The document summarizes an opening presentation on building a bioeconomy. It discusses why a bioeconomy is needed due to environmental stresses and finite resources. Key to developing a bioeconomy are EU research funding and projects, building new biotechnology capabilities, and educating the public. Challenges include competing land uses for food and materials and ensuring sustainability across economic, social, and environmental factors.

1. Helsinki Chemicals Forum 2011
Session on “Bioeconomy – Creating
Global and Local Opportunity”
Opening Comments by Rodney Townsend
Director Strategic Projects Royal Society of Chemistry UK
Chairman 2008-2010 of ETP on Sustainable Chemistry (SusChem)

2. Bioeconomy – Creating Global and
Local Opportunity
• Why a bioeconomy?
• What is a bioeconomy?
• How do we build a bioeconomy?
• Some challenges and issues…

3. Why a bioeconomy?
Environmental stress
Climate change
Mounting waste
Scarcity of quality water
Difficulty to extract oil and coal resources
Diminishing metal/material resources

4. Mounting waste – huge inefficiencies in
current manufacture and consumption…
93% of production materials
do not end up in saleable
products
80% of products are discarded
after a single use
99% of materials used in the
production of, or contained
within goods, are discarded in
the first six weeks

5. Trends in peak oil reserves….

6. Increasing shortages of strategic
resources……
This matter has recently
been highlighted by the
European Commission
as a key strategic issue….

7. The concentration in this report is on
elements and minerals…

8. …but the issue is about more than this – it is also about new raw
material resources not drawn from fossil fuels. In other words,
bio-based feedstocks, coupled with process intensification, waste
management and recycling using a “cradle to cradle” approach…
This issue was addressed
in the recently published
RSC Road Map (2009) -
Three key issues

9. …but the issue is about more than this – it is also about new raw
material resources not drawn from fossil fuels. In other words,
bio-based feedstocks, coupled with process intensification, waste
management and recycling using a “cradle to cradle” approach…
The issue of raw materials
is also addressed in more
detail in another recent
report from der Gesellschaft
Deutscher Chemiker
(published 2010) -

10. …and a key message is found there (one with which
we would fully agree)…
New wine in old bottles!
…developing a bioeconomy
does NOT involve a rejection of
new chemistry per se, but
scientists and engineers of
many disciplines are needed
together to provide the
innovation we need for a truly
sustainable and competitive
future which is built on a
BIOECONOMY…..
[From: “Connecting Biomass and Petroleum Processing with a Chemical Bridge”, J J Bozell, Science vol.329, 522 (2010)]]

11. …but the message goes further still, involving expertise
from “across the board” and down the value chains….
Key also are analyses
of supply and value
chains…with newly
developed, universally
accepted LCA tools to
define sustainability and
inform new regulatory
laws as well as “Green
Public Procurement”….
[“Critical raw materials for the EU.. Report pf the Ad-hoc Working Group on defining critical raw materials for the EU, 2010]

12. …and analyses should extend over WHOLE (global) value chains…
T h ee V aal lu ee C h aai in (s)
Th V u Ch n (s)
Processing Industries Customer Side of the Value Chain Societal Needs
Societal Needs
Processing Industries Customer Side of the Value Chain
Raw Material Supplier Industries
Downstream Industries
Downstream Industries
• • Automotive
Automotive • • Quality of Life
Quality of Life
• • Transport
Transport • • Clean
Clean
• • Construction
Construction Environment
Environment
• • Furniture
Furniture • • Low Carbon
Low Carbon
• • Consumer Goods (P&G)
Consumer Goods (P&G) Society
Society
• • Economic
Economic
Prosperity
Prosperity
End-Customers
End-Customers
• • Pharma
Pharma
• • Crop Protection
Crop Protection
• • Biotech
Biotech • • Consumer Goods
Consumer Goods
• • Pulp and Paper
Pulp and Paper
• • Food ??
Food
• • Mining ??
Mining
…including a “cradle to cradle” approach to RECYCLING.

