Cereplast, Inc., (OTCBB: CERP) producer of proprietary bio-based resins which are used as substitutes for petroleum-based plastics, reports that the company’s CEO, Frederic Scheer, delivered a speech at this year’s Commodity Classic — a conference of the corn growers’ association — entitled “Displacing Petroleum-Based Plastics with Bioproducts.”
Scheer’s speech highlighted the benefits of bio-based resins and products, noting that the feedstock is readily available, annually renewable, environmentally friendly and sustainable. Reinforced by the fact that the structural integrity and performance of bio-based plastics are now equal or superior to traditional petroleum based plastics due to use of new and breakthrough technology, this industry’s time has now arrived.
Inflection point for industry
While noting that there are both political and economic reasons for the new viability of the bio-based plastics market, Scheer emphasized that it is the macro-economics of the marketplace that will sustain the long-term viability of the market sector, and that the bio-based industry is here to stay. The push to displace traditional petroleum-based plastics in favor of the new bio-based plastics is set for the long haul because of the market conditions and advancements in nanotechnology that Cereplast has introduced into the production process, not because of short term trends or fickle political whims.
“The political and economic environment has changed so much in such a short period of time,” said Scheer. “Our burgeoning new industry must race to expand capacity to meet the demand for bio-based plastics which has been created by the new economic and political reality. Politicians, academics and business leaders have now awakened to the fact that we are in a new world order. Peak oil and the need to wean ourselves from foreign petroleum sources, combined with new and more efficient production technologies driven by nanotechnology breakthroughs, have rapidly brought the bio-plastics industry to the forefront of the economic growth arena, and we are ready for solid, long-term sustained growth.”
Discussing price competitiveness, Scheer noted that at current pricing levels for petroleum feed stock, the price for base resins ranges from $0.62 $1.60 per pound, while the price range for bio-based resins is from $0.60 $1.62 per pound. This means that the bio-based plastics world has now progressed to an era of pricing parity with traditional petroleum-based plastics feedstock. This fundamental shift in the underpinnings of the pricing model allows for price competitiveness now, and going forward.
Scheer points out that further economic benefit accrues to those using bio-based resins because the processing equipment which converts the resins into the end products, runs at temperatures nearly 50 per cent lower than traditional petroleum-resins. This results in additional energy and cost savings due to lowered electricity and natural gas consumption.
Scheer was joined at the podium by Gerald Roussel, Manager, Energy & Environment Government Relations at Ford Motor Company (NYSE: F). His talk discussed Ford’s multiple years of research and investment into the use of ethanol to replace petroleum with a more sustainable bio-based fuel.
About Cereplast, Inc.
Cereplast, Inc. has developed a breakthrough technology to produce proprietary bio-based resins which are used as substitutes for petroleum-based plastics in a variety of applications, including the manufacture of food service items such as utensils, plates, cups, and straws. Made from renewable resources such as corn and potato starch, Cereplast resins are bio-based, biodegradable and compostable and have comparable or superior performance characteristics to conventional plastics, and are sold at prices that are competitive with plastics.
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