CANADIAN INDUSTRIAL BIOPRODUCTS
WHAT ARE INDUSTRIAL BIOPRODUCTS?
Industrial bioproducts are a new generation of manufactured goods produced wholly or in part from renewable resources, also known as biomass, such as agricultural crops, trees and marine plants, as well as animals, microorganisms and various organic residues. Of course, traditional bioproducts such as food, feed, wood and fibre have been with us for a long time. However, a growing trend is the production of innovative industrial bioproducts. These products fall under three main categories, namely, bio- fuels, biochemicals and biomaterials. Industrial bioproducts can create new value in traditional sectors of the economy such as agriculture, forestry, energy, chemicals and manufacturing and can also form the basis for new industries that develop technology for the sustainable use of renewable resources. Industrial bioproducts and bioprocess technologies offer the potential to capture the economic, environmental and social benefits that form the three pillars of sustainable development.
THE BUSINESS OF BIOPRODUCTS
DRIVERS FOR INDUSTRIAL BIOPRODUCTS
In Canada, as in other countries there are diverse forces driving the trend toward industrial bioproducts.
The desire to reduce our dependence on fossil fuel feedstock
It is now widely accepted that the dependence on non-renewable petrochemical and fossil fuel feedstock must be reduced due to its rising cost and decreasing security of supply. To this end, the use of renewable resources as a feedstock holds great promise due to the decreasing cost of biomass, and advances in process technology, especially biotechnology, which allows biomass to begin replacing petroleum as an industrial feedstock.
The need for sustainable economic development
Industrial bioproducts can provide new opportunities for traditional industries to expand, create jobs and contribute to growth in GDP. Growth in industrial bioproducts can also stimulate much-needed economic development in rural and coastal communities by creating new employment opportunities around the harvesting and processing of raw materials from agricultural, forest and marine sources.
The need to protect our environment and health
There is growing concern over the impact of the use of fossil fuels on human health, climate change and environment including air and water pollution from the release of toxic substances that can accumulate in living organisms. Industrial bioproducts utilize innovative environmental technologies and renewable resources and therefore can help to address these issues. Often an environmental problem caused by an organic residue or by-product can be eliminated by conversion into a profitable new product.
CANADIAN BIOPRODUCTS ON THE MARKET
A wide range of industrial bioproducts is already on the market. Some are simple products like fibreboard, a high-quality construction material made from straw and adhesive resin. Others, such as polylactic acid, a high-performance biodegradable plastic, are more complex and require biotechnology-derived processes (bioprocesses) for the chemical transformation of the raw material. In many instances, multiple innovative products are derived from a single raw material. For example, a company can use wood chips to produce renewable energy as well as natural chemicals.
EXAMPLES OF CANADIAN BIOPRODUCTS
Construction Material
(Bio-material) |
Dow Bioproducts in Elie, (MA), manufactures a high quality fiber board from wheat straw. This product has superior strength, machinability and moisture resistance compared to medium density wood particle board. |
Coatings and Packaging
(Bio-material) |
BioEnvelop Technologies in Laval (QC), uses proteins derived from milk, wheat or soybeans to produce an edible coating that increases the shelf life of packaged food products. |
Paints and Ink
(Bio-chemical) |
Flint Ink Corporation of Canada Ltd. in Concord (ON), uses a proactive approach to produce vegetable oil based inks, radiation curable inks and water-based systems that reduce volatile organic compound levels. |
Lubricants
(Bio-fuel) |
Linnaeus Plant Sciences Inc. in Vancouver (BC), produces engine oil from vegetable oils. |
Diesel
(Bio-fuel) |
BIOX Corp. in Oakville (ON), produces bio-diesel from waste animal fats or vegetable oils. |
Multiple
(Bio-chemical and bio-fuel) |
Ensyn Technologies Inc. in Ottawa (ON), manufactures bio-oil from wood residues using a high-temperature process. The bio-oil is not only used for producing heat and electricity but also yields a chemical that is used to make adhesive resins for products such as wood particle board. |
INDUSTRY STRUCTURE
A growing number of companies are involved in R&D and/ or manufacture of industrial bioproducts in Canada. Most of the companies are small or very small and are focused on niche opportunities. However, some of the companies involved in the development and manufacture of bioproducts are large conventional agrifood (e.g. Cargill, Archer-Daniels-Midland) and forest products companies (e.g. Tembec) that are diversifying to convert residues into profitable products. Others are large conventional chemical (Dupont, Dow) and energy (Sunoco, Shell, Petro Canada) companies that are exploring renewable feedstock as a supplement or a replacement for fossil fuel feedstock.
A preliminary study by Statistics Canada, based on data collected in 2001, has yielded some partial data on the Canadian bioproducts industry, which comprises biotechnology companies that are involved in the production of bioproducts or the use and development of bioprocesses in addition to their main business line.
This data combined with information from a recently published Contact Canada Directory of Canadian Bioproducts gives us a good snapshot of the industry. In aggregate there are approximately 130- 150 Canadian companies that are involved with the development and manufacture of industrial bioproducts.
Approximate Picture of the Canadian Bioproducts Industry by Type - 2003
| |
Bio-Energy and Bio-Fuels |
Bio-Chemicals |
Bio-Materials |
Number of Firms |
20-25 |
80-100 |
30-50 |
Firm size |
>80% are small; a few have more than 100 employees |
>80% are small or very small; several are part of large companies (Tembec) |
>80% are small or very small; several are part of multinational enterprises (MNEs) (Dow Bioproducts) |
Ownership Structure |
>80% are Canadian and privately owned; several are subsidiaries of US and Canadian MNEs |
80% are privately controlled Canadian corporations; few MNE subsidiaries |
>80% are privately controlled Canadian corporations; few MNE subsidiaries |
Key Industry Associations |
Canadian Renewable Fuels Association |
Canadian Chemical Producers' Association |
--- |
Key bioproducts |
Ethanol, biodiesel |
Fine chemicals, chemical intermediates, solvents, surfactants |
Composite materials for construction, automotive and aerospace applications |
CANADIAN ADVANTAGE
Bioproducts related economic activity has the potential to grow rapidly in Canada not only because research is yielding new processes and products but also because it is creating new lines of business within existing corporations that are experienced in commercialization and product marketing. Unlike the biopharmaceutical and health genomics industries, the bioproducts industry has the bulk (>60%) of its pipeline of products in the market or at the approval stage.
Canada's Green Advantage
According to BIOCAP Canada, a university based research foundation, Canada has 7% of global land area and 10% of the world's forest. With it's large, vegetated land mass and well-developed forestry and agricultural sectors, Canada has a "green advantage" for the use of biomass as a source of industrial bioproducts.
Canadian Industrial Strength Supports Innovation
Canada has a vibrant industry sector that can provide the basis for collaborative and strategic alliances. The Canadian bioproducts industry can benefit from the strength of associated industries including biotechnology, chemical, oil and gas, petrochemical, food and agriculture, forestry, advanced materials, textiles, and bioinformatics.
Canada's Business Climate Supports Research and Development
The government of Canada offers strong support for R&D relating to environmentally friendly products and processes. Also, different levels of government are aligning programs and policies to support the growth of this industry.
Sources:
Canadian Bioproducts Directory: www.contactcanada.com
Statistic's Canada Biotechnology Use and Development Survey 2001
Contacts:
Industry Canada - Life Sciences Branch
John Jaworski jaworski.john@ic.gc.ca
Marie-Hélène St-Louis stlouis.mariehelene@ic.gc.ca
|
Life Sciences Gateway