13. Bioeconomy – Creating Global and
Local Opportunity
• Why a bioeconomy?
Because there is no realistic alternative!

14. A bioeconomy – what is it?
It is a low carbon, knowledge-based economy
that includes a major use of sustainable bio-
based products, and a future society that is no
longer wholly or primarily dependent on fossil
fuels for its energy and industrial raw material
needs….
(based on UK IB-IGT Scoping Statement, February 2008)

15. HEALTHY
LIVING
What are the
COMMON biotechnologies
that we ALL should develop
TOGETHER to meet these
aspirations? (i.e., NOT
just the scientists!) SUSTAINABLE
HEDONICS &
LIFE-STYLE ECONOMY

16. HEALTHY LIVING
Antibody
technologies Natural Drugs &
“Red products antibiotics
Anti-cancer
Biotechnology”
Non-animal Marine
technologies Epigenetic testing protocols biotechnology
and gene
Food crop products technologies
(GM & wild-type selection) Aquaculture
Land management “Blue
“Green management
“Yellow Biotechnology”
Biotechnology”
Biotechnology”
Non-food crop products Biofuels
Nutraceuticals (GM & wild-type selection) Artificial photosynthesis
& energy from biomass
Anti-ageing
Personal
technologies CREATING A BIOECONOMY
products SUSTAINABLE
Biorefineries
Robotics & ECONOMY
“HEDONICS” & domotics
New measurement “White Bioprocessing &
LIFE-STYLE technologies biomanufacturing
“Purple Biotechnology” technologies
Novel forensic Biotechnology” Green product
technologies design and
Anticrime Next generation manufacture
technologies ICT

17. So firstly, what biotechnologies do we
need in order to build the bioeconomy?
Products, processes and materials from novel biological
sources, reducing dependency on petrochemicals and
helping the EU to become a low carbon economy
Red Biotechnology White Biotechnology Green & Yellow Blue Biotechnology
Biotechnologies
Discovery and use Use of micro- Discovery & use of
of novel drugs, organisms, Discovery & use of
novel genes,
vaccines, clinical biochemistry, novel genes,
processes and
technologies and biocatalysts, molecules, processes
materials in freshwater
stem cell engineering and and materials in land
and marine organisms
applications fermentation plants, agricultural
crops and forestry
Areas of focus:
Industrial biotechnology for the design, feedstock derivation and processing of
raw materials
Industrial biotechnology for onward processing and manufacture of novel
sustainable products
Re-use and recycling at all stages in manufacture, use and disposal

18. Bio-based Products
Definition: Non-food products derived from biomass (plants, algae, crops,
trees, marine organisms and biological waste from households, animals and
food production). Bio-based products may range from high-value added fine
chemicals such as pharmaceuticals, cosmetics, food additives, etc., to high
volume materials such as general bio-polymers or chemical feed stocks.
IMPORTANCE
o 7% of global sales $ 77 billion in value within the chemical sector
o EU industry accounting for ~ 30% of this value
2005 2010 2020
Volume of the $77 billion $125billion $250 billion
new (global) (global) (global)
bio-based $23b (EU)
product
markets
Jobs dependent 120.000 190.000 380.000
on
new products
Accelerating the Development of the Market for Bio-based Products in Europe REPORT OF THE TASKFORCE ON BIO-BASED
PRODUCTS Composed in preparation of the Communication “A Lead Market Initiative for Europe” {COM(2007) 860 final}

19. Market opportunities for bio-based
products……
Huge market opportunities for bio-based chemicals
Total value of chemical market in 2003
~ USD 1.24 trillion (approx. £12b in the UK)
Most chemicals are still produced from oil and gas today
EU is still (just about!) the world’s leading producer of chemicals
* Excluding pharmaceutical and consumer products
SOURCE: Value Creation, Ed. Budde, Felcht, Frankemölle, 2006.

20. The global drivers and challenges for
developing the bioeconomy….
BUSINESS DRIVERS
Growth in demand
Switching from hydrocarbon to carbohydrate
feed stocks for making chemicals
2005- $77 billion (global), 23 billion (EU)
2020- $250 billion (global)
One third of chemicals and materials will be
produced from biological sources by 2030
Demand for ‘green’ products
Cost Benefits
Cost of petroleum feed stocks will eventually exceed
the cost of biomass in future

