rodney townsend presentation on eu bioeconomy

Helsinki Chemicals Forum 2011Helsinki Chemicals Forum 2011

Session on Session on ““Bioeconomy Bioeconomy –– Creating Creating Global and Local OpportunityGlobal and Local Opportunity””

Opening Comments by Rodney Townsend Opening Comments by Rodney Townsend

Director Strategic Projects Royal Society of Chemistry UK Director Strategic Projects Royal Society of Chemistry UK Chairman 2008Chairman 2008--2010 of ETP on Sustainable Chemistry (SusChem)2010 of ETP on Sustainable Chemistry (SusChem)

•• Why a bioeconomy?Why a bioeconomy?

•• What is a bioeconomy?What is a bioeconomy?

•• How do we build a bioeconomy?How do we build a bioeconomy?

•• Some challenges and issuesSome challenges and issues……

Bioeconomy Bioeconomy –– Creating Global and Creating Global and Local OpportunityLocal Opportunity

Why a bioeconomy?Why a bioeconomy?

Environmental stressEnvironmental stress

Climate changeClimate change

Mounting wasteMounting waste

Scarcity of quality waterScarcity of quality water

Difficulty to extract oil and coal resourcesDifficulty to extract oil and coal resources

Diminishing metal/material resourcesDiminishing metal/material resources

Mounting waste Mounting waste –– huge inefficiencies in huge inefficiencies in current manufacture and consumptioncurrent manufacture and consumption……

93% of production materials 93% of production materials do not end up in saleable do not end up in saleable productsproducts

80% of products are discarded 80% of products are discarded after a single useafter a single use

99% of materials used in the 99% of materials used in the production of, or contained production of, or contained within goods, are discarded in within goods, are discarded in the first six weeksthe first six weeks

Trends in peak oil reservesTrends in peak oil reserves……. .

This matter has recently This matter has recently been highlighted by the been highlighted by the European Commission European Commission as a key strategic issueas a key strategic issue……..

Increasing shortages of strategic Increasing shortages of strategic resourcesresources…………

The concentration in this report is on The concentration in this report is on elements and mineralselements and minerals……

……but the issue is about more than this but the issue is about more than this –– it is also about new raw it is also about new raw material resources material resources notnot drawn from fossil fuels. In other words, drawn from fossil fuels. In other words, biobio--basedbased feedstocksfeedstocks, coupled with process intensification, waste , coupled with process intensification, waste management and recycling using a management and recycling using a ““cradle to cradlecradle to cradle”” approachapproach……

This issue was addressed This issue was addressed in the recently publishedin the recently publishedRSC Road Map (2009) RSC Road Map (2009) --

Three key issuesThree key issues

The issue of raw materialsThe issue of raw materialsis also addressed in more is also addressed in more detail in another recent detail in another recent report from report from derder GesellschaftGesellschaftDeutscher ChemikerDeutscher Chemiker(published 2010) (published 2010) --

……but the issue is about more than this but the issue is about more than this –– it is also about new raw it is also about new raw material resources material resources notnot drawn from fossil fuels. In other words, drawn from fossil fuels. In other words, biobio--basedbased feedstocksfeedstocks, coupled with process intensification, waste , coupled with process intensification, waste management and recycling using a management and recycling using a ““cradle to cradlecradle to cradle”” approachapproach……

……developing a developing a bioeconomybioeconomydoes NOT involve a rejection of does NOT involve a rejection of new chemistry new chemistry perper se, but se, but scientists and engineers of scientists and engineers of many disciplines are neededmany disciplines are neededtogether to provide the together to provide the innovation we need for a truly innovation we need for a truly sustainable and competitivesustainable and competitivefuture which is built on a future which is built on a BIOECONOMYBIOECONOMY……....

[From: “Connecting Biomass and Petroleum Processing with a Chemical Bridge”, J J Bozell, Science vol.329, 522 (2010)]]

……and a key message is found there (one with which and a key message is found there (one with which we would fully agree)we would fully agree)……

New wine in old bottles!New wine in old bottles!

……but the message goes further still, involving expertise but the message goes further still, involving expertise from from ““across the boardacross the board”” and down the value chainsand down the value chains……..

[“Critical raw materials for the EU.. Report pf the Ad-hoc Working Group on defining critical raw materials for the EU, 2010]

Key also are analyses Key also are analyses of supply and value of supply and value chainschains……with newly with newly developed, universallydeveloped, universallyaccepted LCA tools to accepted LCA tools to define sustainability anddefine sustainability andinform new regulatory inform new regulatory laws as well as laws as well as ““GreenGreenPublic ProcurementPublic Procurement”…”…..

T h e V a l u e C h a i n (s)T h e V a l u e C h a i n (s)

Downstream Industries• Automotive• Transport• Construction• Furniture• Consumer Goods (P&G)

Downstream Industries• Automotive• Transport• Construction• Furniture• Consumer Goods (P&G)

Customer Side of the Value ChainCustomer Side of the Value ChainProcessing IndustriesProcessing Industries

• Biotech• Pulp and Paper• Food ?• Mining ?

