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Bioplastics
Frequently Asked Questions (FAQs)
June 2008

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INDEX

1 Definition

2 Market Development

How large is the bioplastics market – current and future?

How large is production capacity for bioplastics?
What factors are influencing market development?

3 Areas of Application

What are bioplastics current areas of application?

4 Costs

How are the cost structure and competitiveness of bioplastics?

5 The Environment

Environmental Profile of Bioplastics

Bioplastics versus conventional plastics
Environmental and economical advantages of bioplastics
End-of-Life: Recovery Options
What is Organic Recycling?
Composting of bioplastics (aerobic treatment)
Biogasification (anaerobic treatment)
So-called ‘oxo-degradable plastics’ not suitable for organic recovery
What is Thermal Recovery?
What is Mechanical Recycling?
Landfill – current status and future development?
Conclusion

6 Bioplastics and food?

Bioplastics versus biofuels

Conclusion

7 Politics

What can politics achieve to assist market introduction & technology development?
Political measures

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1 Definition

What are Bioplastics?

Two different concepts underlie the term ‘Bioplastics’:

a) Compostable plastics certified according to EN13432 and based on renewable

(biobased) and/or non-renewable (fossil) resources

The focus here is on their functionality "compostability".

Industrial users, consumers and waste management operators need to be able to

identify products and assign them to composting where appropriate. The
compostability of plastics therefore must be proven by recognised testing standards
(Europe: EN 13432, the legally binding standard for the compostability of plastics in
all EU member states or EN 14995, USA: ASTM D-6400, other countries: ISO 17088).
Products made thereof should be certified by independent third party certifiers and
labelled with the trademarked "seedling" logo.

A large proportion of certified compostable plastic products available on the market

today contain a high proportion of renewable raw materials. There are also synthetic
polymers (based on fossil raw materials), which are compostable according to the
above-mentioned standards and certification.

b) Biobased plastics produced on the basis of renewable resources

The focus here is their raw materials basis.

Rather than using fossil carbon in manufacturing conventional plastics, bio-based

polymers use carbon from renewable resources such as sugar, starch, vegetable oils
or cellulose in production. Corn, potatoes, cereals, sugar cane and wood are the
most commonly used feedstocks.

The proportion of renewable carbon used in the product can be determined using
analytical methods e.g. ASTM D-6866. Bio-based polymers are not in all cases
biodegradable and compostable.

Examples:

For a):
Compostable polymer products: starch based materials (starch blends), PLA
(polylactide), PHA (polyhydroxyalkanoate) type polyesters e.g. PHB, PHV, cellulosic
materials from chemically modified cellulose; other materials produced from chemically
modified cellulose; specific synthetic polyesters made from crude oil or natural gas.

For b):
Bio-based polymer products (here: not compostable): Specific polyesters e.g. based on
bio-propanediol (PDO); specific polyamids e.g. made from castor oil; in future also e.g.
polyethylene (PE) or polyvinylchloride (PVC) based on bio-ethanol (e.g. from sugar cane).

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2 Market development

How large is the bioplastics market – current and future?

European Bioplastics estimates that in 2007, all bioplastics applications comprised approximately
75,000-100,000 tons of the total 48 million ton European plastics market. Annual growth is
considerably higher than 20%.

Market figures currently published by European Bioplastics are based on information which includes
member surveys and publications including market studies and expert opinion. More detailed facts
and figures (statistics) on market development will become available as the bioplastics’ market share
increases.

The majority of bioplastics have only recently completed the basic development and are thus on the
brink of broader market introduction.

The EU countries with comparably advanced market development are England, Italy, Netherlands
and Germany, followed by Belgium, France, Austria, Switzerland and Scandinavia. Market
introduction of bioplastic products has already started in most of the EU countries.

Experts regard a technical application potential of 5-10% of the total plastics market as realistic. This
estimation is based on biodegradable polymers, which have been on the market for several years. It
does not take into account bio-based PE (polyethylene), which, it was recently announced, will start
production in 2009.

With regard to the theoretical technical market potential, the market for bioplastics in Europe could
well reach a magnitude of about 5 million tons by 2020. The actual growth will depend on various
factors, which will be outlined in more detail below. European Bioplastics has commissioned a study
to analyse the potential for bioplastics (for publication at the end of 2008).

