Economics,
Office of SME Promotion,
Industrial Estate Authority)
- Ministry of Finance
- Ministry of Natural
Resource and
Environment*
- Ministry of Industry
(Board of Investment)
- National Innovation
Agency
- Ministry of Finance*
(Thai Customs Department,
Revenue Department)
- Ministry of Commerce
(Dept. of Foreign Trade,
Dept. of Interior Trade,
Dept. of Trade Promotion,
Dept. of Export Promotion)
- National Innovation
Agency
- Ministry of Industry*
(Office of SME Promotion,
Industrial Standards
Institute)
- National Innovation
Agency

2012

2011

Period/Budget
Sources of Budget

2010

Responsible Agency
(* Key Agency)

2009

Functions (Budget)

2008

Action Plans (Total Budget)

Table 2.2 Summary of Annual Budget Allocation

Year/Budget (million baht)


Organization

Total
2008

2009

2010

2011

2012

1. Ministry of Agriculture and Cooperatives

11.0

11.0

9.6

9.2

9.2

50.0

2. Ministry of Industry

5.0

5.0

10.0

3. National Research Council of Thailand

496.0

224.0

147.0

14.0

14.0

895.0

4. National Science and Technology Development Agency

36.0

11.0

6.0

6.0

6.0

65.0

5. Thailand Institute of Scientific and Technological Research

25.0

25.0

6. National Innovation Agency

238.0

288.0

98.5

45.5

45.0

715.0

7. Ministry of Commerce

4.0

4.0

4.0

4.0

4.0

20.0

8. Ministry of Interior (District Administration Organizations and


Bangkok Metropolitan Administration)

4.0

4.0

4.0

4.0

4.0

20.0

819.0

547.0

269.1

82.7

82.2

1,800.0

Total

Table 2.3 Annual budget allocation for Strategy 1


Year/Budget (million baht)
Organization

Total
2008

2009

2010

2011

2012

11.0

11.0

9.6

9.2

9.2

50.0

22.0

20.0

8.0

50.0

6. National Innovation Agency

7. Ministry of Commerce

8. Ministry of Interior

33.0

31.0

17.6

9.2

9.2

100.0

1. Ministry of Agriculture and Cooperatives


2. Ministry of Industry
3. National Research Council of Thailand
4. National Science and Technology Development
Agency
5. Thailand Institute of Scientific and Technological
Research

Total

Table 2.4 Annual budget allocation for Strategy 2


Year/Budget (million baht)
Organization

Total
2008

2009

2010

2011

2012

1. Ministry of Agriculture and Cooperatives

2. Ministry of Industry

474.0

204.0

139.0

14.0

14.0

845.0

6. National Innovation Agency

42.5

42.5

25.5

12.5

12.0

135.0

7. Ministry of Commerce

4.0

4.0

4.0

4.0

4.0

20.0

520.5

250.5

168.5

30.5

30.0

1,000.0

3. National Research Council of Thailand


4. National Science and Technology Development
Agency
5. Thailand Institute of Scientific and Technological
Research

8. Ministry of Interior
Total

Table 2.5 Annual budget allocation for Strategy 3


Year/Budget (million baht)
Organization

Total
2008

2009

2010

2011

2012

5.0

5.0

10.0

168.0

218.0

53.0

13.0

13.0

465.0

7. Ministry of Commerce

8. Ministry of Interior

173.0

223.0

53.0

13.0

13.0

475.0

1. Ministry of Agriculture and Cooperatives


2. Ministry of Industry
3. National Research Council of Thailand
4. National Science and Technology Development
Agency
5. Thailand Institute of Scientific and Technological
Research
6. National Innovation Agency

Total

Table 2.6 Annual budget allocation for Strategy 4


Year/Budget (million baht)
Organization

Total
2008

2009

2010

2011

2012

1. Ministry of Agriculture and Cooperatives

2. Ministry of Industry

3. National Research Council of Thailand

4. National Science and Technology Development


Agency

36.0

11.0

6.0

6.0

6.0

65.0

5. Thailand Institute of Scientific and Technological


Research

25.0

25.0

6. National Innovation Agency

27.5

27.5

20.0

20.0

20.0

115.0

4.0

4.0

4.0

4.0

4.0

20.0

92.5

42.5

30.0

30.0

30.0

225.0

7. Ministry of Commerce
8. Ministry of Interior
Total

Expected Outputs from the Implementation of


the National Road Map for the Development of Bioplastics Industry
Economic, industrial and agricultural aspect (valued 4.5 billion baht)
Establishment of new wave industry and a complete range of innovative
bioplastics business (from the upstream to downstream) with an investment value
of 3,000 million baht.
An ability to reach 1 percent of the market share (by value) of plastic products
produced, worth 1.5 billion baht.
New value creation and value-added which will increase a price stability for
agricultural crops used as feedstock
Technological aspect (valued 500 million baht)
New technology for the country, leading to at least 50 items of the intellectual
property, worth 300 million baht.
Technology transfer and business integration between foreign technology owners
and local partners, making use of Thailands supplies of biomass. The economic
value of this contribution to the countrys technology base is valued at 100 million
baht.
Creation of national core expertise in specialized fields, leading to integrated and
targeted R&D which will create the industrial innovation research work valued at
100 million baht.
Environmental aspect (valued 500 million baht)
Budget reduction of 400 million baht (currently allocated to dispose of the
conventional plastic wastes).
Awareness and consciousness of the environment preservation throughout
Thailands population.
Use of biodegradable plastic products to help enhance quality of life and
contribute to environmental protection.
Pilot demonstration areas with the complete range of system of biodegradable
plastic use, with an environment value of 100 million baht.
Policy aspect
Establishment of effective policies and measures which will promote and facilitate
investment in the bioplastics industry.
Establishment of effective policies and measures to accelerate, R&D and
technology transfer for manufacturing of bioplastics.
Measures and environmental regulations supporting the use of biodegradable
plastics.
Bioplastics industry measures.

Abbreviations
Organization
ASEAN
MTEC
NIA
NRCT
PPC
R&D
SME
TBIA

Association of South East Asian Nation


National Metal and Materials Technology Center
National Innovation Agency
National Research Council of Thailand
Petroleum and Petrochemical College
Research and Development
Small and Medium Enterprise
Thai Bioplastics Industry Association

Chemical reagents
AAC
BDO
BOD
COD
DMT
DOA
DOP
HDPE
HDT
LDPE
PBA
PBAT
PBS
PBSA
PBT
PCL
PDLA
PDO
PE
PEG
PES
PET
PGA
PGLA
PHAs
PHB
PHBV
PLA
PLLA

aliphatic-aromatic polyester
1,4-butane diol
biological oxygen demand
chemical oxygen demand
dimethyl terephthalate
dioctyl adipate
dioctyl phthalate
high density polyethylene
heat distortion temperature
low density polyethylene
poly(butylene adipate)
poly(butylene adipate terephthalate)
poly(butylene succinate)
poly(butylenes succinate adipate)
poly(butylene terephthalate)
poly(carprolactone)
poly(d-lactic acid) or poly(d-lactide)
1,3-propane diol
polyethylene
poly(ethylene glycol)
poly(ethylene succinate)
poly(ethylene terephthalate)
poly(glycolic acid)
poly(glycolic-co-lactic acid)
poly(hydroxyalkanoate)s
poly(hydroxybutyrate)
poly(hydroxybutyrate-hydroxyvalerate)
poly(lactic acid) or polylactide
poly(l-lactic acid) or poly(l-lactide)

PP
PS
PTT
PVA
PVAc
PVC
Tg
Tm
TPA
TPS

polypropylene
polystyrene
poly(trimethylene terephthalate)
poly(vinyl alcohol)
poly(vinyl acetate)
poly(vinyl chloride)
glass transition temperature
melting temperature
terephthalic acid
thermoplastic starch

Proposed Works for


Bioplastic Policy Study
in Thailand
Asst. Prof. Pomthong Malakul
Asst. Prof. Hathaikarn Manuspiya
The Petroleum and Petrochemical College
Chulalongkorn University

Current Status of Bioplastics in Thailand

National Road Map of Bioplastics in Thailand


Expected Thai Government Policy and Supporting
for Investment
Scope of Proposed Work: Policy Study for the
Promotion of the Bioplastics Industry and
Biodegradable Products in Thailand

Current Status of Bioplastic in


Thailand
Private sector activities

Government sector activities

 Nature Works : establishing the


new plant as a base for its Asia plant
which is expected to start operations
in 2014.

 Thai Government : efforts to derive


5% of plastics from bio-based sources
in 2012 by introducing an incentive
program that includes research
funding and favorable tax policies.

 BASF : leading a pilot project to


encourage consumers to use
biodegrable bags for waste and
compost in Thailand.

 The Thai government is taking


steps towards making Thailand a
regional bioplastic hub.

National Road Map of Bioplastic in


Thailand

Chapter 1: Current Situation of Bioplastics in Thailand


 Status of Bioplastics in Thailand
 Thailands readiness for a Bioplastics Industry
Chapter 2: Strategy, Action Plan and Budget
 Strategy 1: Sufficient Supply of Biomass Feedstock
 Strategy 2: Accelerating Technology Development and Technology
Cooperation
 Strategy 3: Building Industry and Innovative Business
 Strategy 4: Establishment of Supportive Infrastructure

Chapter 1: Current Situation of Bioplastics in Thailand :


Status of Bioplastic in Thailand

 The amount of garbage produced in Thailand is constantly increasing,


with over 14.4 million tons created in 2003.
 In particular, since 2003 NIA has been active in promoting bioplastics,
compiling technology and business information on bioplastics from leading
countries as well as coordinating with all stakeholder organizations to drive
the support infrastructure and policy for the establishment bioplastics
industry in Thailand.

Chapter 1: Current Situation of Bioplastics in Thailand :


Status of Bioplastic in Thailand

 Cassava roots are first transformed into cassava starch, which is then put
through a scarification process using enzymes to produce liquid glucose.

Chapter 1: Current Situation of Bioplastics in Thailand :


Status of Bioplastic in Thailand

 Production of monomer and bioplastics product in Thailand : some


companies have started developing their business to produce relating
bioplastics product.

Chapter 1: Current Situation of Bioplastics in Thailand : Status of


Bioplastic in Thailand
Table 1 Companies carrying on business relating to bioplastics

Chapter 1: Current Situation of Bioplastics in Thailand : Status of


Bioplastic in Thailand
Table 1 Companies carrying on business relating to bioplastics

In Thailand, the worlds largest lactic acid producer, PURAC, (The Netherlands-based company)
opened a state of the art lactic acid production facility in Rayong on Jan 2008

Chapter 1: Current Situation of Bioplastics in Thailand :


Thailands readiness for a bioplastics industry

Raw Materials
The Plastics Industry and Market Growth in Thailand
Government Policy and Support Measures

Chapter 1: Current Situation of Bioplastics in Thailand :


Thailands readiness for a bioplastics industry
1. Raw materials
 Thailand has major comparative advantage in producing bulk
commodities such as rice, sugar cane, cassava, cellulose, wheat and oil
palm.
 Cassava is the most feasible and appropriate crop for bioplastics
industrial production because of its competitive prices and abundant
growing capacity in Thailand.

