Expanding Applications and Uses of Biotech - SERI - Apr10

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Feature


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April 2010 | SERI Quarterly | 41

Expaning Applications an

Uses of Biotechnolog KOH You-Sang

INCREASING APPLICATIONS OF BT

Biotechnology (BT) can create new substances

or introduce new industrial processes through

genetic engineering, ermenting, cell culturing,

and adding enzymes. Through the ages man-

kind has been using yeast and lactobacillus to

make ermented oods such as soybean paste,

kimchi, cheese, beer, and yogurt, which have be-

come embedded in our daily lives. High-tech

BT, which is based on genetic engineering, start-

ed to lourish with the start o modern geneticengineering technology in 1973. First applied to

pharmaceutical, agricultural, and ood indus-

tries, BT is now being used across an even wider

spectrum, including in energy, environment,

chemical, and electronics industries. The pro-

gression resembles inormation technology (IT)

at its early developmental stages. In the past, IT

applications were limited to electronics and tele-

communication industries, but it gradually

spilled into all types o industries, including

transportation, security, healthcare, and social

inrastructure.

The global BT market, estimated at about $218

billion in 2008, is expected to expand 8 percentannually into a $381 billion market by 2015.

Among several BT industry segments, biophar-

maceuticals, bio-energy, and bio-agriculture

will likely continue relatively high growth. The

market or biomaterials can replace petrochem-

ical materials and has a signiicant growth po-

tential once it reaches economic easibility. The

production value o Koreas BT reached $3.7 bil-

lion in 2007, claiming just 2 percent o the glob-

al market.

The reason or the increased adoption o BT is

because it is environmentally riendly and cost

eective compared to existing industrial meth-

ods. Since bioprocesses are more energy eec-

tive and simpler than chemical production pro-

cesses, they help to reduce costs in innovative

ways. As or paper manuacturing and textile

industries, enzyme cleaning can remove con-

taminants at a low temperature at 4060 per-

cent o the cost o chemical cleaning. Also, a

production using microorganisms and enzymes

|Figure 1 Expanding BT Applications

First Phase

Second Phase

Pharma-ceutical

FoodsAgriculture

Energy /Environment

ChemicalElectronics

/ ITOther

Biotechnology

Expanding

Expanding


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42 | www.seriquarterly.com

Expanding Applications and Uses of Biotechnology

can reduce air and water pollutants signifcant-

ly. For example, Chiles state-owned Codelco,the worlds top copper producer, recovers cop-

per rom actory wastewater by using special

microorganisms.

There are many new products and businesses

stemming rom BT. Randy Lewis o the Uni-

versity o Wyoming inserted the spider thread

gene into the DNA o a goat and succeeded in

producing goat milk that contains spider silk.

Many other research projects are now under

way to reap new unctional materials rom live-

stock, grains, and ruits by inserting a gene into

them. The use o microorganisms also can

sometimes produce unexpected breakthroughs.

|Table 1 Market Outlook of BT Industry Segments

Source: Compiled by SERI.

(Unit: $100 million, %)

Section 2008 2015Production Value of

Korean BTCompanies (2007)

Average AnnualGrowth (%)

Bio-Energy 780 -410 9.6

Diagnosis Devices /Instrument 400 2290 4.7

Bio-Pharmaceutical 2,0001,080 9.2 17

Bio-Agriculture 150 0.780 9.4

Bio-Material 480 17320 6.0

Total 2,180 3,810 8.3 37

For example, wastewater treatment with special

electricity-producing microbial uel cells canpuriy water and generate electricity.

