REGIONAL BUSINESS PLAN BIOBASED DELTA

REGIONAL BUSINESS PLAN BIOBASED DELTA

Colophon This report has been prepared in relation to the FP7 program Regions of Knowledge. SP4-Capacities Coordination and support action Coordination (or networking) actions FP7-REGIONS-2012-2013-1 Grant Agreement Number 319938 R4R Chemical Regions for Resource Efficiency, R4R: Improving research and cooperation in the areas of resource and energy efficiency in the Chemicals Industry This report forms the deliverable to: D2.6: Southwest-Netherlands regional business plan Contact person: Dennis van der Pas (regional coordinator), d.vanderpas@rewin.nl 1 Colophon

Executive Summary The ambition of the Biobased Delta is to become a top 3 European region in the biobased economy in the field of green feedstock, green building blocks and sustainable process industry. In the past few years the region has invested 400 million Euro in over 120 projects. The ambition of the region is to invest another 600 million Euro up tot 2020 in scaling the current projects and investments in the flagship initiatives. The Biobased Delta is involved in the FP7 project Chemical Regions for Resource Efficiency (R4R). Within the framework of the project, the Biobased Delta has to deliver a State of Play report and a nuts and bolds business plan for the region. The regional business plan is supportive to the State of Play report. During the execution of the project it appeared that the overall business strategy and the organizational development were already part of the State of Play analysis. Therefore, the regional business plan has put the emphasis on facility sharing, which proofed to be a difficult topic. During the interviews and focus group discussions 1 it became clear that although the Triple Helix partners are almost all very positive towards facility sharing, they do not (yet) have the same mindset on facility sharing. They use different definitions, have different motives for facility sharing and have different views on what can / can t be shared. These differences are the gateway to miscommunication and disagreements and therefore this report introduces some terminology and an approach for facility sharing. The goal of this introduction is to create transparency on facility sharing. During the desk research it became clear that there are only a few reports on facility sharing. We thankfully made use of a report from another European Region of Knowledge project BIOCLUS 2. The report of the Navarre cluster gave an excellent toolkit to implement facility sharing. The toolkit also makes clear that there will be an administrative burden for those that want to engage in facility sharing. Although it is a necessary evil it might scare away SMEs and industrial partners. The discussions with the focus group also led to the idea of defining a Virtual Campus Concept (VCC). The idea behind the VCC is that supply and demand for facility sharing can be meet each other. This concept could be fostered by the Biobased Delta organisation, however it will need supportive measures to keep the VCC up to date. The toolkit as provided by the BIOCLUS project could be used for implementing the VCC. The VCC will make facility sharing more accessible for SMEs and larger industrial partners, will enable the further engagement of the biobased business in the Biobased Delta and might possible support the organisational growth ambition (organisational pathway) of the Biobased Delta. 1 The topic of facility sharing has been discussed during the same interviews and focus group discussions that where used for the State of Play analysis. 2 Refer to: http://bioclus.eu/en/images/files/navarre/model_for_sharing_facilities/bioclus_cons ortium_level_sharing_facilities_task4_3.pdf 2 Executive Summary

As a first stepping stone for the VCC is would be logical to start the discussions on facility sharing between the different flagship initiatives. During the course of the project the first discussion started already between the Green Chemistry Campus and Nieuw Prinsenland. Investments, also in facilities, are foreseen at the various flagship initiatives. These investments could give young entrepreneurs also the opportunity to develop their innovations from lab scale research to pilot phase to production. However, these kind of investments are in the current economic situation very difficult to finance. The industry, together with EU, national and local governments, should invest in facilities that foster the growth of the biobased economy. Therefore, the region is actively involved in the BRIDGE PPP as this PPP will allow investments in facilities. The region strongly recommends that additional funds come available to (co-) fund the first mover disadvantage. 3 Executive Summary

Contents COLOPHON... 1 EXECUTIVE SUMMARY... 2 CONTENTS... 4 1 INTRODUCTION... 6 1.1 CHEMICAL REGIONS FOR RESOURCE EFFICIENCY... 6 1.2 OUTLINE OF THE REPORT... 6 2 BIOBASED DELTA... 8 2.1 INTRODUCTION... 8 2.2 AMBITION & DEVELOPMENT VISION... 8 2.3 CURRENT STRUCTURE OF THE BIOBASED DELTA... 9 2.3.1 Education & knowledge... 10 2.3.2 R&D and Business development... 10 2.3.3 Flagships... 10 2.3.4 Financial support... 11 2.3.5 Branding & communication... 12 2.4 REGIONAL SWOT... 12 2.5 ORGANIZATIONAL DEVELOPMENT BIOBASED DELTA... 13 2.5.1 Generic: Biobased Delta 1.0, 2.0 and 3.0... 13 3 CONCEPT OF FACILITY SHARING... 15 3.1 INTRODUCTION... 15 3.2 PERSPECTIVES ON FACILITY SHARING... 15 3.2.1 Definition of facilities... 15 3.2.2 Definition of and motives for facility sharing... 15 3.2.3 Different type of facilities... 17 3.2.4 Summary... 17 3.2.5 Conclusion... 18 3.3 CURRENT SITUATION... 18 3.3.1 SWOT overview... 19 3.3.2 Explanation to SWOT... 19 3.4 INTERVENTIONS... 20 4 FUTURE INVESTMENTS... 22 4.1 FLAGSHIPS INVESTMENTS... 22 4.1.1 Investment overview... 22 4.1.2 Note to the expected investments... 22 4.2 VIEW ON OTHER INITIATIVES... 22 5 VIRTUAL CAMPUS CONCEPT (TOWARDS IMPLEMENTATION)... 25 5.1 IMPLEMENTATION MODEL FOR FACILITY SHARING... 25 5.1.1 Motive: Inventory of facility sharing motives... 25 5.1.2 Supply: facilities & condition of use... 25 4 Contents