21. However, many great challenges remain in order to
realize the full opportunities implicit in a bioeconomy…
Fossil based chemical industry
Characteristics for
fossil based fuels / chemistry
Economics of scale due to large
installations / high throughput
Highly optimized processes
Industry maturity
Well established supply chains Characteristics for biorefineries
High production reliability
New technology / no track record
Compete on price and
performance - not sustainability
New technology with new plant
Sound supply chain strategies
utilising existing infrastructure
Biorefinery industry
Foundation Development Expansion Diversification Maturity Time

22. Bioeconomy – Creating Global and
Local Opportunity
How do we build a bioeconomy?

23. How do we build a bioeconomy?
EU imperatives
FP7 and FP8 research and
innovation funding and
European Innovation
Projects (EIPs)
Developing generic tools for the development of the
bioeconomy and an example (Project BIOCHEM)
Developing new capabilities and skills in biotechnology at
EU and national levels
Informed education of the general public at all levels!

24. Just a few examples…..
Climate Change
EU target of greenhouse gases reduction by 2020
Security in energy supply
Reducing dependency on fossil fuels
Biofuels?
Creation of new jobs
2005- 120,000
2020- 380,000
New regulatory and other measures
Development of policy on transgenic technologies
Informed green public procurement policy
Post-REACH legislation?

25. Is the solution just an accelerated evolution from fossil
fuel dependency to an economy based primarily on
bio-fuels?
Biofuels
Nuclear
Fission
Clean
Fossil Coal
Fuels
Almost certainly NOT, because of the pressures to also
increase food production enormously from now to 2050….

26. The same potential conflict applies to making materials
from bio-derived sources......for example…
• Genencor, a Division of Danisco, has developed technology
for manufacturing isoprene from sugar cane, corn, corn cobs,
switchgrass or other biomass, involving
Microbial strain development
Large scale fermentation
Recovery and purification
• The vision is that all Goodyear tyres will be manufactured
from this bio-isoprene
• Manufacturing a conventional tyre requires seven gallons
of petroleum feedstock per tyre. Using bio-isoprene would
reduce that down to then close to zero – but the preferred
source could well be (waste) biomass in the long term

27. In other cases the potential conflict between using
bio-sources for food and non-food purposes is even
stronger….
…..together with unintended adverse consequences
on eco-systems elsewhere in the world….

28. Just a few examples…..
Climate Change
EU target of greenhouse gases reduction by 2020
Security in energy supply
Reducing dependency on fossil fuels
Biofuels?
Creation of new jobs
2005- 120,000
2020- 380,000
New INFORMED regulatory measures
Development of policy on transgenic technologies
Informed green public procurement policy
Post-REACH legislation?

29. As we move from a fossil-fuel-based economy to the
bioeconomy, we need to remember that…..
Descriptions such as We also need to consider:
“natural”, “nature social issues, economics,
derived”, “renewable” scale, energy intensity,
do NOT automatically competing land-use,
equate to the word global vs. national
“sustainable” (the issues….
labelling issue)
What is “green”?

30. A view of sustainability…
SOCIETAL
Bearable Equitable
?
SUSTAINABLE
ECOLOGICAL ECONOMICAL
Viable

31. How do we build a bioeconomy?
EU imperatives
FP7 and FP8 research
innovation funding and
European Innovation
Projects (EIPs)
Developing generic tools for the development of the
bioeconomy and an example (Project BIOCHEM)
Developing new capabilities and skills in biotechnology at
EU and national levels
Informed education of the general public at all levels!

32. An EU view of research in Europe compared to the USA (3-4 years ago)…..
?
?
(After Janez Potocnik, then Commissioner for Research)

33. We need to ensure that as FP7 is succeeded by FP8 in 2014,
that the recognition by the EC of the importance of investing
in biotechnology to create a European bioeconomy (already
well-recognised) stays at the core of Commission thinking….
The four “societal
drivers” ….
- Climate Change
- Energy & Food
Security
- Health
- Ageing Population
The bioeconomy is needed for ALL of these!

