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IA Seoul

Yewon Cha, Info: http://www.agentschapnl.nl/ia-netwerk

Green chemistry in South Korea

Introduction

When the terminology ‘bio-based economy’ was first introduced in Korea, it referred to life science and medical industry focusing on the word ‘bio’. However, in the past few years, it has been changing to bioenergy and then subsequently various terminologies such as biochemistry, green-chemistry and bio-refinery have made an appearance.

Concerning cutting oil import and reducing CO2 emission, bioenergy quickly grabbed the government’s attention. It still is a major part of the government’s bio-based economy projects. On the other hand, biochemistry is slowly getting more and more attention as the amount of exported petrochemicals constantly increases. Furthermore, some research showed that the value of biochemical product made of biomass is 4.7 times higher than the value of biofuel from biomass (SERI, Economy focus, 20 Feb. 2006, www.seri.org). This also made it more attractive.

In this article, the government project, current research and organizations, products in market, challenges and opportunities in biochemistry in Korea will be addressed.

Details

Besides responding to the increasing oil price and the enforced environmental regulations, biochemistry is an attractive market as it is still at a relatively early development stage and because of its promising growth potential. In 2010, the total production of biochemistry in Korea was about 442 million Euros and the export was 187 million Euros. 176 companies are active in biochemistry industry in 2010.

Government

Biochemistry Fostering Strategy by the Ministry of Knowledge Economy (current name: Ministry of Trade, Industry and Energy) was released in December 2012. The goal of the strategy is to become the fifth biochemistry country in the world by 2020. It aims at reaching 10% market share of domestic chemicals, 5% market share of world biochemicals and 917 million Euros of domestic biochemicals production. See figure 1.

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Figure 1. Expected effects of Fostering Biochemistry Strategy

The government will invest 175 million Euros for five years from 2013 till 2017. It is expected to replace 4.8% of crude oil import, reduce 10.8% of CO2 emission and creates 43,000 jobs by 2020.

The three key strategies are Connection, Synergy and Globalization: - Connection: Inducement of cooperation between large and small-medium sized, bio and chemistry companies; - Synergy: Fostering shared growth of industries by building common infrastructure; - Globalization: Certification and standardization to enhance global competence.

Cluster, research institute and university

- Cluster

Osong Bio Valley North Chungcheong province is building Osong Bio Valley. One of the developments within this valley is ECO-Bio. ECO-Bio valley will be located in two regions. Research in materials and bioenergy will be conducted in the area around the city of Chungju; cosmetics and biochemistry will be researched in the area around the city of Jincheon. The entire valley is expected to be fully operational in 2030.

Bioenergy Cluster in Gwangju and South-Jeolla province An added-value bioenergy cluster will be built in Gwangju and Jeolla province. Korea Institute of Energy Research (KIER) will take a lead in the cluster and a total 268 million Euros will be invested by 2017. The key goal of the cluster is to establish a production base for bioenergy development and diffusion. The R&D projects focuses on the production of cellulose biogas and its diffusion technology, establishment of a degradation facility for bio waste such as used paper and by-products from agriculture and gas production facilities. Besides these projects, the cluster will invest in companies for commercialization of technology, the establishment of business centres and the training of specialists.

- Research institute Advanced Biomass R&D Centre (ABC) - http://www.biomass.re.kr/en ABC conducts research projects of the Ministry of Education, Science and Technology. See figure 2.

Domestic chemicals market share (%) World biochemical market share (%) Domestic biochemical production (Tn KRW)

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State Major Subject Details Form of Research Research

Scale

(2010~2011)

* To develop

technology for highly

efficient terrestrial and

aquatic biomass

* Secure eco-friendly

biomass and utilizable

technology.

* Study

transformation strain

system

- Secure more than 100 species

genes related in terrestrial and

aquatic biomass growth

- Select more than 1 microalgae

and verification more than 2 basic

technologies

- Selection and improvement of

flexible bioenergy sources and

production strains (more than three

species)

- Develop microbial strains

optimized for biofuel and

biomaterial production.

Development of

original

technologies

Lab-scale

(2012~2014)

* To develop

technology of highly

efficient terrestrial and

aquatic biomass

* Develop biomass cultivation, harvest,

utilise element

technologies and

study scale-up

* Develop highly

efficient biomass

transformation strain

and catalysts

- Secure more than 30 species of

valuable genes of terrestrial and

aquatic biomass, and 1,000 strains of indigenous microalgae

- Development of concentrated

microalgae cultivation (more than

5g/L) and achieving 80% of

saccharification efficiency

- Development of high efficient

biofuels and a catalyst system

Development of

original

technologies

Lab-scale

Development of

application

technologies (spin-

off of technologies

Enterprise' Participation)

Test bed

Enterprise'

Participation

(2015~2018)

* To develop

technology of highly

efficient terrestrial and

aquatic biomass

* Establish a

combined system for biomass cultivation,

harvest, utilization,

and development of

oil platform technique.

