The Market for Biodegradable Plastics Current Situation and future ...

The Market for Biodegradable Plastics
Current Situation and future Outlook
Stefan Vodrazka - Head of Global Product Management
Biodegradable Polymers
8/9/2011 G-KT/B

What are „BioPlastics“ anyway?
Renewable raw materials
Nonbiodegradable
BIO BASED
e.g. Bio-PE, Bio-
PUR, Bio-PP
CONVENTIONAL
PLASTICS
e.g. PE, PP, PVC
BIOBASED &
BIODEGRADABLE
e.g. Ecovio ®
BIODEGRADABLE
e.g. Ecoflex ®
Biodegradable/
Compostable
Fossil raw materials
cf: Hans-Josef Endres, Technische Biopolymere, 2009 (p. 21)
Fossil-based and biobased polymers can both be 100% biodegradable.
8/9/2011
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Source: BASF/ Hans-Josef Endres, Andrea Siebert-Raths, Engineering BioPolymers, Carl-Hanser Verlag 2011 2

in million tons
Attractive market, dynamic growth rates
Global Plastics Market 2008
Market for 'BioPlastics'
Bio-
Plastics ;
0,20%
2,5
2,0
2,3
245miot
1,5
1,0
+42%
CAGR
Conventional
Plastics;
99,80%
0,5
0,0
0,4
2008 2013
• Bio-based and bio-degradable Plastics will probably remain a market
niche in the mid-term
8/9/2011
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Source: Plastics Europe Market Research Group (PEMRG); PRO-BIP Study, June 2009 3

in million tons
BioPolymers: capacities are growing
along with demand
Global Production Capacity of
BioPolymers 2010
Market for 'BioPlastics'
Reg. Cellulose
5%
Bio PET
7%
Biod.
Polyester
8%
Others
9%
>700kt
Bio-PE
27%
2,5
2,0
1,5
1,0
+42%
CAGR
2,3
PHA
12%
PLA
16%
Biod. Starch
Blends
16%
0,5
0,0
0,4
2008 2013
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Source: Plastics Europe Market Research Group (PEMRG); PRO-BIP Study, June 2009/
European Bioplastics, FH Hannover 4

Attractive market, dynamic growth rates
• Young market at the beginning of the product life cycle
• Very dynamic market: high growth rates, but some differing
estimations on market size
• Specialty business
• Growth drivers
• Organic Growth: new applications (e.g. organic waste bags)
• New solutions (e.g. bio-degradable shopping bags, mulch film)
• Legislative changes (PE bag bans, special taxes on conventional
plastics, etc.)
Sound organic growth, high leverage of legislative changes
8/9/2011
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Source: Plastics Europe Market Research Group (PEMRG); PRO-BIP Study, June 2009
5

