Then and Now: 120 Bioeconomy Pioneers look at yesterday, today, inspirations and challenges

Alex Koukoulas

Then: July 2007 was an exciting time for the bio-fuels and bio-products industries. EISA legislation was taking hold; a framework for a carbon tax was on the horizon; oil was heading north towards its $140 per barrel peak; the stock market was driving towards new heights; and the wake of an “Inconvenient Truth” was heightening public awareness for the environment. In retrospect, it was a veritable perfect storm for the industry! This period capped the first full year of my new consulting career and I was working with a long list of companies looking to enter the emerging bio-economy space. I was engaged in a number of feedstock and technical feasibility studies, for a range of companies, including Flambeau River Biofuels and Chevron. In addition, I was preparing several proposals in response to the first round of bioerfinery solicitations from the DOE. During this time, I advised clients that biomass sourcing and upfront processing would be the most important elements of their business; I still say this today!

Now: The industry has gone through incredible changes since 2007. First and foremost, advances in petroleum extraction have reshaped the energy landscape, driving prices to levels that are extremely challenging for commodity products from biomass. Secondly, in the U.S., uncertainty in the regulatory framework is placing undo risks for project developers. As a result, the industry has rightly shifted its focus to chemicals and renewable materials, such as nanocellulose and lignin-based derivatives. In this regard, I continue to advise clients on technical selection, biofeedstock availability and upfront processing, while providing guidance on markets and product applications. Interestingly, I am finding that demand for natural products is far greater today than it was ten years ago and for this we must thank the consumer!

Inspirations: I have spent most of professional career in the pulp and paper industry, where I learned how complex bio-processing systems can be harnessed to produce a range of products, including fiber and specialty chemicals. What I have found is that these principles translate directly to the advanced bioeconomy and it has been extremely rewarding to see how new technologies and market applications can be used to expand the use of our sustainable natural resource base and promote rural development. We have a great story to tell and I am humbled by the opportunity to be part of this incredible industry.

Challenges: The biggest challenge for the advanced bioeconomy is still economics. In this point in time, it is very difficult for bio-based products to compete with incumbents, especially when it comes to commodities. Product selection and mix will continue to be key elements of any business model. More research is needed to bring down the unit cost of production. Improvements to process integration, development of technologies that can increase conversion yield, and adoption of new business models that can bring down the cost of delivered feedstocks are all desperately needed. Government has and should continue to drive solutions in these areas. What is encouraging is that consumer demand is still high and many exciting new technologies will be coming on stream to drive the advanced bioeconomy to new heights.