5.1.3 Demand: applicant s needs... 26 5.1.4 Contracting: Agreement model... 27 5.1.5 Central contact point (Virtual Campus Concept)... 28 6 THE WAY FORWARD... 29 6.1 CONCLUDING DISCUSSION... 29 ANNEXES... 30 ANNEX 1: LIST OF INTERVIEWED PEOPLE... 31 ANNEX 2: FOCUS GROUP COMPOSITION... 32 ANNEX 3. FLAGSHIPS BIOBASED DELTA... 33 ANNEX 4: CENTER FOR OPEN CHEMICAL INNOVATION... 34 INDEX... 35 LIST OF FIGURES... 35 LIST OF TABLES... 35 5 Contents

1 Introduction 1.1 Chemical Regions for Resource Efficiency In the project Chemical Regions for Resource Efficiency (R4R) six complementary European regions are working together to define a Joint Action Plan (JAP) for Resource Efficiency in the Chemical industry. The objective of R4R is to overcome European fragmentation of ambitious and innovative regions. This is to improve triple helix collaboration within and between some of the most process intensive European regions. To achieve the resource efficiency target by 2030, four major European ambitions are formulated. The first is a major CO2-footprint reduction up to 50%. The second ambition is a 10-fold increase in (bio)renewable raw materials as feedstock. The third is a 30% reduction in primary energy consumption and the forth is the reduction of 20% in raw materials net use. The R4R targets will increase the global competitiveness and new high-quality jobs through a sustainable European process industry. 3 Within the framework of the R4R project the region of Soutwest-Netherlands, further referred to as Biobased Delta, has to deliver a State of Play report and a Regional Business plan. The State of Play report and the Regional Business plan have been worked on in parallel to make efficient use of the time of interviewees and (a part of) the focus group (see annexes 1 & 2). In the interviews for the State of Play the topic of the Regional Business plan has been discussed. During the project we encountered significant overlap between the two reports. Despite the overlap both reports have been written in such a way that they can be read independently. The remainder of this document focusses on the Regional Business plan. In order to get the required information, the region has done the following activities to write this report: desk research on facility sharing; interviews with the industry; steering group discussions. 1.2 Outline of the report The R4R project has a Description of Work (DOW), based on this DOW the outline of the report will be made clear. As state in the DOW the regional business plan should give insight in the (foreseen) topics of: 1. Overall business strategy: the overall business strategy is defined in chapter 2 of this report. It gives insight in the way the Biobased Delta has organized itself and how the Biobased Delta envisions its growth path 2. Opportunities for facility sharing: the opportunities are described in chapter 4 of the report. During the research it became clear that terminology for facility sharing was still unclear. Therefore, chapter 3 will firstly discuss the concept of facility sharing. 3 Project description, Chemical Regions for Resource Efficiency, December 2012 6 Introduction

3. Operations plan: the operations plan is combined with the opportunities for facility sharing, so it is an integral part of chapter 4 4. Organisational development: the organisational development is an integral part of the business strategy which is discussed mainly in chapter 2 of this report. However, the Virtual Campus Concept is discussed in a separate chapter (5) 7 Introduction

2 Biobased Delta 2.1 Introduction The Biobased Delta is based on a Triple Helix corporation. The Biobased Delta encompasses the province of Zeeland and the western part of North-Brabant. In this region there are 31 municipalities, 55.000 companies and 1.1 million people. 4 It is located within 40 minutes from the two largest ports of Europe. The first one is Rotterdam and the second the harbor of Antwerp. In the Biobased Delta there is a strong and historic presence of the agriculturaland chemical industry. The largest important companies are: SABIC, Royal Cosun, Cargill, DOW, Lamb Weston Meijer. Figure 1: The Biobased Delta 2.2 Ambition & development vision The ambition of the Biobased Delta is to become a top 3 European region (2020) in the biobased economy 5 in the focus of Agro meets Chemistry within the key themes: 1. Green feedstock: better use of existing feedstock from land and water and using residual feedstock materials. Finding opportunities to increase the value of the current feedstock. Introducing new feedstock that possibly resolves current issues with food (food security), enable better unlocking of all valuable materials available in the feedstock. For land use this also involves topics like fertility of the land, water efficiency etc. 2. Green building blocks: replacing existing oil based components with biobased components and/or finding opportunities to use bio materials in new product market combinations. The focus is on chemical building blocks for performance materials, performance chemicals and coatings 3. Sustainable process industry: ensure linkages of industries based on residual streams (e.g. energy, heat, CO2), cleaner processes and use of new materials. This also includes use / production of bioenergy and biofuels. In the past few years the region has invested 400-600M Euro 6 in over 120 projects 7. The projects are identified further in chapter 5. Approximately 10% of the budget was 4 Statline.cbs.nl 5 Businessplan 2013-2016, Biobased Delta Zuidwest-Nederland, i.o.v. lobbygroep Biobased Delta, Middelburg/Bergen op Zoom, 31 december 2012 6 Excluding continuous (replacement) investments 8 Biobased Delta

