Development Trends of Decarbonization in Automobile Industry

Facing the severe challenges of global climate change, China needs to take action to achieve its carbon neutrality goals. In this context, many automakers have expanded their efforts in low-carbonization and dedicated themselves to exploring and applying sustainable and recyclable materials. This shift is not only a response to the depleting petroleum resources but also a profound reflection on environmental pollution issues and active measures to address them.

In China, bio-based materials are leading the development of strategic emerging industries. With continuous technological breakthroughs and growing market demands, bio-based materials are poised to be widely applied in the future.

Application of Bio-based Polyurethanes in Automotive Decarbonization

Bio-based polyurethanes (PUs) are high molecular weight materials produced from renewable biomass through polymerization. Compared to petro-based PUs, bio-based PUs have several advantages:

With the rapid development of the automotive industry and increasingly stringent environmental regulations, the prospects for the application of bio-based PUs in the automotive field are broader. Here are the main application scenarios of bio-based PUs in automobiles:

1) Car Seats and Interiors: Bio-based PUs can be used to manufacture cushions for car seats, door panels, dashboards, center consoles, and other interiors. It not only provides excellent comfort and durability but also effectively reduces VOC emissions, enhancing the driving experience.

2) Sound Deadening and Heat Insulation Materials: Huntsman has launched ACOUSTIFLEX ® VEF BIO system that contains up to 20% bio-based content. This new solution has outstanding sound deadening and heat insulation performance while lowering the carbon footprint of components. This system is widely used in areas such as automotive carpet back, dash and wheel arch insulation.

3) Lightweighting: The lower density of bio-based PU makes it an important material for automotive lightweighting. By substituting traditional metal and plastic components, this material can significantly reduce car weight and improve fuel efficiency.

4) Eco-friendly Coatings: Bio-based waterborne polyurethane is used to produce high-performance leather coatings for surface treatments of car components such as door panels, seats, and steering wheels. This type of coating is not only eco-friendly and non-toxic but also enhances the aesthetics and durability of car interiors.

5) Other Applications: Bio-based PU can also be used to manufacture bumpers, airbags, wheel arch insulation, and other car components. With technological advancement and cost reduction, its application range is expected to expand further.

Market Size of Bio-Based Polyether Polyols in China

Polyether polyols, as one of the main raw materials for polyurethane, are of significant importance in the field of materials science. With the widespread adoption of sustainable development concepts, bio-based polyols has been gradually rising and become a focus in the international market.

However, bio-based polyol is still in the concept development stage in China, and its actual application and market penetration need to be expanded. In terms of supply, China’s bio-based polyol industry has not yet formed a stable production and sales chain. Most production activities are customized production without a standardized production process. PUdaily predicts that the performance of bio-based polyols in China will be further optimized due to the improvement of manufacturing processes. Moreover, stricter environmental policies will boost demand for bio-based polyols, thereby stimulating an increase in the supply of raw materials. Based on this trend, China’s bio-based polyols capacity is expected to exceed 200ktpa by 2028.

Comparison of Demand for Bio-based Polyols in China and Other Countries

In terms of demand, the demand for bio-based polyols is relatively limited in China. Its consumption is mainly concentrated in export-oriented enterprises. In order to meet the environmental requirements of overseas customers, these enterprises have tried to use bio-based polyols as an alternative material. In contrast, overseas customers have a stronger demand for bio-based polyols, as its environmental friendliness such as low odor and low VOC can easily meet or even exceed the strict environmental standards set by national and local governments.

Challenges in Popularizing Bio-based Polyols in China

Despite continuous breakthroughs in the production technology of bio-based polyols, its production cost remains high. It’s mainly attributed to the complexity and high costs of obtaining and processing bio-based materials. The price of bio-based polyols is influenced by various factors, including the type of bio-based materials, such as soybean oil, castor oil, palm oil, etc. Different types of bio-based materials lead to price differences. The bio-based content is also a key factor. Usually, making a product with a higher bio-based content costs more, which drives up the final product price for consumers. It is worth noting that compared to the bio-based content, the price of bio-based polyols is more affected by raw material prices, especially when using high-priced materials such as castor oil.

The price spread between bio-based polyols and petro-based polyols is significantly different. The price of bio-based polyol made from soybean oil is about 1.5 times higher than that of petro-based polyols. When the feedstock is castor oil, the price is even higher. The high cost undoubtedly increases the difficulty to popularize bio-based polyols and limits their application scope.

Therefore, reducing production costs and improving economic benefits have become major challenges for the bio-based polyols industry. It requires various approaches such as technological innovation, optimizing production processes, and finding more economically viable bio-based materials to achieve a favorable position in future market competitions.

Currently, the consumption of bio-based polyols by upholstered furniture exceeds that by automobiles. In view of cost, product performance, demand and other factors, Chinese carmakers have relatively lower demand for bio-based polyols. Nevertheless, Hyundai Motor, BYD and some other carmakers are still accumulating technological reserves for bio-based polyols, indicating growth potential in the automotive field. When considering the use of bio-based polyols, the priority consideration for Chinese carmakers is the addition of selling points rather than reducing VOC content, since using bio-based polyols to reduce VOC content is not suitable.

The uniqueness of bio-based polyols brings about a series of technical challenges. Since they originate from renewable resources like plant oils, their molecular structures are quite different from petro-based. This difference is particularly pronounced when the bio-based content is high, which may lead to adverse changes in molecular chain structure, crosslink density, etc., thus affecting their physical and mechanical properties such as strength. Moreover, certain components in bio-based materials may be sensitive to environmental factors like heat and light, making their products prone to degradation or discoloration, thereby affecting the stability of polyols. Therefore, it is essential to fully consider the molecular structure and performance characteristics of bio-based polyols for ensuring product quality and stability.