An interesting company called Danimer Scientific is developing sustainable packaging and is expanding the capacity of its bioplastic production, which uses canola oil as a primary feedstock.
Danimer has been in the news quite a bit lately thanks to some well-known customers, with Bacardi the latest to partner with the company. The giant liquor company is moving to bottle all its brands in a 100% biodegradable plastic packaging made with plant-based oils by 2023. Nestlé is another big name partner, working with the company to develop biodegradable water bottles. They’ve also partnered with PepsiCo, Genpak, WinCup, Columbia Packaging Group, and Plastic Suppliers Inc. as they transition a wide variety of plastic applications, including straws, food and beverage containers, flexible packaging, agricultural, and medical applications, among others. Based on signed and pending contracts, the company is fully sold out of all production in its Kentucky facility.
Danimer’s alternative to traditional petroleum-based resins is its signature polymer, Nodax PHA, the first of its kind to be certified as marine-degradable, the highest standard of biodegradability, which verifies the material will fully degrade in ocean water without leaving behind harmful microplastics. The company uses a bacteria that converts vegetable oil into a polymer called PHA, polyhydroxyalkanoate, as energy reserve. Croskey describes it as “bug fat” because it’s the byproduct of the bacteria over-indulging on delicious canola oil. Earlier in October, Danimer won a $350,000 grant from the United Soybean Board to investigate the use of high-oleic soybean oil (HOSO) in the production of bioplastics.
High-quality sustainable packaging that keeps products fresh, holds liquids and endures temperature changes is a goal that most consumer packaged goods (CPG) companies are rushing to as consumers increasingly demand it. The moves are also a way for brands to stand out from peers. There is some criticism that the new technologies will drive up prices but CPG companies say that customers have already proven they are willing to pay extra for more sustainable options. The bioplastics market is estimated to be worth north of $25 billion within the next five years, compared to the overall global plastic market size of around $580 billion.
Production at its facility in Kentucky came online in March of this year. The plan is to scale production from 20 million pounds annually currently to approximately 200 million pounds in 2025. They recently did a funding deal with Live Oak that will leave Danimer with an anticipated $385 million in cash to work with, in addition to at least $210 million in private funding from a group of investors that includes Federated Hermes Kaufmann Small Cap Fund and Apollo Management.
Personally, I find it interesting that canola is starting to be used in more diverse industrial processes. I’m also starting to hear more producers here in the U.S. are growing a few canola acres. Canola is now one of the most widely grown crops in Canada, generating about one-quarter of all farm crop receipts. More than 50 different nations import canola seed, oil, and meal from Canada. Interestingly, the biggest buyer of canola oil and meal is the United States. New canola traits and varieties are helping farmers increase yields and grow the crop in areas of the country that haven’t in the past. The canola industry is also investing in new canola varieties that add value by providing higher oil content, more protein, and special oil profiles. If you are interested in growing canola or learning more check out the U.S. Canola Association HERE. You can learn more about Danimer Scientific HERE. (Sources: FoodDive, Reuters, DairyReporter)
An interesting company called Danimer is developing sustainable packaging and is expanding the capacity of its bioplastic production, which uses canola oil as a primary feedstock.
Danimer has been in the news quite a bit lately thanks to some well-known customers, with Bacardi the latest to partner with the company. The giant liquor company is moving to bottle all its brands in a 100% biodegradable plastic packaging made with plant-based oils by 2023. Nestlé is another big name partner, working with the company to develop biodegradable water bottles. They’ve also partnered with PepsiCo, Genpak, WinCup, Columbia Packaging Group, and Plastic Suppliers Inc. as they transition a wide variety of plastic applications, including straws, food and beverage containers, flexible packaging, agricultural, and medical applications, among others. Based on signed and pending contracts, the company is fully sold out of all production in its Kentucky facility.
Danimer’s alternative to traditional petroleum-based resins is its signature polymer, Nodax PHA, the first of its kind to be certified as marine-degradable, the highest standard of biodegradability, which verifies the material will fully degrade in ocean water without leaving behind harmful microplastics. The company uses a bacteria that converts vegetable oil into a polymer called PHA, polyhydroxyalkanoate, as energy reserve. Croskey describes it as “bug fat” because it’s the byproduct of the bacteria over-indulging on delicious canola oil. Earlier in October, Danimer won a $350,000 grant from the United Soybean Board to investigate the use of high-oleic soybean oil (HOSO) in the production of bioplastics.
High-quality sustainable packaging that keeps products fresh, holds liquids and endures temperature changes is a goal that most consumer packaged goods (CPG) companies are rushing to as consumers increasingly demand it. The moves are also a way for brands to stand out from peers. There is some criticism that the new technologies will drive up prices but CPG companies say that customers have already proven they are willing to pay extra for more sustainable options. The bioplastics market is estimated to be worth north of $25 billion within the next five years, compared to the overall global plastic market size of around $580 billion.
Production at its facility in Kentucky came online in March of this year. The plan is to scale production from 20 million pounds annually currently to approximately 200 million pounds in 2025. They recently did a funding deal with Live Oak that will leave Danimer with an anticipated $385 million in cash to work with, in addition to at least $210 million in private funding from a group of investors that includes Federated Hermes Kaufmann Small Cap Fund and Apollo Management.
Personally, I find it interesting that canola is starting to be used in more diverse industrial processes. I’m also starting to hear more producers here in the U.S. are growing a few canola acres. Canola is now one of the most widely grown crops in Canada, generating about one-quarter of all farm crop receipts. More than 50 different nations import canola seed, oil, and meal from Canada. Interestingly, the biggest buyer of canola oil and meal is the United States. New canola traits and varieties are helping farmers increase yields and grow the crop in areas of the country that haven’t in the past. The canola industry is also investing in new canola varieties that add value by providing higher oil content, more protein, and special oil profiles. If you are interested in growing canola or learning more check out the U.S. Canola Association HERE. You can learn more about Danimer Scientific HERE. (Sources: FoodDive, Reuters, DairyReporter)
