Expert Interview: Franz Latzko
Austrian Chamber of Commerce, Association of the Austrian Chemical Industry (FCIO), on opportunities and perspectives for biobased industry

DI Dr. Franz Latzko, Foto: privat
Franz Latzko, Photo: private

Biobased products derived (partly or entirely) from renewable raw materials may well gain considerably in importance in future. How do you see the opportunities for biobased industry located in Austria?

Biogenic raw materials are already in use on a substantial scale even today. Individual sectors (biofuel and semi-synthetic fibre manufacturers and rubber processors), individual pharmaceutical firms and some food additive suppliers make use of biogenic raw materials and account for more than a tenth of the total product value generated by the Austrian chemical industry. We should take advantage of this lead in experience.

What are the major challenges involved in expanding/developing biobased industry further?

 A number of questions arise in connection with developing a biobased industry. One of them is whether there is enough biomass on hand for the various possible uses (sources of energy versus raw material) and the political aims attached to these. Surveys claim that this is a bottleneck; they also point out that cascading biomass is the way to maximize value creation. For the firms concerned it is specially important that the framework for investment remains stable. And at the end of the day customers must actually buy the new products.

Where could fossil raw materials be replaced by biogenic in the chemical industry?

In the long term no limit is in sight for chemists in the field of carbon-based molecules. The economic setting will be decisive; as already mentioned, the issues are competition for raw materials and market acceptance. In the case of anorganic products the biogenic raw materials are suitable as sources of energy at most. The parallel development of processes to utilize carbon dioxide in synthesis directly (carbon capture and reuse) is also of great interest and very promising; that might defuse the issue of how much biomass is available.

Which technologies and processing methods have the most potential for manufacturing biobased chemicals?

Just recently fine chemicals derived from algae have taken a major step closer to the market. The plastic processing industry is starting to use biobased material, too. Judging by the activities of the large German chemical firms, there are also definitely market openings for platform chemicals derived from biomass..

Where do you see opportunities for Austrian firms in international markets?

In my view development will follow two paths. Firms which are already using biogenic raw materials on a large scale in conventional processes will put their experience to work and invest in developing new products for the market. Smaller companies will establish themselves as niche players. In Austria we should not overlook the mechanical engineering sector, which will also cash in on its lead in know-how in this field.