Global trends in the bioeconomy

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NNFCC: The Bioeconomy Consultants

Global Trends in the Bioeconomy:

An introduction to the Interreg Bio Base NWE Project

Dr Adrian Higson

Trondheim, Norway

21st March 2013

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The Bioeconomy

The aggregate set of economic operations in a society that use the

latent value incumbent in biological products and processes to capture

new growth and welfare benefits for citizens and nations. (OECD)

Biological tools Biomass

Biotechnology Bio-based

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Biomassprovision

Biomass trading

Biomassrefining

Fuel production

Fuel blend & retail

Chemical production

Chemicalindustry

Biomass power &

Chemical usingindustry

Retailers

Pharmaceutical industry

Food ingredients

Food industry

Retailers

Food & Feed industry

Feed ingredients

Feed industry

Bioeconomy value chains

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Company Vision

We view bio-based technologies as key

components of the low carbon economy

delivering economic, social and environmental

benefits.

We believe the bioeconomy will create

sustainable business opportunities for

feedstock suppliers, technology and project

developers, manufacturers and investors.

A specialist ‘not for profit’ Bioeconomy consultancy

Company Mission

To provide clients with a holistic view of feedstock, technology, policy and market

development across the bioeconomy, enabling them to make informed business

decisions and develop sustainable business strategies.

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Services

• Future market analysis

• Feedstock logistics planning

• Sustainability strategy development

• Technology evaluation and due

diligence

• Project feasibility assessment

• Policy and regulatory support

• Network & Facilitation

Clients & Partners

• Multinationals & SMEs

• Public Organisations

• Government

• Research Institutes

• Universities

• Transnational Collaborations

• European Framework

Projects

10 years supporting Bioeconomy development

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EU Context

It includes agriculture, forestry, fisheries, food and pulp and paper production,

as well as parts of chemical, biotechnological and energy industries.

• is worth an estimated €2 trillion

• accounts for 22 million jobs

• 9% of total employment in the EU

• Each euro invested in EU-funded bioeconomy research and innovation is

estimated to trigger €10 of value added in bioeconomy sectors by 2025.

EUROPEAN COMMISSION – PRESS RELEASE

Brussels, 13 February 2012

Commission proposes strategy for sustainable

bioeconomy in Europe

http://www.google.co.uk/url?sa=i&rct=j&q=eu+flag&source=images&cd=&cad=rja&docid=tlanp6-f5HNbHM&tbnid=jPPmIfhjK6G4EM:&ved=0CAUQjRw&url=http://www.guardian.co.uk/commentisfree/cif-green/2009/sep/23/irish-green-party&ei=7mFIUZenFKKI0AW-voGIAQ&bvm=bv.43828540,d.d2k&psig=AFQjCNEymGem-LPeEzs718qaPw33AFykUQ&ust=1363784548550117

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NNFCC: The Bioeconomy Consultants NNFCC: The Bioeconomy Consultants

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Commodity Agricultural Raw Materials Index- Monthly Price

Commodity Food Price Index - Monthly Price

Crude Oil (petroleum), Price index - MonthlyPrice

Feedstock Pricing – A new normal

Source: International Monetary Fund

Price

ind

ex, 2

00

5 =

10

0

The relative costs of crude oil, food basics and agricultural

materials have moved significantly over the last 20 years.

http://www.imf.org/external/np/res/commod/index.asp

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Complexity and Opportunity

Biomass Carbon Content

Chemicals

Liquid & Gaseous Fuels

Energy Content Heat & Power

Functional Content

Materials

Increasing value

Decreasing volume

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Biomass – A love hate relationship!

