As an example, EcoSphere® biolatex™ dispersions demonstrate significant cost savings in the paper industry where they are used in mills as part of the coating color formulation (an example of an “EcoSphere Inside” application). Depending on the formulation, EcoSphere can typically be substituted at a level of 35% to 100% of the synthetic latex. With a price point below synthetic latex, EcoSphere can generate hundreds of thousands of dollars in savings for the typical mill. While the first generation biolatex products are now being used commercially, EcoSynthetix has been actively pursuing the ongoing development of new biolatex product grades. Whereas SB and SA Latex are reaching the end of their product improvement life cycle, biolatex products represent a whole new and exciting technology “S” curve. With a passion for continuous research and development and continued performance improvements, EcoSynthetix has been focusing on the development of the next generation of biolatex products that will provide enhanced performance, enable higher substitution levels and open up new applications.

Cost analysis

The current price of oil has fluctuated wildly. The profitability level of petroleum-based latex binder means suppliers have to pass on their raw material cost increases. This provides additional impetus and urgency for paper makers to search for alternative binder technologies. The first generation of EcoSphere biolatex product provides the only viable means for paper makers to replace a significant portion of their petroleum-based binders without sacrificing paper performance.

Corn prices have recently increased. Relative to oil, these increases are less significant and have less impact on the cost of EcoSphere than changing oil prices have on the cost of synthetic latex. During this unprecedented period of market volatility, EcoSphere pricing remains a more stable and attractive value proposition.

As a result of its reliance on petrochemical-based inputs, the paper and paperboard manufacturing industry has significant exposure to fluctuations and uncertainty in oil and gas prices. The dominant products, SB Latex and SA Latex, are priced in direct relation to the price of oil and natural gas. As a result, their price fluctuation has created significant margin pressures for paper and paperboard manufacturers. The use of SB Latex and SA Latex shows little related change with price changes as paper and paperboard producers have until now had no acceptable substitutes resulting in a "must buy" scenario. EcoSphere biolatex product offers a long-term replacement solution that creates value for manufacturers and provides freedom from the fluctuating prices of oil.