Renewable Chemical Platforms Building the Biobased Economy SAVE THE DATE JOIN US FOR THE 2019 BIO World Congress on Industrial Biotechnology JULY 8-11, 2019 DES MOINES, IOWA bio.org/worldcongress Renewable Chemical Platforms Building the Biobased Economy © 2018 Biotechnology Innovation Organization (BIO) 1201 Maryland Ave. SW Suite 900 Washington, DC 20024 Cover photos: © 2018, Cargill Industrial Specialties; Ginkgo BioWorks; and Total Corbion PLA. All rights reserved. INTRODUCTION Renewable Chemical Figure 1: The Biobased Economy Platforms Building the Biobased Economy The biobased economy is a value chain of sustainable manufactur- ing that uses biological processes to convert renewable, low-cost or waste feedstocks into everyday products. It creates new markets for agricultural Feedstock Industrial Biotech Products crops, crop residues and waste streams • Biomass • Synthetic Biology • Sustainable Fuels as well as opportunities for innovation • Algae • Enzymes • Chemicals • Methane • Biorefining • Polymers in producing consumer goods. Renew- • Waste and Off-gases • Gene editing • Food Ingredients able chemicals and biobased manu- facturing provide a cost-competitive alternative to petroleum’s value chain that generates added value through can unleash this growth by supporting across the entire value chain, though, environmental, economic and other all companies and sectors that contrib- because the biobased economy is benefits. ute to building the value chain. characterized by rapid innovation. Industrial biotechnology continually Companies around the globe – both Industrial biotechnology is at the creates potential for use of new feed- those profiled in this report and many heart of this manufacturing revolution, stocks, new tools such as genomics, others, including dozens of emerging serving as a catalyst for growth, new gene editing and microbial engineer- companies – are building the biobased economic opportunities and employ- ing, as well as new products and economy as they commercialize ment in: materials. renewable chemical processes and • agriculture and forestry, espe- biobased products. Collectively, their cially through development of Bioeconomy Capital estimates that progress has reached a tipping point new crops and new uses for crop the U.S. industrial biotechnology sector for accelerated growth in the 21st cen- residues; generated more than $140 billion in tury. Governments and policy makers • industrial manufacturing, through business-to-business revenue in 2016.1 use of offgases and waste streams; The group’s estimate is drawn from • feed ingredients for animal nutri- reported revenues for the renewable BIO estimates that the global tion; chemicals, biofuels, human and animal economic value of industrial • nutritional ingredients, flavors and nutrition ingredients, and biotech biotechnology, renewable fragrances for grocery manufac- research and development industries, chemicals and polymers, bio- turing; controlling for the costs of the non-bio- • enzymes, for household cleaners, tech sectors. The group also notes that fuels, enzymes and biobased laundry detergents, and food and the consumer level economic impact materials is $355.28 billion. fabric processing; is likely to be 10 to 30 percent larger The United States generates • renewable chemical production than the direct business-to-business 58 percent of the value, or for cosmetics, personal care and revenues. The group notes significant more than $205 billion. other consumer product sectors; growth in the renewable chemicals, • biobased polymer production for pharmaceutical and nutrition ingredi- packaging and textiles; and ents sectors since a previous report of • biofuels. 2012 revenues. In 2012, total revenue for industrial biotechnology was $105 Measuring the Biobased billion, with renewable chemicals rep- Economy resenting $66 billion of that total. Several studies and market analyses have aimed to calculate the econom- The U.S. Department of Agriculture ic value of the biobased economy. It is (USDA) also commissioned a study of difficult to capture economic impacts the economic impact associated with 2 Biotechnology Innovation Organization INTRODUCTION the 97 categories of products rec- Another significant source of invest- Continued growth of the biobased ognized by the federal BioPreferred® ment came from partnerships and pri- economy will benefit countries, states program. Looking specifically at that vate equity investments to launch new and clusters that implement effective sector, USDA found that between commercial-scale industrial biotech policy to support continued invest- 2013 and 2014, direct revenue from processes. The commercial success of ment and commercialization. Sev- renewable chemicals and biobased pioneer renewable