Chapter 1: Current Situation of Bioplastics in Thailand :


Thailands readiness for a bioplastics industry
2. The plastics industry and market growth in Thailand

Chapter 1: Current Situation of Bioplastics in Thailand :


Thailands readiness for a bioplastics industry
2. The plastics industry and market growth in Thailand



 
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Chapter 1: Current Situation of Bioplastics in Thailand :


Thailands readiness for a bioplastics industry
3. Government policy and support measures
 There is currently no law dealing specifically with bioplastics, therefore
laws concerning plastics and foams packaging are currently applied.
 Some suggestions related to current legislation are offered such as
customs tariff decree, the excise tax act, industrial product standards act,
consumer protection act and public health act.

Chapter 2: Strategy, action plan and budget

 There is an urgent need to establish alliances at national and


international levels to support technology transfer and accelerate the
development of bioplastics innovations and technologies.
 Apart from technology transfer, the enhancement of the national
technology capacity will be required in order to make best use of its
comparative advantages in terms of natural resources and existing
supporting industry , proximity to markets.

Chapter 2: Strategy, action plan and budget

The most important factors as drivers for the


bioplastics industry in Thailand.

The top three important factors reported were


Packaging law
Government policy
Costs

J. Technol. Manag. Innov. 2009, Volume 4, Issue 1

The most important factors to maximize the


success of bioplastics industry in the next
five years.
The top three factors were chosen are
Public policy
Technology
Open innovation through academic-industry
relationship.
J. Technol. Manag. Innov. 2009, Volume 4, Issue 1

Major finding from the primary


qualitative research
Policy
maker

Technology

Economics

Policy

Market

Should indicate
how much carbon
dioxide is able to
reduce by
using respective
bioplastics
product.

Renewable feed
stocks in Thailand
such as
sugar and tapioca.

- Drive bioplastic
business
through
Biodegradable
plastic
national road
map,
which approved by
Thai
cabinet on July
2008
- Board of
InvestmentBOI (Thailand) has
planned to put
investment
incentives and
explore
opportunities of
bioplastics
business in
Thailand

- Price sensitive
- Uncompetitive
prices.
No local raw
material
available.
- Lack of serious
environmental
law enforcement

Technology

Economics

Policy

Market

Researcher

Researchers are
working on PLA
polymerization
and mechanical
property
improvement.

World largest lactic


acid plant in
Thailand
with use as raw
material
for polylactic acid
production.

Set up standard and


certify
body according to
ISO17088 and
EN13432

Price sensitive

Manufacturing

Plastic converter
industry
in Thailand is
hand on
experience
and existing
machinery
equipments are
suitable or only
small
adjustment
needed to
apply with
biodegradable
plastics

Price uncompetitive.
Limited PLA
producer
and no local
producer
available.
High cost of end
product,
when compare
with conventional
plastics

Import tax for


polylactic
acid is still not
category
separately. It is go
with
family of aliphatic
polyesters

- Lot of enquiry from


customers, but price
is
a high barrier
- Need to improve
heat resistant and
mechanical
property to
serve the market
demand
- Lack of customer
Orientation

Expected Thai Government Policy


and Supporting for Investment

Environment Policy
Investment Policy

Environment Policy

 Propose policies for local waste management with emphasis on


household waste separation.
 Encourage the waste separation (dry and wet) to enable the waste
recovery.
 Establish an efficient biodegradable waste management model.
 Propose regulatory control and policies or environmental standards,
e.g. Control of conventional plastics or disposable plastics, in a specific
time range.
 Propose policies to promote the use of bioplastics as means to
protect the environment.
 Propose policies to promote the use of bioplastics in tourist
attractions.
 Issue policies to support establishment of bioplastics production
facilities (e.g. green tax incentive).

Investment Policy

 Issue policies to support establishment of bioplastics production


facilities (e.g. tax privileges for investment).
 Propose policies to protect the bioplastic investment using Patent
registration.
 Issue policies for a zero tax for facilitating import of compounding
granules and bioplastic products

Scope of Proposed Work

Objectives

 Identification of appropriate legal and incentive frameworks, and


institutional arrangements to promote bioplastic production in Thailand
(policy analysis).
 Identification of a coherent long-term strategy to build up an adapted
bioplastic value chain in Thailand (recommendations of policy
instruments for decision makers).

Scope of the Service

Part I : Bioplastics and waste management overview


 Overview of the current waste laws/formalities regarding bioplastics
in Thailand.
 Overview of the current status regarding the handling of bioplastics
 Are there any concrete bans?
 Is there an official quota agreement and how is it applied?
 Is there a current market for bioplastics in Thailand and which mass
flow is there on the market?
 Illustration of regional, structural and cultural conditions for the
application of bioplastics and their recirculation after their use
regarding (acceptance, separation behavior and modilities, incentive
system eg. Tax, refund, etc.).

Scope of the Service

Part II : Analysis of the legal and incentive frameworks and institutional


arrangements of the bioplastic sector in Thailand (Policy and strategy
analysis)
 Analysis of the political aims to promote bioplastics in Thailand.
 Analysis of existing policies, rules, regulations and law enforcements
regarding their impacts on the promotion of the bioplastics industry in
Thailand.
 Analysis of existing institutional arrangements in the Thai bioplastic
sector.
 Analysis of existing incentive structures and instruments to promote
bioplastic development in Thailand.
 Analysis of public opinion (image and awareness) on bioplastics in
Thailand.

Research Methodology
Study, interview, collect and analyze the
related data.
Conclusion of the important issues of the
present situation
Meeting to consult with
the GTZ and the NIA
Organization of brainstorming workshops
(SWOT Analysis)
Meeting to consult with
the GTZ and the NIA
Compilation of the results of the
workshops and the revision of the drafted
policies

Submission of the drafted policies

Domestic Data
1)

Related policies and measures

Since Thailand has not yet possessed the policies or the measures that are
directly connected with the promotion and the production and usage of bioplastic,
the study team will therefore collect and analyze the following data:
Environmental policies and related regulations, such as policies on the
management of plastic and foam packages.
Relates laws, such as the Act on Revenue Tax and the Consumers
Protection Act.
2) Organizations
Organizations that are related to the promotion of the protection and usage
of bioplastic and the environmental-friendly materials.
The potentiality of the various organizations to become partners in the push
for the production and usage of bioplastic products and the environmentalfriendly materials under the national roadmap for the development of
bioplastic industries.
Others

Commentators: Government, National Agencies, Association, University, and Industry

The whole bioplastic value chain

Qualitative Surveys

Team Project

Assoc. Prof. Chayodom Sabhasri, Ph.D.

Asst. Prof. Pomthong Malakul, Ph.D.

Assoc. Prof. Pramoch Rangsunvijit, Ph.D.

Asst. Prof. Hathaikarn Manuspiya, Ph.D.

Ms. Karnthidaporn Wattanakul

Ms. Kanokporn Panichayakul

DISPOSABLE BIOPLASTICS
CONSUMER DISPOSABLES
AGRICULTURAL FILMS
A Market Opportunity Study
April 2008
By: Phil Sarnacke & Stephen Wildes

OMNITECHINTERNATIONAL,LTD
2715 Ashman Street Midland, Michigan 48640
Phone: (989)631-3377
Fax: (989)631-0812

TABLE OF CONTENTS
Executive Summary

PART 1 CONSUMER DISPOSABLE PLASTICS............1


Introduction ............................................................................. 1
Overview of North American Plastics Market ................................. 1
Plastic Types ............................................................................ 3
Disposable Plastic Products......................................................... 4
Market Demand for Renewable Bio-based Thermoplastics ............... 5
Government Action............................................................... 7
Global Market Size ............................................................... 7
U. S. Market Size ................................................................. 9
By Plastic Type................................................................ 9
By Market Use .............................................................. 10
Pricing................................................................................... 14
Conclusions and Recommendations ........................................... 14
APPENDIX .............................................................................. 16

PART 2 AGRICULTURAL FILMS........................................... 24


Agricultural Films Market Summary ........................................... 24
Mulch Film Market Whats Changed Since 2000......................... 25
Agricultural Films Market Situation Analysis ............................. 26
Agricultural Films World Demand 2007 .................................... 27
Mulch Film Products U.S. ....................................................... 30
Mulch Film Performance Requirements ....................................... 32
Economics ............................................................................. 32
Market Outlook ....................................................................... 33
Farmer Challenges .................................................................. 33
State of the Art Biodegradable Films ....................................... 34
Market Opportunity ................................................................. 35
Biodegradable Mulch Films ....................................................... 35
Recommendations................................................................... 35

OMNI TECH INTERNATIONAL, LTD.

TABLES
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table

A
B
C
D
E
F
G
H
I
J
K
L

Global Market for Biodegradable Polymers ..................... 8


U. S. Projected Demand by Bio-based Plastic Type ......... 9
Market Demand for Bio-based Plastics ........................ 10
Pricing ................................................................... 14
Biodegradable / Renewable Plastics ............................ 18
Novamonts Starch Polymers ..................................... 19
Polylactic Acid Properties .......................................... 20
Ecoflex Biodegradable Plastic vs. LDPE ..................... 21
Current USB Soy Protein Projects............................... 23
World Mulch Film Market........................................... 29
U. S. Mulch Films .................................................... 31
U. S. Mulch Film Manufacturers ................................. 31

CHARTS
Chart
Chart
Chart
Chart
Chart

A
B
C
D
E

Polymers from Renewable Resources .......................... 16


Bio-based Feedstocks ............................................... 17
World Demand 2007 Ag Films ................................. 28
World Demand 2007 Ag Films by Use ...................... 28
World Demand 2007 Mulch Films............................. 29

OMNI TECH INTERNATIONAL, LTD.

