By Meike Wetsch, Coega Development Corporation unit head of capital raising
THE Biofibre Hub Project, established by the Coega Development Corporation with the Council for Scientific and Industrial Research (CSIR) as its research and development partner, is moving closer towards commercial production.
Established in the 9003-hectare Coega Special Economic Zone, the project involves the development of viable industrial applications for two types of plant-based fibres – bast fibre and leaf fibre – to support the global competitiveness of the South African automotive sector, promote the greening of manufacturing chains, and foster the creation of sustainable jobs in rural areas.
In the automotive sector, bast fibres such as flax, hemp and kenaf, are used to manufacture woven and non-woven composites for auto components such as parcel trays and interior door linings. Bast fibre competes well with carbon fibre in terms of mechanical strength and also offers a weight advantage for fuel efficiency. When combined with polymers and bonding matrices, bast fibre can be used to manufacture structural automotive panels.
Leaf fibre, which the project will derive from the pineapples that already come into the Coega SEZ for food manufacturing, as well as the cactus species in the nearby Karoo heartland, will be used to create a plant leather for high-end vehicles.
An Overview of Market Uptake
The automotive sector has ventured into greening both its manufacturing processes and its products in response to consumer preferences, environmental, social and governance (ESG) financing considerations, carbon taxes, regulatory pressures, end-of-life costs, and the need to reduce the weight of vehicles for fuel efficiency and electric vehicle (EV) application.
Global automotive manufacturers who have already explored the use of biofibre materials, include Mercedes-Benz, Volkswagen, BMW, and Bentley, with the Lotus Corporation having produced the Eco Elise, as the first successful example of structural components made from bast fibre, specifically, hemp.
While the application of bast fibre in woven and non-woven composites is well established globally, and several examples of plant leather in high-end auto already exist, the sector continues to face a big problem, environmentally speaking.
While the fibres themselves may be plant-based, many of these composites rely on petrochemical bonding matrices and polymers to deliver strength and functionality, diminishing their “green” appeal.
Seat covers in high-end vehicles illustrate this problem perfectly. Traditionally, the automotive sector used nappa leather, which is made from high quality, blemish-free and durable hides. During the manufacturing process, as much as 30% of the leather is lost, due to the irregular shape of the hides. Furthermore, consumers are becoming increasingly demanding of more environmentally friendly options.
Consequently, many automotive manufacturers have sought alternatives to nappa leather, one of which is plant leather. Current plant leather options fall short in two respects. Firstly, they are not as durable as Nappa leather. Secondly, they rely on petrochemically derived bonding matrices and polymers to deliver strength and functionality, challenging their environmentally friendly appeal. The resulting product often feels like vinyl – a far cry from the luxury experience that high-end auto buyers desire.
The solution to this problem is a fully green product that feels and smells like leather, and that breathes like leather.
To achieve this, plant-based polymers and bonding matrices need to be further developed. This is where the Biofibre Hub Project has a lot to offer.
Coega SEZ Biofibre Hub
The CSIR’s Nanotechnology Innovation Centre and Chemicals Units are far advanced in the development of biopolymers and bonding matrices that exceed the performance of the petrochemically based alternative. By partnering this considerable intellectual property with Coega’s ability to finance, commercialise and industrialise innovation, the Biofibre Hub is well-placed to commercialise existing bio-based polymers and bonding matrices. The CSIR has developed these bio-based polymers and bonding matrices and now the challenge is to produce it at a price level that will rival petrochemically derived solutions.
While this will unlock the bio-composites market in the automotive sector, and support the rural extension of its value chains, the larger opportunity is the bio-composites market itself. The market for bio-based polymers is anticipated to reach USD 29.8 billion by 2027, expanding at a compounded annual growth rate (CAGR) of 18.2%. Sustainable polymers known as “bio-based polymers” are created from renewable resources including biomass, starch, and rubber, among others. Bio-based polymers’ starting components originate from plants, animals, enzymes, or microbes. As a result, polylactic acid or polylactide, is compostable and biodegradable.
One of the key factors influencing the market for bio-based polymers is the rise in environmental concerns regarding the disposal and recycling of synthetic polymers. The market expansion for bio-based polymers is also being supported by the increasing acceptance of bio-based materials in the end-use sectors, including packaging, pharmaceutical, construction, and consumer products, among others.
Besides the obvious business case presented by the market outlook, the adoption of biopolymers makes a lot of sense from a sustainability perspective.
Biopolymers and Sustainability
Global bioplastics output in 2021 was 2.42 million tons, according to figures released by European Bioplastics in partnership with the Nova-Institute – a small fraction of global plastics output, which continues to end up in landfill sites and contribute to environmental pollution. The existing market share of polyhydroxyalkanoates (PHAs), the sustainable alternative, was over 30% in 2021 and is expected to increase significantly.
PHAs safeguard the environment and aquatic life and completely degrade in soil, water, and municipal waste treatment facilities. The product is used in rigid and flexible packaging across a variety of industries, including food, beverage, and pharmaceutical industries.
To further refine the product and take it to market, the CSIR and Coega have recently partnered with a leading Italian plant-based leather manufacturer that provides products to the leading European auto manufacturers, and leading luxury fashion brands looking for sustainable leather alternatives.
The Project supports the global competitiveness of the South African automotive sector exports by helping to lower carbon footprints, but more importantly, to localise the auto sector value chain into the highly labour-absorptive agricultural sector. By linking these value chains, we will finally have a route towards fully integrating the provincial economic value chain, which in turn and over time, will help us overcome the east-west divide that continues to plague the province.
The project will be developed in phases. Currently, we are in the commercial pilot phase. Four South African manufacturers have already signed cooperation and offtake agreements, which will allow us to go through the final industrial acceptance testing. The pre-commercial capital raise for the pilot phase is complete, and in this first phase, the project will already create a small number of jobs. By phase three, the project will have a capital investment value of just over R1bn – and will have a substantial economic impact.
A Blueprint for Innovation
By combining the strengths of the CSIR and Coega, the Biofibre Hub Project is creating a template for the commercialisation of South African innovation, and this is how we will move South African manufacturing up the value chain and create economic value.
Moreover, public sector collaboration is acting as a catalyst for private sector investment and growth.
In conclusion, the Biofibre Hub Project represents a bold step forward for the Coega SEZ and the broader South African economy. By harnessing the power of biotechnology and sustainable materials, this initiative has the potential to drive economic growth, foster environmental sustainability, and position the region as a leader in the global green economy.
