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Funding support and infrastructure are needed to bring bio-based products and processes to market and meet net zero targets, urges Lynsey Dunbar. Otherwise, start-ups will be looking elsewhere.
Petrochemicals are present in almost every household, from cooking essentials to cleaning agents. Transitioning these products we use on a daily basis towards more environmentally-friendly ingredients will be a crucial part of how we achieve a net zero future at an individual and macro level.
Start-ups, often pioneers in developing new technologies, will likely be the main drivers of the innovation needed to facilitate this shift. In Scotland, several businesses are already harnessing biotechnology to find alternatives to petrochemicals.
Impact Solutions, for example, is exploring a bio-based process that could see fish processing waste used to create one of the key components in the production of nylon. Similarly, the Eco Clean Team is using by-products from fish farming to produce surfactants – one of the main chemical compounds in detergents and other industrial cleaning products.
Another business adopting a circular approach is SeaDyes, which is using seaweed as a base for natural fabric dyes, offering potential for fashion and textiles manufacturers to reduce their reliance on petrochemical-derived colourings.
By embracing sustainable technologies, the chemicals industry can not only reduce its carbon footprint but also foster economic growth and create high-quality, sustainable jobs.
However, to position the UK as a global leader in green chemistry and advanced materials, we need to create a supportive environment with the funding, infrastructure, and policy frameworks to support new biobased alternatives to petrochemicals.
Financing growth
Turning innovative concepts into commercially viable products and services at a consistent rate has proven difficult across various sectors. This is especially true in the bio-based world, where transforming lab-based research into scalable businesses can be an exceptionally lengthy and complicated process.
The challenges are varied and complex. Biotechnology cannot simply be scaled up by increasing size, as a laboratory process that works on a small scale may not be feasible at an industrial level. As well as technical barriers, the significant capital required for scaling up production often proves prohibitive for smaller companies. This puts them at risk of falling into what is known as the ‘valley of death’, where start-ups don’t manage to achieve the investment to demonstrate their process at a scale, a requirement to de-risk their technology to investors.
To position the UK as a global leader in green chemistry and advanced materials, we need to create a supportive environment with the funding, infrastructure, and policy frameworks to support new biobased alternatives to petrochemicals
Growth, therefore, requires funding. This is a particularly prevalent challenge in Scotland, where SMEs make up over 99% of the business population, according to government figures, and there is a well-known lack of domestic investors who can provide the level of funding required to support start-ups from minimum viable product to commercial scale. The same is true of many other parts of the UK.
Likewise, investors understandably want a degree of certainty that the processes they support can be scaled successfully. However, many biotech businesses struggle to attract the investment needed to demonstrate that their concepts can function beyond the laboratory setting. This is a cycle that is tough to break.
Building on infrastructure
On a brighter note, the UK has a strong foundation to build upon. We have a growing industrial biotechnology sector and a competitive skills base, along with facilities like IBioIC’s FlexBio, which supports process development up to 30 litres and, as of February 2025, will be able to support fermentation scale up to 300 litres.
Yet, such assets only represent one step in what is typically a long journey. Across the UK, there is a shortfall of resources to help companies de-risk the scaling process. By comparison, our European counterparts benefit from a variety of facilities, including Bio Base Europe in Ghent, Belgium.
This lack of infrastructure has prompted an increasing number of UK companies to relocate their operations to the continent. ENOUGH, a sustainable protein start-up originally based in Glasgow, is just one example of a business moving to Europe to access the facilities it needs to scale, and then deciding to stay there to begin manufacturing.
Other companies have resorted to taking more unconventional routes. Celtic Renewables, for instance, was keen to develop in Scotland and had to undertake crowdfunding campaigns to finance its scale up efforts. To foster investment in Scotland’s bioeconomy, IBioIC launched a refreshed Scottish Bioresource Mapping Tool earlier this year. It’s is designed to help businesses identify different feedstocks, from agricultural and forestry waste to food and drink co-products, industrial carbon dioxide, and seaweed. These materials can serve as the basis for new, greener bio-based chemicals and products, encouraging businesses to consider the UK as a viable location for their operations.
Incentivise the change
To facilitate the shift from petrochemicals, we would welcome the introduction of policies that incentivise manufacturers and SMEs to transition to sustainable alternatives. These incentives could include tax breaks, grants, or enhanced access to capital for companies investing in sustainable technologies and processes.
Programmes such as the UK’s Renewable Heat Incentive (RHI) illustrate the potential for similar support structures in sustainable manufacturing. RHI has promoted the adoption of renewable heating systems by providing financial incentives to offset installation costs – a model which could be replicated to support the growth of the bioeconomy.
A sustainable protein start-up originally based in Glasgow, is just one example of a business moving to Europe to access the facilities it needs to scale, and then deciding to stay there to begin manufacturing
The BioPreferred Program in the USA is another example of a system that has helped boost the use of bio-based materials. By introducing an extra label on product packaging that details its bio-based content, the initiative not only encourages consumers to make more environmentally conscious choices, but also enables manufacturers to demonstrate their commitment to sustainability.
To transition the chemicals sector to net zero, robust government policies and frameworks are essential, as is industry leadership to adopt green technologies. Many companies are already making great progress with bio-based processes and products, but we cannot afford for them to fail.
Start-ups, not bound by multinational supply chains, have the flexibility to innovate differently. Yet, it falls upon the larger companies to engage with them and facilitate this change on a broader scale.
While there is no silver bullet to force an overnight change, increased collaboration with the public sector, coupled with access to infrastructure and support for scaling up, will help to secure a greener future for the chemicals industry and beyond.
Dr Lynsey Dunbar is senior business engagement manager at IBioIC