BASF Korea produces vitamin B2 through a

one-step ermentation process. The company

put ungus Ashbya Gossypii and vegetable oil

in ermentation equipment. As ungus grows in

the equipment, it produces vitamin B2. Com-

pared to the eight-step chemical process used in

the past, waste, CO2 emissions, and raw materi-

al costs incurred are reduced by 96 percent, 33

percent, and 64 percent, respectively. This re-

port aims at suggesting general ideas on direc-

tions o uture BT development by examining

various cases o BT applications.

|Table 2 BT Effectiveness in Reducing Air and Water Pollutants

Source: The Application o Biotechnology to Industrial Sustainability, Sustainable Development, 2001, OECD Publishing.

(Unit: %)

Cognis(Germany; cosmetics,healthcare, detergent)

Domtar(Canada; paper, pulp)

Cereol(Germany; food products)

Mitsubishi Rayon(Japan; chemicals,plastics, fiber)

Emission of waterpollutants

- 8850 60

Emission of airpollutants

-60 80 -


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KOH You-Sang

BT APPLICATIONS IN MAjORINdUSTRIES

BioethanolBioethanol or biouelis a clean energy that

could replace gasoline, produced by ermenting

grains like corn and sugar cane. Indeed, it can

be produced rom any biomass that containscarbohydrates. In the uture, non-grain sources

(e.g., weeds, waste woods, and marine microor-

ganisms) will become a more popular source or

bioethanol production as grain-made bioetha-

nol may cause a surge in grain prices and orest

destruction. For the longer-term uture, re-

searchers currently are working on developing a

third-generation bioethanol, which has marine

microorganisms as the source. In 2008, the size

o the bioethanol market was estimated at $41billion. For the mid- and long-terms, bioethanol

production will continue to grow as the use o

bioethanol is promoted by many governments.

At the moment, competition is heating up

around the world to develop a technology to

produce second-generation bioethanol rom

cellulosic materials. The United States and

Spain have already started to use next-genera-

tion bioethanol production in which ethanol is

made rom weeds and woods. However, insu-

fcient supplies o biomass or raw materials or

bioethanol production due to limited land

availability remain the biggest obstacle to wid-

er use o bioethanol. In 2050, there will be a to-

tal o 44 million hectares o additional land

potentially available or biomass cultivation,

out o which 80 percent will be in Arica and

South American countries.1 This shows a mis-

match between the unused land available or

biomass cultivation (supply) and the main con-sumers o biouel (demand) in the United

States, Europe, and Asia. Consequently, as an

alternative, using marine biomass or bioetha-

nol production looks more promising over the

long term. Korea, a country surrounded by

seawater on three sides, especially needs to de-

velop the still-nascent third-generation tech-

nology to produce bioethanol rom marine mi-

croorganisms.

BiochemicalUnlike petrochemical materials made rom

crude oil, biochemicals are produced rom or-

ganic matters such as plants and microorgan-

isms and are expected to replace existing petro-

chemical materials used to produce packaging,

ood containers, automobiles, electronic com-

ponents, etc. Considering that worldwide con-

sumption o chemical materials is about 250

million tons per year, the potential market or

biochemicals appears to be colossal.

Biochemicals attract considerable interest be-

|Table 3 Countries Promoting the Blend of Bioethanol with Gasoline

Source: Compiled by SERI.

Brazil (2025%), US (10%), Canada (10%), China (10%),

Colombia (10%), Peru (10%), South Arica (10%), Thailand (10%)

Paraguay (7%), India (5%), Switzerland (5%), Japan (3%)

Countries (% Blend of Bioethanol)

More than 10% bioethanol

Less than 10% bioethanol

1Richard Doornbosch and Ronald Steenblik, Biouels: Is the Cure Worse than the Disease? (paper presented at the OECD Round

Table on Sustainable Development) Paris, France, September 1112, 2007.


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cause they are environment-riendly. For exam-

ple, biochemicals degrade naturally by them-

selves ater 12 years as opposed to chemical

materials such as PVC, vinyl, and Styrooam,

which take several hundred years to degrade.

