3.21.09 WBDB

Friday was the bombshell of the week. ConAgra is utilizing 50% recycled "post consumer waste" with NatureWorks PLA. They refer to the product as recycled PLA, and note the reduced use of PVC and PETG by weight. This is cool stuff. The first marriage, as for as I can tell, of recycled plastic and biodegradable plastic. They do not reference it being biodegradable.

Why is this so cool? Bioplastic and Recycled plastic as one. The two didn't like each other to much either. And the news in Feb. was that NatureWorks got PLA out of the recycled plastic waste stream with help from Unisensor. Important news for this market segment.

Wisconsin Bioplastic Daily Briefing

Editors note...this entry scratches the surface of the discussion last night, and please come back for future updates...

We took the WBDB to the Milwaukee SPE section meeting last night, and once again they did not disappoint. The Milwaukee SPE is dedicated to education, and last nights discussion could have been applied to any industry in Wisconsin. You did not have to be involved in the plastic industry to have positive and strong take-a-way message.

The conversation focused on keeping your business competitive in today’s economic environment, and how government, academia, and business can partner to create a stronger manufacturing industry in Wisconsin. Speakers included; Bob Dealey, Dealey’s Mold Engineering, Michael Lovell, Dean of Engineering at UW-Milwaukee, Glenn Kennedy, VP Operations, InPro Corporation, and State Representative Rich Zipperer.

The most important aspect to note is the wide range of experts that spoke, and the depth of knowledge they have to create the strong workforce. We highly suggest you follow the links provided to learn more about these highly intuitive speakers.

Speaker Bob Dealey provided one very exciting moment for us here at WBDB when he noted that five of the most innovative and dynamic tool & die companies reside right here in Wisconsin. Why was this exciting you ask? WBDB sat next to the representative from DYNAMIC , and sure enough they were mentioned in the top five. Prior to being announced as one of the most innovative in the nation we talked cap’s and closures.

Why so exciting? Because DYNAMIC, along with others such as Triangle Tool Corp. and the rest of the tool and die companies will play a critical role in the expansion of bioplastic. You can’t produce a plastic part without a mold to either push or pull the material through. As we’ve learned, no one mold works with all plastic, especially when it comes to bioplastic.

Wisconsin Bioplastic Daily Briefing

Interesting press release this morning from Frost & Sullivan (F&S) regarding the emerging bio-renewable chemicals (We guess they really don’t want to say biochemical) industry and the relationship with the food industry. F&S provide analysis that the bio-renewable chemical market earned $1.63 billion in 2008, and estimated that revenues could exceed $5 billion by 2015. And the best part is that F&S analysts took a look at the lactic acid, succinic acid, glycerol and 1.3 propanediol in the markets of chemicals, bioplastic and composites.

First they reference reliability and predictability of feedstock prices for bio-renewable chemicals. Second, lower emission levels by as much as 50%. Natureworks and others are also claiming lower carbon emissions through the manufacturing process as well.

F&S then lays out issues that are preventing the market from moving forward. Lack of a smooth business-to-business integration is slowing market acceptance. Two different supply chains, and lack of knowledge

Reading between the lines, there are some engineers who have been in their jobs a while and don’t want to change. It happens in every industry and business.

F&S states that over the long term awareness of benefits and the integration of the supply chains will develop strong partnerships for the market.

Here is Wisconsin we are working to bring the knowledge to the market, and build the green supply chain for our manufacturers to have a large slice of $5 billion market by 2015.

Read the press release here….

http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/03-17-2009/0004989659&EDATE=

BPA Legislation Introduced

If you are in the plastics industry you by now have heard the news about BPA, bishpenol A, and possible negative effects it may have on humans. Legislation was introduced at the federal level to ban BPA in all food and beverage containers.

Recent news from Sunoco (yes the same company that supplies fuel for NASCAR) will not help the industry any. Sunoco will no longer sell BPA to producers who manufacture food and water containers for children under 3. Six major baby bottle manufactures announced they will stop using BPA in bottles.

What does this mean? The industry says the stuff is safe for children, but that arguement is being thrown out the window with this announcement.

It is unclear how this will effect the bioplastic industry. There is a group in Iowa who is marketing technology that replaces BPA. We are uncertain about the availability of the product and the feedstock to produce it.