34. An increasing focus on the so-called “i-conomy”….
EUROPE 2020 – three objectives:
“smart growth”: developing an economy based on knowledge and
innovation
“sustainable growth”: promoting a more resource efficient, greener
and more competitive economy
“inclusive growth”: fostering a high-employment economy
delivering social and territorial cohesion
Seven flagship initiatives to catalyse progress:
“Innovation Union”
“Youth on the move” …and the bioeconomy is now
“A digital agenda for Europe” established as a key component of the
Innovation Union…
“Resource efficient Europe”
“An industrial policy for the globalisation era”
“An agenda for new skills and jobs”
“European platform against poverty”

35. Why? A profound change has occurred in FP thinking:
“European Innovation Partnerships”

36. Criteria for supporting an EIP……
• Significant contribution to societal challenge
• Impacts on competitiveness, growth, employment
• Reductions in time to market
• Clear EU added value
• Strong interest from member states, industry and
other stakeholders
• Concrete compelling targets
• Commitment from member states
• Strong engagement from private sector/industry
• Increasing simplification, reducing overlap
• Realistic building blocks, clear milestones and targets
(After Waldemar Kutt, Member of Cabinet of Maire Geoghegan-Quinn)

37. The good news: bio-based products were already
identified as a Lead Market Initiative (LMI) in 2007……

38. ..and a key Public Private Innovation Partnership
Is now scheduled in for future funding…
(Recommendations of LMI Ad Hoc Advisory Group on Bio-based Economy)

39. Already achieved under the LMI…
• The mapping of biorefineries and related support
policies in the EU
• The joint call for biorefinery research under FP7 in
2008-2009
• The FP7 2010/2011 call for Knowledge Based Bio-
Engineering [KBBE]
• The Coordination and Support Action [CSA] Star-
COLIBRI
• The large FP7 projects BIOCORE, EUROPABIOREF,
SUPRABIO and BIOCHEM
(Recommendations of LMI Ad Hoc Advisory Group on Bio-based Economy)

40. Some future potential bottlenecks and
challenges identified…
• Raw materials for the chemical industry must be available
in good quality, with stable, secure supply guaranteed
• Smooth integration of new biorefineries into existing
industrial infrastructure where possible
• New pilot and demo- plants required for feasibility studies
• Future KBBE support (as part of the new PPP?)
• Better transport infrastructure for the transport of
renewable feedstocks
• Rationalisation and simplification of European patenting
procedures and cost reduction (discussions underway)
• Market and initiative fragmentation (EU/national/regional)
(Recommendations of LMI Ad Hoc Advisory Group on Bio-based Economy)

41. Some member state initiatives…
• Belgium - “Recommendations on Industrial Biotechnology (2006)
• Denmark - “Agreement on Green Growth” (2009)
• Finland - “Using Natural Resources Intelligently” (2009)
• Ireland - “Developing the Green Economy in Ireland” (2009)
• UK - “Analysis of the UK Capabilities in Industrial Biotechnology in
Relation to the Rest of the World” (2009)
• Germany - “Innovation Bioeconomy” (2010)
• Netherlands - “Bio-based Economy 2010-2015” (2010)
(From presentation by Maive Rute, Director Biotechnologies, Agriculture
and Food, DG Research, Edinburgh 17-12-10 )

42. How do we build a bioeconomy?
EU imperatives
FP7 and FP8 research and
innovation funding and
European Innovation
Projects (EIPs)
Developing generic tools for the development of the
bioeconomy and an example (Project BIOCHEM)
Developing new capabilities and skills in biotechnology at
EU and national levels
Informed education of the general public at all levels!

43. BIOCHEM – a Europe INNOVA Project
Aims to support SMEs to innovate in the Bio Based Products
market, for example
o Bio-based plastics, bio-surfactants, bio-lubricants
o Excludes food, bio-fuels, bio-mass as an energy source, pulp, paper and wood products
Funded under DG Enterprise programme, Europe INNOVA
Actively supported by the SusChem ETP
1st February 2010 – 31 January 2013
17 partners including
o National and Regional Innovation Agencies
o Developers of material, tools and processes
o Co-ordinated by Chemistry Innovation Ltd, UK (Dr Steve Fletcher)
Innovation depends on companies – BIOCHEM aims to help
create the right tools, processes, information and support for
SME-driven innovation to happen

44. BIOCHEM – background….
Bio-based product market – huge growth potential
One of Europe’s “Lead Markets”
Many societal drivers
o Climate change, energy security, employment, environmental
protection ...
And business drivers
o Growth in demand, cost, sustainability, green consumer demand
....
But also many barriers to innovation in bio-based products
o Lack of awareness of IB throughout the chemical and downstream
sectors
o Lack of confidence to enter a new business with new supply chains
o Companies not well connected to each other, to the technology
base or to their potential supply chains
o Limited access to specialist demonstration and other facilities
o Limited access to specific market expertise and access to
investment capital
o Concern about public perception

