Eco VS Econ Bioplastics Bioplastics for Eco-Living Dr. Pipat Weerathaworn President of Thai Bioplastics Industry Association (TBIA) 22 June 2010

Outline of Presentation Why Bioplastic ? Global Trend against Plastic Feedstock for Bioplastic Conventional Plastic vs Bioplastic Bioplastics Production Chain Bioplastic Investment in Thailand

Why bioplastics

Petrochemical Structure Products from upstream petrochemical industry Products from downtream petrochemical industry Feedstock Products and applications Natural gas or petroleum Ethylene Propylene Butadiene Benzene Styrene Toluene xylene Polyethylene Polypropylene Polyvinylchloride Polystyrene etc. PE: bag, film, container ethane PP: bag, rope, bottle, insulator PVC: pipe, film propane PS: foam, tape cassette naptha Raw materials for synthetic fiber Costume, cutain, carpet Synthetic rubber Rubber, canvas Raw material for coating, solvent, etc. coating Surfactant Surfactant, shampoo Others Feritlzier, dye, glue http://school.obec.go.th/mclschool/6.2.1.r/12.htm

Plastics & Environment Crude oil leak to the Ocean Killing Birds Pollution leak, hard to clean Block the way out of water Create CO2, make global warming Killing Sea animals

Plastic bags & Environment PLASTIC BAGS & THE ENVIRONMENT Source: www.reusethisbag.com

World on Plastic Base in the Future

Global trend against Plastic Picture source: www.reusethisbag.com Source: Reusable Grocery Bags

Plastic Bag Usage & Bag Ban in USA PLASTIC BAG USAGE : USA VS THE WORLD Source: www.reusethisbag.com Source: Reusable Grocery Bags

Worldwide plastic bags ban BAG BANS : WORLDWIDE Source: www.reusethisbag.com

Feedstock for Bioplastic

Renewable resources Renewable resources are “any natural resources that are capable of being regenerated or replaced by ecological processes on a time scale relevant to their use”. 1st generation 2nd generation Corn Stover Bagasse1 Cassava Corn Grains Sugarcane Sugarbeet Ethanol/ Biopolymers Starch Ferment with Yeast Sugar/ Sucrose Cellulose

Types of Bioplastics Biomass-based Non-Compostable Compostable Bio-PP Bio-PE PLA PHA PBAT PBS Bio-Nylon Non-Compostable Compostable PP PE PBAT PBS PS PVC PVA PCL Petroleum resource

Biodegradable & Compostable Plastic Bury under suitable conditions Conventional plastic Bio-Degradable Bag Compostable Bag Bury under suitable conditions CO2 H2O Degradability Compostability

Bioplastic life cycle Source : TBIA

Conventional Plastics VS Bio Plastics

Conventional PE VS Bio PE

Conventional PE VS Biobased PE Petrobased PE Biobased PE Distillation Fermentation Ethanol Ethylene Ethane Polyethylene

Green Ethylene Cycle http://www.braskem.com.br/

Advantage of Green PE Carbon Footprint: Reduce CO2 emission through its life cycle http://www.braskem.com.br/

Green Ethylene made from sugarcane ethanol are able to absorb CO2 http://www.braskem.com.br/

Plastic VS Bioplastic Price Resin price (USD/lb) Green polyethylene 0.80-1.00 Polyhydroxyalkanoates 2.00-2.75 Polylactic acid 0.85-3.00 Starch-based polymers 1.07-3.00 Conventional Plastic Resin price (USD/lb) polyethylene 0.79-0.94  Polyethylene and Bio-polyethylene price are not much different. But every biobased plastic (from sugar cane) ton removes 2.5 tons of CO2 from the atmosphere. Source: Plastic Technology : Argeni

PET, PS VS PLA

Plastic VS Bioplastic Cost At Naureworks scale, Ingeo can be cost-competitive with PS and PET oil naphtha benzene ethylene xylene stylene MEG PTA PET PS $1.00/lb $0.80/lb $90/barrel Corn starch Lactic acid lactide Ingeo $0.90/lb $5/bushel source: Natureworks LLC

