By Lauren M. Graham, Ph.D.
On March 31, 2017, AkzoNobel, a member of BRAG, announced the launch of an online tool that uses e-certification to monitor the biobased content of products. Companies that sign up to use the online platform will be able to exchange biobased material certificates for everything from base ingredients to finished products. The online tool eliminates the need for separate, external biobased certifications at various points along the supply chain by allowing companies to transfer the certificates electronically. According to AkzoNobel, tracking the exact amount of biobased raw materials used throughout the value chain will enable producers and consumers to purchase more sustainable products and move towards a more circular economy. AkzoNobel partnered with Advanced Biochemical (Thailand) Co., Ltd. (ABT) and EY on the project, which is currently in the pilot phase, to encourage transparency and sustainable chemistry.
On February 17, 2017, the U.S. Department of Agriculture (USDA) announced it is accepting applications for the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program. The Program provides guaranteed loans for projects developing, constructing, or retrofitting commercial scale biorefineries and biobased product manufacturing facilities. The developments must use eligible technology, including new commercial scale processing and manufacturing equipment. Applicants must submit a Letter of Intent by March 6, 2017, that identifies the Borrower, Lender, and Project sponsors, and describes the project, project location, proposed feedstock, primary technologies of the facility, primary products, loan amount, and total project cost estimate. Applications are due on April 3, 2017, at 4:30 pm (EDT).
On February 21, 2017, USDA announced in the Federal Register that the comment period for the Designation of Product Categories for Federal Procurement proposed rule had been extended. The proposed rule aims to amend the Guidelines for Designating Biobased Products for Federal Procurement to add 12 product categories composed of intermediate ingredient and feedstock materials and to propose a minimum biobased content for each category. In addition to the product categories and biobased content, USDA is seeking comments on appropriate performance standards for each product category, the positive environmental and human health attributes of biobased products within the proposed categories, and how small businesses may be affected by the proposed rule. Comments are now due by April 13, 2017.
On February 9, 2017, Avantium announced a partnership with AkzoNobel (a member of the Biobased and Renewable Products Advocacy Group (BRAG®)), Chemport Europe, RWE Generation, and Staatsbosbeheer to develop a reference plant at the Chemie Park Delfzijl in the Netherlands. The plant will use a new technology, referred to as the Zambezi process, for the cost-effective production of high-purity glucose from non-food biomass, including forestry residue, pulp, and agricultural byproducts. Once the woody biomass is converted into sugars and lignin, it can be used to produce a wide range of biobased chemicals and materials. The design of the plant includes an expansion-ready footprint to enable a rapid increase in capacity following the demonstration phase.
Each partner will contribute a unique strength to the overall project. The infrastructure, utilities, and expertise of the reference plant will be based on the AkzoNobel site in Delfzijl. The forestry residue feedstock will be sourced by Staatsbosbeheer. RWE Generation will generate renewable energy from the bio-lignin residue of the Zambezi process, and Chemport Europe will provide strategic support to the project through a range of initiatives.
On February 9, 2017, Illinois State Senators Andy Manar and Chapin Rose introduced legislation aimed at growing Illinois’ biobased economy by providing incentives under the Renewable Chemical Production Tax Credit Program Act. The program would provide credit against taxes for eligible Illinois businesses that produce renewable chemicals within the state using biomass feedstock and other renewable sources. The legislation defines a renewable chemical as a building block with a biobased content of at least 50 percent. According to the legislation, eligible businesses will be required to submit to the Department of Commerce and Economic Opportunity an application for the tax credit that includes the amount of renewable chemical produced during the calendar year and any other information needed to verify eligibility as identified by the Department. The proposed tax credit will not exceed $1 million for businesses that have been in operation in Illinois for five years or less, and $500,000 for businesses that have been in operation longer than five years.