Strengths • Available on demand

• Carbon source

Weaknesses • Cost

• Physical nature & low energy density

Opportunities

• Energy generation (heat and power)

• Liquid transport fuels

• Chemicals and materials

Threats • Competition for land

• Environmental pressure

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0

400

800

1200

1600

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2010 2020 2030 2040 2050

Mill

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Plastics production: projected growth

Medium

Low

High

Plastic production: medium growth

2020 339 million tonnes



A higher value commodity market for biomass? 1967 – There’s a great future in plastics 2012 - There’s a great future in bio-based plastics

The Graduate (1967),

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ADM

Amyris/M

ichelin

Anellotech

BioAmber

Biocaldol

BioMCN

Braskem

Butamax

Cathay Industrial Biotech

Colbolt TechnologiesDSM

DOW

Draths

DuPont

Eastman Chem

icals

Global Biochem

Global Bioenergies

Glycos Biotechnologies

Green Biologics

Greencol Taiwan Corporation

Genomatica

Gevo

Goodyear/Genencor

India Glycols

Metabolic Explorer

Myriant

Natureworks

Novepha

Purac

Rennovia

Reverdia (DSM/Roquette)

SolvayTM

O

OPX Bio

Verdezyne

Vinythai

Virent

Zeachem

Methanol

Formic Acid

Ethanol

Ethylene

Ethylene Oxide

Ethylene Glycol (MEG)

Acetic Acid

Ethyl acetate

Epichlorohydrin

Acetone

isoPropanol

Propylene

Propylene Glycol

1,3-Propanediol

Lactic acid

Acrylic Acid

n-Butanol

iso-Butanol

iso-Butylene

Butadiene

Succinic acid

2,3-Butanediol

1,4-Butanediol

Tetrahydrofuran

Isoprene

Adipic acid

HMDA

Benzene

Toluene

Paraxylene

Terephthalic acid

Styrene

Market expansion and development activity

Currently over 80 companies actively commercialising

over 50 commodity or platform chemicals

Companies working on bio-based chemicals

Bio

-bas

ed

ch

em

ical

s

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Industry drivers & concerns

End of life options

Product performance

Technology development

Green branding & corporate sustainability

Production economics

Feedstock economics

Policy intervention & indirect effects

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Prevention

Re-use

Recycling

Recovery

Land fill or incineration

EU Waste Framework Directive 2008/98/EC

Material End of Life – New Opportunities

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NNFCC: The Bioeconomy Consultants © NNFCC

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NNFCC: The Bioeconomy Consultants Image courtesy BASF

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Succinic Acid 1,4-ButanediolPolybutylene

Terephthalate

Copolyester Ethers

Thermoplastic Polyurethanes

Spandex Fibres

Tetrahydrofuran

Solvent

Polytetramethylene Ether Glycol

g-Butyrolactone

Fine & Speciality Chemicals

N-Methyl -2-Pyrrolidone


2-Pyrrolidone


N-Vinyl-2-Pyrrolidone

Polyvinyl Pyrrolidone

Deicers/Coolent

Plasticisers

Fuel Additives

Bio-based chemical platforms

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Ethylene Polyethylenes

Styrene Monomer

Ethylene Oxide/Glycol

EDC

Other

Polymers/Rubbers

Polyester

PVC

Alpha Olefins

PVA

Ethanol

60%

7%

14%

12%

7%

Bio-based chemical platforms

Ethanol production ~ 70 million tonnes

Ethylene production ~ 110 million tonnes

PET Collaborative

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Bio-based materials – Novel or drop in?

Strengths • Drop in – known targets and downstream products

• Novel – exploits attributes of biomass or biological processing

Weaknesses • Drop in – number of unit operations required

• Novel – requirement for product development

Opportunities • Drop in - rapid route to market through existing

infrastructure and know how

• Novel – provides new or improved functionality

Threats

• Drop in – production never achieves cost competitiveness

• Novel – immature supply chain and market awareness

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Development Pipeline

Today

• Ethylene glycol

• Epichlorohydrin

• Lactic acid

• Propanediol

Near term

• Succinic acid

• Butanol

• Butanediol

• Propylene

Medium term

• Isoprene

• Butadiene

• Acrylic acid

• Terephthalic acid

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Opportunities for bio-based C3 and C4 intermediates

Niche opportunities in compostable packaging

Value adding opportunities in co-polymer development

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Aug. 13, 2012 - Joint Development Agreement for Bio-Based Butadiene

Future Technology Synthesis gas based fermentation

Developing microorganisms

capable of converting syngas

to valuable platform chemicals

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The challenges

Technology

• Biomass crop yields

• Biomass composition

• Logistics

• Enzyme development

• Fermentation yields

• Novel products

Strategic

• Integration into existing value chains

• Financing

• Policy robustness

• Standards & labels

• Public procurement

Sustainability

• Direct land use change

• Indirect land use change

• Biodiversity

• Emission (land, air, water)

• Social impacts

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Do we have enough land to feed the planet and

produce the low carbon energy, fuels and materials

needed by a population expected to reach 9 billion

by 2050?