• Biotech• Pulp and Paper• Food ?• Mining ?

End-Customers• Pharma• Crop Protection• Consumer Goods

End-Customers• Pharma• Crop Protection• Consumer Goods

• Quality of Life• Clean

Environment• Low Carbon

Society• Economic

Prosperity

• Quality of Life• Clean

Environment• Low Carbon

Society• Economic

Prosperity

Societal NeedsSocietal Needs

Raw

Mat

eria

l Sup

plie

r Ind

ustri

es……and analyses should extend over WHOLE (global) value chainsand analyses should extend over WHOLE (global) value chains……

……including a including a ““cradle to cradlecradle to cradle”” approach to RECYCLING.approach to RECYCLING.

•• Why a bioeconomy?Why a bioeconomy?

Because there is no realistic alternative!Because there is no realistic alternative!


It is a low carbon, knowledgeIt is a low carbon, knowledge--based economy based economy that includes a major use of sustainable biothat includes a major use of sustainable bio--based products, and a future society that is no based products, and a future society that is no longer wholly or primarily dependent on fossil longer wholly or primarily dependent on fossil fuels for its energy and industrial raw material fuels for its energy and industrial raw material needsneeds……..

(based on UK IB(based on UK IB--IGT Scoping Statement, February 2008)IGT Scoping Statement, February 2008)

A bioeconomy A bioeconomy –– what is it?what is it?

HEALTHYHEALTHYLIVINGLIVING

HEDONICS &HEDONICS &LIFELIFE--STYLESTYLE

SUSTAINABLESUSTAINABLEECONOMYECONOMY

What are the What are the COMMON biotechnologiesCOMMON biotechnologies

that we ALL should develop that we ALL should develop TOGETHER to meet these TOGETHER to meet these

aspirations? (aspirations? (i.e., i.e., NOTNOTjust the scientists!)just the scientists!)

HEALTHY LIVINGHEALTHY LIVING

““HEDONICSHEDONICS”” &&LIFELIFE--STYLESTYLE

SUSTAINABLESUSTAINABLEECONOMYECONOMY

NonNon--food crop productsfood crop products(GM & wild(GM & wild--type selection)type selection)

Food crop productsFood crop products(GM & wild(GM & wild--type selection)type selection)

Epigenetic Epigenetic and gene and gene

technologiestechnologies

““Purple Purple BiotechnologyBiotechnology””

BioprocessingBioprocessing &&biomanufacturingbiomanufacturing

technologiestechnologies

Next generationNext generationICTICT

Artificial photosynthesisArtificial photosynthesis& energy from biomass& energy from biomass

PersonalPersonalproductsproducts

““Yellow Yellow BiotechnologyBiotechnology””

““Red Red BiotechnologyBiotechnology””

““Green Green BiotechnologyBiotechnology””

AntiAnti--ageingageingtechnologiestechnologies

BiofuelsBiofuels

BiorefineriesBiorefineriesRobotics &Robotics &domoticsdomotics

AquacultureAquaculturemanagementmanagement

NutraceuticalsNutraceuticals

Drugs &Drugs &antibioticsantibiotics

AntiAnti--cancercancertechnologiestechnologies

AntibodyAntibodytechnologiestechnologies

AnticrimeAnticrimetechnologiestechnologies

Green product Green product design and design and

manufacture manufacture

NonNon--animal animal testing protocols testing protocols

““White White BiotechnologyBiotechnology””

New measurementNew measurementtechnologiestechnologies

MarineMarinebiotechnologybiotechnology

““Blue Blue BiotechnologyBiotechnology””

CREATING A BIOECONOMYCREATING A BIOECONOMY

LandLandmanagementmanagement

NaturalNaturalproductsproducts

Novel forensicNovel forensictechnologiestechnologies

So firstly, what biotechnologies do we So firstly, what biotechnologies do we need in order to build the bioeconomy?need in order to build the bioeconomy?

Products, processes and materials from novel biological Products, processes and materials from novel biological sources, reducing dependency on petrochemicals and sources, reducing dependency on petrochemicals and

helping the EU to become a low carbon economyhelping the EU to become a low carbon economy

Areas of focus:Areas of focus:Industrial biotechnology for the design, feedstock derivation anIndustrial biotechnology for the design, feedstock derivation and processing of d processing of raw materialsraw materialsIndustrial biotechnology for onward processing and manufacture oIndustrial biotechnology for onward processing and manufacture of novel f novel sustainable productssustainable productsReRe--use and recycling at all stages in manufacture, use and disposaluse and recycling at all stages in manufacture, use and disposal

Blue BiotechnologyBlue Biotechnology

Discovery & use of Discovery & use of novel genes, novel genes,

processes and processes and materials in freshwater materials in freshwater and marine organismsand marine organisms

White BiotechnologyWhite Biotechnology

Use of microUse of micro--organisms, organisms,

biochemistry, biochemistry, biocatalysts, biocatalysts,

engineering and engineering and fermentation fermentation

Green & Yellow Green & Yellow BiotechnologiesBiotechnologies

Discovery & use of Discovery & use of novel genes, novel genes,

molecules, processes molecules, processes and materials in land and materials in land plants, agricultural plants, agricultural crops and forestrycrops and forestry