How large is production capacity for bioplastics?

Global production capacity will quadruple from nearly 300,000 tons today to well over a million tons
by 2011.

Over the past twelve months many companies have announced the beginning or expansion of
production. Investment is occurring across all areas – in compostable bioplastics such as starch
blends and PLA, but also in new polyesters such as PHA, which are due to become commercially
available at the end of 2008. Two companies have announced that in future they will produce bio-
based polyethylene from bio-ethanol. This represents a completely new development and is a sign of
amazing change. Bio-based PVC was announced for the first time in 2008. If all these
announcements come to fruition, global production capacity will quadruple from nearly 300,000 tons
today to well over a million tons by 2011.

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What factors are influencing market development?

Factors exercising an influence on the development dynamic, in particular:

 Investment conditions for the construction of larger production plants

 The development of raw materials prices (agricultural versus fossil)
 Willingness of industrial users to introduce new products into the market
 Political and legal framework conditions which can hamper or promote the market
introduction of bioplastics

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3 Areas of application

What are bioplastics current areas of application?

Bioplastics are generally used where functionality (fit for purpose) and environmental performance
offer benefits. A purchasing cost surcharge can pay itself off when disposal or labour costs are lower
(see 4. below). Market studies have revealed a generally very high consumer acceptance of
bioplastics in many countries.

The following applications or product segments are exhibiting high growth rates:

 Compostable waste bags to collect organic waste and carrier bags, which can also be
used as organic waste bags. They can increase the volume of collected organic waste,
therefore reduce landfill, and improve the composting process and compost quality. Such
bags – most of them are bio-based too - are often regarded to be a key market for
bioplastics with regard to the sizeable market volume and valid arguments in favour of their
use.
 Biodegradable mulch film which can be ploughed into the field once it has been used,
offering the opportunity to reduce labour and disposal cost.
 Catering products for large events or service packaging for snack food sales. They can
simply be composted after use along with any remaining food scraps. The available
compostable product portfolio includes trays, cups, plates, cutlery and bags amongst others.
 Film packaging for foods with short shelf life which require attractive presentation, or to
extend shelf life. These include compostable pouches, netting and (foam) trays for
(organically produced) fruit and vegetables, and recently also fresh meat. The simple disposal
and the fact that the sale period could in part be extended are beneficial to retailers. Spoiled
foodstuffs can be recovered via composting with no need for separation of packaging and
contents at point of sale.
 Rigid packaging such as containers and bottles. Bottles made from PLA are used for non-
sparkling beverages and dairy products.
 Many other products make use of their specific functionalities, such as tyres with starch
materials incorporated to reduce hysteresis and fuel consumption, diapers with silky soft-
touch back sheet, urns etc.

In the initial phase of market introduction, products are often used in niche markets. The level of
technical complexity of bioplastics packaging is increasing: Co-extruded double or multiple layer film
products have been commercialised recently. This involves an advantageous combination of
bioplastics such as starch-based materials, cellulose films and PLA films, which are already available
on the market.

The development of durable products such as those in consumer electronics (laptop and mobile
phone casings etc.), in leisure (sporting shoes, ski boots etc.), and in the automobile industry (interior
trim, spare tyre covers) is in an early state of market penetration. Japan is currently the main centre
for this development. The focus is equally on functionality, for example low electrostatic charging,
and sustainability criteria such as reduction of CO2 emissions.

In the field of medical technology, special biodegradable plastics have been in use for some time as
stitching materials and for decades for screws or implants (niche products with extremely high
prices).

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4 Costs

How are the cost structure and competitiveness of bioplastics?

The situation for bioplastics is typical for innovations:

 High research and development costs

 High production costs caused by small scale production
 Optimisation potential of production facilities not exploited to the full
 Considerable price differential to conventional commodity products

The increased use of bioplastics and biopackaging by consumers in Europe shows that the price
differentials can be accepted in specific application fields, e.g. packaging for organic food. Users are
also considering other factors for their buying decision, such as technical performance (e.g. longer
product life), image-creation and, if feasible, reduced disposal costs in the composting of used
products.

