A Public-Private Partnership on Bio-Based Industries

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1 A Public-Private Partnership on Bio-Based Industries Realising the European Bio-economy Potential Supported by Margaretha Söderqvist Lindblad Senior Specialist, PhD Södra Skogsägarna

2 What Europe is up against The bio-economy is a world wide priority US ~$50 billion to biofuels & bio-chemicals 2012, President Obama: The bio-economy is a major engine for American innovation and economic growth BRAZIL Aims to be N 1 Global Bio-economy R$ 3,3 billion for 2 nd generation bioethanol, bio-chemicals and biomass gasification technologies CHINA > $300 billion in Science & Technology with biotech as a major priority over Substitute 20% of crude oil imports by 2020

3 Can Europe make the difference? European technology is being deployed in China and US 100 % 90 % 6% 2% 80 % 70 % 58% 48% 60 % 50 % 40 % 28% FP7 92% Demonstration Applied research Basic research/fp7 30 % 20 % 10 % 32% 11% 24% 0 % China US EU Source: OECD Research & Development Statistics

4 The situation in Europe today We have the feedstocks (biomass, organic waste) We have years of R&D We have technologies that work We have some bio-based products on the market COLLECTIVELY, Europe has TREMENDOUS POTENTIAL BUT Our sectors and governments still operate in silos If only we could bring them together under one roof, and build a common bio-based industries vision Then, we could achieve the unachievable!

5 We are still here

6 This is where we want to go Build and strengthen value chains across industry sectors

7 This is where we want to be Value chains across industry sectors across Europe

8 What is the Bio-based Industries PPP? A Public-Private Partnership between the Bio-based Industries Consortium and the EU A joint commitment of 3.8 billion over o o 1 billion (EU) 2.8 billion (Bio-based Industries Consortium) Multi-annual funding programmes for bio-based projects Enabling rural development and re-industrialisation in Europe

9 PPP 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

10 Strategic Innovation & Research Agenda Value Chain 1: From lignocellulosic feedstock to advanced biofuels, bio-based chemicals & biomaterials realising the feedstock and technology base for the next generation of fuels, chemicals and materials Value Chain 2: Next generation forest-based value chains utilisation of the full potential of forestry biomass by improved mobilisation and realisation of new added value products and markets Value Chain 3: Next generation agro-based value chains realising the highest sustainability and added value by improved agricultural production, and new added value products and markets Value Chain 4: New value chains from (organic) waste from waste problems to economic opportunities by realising sustainable technologies to convert waste into valuable products Value Chain 5: Integrated energy, pulp and chemicals biorefineries realising sustainable bio-energy production, by backwards integration with biorefinery operations isolating higher added value components

11 Different types of projects The Strategic Innovation & Research Agenda (SIRA) includes: R&D PROJECTS focused on filling the gaps in technological innovations: dedicated projects on the development of specific technologies and concepts needed to realise the value chains, and proving the principles in pilot installations DEMONSTRATION PROJECTS To integrate and deploy technologies and R&D results into actual value chains To bring technology close to commercial scale through upscaling in demonstration activities FLAGSHIP PROJECTS To optimise technology for biomass conversion and ensure pricecompetitiveness: both by building new operations and upgrading existing and abandoned industrial sites to be converted into biorefinery operations Each value chain area will lead to at least one flagship project. SUPPORTING PROJECTS mainly include Research activities, focused on solving cross-cutting issues arising from the Value Chain demonstration projects.

12 Benefits for Europe Create value by using resources more efficiently by maximising the potential of waste, agriculture and forestry residues Diversify and grow farmers incomes: up to 40% additional margins with existing residues Bring existing value chains to new levels and build new value chains, thus revitalising industry in rural environment Realise a new generation of bio-based materials and composites produced in biorefineries Create a competitive bio-based infrastructure in Europe, boosting job creation, 80% of which will be in rural and underdeveloped areas Replace at least 30% of oil-based chemicals and materials with biobased and biodegradable ones (2030 target) Meet 25% of Europe s transport energy needs with advanced biofuels (2030 target)

13 Our members More than 170 in one year, and still growing 69 Full members 40 Large industries 17 SMEs 12 Clusters 102 Associated members 33 Universities 54 RTOs 8 European trade organisations 4 Associations 3 European Technology Platforms (ETPs)

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17 What s next? May 2014: official establishment of the Bio-based Industries Joint Undertaking (legal entity) 9 July 2014: launch of the first call for proposals 2014: BIC to develop the Work Programme 2015

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