Emirates Biotech, a biotechnology company in the UAE, is advancing the research and production of plant-based Embio PLA biopolymers in the Middle East and plans to build a large-scale production base in Abu Dhabi to support the development of a circular economy.
Recently, ChemAnalyst conducted an exclusive interview with the company's CEO, Marc Verbruggen, to explore the company's strategic direction amid evolving global and regional dynamics.
Q: Emirates Biotech's joining of the Circle consortium (a flagship project funded by the EU CBE JU, aimed at demonstrating the first industrial biorefinery converting organic food waste into high-value bio-based chemicals) is an important strategic move. Beyond technology acquisition, what competitive advantages does this collaboration bring? Additionally, in light of increasing regional tensions, how do you assure global partners of the stability of long-term investments?
Marc Verbruggen: If you are a PLA producer, the key raw material is lactic acid. When analyzing the cost structure of PLA production, lactic acid is the main factor. As a future PLA producer, it is crucial to keep up with global trends in lactic acid production.
This is precisely why we joined the consortium - to explore whether food waste can be efficiently converted into lactic acid. As for regional tensions, we cannot control them, but like everyone else, we hope the situation can be resolved within weeks or months.
Our strategy is long-term. We are planning development for the next 10 to 20 years and consider the current situation a short-term fluctuation. While we closely monitor developments, we still believe the market will soon return to stability.
Q: As a company headquartered in the Middle East participating in a Europe-led collaboration, how does this partnership enhance your competitive position?
Marc Verbruggen: PLA production is essentially a global business. Our competitors are located worldwide, so we must track technological advancements regardless of where they occur.
Whether innovations come from Europe, the United States, or elsewhere, they are relevant to us. Participating in such projects ensures we remain competitive and stay informed of the latest developments.
Q: In light of recent Iranian missile and drone attacks on UAE infrastructure, how is Emirates Biotech adjusting its risk management strategy for the Abu Dhabi plant construction?
Marc Verbruggen: This is a very real issue. Although we have procured long-lead equipment, construction has not yet started, and the plan was to begin in the next few months.
Given the current environment, due to logistical challenges and security considerations, construction is temporarily on hold. We are closely monitoring the situation and assessing contingency plans, including alternatives in worst-case scenarios.
Nonetheless, our primary expectation is that the situation will stabilize, allowing us to continue construction. Currently, the port is closed, equipment shipment is delayed, and there is no on-site construction activity. Although disruptive, we hope this is temporary.
Q: Samsung E&A contractors are responsible for the security of the Abu Dhabi plant. Given their global use of intelligent inspection robots and AI systems, have these technologies been deployed in KEZAD to address current threats?
Marc Verbruggen: Not yet. Samsung mainly completed the front-end engineering design (FEED) work for us. The final decision regarding the construction general contractor is still underway.
Q: Has the current conflict accelerated your process of sourcing raw materials locally?
Marc Verbruggen: Our plant is scheduled to start production in 2028 and currently does not rely on raw material supply. If we were operating today, supply disruptions caused by import restrictions would likely lead to a production halt.
The situation highlights the importance of developing local raw materials. Even if lactic acid is produced locally, it still requires ingredients such as corn and sugars, which are also dependent on global logistics.
Food waste has potential and can be sourced locally, but related technologies are still in the research and development stage. So far, economic and operational feasibility has not been verified at a large scale. The important thing is that the plant starting production in 2028 will use conventional raw materials. Production based on food waste is a longer-term plan.
Q: Conventional plastics are linked to oil prices. With oil price fluctuations, especially the sharp rise in maritime insurance costs in the Gulf region, how can PLA remain competitive?
Marc Verbruggen: Our business model is based on overall economic conditions, not short-term disruptions like wars.
Currently, due to import and export restrictions, the UAE plastics market is experiencing significant disruption. Although we have not yet commercialized PLA production, we are communicating with clients to mitigate short-term supply challenges.
The situation is still evolving, and it is too early to judge its long-term impact on pricing mechanisms.
Q: Which areas currently show the strongest demand for PLA?
