From 2009-2019, commercial scale availability of biomaterials and biobased chemicals was limited due to either technical challenges or feasibility concerns.
2020-2030 period is now set to accelerate biobased chemicals demand with reputed automobile, consumer goods (FMCG) and pharma industries already making a switch with annual procurement contracts due to rising consumer demands as well corporate sustainability initiatives.
Biobased Chemicals Expertize
Green Methanol, Bio polyethylene (Bio PE), Bio acrylic acid, Bio acetic acid, Biosurfactants and Biodetergents
Poly Lactic Acid (PLA), Poly Hydroxy Alkenoates (PHA), Polybutylene adipate terephthalate (PBAT), Poly urethane (PU) & PBS
Biobased Platform Chemicals
Levulinic Acid, Bio succinic acid, 1,4 Butanediol (BDO), Bio glucaric acid, Bio glutamic acid Bio itaconic acid and Bio adipic acid
Rising consumer demand, corporate & government sustainability directives globally are accelerating the growth of renewable chemicals or biobased chemicals which is expected to grow at 18% CAGR and potentially become a $30 billion market by 2030. While decarbonizing the hard to abate chemical sector, it presents a boutique investment opportunity alongside transitioning to a circular economy
Renewable sciences have come a long way in championing the commercial use of eco-friendly bio based chemicals that significantly improve air, water and soil quality around us. Renewable chemicals are produced by novel conversion of organic waste, agricultural residues or feedstock, biomass, and microorganism through biological or chemical conversions. In the last decade, Biorefineries have sprung into existence to manufacture 100% sustainable and naturally biodegradable biobased chemicals that are already being commercially produced from vegetable oils & esters. Proven biotech & thermochemical technologies are enabling use of organic waste, municipal solid waste and biomass feedstocks like rice straws, grasses, corn stover, forest/ agricultural residues. With a nearly $12 billion market in 2022, renewable chemicals have already substituted many fossil fuel derived polluting chemicals and are fast gaining commercial worldwide acceptance across many sectors.
Bio Polyethylene (PE) continue to dominate the biochemicals market while biosuccinic acid, bio acrylic acid and itaconic acid are rapidly growing in superabsorbent polymers (SAP), pharmaceutical and other industrial applications. Rising costs of fossil based raw materials like maleic anhydride or 1,4 Butanediol (BDO) is boosting the market demand for biosuccinic acid which is further used for polybutylene succinate (PBS) . Europe offers the largest market demand and continues to be the leader while North America remains a large producer of majority of these renewable chemicals or biomaterials.
Biofuels like bioethanol, biobutanol and green methanol have already attracted significant investments since 2019 and platform chemicals like farnesene (isoprene), levulinic acid, itaconic acid, glutamic acid and glucaric acid made from cellulosic sugars demonstrate a niche investment and commercialization opportunity using metathesis, dehydrative transformation, fermentation, or enzymatic pathways.
Captured Carbon dioxide (CO2) from CCS or direct air capture (DAC) is also emerging as an alternative raw material for producing sustainable & biodegradable polymer materials (poly urethane), bio detergents, biofertilizers (Hydroxy alkanoic acid, biosurfactants, green hydrogen & nanomaterials with many technology startups already commercializing it.
Trident Renewables has excellent advisory experience with mergers and acquisitions for renewable chemicals. Our renewable chemicals division has assisted private equity, venture capital and alternative investment firms (AIF) in conducting commercial & technical due diligence on biobased chemicals businesses. Our 15 years of real world expertize in this space has benefitted our institutional clients in better understanding the technology potential, intellectual property, business landscape, investment strategies and M&A opportunities with a clear advantage over competition.
BIOBASED PLATFORM CHEMICALS
Bio-based platform chemicals, represent group of twelve building block chemicals which can be produced from starch, sugar or cellulosic feedstocks via biochemical or thermochemical conversions. The group contains molecules with different functional groups, holding the potential to be converted into various other high value chemicals.
After more than a decade of research efforts and investments, synthetic biology & chemo enzymatic processes have made reasonable progress to advance the commercial production of biobased platform chemicals like Levulinic Acid, Bio succinic acid, 1,4 Butanediol (BDO), Bio glucaric acid, Bio glutamic acid Bio itaconic acid and Bio adipic acid from Sugars as well as Lignocellulosic (straw, grasses, corn stover etc) feedstocks.
The first generation of starch based bioplastics like Polyamides (PA), polyethylene furanoates(PFA), polylactic acid (PLA), polyethylene & PET were non-biodegradable and required industrial composting facility but nonetheless garnered a significant traction. The second generation bioplastics like polyhydroxy alkenoates (PHA), PBAT, PBS and PU are fast gaining commercial acceptance as substitute to HDPE, PS, PE & PET. Biodegradable plastics are likely to dominate 75% of overall bioplastics market by 2027 as municipal treatment facilities and consumer demand for naturally biodegrading and marine friendly bioplastics is increasing rapidly.
With 4.8 million tons of global bioplastics production in 2022, bioplastics still make only 2% of the overall worldwide plastics market but are set to grow at nearly 22% CAGR and capture 6% of overall plastics market by 2028. With global bioplastic production capacities set to triple in next 5 years, it presents a strong investment opportunity potential as consumer goods, automotive industry, and packaging (flexible and rigid) all set for increased market demand of eco friendly bioplastics. European union’s ban on single use plastics (SUP) like cups, straws, buds, disposable cutlery and similar which came into effect from July 2021 further creates a sustainable market demand which is here to stay.
RENEWABLE CHEMICALS CONSULTING SERVICES
Backed by a team of experienced leaders from renewable chemicals & bioplastics space, our unique due diligence approach to technology & business strategies has been a differentiator. Our advisory services have enhanced enterprise values of their investments, achieve their vision and build an excellent investment strategy.
Trident Renewables has successfully advised principals, partners, fund managers and decision makers at investment firms that are based out of San Francisco, New York & London offices.
Our renewable chemical consultants have offered in depth consulting to consumer (FMCG), chemical & energy companies in United States, UK, Europe, and Asia Pacific region in procuring as well as transitioning to biobased chemicals.
Key Practice Areas
Mergers & Acquisitions
Commercial Due Diligence
Government Policies, Incentives & Mandates
Private Equity, New York
Commercial & Technology Due Diligence on a renewable chemicals company in US