EXECUTIVE SUMMARY
PART 1 - CONSUMER DISPOSABLE PLASTICS
The demand for bioplastics, both biodegradable and non-biodegradable,
makes it one of the fastest growing thermoplastic product types globally.
Global demand is expected to reach over one billion pounds by 2012.
Currently, the biodegradable segment of bioplastics is the largest segment of
the bioplastics category, but it is projected to be displaced by the nonbiodegradable bioplastics group of products, which may or may not be 100%
derived from biomass. Packaging, disposable food service and fiber
applications are major use areas.
In the United States, the growth of bioplastics is estimated to be 19% per
annum through 2011, reaching a projected consumption in the U.S. of over
600 million pounds. The growth is driven by several factors: 1) large
retailers, such as Wal-Mart and Target, requesting that their suppliers adopt
bioplastics for packaging products they stock, 2) the public concern over the
depletion of petroleum based raw materials, 3) the desire of manufacturing
companies to develop more sustainable raw material sources, 4) the
improvement in properties of bioplastics, 5) state and federal government
support for biobased products, and 6) the more cost competitive relationship
that bioplastics have achieved versus petroleum based plastics.
Polylactic acid polymer (PLA) demand is growing rapidly in both packaging
and fiber applications. Demand for starch based polymers, in a modified form
or blended with another polymer such as PLA for biodegradability or with a
polyolefin such as polypropylene, will continue to grow. Omni Tech estimates
that the growth in demand for starch based plastics will be equal to the
growth in PLA at about 19% per year through 2011, reaching,
conservatively, 180 million pounds.
Among the bioplastic applications, four uses have standout growth
opportunities in the immediate future: 1) biodegradable bags/films, 2)
biodegradable plastic foam cushioning blocks, 3) bioplastic fibers, degradable
and non-degradable, and 4) bioplastic molded products, degradable and nondegradable.
Significant research and development work at several universities on
developing biodegradable bioplastics made from soy protein products (meal,
flour, concentrate, and isolate) in combination with PLA and other
biodegradable plastics is being funded by USB New Uses, and should
continue to be supported. This work is building on past R&D efforts that have
laid the technical ground work for these new projects.
Although past research and development work to develop a bioplastic using
soy protein as a component has not as yet been commercially successful,

OMNI TECH INTERNATIONAL, LTD.

new driving forces and biopolymer technology have improved the


opportunities for a soy protein containing bioplastic to be developed
Additional projects using soy protein products combined with nonbiodegradable biomass plastics and petroleum based plastics and targeted at
specific large volume applications in fibers, molded products and films should
be encouraged and supported.

PART 2 AGRICULTURAL FILMS


Photodegradable film use is gone and no commercially proven biodegradable
mulch films are yet available in the U.S. The unmet market demand for
these films is, however, strong because mulch film disposal costs are
escalating and the problem remains unresolved. Two new biodegradable
mulch films have been developed using renewable feedstocks that are in the
early stages of market introduction.
It is recommended that the USB New Uses Committee consider funding
support for future projects involving the development of soy-based
biodegradable agricultural mulch films. USB funding support was not
recommended in the 2001 market study update. However, demand for
biodegradable mulch films has increased considerably since then and the
market will now support premium priced biodegradable films if they perform
well and eliminate the need for mulch film collection and disposal. An RFP
(Request for Proposal) focused on soy protein-based biodegradable mulch
films sent to key universities and mulch film manufacturers could stimulate
R&D efforts.

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DISPOSABLE BIOPLASTICS
PART 1
CONSUMER DISPOSABLE PLASTICS
Phil Sarnacke
INTRODUCTION
The last Omni Tech report on opportunities in the thermoplastic market was in 2001.
At that time agricultural films and polyvinyl chloride (PVC) plasticizer segments were
the focus of the study. Since that time not only have the customers and soy
opportunities changed, but the market prices of many competing petrochemical based
plastics have increased dramatically, making soy based plastic more economically
competitive.
The study will identify the current market size, market growth, competitive products
and opportunities for soy based plastics in the disposable plastics market. This market
segment includes biodegradable/compostable plastics and non degradable plastics
derived from renewable biomass. Opportunities for soy based plastics exist in both
sub classification segments.

OVERVIEW OF NORTH AMERICAN PLASTICS MARKET


In 2006 the US Plastic market demand was 113 billion lbs. Thermoplastics
made up 90 billion lbs of the total plastics market. The primary end use applications
and the volume of plastics consumed for each of the major market categories are
estimated as follows:
Transportation:
Motor vehicles and parts, including: autos, truck and bus bodies; parts for autos and
trucks, including engines and electrical ignition systems; truck trailers and containers,
including special purpose vehicles (i.e. fire truck) other than military. Also, aircraft
and parts; ships and boats; railroad equipment; motorcycles and bicycles; missiles
and space vehicles; recreational vehicles including golf carts; military, land, air and
marine vehicles. 2006 Demand 4,600 million lbs.
Packaging:
Bottles, jars, vials; drums, pails, cans, barrels, buckets; caps, closures, aerosol parts;
food containers excluding disposable cups; coating for all types of packaging; flexible
packaging including bags, household and institutional refuse bags and film; boxes and
baskets; personal care packaging products; pallets, crates, spools, reels, bobbins,
tape, strapping, twine. 2006 Demand 26,200 million lbs

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Building And Construction:


Pipe, conduit, and fittings including pipelines, drainage and irrigation systems;
plumbing fixtures; siding, siding accessories, soffits, fascia, skirts for mobile homes;
flooring; insulation materials; roofing materials; partitions, panels; agricultural film;
doors, windows, sills; bathroom units, steps, gratings, railings; skylights, countertops,
drainage downspouts; air-supported structures. 2006 Demand 15,500 million lbs.
Electrical And Electronic:
Home and industrial appliances including washers and dryers, air conditioners, lighting
fixtures (affixed), freezers and refrigerators; small appliances; radios, TVs,
telephones, office machines; electric equipment including electric power equipment,
motors and controls, measuring and control equipment, lighting and wiring
equipment, current-carrying equipment, non-current-carrying wire devices, pole line
hardware; communications equipment; electronic components including tubes, semiconductors, capacitors, resistors, coils and transformers, magnetic tape and audio,
printed circuits, records and tapes, X-ray equipment; batteries, wire and cable. 2006
Demand 2,700 million lbs.
Furniture And Furnishings:
Rigid furniture including household, case goods, dinettes, lawn/garden furniture,
headboards, occasional pieces, also office, institutional, and school furniture; stadium
seating; benches for public buildings; churches and restaurant furniture; store
fixtures; counter tops; flexible furniture including household upholstered furniture,
cushioning, frames, simulated wood components for upholstered furniture, decorative
pillows, bedding, bed pillows; carpets and carpet components including backing;
curtains, house furnishings, awnings, blinds, household portable lamps and furniture
accessories, wall decorations and coverings. 2006 Demand 3,350 million lbs.
Consumer and Institutional Products:
Disposable food serviceware including cups, dinnerware, tableware, kitchenware,
drinking straws; luggage, buttons, hardhats, handbags, apparel; lawn and garden
equipment (non-electrical); picnic jugs, ice chests, flower boxes; healthcare, medical
products and personal care items including combs, brushes, prosthetic devices,
medical tubing, blood packs, syringes, IV bags; toys and sporting goods (not vehicles)
including plastic pools, liners, fishing line, life jackets; laboratory supplies; footwear;
signs, displays, credit cards, placemats, ashtrays, mats. 2006 Demand 17,700
million lbs.
Industrial/Machinery:
Engine and turbine parts (except outboard); farm and garden machinery and
equipment, construction equipment, mining equipment, oil field equipment, material
handling equipment; machine tools (including hand power tools and hardware);
industrial equipment; fishing and marine supplies (including commercial buoys and
markers); chemical process equipment; ordnance and firearms. 2006 Demand
1,000 million lbs.

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Adhesives - Inks - Coatings:


Adhesives and sealants; paper coating and glazing; printing ink; paints, varnishes,
enamels; insulating varnishes and magnet wire enamels; core binder, foundry facing.
2004 Demand 1,110 million lbs.
All Other (Not Elsewhere Classified):
Other sales of resins that cannot be classified under any other major market category.
Includes sales to resellers and compounders. 2006 Demand 2,000 million lbs.

North American Export: 2006 Demand 10,000 million lbs.


Plastic Types
There are over 30 major (large volume) family types of plastics produced
commercially today. Two major plastic groupings derived from hydrocarbons (natural
gas or oil) are Thermoplastics and Thermoset plastics. The Thermoplastic polymers
are those polymers that are melted and formed into a net shape article or film. They
can be remelted and reformed as well. Thermoset plastics are polymers that are
usually formed by the mixing of two chemical compounds that react chemically and
form a polymer that will not reform on being exposed to heat due to cross linking with
the polymer matrix. A smaller third category of thermoplastics exists that are derived
from biomass. Most of the products in this family are derivatives of cellulose or
modified starch; however recently, two new families of plastics derived from corn,
polylactic acid (PLA) and polyhydroxyalkonates, have been developed and are being
used to replace hydrocarbon derived thermoplastics in a variety of applications.
Within each family of plastics there can be a dozen or more variants or derivatives off
the base polymer type. As an example within the thermoplastics group, the
polyethylene family can be divided into several sub groups (high density, low density,
linear low density, ultra low density), based on the specific gravity (density) of the
polymer. The following is an abbreviated list of major family types of thermoplastics
and thermoset plastics produced from petrochemicals and consumed in North America
and in the rest of the world:
THERMOPLASTIC FAMILIES
Polyethylene
Polypropylene
Polystyrene
Polyvinyl Chloride (PVC)
Polyesters (PET, PBT)
Engineered Plastics
o Polycarbonate
o Nylon
o Polysulfone
o ABS

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THERMOSET PLASTIC FAMILIES


Polyurethanes
Epoxy resins
Unsaturated Polyesters
Vinyl Esters
Phenolic resins
Silicones
All of these plastics are derived from oil or a natural gas derivative. The remainder of
this study will be concerned with the opportunity for bioplastics, specifically derived
from renewable biomass. Characterization of these plastics is more difficult due the
hybridization of their backbones.
BIOPLASTICS
Thermoset polymers
Soy polyurethanes
Unsaturated polyester resins
Thermoplastic polymers
Polylactic acid
Modified starch polymers
Thermoplastic polyesters
Bio-polyolefins
Polyhydroxy alkonates (PHA)
Cellulose ethers
Some but not all of these bio-based thermoplastic polymer families meet the ASTM
definitions of biodegradable/compostable. All contain some amount of biomass
derived from a renewable resource as part of their macromolecular structure. None of
the thermoset plastics meet the ASTM definition of biodegradable/compostable by
design.
As a group they still represent relatively small volume of the total volume of plastics
produced in the world today. Estimates run from 200 million to 500 million lbs.
depending on whether the modified cellulosic polymers are included; however, the
growth rate of demand for bioplastics is expected to grow at double digit rates for the
next five years.

Disposable Plastic Products


For the purposes of this study, we are focusing on those plastics market segments
whose products are usually made from commodity plastics such as polyvinyl chloride
(PVC), polystyrene (PS), polypropylene (PP), polyethylene (PE), etc. and fit the
following definition:

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Disposable plastics products are those plastic products that are not
designed to last in use for a long period of time. In many cases, mostly
packaging, food service and agricultural applications, they represent a onetime
only use, followed by disposal. Most applications for disposable plastic products
are found in the following market segment categories:
Consumer and Institutional Products; Disposable food service ware including
cups, dinnerware, tableware, kitchenware, drinking straws; luggage, buttons,
hardhats, handbags, apparel; picnic jugs, ice chests, flower boxes, plant pots;
healthcare, medical products and personal care items including combs, brushes,
medical tubing, blood packs, syringes, IV bags; toys and sporting goods (not vehicles)
including liners, fishing line; laboratory supplies; footwear; signs, displays, credit
cards, placemats, ashtrays, mats.
Packaging: Bottles, jars, vials; drums, pails, cans, barrels, buckets; caps, closures,
food containers excluding disposable cups; coating for all types of packaging; flexible
packaging including bags, household and institutional refuse bags and film; boxes and
baskets; personal care packaging products; pallets, crates, spools, reels, bobbins,
tape, strapping, twine
Adhesives - Inks - Coatings: Adhesives and sealants; paper coating and glazing;
printing ink; paints, varnishes, enamels; core binder, foundry facing.
Other (Industrial/Construction) : Agricultural mulch, blasting media.

