UK policy overview, Building a high value Bioeconomy, Opportunities from waste

UK Policy overview

Building a high value bioeconomy

OPPORTUNITIES FROM WASTE

Adrian Higson, NNFCC

Prepared for the Scottish Industrial Biotechnology Working Group

28th April 2015

Copyright © NNFCC 2015.

Purpose

• The paper is intended to act as a launch pad for

the new administration.

• It provides;

– A statement of opportunity,

– A presentation of the areas critical for sector

development,

– The current landscape,

– Ongoing and near term planned actions.


http://www.parliament.uk/documents/lords-committees/science-technology/wasteandbioeconomy/Waste-Bioeconomy-Govt-Response.pdf

http://webarchive.nationalarchives.gov.uk/20090609003228/http://www.berr.gov.uk/files/file51144.pdf

http://webarchive.nationalarchives.gov.uk/20090609003228/http://www.berr.gov.uk/files/file51891.pdf

http://www.publications.parliament.uk/pa/ld201314/ldselect/ldsctech/141/141.pdf

Background


Political Perspective

• Context

– Advanced Manufacturing, Circular Economy, Climate Change.

• Aims

– Sustainable economic growth.

– Protect and improve the environment and reduce GHG emissions.

• Objectives

– Development of a coordinated approach across Government and Industry.

– Support business led activity.

• Cross UK Government policy championed through a joint-Ministerial role;

– Minister of State for Business, Enterprise and Energy

– Parliamentary Under Secretary of State for Water, Forestry, Rural Affairs and Resource

Management


Political Vision

• A growing UK bioeconomy.

• Operating waste fed commercial UK plants.

• Focussed entrepreneurial effort maximising scientific and economic potential,

– Delivering environmental benefits.

• Stimulating inward investment.

• UK as a global leader in the waste based bioeconomy

• Supporting advanced manufacturing.

• UK as an exporter of process technology and business models.


Political Mission

• To work with business to stimulate circular economy.

• Promote the use of sustainable carbon waste (in alignment to the bioenergy

strategy).

• Support underpinning research, development and innovation;

– Includes demonstration,

– Includes skills development.

• Support business to lead sector development (right policy, right incentives).

• Ensure coordinated actions.


Scope

• Definition: ‘bioeconomy’ the part of the economy using biological resources

(biomass), or bioprocesses, for the production of value added products, such as

food, feed, materials, fuels, chemicals, bio-based products and bioenergy.

• Feedstock not produced as products,

– Harvest residues, process by-products, wastes.

• Includes the biotechnological processing of non biogenic feedstock.

• Note the report does not use the term ‘waste’ in its legal context.


Economic Potential

• European bioeconomy,

– Turnover €2 trillion, Employment 22 million.

• UK Industrial biotechnology,

– Turnover CAGR 11%, Employment CAGR 5% (2009-2013).

• Large investment opportunity in waste treatment, £5bn by 2020.

• Opportunities in the global advanced biofuels and bio-based chemicals market.

• Current activity

– Commissioned analysis of the ‘Economic impact of Industrial Biotechnology

in the UK’.


Legislative context

• Recognised as a complex landscape;

– Waste regulation (devolved) and renewable energy policy,

– Food first principle (for agricultural land), use of residues and wastes considered

in line with sustainability objectives.

• Restatement of general objectives;

– Continued move to a circular economy and follow waste hierarchy,

– Reduce GHG emissions and other atmospheric pollutants,

– Protect environment through use of Best Available Technologies,

– Promote the use of sustainable low carbon fuels,

– Maximise overall benefits and minimise overall costs.


Legislative challenges

• EU policy uncertainty around circular economy.

• Reconciling regulations with guidelines with rapid technology development.

• Understanding if/how incentives drive or distort technology development and

deployment.

• Action

– Regular reviews of incentive schemes to avoid unintentional distortion of

markets.


Innovation System

• RCUK with Innovate UK best placed to take forward the

research agenda.

• Focus on Key Enabling Technologies,

– Not limited or steered by UK raw materials.

• Need for skills provision to keep pace sector growth.

• Action

– Cogent commissioned review of skills training,

demand and gaps in provision.


Innovation System

• Key areas,

– Partnerships, pilot and demonstration

plants, Finance.

• Extensive networking through KTN and NIBB.

• Significant IB funding through the IB Catalyst.

• Action

– IB Catalyst portfolio will be monitored

for effectiveness in supporting sector

development.


Innovation System

• Recognised need of accessible Pilot plants.

• Green Investment Bank focus of waste recycling.

• Actions

– Commissioned study into availability and

status of IB processing plants and

equipment.

– GIB detailed exploration of investment

opportunities in recycling and

reprocessing market.


• Build advanced manufacturing capability.

• Better understand investment drivers.

• Action

– Continue to engage industry to

understand inward investment decisions

– Potential for waste and the bioeconomy as

part of Government ‘2020 Export Drive’.

Export & Inward Investment


Benchmarking, Sustainability and Data

• Identifying and adopting international best practice.

• A recognition of the need for separated, clean and consistent feedstock.

• The need for data on available feedstock.

• Actions

– IEEP have been commissioned to review the international landscape and

provide policy recommendations.

– Work to encourage and improve the uptake of Edoc. Review how it can be

used and if alternative approaches are required

– Gather data on feedstock availability (outside of Edoc).


Conclusion

• The report represents a starting point, the economic potential is not in question

• Government has a role;

– Supporting mechanisms for legislation navigation,

– Provision of incentives with minimal market distortion,

– Maintain research base and ensure skills evolve,

– Provide funding, finance and supporting infrastructure,

– Create strong innovation ecosystem,

– Provide data on feedstock supply,

• Commitment of Government to work with partners on long term objectives.