CHINA
State initiatives to promote use of biodegradable plastics, strengthen biotech sector / Starch-based materials account for 60% of bioplastics output / Efforts to separate organic waste could spur local consumption
With a per capita plastics consumption of 46 kg in 2009, China’s appetite for plastics was higher than that year’s global per capital average of 40 kg, but still significantly lower than the developed world’s 120 kg per capital plastics consumption, data published by the China Plastics Processing Industry Association (Beijing; www.cppia.com.cn) indicate.

And if those figures held true almost two years ago, amid rising income levels and with a population of 1.3 bn and counting, plastics pollution is turning into a serious problem in the People’s Republic. The government has been acting to curb the use of conventional plastics in a number of ways since the beginning of this millenium, including by promoting the use of bioplastics to replace disposable shopping bags and food packaging, among others.

In 2008, for instance, China banned the use of plastic bags with a thickness of less than 0.025mm, promoting both reusable as well as biodegradable alternatives instead. Three years after the prohibition was first introduced, an investigation by the National Development and Reform Commission (NDRC, Beijing / China; http://en.ndrc.gov.cn) found that China’s major retail outlets had reduced shopping bag consumption by more than 24 bn individual bags, equivalent to about 600,000 t of plastics. Nevertheless, industry experts point out that enforcement of the ban has proven difficult.

The prohibition coincided with the introduction of state council-approved national policies to promote biotech industries, which include the development of biodegradable plastics. Industrial circles expect the government to implement a range of incentives, including tax exemptions, by 2012. The 2008 Beijing Olympics constituted an important testcase, as China claims to have distributed no less than 5m bioplastic carrier bags during the event, showcasing its commitment to protecting the environment.

However, the push for a more sustainable plastics economy is not limited to state policies. In addition, Chinese academics, too, have recognised the importance and urgency for China to develop bioplastics, with R&D into starch-based biodegradable plastics gaining momentum since the 1990s. Today, these types of bioplastics account for about 60% of the country’s total bioplastics production. In addition, recent years have seen China make significant progress in 2nd and 3rd generation bioplastics based on PLA, PBS as well as PHA microbial synthesis.
Local bioplastics output mostly exported
Today there are about 100 manufacturers of bioplastic end-products in China, producing films, bags, food packaging and disposable cutlery, among others. In addition, there are about a dozen larger corporations specialised in R&D and the production of starting raw materials. Market insiders estimate that China now has capacity to produce about 180,000 t/y of starch-based bioplastics, based mainly on corn but also tapioca. In addition, the country’s PBS capacity is estimated at 80,000 t/y, while PLA output is believed to be in the region of 15,000 t/y, and PHA production lies at about 12,000 t/y. The latter feedstock will likely see a boost in the future, as market rumours abound that the Shandong YanKuang Group (Jining, Shandong / China) is planning a new 75,000 t/y PHA project.

Since bioplastics are much more expensive than conventional plastics, domestic consumption has not really taken off yet, despite all government regulations and incentives. As a result, about 90% of China’s bioplastics output is exported to North America, the EU, Japan and Australia. That leaves less than 10,000 t of Chinese-made bioplastics in the domestic market. To illustrate just how small that volume really is: China consumes about 25m t of polyolefins each year.
Biotech sector is dragging its feet
NDRC efforts to develop the country’s biotech industry are beginning to reap some fruit, even though progress is widely considered to be slower than expected. Today, China already boasts a number of larger biotech corporations, including several leading players focused on starch-based bioplastics production. They include Wuhan Hua Li Environmental Technology (Wuhan, Hubei / China; www.psm.com.cn); Biograde (Nanjing, Jiangsu / China); Guangdong Shang Jiu Biodegradable Materials (Dongguan, Guangdong / China; www.999sw.com) and Zhejiang Wafa Ecosystem Science & Technology (Zhejiang / China).

There are also a number of Chinese PBS producers, including Kingfa Science & Technology (Zuhai City, Guangdong / China; www.ecopond.com.cn) and Hangzhou XinFu Pharma (Lin''an, Hangzhou / China; www.xinfuchina.com). Chinese PLA producers include Shanghai Tong-Jie-Liang Bio Materials (Shanghai; www.tjlpla.com) and Zhejiang Hisun Biomaterials (Taizhou City, Zhejiang; www.plaweb.com). In addition, the People’s Republic also boasts local PHA producers, including Tianjin GreenBio Materials (Tianjin; www.tjgreenbio.com) and Ningbo Tianan Biologic Material (Ningbo; www.tianan-enmat.com).

Furthermore, the country’s leading universities and research institutes – including the Chinese Academy of Sciences (Beijing; http://english.cas.cn) – all boast biotech faculties specializing in bioplastics R&D. And their research does not remain in the theoretical realm – all these institutes collaborate with leading industrial enterprises to accelerate progress.
Lobbying for biodegradable meal boxes
One high-priority biodegradable plastics application is disposable meal boxes, which are widely used in trains and lunch outlets. According to state estimates, about 12 bn such boxes are currently used in the country. Of these, only about 3.4 bn are made of environmentally friendly materials. Environmentalists have been lobbying for reforms to mandate that all such meal boxes be made of biodegradable materials.

Bioplastics are also key to helping China control its waste, and specifically, to separate organic from inorganic refuse. Biodegradable plastics play a key role in the carrier bags used to gather organic waste. At the regular state council meeting of March 2011, it was proposed that all local municipalities and 50% of the country’s large and medium sized cities implement waste separation by 2015.

Industry experts estimate that China consumes about 200,000 to 300,000 t/y of garbage bags, about 100,000 t of which should actually be made of biodegradable plastics to ensure proper garbage separation. The state council’s March proposal could very well breathe life into new initiatives to keep organic waste in a biodegradable bag, meaning China's bioplastics production is likely to see a significant boost in the near future.

In a 2010 paper published by Qing Chen and Hong Liu of Chengdu New Keli Chemical Science (Chengdu / China), the researchers drew up a theoretical estimate that Chinese demand for biodegradable plastics would amount to 728,000 t/y in 2010, divided into 263,000 t/y of starch-based plastics, 148,000 t/y of PLA, 102,000 t/y of PBS and 35,000 t/y of other biodegradable materials. These projections are purely academic and do not yet reflect reality on the ground, since Chen and Liu based their prediction on an ideal development pattern, influenced by a low carbon economy, government politics – including the latest 5-year plan –, industry demand as well as crude oil price hikes.

The estimates clearly illustrate the gap between China's bioplastics capacities – what the country can theoretically produce – and actual output, which is but a fraction of plant capacities. In addition, as explained above, most of China's bioplastics output is earmarked for export – another reason why the theoretical estimates of Chen and Liu indicate only what they consider to be ideal domestic demand for bioplastics. Rather than try and market the expensive material at home, currently, Chinese manufacturers are only producing for export.

Notwithstanding maturing technology and support by the relevant government bodies, the development of bioplastics made in China is thus not without considerable challenges. One of the main obstacles is profitability, as manufacturers have to take into consideration the larger public’s lack of enthusiasm or willingness to pay higher prices for an environmentally friendly alternative. While citizens of larger municipalities like Beijing, Shanghai, Guangzhou, Wuhan or Chongqing generally are aware of the problem and accept the higher costs of protecting the environment, close to a billion people living in more rural areas still need convincing.
02.12.2011 Plasteurope.com [220808-0]
Published on 02.12.2011

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