MARKET DEMAND FOR RENEWABLE BIO-BASED THERMOPLASTICS


Background
Thermoplastics produced from renewable agricultural and forest resources (biomass),
also called bioplastics, are gaining in importance. For this study, we are investigating
the opportunity for biobased thermoplastics in the disposable plastics market
segments as opposed to engineering thermoplastics or thermoset plastics/ resins
(which have a longer useful like), and will use the terms bioplastics or biobased
thermoplastics interchangeably. In point of fact the biodegradable plastics based on
bio-renewable raw materials are a subset of the Biobased Plastics category. The
bioplastics products we are evaluating may or may not be biodegradable or
compostable according to industry and government test protocols. The following two
paragraphs further define the differences between the bio-based plastics categories.
Biodegradable/compostable
The term biodegradable applied to plastics is used to describe thermoplastic products
that are either biodegradable, compostable or photo degradable. There are now
specific ASTM tests which can be used to classify the plastics ultimate fate in the
environment. (ASTM D-6400-99, Standard for Compostable Plastics)

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In order for a bioplastic to be considered compostable it has to satisfy three criteria


(non-technical):
1) Biodegradation breaks down into carbon dioxide, water and biomass at the
same rate as cellulose
2) Disintegration the plastic is indistinguishable in the compost from other
biomass material after a fixed schedule of time
3) Non Toxic the residual biomass material must not be harmful to animals or
plants in final form
Renewable biobased plastic
The term renewable biobased applied to thermoplastics and thermoset plastic
means that some or all of the raw materials used to make the plastic were sourced
from a biomass that can be cultivated and harvested on a periodic basis.
Since the 1980s environmental activists have been promoting the concept of
degradable plastics along with recycling of trash as the answer to our growing
municipal solid waste disposal and litter problems. While recycling is a generally
accepted practice in most of North America and Europe (reinforced by legislation), the
development and use of degradable bioplastics has been very slow in occurring.
Reasons for this lack of adoption of these materials include:

Cost of the biodegradable polymers (excluding paper) vs. hydrocarbon


polymers,
Lack of physical and thermal properties which meet the end use performance
requirements,
Processing difficulties with the bioplastics (degradable or non-degradable),
Degradable bioplastics contaminate the current plastic recycle waste streams,
Realization that biodegradable plastics do not actually degrade under normal
landfill conditions found today in most municipal landfills, and
Lack of government regulation (in the United States) regarding waste.

Current Outlook
In spite of the reasons mentioned in the preceding paragraph, the current demand
outlook for the use of degradable plastics based on renewable (biomass) raw
materials is more promising due to a number of market, societal and technological
developments that favorably impact demand for biodegradable plastic:

Much higher petrochemical prices leading to higher conventional plastic prices


Improved synthesis plastic technologies utilizing biomass raw materials
Global concern over the rapid depletion of petroleum and natural gas resources
o Manufacturing corporations interest in chemicals and plastics raw
materials derived from renewable resources
A burgeoning global population
Economic growth of developing countries
o Global demand for many consumer items and the accompanying
packaging of these items
Improving disposable incomes

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Greater knowledge and awareness of impact of human activity on the global


environment
Government (Federal, State, and Local) support for use of renewable plastics
made from biobased raw materials to mitigate the growing waste disposal
issues especially in urban areas.

In spite of these favorable factors, the amount of biopolymers being used today in
total is small relative to the total market for thermoplastics. One estimate from
Chemical Market Associates, reported in Plastic News, places the total consumed in
packaging, the largest market for degradable bioplastics, at 90 million pounds
worldwide and 35 million pounds in North America.
According to several industry participants (Frederic Sheer, President of Cereplast, Inc,
and William Riesbeck, Vice President of Sales and Marketing for Ex-Tech Plastics,
Inc.), bioplastics must meet the cost performance requirements of the
petroleum based plastics. Hurdles to overcome include:

Minimum heat deflection


Brittleness
Processing window sensitivity
Polymer cost
Barrier properties

Government Action
The following ordinance went into effect in San Francisco, California:
Food Service Waste Reduction Ordinance
Effective June 1, 2007, the Food Service Waste Reduction Ordinance requires
that San Francisco restaurants and food vendors serving food prepared in San
Francisco no longer use any polystyrene foam, otherwise known as Styrofoam,
as disposable food ware. The ordinance also requires that any disposable food
service ware or to-go containers be compostable or recyclable for food prepared
and served in San Francisco, unless there is no suitable product that is within
15% of the cost of non-compostable or non-recyclable alternatives
Global Market Size
In spite of the cost performance hurdles mentioned in the preceding list, a recent
report by the European Bioplastics association places global production capacity for
bioplastics, including both biodegradable and non-biodegradable plastics) at 576
million lbs. in 2007 growing to 3,300 million lbs. in 2011. This growth will occur as a
shift occurs among the following three categories (excluding synthetic/nonbiodegradable plastics) of plastic materials:

Synthetic/biodegradable
Bio-based/biodegradable
Bio-based/non-biodegradable

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The greatest growth is expected to occur in bio-based/non-biodegradable


materials segment. It is expected that the share of biobased/non-biodegradable
bioplastics will reach 40% of total global capacity or 600 million lbs. in 2011 up from
12% share of 69 million lbs/year in 2007.
A Fredonia 2006 market study reports that bio-based/biodegradable plastics will reach
270 million pounds by 2011. Based on other industry reports and OTI sampling of
suppliers this number appears to be conservative. Another study of the global
biodegradable plastics market by Chemical Market associates states that polylactic
acid polymers (PLA) and blends will grow to 450 million lbs in 2011.
TABLE A
GLOBAL MARKET for BIODEGRADABLE POLYMERS*
Million lbs
APPLICATION

2006

2007

2012

CAGR %

Compost Bags
Loose-fill Packaging
Other Packaging (1)
Miscellaneous (2)

173
152
51
33

242
161
59
54

587
214
48
171

19.4
5.7
23.4
25.0

TOTAL

409

516

1,200

17.3

*Data was generated by BCC Research, Wellesley, Massachusetts, in a report entitled


Biodegradable Polymers. Published in BioPlastics Magazine Edition 01,2008
(1) Includes medical/hygiene products, agricultural, paper coatings, etc.
(2) Unidentified biodegradable polymers

The rapid predicted change in demand growth of biomaterials is due to the increasing
concern over of the earths hydrocarbon reserves, thus the main driving force behind
sustainable plastics in the 21st century is use of annually renewable resources.
Biodegradability is an advantage in those countries that have an industrial composting
infrastructure in place. However, no biopolymer can sustain a position in the market
place without a competitive cost performance profile and for many applications the
biodegradability attribute has no added value.
Additionally development work continues in the development of durable plastic
products which are usually produced by injection molding and thermoforming
processes.

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U.S. MARKET DEMAND FOR BIOPLASTIC PRODUCTS


TABLE B
U.S. PROJECTED DEMAND BY BIOBASED PLASTIC TYPE
Million lbs.

Polylactic acid (PLA)


polyhydroxyalkonates
(PHA, PHB)
Starch-based
bio-Polyester
Cellulosic plastic
Total

2003

2007

2011

07-11
CAGR %

45

150

300

19

<1

110

49.5

50
0
NA
95

100
10
NA
260

180
50
NA
640

16
49%
NA
25%

The demand for the most common bioplastics is estimated based on public
announcements by the companies producing the products, usually in conjunction with
an announcement of increased bioplastic production capacity. The high growth rate
projection of 25% assumes that the capacity brought on stream this year and next is
essentially sold out by 2011.
Polylactic Acid - NatureWorks, the major producer of polylactic acid (PLA) polymers
in the U.S., has publicly stated that they will be starting up their second production
train in the 2nd half of 2008 which should give them the full production capacity
previously announced of 300 million lbs. of PLA produced on two production trains.
Polyhydroxyalkonates - The commercial production of Mirel polyhydroxyalkonates
(PHA) is scheduled to start late in 2008. Telles, a joint venture between Metabolix and
Archer Daniels Midland, announced the production capacity to be 110 million lbs.
Another potential producer of PHA, Meredian Inc. will begin production in a pilot plant
facility in 2009. Capacity is expected to be 30 million lbs. Additional plant capacity of
600 million lbs. of PHA is being planned by Meredian.
Starch Polymers - Starch based polymers will continue to be a large bioplastic
product used by itself in a modified form or blended with another polymer such as PLA
for biodegradability or with a polyolefin, such as polypropylene. Omni Tech estimates
that the growth in demand for starch based plastics will be equal to the growth in PLA
at about 19% per year through 2011.
Bio-Polyester - The demand for hybrid bioplastic polyesters (products with both a
petrochemical component and a biomass component) in the polymer backbone will
also grow. BASF a producer of EcoFlex, a biodegradable polyester, and Ecovio, a
blend of PLA and EcoFlex, expects the market for bioplastics to grow at 20%
annually for the next 5 years. DuPont has developed a family of non-biodegradable
polyesters based on 1,3 propane diol derived from corn syrup.

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Cellulosic Plastic This product category has a long history of use in the plastics
market. The products include cellulose esters, cellophane and rayon. They are derived
mostly from wood pulp which is reacted with caustic followed by a variety of
petrochemical monomers to produce the final products.
Since cellophane is biodegradable, demand for it is again growing in the packaging
film market.
Consumer and Institutional Products Market Demand by End Use
TABLE C
MARKET DEMAND FOR BIO-BASED PLASTICS

Films /Bags
Ring Carriers1
Loose fill/Foam
Food service
Molded
Fiber
Total

20052

20073

20113

117
40
16
7
28
5
213

200
42
17
17
46
11
333

359
51
20
31
123
50
634

07-11
CAGR3
15.8
4
4
16
28
46
17.5

1) Currently ring carriers are made from a photodegradable polyethylene,


it is assumed that this product will switch to a bioplastic that is degradable by 2011.
2) Freedonia Group, Degradable Plastics Demand to 2010
3) Omni Tech estimates, based on industry communications

Demand for bioplastics is accelerating as more supply of all bioplastic types come into
production. This will be especially true in the molded products and film/bags markets.
Plastic ring carriers are used for soft drink bottles, cans and for a variety of individual
serving containers sold as one unit. We assume that the penetration of ring carries is
at saturation and may in fact be losing market share to other unit packaging designs
so that growth will be modest until a biodegradable bioplastic is available at a
competitive price to the photodegradable polyethylene currently used.
Molded products will show the fastest growth driven by the use of PLA blends, the PHA
products and the starch plastic blends with polyolefins.
According to reports in the trade press, PLA fibers are also experiencing rapid growth
in clothing and there is even a small amount of soy protein based fiber being imported
from China also for use in high end clothing.

