Bio.be policy document Towards a Belgian and Regional Strategy for the Biobased Economy June 2013 CONTENT SUMMARY ......................................................................................................................................................................................... 3 1. INTRODUCTION ...................................................................................................................................................................... 4 2. CONTEXT .................................................................................................................................................................................. 5 3. THE EUROPEAN BIO-ECONOMY STRATEGY ...................................................................................................................... 7 3.1. Introduction to the Europe an Bio-economy Strategy ............................................................................................... 7 3.2. Major biobased economy related actions in the EU strategy ................................................................................. 8 4. BIOBASED ECONOMY STRATEGIES IN OTHER MEMBER STATES AND REGIONS .................................................... 10 4.1. Germany............................................................................................................................................................................ 10 4.1.1. National Bio-economy Research Strategy 2030 ............................................................................................... 10 4.1.2. The Bio-Economy Council ..................................................................................................................................... 10 4.1.3. Regional clusters .................................................................................................................................................... 11 4.2. The Netherlands .............................................................................................................................................................. 12 4.2.1. Vision of the Dutch first Rutte Cabinet (2010 – 2012)..................................................................................... 12 4.2.2. Innovation Contract Biobased Economy ............................................................................................................ 13 4.2.3. BE-BASIC................................................................................................................................................................... 14 4.3. Sweden .............................................................................................................................................................................. 15 4.4. Denmark............................................................................................................................................................................ 16 4.5. Finland ............................................................................................................................................................................... 16 4.6. Ireland................................................................................................................................................................................ 17 4.7. France ................................................................................................................................................................................ 17 4.7.1. At national level...................................................................................................................................................... 17 4.7.2. Regional clusters .................................................................................................................................................... 18 4.8. Norway .............................................................................................................................................................................. 19 4.9. UK ....................................................................................................................................................................................... 19 4.10. Italy..................................................................................................................................................................................... 21 4.11. Summary ........................................................................................................................................................................... 21 1 5. THE BIO-ECONOMY STRATEGY IN THE USA.................................................................................................................... 22 6. THE BIOBASED ECONOMY IN BELGIUM AND THE REGIONS – SWOT ANALYSIS..................................................... 23 7. TOWARDS A BELGIAN AND REGIONAL STRATEGY FOR THE BIOBASED ECONOMY: RECOMMEN DATIONS ... 31 7.1. Need for an integrated and holistic approach .......................................................................................................... 31 7.2. Feedstock supply and availability................................................................................................................................ 32 7.3. Research and innovation ............................................................................................................................................... 34 7.4. Stimulating production and consumption ................................................................................................................. 35 7.5. Visibility and awareness ................................................................................................................................................ 36 8. OVERVIEW OF THE MAIN RECOMMENDATIONS........................................................................................................... 