dr. dr. h.c. christian patermann director ret., eu-commission, member of the 1st bioeconomy council,...

Dr. Dr. h.c. Christian PatermannDirector ret., EU-Commission, Member of the 1st Bioeconomy Council, Germany

Ravello, 17th of June 2015

Europe on its way into the

biobased Economy –

Hype or Reality ?

1

What are the main challenges in food and

agriculture for the next decade

in Europe and maybe in the world,

including the impact on the environment ?

2

Increase of worldwide demands for food, feed, fibre and fuels

REASONS:

Continuously growing world population, but slowing down in the next 30 years; growing use of oil for energy, mobility, transport and other purposes

Growing wealth in US, Canada, Europe, BRICK,, MISTand so-called ‘After 11 countries‘:increase of meat consumption, dairy products, fats, energy and water intensive food, for example vegetables, horticultural products, fruits, fish, luxury goods and services, with a strong emphasis on health

Growing demand for micronutrients, like iodine, zinc and iron

Growing dynamics of middle classes with new pattern of food, nutrition and life styles

3

Decrease of available arable land worldwide

Areas to be cultivated per person will be reduced by 50 % until 2020 (various impact on plant and livestock production)-> Only one third of cultivated land available per capita compared with 1950 !

This trend is going to continue, even worsened by continuous soil erosion, desertification and urbanization activities all over the world, including wrong soil and water management, leading i.e. to more processed food, more energy consumption and heavier losses

4

Sustainable increase of yield per hectare (increase in crop and livestock productivity)

Sucessfully combating plants and animal deseases, also in a preemptive way

Measures of resources efficiency along the whole food-feed-chains

Use of hitherto not usable or accessible arid or semi-arid land by plants and animals (deforestation no solution !)

Increased use of any kind of existing or dedicated waste based on biological resources (incl. animal‘s waste)

Increased use of existing ligno-cellulosic biomass

Increased use of microalgae and other ocean seas-potentials5

The challenge: How to bridge the gap between offer and

demand ?

Conclusion:

We need not only a Sustainable Crop

Production Intensification (SCPI),

but also a SLPI (Sustainable Livestock

Production Intensification) !

6

The challenge: How to bridge the gap between offer and

demand ?

Increased storage capacities for water, food, feed and fodder

Decrease of pre- and post-harvest losses in agriculture (60% in Russia, 35% in India etc.)

Decrease of other losses along the whole food chain (appr. 20% in Europe).Losses in the feed chain have not yet been seriously examined !

THUS A BOUQUET OF MEASURES WILL BE NECESSARY TOBRIDGE THE GAP !

7

Conclusions

Decrease losses along various chains

Increase yields

Increase storage capacities

But where are the limits ?

8

There are inherent contradictions

and/or conflicts to be understood

and to be overcome

9

Conflicts

Growth – higher yield of plants and livestock vs. Climate friendliness

Food vs. Fuel Meat-based food vs. Non-meat-based food Climate vs. Food - Health - Well-Being Human health vs. Environment Animal welfare and animal health vs. Feeding the world vs.

Consumers acceptance and sustainability Small landholders vs. intensive land use systems

These conflicts will only be overcome by new knowledge created by research on plants and animals, and the environment

10

Bioeconomy in the EU

On 13th February 2012 publication of the first strategy of this kind for Europe:

“Innovating for Sustainable Growth:

A Bioeconomy for Europe”

12

INVESTMENTS IN RESEARCH, INNOVATION AND SKILLS Ensure substantial EU and national funding for bioeconomy and innovation Increase the share of multi-disciplinary and cross-sectoral research and innovation Promote the uptake and diffusion of innovation in bioeconomy sectors; create feedback

mechanisms on regulation and policy Build the human capacity required to support growth and integration of bioeconomy

sectors

Stakeholders

EU Institutions

International organisations

Member StatesREINFORCED POLICY INTERACTION AND STAKEHOLDER ENGAGEMENT Create a Bioeconomy Panel to enhance synergies and coherence between policies;

foster participation of researchers, end-users, policy- makers and civil society Establish a Bioeconomy Observatory and develop forward-looking and modelling tools Support the development of regional and national bioeconomy strategies Develop international cooperation to jointly address global challenges (e.g. food security,

climate change)

ENHANCEMENT OF MARKETS AND COMPETITIVENESS IN BIOECONOMY SECTORS Provide the knowledge-base for sustainable intensification of primary production; Promote the setting up of networks for integrated and diversified biorefineries; establish a

PPP for bio-based industries Support expansion of new markets; facilitate green procurement for bio-based products Develop science-based approaches to inform consumers about product properties

The Bioeconomy Strategy and Action Plan

Recommendations of the EU in the Recovery report on Europe 2012 (12-10-10):

“Europe needs a new industrial policy to regain growth and economic recovery !”

