an economic impact analysis of the u.s. biobased products ... wheat.pdf · case study: patagonia...
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Marie WheatIndustry Economist, USDA BioPreferred® ProgramBIO World Congress on Industrial BiotechnologyJuly 22, 2015Montreal, Canada
Driving the Bioeconomy: The Economic Impact of the Biobased Products Industry
An Economic Impact Analysis of the U.S. Biobased Products Industry
• Mandated by the 2014 Farm Bill
• Report released to Congress June 17, 2015
• First federally-sponsored economic report of its kind for biobased industry
• Examines and quantifies the effect of the U.S. biobased products industry from an economics and jobs perspective
Key Findings
Key Findings: Economic Impact
• Based on 2013 data:
– $369 Billion annual contribution to the U.S. economy from biobased industry
• Total contribution of the biobased products industry:
– 4 million American jobs
Key Findings: Continued
• Minimum of 300 million gallons of petroleum replaced annually due to the use of biobased products
• Equivalent to taking 200,000 cars off the road each year
Key Findings: Continued
• 20,000 products registered with the BioPreferred Program
• Based on industry findings, the authors believe a conservative estimate is that there is a minimum of 40,000 biobased products currently on the market.
Case Study: Patagonia
• Yulex worked with Patagonia’s engineers to replace petroleum or limestone-based neoprene used in wetsuits with a biobased alternative.
• Used the unique properties of the guayule plant, a hearty desert shrub native to the southwestern United States.
• Guayule rubber provides better elasticity and softness in the finished material than traditional neoprene and lasts a long time.
• Patagonia shared this proprietary technology with other wetsuit competitors.
Case Study: Ford and Soy Based Automotive Components
• Developed a soy based foam which is being shared with other manufacturers with potential applications including mattresses, child seats, and packaging manufacturers.
• Today, over three million Ford vehicles contain soy foam.
• Also, replaced glass fibers with natural straw-based fibers. Straw polypropylene being used in the Ford Flex. Made from the remains from wheat products after the wheat is removed.
Case Study: Coca-Cola and the PlantBottle™
• Today, the PlantBottle™ 1.0 program is using 30% ethylene glycol.
• Goal is to develop PlantBottle ™ 2.0 -- a 100% plant-based bottle.
• Most feedstocks have been using Brazilian sugar cane, molasses from India, and sugar beets from Europe.
• There are efforts underway to help accelerate investments in the U.S. feedstock sources to help create jobs, farmer value.
Authors’ Recommendations
• Increase government purchasing and tracking
• Increase the visibility of the USDA Certified Biobased Product label
• Develop NAICS codes for biobased products
• Support production credits, tax incentives, and specific investment incentives
• Appropriate funding for the BioPreferred Program
• Continue support for the USDA BiorefineryAssistance Program and Biomass Crop Assistance Program
• Promote and increase both government and private sector purchasing of biobased products
• Fund USDA/DOE Biomass Research and Development Program
• Ensure biogenic carbon is treated as carbon neutral in EPA’s Carbon Accounting Framework
• Incentivize renewable/”Green” chemistry in TOSCA reform legislation
• Legislation to improve logistics infrastructure to support biobased production
BioPreferred® Program
• Mandatory Federal Purchasing
• Voluntary Labeling
BioPreferred Through the Supply Chain
Farmer Supplier Manufacturer Distributor Retailer Consumer
Mandatory Federal Purchasing of Biobased Products
• Requirement for:
- Federal Agencies
- Federal Contractors
• USDA identifies product categoriesthat make sense for mandatory purchasing
Examples of Product Categories and Associated Minimum Biobased Content
Product Category Minimum Biobased Content
Countertops and Solid Surface Composites 89%
Gasoline Fuel Additives 92%
Paint Removers 41%
Crankcase Oil 25%
Floor Cleaners and Protectors 77%
2 Cycle Engine Oil 34%
Slide Way Lubricants 71%
Voluntary Labeling Initiative
• > 2,200 USDA Certified Biobased Products
• Biobased content is third-party tested & verified using ASTM D6866.
• Product’s biobased content must meet standard for product category in US CFR Title 7 §3201
– If not in §3201, minimum biobased content requirement is 25%
Why Have Products Certified?
• "We selected the USDA BioPreferred label since it’s a nationally recognized certification that is broadly accepted across industries. As a sustainable materials company we found the BioPreferred certification to provide true, fact-based value in a marketplace that is fraught with baseless sustainability logos and marks.”
Gavin McIntyre, Co-Founder and Chief Scientist of Ecovative
Ecovative Design, packaging from agricultural waste and mushroom mycelium
News Releases for Label
Economic Impact Globally
International Cooperation
• Collaboration on promoting the development and use of biobased products
– Standards Harmonization
– Best Practices
– Linkages
Open-Bio European Union Report: BioPreferred Cited as Best Practice
“USDA BioPreferred shows that a focused governmental action makes it possible to set down clear rules of what can be considered a bio-based product, to award one clear label and compile a very comprehensive product list, combining it with a preferred procurement programme for public authorities.”
Updates from the USDA BioPreferred Program
BioPreferred Newly Designed WebsiteImproved company tools, catalog, and information organization
Continued Support for BioPreferred from Congress and White House
• 2014 Farm Bill expanded the BioPreferred program and reauthorized for 5 years
• New Executive Order 13693, Planning for Federal Sustainability in the Next Decade, increases federal agency accountability for meeting BioPreferred requirements.
2014 Farm Bill Changes to BioPreferred® Criteria
2014 Farm Bill changed to:
• BioPreferred considers products “that apply an innovative approach to growing, harvesting, sourcing, procuring, processing, manufacturing, or application regardless of market entry”
• Final Rules incorporating innovative products into the program published June 15, 2015.
• Next rulemaking will be to designate intermediates and complex products. Proposed rule will publish this winter.
