Hear from our experts on how to reduce our reliance on fossil-based materials without adapting formulations, changing production lines, or modifying supply chains, what the future holds for bio-based formulations and the role adoption, data, and policy play in the conversation
Featuring:
- Lotte Vater. Business Unit Manager, Industrial Solutions | IMCD Germany
- Ana Almeida, Global Marketing Communications Specialist, Coatings & Construction | IMCD
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Today, the chemical industry relies heavily on the use of fossil-based materials. That’s why, manufacturers across industries are seeking innovative ways to introduce renewable alternatives into their production. Although not new, the use of bio-based materials is still in the early stages of adoption. So, why is that? And how can the chemical industry make sustainable strides in the use of these alternative materials?
Let’s explore the progress to date and innovations leading the way for a bio-based future.
Defining bio-based and how it is measured
Bio-based materials are commonly comprised of plants such as corn, wheat, and wood. Bio-based carbon content is measured according to a handful of different standards. Based on these standards, certificates are used to certify products with a bio-based carbon content of 20%-100%. This is measured through the carbon 14 approach. This approach is widely accepted in the industry because it provides an accurate measurement of the percentage of bio-based carbon both for proof documentation and regulatory compliance.
The carbon-14 approach uses a carbon dating method to measure the ratio of carbon-14 to carbon-12 isotopes in the material. Bio-based materials have a higher ratio of C-14 to C-12 than fossil-based or non-renewable sources. That’s because carbon 14 is weakly radioactive, and recently living, meaning bio-based materials still have Carbon-14 while fossil fuel-derived materials do not.
Bio-based adoption will continue to rise
According to our recent survey of industrial markets, adoption of bio-based materials will rise in the next three years. Here's what we know:
- Today, 64% of industrial markets report using bio-based materials.
- Another 21% intend to start using these materials in the next three years.
- This pushes the adoption rate to 85% overall in these markets.
There are three key drivers to the adoption of bio-based materials:
- Customer and consumer demand. Our survey found that customer and consumer demand is the most influential driver of bio-based use today.
- Competitive advantage. Although adoption is rising, our survey still found that 51% of respondents reported a competitive advantage as an added value of using bio-based materials.
- Environmental impact. Between new regulations and the consumer push to meet 2030 and 2050 decarbonization, or defossilisation, goals, companies are prioritizing innovation
Challenges with bio-based materials
For adoption to accelerate, there are still challenges the industry needs to overcome. First, there is limited political support that is creating incentives for companies to invest in sustainable materials. Second, there are limited volumes available of bio-based alternatives in comparison to fossil-based products. And third, we know that bio-based materials are generally more expensive than their fossil counterparts. In fact, 50% of those who use bio-based materials today report cost as their top challenge.
Furthermore, many technical aspects need to be considered when integrating bio-based alternatives. For some materials, “drop-in” solutions are not available and formulation work is required to evaluate if properties can match the product to be replaced. The technical properties must be still achieved, and to reach this goal it often increases the cost of the materials, requires more testing and can be quite time-consuming. This is not said to be an obstacle, but it’s rather an important factor to consider the additional resources required in this switch.
Defining the mass balance and attribution approach
The industry is being pushed to overcome these challenges quickly, find new ways to promote the circular economy and increase adoption of bio-based materials. More recently, what is frequently referred to as the mass balance and attribution approach is starting to gather momentum. At the highest level, this approach allows us to reduce the environmental impact, decrease reliance on non-renewable resources, and contribute to a more sustainable and circular economy.
The mass balance approach can combine traditional fossil-based and bio-based feedstocks within the existing production process. It allows for the controlled mixing of renewable and non-renewable materials at any stage of the supply chain. However, the exact quantities of the renewable material entering the supply chain must be controlled. It is not possible, yet, to achieve a consistent amount of bio-based carbon content, but there are rules that help manufacturers to ensure the traceability of bio-based content along the value chain. Here, the mass balance approach with the option of 100% attribution to one specific product could become a solution. This is a nice alternative because these products are drop-in solutions and do not require adapting formulations, changing production lines, or modifying supply chains.
Measuring the mass balance and attribution approach
Despite these benefits, this approach has been criticized. Our recent industrial survey found that 80% of our respondents reported general concerns about greenwashing. To combat these concerns, there are standards, auditing systems, and supply chain traceability mechanisms in place with the mass balance approach.
For example, to receive mass balance certification, all materials must:
- Pass a feedstock qualification
- Show a clearly defined chain of custody
- Have verifiable and certified product claims
Unlike traditional materials with high bio-based carbon content, the mass balance and attribution approach does not rely on the carbon 14 standard. Rather, the mass balance and attribution approach is verified via a bookkeeping system that keeps track of the inputs and outputs of certified materials and products. In short, the system tracks the traceable amount of bio-based content in the production system and is then audited and certified by independent organizations, such as:
- ISCC (International Sustainability and Carbon Certification) PLUS
- REDcert
- RSB Advanced Products
- Ecoloop
These audits ensure that the product-related claims do not refer to the bio-based content itself. Rather, it shows the share of the product that has contributed to the sourcing of bio-based material or to the substitution of fossil resources. This creates transparency around the sustainability claims made about these products.
Challenges with the mass balance and attribution approach & what is next
Beyond a somewhat complex certification process, there are industry challenges that come with the use of the mass balance and attribution approach.
- Feedstock availability and quality. The sourcing of consistent and sufficient supplies of renewable materials can be challenging due to the variations in the availability and quality of feedstocks both geographically and seasonally. This makes a reliable supply chain and strong stakeholder coordination even more critical in the biomass balance approach.
- Balancing bio-based material use and sustainability concerns. The use of these materials could compete with food production, natural habitats, and other uses for land. There needs to be a balance between the demand for these resources and the need to protect biodiversity. This requires careful planning and responsible sourcing practices.
- Cost competitiveness and market demand. As with all sustainable alternatives, the cost is higher with renewable biomass feedstocks than their competitive fossil-based materials. However, achieving cost competitiveness while maintaining environmental benefits is crucial for market acceptance and scalability of biomass balance products.
Despite these challenges, progress is already being made to better integrate the mass balance approach and there is a bright future ahead as we anticipate wider adoption and supportive policies and regulations to promote it. We anticipate new guidelines, financial incentives, and market-based mechanisms to help overcome these barriers. As adoption picks up, we will simultaneously see higher bio-based quantities being used. With increased adoption, we will have even stronger and more accurate lifecycle data to measure environmental impact. This will create transparency and allow for better reporting standards.
Key takeaways
- Integrating bio-based materials from the beginning of the value chain spurs sustainable change at the onset of the production process, and coatings and industrial sectors have a unique advantage point with this.
- There are many challenges ahead for the use of both bio-based and mass balance and attribution approaches, but with further adoption, data and policy support, the industry will be able to continue to progress.
IMCD Industrial Solutions | Sustainable Solutions Program
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