Another advantage o biochemicals is greatly

reduced energy consumption and greenhousegas emissions released during production pro-

cess. DuPonts Bio-PDO consumes 40 percent

less energy and emits 20 percent less greenhouse

gas to produce than petrochemical PDO. Addi-

tionally, it does not release harmul environ-

mental hormones such as dioxin, making it suit-

able or womens hygienic products, ood

containers, and childrens merchandise.

Along with growing interest in pollution andhealth, biochemical production is expected to

increase. Also, production o biochemicals,

which began to be commercialized in 2004,2 is

expected to reach 2.5 million tons in 2015, up

rom 400 thousand tons (about $1 billion) in

2004. A persistent shortcoming o bioplastics is

that they are weaker than chemical plastic in

terms o strength and heat resistance. But the

dierence has narrowed recently, and the use o

bioplastics has become more popular, especially

in the electronic and auto parts industries. Com-puter makers Sony and Fujitsu have released

laptop computers made with bioplastic exterior

cases; the mobile industrys Motorola and NTT

DoCoMo have used bioplastics in cell phone

casings; and automakers Toyota and Chrysler

are using bioplastics in car seats and tire rein-

orcement. Currently, the act that bioplastics

command a higher price than conventional plas-

tics is a major hurdle to urther expansion. But

market potential is high as technological devel-

|Table 4 Current Development of Major Biochemicals

Note: PLA (polylactic acid) 3-HP (3-hydroxypropionic acid), PHA (polyhydroxyalkanoates), PDO (propanediol)

Type Major Companies

PLA 2002 CornFood packaging, abrics,

beverage bottlesDuPont, Mitsui Chem, Toyota

Main UsesRaw Material

3-HP Cargill, CodexDiapers, eminine hygiene productsCorn2004

Bio-PDO DuPont, GenencorCar paint, carpet, cosmeticsCorn2006

Polyols CargillCar seats, urniture insulationVegetable oil2006

PHA ADM, MetabolixHousehold goods, plastic ilmCorn, vegetable oilPlanned in 2010

Year ofCommercialization

2Li Shen, Juliane Haue, and Martin K. Patel, Product Overview and Market Projection o Emerging Bio-based Plastics,PRO-BIP

2009, June 2009, Utrecht University, available at: .

The fact that bioplasticscommand a higher pricethan conventionalplastics is a major hurdleto further expansion.


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KOH You-Sang

opment and an increasing use o bioplastics willenhance their price competitiveness against con-

ventional plastics.

BiocosmeticsBiocosmetics contain natural and biocompati-

ble agents that enhance anti-aging and whiten-

ing eects o cosmetics. In addition to cosmetic

unctions to match traditional cosmetics, bio-

cosmetics have dermatological eects. For ex-

ample, they soothe skin breakouts and maintain

skin health. Thus, they are called cosmeceuti-

cals. Today, biocosmetics seek more enhanced

dermatological unctions such as moisturizing,

ultraviolet ray protection, anti-wrinkling, whit-

ening, acne prevention, hair re-growth and ra-

grance. Also, there are edible cosmetics called

nutricosmetics appearing, blurring the bound-

ary between ood and cosmetics. Cerebroside,

which is isolated rom the spleen o a patientwith Gauchers disease, is an exemplary edible

cosmetic, regarded as an eective treatment or

dermatologic disease such as atopic dermatitis.

Biocosmetics have developed due to technologi-

cal innovation in gene manipulation, advance-

ment in bio processes, and technological ad-

|Figure 2 Classifications of Biocosmetics by Function

Products

Retinol, botox (wrinkle removal),Ascorbic acid (whitening),

mushrooms (antioxidants), etc.

Cerebroside (moisturizing), hypericin(treatment o atopic dermatitis), hyaluronic

acid (skin elasticity), isofavone (skinprotection rom ultraviolet light), etc.

Vitamins, minerals, glucosamine,ginsengs, Coenzyme Q10, lactic acid

bacteria, ginkgo extracts, etc.