The selection of the “right” application is the key to successful marketing. The costumer’s choice has
shaped today's commercialised product portfolio. Governmental programmes have been
established, for example in the Netherlands and in Germany, providing political support (subsidies) to
promote the market introduction of compostable or bio-based packaging products respectively.

Given bioplastics’ high content of renewable resources, they have the advantage that they are less
dependent on price movements in fossil resources (crude oil).

The price of bioplastics has continued to fall over the past ten years. Their competitiveness over
conventional plastics should also continue to improve into the future through more effective
processes, possible economies of scale and simultaneous increasing competition from new market
players.

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5 The environment

Environmental Profile of Bioplastics

The bioplastics industry is working intensively on achieving the best possible environmental profile
for their products. Life cycle assessment is being utilized to optimise processes and the overall
environmental performance of products. The use of renewable resources in the material may offer a
major advantage of bioplastics over conventional plastics made from crude oil as far as CO2
emissions are concerned.

Factors such as energy consumption and CO2 emissions in product manufacture, processing and
disposal determine the environmental profile of a product. Comparison of the environmental
performance of products made from bioplastics with conventional products can only be achieved
through a product-related life cycle assessment (LCA) corresponding to the internationally binding
ISO 14040 et seqq. standards. Such an evaluation assesses all the steps in the life cycle of the
product, for example raw material production, processing, transport, use and disposal.

Bioplastics versus conventional plastics

It must however be taken into consideration that a direct comparison of conventional plastic
products with bioplastic products may lead to an inappropriate image. Conventional plastics are
technically mature, high quantity products (commodities). Bioplastics, on the other hand, are in an
early stage of development, and their production and distribution processes and recycling paths are
not yet optimised. The comparison therefore merely provides a snapshot. Disregard for this could
lead to over-estimation of the status quo with the consequence that further development of
bioplastics could be slowed or halted. Barriers to innovation with far reaching consequences would
result.

On the other hand, growth in the market for products made from bioplastics can ensure the financing
of the ecological advancement of the technology and the setting up of optimised infrastructure.

Environmental and economical advantages of bioplastics

There are many good reasons to support the bioplastics innovation. Environmental aspects are top of
the list. Various LCA studies have documented significant savings in the consumption of fossil energy
and considerably reduced CO2 emissions for different types of bioplastic products. It is not however
possible to make blanket assumptions such as "bioplastics are the more environmentally friendly
solution". It is furthermore important to consider the following: Sustainability covers not only
environmental aspects but also economic and social components. If jobs, growth markets or global
export opportunities develop from innovative technologies such as bioplastics, this is positive both
for the economy and the individual. Bioplastics can be produced throughout Europe and will
therefore reduce dependence on imports while offering export opportunities.

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End-of-Life: Recovery Options

Common treatment options for plastic waste are thermal recovery, mechanical recycling and landfill.
Bioplastics offer in principle all the recovery options in place for conventional plastics - plus the
additional option of organic recycling.

However it must be kept in mind that bioplastic applications cover many different products with
widely varying specific compositions and product design. The choice of the best, i.e. the most
ecological and economically efficient recovery route for bioplastics is dependent on many factors
such as the character of the product, market volume, existing infrastructure for collection and
recovery, legislation, and last but not least, costs. These factors can differ greatly from region to
region and from one application to another. Municipalities and/or private recycling companies, aiming
at the most efficient use of the collected waste as a resource, will usually provide a mix of recovery
options.

What is Organic Recycling?

Organic recycling as defined by the EU Packaging and Packaging Waste Directive 94/62/EC
(amended in 2004/12/EC) as the aerobic treatment (= composting) or anaerobic treatment
(= biogasification) of packaging waste. The EU Directive is based on the European standard for the
industrial compostability of plastic packaging, EN 13432. This standard is legally binding in all EU
member states, so that claiming ‘compostability’ for a packaging material or a packaging can only be
done after showing compliance of the respective item with EN 13432. An equivalent standard has
been approved by the European standardization organization CEN for the testing of compostability of
plastics, EN 14995.

Whereas ‘aerobic biodegradation’ describes the microbial transformation of carbon containing

material into CO2, H2O and biomass, ‘compostability’ is further defined by a time limitation in line with
the requirements of industrial composting plants (4-12 weeks).

