Insights from ADI Chemical Market Resources

Closing the circularity loop with bio-based polymers

Sustainability and circular economy have become top priorities to combat greenhouse gas (GHG) emissions worldwide. Government, industry, and consumers alike are making efforts to not only recycle but replace fossil-based raw materials with bio-based raw materials, introducing biodegradable and/or compostable products in their lifestyle.

Bio-based plastics or polymers that are based on natural sources such as sugar (from sugarcane), starch (from corn), cellulose (from wood), or vegetable oil (from crop) derivatives are growing. ADI Chemical Market Resources has been closely following investments and innovation in the space of bio-based polymers. Learn more here >>

Key Chemical Industry Drivers

GDP grew across most major economies except U.S. where it slowed
Global GDP is expected to grow by 6% in 2021
Auto sales fell in U.S. and China but grew moderately in others and Purchasing Manager’s Index grew in major economies except in U.S. and Canada

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Select Industry News Highlights

Capacity additions and expansions are underway indicating moderate growth for chemicals in the medium term

Gulf Coast Growth Ventures (GCGV) reaches mechanical completion
GGCV, a joint venture between ExxonMobil and SABIC, reached mechanical completion of its three units, including a monoethylene glycol (MEG) with capacity of 1.1 million tons per year (tpy) and two polyethylene (PE) units with combined capacity of 1.3 million tpy. The plants will serve industries including medical, automotive, and packaging products. The project is expected to be under budget and ahead of schedule, with start-up likely in the fourth quarter of 2021.

Dow considers reviving its expansion project on the U.S. Gulf Coast
In 2017, Dow had announced an expansion project to add linear low density polyethylene (LLDPE) capacity at their site in Freeport, Texas. The plans were abandoned due to the COVID-19 pandemic and resulting economic recession. Citing improving market conditions, Dow recently announced that they will make a final decision on the expansion project this year that will add 130,000 tpy LDPE capacity.

BASF and SINOPEC are planning to expand their Verbund site in China
BASF and SINOPEC have announced plans to expand their Verbund site in Nanjing, China which is operated by BASF-YPC, a 50-50 joint venture of both companies. The site is one of its six such sites utilizing BASF’s Verbund technology. The expansion will include several downsteeam chemical plants including a new tert-butyl acrylate plant and capacity additions for propionic acid, propionic aldehyde, ethyleneamines, ethanolamines, and purified ethylene oxide. The expanded capacity expected to start-up in 2023.

Plastics equipment manufacturer reopens former plant in Virginia
Ohio-based Xaloy that manufactures components for injection and extrusion machinery, closed their Pulaski plant in 2016 citing low demand. However, recent uptick in demand put a lot of pressure on their operational plant in Austintown, Ohio and they have now decided to reopen their plant in Pulaski and hire most of their old staff that was let go when it closed.

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Companies are ramping up on bio-based and sustainable materials in addition to increased investments in recycling

H.B. Fuller and Covestro jointly develop bio-based sustainable adhesives
H.B. Fuller announced a partnership on sourcing bio-based raw materials from Covestro for their adhesives. H.B. Fuller is actively reducing its carbon footprint by replacing certain portions of fossil-based raw materials with bio-based materials in adhesives for the woodworking, composites, textiles, and automotive industries.

Sulzer ChemTech to partner with Wageningen Food & Biobased Research for bio-based foam materials
Sulzer ChemTech and Wageningen Food & Biobased Research announced a strategic partnership to develop innovative methods to produce competitive bio-based foamed polymers. Polymer foams are used in applications such as furniture in sofas and beds to food and non-food packaging. The companies will jointly work towards improving their limited recyclability and sustainability and contribute towards reducing environmental footprint.

Danimer Scientific to acquire biodegradable polymer producer Novomer
Danimer Scientific, manufacturer of biodegradable polymer polyhydroxyalkanoate (PHA), is planning to buy biodegradable polymer producer, Novomer. The deal is valued at $152 million. Novomer makes poly(3-hydroxypropionate) from carbon monoxide and ethylene oxide, which is a comparatively inexpensive type of PHA because it circumvents fermentation. Founded in 2004, Novomer operates a plant in Rochester, New York, and Danimer will now modify its expansion plans in Bainbridge, Georgia to expand capacity at the Novomer plant.

French makeup company plans a bio-based makeover
LyondellBasell has partnered with French cosmetics company, Sarbec, to design a polyethylene (PE) bottle made from renewable materials offering a carbon footprint reduction of up to 75% based on the mass-balance approach. LyondellBasell will supply CirculenRenew polymers that are produced from bio-based sources such as cooking oil. The bottle is supposed to be used by personal care brand Cornine de Farme as Sarbec plans to remove all virgin plastics from their products by the end of 2021.

Baralan introduces bio-based packaging
Primary packaging company, Baralan, that is mostly active in packaging for cosmetics and beauty industries has introduced a Biobased Packaging Series for skincare, fragrance, and makeup products. The packaging will be made with a biopolymer derived from renewable resources and natural materials that are not linked to the food chain and are sourced from industrial waste. The biopolymer will have combined processing properties of thermoplastic materials and renewable and natural materials. The bio-based packaging series will be available for roll-on packaging, glass jars, compact cases, spray or cream pumps, and nail polish.

Ravago acquires interest in Alterra Energy
Leading plastics distributor and recycler, Ravago, announced an equity interest acquisition in Ohio-based recycling technology company, Alterra Energy. As a part of the deal, Ravago will supply pre-processed waste plastic to Alterra’s 60 tons per day plastic recycling plant in Akron, Ohio.

ISCC PLUS continues to be the global standard for certification of circularity in polymers

Nippon Shokubai receives ISCC PLUS certification for bio-based polymers
Japan-based chemicals manufacturer Nippon Shokubai obtained the International Sustainability and Carbon Certification (ISCC) PLUS biomass certification for superabsorbent polymers (SAP) produced by its subsidiary in Europe. The company aims to achieve carbon neutrality by 2050. SAP is the key material in disposable diapers and its is made from acrylic acid derived from polypropylene. Nippon produced both acrylic acid and subsequently SAP, and it has obtained the certification for their process converting biomass-derived polypropylene into acrylic acid that will eventually end up in SAP. ISCC PLUS certification has emerged as a benchmark for sustainable and circular materials.

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ADI Chemical Market Resources offers 50+ reports and studies on a broad range of polymers, plastics, and chemicals. Browse our rich library and contact us at +1 (281) 506-8234 or info@adi-cmr.com for an existing or custom report.

Global EPR and EPDM

Global tie layer resins

Global linear alpha olefins (LAOs)

Global high melt strength PP

Polypropylene fibers global

China ethylene and polyethylene

Global m-POPs and m-POEs

Global vinyl acetate derivatives

Global POEs and POPs

Global PE catalysts market

Global styrene block copolymers

Global polyolefin foams

Global polyolefin catalysts

Global HDPE and MDPE

Global polyacetals (POMs)

Global MMAs and PMMAs

Global SBS and SEBS

Global PO in automotive

Global elastomeric POs

Polypropylene films global

Global high EVA copolymers

Global high-press. LDPE and EVAs

Acid copolymers and ionomers

Global high-pressure LDPE

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