The Biotech Revolution in Europe What s needed to make it happen? Marcel Wubbolts CTO Royal DSM Chair Board BIC, Vice-Chair BBI Board Agri Meets Chemicals, Rotterdam, October 6 th, 2015
We connect our unique competences in Life Sciences and Materials Sciences to create solutions that nourish, protect and improve performance. Our purpose is to create brighter lives for people today & generations to come.
DSM at a glance (2014) Sales* ~ 10 billion Global* presence ~25,000 employees worldwide Listed at Euronext NYSE Share price ~ quintupled in 25 years Sustainability leader Top ranking Dow Jones Sustainability Index DSM is a global Life Sciences & Materials Sciences company active in health, nutrition & materials DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, medical devices, automotive, paints, electrical & electronics, life protection, alternative energy and bio-based materials * Including 2014 pro-forma and pro-rata (annualized) sales & number of employees (ultimo 2014) of non-consolidated Associates & Joint Ventures (for sales this is mainly DPx Holdings and DSM Sinochem Pharmaceuticals)
Key markets Materials sciences Building & Construction Automotive Other Electrical & Electronics (Food) Packaging 8% 9% 5% 5% 8% 32% Food & Beverages 16% Animal Feed 5% 10% 2% Infant nutrition Dietary Supplements Personal Care Life sciences DSM offers products & solutions to a wide range of markets
Innovation is needed to make it happen
Science is needed to make it happen
Global challenge: 9 billion people to feed in 2050!
7 Global challenge: prevent climate change
8 New economic models are needed to make it happen
Circular thinking is leading
DSM and the Circular Economy Secure future availability of resources 1. Minimize environmental impact 2. Reduce critical resource use 3. Replace finite and toxic resources Unlock more value from resources in use 4. Increase lifetime value of products 5. Enable recovery of valuable materials 6. Valorize waste streams
Niaga is the world s first closed-loop carpet technology Unique and proprietary carpet technology Complete production and recycling ecosystem Engineered adhesive technology for carpet lamination Joint venture with sustainable carpet experts
EcoPaXX : Engine cover Trend: Reducing carbon footprint 70% bio-based engineering plastic Superb surface appearance High thermal resistance up to 250 C Reduction of 40% of the CO 2 emissions compared to conventional polyamides
Biotechnology is enabling Feedstock: Smart & efficient use of resources to produce food, feed, energy, chemicals & materials based on sustainable biomass availability at world market prices (i.e. level playing field with Oil, Gas and Coal) Energy: Zero carbon footprint energy (co-product) Process: Increased efficiencies & industrial symbiosis, clean production; learn from fossil historic development with a 90+% efficiency on carbon Products: Both drop-in bio-based (bulk) chemicals and new functional intermediates for application in food, feed, materials and fuels
Cellulosic ethanol Biofuels from agro-residue Inspired by nature: special yeast & enzymes Reduction of up to 85% of CO 2 emissions compared to conventional fuels
The new generation in sustainable decorative paints Novel process of converting renewable materials into durable polymers New dimension of high performance combined with durability Enabling partners to formulate zero VOC paints (waterborne, 45% renewable)
Bio-succinic acid: in transition From corn starch to woody biomass feedstock 1 Petro - commercial 1 2 3
Collaboration is needed to make it happen
Bioprocess Pilot Facility
Chemelot InSciTe
Strong partners Reverdia: Powered by DSM & Roquette Utilizing the distinct & unique competencies of 2 leading companies Biomass Biosuccinium Materials OEM Brand Owner Experts on potential of biomass Top global starch & derivatives producer Biorefinery experts 3 billion sales Member of UN Global Compact Experts on using microorganisms to convert sugars from biomass into chemicals/materials Biotechnology leader 9 billion annual sales Top ranking Dow Jones Sustainability Index
Connecting Value Chains Acting in different Positions of the Value Chain - Partnerships with suppliers Application know-how Customer intimacy Engineering Plastics, Resins, Dyneema, Advanced Surfaces, Biomedical Materials - Create consumer awareness - Capitalize on brand owners pull Raw Feedstock Polymers Materials Materials End Users Bio-based Products & Services at DSM - Capitalize on (ligno) cellulosic biomass - Partnerships Conversion technology - Enable Advanced Biofuels - Enable bio-based Performance Materials - Partnerships & lead users
About BIC Established in 2012 to represent the private sector in the Public-Private Partnership BBI Bio-based Industries (EC representing the public sector). Main tasks: Define the BBI s Strategic Innovation & Research Agenda Lead the drafting of the annual BBI Work Plans & Call for Proposals topics Mobilise stakeholders: industry (large, SMEs, SME Clusters), research organisations, universities, regions and all other relevant stakeholders across Europe Improve (conditions for) Access to finance in Europe A multi-sector organisation, and still growing: Agriculture Agro-food Forestry / pulp & paper Biotechnology / technology providers / end users Chemicals Energy
Budget 975 M 975 M + 1755 M = TOTAL 3705 M (~75% from BIC) Call for Proposals (in cash and in kind) Additional Activities
Our members More than 200, and still growing 77 Full members 43 Large industries 19 SMEs 15 Clusters 142 Associate members 47 Universities 71 RTOs 10 European Associations 7 Associations 5 Technology platforms 1 Public institution 1 Bank
Results 2014 call: 120 million investments: 50 million EU public money, 70 million private investments 7 research projects 2 Demo projects (biorefineries for chemicals from wood, and sugar beet pulp) 1 Industrial scale flagship project (biobased products from cardoon, an underutilized oil crop grown on arid and marginal lands); by-/co-products use for energy, feed and added value chemical production. 2015 calls 1 st call 2015: public budget allocated of 100 million 2 nd call 2015: public budget allocated of 106 million For 2014-2017, BIC members anticipate to invest > 1,5 billion in EU
Benefits for Europe EC estimates European bio-economy at 2 trillion & providing more than 22 million jobs Maximizing potential of waste, agriculture &forestry residues Diversify and grow farmers incomes: up to 40% additional margins with existing residues Boosting job creation, 80% of which will be in rural and underdeveloped areas Replace > 30% oil-based chemicals/materials with bio-based/biodegradable (2030 target) Meet 25% of Europe s transport energy needs with advanced biofuels (2030 target)
The Biotech Revolution in Europe What s needed to make it happen? Promising PPPs as unique catalysts Open innovation Share know how, hence value New EU collaborations cross value chains; big (industry) & small (SME) From Proof of Concept of (2G) technologies to translation (e.g. Biobased Pilot Facility Delft, Biobase Europe Ghent, Chemelot InSciTe) to industrial applications and work needs to be done to enable a low-carbon economy Low carbon innovations, energy efficiency & scaling of renewable energy Fiscal systems/policies, including a.o. carbon pricing; Transparency of investments/policies re shift fossils renewables Make public aware of impact of climate change on planet & society WALK THE TALK!
Stakeholders partnerships Who is designing the playing field? Society Companies Governments Science Page 28
www.sciencecanchangetheworld.org
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