45. BIOCHEM – Project Partners
Member Type
Partner Main Role
State
SusChem UK / Chemistry United Innovation Management Agency Co-ordinator + bio-based market assessment and innovation development tools,
Innovation Kingdom development of integrated service package
European chemical sector organization
Cefic Belgium Evaluation of BIOCHEM toolbox, accelerator and Exit Strategy + Dissemination
(SUSCHEM ETP)
Expert Consultants Access to Private
E-unlimited Belgium European Bio-Based Business Generator (Business Plan competitions and VC events
Finance
The Expert Consultants Innovation and access
PNO Consultants Innovation and public funding; Brokerage activities;
Netherlands to Public Finance
Sector innovation expert Italian Federation
Sviluppo Chimica Italy Mentoring Support for implementing SME development plans
Chemical Industry
Expert Consultant Business Planning and Tailor Access to Finance Tools (G2G) ,develop new coordination mechanisms for
Brabo Ventures Belgium
G2G Toolbox regional/national bio-based Investment Funds
SusChem Belgium / Essenscia Belgium National Chemical Sector organisation Select bio-based SMEs, biochem market assessment
University of Manchester UK Expert on LCA Establish knowledge Base on LCA and Links to Available Tools
CPI - Center for Process Coordinator European EEN Chemistry SME Audits, develop Individual Development Plans, Coordinate access to test facilitie
UK
Innovation Cluster and test repository service
SusChem Deutschland / National Chemistry Sector Organisation European On-line Partnering and Open Innovation System, select bio-based SMEs in
Germany
Dechema And owner German partnering database Germany
International expert consultant in
Market Assessment and Needs Assessment, support to chemical sector organizations
Poyry Finland environmental and biotech technologies for
for auditing and mentoring
chemistry
Dutch Organisation for Scientific National Funding and Technology Transfer
Netherlands European Technology Transfer Events, select bio-based SMEs
Research Agency
ASTER Italy Innovation Management Agency European Bio-Based Business Developer, audits, mentoring
IMADe Spain Innovation Management Agency Idenitfy first users, test facilities for proof of concept, audits, mentoring
Madrid Biocluster Spain Regional biocluster organisation Select and Support for biotech SMEs
SusChem Spain / FEIQUE Spain National Chemistry Sector Organisation Select and Support for chemical SMEs
Expert consultant new ICT based business
Fast Track Consulting Belgium Crowdsourcing and Open Innovation System Development
models

46. BIOCHEM – Objectives
Assess the market for bio-based products (report produced and available)
Develop a business support toolbox to help lower the barriers for SMEs to
innovate in this market
Test the toolbox with SMEs through three interrelated activities
o Business plan competitions to identify the best ideas for new bio-based
business
o Support for existing businesses – assessment of the opportunities for at
least 250 SMEs using the toolbox, and production of Individual
Development Plans
o Access to funding – funding needs and opportunities for each SME based
on its Individual Development Plan
Dissemination of information on the bio-based market and the toolbox in
order to increase awareness within the chemistry-using sectors
Develop an exit strategy to ensure the benefits continue beyond the
lifetime of the project

47. BIOCHEM – Summary
Helps to foster bio-based products as one of Europe’s Lead Markets
and communicates the societal and strategic benefits;
Assesses the bio-based products market and communicates its
potential for the chemistry-using sector, both within the industry and
more widely;
Develops integrated tools for providing technical and business
support to reduce barriers to innovation in bio-based products,
particularly for SMEs;
Uses the tools to drive new SME-driven bio-based product ideas;
Aims to deliver to over 250 SMEs to support their innovation activity;
Recommends to EC policy makers an exit strategy to ensure service
and support is available beyond 2013.
A key component of this project is BUILDING NEW SKILLS AT
LOCAL, NATIONAL AND EU LEVELS…..

48. How do we build a bioeconomy?
EU imperatives
FP7 and FP8 research and
innovation funding and
European Innovation
Projects (EIPs)
Developing generic tools for the development of the
bioeconomy and an example (Project BIOCHEM)
Developing new capabilities and skills in biotechnology at
EU and national levels
Informed education of the general public at all levels!

