Biofuels at the Forefront of Growth Across the U.S. Industrial Bioeconomy

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June 19, 2024

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(Growth Energy) Biofuels are leading a new wave of growth across the American industrial bioeconomy, and a new report proves it.

New research commissioned by Growth Energy and other industry leaders – including ADM, POET, and Marquis Energy – shows that U.S. industrial bioeconomy supported nearly 644,000 domestic jobs, contributed $210 billion to the U.S. GDP, and drove $49 billion in wages. Additionally, the report found that for every direct job created in the bioeconomy (i.e., a job in bioethanol production), another 11 jobs are created elsewhere in the supply chain. That adds up to a job multiplication factor of 12. For comparison’s sake, the job multiplication factor for the sector that includes solar photovoltaics is 6.50 and the multiplier for the sector that includes wind turbines is 3.73.

Providing new impetus for President Biden’s National Biotechnology and Biomanufacturing Initiative, the report illustrated state-by-state gains linked to the transformation of renewable biomass into new products.

And most importantly for policymakers, the report explains why, “A considerable competitive and policy advantage of these industrial bioeconomy jobs is their tie to U.S. soil, both literally and figuratively—these jobs are here and stay in the U.S.”

To learn more, check out the full report available here. READ MORE

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REPORT: U.S. INDUSTRIAL BIOECONOMY SUPPORTS NEARLY 644,000 JOBS (Association of Equipment Manufacturers)
Biden-Harris Administration Announces Actions to Accelerate U.S. Domestic Biomanufacturing Capacity (Bergeson & Campbell)

Excerpt from Association of Equipment Manufacturers: Biomanufacturing advocates today released a new report that provides a closer look at the employment, wages, and economic activity driven by the U.S. industrial bioeconomy. Authored by TEConomy Partners, LLC, the report, “The Economic Impact of the U.S. Industrial Bioeconomy,” illuminates an increasingly important segment of the U.S. economy associated with biomanufacturing and bioproducts (those other than food, beverages, and pharmaceuticals). Included in the report are state and federal figures for economic activity tied to the transformation of renewable biomass into fertilizers, bioplastics, biofuels, bio-lubricants, and a host of other industrial bioproducts, as well as the research and development of microbes, enzymes, biocatalysts, and other technologies used in modern biomanufacturing. Supporting expansion in the sector is a key goal of the National Biotechnology and Biomanufacturing Initiative, as outlined by President Biden.

“Our abundant natural resources, unparalleled agricultural sector, and strong leadership in the sciences have combined to establish America’s industrial bioeconomy as a powerful engine for U.S. growth,” said Curt Blades, Senior Vice President of Industry Sectors & Product Leadership at the Association of Equipment Manufacturers. “These are high-tech jobs, often in union-heavy supply chains like those for biofuels, that add value to the economy at every stage. With the right support from Washington and a continued focus on renewable products, this segment has the potential to turbo-charge U.S. manufacturing.”

According to the report, in 2023, the U.S. industrial bioeconomy supported nearly 644,000 domestic jobs, contributed $210 billion to the U.S. GDP, and drove $49 billion in wages. In terms of total economic output, the top five states were Illinois, Iowa, California, Nebraska, and Minnesota. Other states, Georgia and Ohio, broke into the top five when looking specifically at direct and total employment, respectively.

“The U.S. industrial bioeconomy has remained a consistent source of domestic jobs and manufacturing strength without the need for any special strategies to bring jobs back from overseas,” explains the report. “The significant jobs multiplier demonstrates this key facet of the U.S. industrial bioeconomy. The U.S. industry provides jobs, economic activity, and sustainability throughout the U.S. A considerable competitive and policy advantage of these industrial bioeconomy jobs is their tie to U.S. soil, both literally and figuratively—these jobs are here and stay in the U.S.”

The report also found that the average industrial bioeconomy worker took home $133,600 in annual compensation and that each direct job in the sector generates or supports more than 11 additional jobs through indirect means, such as the purchase of raw materials, including agricultural commodities, and other inputs.

