Abstract
The plastics waste crisis, the need to decarbonize, and consumer preferences for renewable products are raising interest in bioplastics, but scale, performance, and biodegradability remain hurdles for wider adoption. CJ Biomaterials (Woburn, MA) is addressing all three with aggressive plans to build capacity and partnerships to develop amorphous PHA (aPHA). This differentiated PHA offers enhanced performance characteristics and enhanced biodegradability compared to the crystalline or semi-crystalline forms of the biopolymer that currently dominate the market.
CJ Biomaterials says aPHA, which it trade- named PHACT™, is a softer, more “rubbery” version of PHA and can also be used as a modifier for other polymers and biopolymers, including polylactic acid and polybutylene adipate terephthalate (PBAT) to improve their functional characteristics and biodegradability. TUV Certified for industrial and home compost, soil biodegradable and marine biodegradable, aPHA also has the potential to develop building blocks for other performance materials made from non-fossil fuel sources.
The company—a division of South Korea–based CJ CheilJedang, which purchased the biopolymer assets from now-defunct polyhydroxyalkanoate (PHA) pioneer Metabolix in 2016—made significant progress on its mission in 2022. In April, the company began manufacturing at a new facility in Pasuruan, Indonesia. With a rated capacity of 5,000 metric tons, the plant focuses exclusively on manufacturing aPHAs.
In November, CJ Biomaterials and NatureWorks (Plymouth, Minnesota) agreed to jointly develop materials combining PHACT and NatureWorks' Ingeo™ PLA. Under the terms of the Master Collaboration Agreement (MCA), the two companies will develop high-performance biopolymer solutions to replace fossil-fuel based plastics in applications ranging from compostable food packaging and food serviceware to personal care, films, and other end products. The initial focus of this joint agreement will be to develop biobased solutions that create new performance attributes for compostable, rigid, and flexible food packaging and food serviceware.
The developed products will also aim to speed up biodegradation, enabling more after-use options consistent with a circular economy model. Compostable food packaging and serviceware will create more solutions for keeping methane-generating food scraps out of landfills, which are the third-largest source of methane emissions globally, according to World Bank.
CJ Biomaterials and NatureWorks also plan to create new applications in films and nonwoven markets and expect to enter into strategic supply agreements to support development efforts. At the time, NatureWorks CEO, Rich Altice, said there have been “very positive early results” incorporating PLA and aPHA.
Most recently, in January of 2023, CJ Biomaterials and CJ HDC biosol (biosol) partnered to develop and commercialize ecofriendly bioplastics. biosol recently completed construction of a new South Korean bioplastic compounding plant in Jincheon, Chungcheongbuk-do, which has capacity to produce 11,000 tons of bioplastics annually. CJ HDC biosol, established in February 2022, is the result of the joint venture between CJ CheilJedang and HDC Hyundai EP, South Korea's largest plastic compounding manufacturer, to create an eco-friendly material compounding business. biosol's new facility will focus on developing sustainable solutions using a variety of biopolymers, such as PHACT, cellulose, polylactic acid and others. The new compounding plant will allow CJ CheilJedang to expand its business area to encompass more eco-friendly materials beyond its PHA technology.
Industrial Biotechnology recently sat down with Max Senechal, Chief Commercial Officer of CJ Biomaterials, to talk about the aPHA technology and its potential to address the growing problem of plastic waste.
With that capacity online, we were able to start working with strategic partners and customers to begin commercializing and helping market adoption of aPHA in a variety of applications.
Other milestones throughout the year include our partnership with NatureWorks, a leading producer of PLA [polylactic acid]. aPHA is an excellent modifier for PLA, and we believe this partnership will help us develop new biopolymer products and open up even more applications for biopolymers. This was a big commercial milestone.
We've also conducted a number of very successful trials and developments with partners and customers across a variety of applications. Some of these are in the process of being commercialized. These include films for packaging applications, including sheet or rigid type packaging applications. We are also working on compostable films for agricultural applications and compostable carrier bags.
In extrusion/thermoforming, we are also working with partners on food trays, cold cups, plates, serviceware, and other applications. Fibers and nonwovens are another big strategic area for us. This would include things like wipes in hygiene and cleaning applications.
Coatings for packaging will also be another strategic area. This application is in an earlier stage of development than the ones I just mentioned but still a promising opportunity. CJ is investing a lot of resources into this application.