Category

Cosmeceuticals

Nutricosmetics

Nutraceuticals

Pharmaceuticals

Cosmeceuticals Nutraceuticals

Cosmetics NutritionNutricosmetics

vancements in identiying useul naturalresources. In the past, active components o cos-

metics were produced through chemical synthe-

sis, but now bioprocesses utilizing gene manipu-

lation technology are gaining ground. For

example, some cosmetic products use stem cell

culture solutions containing many antioxidants

and growth actors as ingredients. Also, there

are biocosmetic products being used or treat-

ments at dermatologist clinics or skin peeling

treatments.

BioprocessingAll organisms absorb and digest various metal

and mineral substances through their cells.

There are predictions that i this ability to treat

metal substances is utilized in manuacturing, it

will prompt an industrial revolution in the dis-

play and semiconductor industries over the long

term. Speciically, there is a technology that in-creases organic light-emitting diode (OLED)

brightness tenold by using DNA thin ilms.

Also, there are attempts to utilize viruses or en-

zymes or absorbing and moving metals and

semiconductors when manuacturing thin lms

and electrodes. Silicatein rom a marine sponge

has the ability to turn semiconductor materials


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such as silicon, zinc oxide, titanium dioxide, and

gallium oxide into nano-structured thin lms. I

this enzyme is used, thin ilms and electrodescan be made into any desired orm.

In the longer term, electronic and IT devices in-

corporated with organisms are expected to be

developed. Although it is still in the researching

stage, Brain Computers that can be controlled

just by thinking via the interace consisting o

neurons used with semiconductor chips is also

presented.3

3Peter Fromherz, Semiconductors with Brain in Eva-Maria Neher, ed., Aus den Elfenbeintrmen der Wissenschaft, 2nd XLAB Science

Festival(Gttingen: Wallenstein, 2006), pp. 4371.

BiosensorsElectronic Nose & Tongue (e-Nose & e-Tongue)

imitating human sensory unctions is the next-generation biosensor. It is designed to detect tiny

particles. The human nose has 370 kinds o re-

ceptors that conjugate odorant molecules. These

receptors discern hundreds o thousands o

smells by orming various combinations be-

tween odors and receptors. e-Nose & Tongue is

an array o sensors whose electric resistance or

colors change when odorant or taste-causing

molecules touch the sensors. The reactively

|Figure 3 Neuron Chip: Neuron Tissue on Semiconductor Chips

|Figure 4 Human Nose and Tongue vs. Electronic Nose and Tongue

Working Mechanism

ThoughtsNeuron tissue emits ions that

carry electric chargesElectricity is generated on

semiconductor chips belowSignals are sent tooperate devices

Silicon OxideSemiconductor

Rats Neural Tissue

Human

e-Nose & Tongue

Odor and taste sensors Analysis by sotwarePerception o odor

and taste inormation

Perceptiono appletaste andcoee odor

Odor and tastereceptors Analysis by brain


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KOH You-Sang

The United States, mindfulof the September 11terrorist attacks, is veryactive in supportingstudies of biosensors. In2007 alone, the UnitedStates invested $1.1 billionin related R&D projects.

ronment, checking or ood spoilage or place o

origin, detecting drug and toxic materials, and

monitoring actory gas emissions. It can be en-

cased in a portable device to leverage its

strengths such as its real-time analysis and con-

venience in measurement readings.

Biosensors, incorporated with more sensitiverecognition elements such as enzymes and mi-

croorganisms, can be utilized to prevent bioter-

rorism. Biosensors can detect and help neutral-

ize biological weapons and poisonous

substances and gases. The US company Nano-

gen has developed a laptop-size poison detector

NanoChip. MIT proessor Drew Endy suc-

ceeded in developing a sensor that, when detect-

ing the explosive substance trinitrotoluene

(TNT), emits fuorescent light by inserting fuo-rescent genes into the DNA o microbes that re-

act to TNT. Researchers at the University o

Caliornia at Berkeley also developed a toxic

substance sensor chip by combining electronics

with living cells. The cells serve as a gate that

stops the electricity current i it is alive and

opens the gate i the cell is dead because o ex-

posure to a toxin.

