Bridging the bioeconomy innovation gap - The Bio Base NWE project

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This presentation was delivered at the 'The First Annual BEACON Conference: Biorefining from Plants to Products'. The presentation discusses the drivers for biobased chemicals in the bioeconomy and the need to support innovation through process scale up and demonstration.

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Bridging the bioeconomy innovation gap - The Bio Base NWE project

  1. 1. NNFCCNNFCC: The Bioeconomy ConsultantsBridging the Bioeconomy Innovation GapThe Bio Base NWE ProjectAdrian Higson PhDHead of Biorefining12 June 2012
  2. 2. NNFCCNNFCC: The Bioeconomy ConsultantsCompany VisionWe view bio-based technologies as keycomponents of the low carbon economydelivering economic, social and environmentalbenefits.We believe the bioeconomy will createsustainable business opportunities forfeedstock suppliers, technology and projectdevelopers, manufacturers and investors.A specialist ‘not for profit’ Bioeconomy consultancyCompany MissionTo provide clients with a holistic view of feedstock, technology, policy and marketdevelopment across the bioeconomy, enabling them to make informed businessdecisions and develop sustainable business strategies.
  3. 3. NNFCCNNFCC: The Bioeconomy ConsultantsServices• Future market analysis• Feedstock logistics planning• Sustainability strategy development• Technology evaluation and due diligence• Project feasibility assessment• Policy and regulatory support• Network & FacilitationClients & Partners• Multinationals & SMEs• Public Organisations• Government• Research Institutes• Universities• Transnational Collaborations• European Framework ProjectsCelebrating 10 years of Bioeconomy development
  4. 4. NNFCCNNFCC: The Bioeconomy ConsultantsBioeconomy value chainsBiomassprovisionBiomasstradingBiomassrefiningFuelproductionFuel blend &retailChemicalproductionChemicalindustryBiomass power& heatChemical usingindustryRetailersPharmaceuticalindustryFoodingredientsFoodindustryRetailersFood & FeedindustryFeedingredientsFeedindustry
  5. 5. NNFCCNNFCC: The Bioeconomy ConsultantsEU ContextIt 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 EUEach euro invested in EU-funded bioeconomy research and innovation isestimated to trigger €10 of value added in bioeconomy sectors by 2025.EUROPEAN COMMISSION – PRESS RELEASEBrussels, 13 February 2012Commission proposes strategy for sustainablebioeconomy in Europe
  6. 6. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsBiobased Materials drivers & concernsEnd of life optionsProduct performanceTechnology developmentGreen branding & corporate sustainabilityProduction economicsFeedstock economicsPolicy intervention & indirect effects© NNFCC
  7. 7. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy Consultants050100150200250300Feb-93Dec-93Oct-94Aug-95Jun-96Apr-97Feb-98Dec-98Oct-99Aug-00Jun-01Apr-02Feb-03Dec-03Oct-04Aug-05Jun-06Apr-07Feb-08Dec-08Oct-09Aug-10Jun-11Apr-12Feb-13Commodity Agricultural Raw Materials Index- Monthly PriceCommodity Food Price Index - Monthly PriceCrude Oil (petroleum), Price index - MonthlyPriceFeedstock Pricing – A new normalSource: International Monetary FundPriceindex,2005=100The relative costs of crude oil, food basics and agriculturalmaterials have moved significantly over the last 20 years.
  8. 8. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy Consultants50 shades of green - Every generation now comes with a degree ofenvironmental 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 bulbsSource: Jacquelyn Ottman: The new rules of Green Marketing
  9. 9. NNFCCNNFCC: The Bioeconomy Consultants𝑃𝑟𝑖𝑐𝑒 =𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡𝑚𝑜𝑛𝑒𝑡𝑎𝑟𝑦 𝑐𝑜𝑠𝑡𝑣𝑎𝑙𝑢𝑒 =𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡 + 𝑒𝑚𝑜𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡𝑚𝑜𝑛𝑒𝑡𝑎𝑟𝑦 𝑐𝑜𝑠𝑡 + 𝑝𝑠𝑦𝑐ℎ𝑖𝑐 𝑐𝑜𝑠𝑡Business to BusinessBusiness to ConsumerGreen Premium? – Price vs valueCoca Cola Executive: “If Coca-Cola were to lose all of itsproduction-related assets in a disaster, the company wouldsurvive. By contrast, if all consumers were to have a suddenlapse of memory and forget everything related to Coca-Cola,the company would go out of business.”
  10. 10. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsEthylene PolyethylenesStyreneMonomerEthyleneOxide/GlycolEDCOtherPolymers/RubbersPolyesterPVCAlpha OlefinsPVAEthanol60%7%14%12%7%Drop in biobased plasticsPET Collaborative