Red BiotechnologyRed Biotechnology

Discovery and use Discovery and use of novel drugs, of novel drugs,

vaccines, clinical vaccines, clinical technologies and technologies and

stem cell stem cell applicationsapplications

BioBio--based Productsbased ProductsDefinition: NonDefinition: Non--food products derived from biomass (plants, algae, crops, food products derived from biomass (plants, algae, crops, trees, marine organisms and biological waste from households, antrees, marine organisms and biological waste from households, animals and imals and food production). Biofood production). Bio--based products may range from highbased products may range from high--value added fine value added fine chemicals such as pharmaceuticals, cosmetics, food additives, etchemicals such as pharmaceuticals, cosmetics, food additives, etc., to high c., to high volume materials such as general biovolume materials such as general bio--polymers or chemical feed stocks.polymers or chemical feed stocks.

oo 7% of global sales $ 77 billion in value within the chemical sec7% of global sales $ 77 billion in value within the chemical sector tor oo EU industry accounting for ~ 30% of this valueEU industry accounting for ~ 30% of this value

IMPORTANCEIMPORTANCE

2005 2010 2020

Volume of the newbio-based productmarkets

$77 billion (global)$23b (EU)

$125billion (global)

$250 billion(global)

Jobs dependent onnew products

120.000 190.000 380.000

Accelerating the Development of the Market for Bio-based Products in Europe REPORT OF THE TASKFORCE ON BIO-BASED PRODUCTS Composed in preparation of the Communication “A Lead Market Initiative for Europe” {COM(2007) 860 final}

Market opportunities for bioMarket opportunities for bio--based based productsproducts…………

Huge market opportunities for bioHuge market opportunities for bio--based chemicalsbased chemicalsTotal value of chemical market in 2003Total value of chemical market in 2003

~ USD 1.24 trillion (approx. ~ USD 1.24 trillion (approx. ££12b in the UK)12b in the UK)

Most chemicals are still produced from oil and gas todayMost chemicals are still produced from oil and gas today

EU is still (just about!) the worldEU is still (just about!) the world’’s leading producer of chemicalss leading producer of chemicals

* Excluding pharmaceutical and consumer productsSOURCE: Value Creation, Ed. Budde, Felcht, Frankemölle, 2006.

The global drivers and challenges for The global drivers and challenges for developing the bioeconomydeveloping the bioeconomy……..

BUSINESS DRIVERSBUSINESS DRIVERSGrowth in demandGrowth in demand

Switching from hydrocarbon to carbohydrate Switching from hydrocarbon to carbohydrate feed stocks for making chemicalsfeed stocks for making chemicals20052005-- $77 billion (global), 23 billion (EU)$77 billion (global), 23 billion (EU)20202020-- $250 billion (global)$250 billion (global)One third of chemicals and materials will be One third of chemicals and materials will be produced from biological sources by 2030produced from biological sources by 2030Demand for Demand for ‘‘greengreen’’ productsproducts

Cost BenefitsCost BenefitsCost of petroleum feed stocks will eventually exceed Cost of petroleum feed stocks will eventually exceed the cost of biomass in futurethe cost of biomass in future

Indu

stry

mat

urity

Time

Characteristics for biorefineries

New technology / no track recordCompete on price and performance - not sustainabilityNew technology with new plantSound supply chain strategies utilising existing infrastructure

Biorefinery industry

Characteristics forfossil based fuels / chemistry

Economics of scale due to large installations / high throughputHighly optimized processesWell established supply chainsHigh production reliability

Foundation Development Expansion Diversification Maturity

Fossil based chemical industry

However, many great challenges remain in order to However, many great challenges remain in order to realize the full opportunities implicit in a bioeconomyrealize the full opportunities implicit in a bioeconomy……

How do we build a bioeconomy?How do we build a bioeconomy?



EU imperativesEU imperatives

FP7 and FP8 research and FP7 and FP8 research and innovation funding and innovation funding and European Innovation European Innovation Projects (Projects (EIPsEIPs))

Developing generic tools for the development of the Developing generic tools for the development of the bioeconomy and an example (Project BIOCHEM)bioeconomy and an example (Project BIOCHEM)

Developing new capabilities and skills in biotechnology at Developing new capabilities and skills in biotechnology at EU and national levelsEU and national levels

Informed education of the general public at all levels! Informed education of the general public at all levels!

Just a few examplesJust a few examples……....Climate ChangeClimate Change

EU target of greenhouse gases reduction by 2020EU target of greenhouse gases reduction by 2020

Security in energy supplySecurity in energy supplyReducing dependency on fossil fuelsReducing dependency on fossil fuelsBiofuelsBiofuels??

Creation of new jobsCreation of new jobs20052005-- 120,000120,00020202020-- 380,000380,000

New regulatory and other measuresNew regulatory and other measuresDevelopment of policy on transgenic technologiesDevelopment of policy on transgenic technologiesInformed green public procurement policyInformed green public procurement policyPostPost--REACH legislation?REACH legislation?