Packaging

In spite of this growth, the penetration of biodegradable polymers in packaging


applications will still be less than 1% due to the increased production of packaging
resins from the relatively low cost Middle East hydrocarbon raw materials (oil and
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10

natural gas). According to Innovia Films marketing manager, a major issue facing the
introduction of bio-based films in place of petrochemical based films is their current
cost. Additionally, he points out that one of the packaging industries greatest hurdles
for adoption of compostable materials is the lack of curb-side collection and municipal
compositing facilities (a sentiment echoed by Business Development Director of
Heritage Bag, a major producer of biodegradable trash bags).
However, in spite of the hurdles of cost and lack of composting facilities, the growth
experienced by the biodegradable packaging suppliers has been very high.
Within packaging applications the following food packaging areas are receiving
considerable attention:

Fresh-food packaging
Dried snacks and candy
Bakery goods
Water and juice bottles
Meat trays
Coatings for beverage cups
Films and card stock

A recent study from Pira Ltd. estimates that in 2006 biodegradable packaging of fresh
food was the largest end-use food packaging category at 39.6 million lbs. in the US.
The U.S. is the largest single market for biodegradable packaging, where the growth
will continue and is estimated to reach 96.9 million lbs. in 2011.
Large potential new applications for bioplastics and especially degradable bio plastics
include diaper backing, adult incontinence products and landfill covers.
Another bioplastic film application that is showing considerable growth, despite a cost
premium, is the biodegradable plastic bags applications for yard and garden waste
and industrial refuse. One supplier of the industrial biodegradable plastic bags told us
that their production volumes had been doubling each year for the last 3 years, and
was set to double again in 2008. The total bag market, which includes:

Yard & Garden


Industrial Refuse
Kitchen and other

is estimated by Omni Tech to be 150 million lbs. in 2007. It is estimated to be


growing at rate of 15% per year through 2011 to 262 million lbs.
Drivers for increased bioplastic degradable bags will depend on an increase in
municipal composting facilities and consumer education, and a decrease in cost versus
kraft paper and conventional petroleum based plastic bags. Degradable bioplastic
bags eliminate the need to separate bags from their contents at compost sites. Most
of the biodegradable plastic bags are made from starch blended with polylactic acid
(PLA) or a biodegradable polyester.

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Protective packaging is also making use of starch based bioplastics that are
biodegradable. The products are formed as foam sheets or loose-fill peanuts. The
major uses are for general impact protection of valuable items such as electronic
equipment components, glass items and generally fragile consumer products. Because
of their ability to dissipate static charge, they are especially useful in packaging
microchips and electronic product susceptible to damage from static electricity. The
bioplastics are made mostly from modified starch. Since they will degrade in water as
well as compost sites, and are cost competitive with expanded polyethylene foams,
the demand for them in growing. The biggest disposal negative comes from the fact
that they are considered a contaminate in the petroleum based plastic recycle streams
and thus, if not disposed of by composting or dissolution in water will end up in a
standard land fill. Waste disposal of loose fill has become an issue for Wal-mart and
its supplier base according to one starch packaging company that attended a recent
meeting at Wal-mart headquarters. The goal is to eliminate all loose fill including
starch based peanuts in favor of green protective packaging and space fillers.
Because of the largest retailer in the U.S. is urging its supplier base to drop loose fill
we see the demand for these products to be growing at rates of 4-5% annually driven
in large part by purchases over the internet and overseas legislation requiring
packaging to be compostable or biodegradable. Offsetting these drivers are
competition from starch based board stock or planks and inflatable bags.

Food Service

This market segment describes those product used to serve food in a fast-food or
causal dinning setting. It includes cutlery, plates, dishes, cups and bowls. Also
included are paper products that have a water roof coating made from a renewable
plastic such as PLA.

At EXPO 2005 Aichi, Japan more than 10 million eating utensils were used at the
food and beverage facilities in the food courts at the EXPO site. This represented
the first time biodegradable plastics have been used for such a large number of
eating utensils at a single event. The disposable utensils were collected by waste
disposal companies which composted the waste and utensils.
Industry contacts by Omni Tech indicated that food service consumed about 17 million
pounds. This end use is expected to have U.S. growth rate of 16% CAGR through
2011. At that growth rate, the volume of bioplastics consumed in 2011 would be
approximately 31 million lbs. The products used in this application include blends of
starch and polylactic acid (PLA), baggase from sugarcane and PLA,
polyhydroxyalkonates, and PLA alone. As an example, a Hong Kong company named
Roots Biopac, has introduced trays made from sugarcane fibers.

Fibers

Fibers made from the new bioplastics are gaining strength, mostly because they are
based on renewable biomass. NatureWorks, the major PLA manufacturer in the U.S.,
has introduced their fiber grade product call Ingeo which is being used in clothing.
Mazda has introduced a biofabric made of 100% PLA for use in automotive interiors.
DuPonts Bio- PDO, 1,3 propane diol from corn syrup, is being incorporated into the
polymer backbone of a polyester resin named Sorona, which is being promoted by
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12

DuPont into textile and carpet fiber applications. Even though it is only partially a
biobased plastic, it is being accepted as a bioplastic by end users looking for a green
product. This is another example of the biobased but not biodegradable type of
bioplastic that will be reaching the market in large quantities in the future; thus, we
see a fast growth rate (46% CAGR) for this category over the immediate future as
production of these biopolymers increases.

Molded Products: Construction, Other


This category includes most of the products that would be produced by injection
molding, or net shape extrusion. This category is expected to experience very fast
growth according to several bioplastic market studies, due to the following:
General consumer demand for items made from green plastics
Higher end use value because of a longer useful life, even if ultimate disposal
by the end user is within 3 years.
The products made via injection molding or net shape extrusion can be
designed to perform a function that will involve physical stress or strain forces
during their useful life.
This market segment also lends itself to the use of non-degradable bioplastics which
may contain additional components such as inorganic fillers or petroleum based
thermoplastic to impart higher performance properties, e.g. higher heat distortion,
impact strength or modulus, to meet more demanding applications.
Horticulture/Construction applications in which the product is molded or shaped
under pressure and at elevated temperature in the same manner and is intended for
temporary use might include:

Erosion control timbers or stakes


Concrete forms imbedded in the ground
Simulated decorative wood products for indoor use
Cork board
Sub-flooring and finished parquet flooring tiles
Disposable trash containers
Particle board

Horticultural containers for square foot gardening


Animal feed containers
Large molded pails

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13

TABLE D
PRICING of Selected Thermoplastic and Bioplastic Polymers
April, 2008
Polymer Type
Polyethylene
Polypropylene
Polystyrene
Polyester
Polylactic acid
Starch foam
1

Price1
(Cents/lb.)
86-104
92-98
85-95
80-85
95-110
65-75

Comments
(>20 million lbs)
HD LD grades volumes.
Homopolymer
General purpose
PET bottle grade
Very volume dependent

various industry sources and trade publications

The pricing of starch based plastic foams and polylactic acid are competitive with
estimated pricing of various polyolefin products. Polyhydroxyalkonates are being
quoted at $2.50/pound or higher, which would place them in the engineering plastics
category with polycarbonate and other high performance plastics. Blends of starch
with modified polypropylene have been reported to be cost competitive to
polypropylene homopolymer.
CONCLUSIONS and RECOMMENDATIONS

The bioplastics markets, both bioplastic biodegradable and bioplastic nonbiodegradable, are the fastest growing product type categories of plastics
globally with an expected demand in 2012 of over a billion pounds.

Consumption of bioplastics, including biodegradable and non-biodegradable


thermoplastics made from biomass, will grow at about a 19% per rate
through 2011 reaching a projected consumption in the U.S. of over 600
million pounds.

Currently, of the product types, the biodegradable segment of bioplastics is


the largest segment but is projected to be displaced by the nonbiodegradable bioplastics group of products, which may or may not be 100%
derived from biomass.

Starch based polymers will continue to be a large bioplastic product used by


itself in a modified form or blended with another polymer such as PLA for
biodegradability or with a polyolefin, such as polypropylene. Omni Tech
estimates that the growth in demand for starch based plastics will be about
19% per year through 2011 reaching 180 million lbs.

OMNI TECH INTERNATIONAL, LTD.

14

Polylactic Acid polymer (PLA) demand is growing rapidly in both packaging


and fiber applications and will be the largest bioplastic product produced in
the U.S. by 2011 at over 300 million pounds. Due to blending with other
materials such as starch and polyesters, PLA consumption will be higher.

Among the bioplastic applications, four have standout growth opportunities,


based on interviews with Industry participants:
o
o
o
o

Biodegradable bags/films,
Biodegradable plastic foam cushioning blocks,
Bioplastic fibers, degradable and non-degradable
Bioplastic molded products, degradable and non-degradable

Several large retailers such as Wal-Mart and Target are actively requesting
that their product suppliers use as much biobased packaging as possible
while still protecting the products during shipping.

Biodegradable bioplastics demand, while growing at double digits, is also


hampered in the U.S. by several challenges:
o
o
o
o
o

Small number of commercial composting facilities,


Higher cost of the bioproducts versus petroleum based plastics,
Contamination of plastics recycling streams,
Concern over diversion of grain crops to industrial uses and fuel,
Biomass raw materials harvested from genetically modified organism
(GMO) crops.

Past research and development work to develop a bioplastic using soy


protein as a component has not as yet been commercially successful, but
new driving forces and biopolymer technology have improved the
opportunities for soy protein containing bioplastic to be developed.

RECOMMENDATIONS

Significant development work is now underway, supported by USB New Uses


Committee, at several universities with soy protein products (meal, flour,
concentrate, and isolate) in combination with PLA and other biodegradable
plastics. Support of these efforts should be continued.

Additional projects using soy protein products combined with nonbiodegradable biomass plastics and petroleum based plastics and targeted
at specific large volume applications in fibers, molded products and films
should be supported.

Projects that focus on the processing/conversion of soy protein products


(meal, flour, concentrate) into water soluble film formers are also needed.

OMNI TECH INTERNATIONAL, LTD.

15

APPENDIX

COMMERCIAL RENEWABLE/BIO-DEGRADABLE THERMOPLASTIC


PRODUCTS
The following tables describe the currently known degradable and non- degradable
commercial bio-thermoplastic polymers. Not all are based on 100% renewable
biomass.

