We're Not So Different You and I: Comparing Bioeconomies in Finland and Canada

Transcription

1 VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD We're Not So Different You and I: Comparing Bioeconomies in Finland and Canada Jussi Manninen, VTT 2017 Atlantic Biorefinery Conference

2 My Presentation Bioeconomy in Finland: some comparison to Atlantic Canada Finnish Bioeconomy Strategy and the first steps of implementation Change of Government: the new set of priorities and actions Lessons learned and where next?

3 Two Sparsely Populated, Forest Covered Regions Atlantic Canada km2 - Pop. 2.3 mill Finland km2 - Pop. 5.5 mill

4 Bioeconomy s Significance for Finland Turnover 64bn Finland seeks to increase its bioeconomy output to 100 B euros by 2025 and to create 100,000 new jobs in the process. Share of employment 11% Share of exports 26% Bioeconomy combines wood processing, chemistry, energy, construction, technology, food and health. Forest based bioeconomy accounts for 2/3 of the turnover

5 The Output of the Finnish Bioeconomy The total annual turnover is about 64B More than half of the bioeconomy is forest based Pharmaceutics 2% Chemicals 3% Food 26% Water 1% Construction 15% Services 5% Energy 7% Forest 41% Forest Energy Construction Food Chemicals Pharmaceutics Water Services

6 Wood Use in Finland

7 Value Added and Impact from Bioeconomy Multiple use by a market driven approach provides most added value and the greatest impact New bioproducts and services Innovative traditional products High value Cascade use High value Multiple use Value/unit Maximum: /unit * units = total value Traditional wood products Traditional fiber products New bioproducts Biofuels/Bio oil Heat and power Low value Extensive use Total raw material/market potential

8 The Process Towards the Strategy Strategy drafted in a project set up by the Ministry of Employment and the Economy Process started in Autumn of 2012 Strategy published in May 2014

9 Participants and Stakeholders Consulted Participants in this project: Prime Minister s Office Ministry of Agriculture and Forestry Ministry of the Environment, Ministry of Education and Culture Ministry of Social Affairs and Health Ministry of Finance Administrative branches under these Ministries VTT Technical Research Centre of Finland Finnish Innovation Fund Sitra Stakeholder input to strategy preparation: 5 workshops, 3 regional bioeconomy forums and sectorial consultations All those interested were invited to express their Otakantaa.fi survey and Biotalous.fi website 9

10 Finland s Bioeconomy Strategy Strategic goals 1. COMPETITIVE ENVIRONMENT FOR BIOECONOMY 2. NEW BUSINESS FROM BIOECONOMY 3. STRONG KNOW-HOW BASE FOR BIOECONOMY 4. USABILITY AND SUSTAINABILITY OF BIOMASS Implementation and monitoring Sustainable bioeconomy solutions are the basis of Finland s welfare and competitiveness.

11 Implemented Actions Focus areas: Investments, regulation and export 1. Boosting investments An International Biorefinery Competition 2. Finnish bioeconomy priorities for the EU defined 3. A regulatory survey on Bioeconomy bottle necks and boosters 4. Biomass Atlas combining public data on biomass resources 5. Promotion of exports of biobased products and technologies 6. A communication and media action plan 7. Tools for promotion and a public discussion

12 International Biorefinery Competition First of its kind globally Entries represented investments of 1.5 B Winners Spinnova fibre yarn Biovakka Suomi transportation fuels and nutrients Kemijärvi consortium new pulp products and chemicals

13 Biomass Atlas: The new web service provides open access to Finnish biomass data Amount and location of biomasses and land use: woodchips, field use and manure amount in agriculture, bio-waste from municipalities and industry Apr. 200 fractions / layers Thematic background maps for evaluation the use of biomass 1 km grid data help to make effective queries Tools to update the data Data and knowledge to support investments, planning, energy and environmental policy Open map user interface, analysis tools and reporting Further development will include interfaces to data transfer and modeling and English translation service opens at 6/2017 For more information: Eeva Lehtonen, Luke, Where are the fields to take the digestate? How much raw material I can find in my neighborhood?

14 First Outcomes From the Strategy A strong national will to develop the bioeconomy Effective co-operation model between ministries and stakeholders A positive outlook for the future which can be seen in increase of investments Increased interest from non-forest industries to utilise biomass Public investments into the bioeconomy and infrastructure Increased public acceptance for use of biomass

15 Forest, energy, chemical and material industries are integrating into new industrial ecosystems UPM Metsä Group Fortum

16 Bioeconomy and Clean Solutions: Key Objectives of the Government Strategic Action Plan Bioeconomy and clean solutions is one of the five strategic priorities. Themes: Cost-efficient carbon-free, clean and renewable energy Wood on the move from forests and new bio-based products Circular economy and implementation of clean technologies Profitable food production and blue bioeconomy Fair nature policy Funding 300 M for the government term ( )

17 Selected Actions from the Government Action Plan Energy and climate strategy for 2030 and support measures to increase share of renewables in energy production and in traffic Increasing supply of wood and promoting investments in the forest sector, bioeconomy and clean solutions Accelerating new innovations in bioeconomy and circular economy by piloting and demonstration using national and European financing Improving the financial position of growth SMEs through financing instruments Reducing administrative burden

18 Regional Policies Supporting Bioeconomy Promotion of new technologies in production of biofuels Circular economy and bioeconomy investments and wood construction will be promoted New products, services and business models will be developed for circular economy, bioeconomy and cleantech

19 Regional policies supporting Bioeconomy Circular economy and bioeconomy will be promoted by growth agreements between the central government and towns The deployment of new innovations will be speeded up by means of experimental projects and innovative public procurements The use of local foods and the development of regional and local food systems that contribute to supporting the vitality of the regions will be promoted.

20 Regional Policies Supporting Bioeconomy The Regional Councils will take the sustainable use of renewable natural resources into account in their regional planning activities. The ministries and Regional Councils will support the concentration of expertise to centres of competence formed by research institutes, higher education institutions and working and business life actors

21 Public Procurement: Market Making Tool

22 Focus On New Markets and Networks Finland has strong expertise in bio-based raw materials and their utilisation. A new opportunity lies on the higher value-added products and their markets.

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24 Available National Instruments in Finland to Support Companies Financing 10 M 5 M 1 M Equity Start-up Lainat Growth Investment loans Direct investments Investments in new energy technology Lainat investointiin tai käyttöpääomaan R&D grants and loans Direct investments Export guarantees Going international

25 Lessons Learned Bioeconomy transcends industrial and administrative boundaries Requires a truly multi-lateral/-party approach Bioeconomy is a lot about industrial and energy policy One needs to have a proper price for carbon to get things really started, current EU price for CO2 is not high enough Market making mechanisms are crucial Good benchmarks are US BioPreferred program & biofuel mandates Standardisation is needed Technology de-risking with piloting and investment grants for investments into new technology and products The role of bioenergy and forests in general in climate change mitigation divides scientists and is subject to aggressive lobbying

26 We Need to Continue Innovating to Reap the Benefits from the Bioeconomy Wood and paper products Textiles and hygiene products Plastic replacement Glues, chemicals Reinforcers

27 Where Next? OECD Views on Innovation Policy