Marc Verbruggen: PLA has a wide range of applications, from food service and packaging to 3D printing and automotive parts. This diversity is one of its key strengths. Producers must strategically decide which segments to prioritize. In the UAE, the annual plastic market output reaches millions of tons, while our planned capacity is 80,000 tons, about 2%. Globally, larger markets such as China, India, and Europe hold greater opportunities.
Q: Have you observed a shift in supply chain security, with customers more inclined to prioritize materials less affected by global logistics volatility?
Marc Verbruggen: This kind of strategic shift usually occurs after a crisis, not during it. Currently, companies focus on ensuring immediate supply rather than long-term strategy. However, once the situation stabilizes, the market may widely discuss reducing dependence on petroleum-based raw materials and volatile supply chains.
Q: How should the current war risk premium be incorporated into the long-term pricing strategy for the Embio product series?
Marc Verbruggen: Short-term oil price spikes will not significantly impact our long-term pricing strategy. What we focus on is the value proposition of PLA-its sustainability, low carbon footprint, and in some cases, superior performance. The key issue is how much customers are willing to pay for these advantages. Long-term pricing decisions are based on value creation, not temporary market fluctuations.
Q: Has the Abu Dhabi plant designed localized or off-grid energy solutions to address potential infrastructure disruption risks?
Marc Verbruggen: Our utilities mainly rely on local infrastructure, consistent with other regional plants. We will generate steam independently, but electricity, natural gas, wastewater treatment systems, and other utilities still depend on existing facilities. The biggest vulnerable point is logistics-that is, the transportation of raw materials and finished products.
Q: How important is the polymerization step? Does having this capability locally help reduce logistics risk?
Marc Verbruggen: PLA has not yet become a fully commoditized plastic. Unlike polyethylene or PET plants, PLA has no mature turnkey solutions. Building a PLA plant requires integrating various components and technologies, like solving a complex puzzle. Of course, completing the polymerization step locally contributes to the development of the PLA market, but it is far from the only critical factor.
Q: Under current supply chain disruptions, is the waste-to-plastics model realistically feasible?
Marc Verbruggen: Not at the moment. The core challenge is technological maturity. The process has yet to be validated at scale in terms of economic viability, stability, and sustainability. It is still in the R&D stage and is not an immediately implementable solution. Commercial feasibility may be realized within the next five years.
Q: How do you stay ahead through R&D and innovation?
Marc Verbruggen: Our current focus is on building plants using existing state-of-the-art technologies. At the same time, we are investing in next-generation PLA R&D. We expect to announce a major expansion of our R&D capabilities within the next 30–45 days.
Q: Are there any upcoming collaborations in automation or digital technologies?
Marc Verbruggen: There is no public information at the moment. But we are actively tracking progress in process innovation, application expansion, and product upgrades, preparing to advance collaborations at the appropriate time.
Q: Is sustainable plastic about to become mainstream?
Marc Verbruggen: Global annual plastic production is about 200–300 million tons, while PLA is only about 500–600 thousand tons. We expect PLA to grow significantly to a scale of several million tons, but it will still represent only a small portion of total plastic consumption. Nevertheless, it will transform from a niche product into a viable alternative across multiple sectors.
Q: Does the current crisis delay or accelerate the transition to circular materials?
Marc Verbruggen: It depends on the duration of the crisis. Short-term disruptions have minimal impact in the long run. If the crisis persists over a long period, it may increase market interest in alternatives to petroleum-based plastics. But regardless of geopolitical events, sustainability challenges like recycling and microplastics remain core global issues.
Question: Do you think the UAE will become a more autonomous circular industry hub after the conflict, or is the 2030 green agenda at risk?
Marc Verbruggen: I cannot speak on behalf of the UAE government, but based on my experience in the region, I believe the UAE remains firmly committed to sustainable development goals. The current slowdown is only temporary. Once the conflict is resolved, I expect investment to restart and even drive the UAE to become a global sustainability hub more strongly.
Question: How do you think Emirates Biotech will develop in five years?
Marc Verbruggen: Our goal is to operate at least one, possibly two PLA factories. Beyond the GCC region, we will explore global expansion opportunities, focusing especially on parts of Southeast Asia and Africa where there is currently no PLA production.