CHART A
POLYMERS FROM RENEWABLE RESOURCES

Polymers
from renewable
resources

from
plants

from
microorganisms

starch,
starch
derivatives

polylactic acid
(PLA)

cellulose,
cellulose
derivatives

polyhydroxyalkanoates
(PHB, PHA)

from
animals
chitin,
chitosan
proteins, e.g.
casein, gelatin

Thermoplastic Processing
lignin

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16

CHART B
BIO-BASED FEEDSTOCKS

BIO-BASED FEEDSTOCKS
Annually Renewable Bio FeedStocks

Cellulosics &
Lignocellulosics

Products:
Cellulose
(Cellophane)
Cellulose
Derivatives
(CA, CAB)
Engineered
Wood Products

Starches

Examples:
Corn
Potato
Sugar cane
Products:
Thermoplastic
Starch
Starch Foams
Starch Graft
Copolymers &
Reactive

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Other
Polysaccharides

Examples:
Pectin
Chitin
Levan
Pullulan

Fats & Oils

Examples:
Soybean
Lesquerella
Rapeseed
Products:
Biodiesel
Lubricants
Polyols Urethanes
Plasticizers/Process
Aids
Solvents
Unsaturated
Polyester Resins

17

Proteins

Examples:
Zein
Soy Protein

Biodegradable Thermoplastics

The plastics listed in table D are commercially available to converters/fabricators of


plastic products
TABLE E

BIODEGRADABLE / RENEWABLE PLASTICS


Resin Producers
Arkema
BASF

Trade Name
Rilsan nylon 11
EcoFlex

Cereplast

Hybrid Resins

DaniMer Scientific
DuPont

Seluma
BIOMAX,(35%)
/SORONA EP

Innovia Films

Cerenol polyol
Selar VP (40%)
Hytrel RS (2550%)
NatureFlex

Polymer Family

Biodegrade
na

co-polyester polybutylene
succinate/ terephthalate
modified Starch+ PLA, starchmodified polyolefins
polyester
polyesters (polytrimethylene
terephthalate )/1,3
propanediol(PDO)

yes

cellophane

yes

polybutylene succinate (PBS)


starch
polylactic acid

na
yes

starch polymer, copolyester

yes

Meredian

GS Pla
ECO-Foam
NatureWorks
PLA / Ingeo
MATER-BI,
Eastar Bio Ultra
Nodax H

poly(3-hydroxybutrate-co-3hydroxyhexanoate (PHBH))

Soy Works Corp

SoyPlus

soy protein

Telles (ADMMetabolix jv)

Mirel

polyhydroxyalkonate (PHA)

films, bottles,
rigid
packaging
licenses other
producers
yes

Mitsubishi Chemical
National Starch
NatureWorks(Cargill)
Novamont

yes

STARCH POLYMERS (modified polysaccharides)


These polymers have been under development for some time by Novamont. They
have licensed National Starch to be the supplier of resins and technology in North
America. The product family is composed of polysaccharides from different sources
with various modifications applied. Thus, Novamont offers a variety of products with
a range of physical properties. The polymers are processable via injection molding,
extrusion and thermoforming and are foamable with water.

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18

Applications for injection molded Mater-Bi include cutlery, pencil sharpeners, rulers,
cartridges, toys, plant pots and toys for pets, using a starch-based material obtained
from cellulose. Combs made of Mater-Bi have the additional advantage of being
anti-static, eliminating accumulation of electrical charge on conventional combs.
Mater-Bi loose fillers are predominantly made of starch, and are expanded using
water. It is recommended for packaging pharmaceutical products, laboratory
equipment, consumer goods and mail order goods.
They are purported to be completely biodegradable and water-soluble, resilient and
anti-static, and have excellent shock-absorbing, elastic properties.
Wave by Mater-Bi is starch-based, and is expanded using water, extruded into
sheets and then assembled into blocks that can be cut into any shape. Wave by
Mater-Bi has a robust and resilient closed-cell structure; sheets and blocks are
available in different sizes, with densities from 30 to 400 kg/m3.
TABLE F

NOVAMONTS STARCH POLYMERS


METHOD

UNIT OF
MEASURE

MATER-BI

PP

PS

ASTM 1238
ASTM D638

g/10 min
MPa

6-30
15-35

0.9-9
25-37

19-24
31-40

ASTM D638

20-150

Young's modulus (modulus of elasticity)


Linear shrinkage

ASTM D638
ASTM D955

MPa
%

600-5000
0.08-1

40-400
10001600

1.2-1.6
29003200
0.1-0.6

MATER-BI for Extrusion


MFI
Breaking load
Breaking extension
Young's modulus

ASTM D1238
ASTM D822
ASTM D822
ASTM D638

g/10 min
MPa
%
MPa

8-10
18
130
1400

MATER-BI for Films


MFI
Breaking load
Breaking extension
Young's modulus
Start of Tearing
- Propagation

ASTM D1238
ASTM D882
ASTM D882
ASTM D638
ASTM D1938

2-4
20-50
200-600
100-600
20-120
20-120

LDPE
0,1-6
20-30
150-600
150-300
70
70

Water Vapor Permeability

ASTM E96

g/10 min
MPa
%
MPa
N/mm
N/mm
gr 30mm/m2
24H

250-1000

15

TEST
MATER-BI for INJECTION MOLDING
MFI
Breaking load (tensile strength at break)
Breaking extension
(% elongation at break)

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19

POLYLACTIC ACID (PLA)


This polymer based on corn is currently produced in the North America by NatureWorks a joint
venture company co-owned by Cargill Inc. and Teijin Ltd. of Japan. The product property profile is
similar to polystyrene and polyethylene terephthalate.
TABLE G
POLYLACTIC ACID (PLS)

PROPERTIES
Physical properties
Melt flow rate (g/10 min)
Density (g/cm3)
Haze
Amorphous grades
Yellowness index
Water absorption
Mechanical properties
Tensile strength at yield
(MPa)
Elongation at yield (%)
Flexural Modulus (MPa)
Youngs Modulus (MPa)
Notch Izod (KJ/M2)

NatureWorks
PLA

1.24
2.2
transparent
20-60

Polystyrene
General Purpose

1.04

Polyethylene
terephthalate

1.3-1.4

transparent
0.16

53

36-52

55-75

10-100
350-450

1.0-2.2
3,150-3,240
2800-3100

50-15-

Thermal Properties
HDT (C)
Melt Temperature Tm
Glass Transition
Temperature Tg
Heat Transfer Coefficient
(W/mK)

44-55, 135
(crystalline)
140-152 C
56.7-57.9 C

87-97C
260 C
75 C
0.24

In addition to being biodegradable, PLA has other properties such as high optical
clarity, good mechanical properties, gas and water barrier properties.
Technical hurdles for PLA include a low glass transition temperature of 60 C which
might be improved if PLA were composed of both D- and L- lactic acid. This
compositional change would probably increase the heat resistance as high as 175 C.
Additionally, PLA needs better impact strength, and improved gas barrier properties.
Currently, PLA is in short supply, It is estimated by PURAC Biochem that with
improvements in PLA supply and quality that the market can grow to over several
hundred thousand tons in 10 years.

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20

POLYHYDROXY ALKANOATES
Polyhydroxy alkanoates is the generic term for a family of polyester polymers. Specific
members include: poly 3-hydroxybutyrate co-4- hydroxybutyrate, polydroxy
butyrate- co-3- hydroxyvalerate. Metabolix is the major developer of technology for
producing polyhydroxyalkonates from bacteria and corn sugar. They have formed a JV
with Archer Daniels Midland to produce the biodegradable plastics called Mirel.
Together they are building a production plant in Iowa that will be on stream in late
2008.
Metabolixs Mirel family of plastics range in properties from rigid to tough and highly
elastomeric to soft and tacky. They can be made as resins or aqueous dispersions with
excellent film forming characteristics. Robust in use yet biodegradable, they offer a
renewable and environmentally friendly alternative in many applications now served
by synthetic plastics, including fiber, film, molded goods, extruded products,
adhesives and coatings.
Applications to date include holiday gift cards sold by Target. According to Metabolix,
potential applications include single use (disposable) items such as coffee cups,
dinnerware, containers for cosmetics, food and detergent. Agricultural applications
include degradable plant pots, stakes, erosion control netting and mulch film. The
companies are expecting to charge a premium for the plastic. Receiving a premium for
low value items such as disposable dinnerware or horticultural applications would be
very unusual except in those political geographies that are banning non-degradable
plastic items.
POLYESTERS
TABLE H
ECOFLEX BIODEGRADABLE PLASTIC WITH HIGH FUNCTIONALITY vs LDPE

Typical properties of Ecoflex F and LDPE


PROPERTY

UNIT

TEST METHOD

ECOFLEX F

LDPE

Density

g/cm3

ISO 1183

1.25-1.27

0.922-0.925

ISO 1183

2.5-4.5

0.8-1.2

Melt viscosity
MVR 190 C, 2.16
kg

ml/10min

Melt point

DSC

110-120

111

Shore D hardness

ISO 868

32

48

Vicat VST A/50

ISO 806

80

96

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21

Typical film properties of Ecoflex F and LDPE at 50 um thickness


PROPERTY

UNIT

TEST METHOD

ECOFLEX F

LDPE

Transparency

ASTM D 1003

82

89

N/mm2
N/mm2
%

ISO 527
ISO 527
ISO 527

35/44
36/45
560/710

26/20
300/600

J/mm

DIN 53373

24

5.5

ml/(m2d bar)
g/(m2d)

DIN 53380
DIN 53122

1400
170

2900
1.7

Tensile strength
Tensile stress at
break
Tensile strain at
break
Fracture energy
(Dynatest)
Transmission
rates:
Oxygen
Water vapor

Water-vapor transmission (WVT) of Ecoflex F

Film thickness um

WVT g/m2 d 23
C,
85% r.h 100 um

20
15
32
12

85
35
83
48

Ecoflex F
Ecoflex F + wax
Ecoflex F + talc
Ecoflex F + talc,
1:4

Tensile strain at
break in
extrusion direction
N/mm2
41
39
25
70

The Ecoflex polyester family was developed as a petrochemical biodegradable


plastic. Recently, BASF has modified Ecoflex so that it could be blended with up to
50% polylactic acid polymers and thus claim a biodegradable plastic having a high
biobased content. The new polymer family name is Ecovio.
The concept of blending of a petrochemical polymer with a biobased polymer to
improve properties of the biobased component of the new blended plastic is becoming
more common. Other examples of this product trend are the polymer families
Sorona Polymer and Cerenol Polymers promoted by DuPont that contain 20-37%
biobased component, Bio-PDO (1,3 propane diol).
Polyamides
Arkema is planning to launch a complete range of engineering thermoplastic
elastomers trade named Pebax RNew containing from 20-90% renewable content,
primarily castor oil.

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22

Cellulose Polymers
Cellulosic polymers are produced by chemical modification of natural cellulose. The
main representatives are cellophane, cellulose acetate and regenerated cellulose for
fibers, e.g. Viscose rayon. Both cellulose and starch have glucose as their basic
monomer unit but the polymers differ in the linkage between the glucose units and in
the configuration of their polymer chains. Celluloses configuration provides an
opportunity to form stronger hydrogen bonds as well as a close interaction with other
polymeric structures such as lignin, pectin, hemicelluloses and proteins. Because of
this mixed polymer morphology, cellulose is more resistant to hydrolysis than is
starch.