The biodegradation of compostable plastics is dependent on three main factors: elevated

temperature, humidity and the abundance of microbes. Rapid biodegradation can only take place if
all three criteria are fulfilled simultaneously. This occurs particularly in professional biowaste
treatment plants.

Composting of bioplastics (aerobic treatment)

Most commercialised bioplastic products are certified ‘compostable’ according to the relevant
European standards (EN 13432 or EN 14995). When entering composting plants they are converted
to CO2, water and biomass (as part of the compost product). The resulting compost can be used as a
soil improver and can in part also replace mineral fertilizers.

Compostable bioplastic products such as waste or shopping bags can be used to collect organic
household waste in municipalities in many EU countries. By keeping the biowaste collection more
hygienic and convenient, such bags contribute to the motivation of consumers for the separate
collection of biowaste. These bags are highly breathable and allow the evaporation of water from the
organic household waste, so that the weight of the collected waste decreases (→ advantage in case

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of weight related fees) and the oxygen content increases (→ better processability in the composting
plant, higher quality of the compost product).

Studies have shown that using compostable bags for the biowaste collection contributes to the
diversion of organic waste from landfill. This results in the decrease of methane emissions from
landfill. Separate collection and recovery of organic (household) waste should be installed throughout
Europe. Compostable waste bags can help to manage such recovery schemes in the best possible
way. Many municipalities in Europe have recognised this and now recommend the use of such bags.

Catering articles are another example of bioplastic products exhibiting advantages for waste
management, for example at public events or in cafeterias. Compostable cups, plates or cutlery can
be treated together with food residues. No separate handling of food waste and packaging waste is
needed and no contamination of other waste streams (e.g. plastic recycling) occurs when these
products are composted. The same benefit can be achieved for fruit or vegetables distributed in
compostable packaging - if they are no longer fit to be sold to consumers due to expiry of shelf life or
damage, the complete packaging including the goods can be sent to organic recovery without
unpacking.

Biogasification (anaerobic treatment)

In biogasification plants, methane is produced from organic substrates. Biowaste is used as an input
material for biogasification plants in an increasing number of municipalities and in private plants. The
process is attractive because it yields both compost as a product and also renewable energy: the
methane is captured to produce electricity and heat in power plants.

Some bioplastics, which only show slow biodegradation under anaerobic conditions are
subsequently biodegraded under aerobic conditions in a second phase of treatment. The biowaste
treatment in anaerobic plants will always combine an initial anaerobic phase of approx. 2 – 3 weeks
and a second aerobic phase (‘aftertreatment’) of usually another 3 weeks to produce fertile compost.

So-called ‘oxo-degradable plastics’ not suitable for organic recovery

So-called ‘oxo-degradable plastics’ (i.e.: polyolefines with metal-containing additives) are sometimes
advertised as being ‘biodegradable’ or even ‘compostable’. Such claims are misleading if they are
not substantiated by showing compliance with the relevant European standards EN 14995 or EN
13432. These, define the requirements for materials, which can be called ‘compostable’. There are no
known ‘oxo-degradable’ products in the marketplace, which fulfil either of these standards. In Italy
and Australia lawsuits resulted in fines for using misleading claims like “compostable” in the
marketing of such products.

Industry companies providing truly compostable plastic products will make use of the established,
producer independent certification schemes proving compostability on the basis of tests according
to EN 13432 or EN 14995. These certification schemes provide the so-called ‘seedling’ label as a
sign of compliance (see 1. above). This logo is currently in use in several European countries and is
expanding to represent a European label for compostable plastic items.

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What is Thermal Recovery?

‘Thermal recovery’ is the term for all exothermic waste management processes, which yield energy
and/or heat. Incineration (combustion) is the most prominent example. The calorific value of
bioplastics and the clean product composition allow bioplastics to be recovered thermally. Due to the
high level of renewable resources in bioplastics products, they can be used to produce renewable
energy if, for example, they are incinerated with energy recovery (sometimes also called ‘waste-to-
energy’). This method is applicable to all bioplastics.

What is Mechanical Recycling?

Mechanical recycling is understood as the recycling back into plastics. It will only lead to high quality
products when the input material is very pure. This is the case for the reprocessing of production
waste: Converters of plastics usually have facilities installed to recycle the production scraps as a
valuable raw material and feed them back into the production process.

