The innovative biobased economy in Europe: value, partnerships & investments

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1 The innovative biobased economy in Europe: value, partnerships & investments Supported by Dirk Carrez Executive Director

2 THE BIO-BASED INDUSTRIES CONSORTIUM

3 BIC s mission and activities To build new bio-based value chains by developing new biorefining technologies, optimising feedstock use and creating a favourable business and policy climate to accelerate market acceptance of bio-based products Bio-based Industries Consortium (BIC) established in 2012 to Represent the private sector in the Public-Private Partnership BBI JU with the EC (public) Activities: Set up and update the BBI s Strategic Innovation and Research Agenda (SIRA) Lead the writing of the Annual Work Plans with topics for the Calls for Proposals Mobilise stakeholders: industry (large and SME), research organisations, universities, regions and relevant stakeholders across Europe Assist members gaining better access to European financial instruments Create awareness. At regional level: MoU with ERRIN, Vanguard Initiative, Polish regions,

4 Our members 76 Full members 31 Large industries 29 SMEs 16 SME Clusters (representing 110 SMEs) Several industrial sectors covered Agriculture & Agri-food Forestry and Pulp & Paper Technology providers Chemicals and materials Energy Aquatic 165 Associate members Universities, RTOs, European associations & organisations, Technology Platforms (ETPs), public institutions, regional organisations, private banks,

5 BIC s expectations: (in)direct impact of the BBI JU A clear framework that brings clarity for activities & investments, together with predictability Developing new value chains involving different industrial sectors A joint approach - across sectors and nations that will unite parties that : would otherwise find these activities too risky for an individual sector/company to carry out on its own are not used to work together Improve access to finance (EIB, ESIF, ), attract investments to EU and leverage further (industry) investments

6 Importance of the EU bio(based) economy

7 The European Bioeconomy

8 Turnover in the bioeconomy in the EU-28 (2014) The total European Bioeconomy, including the food, feed, beverages and primary sectors (agriculture and forestry) amounts to 2.26 trillion EUR turnover.

9 Turnover in the biobased economy in the EU-28 (2014) The bio-based industries (chemicals and plastics, pharmaceuticals, paper and paper products, forest-based industries, textile sector, biofuels and bioenergy) contribute with 674 billion EUR.

10 Employment in the bioeconomy in the EU-28 (2014) The total employment in the European Bioeconomy is 18.3 million employees with primary biomass production (agriculture and forestry) as the biggest contributor (56%).

11 Employment in the biobased economy in EU-28 (2014) The bio-based industries contribute with 3.3 million employees.

12 EU strategy for the bioeconomy

13 Adopted on 13 February 2012 Focus: production of renewable biological resources and their conversion into products and bio-energy. Under the lead of DG R&I, co-signed by DG Agri, DG Env, DG Maritime Affairs, and DG Grow. Tree pillars: Investments in research, innovation and skills; Reinforced policy interaction and stakeholder engagement; Enhancement of markets and competitiveness. The Strategy is also needed to ensure that fossil fuels are replaced with sustainable natural alternatives as part of the shift to a post-petroleum society. Review and update of the Strategy by 2017

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15 Public-private partnership: Biobased Industries Initiative (BBI)

16 The BBI JU Governance

17 A 3,7 bn public-private partnership 975 M 975 M M = TOTAL 3705 M (about 75% from BIC) Call for Proposals (in cash and in kind) Additional Activities

18 The BBI JU Vision Our vision is a competitive, innovative and sustainable Europe leading the transition towards a post-petroleum society while decoupling economic growth from resource depletion and negative environmental impacts.

19 The BBI JU Objectives BBI JU s objectives are to contribute to a more resource efficient and sustainable low-carbon economy and to increasing economic growth and employment, in particular in rural areas, by developing sustainable and competitive bio-based industries in Europe. This will based on advanced biorefineries that source their biomass sustainably and in particular to:

20 Focus Feedstock Fostering a sustainable biomass supply and building new value chains Biorefineries Optimising efficient processing through R&D and upscaling in large-scale demo/flagship biorefineries Markets, products and policies Developing markets for bio-based products and optimising policy frameworks

21 The BBI JU Actions

22 The BBI JU value chain

23 The BBI JU: AWP 2017 In the AWP 2017, the topics are grouped into four strategic orientations reflecting the steps along the critical path:

24 Strategic Research & Innovation Agenda (SIRA)

25 What is the SIRA? Sets out the main technological and innovation challenges to developing sustainable and competitive bio-based industries in Europe. It reflects BIC s vision, and agreed by EC. The SIRA identifies: Research; Demonstration and Deployment activities to be carried out by the JTI on Bio-based industries (BBI Initiative)