Other examples of plastics VS Bio Plastics PS PET PLA CO2 Emissions (kg CO2/kg polymer) 3.4 1.3 Non-renewable Energy (MJ/kg polymer) 87 82 42 Cost (USD/lb) 1.0 0.8 0.9 PLA: food packaging PET: bottle PS: foam, tape cassette

Bioplastic Products in Thailand Price compared with conventional plastic (%) Spoon   (+) 300 % Fork Cup 16 oz (+) 28 % Cup 20 oz (+) 45 % Tray 160x210x40 mm (+) 55 % Food container 147x147x92 mm (+) 40 %

Examples of Bioplastics Products Heinz Adopts Coca-Cola PlantBottles (30% biobased) "Nucycle", NEC s-bag® GREEN, Electrolux Frito-Lay Unveils ‘Quieter’ SunChips Bags Pritt ECOmfort Correction Roller, Henkel Marketside Produce Packaging, Walmart Activia in PLA cups Urara Personal Care, Shiseido 100% PET bottle, Pepsi Source: NatureWorks, LLC , 2011.

Bioplastics Production Chain Farmer / Feedstock Producer Monomer Producer Resin Producer Compounder Converter End-Users ปัจจุบันมีการผลิตวัตถุดิบทั้งอ้อยและมันสำปะหลังที่ส่งออกเป็นวัตถุดิบไปยังต่างประเทศมากกว่า 80% จึงเป็นโอกาสในการสร้างมูลค่าเพิ่มแทนการส่งออกเป็นวัตถุดิบเพียงอย่างเดียว มีผู้ผลิตต่างประเทศผลิตแลคติก (Monomer) สำหรับอาหารและส่งออกทั้งหมด แต่ไม่มีการผลิต Polymer ขณะนี้ต่างประเทศกำลังพิจารณาลงทุน โดยใช้น้ำตาลและแป้ง ปัจจุบันมีการผลิตพลาสติก จากปิโตรเคมี นำมาทำเป็น compound resin เพื่อเป็นวัตถุดิบในการขึ้นรูปเป็นบรรจุภัณฑ์รูปแบบต่างๆ เพื่อใช้งานบรรจุอาหาร หรือสินค้าต่างๆ มีกำลังการผลิต 6 ล้านตัน มีผู้ประกอบการมากกว่า 3000 ราย มูลค่ารวม 250,000 ล้านบาท การใช้พลาสติกปัจจุบันก่อให้เกิดปัญหาสิ่งแวดล้อมและการกำจัดขยะ

Bioplastic Investment in Thailand PTT Chemical invests in NatureWorks PTT Chemical announced today that it is collaborating with Cargill to form a 50/50 joint venture by investing $US150 million in NatureWorks LLC, the world's leading bioplastics manufacturer and supplier of its broad family of renewable Ingeo™ biopolymers made from plants to plastics and fibers markets worldwide. PTT, MCC forms bio-PBS JV PTT Group and Mitsubishi Chemical Corp join hands in establishing the first sugar-based bio-plastic manufacturing plant in Thailand, in their bid to become a green plastic producer and turn Thailand into the "bio-hub" of Asia. PTT MCC Biochem Co Ltd is established as a 50:50 joint venture. The company will start the plant construction in 2012 for commercial operations in late 2014. With estimated investment of Bt 7 billion, the plant will be capable of producing 36,000 tonnes of BSA from sugar and 20,000 tonnes of PBS per annum. http://www.prnewswire.com/

Thank you! Dr. Pipat Weerathaworn E-mail: pipat.we@pttgcgroup.com Questions & Answers Dr. Pipat Weerathaworn President of TBIA Vice President: Growth Project Management PTT Global Chemical Public Company Limited E-mail: pipat.we@pttgcgroup.com