4 Priorities:

Development of new markets for Advanced process technologies (“Clean production”)Seven so called key technologies, i.e. industrial biotechnologyBiobased productsFor construction and raw materials

Recommendations of the EU in the Recovery report on Europe 2012 (10.10.12):

These recommendations were made more concrete in the Communication „For a European Industrial Renaissance“ of March, 2014.

Besides „Advanced Manufacturing, Key Enabling Technologies (KET), Clean Vehicels and Vessels, Biobased Products“ are mentioned among the priority areas and activities for such an European Industrial Renaissance.

Interestingly enough energetic and non-energetic use of biomass should be equally supported according to this communication.

Bioeconomy in the EU

HORIZON 2020 – the new framework programme of the EU 2014 – 2020

Proposed funding (€ million, 2014-2020)

Additional funding for nuclear safety and security from the Euratom Treaty activities (2014-2018)

Health, demographic change and wellbeing 7 472

Food security, sustainable agriculture and forestry, marine and maritime and inland water research and the Bioeconomy

3 851

Secure, clean and efficient energy * 5 931

Smart, green and integrated transport 6 339

Climate action, environment, resource efficiency and raw materials

3 081

Inclusive, innovative and reflective societies 1 310

Secure societies 1 695

Science with and for society 462

Spreading excellence and widening participation 816

1717

Europe 2020 Priorities

Tackling Societal Challenges- Health, demographic change and wellbeing- Food sec., sust. agri., mar. res. & bioeconomy- Secure, clean and efficient energy- Smart, green and integrated transport- Supply of raw materials, resource efficiency

and climate action- Inclusive, innovative and secure societies

Creating Industrial Leadership and Competitive Frameworks

Leadership in enabling and industrial technologies (Biotechnology,…)

Access to risk finance Innovation in SMEs

Excellence in the Science Base Frontier research (ERC) Future and Emerging Technologies (FET) Skills and career development (Marie Curie) Research infrastructures

Common rules, toolkit of funding schemes

European Research Area

Simplified access

International cooperation

Coherence with other

EU and MS actions

EIT will contribute to addressing these challenges

Shared objectives and principles

Horizon 2020: Framework Programme for

Research and Innovation

Bio-EconomyHORIZON 2020

Specific Programme for Societal Challenge 2:

FOOD SECURITY, SUSTAINABLE AGRICULTURE, MARINE and MARITIME RESEARCH and the BIO-ECONOMY

5 Topics:Sustainable AGRICULTURE and FORESTRYUnlocking the potential of AQUATIC LIVING RESOURCESCross-cutting MARINE and MARITIME RESEARCHSustainable and competitive bio-based INDUSTRIES and supporting the development of an EUROPEAN BIO-ECONOMYSustainable and competitive AGRI-FOOD sector for a safe and healthy diet

• A new boost for jobs, growth and investment

• To mobilise up to € 315 billion in additional public and private investment in the real economy over the next three years

• A resilient energy union with a forward-looking climate change policy

• We need to diversify our energy sources, and reduce the high energy dependency of several of our Member States

• A deeper and fairer internal market with a strengthened industrial base

• It would be naïve to believe that growth in Europe could be built on the basis of services alone. We need to bring back industry's weight in the EU's GDP back to 20% by 2020 from less than 16% today

A new start for EuropeMy Agenda for Jobs, Growth, Fairness and Democratic Change

The way forward for the EU Bioeconomy

• Boost investment in the Bioeconomy: in particular through synergies with ESIF, EIB and with support of the regions through smart specialisation strategies

• Develop new Bioeconomy value chains and markets: identify and address regulatory barriers or gaps, financial barriers or needs

• Address knowledge gaps

• Increase stakeholders engagement

Public Private Partnership supporting R&I for bio-based industries:

•Partners: European Commission and Biobased Industries Consortium (BIC)

•Budget: € 3.705 billion (about 75% from industry)

•Implementation: - Principles of openness,

transparency and excellence- Horizon 2020 rules for

participation

•Objectives: At least 5 new bio-based value chains for Europe based on 2nd generation/advanced biorefineries.

Bio-based Industries Joint Undertaking

www.bbi-europe.eu

Types of action

• Research and Innovation actions are industry-driven and aim at filling the gaps in technological innovations. RIA focus on the development of specific technologies and concepts needed to realise the value chains, proving the principles in pilot installations up to TRL 5.