We also reached an agreement with Accor Hotels, which owns large hotel brands like Sofitel and Novotel. They have very aggressive sustainability goals, including around plastic and non-renewable materials. We also recently partnered with Yuhan-Kimberly Co, a joint venture between Yuhan and Kimberly Clark in Asia, for the development of fibers and nonwovens for things like wipes, diapers, and masks.
Our strategy is to partner not only with leading polymer producers but also brands that are very determined to improve their ESG position and find more sustainable solutions to their packaging materials or disposables.
The way we are trying to position PHA in the market is not to say, “Use it, don't worry about it, it will biodegrade.” Certainly we do not want to encourage trashing with impunity just because the product biodegrades.
Yes, biodegradability is an advantage. But if you take a step back and look at the bigger picture and the role biomaterials can play in the industry, you have to look at composting. And by composting, I don't just mean industrial composting. It includes opportunities like anaerobic digestion, which can open up a new range of circular solutions for packaging and a range of biopolymer applications. PHAs are not only readily biodegradable, they are also very easy to digest anaerobically. This produces biogas that can be easily recovered as methane, and this biomethane can be used to make power or be an interesting feedstock for making PHAs. We are also looking at using methane as a feedstock for producing PHAs.
I think we can play a really big role in circularity for plastics. The ultimate goal is to have a system that allows you to recover this material, compost it responsibly, and use it again to make useful products or as an energy source. But, if material accidentally leaks into the environment, we know it will biodegrade and not create a long-term issue.
As the biomaterials industry gains more maturity, it is really starting to look at composting as a circular system as opposed to saying, here's a biomaterial, use it however you want, then don't worry about it because it will just biodegrade on its own. Providing a solution that is home compostable is a good option, but I think if you look at the scale of the problem we are trying to solve, we are going to need more than home composting. We will have to be part of a large-scale system that can recover this material, compost it, and then close that circular loop.
Before, there was interest in the bioplastics, but the pressure that exists today on brands to find solutions was not there in the same way a decade ago. Brands were looking for solutions, but they were not being forced to really internalize the cost of incumbent packaging solutions. The only cost that they really incurred was acquiring the materials to make the packaging, make the packaging, and then sell the product. The cost these materials are imposing on society are slowly but surely being brought back into the supply chain and internalized—either in repetition cost or as a true cost through regulation. So, brands feel more pressure to do something about it, and to their credit, they are taking leadership now, both at the end of the supply chain and by reaching back into the supply chain and getting their suppliers organized to leverage new technologies and products.
The other thing that is different today is that the economics are improving—both the basic economics of making the biomaterials but also the total cost of use of packaging materials is leveling the playing field for biomaterials. The technology has also improved significantly. Processing and conversion costs have gone down and scaling up is further bringing down costs.
Policy is also helping. Plastics waste and climate change were part of the discussion ten years ago, but they have risen to the level that they are affecting policy. In Europe, policy on single-use plastics is becoming very stringent, and this is beginning to be the case in the US.
Also, since Metabolix first introduced PHAs, more companies have experience with biopolymers. There's now more players, like Danimer and many Chinese manufacturers. But what I think makes CJ different—and this was a strategic decision—is launching aPHA first, instead of the crystalline or semi-crystalline PHAs, because it's a modifier. aPHA works well with all other PHAs and biopolymers, and in every pilot that we've run, feedback has been positive. Using a modifier allows for much quicker success than in the past. It's not a complete drop-in, but it's close, and it allows us all to succeed. We don't see ourselves as a competitor to any biopolymer. We want to see the entire platform rise.
In terms of our plans, the 5,000 tons is already built. We've announced that we are increasing capacity at the same location by an additional 10,000 tons by the end of 2023. That work is already underway. We've also been public about the fact that we are scouting sites globally for what we refer to as a mega-site that would be in the 50,000-ton range. That is our next increment of capacity. Those plans are still on the rails.
We understand the current economic outlook is uncertain, but we're looking at this long-term. We have good technology and the industry is moving towards biopolymers, so we are moving ahead with our investment plans.
In terms of raising money, CJ Biomaterials is a startup launching a new technology, but we are part of a large, mature company that can help us navigate difficult economic times.
Some regulations are being put in place in other regions that are outright bans but at the same time make it difficult for new technologies to come into the market. Such frameworks can hinder compostable and truly recyclable products that would otherwise create a circular system.
Policies that help fund anaerobic digestion and large-scale composting would also help usher in new technologies and help them be leveraged to their full capacity and potential.