THE LAST WORD
By John Kelly
Ontario’s Quiet Powerhouse –
THE BIOECONOMY
John Kelly, Vice President, Erie Innovation and Commercialization
Ontario has traditionally seen its economic base primarily supported through the manufacturing sector, and although there has been a recent decline in this sector, it still managed to ship over $258 billion in 2011. Another economic driver for the province is the agriculture and food sector, contributing $66 billion in 2011. Building synergies between these areas is one of the goals for the emerging bioeconomy, and Ontario is emerging as one of the global players in this market. The bioeconomy was really kick-started by the emergence of biofuel production, with ethanol from corn being a mainstay across North America. In Ontario, Greenfield Ethanol in Chatham, Tiverton and Johnstown, Integrated Grain Processors Co-operative in Aylmer, and Suncor in Sarnia produce the majority of fuel ethanol. The biofuel sector is also supported by the production of bio-diesel and methane from agricultural sources. These developments form only one part of the equation for the bioeconomy. The development of petroleum replacement carbon chain-based chemicals presents an immense opportunity. The synthesis of chemical intermediates and end use products from bio-based starting points is gaining momentum. Whether it is through the creation of bio-polymers from plant, animal or algal oils, the creation of starch based chemicals, or the use of plant-based fibres as a structural component, the sourcing of agricultural inputs into the manufacturing sector represents a terrific market for primary producers. Major companies have been creating chemical intermediates from bio-based sources for use in the primary manufacturing sector. This list of companies includes the likes of Lanxess, Bioamber, Ingredion, Jungbunzlauer and more, all of whom have manufacturing plants based in Ontario. This province has global leaders in bioeconomy-based innovation. For example, The Woodbridge Group from Mississauga has produced a soybean, bio-based polyurethane foam which has been incorporated into the Ford Escape. Magna now has bio-based car components as well. Jungbunzlauer, a Swiss company with operations in Port Colborne, Ontario, is a global producer of fermented bioproducts including citric acid, gluconates, special salts and other products. These products have roles to play as intermediates in the food, beverage, pharmaceutical, personal care, cleaners and detergents and other industrial applications such as textiles, plastics and fine films. Life Science Ontario’s 2013 Emerging Life Sciences Company of the Year EcoSynthetix Inc. is producing proprietary eco-based bio-latex binders derived from
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renewable crop resources like corn and potatoes, as a complete replacement for petroleum-based emulsion polymers.Their EcoSphere technology is manufactured into a powdered form using their patented process while still retaining the high performance characteristics of its petroleum-based counterpart. This gives it a significant advantage in that the dry product can be shipped at a much lower cost than the competition. Paints, coating, paper and paperboard, adhesives, carpet and other textiles are but a few of the applications of this bio-based product. And the carbon footprint is two-thirds lower than the conventional product, making it more eco-friendly. The development of the bio-based sector is not without its challenges. The business for these companies is very competitive. Even though they may be able to manufacture these products with perhaps a lower environmental footprint, they must be cost competitive. It takes a long time and a large amount of capital to build infrastructure for a chemical plant, and it must be scalable. It also takes a large investment in research and development to get to the end point desired by the company. Add to this market uncertainty compared to petroleum-based chemicals, government policies that are often time-limited, and investors who want very fast returns. The connection of the chemistry sector to the agricultural sector has benefits well beyond the supply chain model. The impact on rural economies with the development of sustainable markets and diverse inputs offers real possibilities for the creation of new industries, new jobs, and a revitalization of the rural sector. This is very attractive for government policy supporting the bioeconomy. This bio-based manufacturing economy has the opportunity to have the same impact as previous waves of economic development, including manufacturing in the mid 20th century and the information technology boom of the late 90s through the early 2000s. The 21st century will be the bio-based economic century.
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