The Bio-Based Materials Automotive Value Chain 3005 Boardwalk, Suite 200 Ann Arbor, 48108 April 2012 All statements, findings, and conclusions in this report are those of the authors and do not necessarily reflect those of Growth Dimensions for Belvidere and Boone County Inc. or the U.S. Department of Energy © 2012 Center for Automotive Research ii The Bio-Based Materials Automotive Value Chain Center for Automotive Research Report Prepared by: Kim Hill, Director, Sustainability & Economic Development Strategies Group Director, Automotive Communities Partnership Associate Director, Research Bernard Swiecki, Senior Project Manager Joshua Cregger, Industry Analyst Report Prepared for: Growth Dimensions for Belvidere and Boone County Inc. 200 South State Street Belvidere, IL 61008 & U.S. Department of Energy 1000 Independence Avenue, SW Washington, DC 20585 April 2012 © 2012 Center for Automotive Research iii © 2012 Center for Automotive Research iv ACKNOWLEDGEMENTS The Center for Automotive Research (CAR) would like to thank Growth Dimensions for Belvidere and Boone County Inc., and the U.S. Department of Energy for support of this work. Growth Dimensions pursued the completion of this study in order to improve its capabilities in readily identifying and facilitating business opportunities for increased market penetration of bio-based plastics, polymers, and composites into supply chains feeding the automotive industry. This study is the result of a group effort. The authors would like to thank our CAR colleagues— Debbie Maranger Menk, Greg Schroeder, Valerie Sathe Brugeman, and Chris Hart—for their participation in meetings and assistance with content, analysis, and interpretation. Additional assistance was provided by Diana Douglass, who contributed greatly to the coordination of the project and the production of this document. The authors would also like to thank the representatives from all of the companies that met with CAR researchers and provided insight into the bio-based materials industry. In particular, the authors would like to thank representatives at Ford Motor Company; General Motors; Bayer Material Science LLC; Cooper Standard; DuPont; International Automotive Components (IAC); Michigan State University; Ontario BioAuto Council; and University of Toronto. Kim Hill, MPP Director, Sustainability & Economic Development Strategies Group Director, Automotive Communities Partnership Associate Director, Research Bernard Swiecki Senior Project Manager Joshua Cregger Industry Analyst Center for Automotive Research www.cargroup.org © 2012 Center for Automotive Research v CENTER FOR AUTOMOTIVE RESEARCH The Center for Automotive Research (CAR), a nonprofit organization, is focused on a wide variety of important trends and changes related to the automobile industry and society at the international, federal, state and local levels. CAR conducts industry research, develops new methodologies, forecasts industry trends, advises on public policy, and sponsors multi- stakeholder communication forums. CAR has carried out the majority of national level automotive economic contribution studies completed in the United States since 1992.1 The research for this study has been performed by the Sustainability and Economic Development Strategies (SEDS) group, led by Kim Hill, associate director of research. SEDS concentrates on the long-term viability and sustainability of the auto industry and the communities that lie at the heart of both the industry and the system. 1 These studies include: The Center for Automotive Research. Contribution of the Motor Vehicle Supplier Sector to the Economies of the United States and its 50 States. Prepared for the Motor & Equipment Manufacturers Association, Ann Arbor, January, 2007. The Center for Automotive Research. Contribution of Toyota to the Economies of Sixteen States and the United States in 2006. Prepared for Toyota Motor North America, Inc., Ann Arbor, October, 2007. Institute of Labor and Industrial Relations, University of Michigan and the Center for Automotive Research. Contribution of the U.S. Motor Vehicle Industry to the Economies of the United States, California, New York, and New Jersey in 2003. Prepared for the Alliance of Automobile Manufacturers, Inc., Ann Arbor, May, 2004. Institute of Labor and Industrial Relations and the Office for the Study of Automotive Transportation, University of Michigan and the Center for Automotive Research. Contribution of the Automotive Industry to the U.S. Economy in 1998: The Nation and Its Fifty States. A Study Prepared for the Alliance of Automobile Manufacturers, Inc. and the Association of International Automobile Manufacturers, Inc. Ann Arbor, Winter 2001. The Office for the Study of Automotive Transportation, Transportation Research Institute, and the Institute of Labor and Industrial Relations, University of Michigan. The Contribution of the International Auto Sector to the U.S. Economy. A study prepared for the Association of International Automobile Manufacturers, Inc., Ann Arbor, March, 1998. McAlinden, Sean P., et. al., Economic Contribution of the Automotive Industry to the U.S. Economy – An Update – A Study Prepared for the Alliance of Automobile Manufacturers, Center for Automotive Research. Ann Arbor, Fall 2003. Office for the Study of Automotive Transportation, Competitive Survival: Private Initiatives, Public Policy and the North American Automotive Industry – Prepared for the U.S.