NNFCC
NNFCC: The Bioeconomy Consultants
Bridging the Bioeconomy Innovation Gap
The Bio Base NWE Project
Adrian Higson PhD
Head of Biorefining
12 June 2012
NNFCC
NNFCC: The Bioeconomy Consultants
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.
NNFCC
NNFCC: The Bioeconomy Consultants
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
Celebrating 10 years of Bioeconomy development
NNFCC
NNFCC: The Bioeconomy Consultants
Bioeconomy value chains
Biomassprovision
Biomass trading
Biomassrefining
Fuel production
Fuel blend & retail
Chemical production
Chemicalindustry
Biomass power& heat
Chemical usingindustry
Retailers
Pharmaceutical industry
Food ingredients
Food industry
Retailers
Food & Feed industry
Feed ingredients
Feed industry
NNFCC
NNFCC: The Bioeconomy Consultants
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
NNFCC
NNFCC: The Bioeconomy Consultants NNFCC: The Bioeconomy Consultants
Biobased Materials drivers & concerns
End of life options
Product performance
Technology development
Green branding & corporate sustainability
Production economics
Feedstock economics
Policy intervention & indirect effects
© NNFCC
NNFCC
NNFCC: The Bioeconomy Consultants NNFCC: The Bioeconomy Consultants
0
50
100
150
200
250
300
Feb
-93
De
c-9
3
Oct
-94
Au
g-9
5
Jun
-96
Ap
r-9
7
Feb
-98
De
c-9
8
Oct
-99
Au
g-0
0
Jun
-01
Ap
r-0
2
Feb
-03
De
c-0
3
Oct
-04
Au
g-0
5
Jun
-06
Ap
r-0
7
Feb
-08
De
c-0
8
Oct
-09
Au
g-1
0
Jun
-11
Ap
r-1
2
Feb
-13
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.
NNFCC
NNFCC: The Bioeconomy Consultants NNFCC: The Bioeconomy Consultants
50 shades of green - Every generation now comes with a degree of
environmental consciousness
• Baby boomers (born 1946-1964)
– Silent Spring 1962
– Air quality, water quality
• Generation X (Baby busters) (born 1964-1977)
– Union Carbide and Chernobyl disasters.
– Exxon Valdez oil spill.
• Generation Y (Millennials) (born 1980’s through1990’s)
– Hurricane Katrina and An Inconvenient Truth
– BP Oil Spill in the Gulf of Mexico
– Awareness of the Great Pacific Garbage Patch
• Generation Z (today’s children)
– Recycling, solar panels, hybrid cars, energy saving light bulbs
Source: Jacquelyn Ottman: The new rules of Green Marketing
NNFCC
NNFCC: The Bioeconomy Consultants
𝑃𝑟𝑖𝑐𝑒 =𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡
𝑚𝑜𝑛𝑒𝑡𝑎𝑟𝑦 𝑐𝑜𝑠𝑡
𝑣𝑎𝑙𝑢𝑒 =𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡 + 𝑒𝑚𝑜𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡
𝑚𝑜𝑛𝑒𝑡𝑎𝑟𝑦 𝑐𝑜𝑠𝑡 + 𝑝𝑠𝑦𝑐ℎ𝑖𝑐 𝑐𝑜𝑠𝑡
Business to Business
Business to Consumer
Green Premium? – Price vs value
Coca Cola Executive: “If Coca-Cola were to lose all of its
production-related assets in a disaster, the company would
survive. By contrast, if all consumers were to have a sudden
lapse of memory and forget everything related to Coca-Cola,
the company would go out of business.”
NNFCC
NNFCC: The Bioeconomy Consultants NNFCC: The Bioeconomy Consultants
Ethylene Polyethylenes
Styrene Monomer
Ethylene Oxide/Glycol
EDC
Other
Polymers/Rubbers
Polyester
PVC
Alpha Olefins
PVA
Ethanol
60%
7%
14%
12%
7%
Drop in biobased plastics
PET Collaborative
NNFCC
NNFCC: The Bioeconomy Consultants NNFCC: The Bioeconomy Consultants
Market expansion and development activity
Currently over 90 companies actively commercialising over 50
commodity or platform chemicals.
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
Companies working on bio-based chemicals
Bio
-bas
ed
ch
em
ical
s
Source: NNFCC
Opportunities for bio-based C3 and C4 intermediates
Niche opportunities in compostable packaging
Value adding opportunities in co-polymer development
NNFCC
NNFCC: The Bioeconomy Consultants
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
© NNFCC
NNFCC
NNFCC: The Bioeconomy Consultants
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
© NNFCC
NNFCC
NNFCC: The Bioeconomy Consultants NNFCC: The Bioeconomy Consultants
Innovation - something original and new that "breaks in to" the
market or into society
Market
Finance
Technology/
Product
• Standards, labels and certification
• Product specific legislation
• Legislation related to biomass
• Encourage Green Public Procurement
• Research
• Development
• Demonstration
• Public
• Private
• Public/Private
£25M IB Catalyst
NNFCC
NNFCC: The Bioeconomy Consultants
Project
Feedstock Supply
Market Access Technology
Open Innovation
Supply agreements
Co-development projects Off-take agreements
Joint ventures
Good examples
NNFCC
NNFCC: The Bioeconomy Consultants
BRIDGEPPP: The challenge, Overcoming the innovation Valley of
Death by bridging the gap from research to the marketplace.
The EU contributes €1 billion to the research and innovation program,
European industries have committed to another €2.8 billion
Building supply chains
Developing technology
Upgrading and building
demonstration and flagship
biorefineries
http://bridge2020.eu/
NNFCC
NNFCC: The Bioeconomy Consultants NNFCC: The Bioeconomy Consultants
Bio Base NWE Supporting the development of the bio-based economy
in North West Europe
• 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
• To acquaint companies, research centers and education centers of NWE with
Bio Base Europe
NNFCC
NNFCC: The Bioeconomy Consultants
Process demonstration and scale up
NNFCC
NNFCC: The Bioeconomy Consultants NNFCC: The Bioeconomy Consultants
Bio Base NWE Supporting the development of the bio-based economy
in North West Europe
NNFCC
NNFCC: The Bioeconomy Consultants NNFCC: The Bioeconomy Consultants
Bio Base NWE Supporting the development of the bio-based economy
in North West Europe
NNFCC
NNFCC: The Bioeconomy Consultants
Bio economy
Feedstock pricing & volatility
Technology
Development
(performance & cost)
Environmental considerations
The bioeconomy will create
sustainable business opportunities
for feedstock suppliers, technology
and project developers,
manufacturers and investors.
Added ‘value’ markets provide
growth platform.
Feedstock economics drive toward
C4 commodity chemicals
Commercial development based
on collaborations
Summary Biobased Economy Drivers
NNFCC
NNFCC: The Bioeconomy Consultants
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
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