Liquid Light recently signed a technology development agreement with The Coca-Cola Company to accelerate the progress of its CO2 to mono-ethylene glycol (MEG) conversion technology. This news follows Coca-Cola’s recent unveiling of its first PET plastic bottle made completely from plant materials.
With this announcement, Liquid Light joins Virent, Gevo, and Avantium on the Coca-Cola PlantBottle project. Gevo focuses on developing bio-PX as a precursor to bio-TPA, Avantium looks into FDCA for polyethylene furanoate (PEF), while Virent focuses on developing an alternative route to bio-PX for the (client registration required) production of bio-PET. Liquid Light aims to produce ethylene glycol from CO2, which would further augment Coca-Cola’s existing PlantBottle Packaging Program when the Liquid Light technology converts biogenic carbon sources.
But if Coca-Cola can already produce 100% bio-based PET, why did the company just sign this agreement with Liquid Light? Now that Coca-Cola has achieved its 100% bio-based PlantBottle, the company wants to implement the exclusive use of this bottle by 2020. However, it will not be able to do this on a global commercial scale while remaining cost competitive with (client registration required) petroleum derived alternatives. This is where Liquid light comes into play. The company claims its route to be a lower cost alternative to the ethanol to MEG route used to produce the bio-MEG in Coca-Cola’s PlantBottles today.
When we spoke with the company last year, we were told of a hypothetical model where a Liquid Light MEG facility would be an alternative to the Quest CCS Project, which plans to bury 1 million tons of CO2 per year underground. In this scenario, a Liquid Light facility would use the 1 million tons per year of CO2 to produce around 625,000 tons per year of ethylene glycol. Assuming a cost of carbon dioxide of $77/ton and a 10% discount rate, the company projected operational expenses of $402 million per year, which translates to approximately $640 per MT of MEG. Current selling prices for commercial volumes of MEG range from roughly $800 per MT to $1,000 per MT, thereby potentially leaving enough margin to compete on price parity with incumbents. If Liquid Light is able to achieve its cost claims, this gives Coca-Cola the ability to kill two birds with one stone: expanding its options for sourcing bio-MEG, while also obtaining it at a price on par, or even lower, than incumbents.
With its recent flurry of bio-PET announcements, Coca-Cola is becoming a leader in developing and implementing bio-based alternatives into its product portfolio; however, we are seeing other companies follow suit. For instance, (client registration required) LEGO’s recent sustainability announcement emphasizes the vast amounts of time and money companies are willing to invest in order to go green. Announcements like this emphasize the growing opportunities for companies looking to address sustainability concerns in existing value chains.