NatureFlex Cellophane
NatureFlex films are based on renewable resources (wood-pulp from managed
plantations) and use novel heat-seal resins on each side. The films are static free
and offer a super wide heat-seal range for outstanding machine performance. The
films offer good gas barrier properties and the coatings can be tailored to provide
varying degrees of moisture barrier, depending on the needs of the wrapped product.
Soy Protein Thermoplastics
Although no bioplastics currently contain soy protein, several projects supported by
the United Soybean Board have as their objective the development of a soy protein
containing bioplastic or water soluble polymer. The projects are:

TABLE I
CURRENT USB SOY PROTEIN PROJECTS
USB Project
Number
7426

Organization
Univ. of Wisconsin Madison

8425

Ford Motor Research

8476

Washington State
University
Battelle Memorial Inst.

8437
8457
8459

New Jersey Institute


of Technology
Washington State
University

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Description
Development of Soy Protein blended
with modified starch to form a
biodegradable plastic
Soy Meal as reactive filler in
elastomeric matrices
Development of Soy Protein
biodegradable Plastics
Soy protein polymer as super
absorbent water soluble polymer
Soy Protein fiber development
Soy Protein fiber spinning

23

PART 2
AGRICULTURAL FILMS
STEPHEN G. WILDES

AG FILMS MARKET SUMMARY


Since the last update of this market study in 2001, world use of agricultural films,
especially mulch films, has grown significantly. Mulch films will be the focus of this study
since biodegradable mulch films appears to present the greatest market opportunity for
soybean chemistry.
The world mulch film market has grown but not in the U.S. Mulch film use will continue to
grow with increasing demand for more row crop production on limited arable land. U.S.
acreage mulched has remained stable but film volume demand has declined due to
continued film downgauging and the practice of double cropping. U.S. mulch films are
primarily blends of linear low and low density polyethylene (LL/LDPE) and high density
polyethylene (HDPE).
Photodegradable film use is gone and no commercially proven biodegradable mulch films
are yet available in the U.S. The unmet market demand for these films is, however, strong
because mulch film disposal costs are escalating and the problem remains unresolved.
Two new biodegradable mulch films have been developed using renewable feedstocks
that are in the early stages of market introduction.
Soybean chemistry, probably in the form of soy protein, in biodegradable mulch films is
technically feasible. However, no current research work utilizing soy is known. An
observation from the 2000 study is still valid Such an undertaking would need to be a
global effort since the U.S. mulch film market is only 5% of the global area mulched.

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24

MULCH FILM MARKET WHATS CHANGED SINCE 2000


OVERVIEW
1.
2.

World Market Major growth


U.S. Market Declined but is now static
Film downgauging
Escalating costs of row crop farming
U.S. row crop production lost to Mexico and Latin America
3. Number of U.S. mulch film manufacturers down. Increasing imports.
4. Mulch film product mix:

LDPE
LL/LDPE Blends
HDPE

2000
40%
10%
50%

2007
0%
60%
40%

5. Film disposal Still an unresolved issue Recovery cost escalation, reduce landfill
availability, very little recycling
6. Biodegradable mulch films
Market need higher than ever
None commercially available in U.S.
Two new films being introduced
o Novamont, Novara, Italy Mater Bi based on polymerized corn
starch
o Telles (ADM/Metabolix JV), Lowell, MA Mirel based on corn
fructose

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25

AGRICULTURAL FILM MARKET - SITUATION ANALYSIS


World demand for agricultural films has grown considerably because of an essential need
to improve crop yields on limited arable land that is suitable for cultivation. Additional
pressures are challenging the agriculture industry:
Scarce irrigation water
Trade subsidy threats
Demand for ag product sustainability
Plastic films are making a significant contribution to increase crop output in the form of
mulch film, greenhouse covers and silage bags with total world demand reaching 7.8
billion pounds in 2007. Demand growth has been especially strong in China, Eastern
Europe and Latin America. China represents 60% of world ag film demand.
MULCH FILM MARKET
World mulch film demand has grown strongly from 1.2 billion pounds to 3.2 billion
pounds annually with the countries mentioned above leading the way.
U.S. mulch film demand, meanwhile, has decreased in film volume usage from the 90
million pounds reported in 1999 to 60 million pounds in 2007. The acreage mulched has
been about the same while film use declined due to the downgauging of mulch film
thickness. This was accomplished by the growing use of blends of low and linear low
density polyethylene film resins. These films now occupy 60 to 70% of the U.S. mulch film
market.
U.S. row crop farmers in large mulching states such as Florida, California and Georgia are
experiencing increasing farming costs from higher film, pesticide and fertilizer prices that
raises the difficulty of competing with other countries especially Mexico and Central
America.

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26

AGRICULTURAL FILMS - WORLD DEMAND 2007

GLOBAL AGRICULTURAL CHALLENGES

Food security
- Populations are growing and individual calorie intake rising
Arable farm land in cultivation is static
Improved yields are essential
- In 1950 one hectare fed 2 people
- In 1995 one hectare fed 4 people
- In 2025 one hectare will feed 5 people
Water scarcity
Move to reduce trade subsidies

PLASTICS AND AGRICULTURE - THE STORY SO FAR

Plastics have made a substantial contribution to the increased production in


agricultural output in the last 50 years
- Films
Greenhouse
Mulch
Silage
- Pipes
- Containers
Global plastics demand for agricultural uses in the film area was 7.8 billion pounds in
2007

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27

CHART C

World Demand 2007 - Ag Films


Asia
61%

Japan
1%

Latin America
5%
NAFTA
5%

Europe
20%

Rest of World
8%
Total demand 7.8 billion pounds

CHART D

World Demand 2007 - Ag Films

Silage (1.5)
19%
Mulch (3.2)
41%

Greenhouse (3.1)
40%
Total demand 7.8 billion pounds

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28

CHART E

World Demand 2007 - Mulch Films


Europe (640)
20%

NAFTA (160)
5%
Latin America (160)
5%

Rest of World (250)


8%
Japan (30)
1%
Asia (1,950)
61%

Total demand 3,200 million pounds

TABLE J
WORLD MULCH FILM MARKET
Million Pounds
AREA

1999

North America
U.S.
Mexico
Latin America
Europe
Spain
Italy
Germany
France
Others
E. Europe
China
Rest of World
TOTALS

150

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2007
160
90
60

90
410

60
100
160
640
70
60
50
50
100
310

850
200
1,220

1,950
290
3,200

29

MULCH FILM PRODUCTS (U.S.)


Mulch film use in the U.S. since year 2000 has changed markedly. At that time, LDPE film
was dominant, LL/LDPE blends were coming in to the market but downgauged HDPE film
was growing fastest. In 2007, the market dynamics have changed radically. LDPE film is
no longer used, HDPE film use is about 40% of the market and LL/LDPE blends are
dominant at 60% of the market and growing.
Specialty films embossed, barrier, metalized and coextruded films are widely used while
photodegradable films have disappeared. There are still no commercially available
biodegradable mulch films although interest and demand potential is high because of
escalating film disposal costs.
Fumigation films are blown rather than extruded resin blends that are heavier gauge -1.25
mils - and wider - 13 feet vs. 5.3 feet - mulch films. There is no need for in-situ
biodegradability since the primary function is as a barrier film with a short 1-4 day use life.
Fumigation appears to offer little opportunity for soy protein-based biodegradable films.
COMMERCIAL MULCH FILMS

LD/LLDPE Blends:
Gauge 0.9 - 1.0 mils
Width 64
Roll 4,000 ft, 102 lbs/roll
Pricing - $1.25 - $1.30/lb, $127/roll
HDPE:
Gauge 0.6 - 0.7 mils
Width 64
Roll 7,000 ft, 107 lbs/roll
Pricing - $1.50 - $1.70/lb, $180/roll
Specialty Films:
Embossed, barrier, metalized and coextruded versions of above films at premium
prices. Film colors black, white, clear, silver, red, blue, green, yellow

Typical Film use:


1 roll/acre, 200 lbs. of film/acre
LL/LDPE Blends 240 lbs/acre
HDPE 170 lbs/acre
Mulch film costs per acre have increased from $80/acre to $170/acre since 2000.

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30

U.S. MULCH FILMS


TABLE K
PRODUCT
LL/LDPE Blends
HDPE
LDPE
Barrier LLDPE/HDPE
Metalized LLDPE/HDPE
Embossed LLDPE/HDPE

GAUGE (mils)
2000
1.0
0.7
1.25

2007
0.9-1.0
0.6-0.7

PRICE/LB
2000
$0.75
$1.00
$0.55

2007
$1.25-1.30
$1.50-1.80

MARKET
SHARE
2000
2007
10%
60%
50%
40%
40%
0%

$1.60-2.10
$1.60-2.85
$1.25-1.80

The use of LD/LLDPE blend mulch film is growing and becoming dominant. The use of
LLDPE imparts additional stretch and strength to the film. HDPE film is stronger than
LDPE and can be downgauged further but it does not stretch. Mulch film is typically
stretched when applied in the field. Too weak a film will tear under the tension necessary
for its application.

MULCH FILM MANUFACTURERS (U.S.)


TABLE L
2000
LDPE
LD/LLDPE BLENDS

HDPE

Clarke Ag Plastics Greenwood, VA


First Film Extruding Des Plaines, IL
Green-Tek Inc. Edgerton, WI
Holland Transplanter Holland, MI
Huntsman Packaging Newport News, VA
Ken-Bar Inc. Reading, MA
Sunoco Products Co. Hartsville, SC
Treessentials Co. Mendota Heights, MN
Tyco Plastics City of Industry, CA

Sunoco Products - Hartsville, SC

2007
LD/LLDPE BLENDS
Pliant Corp. Chicago, IL
Olefinas Guatemala
Ginegar Israel
TRM Los Angeles, CA
EPA Mexico
Climagro Montreal, Canada
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HDPE
Hilex Poly Co. Hartsville, SC
(purchased Sunoco products)

31

MULCH FILM PERFORMANCE REQUIREMENTS


Physical property performance for any new film must meet the requirements described
below and be thoroughly proven in field testing. Biodegradable and photodegradable films
have been introduced over the years and been unsuccessful making the farmer skeptical
and wary of new product claims.

Gauge thickness 1.25 mils or less


High elasticity to allow field stretching
Toughness good tear resistance
Chemically resistant to pesticides
Ultra-violet (UV) stable to last the growing season
Film fabrication capability
- On existing high speed casting or extrusion equipment
- Coextrusion, embossing, metalizing
- Colors - black, white, clear, silver, red, blue, green, yellow
Biodegradability - Predictable biodegradation rates of 90 days and 180 days. Two
defined rates for different row crops.
Cost A significant film cost premium of 50% or more is feasible if film removal and
disposal can be eliminated
New film quality standards The NF Mark

This is a new European voluntary industrial quality standard that includes plastic films for
agricultural use. It covers product specifications for mulching and silage films and includes
ISO 9002 standards.

