Executive Summary
What the report is about
This report describes the current state of the biologically-based (biobased) products industry in Australia and internationally and identifies current biobased product research and development in Australia. It outlines opportunities for Australian agriculture within the international biobased product scene and identifies areas where further research is required.

Who is the report targeted at?
This report is intended to provide large-scale biomass industries, scientists, relevant manufacturing companies, government agencies and rural landholders with information on Australia’s position within the global biobased product market and identifies opportunities for Australian agriculture within that market.

Background
Internationally there is movement away from the use of crude oil and petroleum towards renewable biomass feedstocks for the production of industrial chemicals and materials. There is strong international activity in biobased products, especially among developed countries, much of which is underpinned by nation-based roadmaps or strategic plans for research and development, and introduction targets.

First generation biobased products use existing agriculture and forestry feedstocks such as lignin, starch, proteins, vegetable oils and sugar that can be used as chemical or biological building blocks for biobased plastics, adhesives, composites, lubricants and waxes.

Second generation products can be made from new building blocks such as modified vegetable oils, novel proteins and new sugars that aim for improved or new material properties, and commercially efficient production platforms.

Internationally, many companies and research institutions are heavily engaged with biobased products and are bringing forward exciting new products and environmentallyfriendly alternative routes to traditional chemical feedstocks, as a result of investment in innovative research and development.

Aims and Objectives
This study aimed to:

• investigate biologically-based (biobased) products in Australia and internationally, and current research and development in Australia; and
• identify opportunities for Australian agriculture and research gaps in the field.

Outcomes and implications
Biobased products sourced from renewable resources can deliver positive effects for the environment, improved product characteristics and mitigate against Australia’s crude oil and oil-derived raw polymer imports.

Life cycle assessments of biobased products have been limited but results to date point to some clear environmental benefits for some products — less so for other products — in comparison with petroleum-derived products; and indicate areas where process improvements could have a large impact on sustainability outcomes.

For the rural sector, biobased industries can generate demand for higher value crops and encourage the establishment of regional industries.

There is substantial biobased products research and development activity in Australia but our industry is lagging behind other developed countries. The Australian industry is small but growing and mostly centred around biobased food packaging products.

In Australia we currently lack a shared vision of the benefits of biobased products and their potential to:

• reduce our dependence on imported oil and polymers;
• reduce greenhouse gas emissions; and
• foster home-grown industries through increasing financial returns for Australian farmers and thereby boost regional industries.

These are key messages that need to be disseminated more widely.

Recommendations
Further policy, communication and research and development initiatives are required to attract Australian industry to adopt biobased products.