The United States, mindul o the September 11

terrorist attacks, is very active in supporting

studies o this area. In 2007 alone the United

States invested $1.1 billion in related R&D proj-

ects. The country has set up national institutes

committed to bioterrorism prevention at Boston

University and the University o Texas and is

planning to establish nine regional institutions.

BT TO REvOLUTIONIzE FUTUREINdUSTRIES ANd LIFESTyLE

As seen above, BT will serve as a key actor that

will determine industries competitiveness in

the uture. Fused with inormation technology,

green technology, and nanotechnology, BT can

changing sensors are analyzed by pattern analy-

sis sotware. I the test involves a liquid, it is

called e-Tongue; i it is gas, it is called an e-Nose.

Functions and operations o this e-Nose &

Tongue are an imitation o human sensory or-

gans.

The e-Nose & Tongue is dierent rom current

biosensors in that it can detect various substanc-

es simultaneously. Based on a one-to-one recog-

nition system, current biosensors need ten di-

erent sensors to detect ten dierent materials.The e-Nose & Tongue, however, analyzes pat-

terns o recognition signals by using a one-to-N

method, and it is possible to detect multiple sub-

stances simultaneously with one sensor. Based

on this unique characteristic, it can substitute

various sensors in the uture. It can be used

more widely in oods, medicine, and the envi-


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generate various new business opportunities.Ten years rom now, BT will have a routine role

in energy, environment, and chemical indus-

tries. In electronics and IT industries, it will be

used more requently. New business opportuni-

ties, such as a biocomputers that utilize DNA as

a memory device and a high-efciency catalyst

to orm a complex with nanoparticles, will be

more abundant i BT is used with inormation

technology and nanotechnology.

As BT is more widely applied to various indus-

tries, its eect and in luence on peoples lives

will become increasingly visible. Vertical arms

in cities, cars using over 50 percent bioplastics,

and packages that can detect poisons and

harmul substances in our daily lives are not

too ar o in the distant uture. BT has a signif-

cant meaning as it can be used as an alternative

solution to global-scale problems such as globalwarming, ood shortages, ecosystem destruc-

tion, and aging populations. The OECD started

the Bioeconomy to 2030 project in 2005,

which aimed to drat a broad policy agenda or

governments. The goal is to promote growth

and welare o the global economy by tackling

global issues through innovative BT.

|Figure 5 Prospective Applications of BT in Industries

Source: SERI estimates.Note: The level o BT application ten years later is based on an estimated number o BT products and kinds and the level o bioprocess,

as well as the R&D trend o advanced countries.

Pharmaceuticalindustry

Applicationto all areas

Spread of BTapplication tomajor industries

Introduction ofBT to leading

industries

R&D

Agriculturalindustry

Food industry Energy & environmentindustries

Chemicalindustry

Electronic &IT industries

Stages o BTapplication

Current level

Ten years later

Companies should continue to pursue processinnovation by using BT and search or new

business opportunities. Applying BT to existing

processes will help lower costs and oster envi-

ronment-riendly business management. Partic-

ularly, Korea, a country which is traditionally

strong in ermentation, enzymes, and microbial

methods can reap greater beneits with new

businesses in the BT industry.Translation: LEE Hae-Won

KOH Yo-Sng is a research fellow at SERI. His research fo-

cuses on bio and petrochemical industries, industry clustering,

and technology management. He holds an MBA from Korea

Advanced Institute of Science and Technology.

Contact: [email protected].

Keywords

Biotechnology, expanding applications, Koreas BT

industry, Koreas BT market, bioethanol, biochemical,

biocosmetics, bioprocessing, biosensors


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Expanding Applications and Uses of Biotech - SERI - Apr10