BiofuelsBiofuels

CleanCleanCoalCoal

NuclearNuclearFissionFission

Is the solution just an accelerated evolution from fossil Is the solution just an accelerated evolution from fossil fuel dependency to an economy based primarily on fuel dependency to an economy based primarily on biobio--fuels?fuels?

Fossil Fossil FuelsFuels

Almost certainly Almost certainly NOTNOT, because of the pressures to also , because of the pressures to also increase food production enormously from now to 2050increase food production enormously from now to 2050……..

The same potential conflict applies to making materials The same potential conflict applies to making materials from biofrom bio--derived sources......for examplederived sources......for example……• Genencor, a Division of Danisco, has developed technology Genencor, a Division of Danisco, has developed technology

for manufacturing isoprene from for manufacturing isoprene from sugar cane, corn, corn cobs, sugar cane, corn, corn cobs, switchgrassswitchgrass or other biomass, involvingor other biomass, involving

Microbial strain developmentMicrobial strain developmentLarge scale fermentationLarge scale fermentationRecovery and purificationRecovery and purification

•• The vision is that all Goodyear tyres will be manufactured The vision is that all Goodyear tyres will be manufactured from this biofrom this bio--isopreneisoprene

•• Manufacturing a conventional tyre requires seven gallons Manufacturing a conventional tyre requires seven gallons of petroleum feedstock per tyre.of petroleum feedstock per tyre. Using bioUsing bio--isoprene would isoprene would reduce that down to then close to zero reduce that down to then close to zero –– but the preferred but the preferred source could well be (waste) biomass in the long termsource could well be (waste) biomass in the long term

In other cases the potential conflict between using In other cases the potential conflict between using biobio--sources for food and nonsources for food and non--food purposes is even food purposes is even strongerstronger……..

……..together with unintended adverse consequences ..together with unintended adverse consequences on ecoon eco--systems elsewhere in the worldsystems elsewhere in the world……..

Just a few examplesJust a few examples……....Climate ChangeClimate Change

EU target of greenhouse gases reduction by 2020EU target of greenhouse gases reduction by 2020

Security in energy supplySecurity in energy supplyReducing dependency on fossil fuelsReducing dependency on fossil fuelsBiofuelsBiofuels??

Creation of new jobsCreation of new jobs20052005-- 120,000120,00020202020-- 380,000380,000

New New INFORMEDINFORMED regulatory measuresregulatory measuresDevelopment of policy on transgenic technologiesDevelopment of policy on transgenic technologiesInformed green public procurement policyInformed green public procurement policyPostPost--REACH legislation?REACH legislation?

Descriptions such as Descriptions such as ““naturalnatural””, , ““naturenaturederivedderived””, , ““renewablerenewable””do do NOTNOT automatically automatically equate to the word equate to the word ““sustainablesustainable”” (the(thelabelling issue)labelling issue)

We also need to consider: We also need to consider: social issues, economics, social issues, economics,

scale, energy intensity, scale, energy intensity, competing landcompeting land--use, use,

global global vs. vs. national national issuesissues……..

As we move from a fossilAs we move from a fossil--fuelfuel--based economy to the based economy to the bioeconomy, we need to remember thatbioeconomy, we need to remember that……....

What is What is ““greengreen””??

SOCIETALSOCIETAL

ECOLOGICALECOLOGICAL ECONOMICALECONOMICAL

SUSTAINABLESUSTAINABLE

BearableBearable EquitableEquitable

ViableViable

A view of sustainabilityA view of sustainability……

??



FP7 and FP8 research FP7 and FP8 research innovation funding and innovation funding and European Innovation European Innovation Projects (Projects (EIPsEIPs))




An EU view of research in Europe compared to the USA (3An EU view of research in Europe compared to the USA (3--4 years ago)4 years ago)……....

??

??

(After (After JanezJanez PotocnikPotocnik, then Commissioner for Research) , then Commissioner for Research)

The four The four ““societalsocietaldriversdrivers”” ……..

-- Climate ChangeClimate Change-- Energy & FoodEnergy & FoodSecuritySecurity

-- HealthHealth-- Ageing PopulationAgeing Population

We need to ensure that as FP7 is succeeded by FP8 in 2014, We need to ensure that as FP7 is succeeded by FP8 in 2014, that the recognition by the EC of the importance of investing that the recognition by the EC of the importance of investing in biotechnology to create a European in biotechnology to create a European bioeconomybioeconomy (already (already wellwell--recognised) stays at the core of Commission thinkingrecognised) stays at the core of Commission thinking……. .

The The bioeconomybioeconomy is needed for ALL of these!is needed for ALL of these!

