Cereplast develops algae-based bioplastics

“Algae-based resins represent an outstanding opportunity for companies across the plastic supply chain,” Cereplast founder, Chairman and CEO Frederic Scheer said in a news release. “We believe that algae has the potential to become one of the most important green feedstocks for biofuels, as well as bioplastics.”

California-based Cereplast currently uses corn, tapioca, wheat and potatoes to make its bioplastics. The firm also compounds Ingeo-brand PLA bioplastic made by NatureWorks.

“It’s critical to have access to feedstocks not based on starches,” said Scheer. Non-starch feedstocks “have less impact on the food chain and are less sensitive to price changes”.

Scheer said that the algae-based resins could be blended with polypropylene or other standard resins and used in injection moulded or thermoformed parts. Cereplast is also hoping to use the new products in extrusion applications, he said.

Scheer declined to identify what companies would supply the algae needed for the resins. Company officials pointed out that oil giant Exxon Mobil recently partnered with algae producer Synthetic Genomics, in a deal that may be worth more than $300m (€200m). Oil firm British Petroleum has also invested $10m in US algae supplier Martek Biosciences.

Scheer said Cereplast was “very encouraged” by the ExxonMobil and BP deals.

Cereplast is also in the process of finding a toll compounder that would allow the firm to discontinue production at its Hawthorne plant. Officials said earlier this year that it was no longer cost-effective for Cereplast to produce its own bioplastic resins. Scheer said a toll compounder should be in place by the end of the year, making bioplastics based on Cereplast formulations.

Cereplast’s sales for the first half of 2009 were down 26% to about $1.5m (€1m). The firm lost $3.2m (€2.2m) in the first half of 2009 after losing $7m (€4.7m) in the same period a year ago.