-Canada Automotive Select Panel. University of Michigan Transportation Research Institute, Ann Arbor, June, 1992. The research staff of the Center for Automotive Research performed a number of these studies when located at the University of Michigan’s Office for the Study of Automotive Transportation. © 2012 Center for Automotive Research vi The Bio-Based Materials Automotive Value Chain TABLE OF CONTENTS EXECUTIVE SUMMARY _________________________________________________________ 1 INTRODUCTION _______________________________________________________________ 5 Bio-Based Materials and the Bio-Economy ________________________________________ 6 History ____________________________________________________________________ 7 Study Objectives ____________________________________________________________ 8 Processes and Materials Basics _________________________________________________ 9 BIO-BASED MATERIALS USAGE __________________________________________________ 11 Most Common Materials _____________________________________________________ 11 Current Usage _____________________________________________________________ 11 Announced Usage __________________________________________________________ 12 Automaker Information Description ____________________________________________ 13 Bio-Based Content in Automotive Components ___________________________________ 15 Standards for Determining Bio-Based Content and Environmental Impact ______________ 16 FEEDSTOCKS & RESOURCES ____________________________________________________ 19 Materials _________________________________________________________________ 19 Feedstock Geography _______________________________________________________ 21 Ancillary Issues at Higher Volumes _____________________________________________ 27 BIO-BASED MATERIALS TRENDS IN THE AUTOMOTIVE INDUSTRY _______________________ 29 Drivers and Benefits ________________________________________________________ 29 Drawbacks and Challenges ___________________________________________________ 32 GREAT LAKES ACTIVITY ________________________________________________________ 36 Educational Institutions ______________________________________________________ 36 Associations _______________________________________________________________ 37 Automakers _______________________________________________________________ 39 Suppliers _________________________________________________________________ 39 Agricultural and Chemical Industries ___________________________________________ 40 CASE STUDIES _______________________________________________________________ 42 © 2012 Center for Automotive Research vii Case Study 1: Wheat Straw Fiber-Reinforced Composite in a Storage Bin of the Ford Flex _ 43 Case Study 2: Bio-Based Material Commercialization Fund at the Ontario BioAuto Council _ 47 Case Study 3: Castor Oil Based Nylon in the Radiator End Tank of the Toyota Camry ______ 52 ROADMAP FOR INCREASED COMMERCIALIZATION __________________________________ 55 Successful Approaches ______________________________________________________ 55 Lessons Learned from Case Studies ____________________________________________ 57 Recommendations to Overcome Obstacles ______________________________________ 58 Future Work _______________________________________________________________ 59 REFERENCES ________________________________________________________________ 60 APPENDIX A: GLOSSARY _______________________________________________________ 70 APPENDIX B: ACRONYMS ______________________________________________________ 73 APPENDIX C: SELECT AUTOMAKER PRODUCTS CONTAINING BIO-BASED MATERIALS ________ 75 APPENDIX D: SELECT AUTOMAKERS INVOLVED WITH BIO-BASED MATERIALS _____________ 78 APPENDIX E: SELECT SUPPLIERS INVOLVED WITH BIO-BASED MATERIALS _________________ 79 APPENDIX F: SELECT ASSOCIATIONS INVOLVED WITH BIO-BASED MATERIALS _____________ 81 APPENDIX G: SELECT UNIVERSITIES INVOLVED WITH BIO-BASED MATERIALS ______________ 82 © 2012 Center for Automotive Research viii LIST OF TABLES Table 1: Selected Bio-Based Automotive Components ...............................................................