EUROPE 2020 EUROPE 2020 –– three objectives:three objectives:““smart growthsmart growth””: developing an economy based on knowledge and : developing an economy based on knowledge and innovationinnovation““sustainable growthsustainable growth””: promoting a more resource efficient, greener : promoting a more resource efficient, greener and more competitive economyand more competitive economy““inclusive growthinclusive growth””: fostering a high: fostering a high--employment economy employment economy delivering social and territorial cohesiondelivering social and territorial cohesion

Seven flagship initiatives to catalyse progress:Seven flagship initiatives to catalyse progress:““Innovation UnionInnovation Union””““Youth on the moveYouth on the move””““A digital agenda for EuropeA digital agenda for Europe””““Resource efficient EuropeResource efficient Europe””““An industrial policy for the globalisation eraAn industrial policy for the globalisation era””““An agenda for new skills and jobsAn agenda for new skills and jobs””““European platform against povertyEuropean platform against poverty””

An increasing focus on the soAn increasing focus on the so--called called ““ii--conomyconomy”…”…. .

……and the and the bioeconomybioeconomy is now is now established as a established as a key componentkey component of the of the

Innovation UnionInnovation Union……

““European Innovation PartnershipsEuropean Innovation Partnerships””

Why? A profound change has occurred in FP thinking:Why? A profound change has occurred in FP thinking:

(After (After WaldemarWaldemar KuttKutt, Member of Cabinet of , Member of Cabinet of MaireMaire GeogheganGeoghegan--Quinn) Quinn)

Criteria for supporting an EIPCriteria for supporting an EIP…………

•• Significant contribution to societal challengeSignificant contribution to societal challenge•• Impacts on competitiveness, growth, employmentImpacts on competitiveness, growth, employment•• Reductions in time to marketReductions in time to market•• Clear EU added valueClear EU added value•• Strong interest from member states, industry and Strong interest from member states, industry and

other stakeholdersother stakeholders•• Concrete compelling targetsConcrete compelling targets•• Commitment from member statesCommitment from member states•• Strong engagement from private sector/industryStrong engagement from private sector/industry•• Increasing simplification, reducing overlapIncreasing simplification, reducing overlap•• Realistic building blocks, clear milestones and targetsRealistic building blocks, clear milestones and targets

The good news: bioThe good news: bio--based products were already based products were already identified as a Lead Market Initiative (LMI) in 2007identified as a Lead Market Initiative (LMI) in 2007…………

..and a key Public Private Innovation Partnership..and a key Public Private Innovation PartnershipIs now scheduled in for future fundingIs now scheduled in for future funding……

(Recommendations of LMI Ad Hoc Advisory Group on Bio(Recommendations of LMI Ad Hoc Advisory Group on Bio--based Economy)based Economy)

Already achieved under the LMIAlready achieved under the LMI……


•• The mapping of The mapping of biorefineriesbiorefineries and related support and related support policies in the EUpolicies in the EU

•• The joint call for The joint call for biorefinerybiorefinery research under FP7 inresearch under FP7 in20082008--20092009

•• The FP7 2010/2011 call for Knowledge Based BioThe FP7 2010/2011 call for Knowledge Based Bio--Engineering [KBBE]Engineering [KBBE]

•• The Coordination and Support Action [CSA] StarThe Coordination and Support Action [CSA] Star--COLIBRICOLIBRI

•• The large FP7 projects BIOCORE, EUROPABIOREF,The large FP7 projects BIOCORE, EUROPABIOREF,SUPRABIO and BIOCHEMSUPRABIO and BIOCHEM

Some future potential bottlenecks and Some future potential bottlenecks and challenges identifiedchallenges identified……


•• Raw materials for the chemical industry must be availableRaw materials for the chemical industry must be availablein good quality, with stable, secure supply guaranteedin good quality, with stable, secure supply guaranteed

•• Smooth integration of new Smooth integration of new biorefineriesbiorefineries into existinginto existingindustrial infrastructure where possibleindustrial infrastructure where possible

•• New pilot and demoNew pilot and demo-- plants required for feasibility studiesplants required for feasibility studies•• Future KBBE support (as part of the new PPP?)Future KBBE support (as part of the new PPP?)•• Better transport infrastructure for the transport of Better transport infrastructure for the transport of

renewable renewable feedstocksfeedstocks•• Rationalisation and simplification of European patentingRationalisation and simplification of European patenting

procedures and cost reduction (discussions underway)procedures and cost reduction (discussions underway)•• Market and initiative fragmentation (EU/national/regional)Market and initiative fragmentation (EU/national/regional)

Some member state initiativesSome member state initiatives……

(From presentation by (From presentation by MaiveMaive RuteRute, Director Biotechnologies, Agriculture , Director Biotechnologies, Agriculture and Food, DG Research, Edinburgh 17and Food, DG Research, Edinburgh 17--1212--10 )10 )

•• BelgiumBelgium -- ““Recommendations on Industrial Biotechnology (2006)Recommendations on Industrial Biotechnology (2006)

•• DenmarkDenmark -- ““Agreement on Green GrowthAgreement on Green Growth”” (2009)(2009)

•• FinlandFinland -- ““Using Natural Resources IntelligentlyUsing Natural Resources Intelligently”” (2009) (2009)

