Technology Commercialization of DOST's Thermoplastic Starch Pellets (Bioplastics) in the Philippines

Date

7-2020

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Glenn N. Baticados

Committee Member

Nanette A. Aquino, Jewel Joanna S. Cabardo, Agnes T. Banzon, Dia Noelle F. Velasco

Abstract

Sustainable development and environmental problems are the challenges faced by the world today that drives the conservation of limited petroleum resources. Greenhouse gas (GHG) emissions, perhaps the most significant climate change contributor, are also a major reason why the reservoir of petroleum should be reduced. The petrochemical industry is one of the key consumers of petroleum resources and the petroleum-based plastics production exploited petroleum as the raw material. The whole life cycle of petroleum-based plastics has an adverse impact that causes environmental pollutions such as plastic and air pollution. Many researches were done to solve these environmental problems caused by petroleum-based plastics and one potential solution is the introduction of bioplastic technology or thermoplastic starch (TPS) pellets production. There is a new wave in green industrial production and that is the competitive advantage bioplastic has over the petroleum-based plastics since bioplastic products are renewable, biodegradable and sustainable alternatives. Thermoplastic Starch Pellets (Bioplastic) are made from natural and renewable feedstock such as cassava, corn, rice, and other starch- producing crops.

In the Philippines, the Department of Science and Technology-Industrial Technology Development Institute (DOST-ITDI) developed the Thermoplastic starch (TPS) pellets that can be produced as an alternative to plastic pellets by the manufacturers in the petrochemical industry. Some petrochemical plants that are currently operating in the Philippines are Philippine Polypropylene, Inc. (PPI), JG Summit Petrochemical Corporation, NPC Alliance, Philippine Resins Industries, Inc., Chemrez Technologies, Inc., and Petron Corporation. Stakeholders of the technology include the farmers, the government, the petrochemical industry, and the plastic manufacturing industry. This research analyzes the technical processes of bioplastic production and compared it to the current process of manufacturing plastic pellets. The process of producing thermoplastic starch pellets includes the mixing of raw materials needed such as Cassava starch, water, nanoclay, and glycerol using the high-speed mixer. It is then processed by the twin-screw extruder by melt-blending and finally, pelletizing. It is concluded that there will be less adjustments for the manufacturers since other machines in the production can still be used. The plant has a production capacity of 50,000 MT and all the investment costs and working capital are computed. The fixed costs such as land, buildings and the manufacturing overhead were not part of the computation since it is assumed that the players of the petrochemical industry will partially include the thermoplastic starch pellets (TPS) production to their current production. The costs of bioplastic production from cassava starch in this study were calculated using the direct costs. The cashflow and the comprehensive income also show a positive trend that means that bioplastic technology is profitable. The payback period is a good financial measure that shows how fast the investment recovers and bioplastic technology has a short payback period. The NPV of bioplastic production is positive and it is calculated for a 5-year lifetime with a real discount rate of 12%. Technological developments are expected in the industry, and given these events, the NPV is still positive. In the sensitivity analysis results, IRR is still positive given the 10% increase in cost or a 10% decrease in net profit. It means that the bioplastic technology is sensitive to changes but still financially feasible. Given the 10% change in price and 5% change in demand, it can be concluded that though there is a 5% less demand, higher price results to higher net income. It is recommended for the investors - the industry players of the petrochemical industry to adapt and have a license agreement with the DOST – ITDI who developed the Thermoplastic Starch Pellets (Bioplastic). They can partially adapt and include the production of the technology in their current production. This research, therefore, recommends further studies to improve the quality and price of thermoplastic starch (TPS) pellets. Strict implementation of plastic ban and subsidy from the government can encourage the investors on pursuing the bioplastic industry. There will be no problem in the plastic manufacturing companies, which are the consumers of Thermoplastic starch (TPS) pellets, to manufacture plastic products since the existing machines and equipment they use in the plastic pellets are suitable for bioplastic pellets production. Corporate social compliance such as waste management programs and wastewater treatments can be implemented to control the pollution caused by the production. All the relevant upstream, intermediate and downstream sectors or the stakeholders should be encouraged to unite and adapt to the new technology.

Language

English

LC Subject

Petroleum chemicals industry--Environmental aspects

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2020 M17 C44

Notes

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Document Type

Thesis

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