related to R&D and business development, the other 90% was related to investments in new biobased products and bio processes. The ambition of the region is to invest another 600M Euro (up to 2020) in scaling the current projects and investments in the (regional) flagship initiatives. This will safeguard approximately 15.000 jobs in the agro and chemical sector in the region and will create at least an addition of 2.500 jobs. The region has installed a program consisting of five pillars. Results and successes are needed in all five pillars in order to safeguard the development of the region and the realisation of its ambition. 8 Educatio n & Knowledge R&D & Business development Flagships Financial support Branding & Communi -cation Figure 2: Five pillars of the development vision Biobased Delta 2.3 Current structure of the Biobased Delta From the start the Biobased Delta has been structured as a Triple Helix environment. Currently the Biobased Delta is being formally set up in a foundation (comparable to the Belgian AISBL). The Biobased Delta functions within the three main sectors of the Southwest-Netherlands region, being maintenance, logistics and biobased. Especially with respect to logistics there is an interesting possibility to achieve cross overs with this industry, as logistics will play an important role in the biobased economy (transport of feedstocks). A Strategic Board is active in the region with respect to the three main sectors. The Biobased Delta is responsible for the integral development of the biobased sector. For the integral development of the biobased sector the Biobased Delta has setup a structural development vision based on the five pillars introduced in the previous paragraph. All five pillars are explored in the remainder of this paragraph. 7 Businessplan 2013-2016, Biobased Delta Zuidwest-Nederland, i.o.v. lobbygroep Biobased Delta, Middelburg/Bergen op Zoom, 31 december 2012 8 Businessplan 2013-2016, Biobased Delta Zuidwest-Nederland, i.o.v. lobbygroep Biobased Delta, Middelburg/Bergen op Zoom, december 2012 9 Biobased Delta

2.3.1 Education & knowledge The region has organized the education and knowledge pillar around the various relevant Universities of Applied Science (HBO). Avans University of Applied Science (further referred to as Avans ) (also project partner in R4R) is in the lead as the Center of Expertise Bio Based Economy (referred to as CoE ) and links with the HZ University of Applied Science in Zeeland. From it responsibility as CoE Avans also links with the Center for Bio Based Economy at the Wageningen University (referred to as CBBE ). The CBBE is also the link to relevant universities. One of the notable points of the region is that it has no university inside its local borders that is actively involved. This report will explore more on this point in the detailed analysis. As a part of the CoE, Avans has two professors in the field of biobased economy (Biobased Products and Biobased Energy). Next to the two relevant Universities of Applied Science the region has two vocational education centers (ROC West-Brabant & ROC Scalda). These vocational education centers are to be included in the CoE approach of Avans. Next to these educational institutes the region has two remarkable knowledge centers, being Proefboerderij De Rusthoeve (experimentation farm De Rusthoeve) and the Bio Base Europe Training Center (referred to as BBETC ). De Rusthoeve is a farm that facilitates experiments with existing and new crops, harvesting, fertilization and pest control. Furthermore, it has a public information function as it welcomes scholars and farmers to disseminate knowledge. The BBETC is one of the linking pins towards Flanders. 2.3.2 R&D and Business development R&D and business development are the primary drivers of the further development of the Biobased Delta. In this pillar the companies will invest in longer term R&D and shorter term business development as this pillar will deliver new business in the field of the Green Feedstock and Green Building Blocks. A structural approach has been organized in which longer term R&D is related to a roadmap group and the shorter term business development to a separate group of people. In the roadmap discussions the target / platform molecules are defined, the feedstock and the processes to get from feedstock to target / platform molecules. The business development team is active in organizing matchmaking events, formation of small consortia and alignment of activities of the various stakeholders in the region. The primary focus of the business development team is to involve SMEs in the projects. Currently the region reaches approximately 90 SMEs directly. In the meantime the region has invested in strong relations with knowledge institutes like TNO and Wageningen University (WUR). The link with WUR is mostly on the green feedstock part and the link with TNO is mostly related to the Green Building Blocks. For example, the Biobased Delta is currently setting up a program on Bio Aromatics together with TNO and VITO. 2.3.3 Flagships The Biobased Delta has developed a network of flagships or hotspots (see annex 1). The hotspots are: Channel area Terneuzen / Biopark Terneuzen. Terneuzen is one of the industrial area s of Zeeland (as noted earlier). In the past years the companies in the 10 Biobased Delta

area have invested already a lot in sustainable processes and linkages between companies to exchange heat, CO2 etc. Furthermore, the area has invested already in cleantech, fermentation and algea. The BBETC is also located in Terneuzen. Sloe area Vlissingen (Flussing). In this area investments are being done in the field of algea and sea wheat refining. Furthermore, this area has, like Biopark Terneuzen, invested in sustainable process industry by exchanging residual flows between companies. Rusthoeve. Already earlier discussed in the paragraph of education & knowledge. De Rusthoeve is starting with a biobased garden in which they can focus on new green feedstock for biobased processes. Green Chemistry Campus Bergen op Zoom. This campus is located on the premises of SABIC Innovative Plastics and is one of three Centers for Open Chemical Innovation. The campus started in 2011. The campus is a safe haven and incubator where young entrepreneurs can grow their business from lab scale research to pilot phase to production. From an R&D point of view the campus focusses on bio-aromatics and functional molecules for performance materials, chemicals and coatings. Nieuw Prinsenland Dinteloord. In the proximity of the sugar factory a new Agro / food cluster is being set up. This area focusses on biorefinery from agro based residual flows (fibres, protein and chemicals like methane, ethanol and isobuthanol). The area has the support of the Cosun Food Technology Group in Roosendaal. Industrial zone Moerdijk. This area has invested in an extensive network for exchange of residual flows like CO2, water and heat. The area has a digester that makes bio-ethane from waste streams from restaurants. As already stipulated the area is surrounded by both Belgium and other parts of the Netherlands. The Biobased Delta is currently investing time and effort to liaise with Bio Base Europe in Ghent in Belgium and the area of Rotterdam. Both area s foresee in excellent pilot facilities like the Bio Base Europe Pilot Plant in Ghent and Plant1 in Rotterdam. Next to that, there is an obvious link to the developments in Delft and Chemelot. 2.3.4 Financial support The transition towards the biobased economy is a difficult transition. Investments are needed to get from research to full scale production. As already identified by the BRIDGE PPP 9 companies in the biobased economy face the valley of death that exists between R&D, scaling towards pilot and scaling towards full production. This is a burden that cannot be carried by a single company. This has also been realized by the two involved provinces in the Biobased Delta. Each province has set up its own scheme to support the transition towards the biobased economy. 9 Refer to www.bridge2030.eu, SIRA executive summary 11 Biobased Delta