Recycling usually becomes much more complicated when mixed post-consumer plastics waste is
used. The typical situation is that post-consumer plastic waste collection schemes deliver a wide
variety of polymer types (fractions of PE, PP, PVC, PS, PET, etc. including laminates, compounds,
coatings etc.).These products are often naturally "contaminated" with various labels, colours, inks,
glues, residues etc. Only a smaller proportion of the nearly 50,000,000 tons of total plastics market (in
Europe) is currently being recycled back into plastics.

With rising raw material prices, investment in recycling and sorting technologies is increasing. Sorting
and pre-treatment technologies have been improved and now allow the selection of pure (enough)
plastic waste. Due to the mixed and contaminated nature of post consumer waste, sorting and
separation technologies are key to producing quality recyclates. The recycling industry has proven
that it can also handle mixed plastic waste fractions. This was a pre-condition to installing schemes,
which yield high quality recyclates. However mechanical recycling will remain limited to specific
fractions of the post-consumer plastic waste, as the high demand for purity often cannot be met at
reasonable cost. In Europe the recycling of PET bottles has become a good example of establishing
an economical, high quality recycling on a bulk scale.

Bioplastics are adding to the variety of plastics on the market. Owing to comparably low market
volume (see 2. above), mechanical recycling of bioplastics is currently of no significance. With
growing volume, it should be possible to install specific collection, separation and recycling
technologies for bioplastics as well. For example, PLA has the potential to be recycled similarly to
PET due to its chemical nature (polyester) and its application fields (e.g. beverage bottles). The focus
now must be on finding solutions, which allow the recovery of bioplastics alongside existing recycling
schemes for conventional polymers. Given the comparatively low volume of bioplastics on the
market, there are good opportunities to develop solutions in due time (i.e. establish separate systems
along with increases in bioplastics volume). Solutions can be based on sorting technologies, e.g. the
available NIR (near infra-red) technology which can detect virtually every plastic type, including
different bioplastics. This technology provides the opportunity to separate bioplastics as well as other
plastic types from recovery systems, which have been tailored for one specific plastic waste type.
This is the case, for example, in the recycling of PET or HDPE bottles.

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Landfill – current status and future development?

The European Landfill Directive 1999/31/EC aims at reducing the amounts of biodegradable waste
going to landfills. Member states are required to reduce these amounts by 50 % by July 2009 and by
65 % by July 2016 (the reference year is 1995, with some exemptions for a few countries). Several
countries have already achieved these goals, and others have set up national strategies to fulfil the
requirements in future. As a consequence, the amount of municipal waste (especially from kerbside
collection) going to landfills has already been limited and will be further reduced considerably. As
waste from bioplastics represents only a very low share of this waste (well below 1 %) and as
bioplastics market volume is growing at the same time as municipal solid waste is actively being
diverted from landfill, it is expected that the amount of bioplastics waste going to landfill will remain
extremely low. Land filling of waste is generally not considered a ‘solution’; therefore the focus for
bioplastics should firmly be on the development of recovery systems, either for the biological
recovery, incineration with energy recovery or recycling.

Conclusion

It is and will continue to be the task of all parties involved in plastics waste management and of
governmental institutions to work out best practice recovery solutions for both bioplastics and
conventional plastics.

It has to be kept in mind that bioplastics have only a very small share of the current 50 Million ton
total plastics market in Europe. They represent a new material group, which can make use of all the
established recovery and recycling technologies for conventional plastics and moreover offer the new
option of organic recycling.

There is time and opportunity to develop solutions because bioplastics are still in their infancy with
low market volume. Recycling issues should not lead to hampering the development of bioplastics.
The focus should be on the establishment of practical solutions for legislation, communication,
sorting and recycling technologies, amongst other issues.

Most bioplastic products are composted today and do not interfere with recycling. Composting is
and will remain an important recovery route for many short-life bioplastic products.

Thermal recovery processes can handle bioplastics more easily due to their lower demand for purity.
Mechanical or chemical recycling represent promising (new) options for some bioplastics, yielding
potentially high quality recyclates.

The intention must be to establish eco-efficient recycling systems by making use of all available
recovery methods according to the particular product, thereby avoiding negative interference from
existing plastic recycling schemes.