•• IrelandIreland -- ““Developing the Green Economy in IrelandDeveloping the Green Economy in Ireland”” (2009)(2009)

•• UKUK -- ““Analysis of the UK Capabilities in Industrial Biotechnology inAnalysis of the UK Capabilities in Industrial Biotechnology inRelation to the Rest of the WorldRelation to the Rest of the World”” (2009)(2009)

•• GermanyGermany -- ““Innovation Innovation BioeconomyBioeconomy”” (2010)(2010)

•• NetherlandsNetherlands -- ““BioBio--based Economy 2010based Economy 2010--20152015”” (2010)(2010)

Aims to support Aims to support SMEsSMEs to innovate in the Bio Based Products to innovate in the Bio Based Products market, for examplemarket, for exampleoo BioBio--based plastics, biobased plastics, bio--surfactants, biosurfactants, bio--lubricantslubricantsoo Excludes food, bioExcludes food, bio--fuels, biofuels, bio--mass as an energy source, pulp, paper and wood productsmass as an energy source, pulp, paper and wood products

Funded under DG Enterprise programme, Europe INNOVAFunded under DG Enterprise programme, Europe INNOVAActively supported by the SusChem ETP Actively supported by the SusChem ETP 11stst February 2010 February 2010 –– 31 January 201331 January 201317 partners including17 partners includingoo National and Regional Innovation AgenciesNational and Regional Innovation Agenciesoo Developers of material, tools and processesDevelopers of material, tools and processesoo CoCo--ordinated by Chemistry Innovation Ltd, UK (Dr Steve Fletcher)ordinated by Chemistry Innovation Ltd, UK (Dr Steve Fletcher)

Innovation depends on companies Innovation depends on companies –– BIOCHEM aims to help BIOCHEM aims to help create the right tools, processes, information and support for create the right tools, processes, information and support for SMESME--driven innovation to happendriven innovation to happen

BIOCHEM BIOCHEM –– a Europe INNOVA Projecta Europe INNOVA Project

BioBio--based product market based product market –– huge growth potentialhuge growth potentialOne of EuropeOne of Europe’’s s ““Lead MarketsLead Markets””Many societal driversMany societal driversoo Climate change, energy security, employment, environmental Climate change, energy security, employment, environmental

protection ...protection ...And business driversAnd business driversoo Growth in demand, cost, sustainability, green consumer demand Growth in demand, cost, sustainability, green consumer demand

........But also many barriers to innovation in bioBut also many barriers to innovation in bio--based productsbased productsoo Lack of awareness of IB throughout the chemical and downstream Lack of awareness of IB throughout the chemical and downstream

sectorssectorsoo Lack of confidence to enter a new business with new supply chainLack of confidence to enter a new business with new supply chainssoo Companies not well connected to each other, to the technology Companies not well connected to each other, to the technology

base or to their potential supply chainsbase or to their potential supply chainsoo Limited access to specialist demonstration and other facilitiesLimited access to specialist demonstration and other facilitiesoo Limited access to specific market expertise and access to Limited access to specific market expertise and access to

investment capitalinvestment capitaloo Concern about public perceptionConcern about public perception

BIOCHEM BIOCHEM –– backgroundbackground……..

Partner Member State

Type Main Role SusChem UK / Chemistry

Innovation United

Kingdom Innovation Management Agency Co-ordinator + bio-based market assessment and innovation development tools,

development of integrated service package

Cefic Belgium European chemical sector organization (SUSCHEM ETP) Evaluation of BIOCHEM toolbox, accelerator and Exit Strategy + Dissemination

E-unlimited Belgium Expert Consultants Access to Private Finance European Bio-Based Business Generator (Business Plan competitions and VC events

PNO Consultants The Netherlands

Expert Consultants Innovation and access to Public Finance Innovation and public funding; Brokerage activities;

Sviluppo Chimica Italy Sector innovation expert Italian Federation Chemical Industry Mentoring Support for implementing SME development plans

Brabo Ventures Belgium Expert Consultant Business Planning and G2G Toolbox

Tailor Access to Finance Tools (G2G) ,develop new coordination mechanisms for regional/national bio-based Investment Funds

SusChem Belgium / Essenscia Belgium National Chemical Sector organisation Select bio-based SMEs, biochem market assessment

University of Manchester UK Expert on LCA Establish knowledge Base on LCA and Links to Available Tools CPI - Center for Process

Innovation UK Coordinator European EEN Chemistry Cluster and test repository

SME Audits, develop Individual Development Plans, Coordinate access to test facilitieservice

SusChem Deutschland / Dechema Germany National Chemistry Sector Organisation

And owner German partnering database European On-line Partnering and Open Innovation System, select bio-based SMEs in

Germany

Poyry Finland International expert consultant in

environmental and biotech technologies for chemistry

Market Assessment and Needs Assessment, support to chemical sector organizationsfor auditing and mentoring

Dutch Organisation for Scientific Research Netherlands National Funding and Technology Transfer

Agency European Technology Transfer Events, select bio-based SMEs

ASTER Italy Innovation Management Agency European Bio-Based Business Developer, audits, mentoring

