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Minnesota's fundamental strengths in agriculture, biofuels and innovation may hold the key to the state's potential for leadership in the emerging biobased economy, according to a significant report recently published by the Agricultural Utilization Research Institute (AURI), a research and innovation organization that provides scientific and technical assistance to Minnesota industries and entrepreneurs. The report, entitled "Biobased Products: Focus on Bioplastics Minnesota's Opportunity & Challenge," was developed for AURI by RussellHerder, a Minneapolis-based marketing communications and research firm.
Biobased products are made from biological, renewable raw materials such as corn, soybeans or other agricultural materials. They are often considered a substitute for petroleum-based products and are felt to leave a smaller ecological footprint than fossil fuel sources. The potential of creating new market opportunities for Minnesota agriculture—and Minnesota manufacturers—is outlined in the report.
The report includes findings from a survey of some Minnesota manufacturers regarding their current use of biobased materials (primarily bioplastics), the market drivers and challenges surrounding the adoption and use of these materials, and the intent of manufacturers to increase such use. Nearly two-thirds of Minnesota manufacturers surveyed anticipate increasing their use of biobased material. Most are using these alternatives to petroleum-based materials in molded products, architectural/shelving structures, packaging and point of purchase materials.
Manufacturers said they are getting an increasing number of customer inquiries regarding the use of bioplastics and other materials. At the same time, there is some concern about the potential impact on product performance, warranty claims, and manufacturing processes and costs—factors that need to be explored to ultimately succeed in this emerging area.
"The report makes it clear that Minnesota manufacturers are intrigued by what biobased materials can offer in terms of managing fluctuating petroleum costs and even creating a market niche for themselves," said Teresa Spaeth, executive director of AURI. "But they want to understand more about the characteristics, performance, manufacturing processes and market opportunities. It is important that education and networking opportunities be developed to help Minnesota manufacturers get the information they need so they can be on the vanguard of this emerging market."
The report focuses primarily on bioplastics and biopolymers, which at this point are largely derived from corn, soybeans and biomass sources. While many perceive bioplastics to be primarily focused on disposable or compostable items such as bottles and packaging, the study indicates that significant growth lies in the use of biobased materials as a replacement for petroleum-based plastics in durable products such as electronics, furniture and architectural products. According to the study, the lack of infrastructure for collecting and composting biodegradable plastics is a challenge to the viability of this segment, while durable plastics offer a number of advantages in terms of cost, life cycle and market potential.
Biobased materials are finding their way into thousands of products from food packaging to furniture cushions. The report highlights a number of Minnesota-based companies that are using biobased materials in manufacturing a wide range of products from architectural signage to office work surfaces to windows. There are also a number of companies developing green chemicals and other materials that use biobased sources to replace fossil fuel. "Environmental, regulatory, economic and human health considerations are significant drivers for the biobased product market," Spaeth added.
The report also outlines the potential of leveraging Minnesota's strength in biofuels to capitalize on the emerging biobased economy. According to the report, a biodiesel or ethanol plant could become a centerpiece for a biorefinery "campus" including incubators for green chemical companies, biomaterials research and development, and manufacturing using biobased materials.
"To a great degree, Minnesota is the birthplace of modern bioplastics, since one of the global leaders in bioplastic resins, NatureWorks™, was created here," Spaeth said. " As home to some of the world's leading innovation companies and as a leader in agriculture and biofuels production, Minnesota has a unique opportunity to transform agricultural products—from crops to biomass to forestry waste—into economic value and vitality all across the state through the development and manufacturing of biobased products."
The report also highlights groundbreaking research at the University of Minnesota and North Dakota State University. The report includes comments gleaned from some four dozen interviews with biobased materials experts, manufacturers, agriculture leaders, researchers, economic development officials, start-up companies and others.
"When you read this report, you are simply amazed at the innovation, research and vision that are already in place in Minnesota," Spaeth said. "What is needed are opportunities to connect the dots—to bring university researchers, manufacturers, raw materials suppliers, start-up companies, policy makers and the financial and investment community together to discover even more ways to realize the potential that the biobased economy presents not only to Minnesota agriculture, but to the vitality and growth of our entire state."
AURI is hosting a one-day event focused on the study’s findings and implications, and possible next steps to help Minnesota establish a leadership position in bioplastics and biobased products. Policy makers, manufacturers, agriculture leaders, researchers and industry experts are encouraged take part. The event will be held on Wednesday, August 17 from 10 a.m. to 4 p.m. at the Country Inn and Suites in Mankato, MN. For more details regarding the event, please contact AURI at (507) 835-8990
"This study is just the beginning. We intend for it to lead to actionable steps for Minnesota to become a leader in the biobased economy," Spaeth said. "AURI is focused on results and we are committed to being a catalyst for change and to create opportunities for people to work together to strengthen agriculture and communities all across Minnesota."
The AURI report was funded in part by the Minnesota Soybean Research and Promotion Council. For a copy of the report, visit www.auri.org.