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Regional Development Sustainable agriculture & forestry

Established agri supply chains Strong technology base Limited political support

Agricultural sustainability? Land availability?

Strong political support Access to growing markets

Sustainable agriculture Established agri supply chains

High residue availability Strong technology base Strong political support

Established cultivation and processing

Available arable land High crop yields (sugar cane)

Good residue availability (bagasse)

Good access to growing markets

Large arable land potential

Limited access to skills Limited access to markets

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Land availability and use

Global arable land could be doubled

However, what is the limit of sustainable expansion?

What are the environmental and societal implications of

expansion and land use change?

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Biopolymer Scenarios - land requirements (2030)

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Chemical driven

Biofuel stalled

Biofuel driven

Bioeconomy

Polymer demand – 428 million tonnes

Land availability – 250-800 million ha (Source FAO)

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Land requirements – the bigger picture

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Today

Sugar, starch and oil crops.

Builds on current agricultural value chains.

Expensive and tied to food & feed chains.

Near term

Agricultural residues.

Bolts on to current agricultural production.

Requires collection and logistical development.

Technology improvements required to meet current economics.

Future

Algae, Biomass crops and carbon dioxide.

Requires development of new supply chains and cultivation technology.

Feedstock Development

NB - The use of algae as a production tool should not be confused with its use as a feedstock

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To maximise the transnational value of algal pilots across NWE, by creating an integrated Network that incorporates an up to date inventory and in which pilots collect and share data. To identify the political, economic, social and technological opportunities for sustainable exploitation of algae within NEW. To combine information in an ICT-based tool which can guide decisions, identify gaps in knowledge and capability and provide a roadmap for stakeholders.

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12 Principles for sustainable biofuel production

– Legality

– Planning, Monitoring and Continuous Improvement

– Greenhouse Gas Emissions

– Human and Labour Rights

– Rural and Social Development

– Local Food Security

– Conservation

– Soil

– Water

– Air

– Use of Technology, Inputs and Management of Wastes

– Land Rights

Sustainability through project control Round Table on Sustainable Biofuels

http://www.google.co.uk/url?sa=i&rct=j&q=round+table+on+sustainable+biofuels+logo&source=images&cd=&cad=rja&docid=V3eKOtAf6BHkQM&tbnid=WUy87-lVD2MClM:&ved=0CAUQjRw&url=http://www.flexjobs.com/jobs/telecommuting-jobs-at-rsb_services_foundation&ei=tmpIUaS6IZTa0QX8zYDYAQ&bvm=bv.43828540,d.d2k&psig=AFQjCNG8L9Ds9ADeCabQUQxxsm-1Vn0BYA&ust=1363786787518503

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Summary - Bio-based Materials outlook

Strengths

• Consumer preference

• Reduced carbon footprints & fossil energy use

• Novel / Improved function

Weaknesses

• Low volume / High costs

• Immature supply chain

• Market confusion

Opportunities

• Oil price volatility

• Capture C3 and C4 markets

• Co-development with fuel industry

Threats

• Feedstock supply

• Alternative feedstocks (coal, gas)

• Environmental pressure

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UK and Norway Capabilities and Opportunities for Joint Working

on Biorefining and Industrial Biotechnology?

Review Basis

• Industrial Competence

• Research Competence

• Feedstock Opportunity

Recommendations

• Tailored networking

• Relationship building through exchange programs

• Information exchange

• Industrial stakeholder engagement

• Build programs around FP7 and other EU programs

• Review ERA-Net participation

• Joint funding calls as a basis for interaction

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Renewable Raw Materials

Forestry

Marine by products

Algae and Marine

Organisms

Markets

Bulk chemical-using industries

(Biofuels and Chemicals)

Speciality Ingredients (feed and chemicals)

