122 – 6. POLICY: DEVELOPMENTS, IMPLICATIONS AND CONCLUSIONS
FUTURE PROSPECTS FOR INDUSTRIAL BIOTECHNOLOGY – © OECD 2011
Only one of the three sectors, liquid biofuels, has a maturing policy
environment, especially in the United States with its top-down approach. It is
also evident that many other developing and developed countries have
adopted biofuels policy; this may eventually be beneficial in setting up
international supply chains. Effective policies include regulation and the drive
towards mandated targets. There is now an emerging need for concerted,
harmonised policy around standardisation and lifecycle analysis.
Bioplastics is likely to be the next sector to require strong policy
intervention. On the one hand, projected plastics consumption shows a
worrying competition with transport fuels for crude oil. On the other, the
growing list of molecules and of applications and the uptake by multinationals
indicate that bioplastics are on their way to success from a very modest
starting point. At present, however, there are no extensive, coherent policy
strategies for bioplastics.
Bio-based chemicals may appear to be the sector that presents the least
urgency. Because many biochemicals cannot be easily made by a synthetic
chemical route, their market position is safe. However, it is evident that the
wider bio-based chemicals sector, which implies bio-content but not
necessarily production by a biocatalytic route, is expanding. This suggests that
policy intervention should be seen as equally urgent. There can be no better
example than bio-based ethylene, formed from bioethanol. It is being taken
seriously, especially in Brazil (Morschbacker, 2009). Ethylene is the most
produced organic chemical in the world. The bio-based route would compete
not only with the petrochemical route, but also with biofuels for a share of
production of bioethanol, and would therefore, of course, also be competing
for a share of biomass.
Ultimately all three sectors will be interdependent owing to the need for
common raw materials and supply chains. This makes the economics of the
integrated biorefinery potentially more attractive. Perhaps policy calls for
similar integration.
A further objective of this study has been was to highlight some recent
products that are bringing bioplastics and bio-based chemicals to the
attention of consumers and investors. Two examples are bio-isoprene for
tyre production and Sorona®, a bio-based fabric. There is a perception that
industrial biotechnology products are unattractive, and this has consequences
for investment and market penetration. Investors are attracted by blockbuster
products, and the lack of visibility of these sectors helps explain the lack of
investment. Additionally, the general public knows little about industrial
biotechnology products, so it is difficult for them to gain market share.
However, as high-visibility products such as bio-isoprene and Sorona®