Ontario Corn Producer Magazine May/June 2009

Corn takes centre stage


by Treena Hein

In a world increasingly interested in biologically-based products, corn looms large, but Canada must move fast to get in on the action


CORN HAS A big and very exciting future in bio-product markets, but if Canadian producers and processors are going to maximize their stake in that future, they need to move fast.

That’s the expert opinion of Brian Doidge, among others. Doidge, who just retired from serving as a professor at University of Guelph’s Ridgetown campus, has studied the present and predicted the future of biologically-based products extensively.

“The opportunities for corn are enormous,” he says. “Bioproducts and bioprocesses are transforming all conventional industries.” Doidge says  “There are 72,000 types of chemicals used in the United States made from petroleum – and we can make all of them from corn.”

In terms of dollar amounts, it’s predicted that the global biochemicals market will be US$ 280 billion annually by 2010. Growth of the global bioenergy market is also strong, and is expected to reach US$ 150 billion by 2050.

“An increasing proportion of the world’s chemical and energy needs will come from renewable resources,” observes Doidge. “Corn is an ideal crop for making both biofuels and biochemicals because it’s commonly grown, and it contains a high volume of readily available starch that is chemically very easy to work with.”

Dr. Gord Surgeoner, President of Ontario Agri-Food Technologies, says Ontario makes great sense as a base for both the development and use of biological-based materials from corn and other plants. Ontario is a hotbed of expertise in plant breeding, and research for uses for plant oils, starches and fibres. We also have a thriving chemical and plastics industry here that can be receptors for our products.”

Craig Crawford, president and CEO of the Ontario BioAuto Council, also sees a robust future for using plant and wood-based materials in Ontario-made vehicles, packaging, construction materials and consumer products.

The Council – made up of representatives from the automotive, chemical, plastic, agriculture, forestry, manufacturing and public research organizations – provides financial incentives to help accelerate commercialization. “By March 2010,” Crawford notes, “the Council will have brought over 300 new bio-products to market, including bio-foams for automotive seats cushions, residential furniture, and a broad range of industrial products like plastic pool liners.”

“Corn, soy and other bio-based materials are cheaper, provide better performance and are less toxic than conventional materials,” he adds, “which is everything the consumer is looking for.”

CANADA'S PLACE
It’s not only cost, quality and the environmental degradation caused by the extraction, production and use of non-renewable energy sources that is driving the bio-industry boom. Also topping the list are serious concerns over the escalating price of oil and general energy security.  Nations who want to decrease their dependence on imported oil, such as Japan, China, US and Europe, have therefore begun to devote extensive research and development funding to industrial applications in biochemistry and biofuels.

“Major corporations in these countries are positioning themselves for the emerging bio-based economy in terms of both patents and people,” says Doidge.

Canada, who has no small stake in continued oil and gas development to feed current export markets, has mainly focused biotech research and development in the traditional fields of medicine and pharmaceuticals. “We don’t want Canadian companies left producing petroleum-based commodity products that compete only on price at a time when environmental pressures are growing and competition from low-wage countries is increasing,” Doidge says.

Canada’s best move? Prepare to quickly diversify and collaborate.

For example, cellulosic ethanol, which can be made from switchgrass, wood chips, corn stover, miscanthus and wheat straw, is on the cusp of commercial reality. “This means that conversion of traditional ethanol plants in Canada may be the best option going forward,” says Doidge.

Corn ethanol facilities could also look at switching to other products (for example, butanol), or to the production of biochemical co-products in addition to ethanol. “Butanol has better energy conversions, easier handling and transportation,” he notes. “Co-products include succinic acid (a ‘platform’ biochemical from which many others can be derived), succinic salts (de-icing agents) and ethyl lactate (a solvent and cleaner).

Similarly, corn wet milling facilities that produce glucose, high fructose corn syrup (HFCS) and dextrose must also consider diversifying into other biochemicals. HFCS has fallen out of favour in some food production circles, and the dextrose market is competitive. Other wet milling co-products include sorbitol, which can be converted into hydrogen, which Doidge believes has “massive prospects as a fuel and as a chemical process ingredient.”

The US Department of Energy’s waiver of patent rights constraint on commercialization outside the US also means Canada has the opportunity to collaborate with enzyme or process developers, corn refiners, and chemical companies or resin manufacturers or plastic product companies.

“There are many foreign biotech companies with commercially viable industrial applications seeking willing corn refiners – ethanol producers and corn wet millers – and downstream manufacturers in all sectors,” says Doidge. “These refiners and manufacturers must recognize the threats and opportunities they face in the immediate future and take action now.”