Technology Areas

Biocatalysis Microbial strain development & Fermentation

Macro & microalgae cultivation

Hypotheses examined and rationalised to give focus

areas

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Process demonstration and scale up

http://www.google.co.uk/url?sa=i&rct=j&q=centre+for+process+innovation&source=images&cd=&cad=rja&docid=WtF0K3zRXMIP6M&tbnid=FO3gxMNtETQncM:&ved=0CAUQjRw&url=http://www.airto.co.uk/list/cpi.html&ei=yI5IUcf9LPDZ0QWQpYGgDA&bvm=bv.43828540,d.d2k&psig=AFQjCNFY2bc_YVGMTokYnaGYeWlpbowBXg&ust=1363796023358302

http://www.google.co.uk/url?sa=i&rct=j&q=Beacon+Centre+biorefinery&source=images&cd=&cad=rja&docid=leu7LPRpGBjDtM&tbnid=9WiMGPVbw0FOaM:&ved=0CAUQjRw&url=http://beaconwales.org/en/events/beacon-events&ei=Ao9IUYjrG8_s0gX824CYDQ&bvm=bv.43828540,d.d2k&psig=AFQjCNFJbZKQ-_WAucwPTDiMJL-aWrMkJQ&ust=1363796082517903

http://www.google.co.uk/url?sa=i&rct=j&q=Biorenewables+Development+Centre&source=images&cd=&cad=rja&docid=exQhdm1pCv489M&tbnid=HN7C58RH34bE-M:&ved=0CAUQjRw&url=http://scy.co.uk/news/new-opportunities-biorenewables-development-centre&ei=NI9IUZufIZCY0AXjyoBo&bvm=bv.43828540,d.d2k&psig=AFQjCNFekrzNfEOMzqOKfvpnVVOeIZH0cQ&ust=1363796143253671

http://www.google.co.uk/url?sa=i&rct=j&q=Biorefinery+centre+IFR&source=images&cd=&cad=rja&docid=1v2d1kRAl6OZyM&tbnid=QzoBM-1ZirAk4M:&ved=0CAUQjRw&url=http://www.ifr.ac.uk/events/openday/index.htm&ei=349IUca-BorF0QXG9ID4BA&bvm=bv.43828540,d.d2k&psig=AFQjCNHGkh3vh6aG6nGE0_8WA5upPk_Vtg&ust=1363796287939577

http://www.google.co.uk/url?sa=i&rct=j&q=Bio+Base+Europe&source=images&cd=&cad=rja&docid=z3qqyST427Ob-M&tbnid=s1UWrr5CEzEJiM:&ved=0CAUQjRw&url=http://biobase.presite.be/biobase/en/content/general-info&ei=4pFIUea0HKKq0QWytYHAAg&bvm=bv.43828540,d.d2k&psig=AFQjCNEpXyjso_vC6hiH5NTeob3tjlaxqg&ust=1363796819093318

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Bio Base NWE Supporting the development of the bio-based economy

in North West Europe

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Bio Base NWE Supporting the development of the bio-based economy

in North West Europe

http://www.nnfcc.co.uk/

http://www.tcbb.ie/

http://www.clib2021.de/

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Aims

To support the development of the bio-based economy in NWE

• To acquaint companies, research centers and education centers of NWE with Bio

Base Europe

o Bio Base Europe Pilot Plant: independent facility to address upscaling needs

o Bio Base Europe Training Center: to address specific training needs for operators of the bio-based economy

• To assist companies by giving technological support

• To aid companies, research centers and education centers of NWE to network internationally

• Political support for the bio-based economy by giving SMEs a voice, and by developing a common strategy

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Bio economy

Raw material supply

Technology

development

Environmental concerns

Trends to watch

Renewable versus

Nuclear/Unconventional gas/CCS

Solid biofuel versus liquid biofuel

Bioenergy versus bio-based materials

Biodegradable versus durable Bio-

based plastics

Impact of NGLs on C2/3/4 platforms

Summary

Bioeconomy Drivers

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The NNFCC provides high quality, industry leading consultancy

for more information contact us

Email - [email protected]

+44 (0) 1904 435182

Follow us on Twitter @NNFCC

• Future Market Analysis

• Feedstock Logistics Planning

• Sustainability Strategy

Development

• Technology evaluation & associated

due diligence

• Project feasibility assessment

• Policy and regulatory support

mailto:[email protected]

Global trends in the bioeconomy

Technology

Transcript of Global trends in the bioeconomy