Polyhydroxyalkanoates (PHAs) are biodegradable natural polyesters produced by various bacteria in the form of intracellular granules for energy/carbon storage under insufficient nutrient conditions. PHAs can be differentiated into more than 150 types depending on their basic building blocks and side chains. The side chain is mostly a saturated alkyl monomer. Most PHAs are chiral compounds as the synthesis is stereospecific. Naturally, only R-configured PHAs are found. Depending on the length of the carbons in the chain, PHAs can be classified into short-chain, Medium Chain, and Long Chain PHAs.
The major differentiating factor for PHA from other bioplastics is its biodegradability. PHA is among the very few polymers that can biodegrade even under the ocean. High biodegradability of the PHA is one of the key drivers for the market. PHA is fed to living organisms in all environments (including the ocean) and hence it biodegrades under every environmental condition. However, the rate of biodegradation varies accordingly, depending on various external conditions like humidity, temperature, oxygen, etc. The biodegradability of PHA is an advantage where the separation of plastics is not feasible or possible.
Global PHA demand was estimated to be over 55 Kilotons in 2023. The PHA market has witnessed strong growth during the past five years. The global PHA market has grown at an annual average rate of 13% between 2016-2021 to the current levels primarily driven by increased PHA demand from packaging applications. In the coming years, the PHA market is projected to cross 280 Kilotons, implying a CAGR of 18% from 2023 to 2032. The high growth rate can be attributed to increasing PHA consumption in North America and Western European countries. PHA has started gaining traction in recent years mainly due to its biodegradability.
PHAs are biodegradable under most of the surrounding conditions and even under the ocean. The PHA is being marketed as the green & sustainable solution to conventional plastics such as PP, LDPE, and HDPE. PHA is produced from variety of feedstocks including waste food, agricultural crops, oils, and cassava starch. However, the Carbon neutrality of these feedstocks is still undetermined. At present, only PHA produced from tertiary feedstock such as food waste can be said carbon negative. Majority of PHA producers are using primary feedstock such as Canola oil, sugar roots, and corn starch. Carbon neutrality/negativity of the overall PHA cycle is a key question on the sustainability claims of various PHA manufacturers.
In 2023, global PHA capacity was estimated to be more than 70 kilotons. Major PHA players such as Danimer Scientific, Newlight Technologies, and RWDC industries have announced their capacity expansions. The global capacity is projected to cross 550 kilotons in the coming years. Currently Danimer Scientific is the largest producer of PHA in the world, with its PHA production facilities at Bainbridge and Winchester. The company has started the expansion of both of its facilities, and the total capacity of the company will reach 144 kilotons by the end of 2024. Newlight Technologies also started their commercial PHA production facility in September 2020. The facility has an annual production capacity of 23 kilotons. Other major producers are RWDC Industries, Ecomann Technologies, CJ CheilJadang, Tianjin GreenBio, and Kaneka.
Global PHA Demand By Application - 2016-2032 (KT)
In May 2023, TotalEnergies signed a MoU with China-based PHA producer - Bluepha to expand the adoption of PLA and PHA-based products in China. Under the agreement, TotalEnergies and Bluepha will promote and facilitate the use of their PLA and PHA technologies in various market applications within China
Kaneka is the only producer of PHA in Japan. It recently invested JPY 15 bn (around EUR 126 million) to expand production of PHA at its site in Taksago, Japan by 5 kilotons. The expansion is scheduled to be completed by early 2024 and will lift the company’s capacity to 20 kilotons of PHA annually. Kaneka markets its PHA under brand name ANOILEX. It has focused on the production of PHA suitable for packaging films and agricultural mulch films.
Newlight Technologies has also signed an agreement with various textile, packaging, and consumer goods companies. Nike has signed an off-take agreement with Newlight to purchase PHA for their apparel business. Furniture & packaging company IKEA signed an agreement with Newlight in 2016. According to the agreement IKEA will purchase 50% of the PHA from Newlight’s 23 kilotons plant in California. IKEA targets to be a ‘Carbon Negative’ company before 2030 and hence moving towards sustainable solutions such as PHA. Newlight has also signed various agreements with consumer goods companies such as The Body Shop and major electronic producers such as Dell and Hewlett-Packard (HP).
In March 2017, RWDC Industries entered a long-term R&D agreement with the University of Georgia for the development of its Solon PHA. In 2019 the company successfully manufactured PHA-based straws. In 2020, RWDC raised USD 133 million in its series B funding round which would be used in the expansion of its Athens facility.
In 2016, CJ CheilJedang acquired assets of Metabolix (including IP rights). The company commissioned its first PHA plant in Pasuruan, Indonesia. The plant stated commercial operation in the second half of 2022 and with the production capacity of 5 kilotons. The plant will use Palm Oil as feedstock for PHA production. CJ Bio (a division of South Korea-based CJ CheilJedang) is the sole producer of an amorphous PHA, it is a softer, and more rubbery version of the PHAs
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