37 2 Summary The objective of this document is to propose a framework to policymakers for an integrated strategy for a competitive and innovative bio-economy in Belgium and it’s Regions. The focus is the so called biobased economy (from renewable feedstock to biobased products). The biobased economy refers to a future society that is no longer wholly dependent on fossil fuels and industrial raw materials. Biobased products are a substitute for certain fossil fuel -based products, and could play a valuable role in contributing to a more sustainable society, with the potential to reduce greenhouse gas emissions, generate less waste, and use less fossil fuel and water. The European Commission recently published a strategy and action plan “Innovating for Sustainable Growth: a Bio-economy for Europe”. Chapter 3 of this report takes a closer look to this strategy, and analyses what is in for the biobased industries, so the future Belgian or Regional strategies are in line with the European one. Many countries and regions in Europe have already developed or are developing biobased economy strategies and action plans. Chapter 4 gives an overview of the most important activities in European member states with the aim to define good practices and benchmarks. Earlier this year, the White House in the USA published it’s “Bio-economy Blueprint”. In chapter 5, we will have a closer look to what the United States is proposing. An efficient strategy for Belgium and it’s Regions should build on the current strengths en develop further the possible opportunities, taking into account our weaknesses and possible threats. The detailed SWOT analysis in chapter 6 should support this. Based on previous, chapter 7 describes in detail some recommendations for a future Belgian and Regional strategy for the biobased economy. The recommendations are linked to the need for an integrated and holistic approach feedstock supply and availability research and innovation stimulating consumption and production visibility and awareness Finally, in chapter 8, a table summarises the key recommendations and the estimated impact. 3 1. INTRODUCTION The objective of this document is to develop a framework for a future Bio-economy strategy in Belgium and it’s Regions. The focus is the so called biobased economy (from renewable feedstock to biobased products). Today, several definitions circulate to describe the bio-economy. According the OECD, and also generally used in the US, the bio-economy is the total economic activity from all sectors of the biotechnology sector (pharmaceuticals, food & agriculture, industrial biotechnology) . According the European Commission however, the bio-economy encompasses the sustainable production of renewable biological resources and their conversion and that of waste streams into food, feed, biobased products such as bioplastics, biofuels and bioenergy. It includes agriculture, forestry, fisheries, food and pulp and paper production, as well as parts of chemical, biotechnological and energy industries. The so-called biobased economy is the conversion of renewable feedstock (biomass and organic waste) into biobased products. It can be seen as the non-food pillar of the bio-economy, an economy where the basic building blocks for industry and the raw materials for energy are derived from plant -based (i.e. renewable) sources, often processed using “industrial biotechnology”. 4 2. Context Biobased industries are industries, which either use renewable resources and/or apply biobased processes in their production processes (e.g. food, pulp and paper and other forest -based industries, starch, biotechnology and chemical industries, eco- and energy industries). The OECD estimates that biotechnology's share of all chemical production alone is likely to increase from less than 2% in 2005 to 25% in 2025. Significant increase in economic activity is expected to arise from the innovation potential of industrial biotechnology and biorefineries, which provide the opportunity to develop new biobased industries, transform existing ones, and open new markets for biobased products A special focus is foreseen for biorefineries. Biorefineries aim to produce multiple biobased products and fuels using renewable resources as a carbon source and biobased processes. Ideally, they should adapt their inputs and outputs in response to market supply of different types of biomass and wastes and to the demand for biobased products, biofuels and bioenergy. Biorefineries should adopt a cascading approach to the use of their inputs, favouring highest value added and resource efficient products, such as biobased products and industrial materials, over bioenergy. The principle of cascad ing use is based on single or multiple material uses followed by energy use through burning at the end of life of the material, including taking into account the greenhouse gas emissions (GHG) mitigation potential. By -products and wastes from one production process are used to feed into other production processes or for energy. Biorefineries can thus contribute to the principles of a "zero-waste society". In order to enhance the competitiveness and growth and maintain the leading role of European industries in the sector of biorefineries, it will be necessary to support pilot and demonstration activities for up-scaling of products and processes. Supply of sufficient quantities of good quality renewable raw materials at a competitive price is critical for the success of biorefineries. A supply chain for feedstock needs to be developed across Europe that allows compensating fluctuations in one feedstock, by using another. This includes improving infrastructures for storage and transport, and developing the necessary logistics. Cascading use of biomass should be possible at regional, national and European level. Every year, more than 300 million tonnes of biodegradable household and household -like wastes, industrial wastes and other wastes are generated in the EU and remain largely unexploited. The bioeconomy offers a wide range of added value solutions for the prevention and management of biodegradable waste streams. As with biomass, waste may not always be directed to the most efficient and highest value uses. Life cycle thinking and prospective studies will be critical in determining which use of a waste will be the most efficient in a given context. Industrial biotechnology can contribute to making production processes more resource efficient and environmentally friendly. Synthetic biology is highly likely to influence a wide range of areas of our economy and society. Designing and constructing artificial micro-organisms for a given application could have a huge potential for biotechnological applications, such as protein design and production, metabolic engineering, carbon fixation, biomass production, biocatalysis, biofuels and bioremediation. 