Province of Zeeland Project fund (300K Euro) to kick start biobased developments. Investment fund and participation fund (broad scope, amongst other biobased) Voucher scheme for individual companies Table 1: financial means Biobased Delta Province of Brabant Biobased fund (10M Euro) focus on agro meets chemistry, proven technology, launching customer. Innovation fund (size under construction) 2.3.5 Branding & communication In 2011 and 2012 the Biobased Delta started as several individual projects. Via the Triple Helix partners the projects are now combined under one umbrella: Biobased Delta. The region has appointed a former business person to lead the Biobased Delta as director. The Biobased Delta will formally be organized in a Figure 1: Logo foundation. The exact structure is being defined at this very Biobased Delta moment. The agenda setting of the Biobased Delta is still being done via the Triple Helix partners. A steering committee is currently in place to guide the development of the region. More information on the Biobased Delta can be found on www.biobaseddelta.nl. 2.4 Regional SWOT In the State of Play report a regional SWOT has been prepared that highlights the Biobased Delta. For completeness sake this SWOT is also included in the report, however for further understanding of the SWOT and how it has been compiled reference is made to the State of Play report for Southwest-Netherlands. 12 Biobased Delta

Figure 2: SOWT Biobased Delta 2.5 Organizational development Biobased Delta 2.5.1 Generic: Biobased Delta 1.0, 2.0 and 3.0 Biobased Delta 1.0 represents is the current structure of the Biobased Delta as laid down in chapter 4. The Biobased Delta needs to put up a structural way of organizing the implementation and monitoring of the business plans. The current structure is sufficient for the time being, but does not yet accommodate growth. The region will need to define a way to allow facility sharing in an Open Innovation setting. By allowing facility sharing less investments are needed and it will enable cross sectorial innovation. Facility sharing is explored in a separate report from the region. Biobased Delta 2.0: Just outside of the Biobased Delta two magnificent other regions are available. To the north the co-operation with the province of South Holland is relevant. Currently the Biobased Delta is working on a joint program with the province of South Holland. To the south there is Flanders. This Belgium based region also has a strong chemical sector, agriculture and a lot of plastic based companies. Furthermore, it is the home of Bio Base Europe a cross-border initiative between Flanders and Zeeland. Currently the Biobased Delta is on speaking terms with both regions. Cooperation between these regions is needed to enlarge the regional power and to establish a home for Europe s biobased ambitions. The focus of the region will stay: Agro-meets-chemistry Biobased Delta 3.0: The large Biobased Delta comprising the area from Delft (NL, Be- Basic) to North Rheine Westphalia (D) to Picardie (F) and the French coasts. This delta 13 Biobased Delta

contains approximately 80% of Europe s chemical sector and has a strong agricultural sector. An area on this scale could be of world class excellence, contributing to inclusive green growth in optima forma. This is the current structure of the Biobased Delta presented in the first paragraph of this chapter. The Biobased Delta needs to be formally organised in a legal entity in order to allow participation in Public Private Partnerships. The Biobased Delta needs to entangle with the Strategic Board of the region, so the Biobased Delta evolves together with the other two main industries, being maintenance and logistics. The Biobased Delta also needs to put up a structural way of organising the implementation and monitoring the business plans. The current structure is sufficient for the time being, but does not yet accommodate growth. Finally, the region needs to define a way to allow facility sharing in an Open Innovation setting. By allowing facility sharing less investments are needed and it will enable cross sectoral innovation. 14 Biobased Delta

3 Concept of facility sharing 3.1 Introduction In the Biobased Delta the discussions on facility sharing have already been started. However, it should be noted that facility sharing has different perspectives. It is important to understand these perspectives before facility sharing can be implemented. Therefore, the first paragraph will discuss these different perspectives. Next a SWOT will be presented for facility sharing and the interventions are defined. 3.2 Perspectives on facility sharing 3.2.1 Definition of facilities According to Jan Reghterschot (1988) 10 facilities can be classified into three groups: 1. accommodation / housing: is the building itself including all their buildingrelated installations; 2. services: can be related to the facilities which are associated with the building like: office spaces, maintenance, cleaning, catering, security, and so on; 3. resources: are the facilities for the performance of the activities, like apparatuses, office furniture, ICT and so on. When discussing facility sharing with others it is important to understand the different kind of facilities within the scope of facility sharing. 3.2.2 Definition of and motives for facility sharing Next to the different interpretations of facilities there are also two definitions for facility sharing: 1. Narrow sense: this means the use of existing research and test facilities from organisations such as entrepreneurs and research institutions against an adequate payment for the facilities. The primary motive for facility sharing in the narrow sense is to obtain efficiency benefits and thus cost reductions. 2. Broad sense: this means that users could use the whole (knowledge) infrastructure in an organisation. Besides sharing facilities, the expertise of the employees and other services of the facility owner could be used. The motives for facility sharing in the broad sense are knowledge exchange and profiling a certain social function. As is clear from the descriptions above, companies can have different motives to engage in facility sharing. It is important to understand the company motives in order to understand why they act in a certain way with respect to facility sharing. Figure 5 stipulates the different motives companies can have to engage in facility sharing 11 10 De mogelijkheden voor facility sharing, Brink Groep, september 2004 11 De mogelijkheden voor facility sharing, Brink Groep, september 2004 15 Concept of facility sharing

