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Frost & Sullivan: High-value Opportunities For Lignin

LONDON, Nov. 27, 2012 /PRNewswire/ -- Addressing markets worth more than 130 billion dollars, lignin could become the main renewable aromatic resource for the chemical industry in the future. The first opportunity could emerge as early as 2015 from the direct substitution of phenol in most of its industrial applications: phenolic resins, surfactants, epoxy resins, adhesives or polyester.

"The industry is just beginning to scratch the surface of lignin's potential," explains Frost & Sullivan consultant, Nicolas Smolarski: "It is the only renewable source for industrial aromatics production and is de-correlated from the fluctuating price of oil."

Lignin represents 30 per cent of all the non-fossil organic carbon on Earth. Its availability exceeds 300 billion tonnes, increasing annually by around 20 billion tonnes. A high quantity of lignin is found in wood, in which it represents 20–35 per cent in terms of weight. Compared to other wood components (cellulose and hemicelluloses), it is a much more complex polymer, but has been considered for a long time a low-quality and low-added-value material.

For example, as of 2010, the pulp and paper industry alone produced an estimated 50 million tonnes of extracted lignin, but only 2 per cent (1 million tonnes) was commercially used for low-value products such as dispersing or binding agents; the rest was burnt as a low-value fuel. Overall, the lignin business today represents roughly 300 million dollars.

However, new, developing technologies now allow the extraction of high-purity lignin which can be converted in various high-value chemicals and products, among which are BTX (Benzene, Toluene, Xylene), phenol, vanillin or carbon fibre.

Mr Smolarski explains that "one of lignin's unique strength is that it can either be used directly as a 'drop in' to replace phenols in an existing petrochemical process, or it can be further processed to create polymer building blocks."

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