AgroTech Communications, Inc.

Bioeconomy refers to the use of biobased products in the manufacture of chemicals, fuels, plastics and many other industrial products. A biobased product is derived from renewable resources such as plants. The Federal Government has set the goal of tripling US use of bioenergy and biobased products by the year 2010. Meeting this goal will create $15 - $20 billion a year in new income for farmers and rural America and reduce annual greenhouse gas emissions. The number of biobased startups has gone from 200 companies in 2000 to over 600 companies in 2004, while at the same time numerous major corporations have increased their involvement in the development of biobased products.

Every day there is an increased awareness of the formation of the bioeconomy, an entirely new economic segment in the United States and around the world. Feature articles have appeared in Forbes, Wired, Business 2.0 and other publications touting the economic, environmental and national security benefits of utilizing renewable feedstocks for new and innovative consumer products. Many of the world's largest agribusiness and chemical companies are now predicting huge market share for biobased-derived chemicals, plastics and other "high-value" products.

With political, regulatory, environmental and now even strategic forces as drivers, the bioeconomy is poised to dramatically change the structure and finished goods of chemical companies, offer new distribution channels for forestry and agricultural products, provide potential value-added for waste stream products, and offer new investment opportunities in innovative areas. The technologies involved in producing biobased products will come together with other disciplines to create a new generation of products and even entirely new industries.

DuPont has publicly stated a goal to produce 25% of their products from renewable materials by the year 2010.

Cargill Dow LLC has invested almost $1 Billion US dollars in the development of biodegradable plastics and fibers, made from corn.

The US National Research Council predicts 50% of US fuels and 90% of US organic chemicals will come from renewable resources by the turn of the century.

Additionally the U.S. Energy Bill signed by President George Bush on August 8, 2005 established a Renewable Fuel Standard (RFS) which requires the use of 4 billion gallons of renewable fuels such as ethanol and biodiesel by 2006 increasing to 7.5 billion gallons by 2012. According to one analysis conducted by a reputable consulting firm, the establishment of this RFS will do the following to the U.S. economy.

Spark $6 billion (2005 dollars) of new investment to build 4.3 billion gallons of new ethanol capacity;

Add nearly $200 billion (2005 dollars) to GDP;

Generate an additional $43 billion (2005 dollars) of household income for all Americans;

Create more than 230,000 new jobs in all sectors of the economy; and
Displace over 2 billion barrels of crude oil.

The opportunity to develop technologies to make this possible are just one way in which the agricultural and chemical industries will play a unique and vital role in helping to change the landscape of this new bioeconomy.