• Coordination and support actions address cross-sectorial challenges and support value chains through knowledge development (studies) and networking.

• Demonstration projects corresponding to TRL levels 6 to 7 aim to validate the technical and economic viability of a new or improved technology, product, process, service or solution in an operational environment.

• Flagship projects mainly include activities corresponding to TRL level 8. Flagships are the first units of value chains operating at an economically viable scale. Often such projects involve a validation of technical and economic performance at system level in real life operating conditions provided by the market.

How is the Biobased Economy implemented in various EU Member States ?

3 Different Stages of Implementation: Integrated concepts and strategies with different levels

of integration (AT, BE (Flanders), DE, FR, IR, NL, DK, NO, SE, SF, E (planned))

No integrated strategies BUT specifically Bioeconomy-related policies and activities (CZ, UK, IT)

More or less no specific acitivities and policies, but acknowledgement of its political importance and potential (EE, GR, LT, SI, PT)

23

Bioeconomy in the EU Member States

When talking about the Bioeconomy expressions like „Green growth“ (i.e. Denmark), „Green Economy“ (i.e. Ireland) or just „Industrial Biotechnology“ are frequently used instead of the notion Bioeconomy.

Most advanced within the EU: Germany and its „Nationale Forschungstrategie Bioökonomie 2030“ and as the first of its kind their „Policy Strategy of a German Bioeconomy“ of 17th July 2013, and the Netherland‘s „Biobaseerde Economie 2010-2015“.


Sustainable growth from bioeconomy: The Finnish Bioeconomy Strategy“, May 2014.

Norway launched a 10 years programme for 300 Mio.€ BIONAER and is preparing a comprehensive bioeconomy strategy until late. An integrated bioeconomy research institute will be established and take up ist activities in 1th of July 2015.


In its 10 years future programme for investments (35 Bill. Euro) France mentions Biotechnologies and Bioresources as one of its 11 top topics. France approved the bioeconomy as important programme within their new RTD stragey of march, 2015, named: „Bioéconomie au service de transition énergétique et écologique“. In addition France prepares a comprehensive national policy strategy on the bioeconomy under the auspices of the Ministry of Agriculture to be published still in 2015.


In Austria a new research initiative „Bioeconomy“, jointly undertaken by research, science and economy has started. The coalition agreement of the new Austrian government supports it, November 2013. 1st Stakeholder Conference in Graz, September 2014.

Flanders published in January 2014 „Bioeconomy in Flanders – the vision and strategy of the Government of Flanders for a sustainable and competitive Bioeconomy in 2030“. An action plan, precising the financial outlook of this strategy will follow 2015.

Members of the European Union

Italy is examining the elaboration of corner stones or even a strategy on the bioeconomy for Italy for the end of 2015.

Spain has formed a task force to work out a national bioeconomy strategy, probably until middle 2015 under the leadership of the Ministry of Economy, etc..


The Nordic Union, under Icelandic chairmanship has started at the beginning of 2014 to implement its common bioeconomy strategy (NordBIO) with five projects ranging from wood biomass in the Nordic Bioeconomy to creativity as an educational and scientific tool with an amount of approx. 10 Mill. Danish Crowns. The Nordic Union has also invited the Baltic Regions for a workshop on the bioeconomy to think about pushing this initiative very recently. This trend was confirmed in a conference in Berlin in September 2014 and in Warsaw in March 2015.


In March 2015 the West Nordic countries Iceland, Greenland and the Faroer Islands approved an action plan for bioeconomy in these states.

In Scotland a new regional strategy on industrial biotechnology and a roadmap for biorefineries were approved in 2014 foreseeing impressive financial means and investments.

In Ireland a task force has been formed to report directly to the Irish prime minister on a study on the potentials of bioeconomy for Ireland with concrete recommendations until the end of 2015.


In Poland a new comprehensive national platform on Bioeconomy (stakeholder platform) has been formed in 2015 with a strong emphasis on the Bioeconomy in Polish regions.

There is a very good overview on the Bioeconomy policies and strategies in all these seven states issued in a report from the German Bioeconomy Council published on 15th January 2015.


In Germany apart from the National Research Strategy and the Policy Strategy on the Bioeconomy from July 2013, the German regions North Rhine-Westphalia and Baden-Wurttemberg have issued their own regional strategies, resp. corner stones for such a strategy in Summer 2014. In B-W the priorities of their future research are: biogas, lignocelullosic based value chains, integrated use of algae and modelling (best practices).