26 Update of the Strategic Research & Innovation Agenda (SIRA) Version 1 (2013) Version 2 (2017)

27 Drivers for SIRA adjustment Widen the scope for participation in the BBI programme More/other industrial sectors: manufacturing, technology providers Broader geographical spread: extend into CEE; link with regions More focus on demand/market: link with brand owners and market actors Incorporate the state-of-play of the world around us and reap the benefits thereof Developments in feedstock cultivation, availability, preparation, logistics, etc. Developments in technology: in pre-treatment, conversion and downstream; internet of things Reflect the political context Developments in policies and initiatives like bioeconomy strategy, circular economy package, COP21

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29 Key SIRA adjustments Multi-value-chain approach, pursuing crossover between traditional value chains, providing more opportunities to convert the feedstock into chemicals, materials, food ingredients and feed, and advanced transport fuels. At the heart of the SIRA are the composing pillars of value chains: foster supply of sustainable biomass feedstock to feed both existing and new value chains; optimise efficient processing for integrated biorefineries through research, development and innovation (R&D&I); develop innovative bio-based products for identified market applications; and create and accelerate the market-uptake of bio-based products and applications. These pillars form the four strategic orientations of the bio-based industry in Europe.

30 Bio-based value chains envisioned in the BBI Initiative Many of these adjustments have already been incorporated in the 2017 AWP

31 3 years BBI JU: Impact

32 Impact of 3 years BBI DIRECT IMPACT: 65 projects of which 20 DEMOs and 6 FLAGSHIPS (full scale biorefineries) A total of 729 participants from 30 countries for a total grant of 415 million. 36,7% of beneficiaries are SMEs. Funding to SMEs: 29% Already today, the projections show a ratio of more than 4 private investment for each 1 of public money Expected outputs by 2020 from Calls 2014 and 2015: 82 new bio-based value chains 46 new bio-based building blocks (novelty ranges from replacing fossil-based feedstock to improved environmental, economic and/or product performance) 106 new bio-based materials (ranging from breakthrough primary & secondary chemicals, fertilisers, fibres, plastics, bioactive ingredients and proteins) 47 bio-based consumer products 146 cross sector interconnections across value chains (sectors: food & feed additives; agriculture; energy; forestry; packaging; health-, home & personal care; paper & pulp; automotive; pharmaceutical; textiles; construction; and aquatic sector)

33 Impact of 3 years BBI INDIRECT IMPACT: Mobilisation of private investment in Europe keeping knowledge and innovation, and investments in innovative production processes in Europe. Attract companies from outside EU to invest in innovation in Europe! New value chains: e.g. food industry collaborating with the chemical industry, the forestry and pulp & paper sector collaborating with chemical and textile industry, etc. New industrial sectors are joining e.g. by creating value from waste and side streams (food processing sector, aquatic/marine sectors, bio-waste and CO2). As a result we also observe a wider geographical spread throughout Europe. Responding to environmental and societal challenges: initiatives such as the Circular Economy Package and COP21 are bringing more and new players to the game. Increased market focus: participation of brand owners is key as they help to develop new applications and create new markets. Their involvement also shortens time to market for innovative bio-based products. Involving the regions: BIC and BBI JU have strengthened their collaboration with the EU regions to exchange information and explore synergies and opportunities for joint financing, and deployment of new value chains. Contribution to the priorities of the Juncker Plan for Europe by stimulating investments and creating innovative growth & jobs, which will again stimulate innovation. BIC industry members have >4,5 billion EUR investments in the pipeline.

34 Investments & examples

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43 BIC members: investments in the pipeline in EU (bn EUR)

44 Partnerships

45 JVs and Partnerships Examples in Europe DSM and Roquette opened a commercial scale (10,000 tons/year) bio-based succinic acid plant in 2012 in Italy (Reverdia). Leaf Resources and Novozymes join forces in the conversion of biomass to functional sugars Novamont and Genomatica building first industrial (18,000 tons/year) bio-based butanediol (BDO) plant in Italy. BASF and Purac formed a bio-succinic acid JV to start commercial bio-succinic acid production. Rhodia (Solvay) has set up a partnership with Avantium to develop and commercialise bio-based polyamides Coca Cola announced an agreement with Avantium to develop 100% plant based bottle (PEF)

46 JVs and Partnerships Examples in Europe Clariant and Global Bioenergies work together on bio-isobutene production Rhodia (Solvay) and Roquette will jointly develop bio-based polymers Avantium and BASF will produce PEF together Corbion and Total formed a JV to produce PLA GFBiochemicals acquired Segetis to produce levulinic acid derivatives Neste and IKEA will develop together Biobased materials

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