Minnesota's fundamental strengths in agriculture, biofuels and innovation may hold the key to the state's potential for leadership in the emerging biobased economy, according to a significant report recently published by the Agricultural Utilization Research Institute (AURI), a research and innovation organization that provides scientific and technical assistance to Minnesota industries and entrepreneurs. The report, entitled "Biobased Products: Focus on Bioplastics Minnesota's Opportunity & Challenge," was developed for AURI by RussellHerder, a Minneapolis-based marketing communications and research firm.
Biobased products are made from biological, renewable raw materials such as corn, soybeans or other agricultural materials. They are often considered a substitute for petroleum-based products and are felt to leave a smaller ecological footprint than fossil fuel sources. The potential of creating new market opportunities for Minnesota agriculture—and Minnesota manufacturers—is outlined in the report.
The report includes findings from a survey of some Minnesota manufacturers regarding their current use of biobased materials (primarily bioplastics), the market drivers and challenges surrounding the adoption and use of these materials, and the intent of manufacturers to increase such use. Nearly two-thirds of Minnesota manufacturers surveyed anticipate increasing their use of biobased material. Most are using these alternatives to petroleum-based materials in molded products, architectural/shelving structures, packaging and point of purchase materials.
Manufacturers said they are getting an increasing number of customer inquiries regarding the use of bioplastics and other materials. At the same time, there is some concern about the potential impact on product performance, warranty claims, and manufacturing processes and costs—factors that need to be explored to ultimately succeed in this emerging area.
"The report makes it clear that Minnesota manufacturers are intrigued by what biobased materials can offer in terms of managing fluctuating petroleum costs and even creating a market niche for themselves," said Teresa Spaeth, executive director of AURI. "But they want to understand more about the characteristics, performance, manufacturing processes and market opportunities. It is important that education and networking opportunities be developed to help Minnesota manufacturers get the information they need so they can be on the vanguard of this emerging market."
The report focuses primarily on bioplastics and biopolymers, which at this point are largely derived from corn, soybeans and biomass sources. While many perceive bioplastics to be primarily focused on disposable or compostable items such as bottles and packaging, the study indicates that significant growth lies in the use of biobased materials as a replacement for petroleum-based plastics in durable products such as electronics, furniture and architectural products. According to the study, the lack of infrastructure for collecting and composting biodegradable plastics is a challenge to the viability of this segment, while durable plastics offer a number of advantages in terms of cost, life cycle and market potential.
Biobased materials are finding their way into thousands of products from food packaging to furniture cushions. The report highlights a number of Minnesota-based companies that are using biobased materials in manufacturing a wide range of products from architectural signage to office work surfaces to windows. There are also a number of companies developing green chemicals and other materials that use biobased sources to replace fossil fuel. "Environmental, regulatory, economic and human health considerations are significant drivers for the biobased product market," Spaeth added.
The report also outlines the potential of leveraging Minnesota's strength in biofuels to capitalize on the emerging biobased economy. According to the report, a biodiesel or ethanol plant could become a centerpiece for a biorefinery "campus" including incubators for green chemical companies, biomaterials research and development, and manufacturing using biobased materials.
"To a great degree, Minnesota is the birthplace of modern bioplastics, since one of the global leaders in bioplastic resins, NatureWorks™, was created here," Spaeth said. " As home to some of the world's leading innovation companies and as a leader in agriculture and biofuels production, Minnesota has a unique opportunity to transform agricultural products—from crops to biomass to forestry waste—into economic value and vitality all across the state through the development and manufacturing of biobased products."
The report also highlights groundbreaking research at the University of Minnesota and North Dakota State University. The report includes comments gleaned from some four dozen interviews with biobased materials experts, manufacturers, agriculture leaders, researchers, economic development officials, start-up companies and others.
"When you read this report, you are simply amazed at the innovation, research and vision that are already in place in Minnesota," Spaeth said. "What is needed are opportunities to connect the dots—to bring university researchers, manufacturers, raw materials suppliers, start-up companies, policy makers and the financial and investment community together to discover even more ways to realize the potential that the biobased economy presents not only to Minnesota agriculture, but to the vitality and growth of our entire state."
AURI is hosting a one-day event focused on the study’s findings and implications, and possible next steps to help Minnesota establish a leadership position in bioplastics and biobased products. Policy makers, manufacturers, agriculture leaders, researchers and industry experts are encouraged take part. The event will be held on Wednesday, August 17 from 10 a.m. to 4 p.m. at the Country Inn and Suites in Mankato, MN. For more details regarding the event, please contact AURI at (507) 835-8990
"This study is just the beginning. We intend for it to lead to actionable steps for Minnesota to become a leader in the biobased economy," Spaeth said. "AURI is focused on results and we are committed to being a catalyst for change and to create opportunities for people to work together to strengthen agriculture and communities all across Minnesota."
The AURI report was funded in part by the Minnesota Soybean Research and Promotion Council. For a copy of the report, visit www.auri.org.
