Angel Yeast and PhaBuilder plan PHA factory in China as biodegradable material demand grows

26 Jul 2022 --- Angel Yeast, a globally-listed yeast and yeast extract manufacturer, and Beijing PhaBuilder Biotechnology have agreed to build a large manufacturing base for biodegradable polyhydroxyalkanoates (PHA) polyesters in the Chinese city of Yichang. 

The partners will set up a joint venture company to drive the application of synthetic biology in the biotechnology industry.

PHA is produced naturally by microorganisms, making it an attractive alternative to fossil fuel-based plastics. Its biodegradable and biocompatible properties are increasingly prevalent in fields such as biodegradable packaging and biomedical material.

According to Innova Market Insights, a majority of Chinese consumers say bioplastic boasts good (44%) or excellent (18%) recyclability. Meanwhile, 21% of Chinese consumers believe biodegradable packaging is the most environmentally sustainable solution, level with reusable packaging (21%).

European Bioplastics recently revealed that global bioplastics production will more than triple over the next five years (2021-2026), according to market data compiled in cooperation with the nova-Institute. Notably, Asia is predicted to surpass 70% market share by 2026. However, the global bioplastics market still faces cost and policy challenges.

In May, J Bio, a division of South Korea-based CJ CheilJedang, launched a “market-first” amorphous PHA polymer as part of its new PHACT Marine Biodegradable Polymers line. The polymer will be produced at its newly-commissioned Pasuruan, Indonesia, facility.Bioplastics offer an increasingly attractive alternative to petrochemical plastics.

Technology breakthroughs
PhaBuilder’s founder Guoqiang Chen explains that major inroads have been made in converting technology breakthroughs into industrial programs for synthetic biology by working with Angel Yeast on the initiative.

“The new production line of PHA with the capacity of 30,000 tons will certainly bring more advanced technologies, new services and products for the industry and consumers. It will also create a ‘greener’ lifestyle,” says Chen.

“This collaboration with PhaBuilder marks a milestone and a significant step forward for Angel Yeast in synthetic biology,” adds Tao Xiong, chairman of Angel Yeast. “We are very keen on innovation and exploration of new landscapes in the industry. This project is also part of our efforts to be an international and professional biotechnology company.”

He adds that the partnership is expected to forge a new venture in bioeconomy, fuel innovation in synthetic biology and drive the expansion of the global market.Asia’s biodegradable plastics capacity is the biggest in the world and expected to take more market share (Source: EUBP).

Biological agriculture
In addition to synthetic biology, Angel Yeast has also been exploring cutting-edge developments in biological agriculture. According to the company, it will be engaged in a project to produce animal feed through biological fermentation.

Angel Yeast will invest ¥120 million (US$17.8 million) to build the manufacturing center with an annual capacity of 50,000 tons. The project is estimated to start next month and be completed in September next year.

One highlight of the project is that it uses Distillers’ Dried Grains with Solubles as one raw material to produce yeast culture products.

As a new category, yeast culture products will diversify the company’s animal nutrition products lineup.

By Joshua Poole