The BASF-Position on BioPlastics
• Biobased and Biodegradable Plastcis are not per se better or
more environmentally friendly than conventional plastics
• We develop BioPlastics in applications where it makes sense
technically, economically and ecologically
• We are concentrating on applications where Biodegradability
is offering an additional value:
– Improved performance or
– Lower system cost or
– New solutions (no products available on the market)
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Biodegradable packaging by BASF
Application examples
Ecovio ® F Film
Ecovio ® FS Paper
Ecovio ® F Mulch
Ecovio ® FS Shrink Film
Ecovio ® X Foam
Packaging
Source:Victor Güthoff & Partner
Ecovio ® F Film
Source: B + K
Packaging Solutions
Film Applications
8/9/2011
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BioPlastics @ BASF: we believe in this
market – and invest long term!
• 1993: kickoff R&D
• 1998: market introduction Ecoflex ®
• 2006: market introduction Ecovio ®
• 2009: market introduction Ecovio ®
FS Paper
• 2010: startup of the new singlepurpose
capacity extension in
Ludwigshafen, Germany
• Total capacity: 14kta 74 kta
• Continous R&D to improve existing
products and develop new
applications
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What is bio-degredation ?
Fulfillment of clear norms with defined pass-or
fail criteria
Polymer
Fragments
CO 2
H 2
O
Plastics
Polymer
fragment
Microbes
Polymer
Crosslink residues
Humus
Degradation/Fragmentation
Biodegradation
• Biodegradability – complete assimilation of the degraded
products as a food source by the soil microorganisms
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Ecoflex ® fulfills all norms for compostable and
biodegradable Plastics – wordwide
Europe
Asia
North-America
EN 13432
GreenPla
ASTM 6400
• „Oxo-(bio-)degradable“ Plastics are not completely
biodegradable and are therefore not certified by the above
norms
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Global Business Management Biodegradable Polymers
Results by external and certified laboratories (OWS) confirm fast
composting of Ecoflex-based flexible film
after 4 days after 1 week after 3 weeks after 4 weeks
Laboratory demonstrate fast composting of Ecovio
(68% Ecoflex, 32% PLA) in the conditions present in an industrial composting site
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CO2 Conversion
Mineralization (%)
Global Business Management Biodegradable Polymers
Why are plastics that degradade with help
of additives oxo-fragmentable?
100
90
80
Positive reference
(Cellulose)
70
60
50
40
30
20
10
0
0 50 100 150 200 250
Time (days)
EPI 1
cellulose 1
EPI 2
cellulose 2
EPI 3
cellulose 3
CO 2 evolution in
Vermiculite at 58 °C
PE with additives heated at 90° for 26 days
PE with additives heated at 75° for 26 days
PE with additives untreated
• Complete biodegradability has not been proved scientifically so far.
• Oxodegradables do not compost without pretreatment (strong heat or light
exposition)
• Composting sites have no facilities for pretreatment
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Biodegradation Comparison Test
Natur-Tec ® Compostable Film (based on Ecoflex ® ) vs. Oxo-Degradable PE
Film
Ecoflex-based
Oxo-
Fragmentable
PE Film
8/9/2011
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Source: Northern Technologies
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Biodegradation Comparison Test
Natur-Tec ® Compostable Film (based on Ecoflex) vs. Oxo-Degradable PE Film
Ecoflex-based
Oxo-
Fragmentable
PE Film
8/9/2011
G-KT/B
Source: Northern Technologies
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Biodegradation Comparison Test
Natur-Tec ® Compostable Film (based on Ecoflex) vs. Oxo-Degradable PE Film
Ecoflex-based
Oxo-
Fragmentable
PE Film
8/9/2011
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Source: Northern Technologies
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Global Business Management Biodegradable Polymers
EN 13432 proof of compostability and quality assurance
(results on composting facility in USA)
• Oxodegradable bags were put in composting
facility
• After one year no apparent degradation (see
photo)
• Bag supplier had to pay for clean-up costs
• No problems after community changed to
bags certified with EN 13432 / ASTM D-6400
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Source: BPI
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Global Business Management Biodegradable Polymers
Producers of oxo-fragmentable plastics claim:
we comply with ASTM D-6954-04
• Claim: plastics can be tested according to ASTM D6954-04 for
Plastics that Degrade in the Environment by a Combination of
Oxidation and Biodegradation
• But: ASTM D-6954-04 is not a norm
• It does not specifiy degradation rates
• It is a guide on how to test the degradation of
plastics by means of thermal or photooxidation
Oxo Standard BS8472 is also just a test method w/o pass/ fail cirteria
European BioPlastics warns about misuse of the norm
8/9/2011
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Source: www.astm.org/Standards/D6954.htm
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Viewpoint of the Federal Trade Commission:
biodegradability claims must be substantiated
FTC Announces Actions Against Kmart, Tender and Dyna-E Alleging
Deceptive 'Biodegradable' Claims
“The FTC has charged Kmart Corp., Tender Corp., and Dyna-E International with
making false and unsubstantiated claims that their paper products were
“biodegradable” “. […]
“Since 1992, the FTC’s “Green Guides” have advised marketers that unqualified
biodegradable claims are acceptable only if they have scientific evidence that their
product will completely decompose within a reasonably short period of time under
customary methods of disposal”.
8/9/2011
Source: www.ftc.gov/opa/2009/06/kmart.shtm
G-KT/B
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Summary Biodegradable Polymers
• Strong and sustainable global growth of the biodegradable Polymer
markets based on various growth pillars
• New market at the beginning of the product life cycle
• BASF is leading the market with significant investments
• Biodegradability: commonly acknowledged and recognized norms
with clear pass-or-fail criteria have to be fulfilled
THANK YOU !
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