Periodic Reporting for period 2 - RePLAy (Reinventing bioplastic: CO2 + sunlight = PLA)
Reporting period: 2020-12-01 to 2021-11-30
Dutch SME Photanol BV has developed an innovative platform technology for the production of bioplastic
(precursors) from CO2 and sunlight. Since its foundation in 2008, it has secured >€10M in private and public funding,
grown a strong team of 21 FTE, and scaled-up its technology to TRL7. Because of its global potential impact, Photanol
has been selected as technology pioneer 2019 by the World Economic Forum.
Need – The demand for plastic packaging is predicted to triple by 2050, bringing about well-recognized problems
around limited fossil feedstocks, global warming, environmental pollution, and a lack of material recycling.
Biodegradable bioplastics offer a promising solution to decouple from fossil feedstocks. Especially the most common
bioplastic polylactic acid (PLA), made from lactic acid, will play a prominent role in replacing the conventional
packaging market. PLA production currently depends mainly on food crops as key feedstock. Moreover, it requires
significant amounts of water and land. Hence, if the need for bioplastic continues to grow, there will be competition
for food and fresh water, price volatility and environmental consequences. New bioplastic production technologies
that rely on raw materials, which are abundantly available, are urgently needed to meet the demand for >285 million
tons of packaging by 2050.
Photanol leverages a proprietary technology to produce lactic acid, the key ingredient for PLA, directly out
of CO2 and sunlight. Its revolutionary platform technology is based on the combination genetically optimized bacterial
strains and tailor-made photo-bioreactors, enabling a production efficacy that is 7x higher than crop plants. By
directly converting its limitless available CO2 feedstock into lactic acid, Photanol can price-compete with
petrochemicals and decouple from food feedstock. In the process 1.6 tonnes CO2 are captured per ton lactic acid
and 24x less land and 25x water are used compared to current methods. Photanol has reached important upscaling
milestones obtaining permits and successful construction and operation of a first-of-a-kind outside pilot plant.
In order to de-risk the scale-up to a commercial plant, Photanol has initiated the
construction of a ‘demonstration plant’ which represents a scaled-down version of the commercial plant. This project
aims to address all barriers before scale-up to commercial size. With the operation of the demo plant, technical and
economic parameters will be validated, and a first batch of end product will be produced. All financial and technical
preparations will be made for the construction of the commercial plant. Finally, Photanol will actively pursue
commercial partners to establish a joint venture and obtain first off-take agreements.
(precursors) from CO2 and sunlight. Since its foundation in 2008, it has secured >€10M in private and public funding,
grown a strong team of 21 FTE, and scaled-up its technology to TRL7. Because of its global potential impact, Photanol
has been selected as technology pioneer 2019 by the World Economic Forum.
Need – The demand for plastic packaging is predicted to triple by 2050, bringing about well-recognized problems
around limited fossil feedstocks, global warming, environmental pollution, and a lack of material recycling.
Biodegradable bioplastics offer a promising solution to decouple from fossil feedstocks. Especially the most common
bioplastic polylactic acid (PLA), made from lactic acid, will play a prominent role in replacing the conventional
packaging market. PLA production currently depends mainly on food crops as key feedstock. Moreover, it requires
significant amounts of water and land. Hence, if the need for bioplastic continues to grow, there will be competition
for food and fresh water, price volatility and environmental consequences. New bioplastic production technologies
that rely on raw materials, which are abundantly available, are urgently needed to meet the demand for >285 million
tons of packaging by 2050.
Photanol leverages a proprietary technology to produce lactic acid, the key ingredient for PLA, directly out
of CO2 and sunlight. Its revolutionary platform technology is based on the combination genetically optimized bacterial
strains and tailor-made photo-bioreactors, enabling a production efficacy that is 7x higher than crop plants. By
directly converting its limitless available CO2 feedstock into lactic acid, Photanol can price-compete with
petrochemicals and decouple from food feedstock. In the process 1.6 tonnes CO2 are captured per ton lactic acid
and 24x less land and 25x water are used compared to current methods. Photanol has reached important upscaling
milestones obtaining permits and successful construction and operation of a first-of-a-kind outside pilot plant.
In order to de-risk the scale-up to a commercial plant, Photanol has initiated the
construction of a ‘demonstration plant’ which represents a scaled-down version of the commercial plant. This project
aims to address all barriers before scale-up to commercial size. With the operation of the demo plant, technical and
economic parameters will be validated, and a first batch of end product will be produced. All financial and technical
preparations will be made for the construction of the commercial plant. Finally, Photanol will actively pursue
commercial partners to establish a joint venture and obtain first off-take agreements.
Photanol has realised a demonstration plant in Chemport Europe (Delfzijl) and will continue to work on the development of cyanobacteria-based production technology for feedstock chemicals for like lactic acid, glycolic acid and the olefins ethylene and propylene.