chemical pro- eral companies profiled in this study products grew from $125.75 billion to ducers encouraged these additional have partnered with governments $127 billion, providing direct employ- equity investments. around the world in a variety of ways ment to 1.53 million U.S. workers. The – research and development grants, industry also creates employment in Building the Value Chain business incubators, and market build- other industries, such as transportation Similar to assessments of the chemical ing programs. Many other companies and feedstock supply; every direct industry, projections of future growth have grown through private partner- job in the biobased product industry in industrial biotechnology, renewable ships, including mergers and joint creates 1.76 jobs in other industries. chemicals and biobased manufactur- ventures. Governments and regions The total economic impact of U.S. ing are built on the abundance and that support the emergence of the biobased production grew from $369 favorable costs of renewable feed- biobased economy are poised to reap billion to $393 billion from 2013 to stocks, the successful commercializa- the job creation and economic growth 2014.2 tion of pioneer products, and new benefits. And the public will reap envi- This study incorporates the economic investments in production capacity. ronmental and other benefits. and employment impact on agricul- In contrast to traditional industries, ture, but does not incorporate the though, expectations for industrial NOTES industrial biotech component. biotechnology’s future potential are 1. Bioeconomy Capital. (2018) Bioecon- heightened by the diversity and expo- omy Dashboard: Economic Metrics. In a separate study specifically of the nential growth in discovery of bio- http://www.bioeconomycapital.com/ bioeconomy-dashboard/. biotech industry, TEConomy calculates logical or other processes that convert 2. Golden, J.S., Handfield, R.B., Daystar, that every direct bioscience industry sustainable, renewable resources to J., and McConnell, T.E. An Economic job creates 5.5 additional jobs else- high-value products. The intensifying Impact Analysis of the U.S. Biobased where in the economy. For workers in pace of research and development Products Industry. Washington, DC: USDA BioPreferred Program, 2016. the agricultural feedstock and chemi- in biotechnology, new developments cals sector of the biotech industry, in synthetic biology and gene editing, 3. TEConomy/BIO. The Value of Bioscience Innovation in Growing Jobs and Improv- which includes biofuel producers, the and recent experience in engineering ing Quality of Life. Washington, DC: multiplier is as high as 18.4 additional commercial-scale industrial biotech Biotechnology Innovation Organization, jobs for every direct job.3 processes augment projections for 2016. accelerated economic growth in 4. Oh, V. “Show Me the Money: Where is According to Lux Research, inves- the field. Venture Capital Placing Bets in Bio- based?” Boston: Lux Research, Dec. 5, tors pumped nearly $9.2 billion into 2016. the industrial biotechnology sector, The profiles of companies, technology primarily in renewable chemicals and and products in this study documents biobased polymers between 2010 and some of this emerging potential. It 2015. The funding came from a variety also provides a snapshot of mature, of sources, including private equity commercialized biobased products and some public investment. But the and processes across various industries majority of the investment and financ- and subsectors – renewable chemi- ing – $5.3 billion (57 percent) – came cals, enzymes, biofuels, and biobased from venture capital.4 Venture capital polymers. Taken together, the profiles investments primarily target research create a tapestry of a global biobased and development of new technolo- economy poised for accelerated gies, and synthetic biology startups growth during the first half of the 21st have garnered the largest share in century. recent years. Renewable Chemical Platforms Building the Biobased Economy 3 ADVANCED ENZYME TECHNOLOGIES, LTD. Mumbai, India Number of employees: 500 ADVANCED ENZYMES PRODUCES ENZYMES AND PROBIOTICS. KEY FACTS About: Advanced Enzymes is a research-driven company with COMMERCIAL + Pitampur Special Economic Zone, global leadership in manufacturing enzymes and probiotics. We are Indore, Madhya Pradesh, India the largest Indian enzyme company engaged in the research and + Sinnar, District Nashik, development, manufacturing and marketing of 400-plus proprietary Maharashtra, India products developed from over 65 indigenous enzymes and probiot- DEMONSTRATION + Vashind, District Thane, ics. Our aim is to help consumers access side-effect free health care, Maharashtra, India help farmers