The UK is at a turning point in its transition away from oil and gas, and bio-based chemicals and materials could play a major role. A new report from the Building Resilient UK Bio-Based Supply Chains event highlights the opportunities, challenges, and next steps for developing a robust bioeconomy.
Manufactured chemicals touch almost every part of our daily lives, from food and clothing to medicines and mobile phones, yet nearly all are still produced using fossil fuels, contributing around 10% of global greenhouse gas emissions. By harnessing renewable resources such as crops, algae, and organic waste, the UK has the chance to cut emissions, reduce imports, and grow new markets.
The potential is huge
Adopting just 15 high-potential bio-based chemicals could save over 5.2 million tonnes of CO₂ every year. By 2050, the sector could generate more than £200 billion annually for the UK economy while creating thousands of skilled jobs.
But the report also underlines the challenges. Supply chains remain fragmented, scale-up infrastructure is limited, and policy is inconsistent. Workshop participants identified regulatory uncertainty and a lack of investment as the biggest barriers to growth. A more joined-up approach across government, better mapping of biomass feedstocks, and clearer financial incentives are all needed to unlock progress.
Key opportunities include:
- Growing demand for sustainable alternatives in packaging, construction, textiles, and fuels
- Revitalising rural economies through local biomass processing
- Positioning the UK as a global leader in bio-based innovation
Next steps recommended by the report:
- Develop a national biomass utilisation hierarchy to prioritise resources
- Improve regulatory clarity for bio-based products
- Invest in open-access bioprocessing infrastructure
- Provide targeted funding and tax incentives for bio-based ventures
- Use government procurement to stimulate demand
- Support exports and international collaboration
The message is clear: a resilient UK bio-based supply chain isn’t just good for the environment, it’s essential for economic growth, energy security, and national resilience.