Other German regions or Laender like Mecklenburg-Vorpommern or Hessen might follow very soon.

National Bioeconomy Programme of Malaysia, Oct./ Nov. 2012

Bioeconomy in the US, Russia, Malaysia etc.

Outside Europe

South Africa has published her own bioeconomy strategy in November 2013 with a strong emphasis on the potentials of South Africa using in particular the advantages of the functional biodiversity of biological resources there.

In the U.S. in addition to the biopreferred programme and the blue print Bioeconomy strategy amendments to the Farm Bill are being finalised. This will lead to an equal treatment of energetic and non-energetic use of biomass also with respect to available funds. A target which Europe is still far away from.

Recent Industrial Bioeconomy Developments in Europe

Practical examples for innovative biobased products out of the C-toolbox of nature

Polyethylenfuran (PEF) bottles by YXY-technology, replacing hitherto used PET bottles, 100% biobased, reaching the market until 2020. spectacular competition Coca-Cola – Pepsi. also ALPLA plant Alwin Lehner GmbH together with

Avantium (NL), Coca-Cola and Danone are in the development team

RESULT: improvements of quality, weight, catchment of C02 etc.


Succinic Acid: basis for the multitude of bioplastics, plastizisers, biosolvents, polyethene Competition who builts the first and largest

demonstration facilities (DSM, Roquette, BASF, Lanxess (Sarnia location in CA and others)

Opening of the first commercial production plant of 10,000 tons/ y by BASF and Puray in Montmelo, Spain in January 2014

Planned: commercial start of a plant of 30,000 tons/ y by BioAmber and Mitsui in Sarnia, CA; Beginning of 2015

Biobased pthalat-free plastizisers for plastics, construction, automotive industries by Evonik

Essential amino acids as feed additives (methionine, lysine) by Evonik

New fibres („Cellulocis chemicals“) for cloth industries, adhesives and other purposes

Levulinic Acid on the basis of by-products of sugar production, mainly developed in Italy (Bio-ON and Eridania Sadam) and Austria (Univ. of Vienna)


Biobased BDO (1,4-Butandiol und Butandien) for automotive and chip industries (BASF, Genomatika).

Biokerosine (biobased marine diesel and aviation gas) and Biorubber (Russian dandelion), other option: Usage of Guayule by Versalis, subsidiary of Eni, Italy. Strong emerging competition with Asian producers.

Biopolymers and Biomonomers as basic chemicals

Lauric acid as replacement for fossile polyamides. Evonik, demo plant in Slovakia.


Bran, new fibres, lignin, even glycerine as feedstockInnovative resinsPlastizisersBiosurfactantsSpongesNew cosmetics De-icing materials for aviation


Arkema, subsidiary of Total, F, started usage of castor oil for the replacement of fossile polyamides for the production of several consumer goods, like skying boots, sun glasses, electronics etc.

Fischer Bio-PA Plugs: first 100% biobased Fischer-plug Universal UX) on the market made out of biobased polyamides out of castor oil, as well as first biobased mortar.

Essential amino acids as feed additives (methionine, lysine) -> Evonik

41


First biobased closures for gabled roof packaging by TetraPak made out of sugar cane residues.

Food and ketchup producer Heinz: residues of tomato skin as basis for biological plastics for wiring brackets and storage bin in cars.

New biobased cable protection tubes with higher bending cycle and temperature resistance and other environmental advantages in particular for applications in the industrial robotic industry (developped by Reiku in Germany), made from castor oil.

42


Conclusions-1 Bioeconomy is no more limited to research but has developed into a

strategy and policy with heavy emphasis on innovation. This has not yet been sucessfully acknowledged by all stakeholders and

policy makers. The production parts of the various value chains need to be closer

linked to the processing and back end of the value chains like norms, standards, markets, etc., including the need or the same fair conditions of public support for all four elements: Food, Feed, Fibre, Fuels.

The Bioeconomy is an important, but rather limited activity and has not reached the level of mass acknowledgement.

Conclusions -2

There is still a lack of coordination all over Europe so that the dangers of double work and double developments are still evident.

There is a threat that outside Europe, in particular in North and South America but also parts of Asia, the Bioeconomy will be quicker implemented than in the old continent, in particular because of more courageous and more speedy deciscion taking in building up industrial bioeconomy complexes and using new innovative ways of funding, including the potentials of availabe public funds and investment in the formate of state funds.

Thank you very much for your attention !

dr. dr. h.c. christian patermann director ret., eu-commission, member of the 1st bioeconomy council,...

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