49. We have already discussed some of the capabilities we need to
develop at global, EU, national and local levels in order to build
a bioeconomy……
Innovation
Innovation
“The
Knowledge
Triangle”
h Ed
arc uca
R ese tion
…but there is much more to do on SKILLS DEVELOPMENT
if we are to succeed in building a successful bioeconomy!

50. A recent analysis…
“Global
Knowledge
C GKE Economy”
talents
B- Occupational skills
B
Literacy and basic skills
“Europe’s Skills Pyramid”

51. …a key point….

52. ….and Europe’s “fitness can be compared with
the rest of the world…..

53. A recent key conference…..

54. How do we build a bioeconomy?
EU imperatives
FP7 and FP8 research and
innovation funding and
European Innovation
Projects (EIPs)
Developing generic tools for the development of the
bioeconomy and an example (Project BIOCHEM)
Developing new capabilities and skills in biotechnology at
EU and national levels
Informed education of the general public at all levels!

55. Bioeconomy – Creating Global and
Local Opportunity
Some challenges and issues…

56. Bioeconomy: Creating Global and
Local Opportunity – Drivers….
Climate and associated changes
Waste in production materials, products and
end-use
Fossil fuel depletion
Critical (strategic) mineral and other raw
material availability
INFORMED government regulation, fiscal
measures and green public procurement
EU Research Initiatives

57. Bioeconomy: Creating Global and
Local Opportunity – Issues….
Popular perceptions of “the bioeconomy” and informed
regulation at EU and nation state levels
Balance between food and non-food crop production
(EU and worldwide)
Mature approach to new wild-type and transgenic gene
technologies
Educating the general public away from unfounded
fears in new biotechnologies
Managing the move(s) from old to new bioreactor
technologies and modification of existing plant
Unintended consequences of changing to a bio-based
economy

58. Bioeconomy: Creating Global and
Local Opportunity – Issues….
Need for EU to compete at a global level by harnessing
its own assets and advantages
Managed balances at local and EU levels between food
and non-food crop production (act as a federation!)
Major investment at EU and member state levels in new
technologies, new manufacturing, production and
recycling/disposal systems
Effective use of locally available skills and resources
by operating at an EU-wide level

59. Above all, a bioeconomy is about innovative
bio-based products…..
Business Opportunities Key Enabling Technologies
Transformation to a low carbon Biochemistry/biotechnology with
chemical industry chemistry/engineering
High value products - biopolymers, bio- Bio transformation and bio-engineering
derived chemicals, lignin co-products; techniques; fermentation; gasification
bio-surfactants; bio-lubricants; personal Lignocellulosic technologies
care ingredients Novel biocatalysts, enzymes and micro-
Pharmaceutical and Agrochemical organisms
actives Synthetic Biology
Improved feedstock flexibility Plant cell culture development and plant-
breeding,
Alternative source of aromatics
Integrated Biorefining
Micro-organisms for specific products
Open source chemistry and biology
New platform chemicals
Cell and protein characterisation
New business models
Microbial genomics and informatics
Environmental Benefits Barriers and Issues
Ability to track provenance of biomass in
Reduced dependency on fossil global trading
feedstocks and precious metal catalysts Societal acceptance of GM crops
Contribution to climate change targets Available land mass
Potential for more compostable and Scale of biomass production and
recyclable products transportation
Quality of bio-derived products

60. The future is the BIOECONOMY….
..BUT we still have a long way to go!

61. Acknowledgments
Suschem ETP and Bayer Technology Group
Cefic and EuropaBio
EU BIOCHEM Project Team and the UK CIKTN
Royal Society of Chemistry (RSC) and Gesellschaft
Deutscher Chemiker (GDCh)
UK Industrial Biotechnology Innovation Growth Team
Unilever plc and JLS CONSULT Ltd

62. Helsinki Chemicals Forum 2011
Session on “Bioeconomy – Creating
Global and Local Opportunity”
Opening Comments by Rodney Townsend
Director Strategic Projects Royal Society of Chemistry UK
Chairman 2008-2010 of ETP on Sustainable Chemistry (SusChem)