Facilitating the Biochemical Industry with Policy Reform- Exclusive Interview: Corinne Young

Corinne Young is one of the leading policy voices for the bio-based industry in North America.She has secured government funding for projects ranging from millions to billions of dollars, taking the lead in developing sustainability frameworks, community organization, regulations and legislation. She has served in a number of governmental departments, such as the Executive Office of the Presidency, Department of Interior, the Senate and the House of Representatives. More recently she has been involved in securing funding and financial benefits for the development of new biorefineries for companies. At present she runs her own firm Corinne Young llc and she serves on boards for InfoCast and the UMass Institute for Biofuels Research TMBR.To follow her presentation at the Infocast Milan event, we asked her a few questions by email.

How did you become involved in lobbying while with Myriant?

I worked for Congress for ten years, which included helping to draft organic legislation for the bioindustry, establishing the biorefinery programs in the US Departments of Energy (DOE) and Agriculture (USDA). During this congressional tenor, in the late 1990s, Myriant's CEO and Chairman, Mr. Stephen Gatto, reached out to me as a constituent, seeking assistance, when he was CEO/Chairman of then BCI/Celunol (which became Verenium, and recently changed again with BP's acquisition).  In late 1990s, I secured first funding from the DOE for the then BCI-Celunol cellulosic ethanol pilot. Each year since, continued advocacy of bioindustry to yield positive societal benefits -- from economic to environmental. In January 2007, took leap of faith from government to industry, joined Myriant as Director of Government Affairs to become bolder agent of change from within industry to secure proactive government market pull programs (RFS2, BioPreferred) and funds to accelerate and de-risk scale up and deployment. After helping to propel both biofuels and biochemicals, in April 2010, took another leap of faith to launch my own consulting firm focusing on biochemicals. I passionately believe we have a historic opportunity -- and this is global -- to transition our consumer economies from petroleum-based feedstocks, to renewable bio-based feedstocks. Although biochemical technology has experienced exponential growth over the last few years, and is now at a tipping point, we still need government support to de-risk scale up of sustainable manufacturing platforms and aggressive market adoption of bio products.

Tell me about the grant for a Biorefinery that you helped to secure.

I secured a $50 million grant from the US DOE for a demonstration scale bio succinic acid plant (for Myriant). Bio succinc acid has been targeted by the DOE, USDA, and leading market analysts as a top bio chemical building block to displace petroleum. There are billion dollar immediately addressable markets for this chemical now that other companies like BioAmber have scaled-up lower-cost biobased routes to succinic acid. The key is to ensure the US government ups the ante with suite of expanded policy incentives including more grants, production tax credits, ambitious BioPreferred program to propel world leadership in sustainable biopolymers and biomaterials.

 

What is the current state of US biochemicals policy?

I have to admit US biochemicals policy fell prey to benign neglect when the price of crude shot above $120/barrel in 2007, which precipitated a preferential treatment of biofuels and other renewable energy technologies over biochemicals for energy independence. That tide has changed. Now USDA has launched BioPreferred Program, EPA viewing Green Chemical initiatives as way to drive jobs, help industry bring innovative alternative materials to market for pollution prevention. White House and incoming new Republican House leaders are talking about jobs, US manufacturing, and clean energy economy -- biochemicals industry delivers all three imperatives and more. This year expect to see more industry-government collaborations from companies like NatureWorks, Elevance, BioAmber.

Ultimately, job creation crosses bi-partisan lines, because for the US, the industry is -- and will continue to -- grow jobs in every region of the country. As the President and Congress focus on job creation, reviving US manufacturing, and passing a pro-industry, clean energy package, the biochemicals industry is poised to create over 200,000 new jobs over the next decade (according to the attached BIO Jobs Report). These are Jobs along full value chain -- from feedstock, to high tech, manufacturing, downstream converting, packing and textiles, end of life composting and recycling infrastructure, and service related support. This is historic opportunity for the US to expand policy incentives to propel commercial deployment before industry takes root elsewhere as European and Southeast Asian countries aggressively vie for these commercial biorefineries.

What are the most important considerations for the US with regard to its Biochemical Policy?

The most important consideration is to move swiftly and boldly with production tax credits and commercial scale incentives to realize jobs take root in US -- the industry has global opportunities.    

We need policy that is agnostic to feedstock, biomass conversion technology, and bio products to let market innovation unleash bioindustry as a disruptive sustainable industrial platform for competitive advantage in low carbon economy. Other considerations include:  (1) debunking food verses fuel myths to robustly support use of commercially available industrial sugars now, with transitional support to incorporate ligno-cellulosic sugars once these are commercially viable; (2) allow biochemical projects to qualify for energy efficiency/renewable energy programs based on significant reductions in green house gas emissions; expanding end of life infrastructure for cradle-to-cradle systems with composting and recycling of biobased materials.

What have been major issues caused by US Biochemical policy in the past?

No major issues have been caused, though policy lagged behind biofuels and other renewable energy policy discussion.  However, now that technology has progressed to commercial scale with companies like NatureWorks penetrating all segments of consumer market -- from blue chips to chip bags -- expect expanded policy incentives to drive next growth wave, with international competition ensuing among governments vying for regional biorefinery hubs. Confident this year US policy will catch up to technology and market developments. If not, the major issue for the US will be odd man out -- industry will move to Europe, Southeast Asia, Latin America.

How has Biofuel policy affected industries other than conventional fuel production, such as the Chemicals industry and Agriculture?

Biofuels have provided a valuable industry platform from which biochemicals springboard to replicate a successful petrochemical business model. Depending on fossil fuel feedstock costs, roughly 3-8% of feedstock is used for chemicals, yet this 3-8% generates almost 50% revenue -- almost equivalent value of roughly 70% feedstock used to produce commodity transportation fuel. For US policy, this translates into biochemical plants providing sustainable economics, superior environmental benefits and bigger impact on job creation. After all, transportation fuel is just one commodity chemical application of biomass. 2011 will be the breakthrough year for biochemical innovation in new policy, commercial deployment, market development, and consumer demand.

How has the Biofuel policy in the US had knock on effects in other countries?

It has helped to build international bioindustry, with healthly competition among regions and feedstocks. The global bioindustry is at tipping point, and we look forward to continuing to build international policy to drive growth.

Corinne made a presentation titled New Initiatives in US Bio-Based Policy at Infocast’s event Bio-based Chemicals Europe: Building the Value Chain which took place in Milan from February 8th-11th.