The market
The global market for natural insulation could reach $1 billion by 2015. Based on data collected from individual companies and extrapolations from data from small businesses and multinationals operating globally, the current market can be estimated at between $500 million and $600 million. Since the Insulating Paint Case (Case 37) covered the insulation market, market information will focus solely on natural insulation. The use of renewable plant and animal sources to produce insulation is becoming increasingly popular as less energy is required for the extraction, production, and packaging of desired ingredients. The main renewable insulation product is soy-based polyurethane foam. The approximately 7 billion pounds of polyols, the basic material for producing polyurethane consumed in OECD countries, are expected to increasingly rely on natural oil-based polyols (NOPs). BAYER Material Science (Germany) and BioBased Technologies, a startup based in Arkansas (USA), have developed technologies to increase renewable content. This is crucial. Even when a product label indicates it is soy-based, it is rarely considered organic with the minimum percentage set by the US Department of Agriculture. BAYER's NOP (Nothing by Product) can contain 40 to 70 percent renewable materials, meaning the final product can contain only 10 to 15 percent bio-based materials and, consequently, barely qualifies for a biopreferred buffer. Even with such low bio-based content, the label doesn't amount to much. However, it has been calculated that replacing one ton of petroleum or mineral substances with bio-based substances can eliminate or prevent up to 5.5 tons of carbon dioxide equivalent from entering the atmosphere. These facts motivated Liebherr, the German appliance manufacturer, to use NOP insulating foam. Hyundai and Kia now incorporate NOP-based foam cushions in some models, as does Ford Motor Company for the seats of the Mustang. This would be considered an example of the green economy.
Innovation
Foams derived from renewable oils offer a popular solution. Traditional uses of insulation, such as straw bale boards, flax boards, wool, cellulose, and jute, are increasingly competing with fiberglass and mineral wool. Sheep are the most traditional, as these animals have been domesticated for 8,000 years. Wool is one of the traditional insulation materials for both the body and the home. Several wool-based insulation companies in the US and UK are experiencing double-digit growth rates, providing welcome additional income for an industry that has struggled to compete with synthetic substitutes. Straw bale buildings have also benefited from increasing demand. However, with the exception of recycled newspaper printing, which has not been de-inked, most of the renewable materials mentioned can hardly be considered sustainable, as their use as raw materials for insulation competes with other primary uses, including food production. While reducing our dependence on oil is a laudable goal, our long-term sustainability requires innovations that focus on materials that don't compete with each other, seeking readily available input streams without commercial use, and thus looking for value-added applications. This fosters a complementary economy, with value chains that generate value and jobs, rather than replacing products. Reidar Berglund, a building engineer specializing in heating, ventilation, and plumbing, began his career as an energy efficiency consultant. He designed energy-saving systems for industrial and domestic applications. He worked with sawdust as insulation, a traditional product that has stood the test of time. He studied options for developing a purely natural insulating material that is made from the same material and boasts the same level of sophistication as the cellulose-based absorbent down in diapers. He created a highly effective, fully recyclable, and natural insulation from the short fibers left over from paper mills. It took Reidar a decade to develop a competitive product that made the fibers more aerated through the fine distribution of tiny cellulose threads, combined with the accumulation of microscopic air bubbles both within the fibers and in the spaces between them. He then obtained all the necessary permits, including those for fire safety. Reidar was committed not only to designing a high-performance product, but he also developed a production process that requires no external inputs. In fact, Reidar succeeded in reconditioning the physical conditions and properties of cellulose to meet the strictest environmental and quality requirements. After establishing the product and process, he founded the company Termoträ (pronounced termotree) in 1989, developing his own direct sales and distribution system in close collaboration with a limited number of local, certified installation experts.
The first cash flow
Mr. Reidar was able to maintain his research and development investments thanks to the cash flow he generated from his energy consulting and engineering activities. He established a close collaboration with Anders Nyquist, the pioneering eco-cycle architect who is always seeking local solutions made from local materials. Termoträ applied the proven technology in the Nydala housing complex in Umeå and the now-famous Laggarberg school in Timrå. These buildings quickly demonstrated the effectiveness of the insulation material in one of the most quality-conscious regions: northern Sweden, a three- or four-hour train ride from Stockholm. Close monitoring of the material's performance in a family home concluded that energy savings of 15,000 kWh per year are achieved across the board. Furthermore, the installation does not require a vapor barrier or plastic sheeting to replace anything. The homemade product has impressed so much that even the Royal Palace in Stockholm is now insulated with this local, natural material. The market has grown, and the fully integrated production and distribution system, which uses waste materials previously destined for landfills or incineration, already provides high-quality insulation to 6,500 family homes. This competitive product starts with leftover materials, is physically repurposed, is fully refurbishable and recyclable, and rivals cheaper imported alternatives in a high-cost country in terms of performance and price, creating jobs and building social capital. It is also mold-free, thus contributing to indoor air quality and the health of the occupants. This aligns with the principles of the blue economy.
The opportunity
With the advent of prefabricated homes, the cellulose flakes supplied by Termoträ can also be injected into the building modules, thus increasing assembly efficiency. Older houses can be quickly renovated with a layer of insulation sprayed in the appropriate places in the walls or on the ceiling using a vacuum-like device with a 60-meter-long hose that can reach almost anywhere in the house. Reidar and his team don't advertise; they prefer word of mouth. The exceptional results led to the introduction of the technology in Germany, with an initial project in Borkwalde (Berlin), and soon after, numerous initiatives followed in Norway. Every community around a pulp and paper mill could launch a suitable production and distribution model after Reidar's breakthrough. He has already expressed his willingness to transfer his know-how to Bhutan and other countries rich in fibers and poor in insulation, which will only require entrepreneurs to turn it into a real business opportunity.
