Biobased chemicals – markets, innovation & opportunity

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This presentation was given at a Royal Society of Chemistry Industrial Biotechnology Group Meeting on the 17th September 2013. The presentation covers the key aspects of the biobased chemical market and introduces the support for innovation given by the European Interreg IVB Bio Base NWE project.

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Biobased chemicals – markets, innovation & opportunity

  1. 1. Biobased Chemicals – Markets, Innovation & Opportunity Adrian Higson High Value Chemicals from Biomass Royal Society of Chemistry Meeting 17th September 2013
  2. 2. Copyright © NNFCC 2012. Company Vision We view biobased 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.
  3. 3. Copyright © NNFCC 2012. Services • Market analysis • Feedstock logistics planning • Sustainability strategy development • Initial technology and economic appraisal • Project feasibility assessment • Policy and regulatory support • Network & Facilitation Clients & Partners • Multinationals & SMEs • Public Organisations • Government • Research Institutes • Universities • R&D Collaborations • Research Councils & TSB • EU Projects Celebrating 10 years of Bioeconomy development
  4. 4. Copyright © NNFCC 2012. 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
  5. 5. Copyright © NNFCC 2012. Biomass provision Biomass trading Biomass refining Fuel production Fuel blend & retail Chemical production Chemical industry Biomass power & heat Chemical using industry Retailers Pharmaceutical industry Food ingredients Food industry Retailers Food & Feed industry Feed ingredients Feed industry
  6. 6. Copyright © NNFCC 2012. Feedstock Pricing – A new normal Source: International Monetary Fund Priceindex,2005=100 0 50 100 150 200 250 300 Agricultural Raw Materials Food Crude Oil (Petroleum)
  7. 7. Copyright © NNFCC 2012. 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) – BP Oil Spill in the Gulf of Mexico – An Inconvenient Truth and Hurricane Katrina • Generation Z (today’s children) – Recycling, solar panels, hybrid cars, energy saving light bulbs Source: Jacquelyn Ottman: The new rules of Green Marketing
  8. 8. Copyright © NNFCC 2012. 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.”
  9. 9. Copyright © NNFCC 2012. Biobased chemicals market trends • Market growth through drop in replacements for current petrochemicals. • Shale gas development creates winners and losers in the biobased chemical sector. • Novel polymers finding a route to market through the production of added value co-polymers. • Emergence of stand alone turn key cellulosic sugar technologies.
  10. 10. Copyright © NNFCC 2012. Ethylene Polyethylenes Styrene Monomer Ethylene Oxide/Glycol EDC Other Polymers/Rubbers Polyester PVC Alpha Olefins PVA Ethanol 60% 7% 14% 12% 7% Ethylene value chain
  11. 11. Copyright © NNFCC 2012. Succinic Acid 1,4-Butanediol Polybutylene Terephthalate Copolyester Ethers Thermoplastic Polyurethanes SpandexFibres Tetrahydrofuran Solvent Polytetramethylene EtherGlycol g-Butyrolactone Fine & Speciality Chemicals N-Methyl -2- Pyrrolidone Fine &Speciality Chemicals 2-Pyrrolidone Fine &Speciality Chemicals N-Vinyl-2- Pyrrolidone Polyvinyl Pyrrolidone Deicers/Coolent Plasticisers Fuel Additives Succinic acid value chain
  12. 12. Copyright © NNFCC 2012. Over 50 commodity or platform chemicals in development or commercialisation. UK examples
  13. 13. Copyright © NNFCC 2012. CO2 capture and use By-products, residues & wastes Biomass Crops & Forestry Food crops Feedstock choice is key to supply chain acceptability. However the biobased products are differentiated from biofuels & bioenergy. e.g. scale, alternatives WWF Biobased Panda
  14. 14. Copyright © NNFCC 2012. To maximise the transnational value of algal pilots across NWE, by creating an integrated Network To identify the political, economic, social and technological opportunities for sustainable exploitation of algae within NWE. To combine information in an ICT-based tool which can guide decisions, identify gaps in knowledge and capability and provide a roadmap for stakeholders.
  15. 15. Copyright © NNFCC 2012. EU Industrial Policy A Stronger European Industry for Growth and Economic Recovery October 2012 Innovating for Sustainable Growth: A Bioeconomy for Europe February 2012 Bioeconomy funding - ~€4bn (double the funding available through PF7) European Economic Strategy
  16. 16. Copyright © NNFCC 2012. Bio-based Industries PPP: 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 http://bridge2020.eu/
  17. 17. Copyright © NNFCC 2012. Process demonstration and scale up
  18. 18. Copyright © NNFCC 2012. • Bio Base NWE is a three-year project (2013-2015) by the European Commission to support the development of the bio-based economy in North West Europe (NWE ). • The €6.2 million project will help entrepreneurs and companies to facilitate innovation and business development in bio-based technologies. • The Bio Base NWE partnership includes organizations from five different countries.
  19. 19. Copyright © NNFCC 2012.
  20. 20. Copyright © NNFCC 2012. 1. The network, representing leading bio-based economy experts, advises entrepreneurs from across North West Europe on how to develop new ideas into marketable products, from the first feasibility study or market analysis up to funding and investment scenario’s. 2. Financial support to SME’s to perform proof-of concept studies and/or to demonstrate innovative bio-based technologies at Bio Base Europe Pilot Plant, an independent, state of the-art demonstration facility in Ghent, Belgium. 3. Programs and tools for training and education to help tackle the shortage of skilled professionals in North West Europe’s bio-based industries. Scope
  21. 21. Copyright © NNFCC 2012. Innovation Coupons for SME’s • Innovation coupons for SME’s are a central part of the Bio Base NEW project. These € 10.000 innovation coupons provide SME’s with access to the facilities of the Bio Base Europe Pilot Plant. • This allows your business to assess the feasibility of taking an bio-based idea or a technology into industrial production. • The Bio Base Europe Pilot Plant provides testing and production facilities from laboratory scale to multi-ton semi-industrial scales. • Bio Base NWE provides not only technological know-how, but also cost- assessment or barrier analysis.
  22. 22. Copyright © NNFCC 2012.
  23. 23. Copyright © NNFCC 2012.
  24. 24. Copyright © NNFCC 2012. 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 Bioeconomy Drivers
  25. 25. Celebrating 10 years of Bioeconomy development NNFCC is a UK based consultancy with expertise on the conversion of biomass to bioenergy, biofuels and biobased products. We help industry solve complex business challenges and provide vital evidence for policy makers. | | www.nnfcc.com | enquiries@nnfcc.co.uk

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