Photanol answers a direct need expressed by brand owners to change current standards in packaging. Among others, this is highlighted by the Ellen MacArthur Foundation’s New Plastics Economy initiative, in collaboration with the United Nations Environment. As part of this initiative, major companies and institutes are actively seeking alternative ways to produce packaging and are publicly disclosing their annual plastic packaging volumes, marking an important step towards greater transparency in today’s plastic system. Photanol is a key enabler of the desired changes in the current plastic system and there is an urgency for Photanol to start delivering its solution by 2024.
Furthermore, Photanol will produce lactic acid at or below the current manufacturing costs with reduced impact on other externalities. These key reductions are on increased efficiency is in land, water and CO2 emissions.
The key value drivers that are important to Photanol’s partners and end users are:
+ Reduction in overall cost price - Photanol’s technology is based on limitless and free feedstock (i.e. CO2 and sunlight). This gives Photanol’s lactic acid a strong competitive advantage: No costs for acquisition of feedstock. Especially at increased volumes, Photanol will be able to offer a reduced cost price, compared to bio-feedstock based competitors. Current economic assessment indicates Photanol’s manufacturing cost price to be in the range that allows for a commercial price of 10 to 20% lower than current market price.
+ Removal of price volatility - By decoupling from both biological as well as petrol-based feedstocks, Photanol offers a commercially attractive, low and stable price, independent of volatility of these feedstock prices. The plastics industry suffers from highly volatile prices of its mainly oil based feedstock. Also, rising food prices due to competition for crop have a high impact on price volatility.
+ Removal of competition for food sources - Photanol’s technology offers major branding values, which allows major brands to answer to the societal demand for ethical and sustainable packaging solutions, as well governmental policies and tariffs
+ Biodegradable branding - Currently 43% of bioplastics produced are biodegradable. PLA is the most attractive form of biodegradable plastic, which offers clients not only to move away from conventional plastics, but also to implement biodegradable packaging solutions for their packaging.
+ Reduction in carbon footprint - Numerous brand owners are looking for ways to decrease their carbon footprint. For example, the Coca Cola company has set the goal to reduce its carbon footprint of every drink by 2020 against its 2010 baseline. This goal is to be achieved by sustainable packaging and recycling. By utilizing CO2 as key feedstock, Photanol’s technology offers an ideal solution for brand owners to answer to the increased
+ Reduced land- and water footprint - Photanol’s technology is highly efficient in its use of land and water in comparison to classic corn-based production. This will offer brand owners the possibility to market products and packaging with minimal land and water footprint.
+ Alternative for unsafe food packaging - Photanol’s bioplastic answers a direct need for replacement of polystyrene food packaging. Major food companies, like Danone have already made the switch towards PLA, as this bioplastic is highly suited to replace the problematic conventional plastic.
Furthermore, Photanol will produce lactic acid at or below the current manufacturing costs with reduced impact on other externalities. These key reductions are on increased efficiency is in land, water and CO2 emissions.
The key value drivers that are important to Photanol’s partners and end users are:
+ Reduction in overall cost price - Photanol’s technology is based on limitless and free feedstock (i.e. CO2 and sunlight). This gives Photanol’s lactic acid a strong competitive advantage: No costs for acquisition of feedstock. Especially at increased volumes, Photanol will be able to offer a reduced cost price, compared to bio-feedstock based competitors. Current economic assessment indicates Photanol’s manufacturing cost price to be in the range that allows for a commercial price of 10 to 20% lower than current market price.
+ Removal of price volatility - By decoupling from both biological as well as petrol-based feedstocks, Photanol offers a commercially attractive, low and stable price, independent of volatility of these feedstock prices. The plastics industry suffers from highly volatile prices of its mainly oil based feedstock. Also, rising food prices due to competition for crop have a high impact on price volatility.
+ Removal of competition for food sources - Photanol’s technology offers major branding values, which allows major brands to answer to the societal demand for ethical and sustainable packaging solutions, as well governmental policies and tariffs
+ Biodegradable branding - Currently 43% of bioplastics produced are biodegradable. PLA is the most attractive form of biodegradable plastic, which offers clients not only to move away from conventional plastics, but also to implement biodegradable packaging solutions for their packaging.
+ Reduction in carbon footprint - Numerous brand owners are looking for ways to decrease their carbon footprint. For example, the Coca Cola company has set the goal to reduce its carbon footprint of every drink by 2020 against its 2010 baseline. This goal is to be achieved by sustainable packaging and recycling. By utilizing CO2 as key feedstock, Photanol’s technology offers an ideal solution for brand owners to answer to the increased
+ Reduced land- and water footprint - Photanol’s technology is highly efficient in its use of land and water in comparison to classic corn-based production. This will offer brand owners the possibility to market products and packaging with minimal land and water footprint.
+ Alternative for unsafe food packaging - Photanol’s bioplastic answers a direct need for replacement of polystyrene food packaging. Major food companies, like Danone have already made the switch towards PLA, as this bioplastic is highly suited to replace the problematic conventional plastic.