As bioplastics volumes are currently very low, methane emissions from bioplastics are not a relevant
issue. Bioplastics – and much more importantly, organic food waste - should not however end up in
landfill without pre-treatment. Stopping landfill of untreated organic waste, to which bioplastics can
contribute e.g. by enabling consumers to collect their organic waste separately in compostable bags,
would solve the problem of methane emissions and improve ecology.

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6 Bioplastics and food?

The current media debate is frequently emotional and not much factual information is provided to
promote the discussion on the use of food crops in non-food applications.

At a conference on May 6, EU Agriculture Commissioner Marianne Fischer-Boel has responded to

the debate and rejected allegations that EU policies to promote biofuels are to blame for rising food
prices (www.euractiv.com/en/sustainability/biofuels). She provided arguments that are also valid for
bioplastics:

"Those who see biofuels as the driving force behind recent food price increases have overlooked not
just one elephant standing right in front of them, but two," she said. According to Fischer-Boel, the
rising food demand and dietary shift towards meat in emerging countries like China and India,
together with the bad weather that hit the EU, US, Canada, Russia, Ukraine and Australia in 2006 and
2007, have each had "an enormous impact on commodity markets". Other "influences" include
increasing speculation on food commodities, she said.

Bioplastics versus Biofuels

Noteworthy: There are significant differences between the use of agricultural feedstocks for biofuels
production and for the production of bioplastics:

- Volumes: Whereas biofuels production has reached a multi-million ton level in the EU, the
bioplastics market is still in its infancy (approx. 100,000 tons in Europe). The cultivation area
needed to supply the bioplastics industry is currently very small. About 2-3 tons of
bioplastics can be produced from one hectare of corn or wheat (using their starch), thus the
area cultivated for the production of bioplastics can be estimated at approx. 30,000 ha in EU
compared with a total agricultural area in Europe of more than 162,000,000 ha according the
European Commission.
- There is a range of bioplastics materials that already use cellulosic feedstocks (wood) or food
waste products like potato skins (non-edible, non-food supply).
- Strong efforts are being undertaken by the bioplastics industry to develop bioplastics from
agricultural residues (cellulosic) and other waste streams. Many companies have set
development goals to feed their raw material supply from crops or other agricultural
feedstocks, which are non-competing with food markets in the future (biorefinery concepts).

Conclusion
Bioplastics have no impact on the food supply and availability situation today.

Technical solutions to use mainly non-food crops are under investigation or already in use. All parties
involved should focus their activities to enable the growth of bioplastics and to support sustainable
development which takes into account that no raw material has unlimited availability and therefore
the most efficient use of resources must be achieved. Bioplastics should be regarded as a solution to
promote sustainable development and not as a threat to it.

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Noteworthy: According to the FAO (Food and Agriculture Organization of the United Nations) and
other governmental sources, 4.2 billion hectares are available for agricultural production worldwide,
but only 1.5 billion hectares are actually used, of which 900 million hectares are in LDCs (less
developed countries). As such, there is still scope for increasing the production of agricultural crops
for both food and bioplastics.

7 Politics

What can politics achieve to assist market introduction and technology development?

In contrast to the areas of biofuels and renewable energies, there is currently no EU-wide framework
for action to support the material use of renewable raw materials. The development of an integrated
concept to coordinate both the material and the energetic use of renewable resources should be the
highest priority. In consequence, intelligent use cascades must be developed to promote the most
efficient use of resources. Use cascades increase value creation and simultaneously improve the
economy and ecology of the products. Without sufficient economic and technological value creation,
Europe will have difficulty in competing globally.

Political measures

Industrial composting (organic recycling) schemes should be developed and implemented across the
EU. Wherever there is an industrial composting infrastructure established in Europe, EN certified
compostable plastic products should be allowed to enter that infrastructure (legislation must be
adapted accordingly). Organic recycling represents a key step for compostable bioplastics and offers
a wealth of benefits for short-life products.

Appropriate political measures should be implemented during the market introduction. A positive
example is the regulations in the German Packaging Directive, which cover packaging made from
bioplastics.

June 2008

European Bioplastics e.V.

Marienstr. 19/20
10117 Berlin, Germany
Phone: +49 30 284 82 350
Fax: +49 30 284 84 359
info@european-bioplastics.org
www.european-bioplastics.org

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