IMADe Spain Innovation Management Agency Idenitfy first users, test facilities for proof of concept, audits, mentoring

Madrid Biocluster Spain Regional biocluster organisation Select and Support for biotech SMEs

SusChem Spain / FEIQUE Spain National Chemistry Sector Organisation Select and Support for chemical SMEs

Fast Track Consulting Belgium Expert consultant new ICT based business models Crowdsourcing and Open Innovation System Development

BIOCHEM BIOCHEM –– Project PartnersProject Partners

Assess the market for bioAssess the market for bio--based products (report produced and available)based products (report produced and available)Develop a business support toolbox to help lower the barriers foDevelop a business support toolbox to help lower the barriers for r SMEsSMEs to to innovate in this marketinnovate in this marketTest the toolbox with Test the toolbox with SMEsSMEs through three interrelated activitiesthrough three interrelated activitiesoo Business plan competitions to identify the best ideas for new biBusiness plan competitions to identify the best ideas for new bioo--based based

businessbusinessoo Support for existing businesses Support for existing businesses –– assessment of the opportunities for at assessment of the opportunities for at

least 250 least 250 SMEsSMEs using the toolbox, and production of Individual using the toolbox, and production of Individual Development PlansDevelopment Plans

oo Access to funding Access to funding –– fundingfunding needs and opportunities for each SME based needs and opportunities for each SME based on its Individual Development Planon its Individual Development Plan

Dissemination of information on the bioDissemination of information on the bio--based market and the toolbox in based market and the toolbox in order to increase awareness within the chemistryorder to increase awareness within the chemistry--using sectorsusing sectorsDevelop an exit strategy to ensure the benefits continue beyond Develop an exit strategy to ensure the benefits continue beyond the the lifetime of the projectlifetime of the project

BIOCHEM BIOCHEM –– ObjectivesObjectives

Helps to foster bioHelps to foster bio--based products as one of Europebased products as one of Europe’’s Lead Markets s Lead Markets and communicates the societal and strategic benefits;and communicates the societal and strategic benefits;Assesses the bioAssesses the bio--based products market and communicates its based products market and communicates its potential for the chemistrypotential for the chemistry--using sector, both within the industry and using sector, both within the industry and more widely;more widely;Develops integrated tools for providing technical and business Develops integrated tools for providing technical and business support to reduce barriers to innovation in biosupport to reduce barriers to innovation in bio--based products, based products, particularly for particularly for SMEsSMEs;;Uses the tools to drive new SMEUses the tools to drive new SME--driven biodriven bio--based product ideas;based product ideas;Aims to deliver to over 250 Aims to deliver to over 250 SMEsSMEs to support their innovation activity;to support their innovation activity;Recommends to EC policy makers an exit strategy to ensure servicRecommends to EC policy makers an exit strategy to ensure service e and support is available beyond 2013.and support is available beyond 2013.A key component of this project is BUILDING A key component of this project is BUILDING NEW SKILLSNEW SKILLS AT AT LOCAL, NATIONAL AND EU LEVELSLOCAL, NATIONAL AND EU LEVELS……....

BIOCHEM BIOCHEM –– Summary Summary

……but there is much more to do on SKILLS DEVELOPMENTbut there is much more to do on SKILLS DEVELOPMENTif we are to succeed in building a successful if we are to succeed in building a successful bioeconomybioeconomy!!

We have already discussed some of the capabilities we need to We have already discussed some of the capabilities we need to develop at global, EU, national and local levels in order to buidevelop at global, EU, national and local levels in order to build ld a bioeconomya bioeconomy…………

Education

Education Research

Research InnovationInnovation

““The The KnowledgeKnowledgeTriangleTriangle””

““EuropeEurope’’s Skills Pyramids Skills Pyramid””

Literacy and basic skills

Occupational skills

GKEtalents

““GlobalGlobalKnowledgeKnowledgeEconomyEconomy””

BB

B B --

CC

A recent analysisA recent analysis……

……a key pointa key point……..

…….and Europe.and Europe’’s s ““fitness can be compared withfitness can be compared withthe rest of the worldthe rest of the world……....

A recent key conferenceA recent key conference……....

Some challenges and issuesSome challenges and issues……


Bioeconomy: Creating Global and Bioeconomy: Creating Global and Local Opportunity Local Opportunity –– DriversDrivers……..

Climate and associated changesClimate and associated changesWaste in production materials, products and Waste in production materials, products and endend--useuse

Fossil fuel depletionFossil fuel depletionCritical (strategic) mineral and other raw Critical (strategic) mineral and other raw material availabilitymaterial availability

INFORMED government regulation, fiscal INFORMED government regulation, fiscal measures and green public procurement measures and green public procurement

EU Research InitiativesEU Research Initiatives

Bioeconomy: Creating Global and Bioeconomy: Creating Global and Local Opportunity Local Opportunity –– IssuesIssues……..

