Vision for forest-based bioeconomy in the Joensuu region
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1 Young Leadership Programme on the Russian Forest Sector 2014 Vision for forest-based bioeconomy in the Joensuu region Harri Välimäki
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7 Forest cluster in Finland Rough numbers Finland is the most forested land in Europe; 76 % is under forests Growing stock increased over last 50 years; annual increment exceeds the fellings by 30% Over 60% of forests are privately owned Wood based fuels are over 20% of total energy consumption Wood accounts over 40 % of all building materials Forests are important carbon sinks; absorb over 50% of CO2 emissions Important non-wood products; tourism, game meat, berries, mushrooms Value ~30% of the total value (non-wood+wood) Strictly protected forest area is largest in Europe; 5,2 %, total area protected is 13% The forest cluster accounts for nearly 30% of all industrial production and net export revenues. Cluster employs a total of nearly 200,000 people in Finland.
8 Forest cluster in Finland The expertise and enterpreneurship based on forestry and wood processing is more extensive and wide-ranging in Finland than in any other country in the world. Finnish forest cluster is a diverse and solid network of top expertise and top businesses growing up around the forest industry. Long history. Not just forest industry, but also forest owners, other forestry entrepreneurs, logistics companies, machine and equipment manufacturers, technology&ict, energy producers, chemicals manufacturers, industry research facilities, universities and higher education institutions, administration, consultants, the graphics industry, the packaging industry and construction sectors using wood Skilled people and effective education system.
9 North Karelia and forest North Karelia Population Area km 2 14 municipalities North Karelia is internationally known as an area of forestry and bioenergy expertise, where the different uses of forests are in good balance. Forestry, forest industry and bioenergy are the cornerstones of the North Karelian economy.
10 North Karelia and forests Forest land, Mha 1.44 Private owned forests, ha Private forest owners Strictly protected forests ha Annual forest growth > 8,0 Mm 3 Annual fellings, Mm 3 ~4 5,5 Forestry income, M /a
11 Basis for smart specialization in the region Growth based on world-class knowledge Companies Research and education Forest bioeconomy Forestry, forest resources inventory, bioenergy, wood procurement and harvesting, wood materials science etc. Materials and technology Photonics, composite materials, forest technology and machines, ICT
12 Joensuu the Forestry Capital of Europe Unique combination of forest research: European Forest Institute EFI Finnish Forest Research Institute Metla University of Eastern Finland UEF Karelia University of Applied Sciences and wider bioeconomy scope: Finnish Environment Institute SYKE The Energy and Resources Institute TERI Over 600 experts in bioeconomy sector
13 University of Eastern Finland (UEF) Full Bachelor package of forestry education Master Licentiate Doctor Karelia University of Applied Sciences Bachelor of Natural Resources Masters Degree of Environmental Technology Master programme in Wood materials science Forestry, chemistry, physics, biology, economics, law North Karelian Technical College in Valtimo Qualifications for forest machine drivers and mechanics, loggers, timber truck drivers, forest service enterpreneurs Forestry-oriented high school in Eno and ENO-Environment Online ( Over 10,000 schools joined, over 100 million trees planted
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15 World class know-how in North Karelia Forest machine technology and material handling solutions: JohnDeere, Kesla, Waratah OM, Outokummun Metalli, Pentin Paja, Mantsinen Group, Konepaja Antti Ranta, Konepaja Riikonen, Havel
16 Forest Cluster companies in North Karelia Stora Enso Oyj, 920 empl. (pulp-mill, sawmills, wood procurement, modified wood) John Deere Forestry Oy, 390 empl. (forestry machinery) UPM-Kymmene Oyj, 350 empl. (plywood-mill, wood procurement ) Kesla Oyj, 270 empl. (forest machinery) Vapo Oyj, 200 empl. (saw-mills, bioenergy) PankaBoard Ltd., 190 empl. (cardboard mill) Mantsinen Group Oy, 150 empl. (logistics and material handling machinery, services) Anaika Components Ltd., 100 empl. (gluelam etc.) Outokummun Metalli Oy, 70 empl. (forestry machinery) Iivari Mononen Oy, 50 empl. (impregn. wood prod.) Arbonaut Oy, 50 empl. (forest sector ICT, GIS) Fortum Ltd, 50 empl. (bioenergy, pyrolysis oil) Warath OM, 40 empl. (forest machinery) Pentinpaja Oy, 25 empl. (forest machinery) And lot more > 500 companies, > 6000 empl., >1,700 MEur
17 Joensuu shows direction to Finnish bioeconomy Growth can only be generated in companies. Joensuu serves as a unique and dynamic operating environment for new business innovations regional open innovation model. The research and education sector and the business services in Joensuu contribute to this work. The INKA Programme (Innovative Cities Programme) of the Ministry of Employment and the Economy looks to urban areas to speed up economic growth until the year 2020; bioeconomy selected as one of five key focus areas in Finland Joensuu as the national leader of the bioeconomy theme in the INKA Programme 2014-
18 Different fields of business meet creatively in Joensuu region The basis for enhancing the vitality of the Joensuu region and the province is multidisciplinary research, education, entrepreneurship and cooperation networks. Joensuu Science Park the facilitator and intermediator Joensuu Science Park Ltd helps finding the most productive keys to sustainable growth and employment from the inherent competitive advantages of the region.
