Bridging the bioeconomy innovation gap - The Bio Base NWE project

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NNFCC: The Bioeconomy Consultants

Bridging the Bioeconomy Innovation Gap

The Bio Base NWE Project

Adrian Higson PhD

Head of Biorefining

12 June 2012

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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.

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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

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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

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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

http://www.google.co.uk/url?sa=i&rct=j&q=eu+flag&source=images&cd=&cad=rja&docid=tlanp6-f5HNbHM&tbnid=jPPmIfhjK6G4EM:&ved=0CAUQjRw&url=http://www.guardian.co.uk/commentisfree/cif-green/2009/sep/23/irish-green-party&ei=7mFIUZenFKKI0AW-voGIAQ&bvm=bv.43828540,d.d2k&psig=AFQjCNEymGem-LPeEzs718qaPw33AFykUQ&ust=1363784548550117

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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

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0

50

100

150

200

250

300

Feb

-93

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Oct

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Jun

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Feb

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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.

http://www.imf.org/external/np/res/commod/index.asp

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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

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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.”

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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

//upload.wikimedia.org/wikipedia/commons/f/ff/Procter_and_Gamble_Logo.svg

//upload.wikimedia.org/wikipedia/commons/a/a6/Logo_NIKE.svg

//upload.wikimedia.org/wikipedia/en/b/bf/Pepsico_logo.svg

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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

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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

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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

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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

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Project

Feedstock Supply

Market Access Technology

Open Innovation

Supply agreements

Co-development projects Off-take agreements

Joint ventures

Good examples

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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/

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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

http://www.nnfcc.co.uk/

http://www.tcbb.ie/

http://www.clib2021.de/

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Process demonstration and scale up

http://www.google.co.uk/url?sa=i&rct=j&q=centre+for+process+innovation&source=images&cd=&cad=rja&docid=WtF0K3zRXMIP6M&tbnid=FO3gxMNtETQncM:&ved=0CAUQjRw&url=http://www.airto.co.uk/list/cpi.html&ei=yI5IUcf9LPDZ0QWQpYGgDA&bvm=bv.43828540,d.d2k&psig=AFQjCNFY2bc_YVGMTokYnaGYeWlpbowBXg&ust=1363796023358302

http://www.google.co.uk/url?sa=i&rct=j&q=Beacon+Centre+biorefinery&source=images&cd=&cad=rja&docid=leu7LPRpGBjDtM&tbnid=9WiMGPVbw0FOaM:&ved=0CAUQjRw&url=http://beaconwales.org/en/events/beacon-events&ei=Ao9IUYjrG8_s0gX824CYDQ&bvm=bv.43828540,d.d2k&psig=AFQjCNFJbZKQ-_WAucwPTDiMJL-aWrMkJQ&ust=1363796082517903

http://www.google.co.uk/url?sa=i&rct=j&q=Biorenewables+Development+Centre&source=images&cd=&cad=rja&docid=exQhdm1pCv489M&tbnid=HN7C58RH34bE-M:&ved=0CAUQjRw&url=http://scy.co.uk/news/new-opportunities-biorenewables-development-centre&ei=NI9IUZufIZCY0AXjyoBo&bvm=bv.43828540,d.d2k&psig=AFQjCNFekrzNfEOMzqOKfvpnVVOeIZH0cQ&ust=1363796143253671

http://www.google.co.uk/url?sa=i&rct=j&q=Biorefinery+centre+IFR&source=images&cd=&cad=rja&docid=1v2d1kRAl6OZyM&tbnid=QzoBM-1ZirAk4M:&ved=0CAUQjRw&url=http://www.ifr.ac.uk/events/openday/index.htm&ei=349IUca-BorF0QXG9ID4BA&bvm=bv.43828540,d.d2k&psig=AFQjCNHGkh3vh6aG6nGE0_8WA5upPk_Vtg&ust=1363796287939577

http://www.google.co.uk/url?sa=i&rct=j&q=Bio+Base+Europe&source=images&cd=&cad=rja&docid=z3qqyST427Ob-M&tbnid=s1UWrr5CEzEJiM:&ved=0CAUQjRw&url=http://biobase.presite.be/biobase/en/content/general-info&ei=4pFIUea0HKKq0QWytYHAAg&bvm=bv.43828540,d.d2k&psig=AFQjCNEpXyjso_vC6hiH5NTeob3tjlaxqg&ust=1363796819093318

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http://www.nnfcc.co.uk/

http://www.tcbb.ie/

http://www.clib2021.de/

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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

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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

mailto:[email protected]