Popular perceptions of Popular perceptions of ““the bioeconomythe bioeconomy”” and informed and informed regulation at EU and nation state levelsregulation at EU and nation state levels

Balance between food and nonBalance between food and non--food crop production food crop production (EU and worldwide)(EU and worldwide)

Mature approach to new wildMature approach to new wild--type and transgenic gene type and transgenic gene technologiestechnologies

Educating the general public away from unfounded Educating the general public away from unfounded fears in new biotechnologiesfears in new biotechnologies

Managing the Managing the move(smove(s) from old to new bioreactor ) from old to new bioreactor technologies and modification of existing planttechnologies and modification of existing plant

Unintended consequences of changing to a bioUnintended consequences of changing to a bio--based based economyeconomy

Need for EU to compete at a global level by harnessingNeed for EU to compete at a global level by harnessingits own assets and advantagesits own assets and advantagesManaged balances at local and EU levels between food Managed balances at local and EU levels between food and nonand non--food crop production (act as a federation!) food crop production (act as a federation!) Major investment at EU and member state levels in newMajor investment at EU and member state levels in newtechnologies, new manufacturing, production and technologies, new manufacturing, production and recycling/disposal systemsrecycling/disposal systemsEffective use of locally available skills and resources Effective use of locally available skills and resources by operating at an EUby operating at an EU--wide levelwide level

Bioeconomy: Creating Global and Bioeconomy: Creating Global and Local Opportunity Local Opportunity –– IssuesIssues……..

Above allAbove all, a bioeconomy is about , a bioeconomy is about innovativeinnovativebiobio--based productsbased products……....

Business OpportunitiesBusiness OpportunitiesTransformation to a low carbon Transformation to a low carbon

chemical industrychemical industryHigh value products High value products -- biopolymers, biobiopolymers, bio--

derived chemicals, lignin coderived chemicals, lignin co--products; products; biobio--surfactants; biosurfactants; bio--lubricants; personal lubricants; personal care ingredientscare ingredientsPharmaceutical and Agrochemical Pharmaceutical and Agrochemical

activesactivesImproved feedstock flexibilityImproved feedstock flexibilityAlternative source of aromatics Alternative source of aromatics MicroMicro--organisms for specific productsorganisms for specific productsNew platform chemicalsNew platform chemicalsNew business modelsNew business models

Environmental BenefitsEnvironmental BenefitsReduced dependency on fossil Reduced dependency on fossil

feedstocksfeedstocks and precious metal catalystsand precious metal catalystsContribution to climate change targetsContribution to climate change targetsPotential for more compostable and Potential for more compostable and

recyclable productsrecyclable products

Key Enabling TechnologiesKey Enabling TechnologiesBiochemistry/biotechnology with Biochemistry/biotechnology with

chemistry/engineeringchemistry/engineeringBio transformation and bioBio transformation and bio--engineering engineering

techniques; fermentation; gasificationtechniques; fermentation; gasificationLignocellulosicLignocellulosic technologiestechnologiesNovel biocatalysts, enzymes and microNovel biocatalysts, enzymes and micro--

organismsorganismsSynthetic BiologySynthetic BiologyPlant cell culture development and plantPlant cell culture development and plant--

breeding, breeding, Integrated Integrated BiorefiningBiorefiningOpen source chemistry and biologyOpen source chemistry and biologyCell and protein characterisationCell and protein characterisationMicrobial genomics and informaticsMicrobial genomics and informatics

Barriers and IssuesBarriers and IssuesAbility to track provenance of biomass in Ability to track provenance of biomass in

global trading global trading Societal acceptance of GM cropsSocietal acceptance of GM cropsAvailable land massAvailable land massScale of biomass production and Scale of biomass production and

transportationtransportationQuality of bioQuality of bio--derived productsderived products

The future is the BIOECONOMYThe future is the BIOECONOMY……......BUTBUT we still have a long way to go!we still have a long way to go!

Acknowledgments Acknowledgments

SuschemSuschem ETP and Bayer Technology GroupETP and Bayer Technology Group

CeficCefic and EuropaBioand EuropaBio

EU BIOCHEM Project Team and the UK CIKTNEU BIOCHEM Project Team and the UK CIKTN

Royal Society of Chemistry (RSC) and Gesellschaft Royal Society of Chemistry (RSC) and Gesellschaft Deutscher Chemiker (Deutscher Chemiker (GDChGDCh))

UK Industrial Biotechnology Innovation Growth TeamUK Industrial Biotechnology Innovation Growth Team

Unilever plc and JLS CONSULT LtdUnilever plc and JLS CONSULT Ltd

Helsinki Chemicals Forum 2011Helsinki Chemicals Forum 2011

Session on Session on ““Bioeconomy Bioeconomy –– Creating Creating Global and Local OpportunityGlobal and Local Opportunity””

Opening Comments by Rodney Townsend Opening Comments by Rodney Townsend

Director Strategic Projects Royal Society of Chemistry UK Director Strategic Projects Royal Society of Chemistry UK Chairman 2008Chairman 2008--2010 of ETP on Sustainable Chemistry (SusChem)2010 of ETP on Sustainable Chemistry (SusChem)