Scaling the U.S. Bioeconomy Takes Smart Policy: Key Takeaways from the Plant Based Products Council Policy Panel

Kemvera COO Brent Cutcliffe on the Biobased Materials Investment and Production Act, and why policy stability matters

Scaling the U.S. bioeconomy takes more than breakthrough technology. It takes the right policies to help promising companies reach commercial scale.

That was the focus of two recent Plant Based Products Council (PBPC) engagements featuring Kemvera Co-Founder and COO Brent Cutcliffe: a virtual panel on federal biobased manufacturing policy, and the PBPC meeting in Washington, D.C.

The panel: Scaling the U.S. Bioeconomy

After being appointed to the PBPC board in January, Brent joined the PBPC Speaker Series panel "Scaling the U.S. Bioeconomy: The Biobased Materials Investment and Production Act." He was joined by Scott Irwin, agricultural economist at the University of Illinois, and Jeremy Wilson, president of the Alabama Soybean and Corn Association.

The bipartisan bill, introduced by Reps. Michelle Fischbach (R-MN) and Nikki Budzinski (D-IL), creates targeted tax incentives for domestic production of renewable materials and chemicals. Companies could choose either:

• a production tax credit of 10 cents per pound for eligible renewable products, or

• a 30% investment tax credit for building or retrofitting manufacturing facilities.
  

Key takeaways

The bioeconomy is already big. The U.S. bioeconomy has been estimated at roughly $489 billion a year, and consumers are increasingly familiar with and demonstrating a preference for plant-based products.

Scale-up is the bottleneck. Many companies struggle to move from pilot projects to full commercial production. Biomanufacturing requires large capital investment and significant planning and construction timelines, so predictable incentives matter.

Policy stability drives investment. Brent emphasized that stable policy is essential for companies commercializing bio-based technologies. "Tax incentives [are] crucial to investment decisions," he said.

Every cent counts in commodity chemicals. Commodity margins are narrow, even in the best of times. As Brent noted, a 10-cent-per-pound credit is significant for companies competing against incumbents with decades of infrastructure and process optimization behind them.

Rural communities stand to gain. Building production closer to farms can strengthen supply chains and create new demand for crops like corn and soybeans.

The U.S. can still lead. Other countries, especially China, are investing heavily in biomanufacturing, but the panel agreed the U.S. remains well positioned to compete.

Missed the panel? Watch it here, and read PBPC's full recap.

Continuing the conversation in Washington

Brent was also in Washington, D.C. for the PBPC Ag Bioproducts Policy Summit, joining industry leaders and stakeholders who are shaping the future of the U.S. bioeconomy. Conversations like these help ensure policymakers hear directly from the companies working to bring practical, scalable bio-based solutions to market.

We appreciate the PBPC’s efforts to convene organizations working to advance the U.S. bioeconomy.

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