Jun 5 2007 6:08AM | Permalink | Email this | Comments (0) |
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What price premium will you pay for bioplastics? In general, look for a premium of 20 to 30 percent above what you now pay for a comparable material. That’s an artificial figure, but it’s what OEMs think customers will pay for the environmental friendliness plus the enhanced properties some of these grades will have.I say artificial, because seemingly like all things that overcome our “energy” or “global warming” crisis (pick your decade) costs will be very high until there is economy of scale. And economy of scale for plastics is huge. American OEMs that have been leaders in this field, such as John Deere, have not pursued bio materials for economic reasons. They pursued them for political reasons. Deere, for example, wanted to support its farmer-customers, particularly in the soybean area, where grants were available.
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