THE FOREST SECTOR CONTRIBUTION TO THE EUROPEAN BIOECONOMY

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1 THE FOREST SECTOR CONTRIBUTION TO THE EUROPEAN BIOECONOMY Workshop Brussels, 8 Sep 2011 COLLECTION OF IDEAS Dr. Petri Vasara Director, Head of Global Consulting Practice Pöyry Management Consulting Oy petri.vasara@poyry.com

2 Statements and Short Proofs 1. Without the forest sector, there is no true bioeconomy, especially in the shadow of looming political food crises 2. The forest sector is already a part of many new growing bio-based industries of key importance to Europe 3. The scope of possibilities for forest-based products in the bioeconomy is second to none 4. The connected chain land-food-agriculture-silviculturerecycling-waste-water-metals will shake the world, and the forest sector is in a key position WITHOUT INNOVATION AND JOINT FORCES, FOOD USE WILL EAT THE BIOECONOMY BEFORE IT IS BORN DBA: DEAD BEFORE ARRIVAL

3 1 Without the forest sector, there is no true bioeconomy, especially in the shadow of looming political food crises A bioeconomy based solely on food and agriculture will most likely run into a global food crisis Rising food prices in third world countries may topple and have toppled regimes at worst. At the same time, concerns over security of supply are linked to worries over health in the Western world. However, the equal complement to agrobiomass, non-food forest biomass, is - not a source of governments falling - as rich (or richer) in applications and qualities as the food-caliber biomass According to recent article: food price riot explosion forecast for August 2013 arxiv.org/abs/ : Marco Lagi, Karla Z. Bertrand, Yaneer Bar-Yam: The Food Crises and Political Instability in North Africa and the Middle East

4 2 The forest sector is already a part of many new growing biobased industries of key importance to Europe and the world ADVANCED BIO-BASED MATERIALS: A LARGE AND GROWING SECTOR Our current estimated market sizes for advanced bio-based materials and products with advanced biobased materials give a billion EUR total market size, with cosmetics and tissue/hygiene (value added consumer products) dominating at 14 bill. EUR and 4 bill. EUR, respectively, C A B D E F 990 construction and automotive follow, technical and medical textiles deserve a special high end mention (470 MEUR) and packaging, pharma and consumer electronics complete the picture Industry A= Packaging B= Personal care: Tissue C= Personal care: Cosmetics D= Consumer electronics E= Construction F= Automotive industry G= Others: Pharma, bio-based excipients H= Others: Technical and medical textiles G H

5 3 The scope of possibilities for forest-based products in the bioeconomy is second to none Current examples. Forest-based biomass could replace agrobiomass in the examples mentioned. Bio-plastic coating from starch in consumer packaging Bio-foam from soy in automotive interiors Excipients from Bio-based wood pulp for pill paint from biomass functionality in in consumer pharma electronics Bio-degradable diapers from wood pulp in tissue/hygiene Bio-based functionality from chemical in wood in cosmetics Humidity repellent property from chemical in wood in construction 5

6 EXAMPLES OF BIOECONOMY END USE SECTORS Links between overlapping sectors Tissue Direction of overlap Hygiene Textiles Construction Furniture Automotive Packaging Pharma: Excipients Consumer Electronics E.g.: Tissue in Hygiene which needs Packaging ; Textiles in Automotive and Hygiene which need Packaging 6

7 FROM MATERIALS CORE TO END USES: A LOADED SPRING OF EXPANSION POSSIBILITIES There is a tight core of bio-based materials that radiates an impact on products, sectors and companies globally. Construction HEART OF BIOECONOMY: A CROSS-SECTOR INNOVATION CORE Automotive Wood composites Foam Bio-plastics Textile Bio-based chemicals Cosmetics Furniture Hygiene Packaging Bio-based materials Products End-use sectors Consumer electronics 7

8 FROM MATERIALS CORE TO END USES: A LOADED SPRING OF EXPANSION POSSIBILITIES There is a tight core of bio-based materials that radiates an impact on products, sectors and companies globally. Furniture Construction HEART OF BIOECONOMY: A CROSS-SECTOR INNOVATION CORE Wood composites Foam Bio-plastics Targeted Automotive innovation in the core -> spread across whole bioeconomy, forest sector and agro sector in synergy. If we allow it to happen. Textile Bio-based chemicals Cosmetics Hygiene Packaging Bio-based materials Products End-use sectors Consumer electronics 8

9 NETWORK EFFECTS AND LEVERAGING The Coca Cola-Heinz deal illustrates how players can jointly accelerate the prospects of bio-based materials to the benefit of all. Spiraling in the bio-based materials value network Heinz Technology Heinz Brand? CocaCola Technology and brand Coca-Cola signed a deal in February 2011, whereby Heinz will use PlantBottle (part bioplastic in plastic) technology for its 20- ounce ketchup bottles. All indications are that Coca-Cola will do similar deals with others, thus both benefiting from its development work and spreading bio-based plastic usage. That plastic could be a forest sector product. 9

10 FOREST-BASED BIOECONOMY ALSO VERY DOWN TO EARTH, VERY TODAY AND YET LONG-TERM Can you get deeper into average consumer daily life than with the noise from potato chip bags? Step 1 Pepsi rolls out eco-bag from bioplastics in 2009 Step 2 Consumers like it, but one complaint: the bag is too noisy. Step 3 Pepsi retires ecobag. Step 4 Pepsi redesigns ecobag, with new adhesive to dampen the noise: down to 70 decibel from 85 decibel. Now, Pepsi tests consumer reaction using social media. BIG CONSUMER BRAND. SOCIAL MEDIA TESTING. BIOPLASTICS. PACKAGING. NOISE REDUCING ADHESIVES. WELCOME TO ADVANCED BIO-BASED MATERIALS TODAY. 10

11 4 The connected chain land-food-agriculture-silviculture-recyclingwaste-water-metals will shake the world ADVICE TO BIOECONOMY FOOD: don t step on edible toes. SEVEN TRENDS THAT WILL SHAKE THE FIBRE WORLD Food-to-AGRO: find synergies wood/non-edible agro biomass Agro-to-PLANTATIONS: the next-next gen of (agro)forestry Plantations-to-WASTE: Plug the leaks in Europe, be it metals or biomass Waste-to-RECOVERED PAPER: Recovered for the most valuable purpose RP-to-LAND: What everyone will fight over 5 Land-to-MEDIA: Where metals and biomass finally must join forces

12 KEEP WATERWHEEL ROLLING, AND ADD VALUE-ADDED PIPES HEART TO CIRCULATION OF BIOECONOMY Living Waterwheel: How Fibre Circulates in Europe For non-paper uses 52Axxxxxx REP ORT 12 NAM E

13 You ain t seen nothing yet! in food-related riots and governments falling in bioeconomy besides biofuels based on the forest sector in the speed of forest-bio-based innovations spreading across completely new sectors of the advanced bio-based materials sector of the key role the forest sector will play in the rise of EU in this crucial future area of the forest sector heart of innovation and circulation of fibre working together for the bioeconomy