* Establish a process

of biofuel and material

production

- Development of highly efficient

microalgae strain which have a fast

growth rate

- Secure high-lipid productivity

more than 12g/m2/d (open type),

5g/L/d(heterotrophic microalgae),

reduction 50% of cost for pre-

treatment and saccharification

process, source flexible CBP bioethanol more than 80g/L

- High efficiency bioethanol

(ethanol concentration 130g/L,

productivity 1/g/L/hr), biodiesel

(conversion rate 95%, cetane

number more 52, productivity

0.1L/h)

Development of

original

technologies

Lab-scale

Development of

Utilization

Technology

(Technology

transfer, Enterprise'

Participation)

Scale-up

(Enterprise'

Participation)

Figure 2. Sequential Research contents by ABC

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Ulsan Fine Chemistry Industry Center (UFIC) at Ulsan Technopark - http://english.ufic.or.kr/ Ulsan has the biggest chemical industry complex in Korea. Therefore, many so-called Regional Innovation System (RIS) programs are running here in cooperation with local chemical companies.

The R&D office at the fine chemical business division is using sulphur, which is a by-product of the petrochemical industry in Ulsan, as base-material for construction materials. It is used in asphalt, water pipe and paving blocks.

Together with a paper factory Moorim P&P, the fine chemical business division is developing a method to convert a by-product of the paper manufacturing process into a material that can be used to make car parts. To make these parts, the extract lignin is combined with existing plastic. This results in eco friendly car parts with better material properties.

Research Institute of Industrial Science and Technology (RIST) - http://www.rist.re.kr/ The energy & resources team at the energy & environment research division is using by-products of the steel industry to make a steel slag marine structure, triton, which is made from material with a high proportion of the mineral elements. The triton fish shelter therefore provides ideal conditions for the growth of seaweed and other sea organisms. Tests with this material have been done of the coast of Korea. Biomass (seaweed and coral reef) flourished on the new material.

- University

The Bio Refinery Research Center at Chosun University is developing a large capacity enclosed flat photo bioreactor (PBR). This project is supported by MKE and a total 1.5 million Euros has allocated to it in 2010 for three years. The centre is also developing a technology to produce biodiesel from the biomass produced by the PBR. The PBR is a hybrid of solar and LED and it has diverse sizes from 5L to 200L, therefore it can be used for different types of algae. Using continuous culture technology, the productivity of the PBR has been improved remarkably. See figure3.

Figure 3. A large capacity enclosed flat photo bioreactor by Chosun University

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Products in market

Company Product

Huvis

Ingeo

‘08

http://www.huvis.com

Samsung Electronics

Reclaim phone

‘09

http://www.samsung.com/us/mobile/cell-phones/SPH-M560ZAASPR-features

LG Hausys

ZEA Maru

‘10

LG Hausys floor helps contribute points to Leed Scorecards by offering a low-emitting flooring system and thus containing the required levels of recycled content.

http://www.lghausys.com/eng/product/interior/flooring/subindex.jsp

Woongjin Chemical

Bioplastic Filament

‘10 http://www.wjchemical.com/product/product01.asp

SK Chemical

ECOZEN Bioplastic

‘12

http://www.skchemicals.com/korean/product/ecozen/main/main.asp

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Challenges and opportunities

Finding biomass is the biggest challenge that Korea faces in the development of a biochemistry industry. Not only biomass but also basic materials such as Poly Lactic Acid (PLA) are heavily dependent on import. In terms of technology, Korea is advanced in fermentation technology. Other basic technologies are rather weak. Lack of specialists and infrastructure limits R&D results to be commercialized. The uncertainty surrounding these new businesses is also a reason for the passive investment of companies in the biochemistry.

Compared to the Netherlands, fewer by-products come from agriculture but more from chemical industry. Therefore, innovative research in the chemical industry has better chances cooperating with Korea. It is good to know that not only the attention from the government is increasing, but also the awareness and needs from customers are growing. This means that due to the increasing interest eco-friendly products using biomass have advantages in market.

Resources

Ministry of Trade, Industry and Energy (MOTIE) - www.motie.go.kr The Korea Economic Daily - http://english.hankyung.com/