GERMANY —German biotech company, BluCon Biotech, and leading chemical company, LG Chem, have signed an investment agreement to commercialize BluCon’s technology to supplement LG Chem’s bio-economy portfolio.
In the medical field, there is a growing interest in finding sustainable and environmentally friendly alternatives to traditional petroleum-based plastics.
Bioplastics have emerged as a promising solution as they are made from renewable sources and can biodegrade naturally, reducing the amount of plastic waste in landfills and oceans.
BluCon Biotech, a bioeconomy company based in Cologne, Germany, is one such company at the forefront of developing bioplastics for medical use.
BluCon’s technology directly ferments lignocellulosic feedstock to lactic acid, creating a sustainable circular bio-economy by producing bioplastic polylactic acid (PLA) that is price-competitive with fossil-based plastics.
BluCon and LG Chem plan to work together to convert non-food lignocellulosic feedstocks into high-purity lactic acid, which can be used to create bio-based and biodegradable plastics.
BluCon’s process uses non-food feedstocks, such as agricultural residues and waste streams, to avoid competition with the food chain and reduce environmental pollution.
BluCon will license its technologies to investors and producers to generate revenue through milestones, royalty, and service fees.
The technology platform can also be used to produce other bio-based products such as ethanol or succinic acid.
In December, BluCon announced that it had secured €931.111 (US$984.65 million) in funding from the German Ministry of Economics and Energy (BMWi) to scale up its proprietary fermentation technology, which uses agricultural residue such as straw to produce polylactic acid (PLA), a bio-plastic.
This technology is unique and highly innovative as it does not require essential foods like sugar beet, sugar cane, or corn as raw materials.
This provides a significant advantage over currently available fermentation processes for L-lactic acid, which is used to produce PLA, and can have a significant impact on reducing the cost and environmental impact of producing bioplastics.
With the increasing demand for sustainable alternatives to traditional plastics in the medical field, the technology developed by BluCon Biotech holds great potential for contributing to the development of environmentally friendly bioplastics for use in medical applications.
Currently, bioplastics represent less than one percent of more than 367 million tonnes of plastic produced annually, as per European Bioplastics facts and figures.
The European Commission has been actively promoting the use of bioplastics as part of its efforts to transition to a circular economy.
The Commission recognizes the importance of bioplastics in reducing resource depletion and environmental impact while also supporting economic growth
LG Chem’s greener future initiatives
At the same time, LG Chem is making significant strides towards a greener future through several initiatives.
In June last year, the company announced plans to construct a hydrogen plant in Daesan, South Korea, which will have the capacity to produce 50,000 tons of hydrogen annually.
The plant will use methane off-gases generated during the naphtha cracking process to create high-purity hydrogen through a chemical reaction under high-temperature steam.
The new plant is expected to reduce carbon emissions by 140,000 tons annually, equivalent to planting 1 million trees. Construction is set to begin in the first half of 2023 and be completed by Q2 2024.
Also, in June, LG Chem signed a Letter of Intent with GS EPS, a green energy supplier, to collaborate on a biomass-based eco-friendly energy project.
The partners plan to construct a joint biomass power plant at Yeosu Complex to produce industrial steam and electricity with waste woods by 2025.
The companies will also cooperate on establishing a Power Purchase Agreement for renewable energy and seek out various business opportunities in the renewable energy sector.
The joint venture will enable LG Chem to produce steam from biomass to run its petrochemical operations within the Yeosu Complex, resulting in significant carbon emission reduction of more than 400,000 metric tons per year, equivalent to planting 2.8 million new pine trees.
Lastly, in November, LG Chem and GS Caltex signed a joint development deal for a fermentation-based production process for hydroxypropionic acid (3HP).
By combining LG Chem’s fermentation know-how with GS Caltex’s process facility technologies, the companies aim to accelerate 3HP development using glucose or glycerol.
Products based on 3HP are expected to enter the biodegradable materials and bioplastics markets in 2023.
The use of bioplastics in packaging materials is critical to achieving several of the SDGs, including those related to health and well-being, industry and innovation, responsible consumption and production, and climate action.
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