Figure 5: Intensity of motives 3.2.2.1 Financial-economics or efficiency motive The main goal for the facility owner is cost reduction, because machines are not 100% operated. The advantage of providing rest capacity to others is to utilize the machines more efficient. Besides providing machines, the availability of office spaces, demo facilities, etc. against a adequate payment is also part of this motive. 3.2.2.2 Knowledge exchange The goal of this motive is to exchange knowledge with other organisations. Based on an interview of the University of Avans with Nuplex Resins, the following example is given: Nuplex wants to cooperate with other companies to develop their knowledge in the field of green feedstock. Currently, they are working together with the University of Avans. Universities wants to strengthen the cooperation with the business. 12 3.2.2.3 Social function The third motive of facility sharing is to profile a certain social function. The main goal of this motive is to transfer knowledge to, and to exchange knowledge between companies. The main goal is that the region will be further developed. 12 Facility sharing, AMBM Minor Innovatief Ondernemen, Avans Hogeschool Breda, januari 2013 16 Concept of facility sharing

3.2.3 Different type of facilities Finally, facilities can also be grouped into different type of facilities. There are different types of facilities. In a the scientific study 13 of Brink Group, two types of facilities are mentioned: specific facilities; generic facilities. Specific facilities have a unique character and belong directly to the primary process of the facility owner. Generic facilities are less unique and have a more supporting role towards the primary process. 3.2.4 Summary Although the report of Brink Group is very extensive on defining the different perspectives on facility sharing, the report lacks to combine the different perspectives on facility sharing. In the view of the authors of this business plan, the different perspectives can be combined into the following (simplified) picture. Figure 6: Different perspectives on facility sharing The intention of the picture is to be a helpful tool to pinpoint an organisation that wants to engage in facility sharing and to manage expectations. The tool has not been tested in practice yet. The picture can be explained as follows: 13 De mogelijkheden voor facility sharing, Brink Groep, september 2004 17 Concept of facility sharing

First, companies will need to identify their motives to engage in facility sharing. They will need to define a clear vision on facility sharing. Based on their motives it can be determined how a company will participate in a facility sharing setting (according to the narrow sense or broad sense). It also determines what can be expected of this company (management of expectations). After the motive has been determined one should look at the type of facilities (generic / specific) a company wants to contribute in the facility sharing network. Based on this identification it can predicted what a company can or is willing to contribute. A company that participates based on an efficiency motive and is only willing to contribute generic facilities contributes less accommodation / services / resources than a company that participates based on the knowledge motive. The underlying assumption behind the picture is that specific facilities can only be shared if a company is also willing to share generic facilities (e.g. a company that is willing to share a lab, is also willing to share parking spaces, entrance, corridors and so on). It is expected that issues like Intellectual Property discussions are earlier on the table under the efficiency motive than under the social motive. It should be made clear that the IP discussion will always (need to) take place. An effective Open innovation model, as discussed in the State of Play report, could support companies in addressing IP issues at the right moment in time. Next to that it is also expected that in the case of the efficiency motive the fee for using the shared facilities will be higher as under the social motive. In the social motive institutions are (expectedly) more willing to accept a lower fee, because they are also enabled to learn from the other party that is using their facilities. It is strongly advised to have further research on the topic of facility sharing and the way it can be implemented. So, although facility sharing sounds like a simple exercise, it needs to be clear that it will take considerable effort to get into a setting that can facilitate facility sharing. Next to the different perspective, companies should also look at some additional points of attention. 3.2.5 Conclusion In order to avoid misunderstandings and/or a mismatch in expectations it is important that companies make clear why they are engaging in facility sharing, what there motive(s) is (are, in what sense (narrow or broad) they would like to work and what type of facilities they would like to share. It is also important to note that motives, sense and type of facilities can change over time, so these aspects need to be monitored on a regular basis. 3.3 Current situation In order to understand the current situation a SWOT has been prepared on facility sharing. 18 Concept of facility sharing

3.3.1 SWOT overview Figure 3: SWOT facility sharing 3.3.2 Explanation to SWOT 3.3.2.1 Strengths The Biobased Delta has a strong triple Helix network. Together they have formulated the ambition and strategy in de biobased economy. The strength is that the region could use this existing network to introduce facility sharing more easily. Furthermore the joint business plan already identifies some of the future investments in the flagships that could be relevant for facility sharing. Currently already some discussions are ongoing for facility sharing and that almost all interviewees have a positive attitude towards facility sharing. All interviewees see the upside and opportunities of facility sharing. The flagships could become the starting point for the implementation of facility sharing. As a first test they could start by joining the facility sharing network. This will then create a sufficient platform which can then be further explored and grow. Such a platform is interesting for SMEs as they will not have to invest in expensive analytical equipment. This will allow SMEs to overcome (part of) the valley of death. Finally, such a platform will also stimulate the cooperation between companies as they will have liaise more often with each other and the network. 3.3.2.2 Weaknesses A weakness in the Biobased Delta is that there is not yet a common understanding of facility sharing. There were different discussions in the focus group about the definition and motives of facility sharing. Therefore, the risk is at hand that expectations do not 19 Concept of facility sharing

