Bio-Based Materials for Manufacturing: Defossilisation Without the Fairy Tale
Why a Full Switch to Bio-Based Materials Is Still Out of Reach
The dream for consumers and manufacturers alike is to be able to buy and produce products that are 100% bioderived and are either recycled into a circular waste stream or biodegraded efficiently as waste. Unfortunately, this is far from realistic at present, and a majority of the products we use today are fossil fuel-derived, as well as the energy used to power our homes, offices, and leisure. The global chemicals sector consumes hundreds of millions of tonnes of petroleum-based feedstocks every year to produce everything from packaging and insulation to automotive components, electronics and medical devices. Multinationals are investing in solutions to improve the environmental credentials of materials, but a rapid transition to fully green alternatives is not yet on the horizon. In this article, Strategic Allies Ltd (SAL) seeks to show the gradual transition that is occurring to greenify manufacturing, and the hurdles that remain to achieving a fully circular economy.
Challenge 1: Matching the Performance of Fossil-Derived Materials
The first issue faced by manufacturers of goods is the challenge of getting comparative or improved performance from bio-based materials vs fossil-derived incumbents. We have helped a large number of our clients on this path, from the sustainable manufacture of hydrocarbons in the kerosene range to the search for bio-sustainable lubricants and greases. Bioplastics such as polylactic acid (PLA – a plant-based plastic material made from fermented plant sugars) and starch blends tend to have lower tensile strength, heat resistance, and durability compared to well-established plastics on the market. With customers demanding products with a long shelf life (for food and pharma products), rigid shape that holds over time, and other key parameters, finding drop-in bioplastic substitutions for fossil-derived materials, without changing production lines (higher CAPEX), can be challenging. Bioplastics often have narrower processing windows, higher viscosity, and moisture sensitivity, complicating their manufacture and use in end products. That said, solutions and innovative startups are emerging, such as Woodly who featured in one of our recent Tech Spotlight articles. They use renewable wood cellulose as a feedstock and produce thermoplastic granulate that can be used to produce finished plastics.
Challenge 2: Securing a Reliable Bio-Based Feedstock Supply
There is desire to valorise plant-based materials such as corn and wheat waste streams, but these are split between a range of industries such as animal feed (hay for animals), power generation (incineration of biomass), production of aviation fuel, etc. Competition for waste-derived feedstocks is becoming dependent on the geography and can be highly seasonal, as the team at SAL realised when working on a landscape of cellulosic material from agricultural waste for a global FMCG manufacturer. Even when the biomass is abundant, the supply chain from farmers and producers to the manufacturer tends to be fragmented, often relying on individual agreements, rather than a central marketplace for biomass. There is evidence of early attempts to digitize sustainable biomass sources such as BioMassX, but this is not yet comparable to energy or carbon markets.
Solution 1: Mass balance — Scaling Bio-Based Supply Chains
The mass balance approach is a tracking and accounting method that allows multinationals to blend renewable or recycled feedstocks (like bio-based oils or chemically recycled plastics) into existing fossil-fuel processing infrastructure. Through certified accounting from the likes of ISCC PLUS and RSB, this enables large multinationals to claim a percentage of their output as “bio-based” and “circular” without running the risk of being accused of double counting, while ensuring feedstock traceability. SABIC was the first in the industry to obtain ISCC Plus certification for polypropylene compounds and resins produced with feedstock from renewable and recycled sources, with production certified at its Genk, Belgium facility.
Some critics argue that this approach can overstate sustainability credentials (since the physical product a customer receives may include little renewable content), but supporters of this initiative argue that mass balance drives early investment in alternative feedstocks and scales up bio-based supply chains faster than individual companies looking for greener materials could. For multinationals requiring high volumes of materials at a steady supply, this approach is favoured as it is cost-effective and compatible with current infrastructure.
Solution 2: Localised supply chains for Greener Manufacturing
Another method to reduce greenhouse gas emissions during manufacture is to limit the amount of raw materials that need to be transported over long distances for product manufacture. Rather than importing biomass or bio-based intermediates from distant regions, companies are partnering with regional farmers, waste aggregators, and biorefineries to source feedstocks (such as agricultural residues, used cooking oil, or algae) closer to manufacturing sites. BASF represent a strong example of this via their Verbund approach. Their site in Ludwigshafen alone has about 200 production plants, where by-products from one plant are used in others, waste is reduced, and excess heat or steam is recovered. Not only does this decrease CO2 emissions associated with transport of materials, but it can also support the economy of the local area where the manufacturing site sits, building goodwill with local stakeholders. Furthermore, with the geopolitical tensions that exist today, including the Iran war and global tariffs, localised feedstock use can ensure the stability of supply chains, improving the business case for this practice.
Solution 3: Renewable Energy as a Defossilisation Strategy
One of the most common strategies that large corporations have been adopting to reduce emissions associated with manufacturing has been the use of renewable energy. Solar, wind, biomass and green hydrogen are all being investigated and used as alternatives to power generated from fossil fuels. This practice is perhaps the most visible way that companies can show they are cutting Scope 1 and 2 emissions, strengthening their ESG credentials. Strategies employed include on-site renewable installations, power purchase agreements (PPAs) with utility-scale wind or solar farms, and purchasing renewable energy certificates (RECs) to offset grid electricity use. Not only is this practice driven by corporate net-zero requirements, it is also in response to tightening regulations (eg Carbon Border Adjustment Mechanism) and fossil fuel price volatility (the latter of which has been explicitly highlighted by the recent conflict in the Middle East). Treeva, another one of our Technology Spotlight, has developed highly efficient turbines that can be deployed at roadsides and by railways to generate renewable energy from the turbulent airflow of passing vehicles/trains.
What This Means for Blue-Chip Manufacturers
In conclusion, multiple strategies are being trialled and adopted to decouple fossil-derived products from manufacturing. There is evidence that this will benefit not only the planet, by reducing CO2 emissions, but also the companies willing to make the switch early, by localising and protecting their supply chains from external global factors. Strategic Allies Ltd has already undertaken several projects looking at the use of biobased feedstocks in different geographies and continues to receive interest from companies looking to improve their ESG credentials. If you have a challenge in this area, please feel free to reach out to John Allies at john@strategicallies.couk to hear how we have helped others, and how we could be a valuable partner for you.