  11. 11. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsMarket expansion and development activityCurrently over 90 companies actively commercialising over 50commodity or platform chemicals.ADMAmyris/MichelinAnellotechBioAmberBiocaldolBioMCNBraskemButamaxCathayIndustrialBiotechColboltTechnologiesDSMDOWDrathsDuPontEastmanChemicalsGlobalBiochemGlobalBioenergiesGlycosBiotechnologiesGreenBiologicsGreencolTaiwanCorporationGenomaticaGevoGoodyear/GenencorIndiaGlycolsMetabolicExplorerMyriantNatureworksNovephaPuracRennoviaReverdia(DSM/Roquette)SolvayTMOOPXBioVerdezyneVinythaiVirentZeachemMethanolFormic AcidEthanolEthyleneEthylene OxideEthylene Glycol (MEG)Acetic AcidEthyl acetateEpichlorohydrinAcetoneisoPropanolPropylenePropylene Glycol1,3-PropanediolLactic acidAcrylic Acidn-Butanoliso-Butanoliso-ButyleneButadieneSuccinic acid2,3-Butanediol1,4-ButanediolTetrahydrofuranIsopreneAdipic acidHMDABenzeneTolueneParaxyleneTerephthalic acidStyreneCompanies working on bio-based chemicalsBio-basedchemicalsSource: NNFCC Opportunities for bio-based C3and C4 intermediates Niche opportunities incompostable packaging Value adding opportunities inco-polymer development
  12. 12. NNFCCNNFCC: The Bioeconomy ConsultantsBio-based materials – Novel or drop in?Strengths• Drop in – known targets and downstream products• Novel – exploits attributes of biomass or biologicalprocessingWeaknesses• Drop in – number of unit operations required• Novel – requirement for product developmentOpportunities• Drop in - rapid route to market through existinginfrastructure and know how• Novel – provides new or improved functionalityThreats• Drop in – production never achieves costcompetitiveness• Novel – immature supply chain and marketawareness© NNFCC
  13. 13. NNFCCNNFCC: The Bioeconomy ConsultantsThe challengesTechnology• Biomass cropyields• Biomasscomposition• Logistics• Enzymedevelopment• Fermentationyields• Novel productsStrategic• Integration intoexisting valuechains• Financing• Policy robustness• Standards &labels• PublicprocurementSustainability• Direct land usechange• Indirect land usechange• Biodiversity• Emission (land,air, water)• Social impacts© NNFCC
  14. 14. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsInnovation - something original and new that "breaks in to" themarket or into societyMarketFinanceTechnology/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
  15. 15. NNFCCNNFCC: The Bioeconomy ConsultantsProjectFeedstock SupplyMarket AccessTechnologyOpen Innovation Supply agreements Co-development projects Off-take agreements Joint venturesGood examples
  16. 16. NNFCCNNFCC: The Bioeconomy ConsultantsBRIDGEPPP: The challenge, Overcoming the innovation Valley ofDeath 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 billionBuilding supply chainsDeveloping technologyUpgrading and buildingdemonstration and flagshipbiorefinerieshttp://bridge2020.eu/
  17. 17. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsBio Base NWESupporting the development of the bio-based economyin North West Europe• To aid companies, research centers and education centers of NWE tonetwork internationally• Political support for the bio-based economy by giving SMEs a voice, and bydeveloping a common strategy• To acquaint companies, research centers and education centers of NWE withBio Base Europe
  18. 18. NNFCCNNFCC: The Bioeconomy ConsultantsProcess demonstration and scale up
  19. 19. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsBio Base NWESupporting the development of the bio-based economyin North West Europe
  20. 20. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsBio Base NWESupporting the development of the bio-based economyin North West Europe
  21. 21. NNFCCNNFCC: The Bioeconomy ConsultantsBioeconomyFeedstockpricing &volatilityTechnologyDevelopment(performance& cost)EnvironmentalconsiderationsThe bioeconomy will createsustainable business opportunitiesfor feedstock suppliers, technologyand project developers,manufacturers and investors.Added ‘value’ markets providegrowth platform.Feedstock economics drive towardC4 commodity chemicalsCommercial development basedon collaborationsSummaryBiobased Economy Drivers
  22. 22. NNFCCNNFCC: The Bioeconomy ConsultantsThe NNFCC provides high quality, industry leading consultancyfor more information contact usEmail - enquiries@nnfcc.co.uk+44 (0) 1904 435182Follow us on Twitter @NNFCC• Future Market Analysis• Feedstock Logistics Planning• Sustainability StrategyDevelopment• Technology evaluation & associateddue diligence• Project feasibility assessment• Policy and regulatory support

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