US Biobased Products Industry: Economic Impact Analysis

paperinsight bioeconomyA detailed report commissioned by the USDA’s ‘BioPreferred® Program’, has been released. Some highlights are:

  • A conservative estimate of 40,000 bio-based products were sold in the USA in 2013 with an estimated value of $126 billion.
  • The bio-based industries contributed $369 billion to the US economy in 2013.
  • The bio-based products industry directly employed 1.5 million Americans in 2013.
  • The biobased products are currently displacing about 300 million gallons of petroleum per year – equivalent to taking 200,000 cars off the road.

The seven sectors considered to be involved the US bio-based products industry were:

  • Agriculture and Forestry
  • Bio-refining
  • Biobased Chemicals
  • Enzymes
  • Bioplastic Bottles & Packaging
  • Forest Products
  • Textiles

A good read for those interested in the bio-based economy and the future potential of bio-renewables.

For the full report, please click here

Metsä Fibre signs financing agreements for the Äänekoski bioproduct mill

paperinsight bioeconomyOn the 10th June, 2015, Metsä Fibre Corporation, part of the Metsä Group, signed financing agreements for the Äänekoski bioproduct mill project and refinanced its existing EUR 270 million revolving credit facility.

The EUR 750 million financing for the bioproduct mill consists of a EUR 400 million Finnvera guaranteed loan, EUR 200 million loan from European Investment Bank (EIB), EUR 80 million loan from commercial banks and EUR 70 million loan guaranteed by Swedish export credit agency EKN. Other lenders, include Danske Bank, DNB Bank, Pohjola Bank, SEB, Swedish Export Credit and Swedbank.

The financing has been coordinated by Nordea.

So, what does this bio-product mill do? In summary, it:

  • Refines wood into bio-materials, bio-energy, bio- chemicals and fertilizers sustainably and with great resource efficiency
  • Uses 100% of the raw materials and side streams as products and bioenergy
  • Does not use fossil fuels
  • Emphasises energy efficiency when choosing equipment and machinery
  • Has an operating model based on an efficient partner network
    • New products will be created in collaboration with various experts joining the network
    • Creates opportunities especially for small and medium-sized enterprises to produce innovative bio-products with high added value.

For the detailed press release, please click here.

For details of the bioproduct mill project, please click here.

The formation of Biomass101 – a consortium which aims to share the sound science of carbon-neutral bio-energy.

paperinsight bioeconomyA consortium of organisations formed from owners of forests, wood suppliers and major pulp and paper manufacturers has been recently established under the banner Biomass101. Collecting and sharing sound scientific information on carbon-neutral bio-energy, their aim is to provide informed information and hold the media accountable for for giving a fair and balanced view of the bio-economy.

The new consortium states:
‘We’ve started Biomass101 because we can’t sit idly by and watch the debate distorted by activists who, while they may have good intentions, are misguided and misinformed. That’s a part of responsible stewardship too—making sure people know the truth about the hands-on work we are doing each day. So we intend to monitor the coverage closely, and hold the press accountable when they get it wrong. As the leading coalition of people who care for and depend upon our forests, we offer a unique, first-hand perspective on these issues. And so we have a responsibility to add our voice to this conversation. Balanced coverage ought to mean scrutiny on the assumptions and motives of biomass critics, too. If they are pushing unrealistic, impractical, and harmful policies, then the press ought to be pointing that out.

The public deserves a fair, objective, and balanced conversation on carbon neutral biomass, one based on sound science, smart public policy, and common sense. Here are some of the core principles we intend to make sure are part of that conversation.

Educated guesses and willfully blinkered arguments that ignore the full carbon cycle do a disservice to a critical public discourse. Let’s have an honest discussion about carbon-neutral biomass, a dialogue that features openness, integrity, and accountability.’

For more details on the consortium, please click here .