ECONOMICS
The cost of row crop farming has increased significantly since 2000. Price escalation of ag
films, pesticides and fertilizers has occurred due to petrochemical feedstock price inflation
crude oil and natural gas. Prices of mulch films have risen 70% since 2000. Typical
mulching costs have increased from $130 per acre to $200 per acre since 2000.
Mulch film disposal costs for field collection (labor), trucking and disposal (landfill tipping
fees) have, concurrently, increased from $50 to $100 per acre on an average depending
on location.
Film disposal remains an unresolved and costly problem. Landfilling waste film is a
declining alternative as landfill space becomes less available. Film recycling has been
attempted but it was not cost-effective. In Florida, the largest mulch film user state, film is
typically burned in the field. This practice will not be allowed much longer.

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32

The obvious unmet market need is for an effective biodegradable mulch film that will meet
standard performance requirements at a price not to exceed film disposal costs. To date,
no commercial biodegradable mulch film is available in the U.S. However, two companies
have been developing these films and one of them is being marketed in Italy and eastern
Canada. These films will be described later in this study in the State of the Art section.
MARKET OUTLOOK
The use of plastic mulch films will continue to grow globally, especially in the intensive
cultivation of high value row crops such as tomatoes, strawberries and tobacco. External
conditions will continue to challenge the farmer and accelerate the use of mulch films.
FARMER CHALLENGES

Irrigation water scarcity


Increasing food demand by a growing world population
Limited arable land
A shortage of plant nutrients requiring more efficient fertilizers
Increasing environmental pressure on pesticide use
Mulch film disposal, a growing and costly problem

Demand for cost-effective biodegradable mulch films would be strong across most world
row crop markets. Farmers would probably be willing to pay a significant price premium
for biodegradable films to eliminate the film disposal problem. Biodegradable films could
reinvigorate the U.S. market and help make the American farmer more competitive.
A successful biodegradable mulch film could also create additional market opportunities
beyond fruits, vegetables and tobacco.

Trash and yard waste bags


Forestry seedlings
Cotton

OMNI TECH INTERNATIONAL, LTD.

33

STATE OF THE ART BIODEGRADABLE MULCH FILMS


Although no commercial biodegradable mulch films are yet available in the U.S., a new
Novamont product is being marketed in Italy and has recently been introduced in Canada.
A second film has been developed by Metabolix Inc. and will be marketed by Telles of
Lowell, Massachusetts, a joint venture of ADM and Metabolix Inc.
Novamont S.p.A., Novara, Italy
Mater - Bi

Polymerized corn starch modified with sunflower and rapeseed lipids

Italian plant 132 million pound capacity onstream 2007

Sales mostly in Italy but introduced in Canada by Dubois Agrinovation, Montreal


(BioTeloAgni)

Dubois having difficulty getting product approval in the U.S.

Successfully field tested by Cornell University

Two grades available for 4 and 6 month biodegradation

Pricing 2-2.5 times LL/LDPE blend films $2.60-$3.00 per pound

Telles, Lowell, MA
Metabolix, Inc. & ADM Joint Venture
Mirel

Made from corn fructose and vegetable oils

Clinton, Iowa resin plant 110 million pounds start up scheduled for late 2008

Resin samples from pilot plant available for evaluation by fabricators

Pricing Expected to be 2.5 to 3 times LL/LDPE blend films - $3.00 - $3.50 per pound

Polylactic acid (PLA) Manufactures Nature Works (Cargill) and Purac.


Ag films have and can be produced but are brittle, do not stretch well and require
performance additives that make them cost prohibitive.
Additional research on biodegradable mulch films is active by various chemical firms and
universities but most approaches involve modified polyester films that are said to perform
marginally.

OMNI TECH INTERNATIONAL, LTD.

34

MARKET OPPORTUNITY
U.S. market is 60 million pounds, 5% of a global market of 3.2 billion pounds. This market
has stabilized after declining due to film downgauging and the loss of some crop farming to
Mexico. The U.S. market is poised to resume growth with the availability of higher
performance mulch films. World market demand, meanwhile, continues to increase
significantly. While some countries could not afford premium priced films, Europe
definitely could.
BIODEGRADABLE MULCH FILMS
Two new biodegradable mulch films Novamonts MaterBi and Telles Mirel have
been developed and are in early market introduction. They are based on corn starch and
corn fructose respectively as described in the State of the Art section of this report.
Mention has been made by these companies that each film resins contains vegetable
oils. This will be investigated further to determine if soybean oil and derivatives are and
can be utilized.
Development of soy protein-based films will require considerable cost and time. Earlier
research at Iowa State University demonstrated that such films are feasible. An invitation
for development was presented to the American Society for Plasticulture at their recent
Congress on March 9, 2008.
RECOMMENDATIONS
Omni Tech International, Ltd. recommends that the USB New Uses Committee consider
funding support for future projects involving the development of soy-based biodegradable
agricultural mulch films. USB funding support was not recommended in the 2000 market
study update. However, demand for biodegradable mulch films has increased
considerably since then and the market will now support premium priced biodegradable
films if they perform well and eliminate the need for mulch film collection and disposal. An
RFP (Request for Proposal) focused on soy protein-based biodegradable mulch films sent
to key universities and mulch film manufacturers could stimulate R&D efforts.

OMNI TECH INTERNATIONAL, LTD.

35


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polymerization (polymer)

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(UV) (Ketone group)
(Free radical)

2. (Mechanical Degradation)

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(hydroperoxide, ROOH)
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PHB
: http://en.wikipedia.org/wiki/Polyhydroxybutyrate

http://web.mst.edu/~microbio/BIO221_2005/A_eutrophus.html
http://www.rsc.org/education/teachers/learnnet/inspirational/resources/3.1.11.pdf
http://www2.mtec.or.th/th/special/biodegradable_plastic/type_de_plas.html
http://opac.tistr.or.th/Multimedia/STJN/4901/4901-1.pdf
http://dspace.library.drexel.edu/bitstream/1860/2878/1/Singh_Vishesh.pdf
http://en.wikipedia.org/wiki/Bioplastic

Bioplastics
March 9th, 2011 by pornpan 59 views

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(Patent Mapping) (Bioplastics)


Delphion Bioplastics 9 2554 135 5 US,
EP, JP, WO DE Text Mining Vantage Point

1. (Application Countries) Bioplastics 1 (US) 39


(World Intellectual Property Organization : WIPO) 29
2. (Filed of year) 1 2008 30 2006 14
3. (Inventors) 1 Della Valle, Francesco 19 Romeo,
Aurelio 18
4. (Inventor Country) 1 (US) 52
8
5. (IPC-R) Bioplastics A61K 8/72 A61L 27/00
19
A61K 8/72 (Section A Human Necessities, A61K 8/72 Containing organic macromolecular compounds)
A61L 27/00 (Section A Human Necessities, A61L 27/00 Materials for Prostheses or for Coating Prostheses)
6. / (Patent Assignees) 1 FIDIA S.P.A. 17 Bioplastic Polymers
and Composites LLC. 8
7. (Title (NLP) Phrase) Method Bioplastic
8. Bioplastics 1 Bioplastics, Monomers Thereof, and Processes for the Preparation
Thereof from Agricultural Feedstocs Reagents and Methods for Cyanobacterial Production of Bioplastics and Biomaterials
6

- Methods and Apparatus for Manufacturing Plasma Based Plastics and Bioplastics Produced Therefrom
- Novel Triglycerides and Method of Preparation Thereof
- Transgenic Cotton Plants Producing Heterologous Bioplasic
- Esters of Alginic Acid

- Biodiesel Additive and Method of Preparation Thereof


- Manufacturing Method for Seamless Manmade Leather Ball
- Polymeric Bioplastics
9. (Cluster) Bioplastics
1: possess, salt, total, cosmetic, pharmaceutical, interest, surgery, association, hyaluronic acid, include 16
2: problem, solve, provide, excellent, material, bioplastic, like, form, plastic, constitute 14
3: relate, preparation, agricultural feedstocks, feedstocks, flax, tallow, present invention, monomers, invention, process 12

4: describe, preparation, base, cleavage, cleaved end, coupling, double bond, fatty acid chain, intermediate for polymers, natural oil
12
5: production, biomass, process, bioplastics, bacterial, gasify, hydrogen, organic material, recycle, suit 11
6: field, extract, ex, medicine, high, invention, example, min, dwg, place 11
7: encode, produce, gene, select, group, consist, coding sequence, construct, genetic construct, genome 10
8: plasma, use, apparatus, embodiment, produce, useful, manufacturing, assess, biological response modifier, concentration 10

9: combination, additive, comprise, contain, make, increase, biopolymer, coat, extrusion, inorganic particle 9
10: similar, form, include, composition, cured silane-modified oil, degree of unsaturation, disclosure, facilitate, fat, free radical
initiator 6
(Unclustered Publications) 24
(Patent Assignees X IPC)
Bioplastics
(IPC) A61K 8/72 A61L 27/00
Cross Correlation Map (Inventors) (IPC-R)
2 1 6 2 3 Bioplastics /
0.25-0.75 1



90


1 450

1 100 / .. 2550 . 85,000
/ 21 1,800 /
1.78 / 650 /




1




Ref : , ,






Polylactic Acid PLA Polyhydroxyalcanoates PHAs

2
poly (butylene adipate-co-terephthalate) polymer
BASF 2

(National Roadmap for the Biodegradable Plastics Industry Development)


5 (.. 2551-2555)

""
""

(PLA :
Polylacticacid) (Terramac)

PLA
(polymerization)
(PET) (PE)
(NatureWorks LLC)
PLA
""

120 200


PET
(NEC) 701 (Forma N701
iECO)
(Vaio)
(PS) 3 (MP3)

10
1% (Hiroyuki Mori)
2000-2002 (minidisc)
2002-2003 90 %
(AIBO)
2004-2006
(Dummy card) (IC card)


(.)
10 2551 (TOP TEN
INNOVATIVE BUSINESS 2008)



(bioplastics hub)

10



.

1. (Biotechnology)
(health biotechnology)
2. (agri-biotechnology) (Natural Products)

(nutraceutical
& functional food) (pharmaceutical & cosmeceutical)
(novel food)


""


(polymer) poly
mer polymer
polymer monomer monomeric
unit polymer
polymer
(
Dacron )

1.

2.

3.





plasticizers ( )



hydrophobic


(reuse) (recycle) (reduce)

1.

2.








(feed monomer)

(final plastic
finished product )

1.

2.

3.



cellulose collagen casein polyesters




monomer lactic
polymerization lactic polymer
polylactic acid (PLA)




polylactic acid (PLA)

polylactic acid

Sony
NEC polylactic acid 20

2 NEC

14
1
2005

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