match and as such will result in disagreements and misunderstandings. This will hamper the joint developments and trust. The possible administrative workload is a weakness in the field of facility sharing. These extra workload could discourage companies, because additional administration is most of the times not part of business as usual. Finally the region has not yet a central point that could coordinate facility sharing and that could ensure up to date information (both supply and demand side). In comparison with the development of other projects in the Biobased Delta there is always someone responsible for a project. For facility sharing this responsible person is not (yet) available. 3.3.2.3 Opportunities In an economic downturn, cost reductions are always welcome. This could be an opportunity for facility sharing, as facility sharing gives companies the possibility to also share some of the costs of the facilities. And on the other side: companies that want to make use of facilities, can delay their investments a bit longer. Another opportunity is the BRIDGE program. BRIDGE wants to develop the biobased economy through research and innovation and through upgrading and building shared facility / demo plants. As funds are scarcely available for these kind of investments, the BRIDGE program is very welcome. Finally, amongst others via the BRIDGE program and via the organisational pathway, the Biobased Delta comes into contact with other regions (in and outside the Netherlands). Investments done already in other regions can be avoided in the Biobased Delta. For example, Bio base Europe has a pilot plant available, because of this the regions investments in such a facility can be very limited (if at all). Cooperation with other regions also stimulates the future developments of the region from Biobased Delta 2.0 to Biobased Delta 3.0. 3.3.2.4 Threats The governmental policy not always proofs to be inconsistent on the longer term. This is also the case for the biobased economy. As a consequence companies are reluctant to invest in new facilities. As a consequence of that less facilities come available. Although this should stimulate facility sharing, it is experienced more as a threat. Finally the region has noticed that in neighbouring regions higher investments have already been done in facilities for the biobased economy. If the region is not careful it will fall behind too far. 3.4 Interventions 3.4.1.1 A clear vision concerning facility sharing As stated in the previous paragraph, companies should stipulate a clear vision on facility sharing. Some relevant questions for organisations are: what is the added value of facility sharing for my organisation? and for what purpose/motive my organisation is participating in facility sharing? It is also important to know what kind of facilities the facility owner has to offer. 20 Concept of facility sharing

3.4.1.2 Clear contractual terms It is important to formulate respected contracts with clear conditions before sharing facilities. These terms includes house rules, responsibilities, secrecy, IP, etc. This is very important related to specific facilities with great financial risks, advanced (and potentially dangerous) technologies, sensitivity of information and patent rights on new developments. And, as already stated in the previous chapter the region needs to define a way to allow facility sharing in an Open Innovation setting. Further experimentation on Open Innovation is desirable. 3.4.1.3 Support of employees in the organisation It should be clear for companies that, especially with specific facilities, that it is not only equipment that will be shared, but also people (employees). For organisations with the knowledge exchange and social function motive this is probably the reason to participate. Companies should identify upfront how they want to participate. In that way they can also explain why own employees have to be present when a user is using the facilities. In some cases there is even no other choice to have own employees involved. In cases where the offered facilities are too complex for the users to use unaccompanied, because of quality, safety and/or efficiency considerations. 3.4.1.4 Increase the transparency of the market In the current situation there is more need in the transparency of supply and demand of existing facilities. Currently it is unclear who owns which facilities and who is willing to share under which conditions. In order to bring supply and demand together the region will have to invest in making the market more transparent. A possible solution could be to use the Biobased Delta website to create a Virtual Campus Concept. Before entering the Virtual Campus Concept the current foreseen investments in the flagships will be explored. This will also give insight in the possibility of facility sharing with these flagships. A description of a Virtual Campus Concept will then follow in chapter 5. 21 Concept of facility sharing

4 Future investments 4.1 Flagships investments To achieve the ambition described in chapter 2 there are investments needed in the Biobased Delta on the 3 key themes, Green feedstock, Green building blocks and Sustainable process industry. These investments will give the biobased economy a boost in the region. The six top locations are the hotspots where most investments are planned. 4.1.1 Investment overview The business plan of the Biobased Delta indicates that the region is aiming to invest more than 600 million Euro in the upcoming period to 2020. Tables 2 and 3 show the investments in the projects and the flagships. In both flagships and projects, investments will be done in facilities and these facilities will most probably also be relevant for facility sharing. It is expected that two-thirds of the investments will be financed by companies and regional partners. 4.1.2 Note to the expected investments These investments cover a large range of costs e.g. cost of materials, cost of employees, but they also cover costs for equipment. For equipment it is relevant to determine if they could be part of the facility sharing framework of the Biobased Delta. As is clear from the SWOT analysis on facility sharing it is important to recognize how other regions are developing. Therefore the next paragraph will briefly explore some other regions as well. 4.2 View on other initiatives Besides the flagships of the Biobased Delta there are multiple other initiatives just around the corner. In view of the foreseen organisational growth it is relevant to explore these initiatives as well. For facility sharing it is relevant to understand the goal of the initiative as well as what kind of facilities are available. Recently the Dutch government (AgentschapNL) provided a useful overview 14 of the most important developments in The Netherlands and closely to the borders of The Netherlands. 14 Centra voor open biobased innovaties, Agentschap NL, april 2013 22 Future investments