Wisconsin Bioplastic Daily Briefing

According to a recent press release from NatureWorks , a j/v of Cargill and Teijin (Japanese chemical company), the Blair, Nebraska plant has not even reached its full capacity of 140,000 tons, but they are exploring the possibility of adding a second manufacturing plant.

Demand for their bioplastic has been expanding, and new competition is coming online in 2009. Two new manufacturing plants are being constructed right now. Metabolix reported last week that the Clinton, Iowa plant is on schedule to start producing in the second half of 2009, and Cereplast is reporting a similar time frame for their manufacturing plant.

During 2008’s run-up in oil prices a number of companies began exploring the use of bioplastic because of sharp price increases for traditional petro-chemical feedstock and higher quality bioplastic that competed with oil based plastics.

NatureWorks news is great for the industry. Demand is strong, supply is short. Oil prices have stabilized, chemical companies have cut back on production, and bioplastic’s are still competitive. This is really great news for the industry as it moves forward into new markets. Brand-owners are finding value with the use of sustainable feedstock while keeping costs in line.

Yes, we are making broad assumption here, but take this one to the bank:
“We anticipate continued advancements in the resin's performance, as well as an increase in the number of products and applications using Ingeo™. We're starting our assessment now, recognizing that typical timeframes for design and construction of such facilities can be three years after a decision is made," said Marc Verbruggen, president and CEO.

Reading the tea leaves, Bioplastic is here to stay. Future oil prices will go higher, and the smart companies are positioning themselves now to enter the market with competitive products that consumers want.

Memo to NatureWorks….Wisconsin has a lot of corn. And wood. Lots of it. Think second generation bioplastic made from wood.

Wisconsin Bioplastic Daily Briefing

This week saw news from DuPont™ regarding the product Cerenol™, a renewably sourced polyol. Not very familiar with the product, but the chatter out there says it is corn based. DuPont was recognized by SPE with a 2009 Environmental Stewardship Award for the product development. A second product from DuPont has been racing around as well. Salomon announced they will be using Hytrel® RS in the ski boots. Hytrel® RS is a hybrid type resin that according to DuPont can have 20-60% renewable sourced feedstock in the plastic. Salomon’s Ghost ski boot will be available next year for the general public, and has been in use by sponsorship riders this past year. Check out the boot here.

Scrapa’s boot is no slouch either. The Tornado Eco, T2 Eco, and includes a women’s model as well. For those backcountry souls the boot puts nature at your foot (I know bad pun, but we had to come up with something). Scrapa claims the boot requires 29% less fossil fuel and puts out 32% fewer Co2 emissions. The boot uses PEBAX-Renew, a thermoplastic elastomer manufactured from the African miracle tree, Ricinus communis (castor oil plant). Can’t find a webpage for the product, and it appears to be big in Europe with several other applications in the sporting industry.

Bioplastic Daily Briefing

Wisconsin Bioplastic Daily Briefing

Metabolix recently announced that Bioverse, a developer of natural products, contracted to purchase Mirel™ bioplastic resin for a ball that you put into small ponds to help clean up the water.  The product, AquaSphere PRO, is a bioremediation system, and will undergo an upgrade to a bioplastic shell.  The previous shell is recycled plastic, and is still being offered.  The biosphere is submerged underwater, and you forget about it.  As I understand it, the shell biodegrades in tempo with the life cycle of the water treatment system. 

According to the press release Bioverse is the first customer announcement for the marine and fresh water market, and is one of six targeted markets for the bioplastic resin marketed by Telles, the jv formed by Metabolix and Archer Daniels Midland Company (ADM) to commercialize the bioplastic resin. 

What are some of the other possible markets that a marine grade biodegradable plastic could be utilized in?  If you haven’t noticed Wisconsin has a lot of lakes. 

I have to challenge myself, you know, because I’m the president of the PPBA (Professional Pontoon Boaters Association) to see where a bioplastic product could be used on the pontoon?  Got it, we need new cup holders.  The old ones fell apart, and were mounted poorly.  No, they did not fall in the water.  They went in the trash though. Maybe the next ones could compost?  Will try to find some, and fill you in as the search progresses.