As lignin supplies rise on the back of growing cellulosic feedstock utilization, commercialization opportunities of up to $242 billion are emerging in 13 select chemicals, according to a July 10, 2014, news release from Lux Research. Lignin, a component of lignocellulosic biomass and a common byproduct stream from cellulosic conversion processes, has a potential market worth of $242 billion across 13 select products alone, but commercialization of these lignin-derived chemicals such as BTX (a mixture of benzene, toluene, and xylene), and cyclohexanol lags growing feedstock supplies.

Today, the commercial sale of lignin is limited. Even though the pulp and paper industry produces about 50 million metric tons (MT), most is burned for power with only one million MT reaching the chemicals market. The supply of lignin from other sources is set to grow, however. Growing production of fuels from lignocellulosic feedstocks alone is projected to process up to 2.9 million MT in 2017, creating huge opportunities for the creation of higher-value chemicals.

"Lignin is capable of producing a variety of straight chain, cyclic and aromatic chemicals, each with market sizes ranging from the tens of millions of dollars up to the hundred-billion-dollar range," stated Julia Allen, Lux Research Analyst and the lead author of the report titled, "Finding Untapped Value: Converting Lignin to Higher Value Chemicals."

"But creating higher-value chemicals requires technology development to balance feedstock variability, lignin separation effects, depolymerization, and product separation challenges, which still has significant work ahead," she added.

The news release is available online.