“Relative to other industrial sectors, the extended domestic supply chain of the U.S. industrial bioeconomy generates outsized secondary economic benefits,” wrote the authors. “This is especially true of domestic employment, where each direct job supports 11.08 additional indirect and induced jobs (total employment multiplier of 12.08). For comparison, the employment multiplier for the sector that includes solar photovoltaics is 6.50 and the multiplier for the sector that includes wind turbines is 3.73.”

The report was commissioned by a coalition of leading innovators, manufacturers, and trade associations committed to expanding the U.S. bioeconomy. Supporters include the Association of Equipment Manufacturers, Clean Fuels Alliance America, National Corn Growers Association, Growth Energy, Renewable Fuels Association, ADM, Aemetis, Bayer, Bunge, Marquis Energy, Novonesis, and POET. READ MORE

Excerpt from Bergeson & Campbell: The White House Office of Science and Technology Policy (OSTP) published a fact sheet on June 25, 2024, on the Biden-⁠Harris Administration’s actions to advance American biotechnology and biomanufacturing. According to the fact sheet, on June 25, 2024, the White House, members of the National Bioeconomy Board, and the U.S. Departments of Energy (DOE), Defense (DOD), and Agriculture (USDA) convened major biotechnology and biomanufacturing companies, nonprofits, and other stakeholders to highlight progress to date and discuss critical upcoming milestones to support the long-term success of the nation’s bioeconomy. The fact sheet states that in June 2024, the Biden-Harris Administration announced a set of actions to accelerate U.S. domestic biomanufacturing capacity and highlighting progress in the two years since the President signed Executive Order 14081, “Advancing Biotechnology and Biomanufacturing Innovation for a Sustainable, Safe, and Secure American Bioeconomy,” including:

DOE’s Loan Programs Office announced a $213.6 million conditional loan guarantee to Solugen Inc’s Bioforge Marshall facility in Marshall, Minnesota, that will house three modular trains manufacturing various organic acids for use in the concrete, cleaning, agricultural, and energy industries — “cutting harmful emissions from hard-to-decarbonize sectors while helping deliver healthier communities across the nation.”

USDA is making available recommendations for revisions to the North American Industry Classification System (NAICS) and North American Product Classification System (NAPCS) codes for the bioeconomy. According to the fact sheet, the classifications provide a systematic organization of both industries (NAICS) and products (NAPCS) and are currently lacking for the bioeconomy. NAICS industries are defined by similarities in production processes. NAPCS products are defined based on use. The recommendations for revisions to the NAICS and NAPCS are guided by the National Institutes of Standards and Technology’s Bioeconomy Lexicon and a study of the feasibility of measuring the bioeconomy by the Bureau of Economic Analysis. The fact sheet states that the revisions will lay the foundation to organize, sustain, and accelerate the growth of the U.S. bioeconomy through data-driven decision-making.

As reported in our June 25, 2024, blog item, USDA is also releasing a request for information from the public as it explores options for reducing the regulatory burden for modified microbes. The fact sheet states that engineered organisms have the potential to improve agricultural productivity and address sustainability and climate goals. The information USDA hopes to receive will inform how to ensure proportionate oversight that will allow for both safety and commercialization of beneficial products.

The National Security Council is announcing the newly formed Biopharma Coalition (Bio-5) to support secure biopharmaceutical supply chains, in partnership with the Office of Pandemic Preparedness and Response. The United States, the European Union, India, Japan, and the Republic of Korea will work together to strengthen biopharmaceutical supply chain resilience. The Bio-5, which initially met in a track 1.5 format alongside industry representatives from each entity, will focus on building resilient supply chains for active pharmaceutical ingredients (API) currently sourced primarily from the People’s Republic of China. The five countries will seek opportunities for their governments and the private sector to deepen coordination on policy, regulations, research and development capabilities, and other tools to enhance the resilience of this vital sector. READ MORE