Murray McLaughlin Sustainable Chemistry Alliance Nova Scotia Energy R and D Forum, May 16 17, 2012

Transcription

1 Murray McLaughlin Sustainable Chemistry Alliance Nova Scotia Energy R and D Forum, May 16 17, 2012

2 Outline Bio economy Change Strategy/Vision Innovation Issues and Policy Sarnia example Opportunities Summary

3 BIOECONOMY BIOECONOMY is an all embracing term that covers the sustainable production and conversion of biomass such as waste from sugarcane, forestry, canola, and wheat, to a range of food, health, fibre and industrial products and energy. The sustainable use of biomass is becoming increasingly important as the world deals with the challenges of security of food, water and energy supply, the needs to reduce emissions and an unsustainable use of resources

4 A LANDSCAPE OF CONSTANT CHANGE The ability to learn faster than the competition is often the only sustainable competitive advantage a company (or community) can have. Arie de Geus

5 HOT, FLAT AND CROWDED FRIEDMAN makes it clear in his book that the green revolution we need is like no revolution the world has seen. It will be the biggest innovation project in North American history. It will change everything from what we put in our car to what we see on our electric bill. In just a few years it will be to late to fix things, we need to step up and take the lead in a worldwide effort to replace our wasteful, inefficient energy practises with a strategy for clean energy, energy efficiency and conservation. Thomas Friedman

6 Global issues Hong Kong traffic World leadership who?

7 World Population Growth

8 STRATEGY Enables individuals to work toward a common goal Focuses Resources Promotes depth of knowledge and understanding of markets and technological developments Helps make investment decisions Encourages to be externally oriented

9 A VISION FOR AGRICULTURE 2004 In the year 2015 Canada is a world leader in the enhancement of human, animal and environmental health through the application of research, technology, and social innovations in agriculture and the bioscience industry. As a solution provider to society, we reduce the burgeoning health deficit, improve quality of life, and embrace environmental sustainability. We are the trusted standard against which others measure themselves.

10 A VISION FOR AGRICULTURE A Fundamental pillar for a Healthy Canada

11 Culture of Innovation Innovation is an environment, a culture almost spiritual force that exist in an organization and drives value creation. Buckler

12 INNOVATION IS THE PRIMARY DRIVER OF GROWTH, PROSPERITY, AND QUALITY OF LIFE PAUL ROMER, STANFORD UNIV

13 BARRIERS TO INNOVATION Self imposed barriers i.e. silos Accepting one correct answer Failing to challenge the obvious Fear of looking foolish Language has an impact. Exclude: It costs to much. It can t be done. yes, but... We have tried this before... We have never done things like that. I have hear all of these terms when discussing green and sustainable technology

14 NORMS PROMOTING INNOVATION Emphasis on results No to obsession with precision Anxiety about timelines Value getting things done/cut through bureaucracy Challenge status quo Acceptance of mistakes Expectation that innovation is simply part of one s job Allow discussion of dumb ideas Strategic drive/external focus

15 RESOURCES Proper resourcing of innovative efforts has the highest impact on the probability of success. (Best Practices Survey)

16 CULTURE CULTURE: a pattern of behaviour accepted as a way of solving problems Cultural traits link to cultural effectiveness and set the stage for innovation: involvement, consistency, adaptability and a sense of mission or long term vision.

17 New Opportunities New Opportunities are emerging from innovations in science and technology, emerging water and carbon markets, more productive crop varieties, and a growing demand for clean and green products.

18 ISSUES OF THE DAY DEMOGRAPHICS PERCEPTION OF AGRICULTURE REGULATORY ISSUES ECONOMICS HEALTH ENVIRONMENT/ CLIMATE CHANGE

19 Issues with Commercialization Where we need better policies Regulations Financing Time Support programs Research and Development Attraction of technologies need to be creative

20 Sustainable Chemistry Alliance and Bioindustrial Innovation Centre Sarnia, Ontario

21 Creating a Bio Hybrid Chemical Cluster Allowing Canada to establish the value chain Fossil-based Feedstock Refiner Primary chemicals Polymers & Chemicals Finished products Manufacturing & Assembly End user Bio-based Feedstock Biomass processing

22 H C Biomass Bio Chemical Plant

23 A Bio Hybrid Chemical Cluster in Sarnia What could it look like? Canada s existing Chemical industry in Sarnia forms the foundation for the Cluster with: access to energy, skilled labour and highly qualified personnel pipelines for raw materials and finished products rail, road and water transportation options available ready access to North American markets Ontario s farmers and foresters harvest and provide the biomass needed Available Brownfield land developed into biochemical businesses such as: primary chemicals from bio based sources (isobutene, succinic acid, levulinic acid) polymers, advanced chemicals/fuels and materials biomass production from local CO 2 sources for use as fuels and chemical feedstock energy generation from biomass BC

24 Sarnia BioHybrid Cluster Companies Fossil Based Air Products BP Energy CF Industries DuPont Ethyl Corporation Exxon Mobil INEOS LANXESS NOVA Chemicals Ontario Power Generation Pembina Praxair Royal Dutch Shell Suncor Energy TransAlta Energy Bio/Renewable Based Azule Fuel Agris Coop BioAmber Cargill Greenfield Ethanol Methes Energy KmX Solutions4CO2 Suncor Ethanol Woodland Biofuels 80% of Ontario soybeans and corn within 200km 24

25 Strategic Advantage of the Sarnia Chemical Cluster Ready access to North American Markets Key benefits of area: Just in time Delivery everyday reality Industrial Heartland of North America 52% USA GDP within 10 hours trucking Secure Raw Materials through excellent logistics options Availability of highly skilled labour and personnel Excellent cooperation within region between companies, government and labour

26 SCA:Our Investments in Sustainable Chemistry $500+ M expected followon investment for full commercialization or IPO $135 Million Matching $5.5 M Seed $100 million IPO by EcoSynthetix 2 more IPO in 2012 (S4CO2 and BioAmber) 3 more IPO s expected within next two years (Vive, CORE BioFuel, Woodland) Providing connectivity to deliver commercialization project execution! 26

27 Sustainability, Job Creation and Retention +600 Construction Jobs Indirect Jobs 200 Full Time Jobs Total Jobs Adding value to renewable agriculture and forestry Converting and lowering GHG s Converting recycled waste to higher value 3 commercial demo plants 2 more plants in major $80 M biobased plant 27

28 A Balanced Sustainable Chemistry Portfolio Focused on Execution and Delivering Commercialization 28

29 Connectivity to Accelerate Commercialization Finance Government Business and Technical Services Forestry Energy Industry Invested Companies BioHybrid Clusters Prospective Investments Not for Profit Agriculture R & D Sustainable Chemistry Alliance 29

30 Loretta Lynn Advice from a Country Singer You either have to be first, best or different

31 SUMMARY OPPORTUNITIES We are in a world of CHANGE, rapid Change, which provides us with a tremendous opportunity as a nation to be global leaders The Opportunities: 1. An opportunity to demonstrate global leadership in bio based and sustainable industries with use of speciality crops and biomass. 2. An opportunity to integrate the fossil based, non fossil and biogenetic crop industries by encouraging hybrid development. 3. An opportunity to create a national sustainability vision and strategy to add value to regional and Canadian resources What it will take is Policy Change that establishes leadership rather than followers We need to be FIRST to be leaders 31

32 Questions CHANGE IS THE ONLY CONSTANT WE CAN; Stay in the dark and assume everything is fine Stretch our neck to see what is out in front and adjust appropriately