Name Place Goal Facilities ACRESS (Application Centre for Renewable Resources) Bioprocess Pilot Facility Bio Europe Plant Green Chemistry Campus Base Pilot Zentrum Bioraffinerie Lelystad Practice centre for sustainable energy and feedstock. Delft Gent (Belgium) Bergen Zoom op Oberhausen (Germany) Multi-purpose facility of R&D- and pilot investigation. Concerning a scale-up from lab to commercial. Multi-purpose facility of R&D- and pilot investigation focused on scale-up biotechnological processes. of Campus on the site of Sabic to attract business around green building blocks for performance materials, performance chemicals and coatings Applied and pilot investigation, application investigation. AlgaePARC Bennekom Development of knowledge, technologies and process strategy for algae production for the purpose of fuels, chemicals, food and feed. GHEMaterials Geleen Campus on the site of Campus Sabic and DSM to attract business relating to performance chemicals and materials. Land and space for companies for the purpose of test- and pilot facilities. A cooperation with Eneco, province of Flevoland and the community of Lelystad. Modular equipment for biomass pre-treatment, fermentation, recycling and purification. Red process hall: storage and pre-treatment. Green process hall: equipment for solventbased bioprocesses. White process hall: waterbased bioprocesses. Open innovation campus with the possibility to use the utilities and services of Sabic. Also lab facilities and advisory services relating to patents, finances, legal matters. Goals are to attract new companies and collaborate trough open innovation. Open innovation centre: materials & coatings, biofuels and valorisation of lignocellulosic biomass. Seven photobioreactors: raceway pond, horizontal tubular photobioreactor, vertically stacked horizontal photobioreactor and flat panels. Open innovation campus with the possibility to use the utilities and services of Chemelot. Also lab facilities and advisory services relating to patents, finances, legal matters. Goals are to attract new companies and collaborate trough open innovation. Pilot plant under construction. 23 Future investments

Biorefinery Campus Renkum Renkum Combination of paper production and open innovation biorefinery campus. Plant One Rotterdam Test facility for sustainable process technology. Open innovation campus with the possibility to use the utilities and services: harbour, energy, steam, mineral water, organic waste, buildings, security and permits. Cooperation with WUR. Capacity for demonstration facilities: laboratory, utilities (water, steam, energy, compressed air, water treatment plant, environmental, fire services and safety plan. Table 2: overview of biobased initiatives In the above table three existing COCIs are included. A COCI is a Centre for Open Chemical Innovation. COCI is a status awared by the regiegroep chemie and is a promising initiative in the field of chemicals and materials to stimulate small business. Via COCIs support to SMEs is given by offering them facilities like: lab spaces, services, infrastructure and advice. This will stimulate the chance of success. The COCI concept is included in the annexes. 24 Future investments

5 Virtual Campus Concept (towards implementation) As made clear in the SWOT on facility sharing (see paragraph 3.4) one of the weaknesses of the Biobased Delta is that it does not (yet) have a central point for facility sharing. As a consequence supply and demand for facility sharing will not get together. The market is not transparent enough to implement facility sharing successfully. During the focus group discussions the concept of a Virtual Campus was launched. Although not further explored during the focus group discussion, the idea of the Virtual Campus Concept was born. Via this concept it is expected that the weakness can be concurred and maybe even become one of the strengths of the region. The next paragraph can be used as an implementation model. The actual implementation goes beyond the objectives of this report. 5.1 Implementation model for facility sharing In this paragraph an implementation model will be defined to share facilities in the Biobased Delta. Therefore, also some of the insights gained in the SWOT analysis will be used as well. Figure 4: possible implementation model facility sharing 5.1.1 Motive: Inventory of facility sharing motives Before allowing partners in the facility sharing network, their motives need to be identified and need to be made explicit. This motives are important to understand the behaviour of the partner and possibly also the conditions to use the facilities. The motive has to be available also to the potential facility user. 5.1.2 Supply: facilities & condition of use Once the motive has been identified the partner can indicate the facilities that it want to share via the facility sharing network. Partners should be able to add and remove facilities during their connection to the facility sharing network. The Bioclus project 15 already provided a kind of form that can be used to identify the facility. The 15 Bioclus, developing research and innovation environment in the field of sustainable use of biomass resources, June 2012 25 Virtual Campus Concept (towards implementation)

form however lacks to state the motive of the facility owner to participate in the network. This information is essential for potential users so they can better understand the behaviour of the facility owner (and might even reconsider using the facility). Facility information sheet Name of the facility Address Name of contact person Telephone number E-mail Description of the facility The motive(s) of the facility owner Main research topics of the facility Special features of the facility Techniques and application Standard(s) used for measurements Selected R&D references Other information (IP, employees, fee indication, ) Figure 5: description form for a facility After the general information of the facility, a detailed description about the facility has to be provided. This information will be more related to the parameters related to the facility, like: amounts, sizes, capacity, etc. 5.1.3 Demand: applicant s needs The potential user (applicant) also needs to identify is needs. The Bioclus project also identifies a survey for applicant to fill in. The goal of the survey is to strengthen the efficient use of the facility. This information will be useful for the facility owner and will allow better cooperation and sharing. The survey form the Bioclus project can be used to a large extend (some modification relevant for Biobased Delta projects). Applicants survey Company name Address Name of contact person Telphone number E-mail Key theme(s) Green feedstock Green building blocks Sustainable process industry 26 Virtual Campus Concept (towards implementation)

Further details on key theme Website of the company Number of employees What kind of techniques do you use? Are these techniques an occasional or a regular need? What kind of techniques do you need? For what do you need these techniques? Does you need training regarding to the techniques? Does you have other needs regarding R&D-activities? Does your organisation have registered patents? If no, would your organisation consider patenting in the future? Yes please explain No Yes please explain No Yes please explain No Yes please explain No Figure 6: Applicants survey 5.1.4 Contracting: Agreement model An agreement model has to be signed by facility owner and user for future cooperation in the field of facility sharing. In this paragraph an example of issues are given to consider in the agreements. First, appointments of the specification of the facility use has to be made like: the concerning shared facilities; the agreement period; the availability of the equipment; the money transfers between the companies. Second, the services and materials have to be identified related to facility use. The agreement model should take into account the maintenance, cleaning, electricity use, water use, etc. of the facilities. Thirdly, appointments of the responsibilities related to the use of the facilities has to be made clear. This means that some people will be assigned for the responsibility for the 27 Virtual Campus Concept (towards implementation)