19 Different fields of business meet creatively in Joensuu region Major innovations generated when fields of business meet creatively The future of the region is based on green growth - What is green growth? In Joensuu, the power of green growth can indeed already be found on the interfaces between existing fields of expertise, such as forest bioeconomy, ICT and photonics, as well as the new innovations arising from these interfaces Joint Venture : the issue concerns the public sector, businesses and education and development organisations a like
20 Green growth innovation platform 1. Separate fields of top-expertise 2. Recognition of knowledge and interfaces between the fields of expertise 3. New businesses arising from these interfaces Example: ForestBIO-ICT-Photonics new measuring methods and appliances for forest technology, new user interfaces for forest machine operators (HUD etc.),
21 Green Growth Innovation Platform Some examples
22 Strong competence areas in North Karelia and strong interfaces between them potential for new innovations FOREST BIO-ECONOMY ICT PHOTONICS Forest bio-economy ICT Photonics
23 Forest bioeconomy inventory, measurements and monitoring Growing need for new and more accurate measurements in the whole value chain Combining strong competence areas in North Karelia (Forest-photonics-ICT)! 3. Forest resource management Forest inventories Forest damages management Carbon sequestration analysis etc. Remote sensing, satellite data, laser scanning, computer data analysis, GIS systems
24 2. Forest operations allocation and planning E.g. logging plans, growing stock volume and quality, operations optimization 3. Wood procurement Forest machines, terrain mapping/path optimization, tree map generation, cutting head measurements/bucking, raw material optimization and quality, new user interfaces in forest machines (e.g. HUD, HMD)
25 4. Logistics, raw material handling and storage Round wood, wood chips, forest residues Volume and quality measurements, humidity etc. 5. Processes in factories Production monitoring and measurements in wood industry and in biorefineries Quality measurements eg. humidity control of rawmaterial/chips, machine vision, spectral data
26 Turning interfaces into money Arbonaut Ltd. A world leader in forest inventory. A company specialising in spatial data solutions, actively seeks for natural resource management solutions using the most recent technology. Measures the amount of carbon contained in tropical forests around the globe. Uses photonics and ICT to produce accurate, unbiased measurements on the change of this carbon amount already in three different continents. This measurement data is also used in the planning of sustainable forestry, such as bioenergy production. Arbonaut s technological innovations are already widely used for the collection, analysis and dissemination of forest information among forest authorities worldwide.
27 Green Growth Busines Park Green Park Revolutionize the effectiveness of industrial manufacturing in Joensuu in Finland in the world! Green growth industrial park as development platform around the biggest and the most efficient forest machine plant John Deere Forestry. Qualified supplier network for JD in the park. Maximal productiveness and efficiency of logistics inside the factory and inside the whole park and other companies located there. Resource efficient, workable, modern and flexible solutions in the properties and in the park City of Joensuu, Joensuu industrial properties Ltd. (public company) and the companies (e.g. John Deere Forestry Ltd., JD suppliers, other SME companies) are developing the area and solutions in close collaboration development platform The doors are open for all the companies to participate and bring their own innovations into practise in Green Park to join the value networks, to offer new solutions for the development in material and energy efficiency, logistics, building automation, construction, ICT, internet of things, industrial automation etc
28 Conclusion - World is changing Major changes in international operating and business environment: Forest sector and utilization of forests have been in transition all the history Now: Transition from traditional fossil oil based economy to bioeconomy; transition from traditional forest industry to bio-economy based industry, forest biorefinaries, new uses of wood fibres, bio based fuels etc. Bias inside Europe agro-bioeconomy vs. forest-bioeconomy Competition between food and industrial use of agro-resources Wood is becoming strategically more and more important raw material. It offers a wide range of possibilities for products and solutions that meet the future needs
29 Conclusion - World is changing North Karelia have outstanding resources to become a pioneer in sustainable development and bio-economics driven by the forest cluster. Future in wood-based bio-products; fibre packages, biodiesel, composites, biopolymers, pharmaceuticals, cosmetics. Forest cluster of the future is not necessarily based on traditional forest industry companies The growth and development of the forest cluster will be generated by innovative people, companies and networks from many sectors. New needs and new business opportunities GREEN GROWTH IN JOENSUU
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