use of: the machine, the safety on the work floor, the maintenance of the facility, the insurances, etc. 16 5.1.5 Central contact point (Virtual Campus Concept) The Biobased Delta already has a functional website. It is recommended that the central contact point is the website of the Biobased Delta (see figure 7 for an example). Via this website interested companies (both in supply and demand) can get access to the more detailed information. Possibly a contribution fee has to be paid. This fee can then be used to keep the website up to date, but the fee is also a filter to eliminate the curious from the interested parties. Figure 7: possible solution www.biobaseddelta.nl One of the features that is currently already embedded in the Biobased Delta website is the possibility to create a google map that shows involved partners. The advantage of this concept is that this is a first step to make contact between companies. 16 Bioclus, developing research and innovation environment in the field of sustainable use of biomass resources, june 2012 28 Virtual Campus Concept (towards implementation)

6 The way forward 6.1 Concluding discussion The ambition of the Biobased Delta is to become a top 3 European region in the biobased economy in the field of green feedstock, green building blocks and sustainable process industry. In the past few years the region has invested 400 million Euro in over 120 projects. The ambition of the region is to invest another 600 million Euro up to 2020 in the current projects and flagship initiatives. The Biobased Delta is a strong network of triple helix partners. As became clear from the interviews and discussion with the focus group the partners have a positive attitude towards facility sharing. However, the various partners are not yet speaking the same language. Based on the desk research it can be concluded that it is of utmost importance to identify and make explicit the motive of a company to enter into facility sharing. For the implementation of facility sharing the Biobased Delta can gratefully use the hard work of the Bioclus 17 project. This project has identified a toolset for making clear what kind of facilities are shared and what partners potentially want to use the facilities (and for what). Although this toolset will require some additional administrative workload it is also considered as a necessary evil. The information from supply and demand can be made available on the website of the Biobased Delta. The availability of information on supply and demand will make the Biobased Delta a strong partner in (inter)national cooperation projects. These (inter)national projects are needed to further strengthen the position of the Biobased Delta and to foster the flagship initiatives. Within these flagship various investments have been identified. Some of these investments will be relevant for facility sharing. Facility sharing will (also) allow SMEs to grow their business beyond the valley of death. By using facilities of partners they can invest solely in strategic assets. This will make available cash that is needed to grow the business. Although the foreseen investments will be financed to a large extend by the business additional funds will be required. Companies will not invest in facilities pure for the sake of facility sharing. Additional governmental funds that can be used for cofounding in facilities will ensure that companies are willing to open up for facility sharing. Therefore the Biobased Delta strongly wants to emphasize that these kinds of funds need to be made available, not only for the Biobased Delta but for the Biobased Economy as a whole (like BRIDGE). 17 http://www.bioclus.eu/en/ 29 The way forward

Annexes 30 Annexes

Annex 1: List of interviewed people Name Organization Sector A. de Laat Royal Cosun Private J. de Boer SABIC Private E. Engelen AgentschapNL Public M. Nelle Dutch Ministery of Economic Affairs Public W. Sederel Biobased Delta PPP G. Spork DOW Benelux Private T. vd Abeelen Cargill Private D. Lemmens Municipality Bergen op Zoom Public F. van den Heuvel NV REWIN West-Brabant Public F. van Noord SuikerUnie Private W. Maaskant Province North-Brabant Public L. Joore Millvision Private (SME) P. Woets Province Zeeland Public P. Peters / D. Dijk Rabobank Private C. van Rij LambWeston Private R. Clements ZLTO Public G. Gunter Yara Private G. van der Schelde Rusthoeve Public P. Bijkerk Impuls Zeeland Public P. Gosselink Brabantse Ontwikkelings Maatschappij Public J. van Haveren WUR University J. Sanders WUR University A. Koops WUR University W. den Ouden Avans Education 31 Annexes

Annex 2: Focus group composition A part of the focus group for the State of Play analysis has been involved in the facility sharing discussions Name Organization Sector A. de Laat Royal Cosun Private J. de Boer SABIC Private W. Sederel Biobased Delta PPP G. Spork DOW Benelux Private P. Peters Rabobank Private C. van Rij Lamb Weston Meijer Private P. Bijkerk Impuls Zeeland Public H. van Osch Avans Education 32 Annexes

Annex 3. Flagships Biobased Delta 33 Annexes

Annex 4: Center for Open Chemical Innovation Centers for Open Chemical Innovation (COCI) are one of the actions of the Regiegroep Chemie in The Netherlands. The idea behind the COCIs is that innovative companies in the field of chemistry can explore and test their business ideas. These companies can make use of the facilities, services and expertise of the other companies in the COCI. In view of facility sharing the COCI should have the social motive as starting point for facility sharing. Figure 8: Actions Regiegroep Chemie 34 Annexes

Index List of figures FIGURE 1: LOGO BIOBASED DELTA... 12 FIGURE 2: SOWT BIOBASED DELTA... 13 FIGURE 3: SWOT FACILITY SHARING... 19 FIGURE 4: POSSIBLE IMPLEMENTATION MODEL FACILITY SHARING... 25 FIGURE 5: DESCRIPTION FORM FOR A FACILITY... 26 FIGURE 6: APPLICANTS SURVEY... 27 FIGURE 7: POSSIBLE SOLUTION WWW.BIOBASEDDELTA.NL... 28 FIGURE 8: ACTIONS REGIEGROEP CHEMIE... 34 List of tables TABLE 1: FINANCIAL MEANS BIOBASED DELTA... 12 TABLE 2: OVERVIEW OF BIOBASED INITIATIVES... 24 35 Index