5 Systems biology aims to understand the operation of biological systems rather than its component parts. Combined with systems engineering it can assist product and process development, for example through virtual or in silico set-ups that predict process conditions. This reduces the need for experiments and saves cost and time. Nanobiotechnology develops nanotechnology products with the basic components of biomolecules and living cells. This provides innovative scientific and technical approaches to address existing or to create new applications, especially in the area of biocatalysis, which will contribute to the development of innovative and cost-efficient biobased products and solutions. Biobased products are wholly or partly derived from materials of biological origin. The advantages of these products over conventional products range from more sustainable production p rocesses, to improved functionalities and characteristics. The EU is taking an active role in driving the development of clear and unambiguous standards for biobased products at European and international level (e.g. on biobased content, biodegradability, sustainability and functionalities) and ensure their consistency across sectors. Standards are also central for the development of labels for biobased products. Sustainability criteria for biobased products and biofuels should be comparable and take into account factors, such as the calculation of GHG emissions and criteria for sustainable biomass production. Labelling can play an important role for the commercialisation of biobased products. They provide consumers with clear information on the environmental performance of the products and guide their purchasing behaviour towards sustainable choices. Labels can also be critical for the uptake of biobased products by green public procurement. Biobased products create entirely new markets or enter markets domi nated by well-established petrochemicals suppliers. This implies specific challenges both for start-ups and mature companies wanting to enter a biobased market either as a supplier or a customer. A specialised support infrastructure for SMEs across the EU would be beneficial. An EU wide approach bringing together suppliers and potential users downstream in the biobased products value chain would increase chances to alleviate market failures and earn societal benefits earlier, contributing to a lead market advantage. The BIOCHEM1 project funded under the EU Competitiveness and Innovation Programme (CIP) serve s as a pilot for such services. 1 http://www.biochem-project.eu/ 6 3. THE EUROPEAN BIO-ECONOMY STRATEGY 3.1. Introduction to the European Bio-economy Strategy In February 2012, the European Commission has adopted a strategy and action plan “Innovating for Sustainable Growth: a Bio-economy for Europe 2” to shift the European economy towards greater and more sustainable use of renewable resources. This bio-economy strategy is part of the Europe 20203 flagship initiatives "Innovation Union 4" and "A Resource Efficient Europe 5 ". The goal is a more innovative and low-emissions economy, reconciling demands for sustainable agriculture and fisheries, food security, and the sustainable use of renewable biological resources for industrial purposes, while ensuring biodiversity and environmental protection. The strategy and action plan outlines a coherent, cross-sectoral and inter-disciplinary approach to the issue with three key pillars, with as main actions: Investment in research, innovation and skills for the bio-economy: 1. Ensure substantial EU and national funding as well as private investment and partnering for bio-economy research and innovation. Support bioclusters for partnering with the private sector. 2. Increase the share of multi-disciplinary and cross-sectoral research and innovation in order to address the complexity and inter-connectedness of societal challenges by improving the existing knowledge-base and developing new technologies. 3. Promote the uptake and diffusion of innovation in bio-economy sectors and create further feedback mechanisms on regulations and policy measures where necessary. 4. Build the human capacity required to support the growth and further integration of bio economy sectors by organizing university fora for the development of new bio-economy curricula and vocational training schemes. Development of markets and competitiveness in bio-economy sectors: 5. Create a Bio-economy Panel that will contribute to enhancing synergies and coherence between policies, initiatives and economic sectors related to the bio-economy at EU level, and encourage the creation of similar panels at Member State and regional level . 6. Establish a Bio-economy Observatory in close collaboration with existing information systems that allows the Commission to regularly assess the progress and impact of the bioeconomy and develop forward-looking and modelling tools. 7. Support the development of regional and national bio-economy strategies by providing a mapping of existing research and innovation activities, competence centres and infrastructures. 2 http://ec.europa.eu/research/bioeconomy/press/press_packages/index_en.htm http://ec.europa.eu/europe2020/index_en.htm 4 http://ec.europa.eu/research/innovation-union/index_en.cfm 5 http://ec.europa.eu/resource-efficient-europe/ 3 7 8. Develop international cooperation on bio-economy research and innovation to jointly address global challenges, such as food security and climate change, as well as the issue of sustainable biomass supply. Reinforced policy coordination and stakeholder engagement: 9. Provide the knowledge-base for sustainable intensification of primary production. Improve the understanding of current, potential and future availability and demand of biomass (including agricultural and forestry residues and waste) across sectors. Support the future development of an agreed methodology for the calculation of environmental footprints, e.g. using life cycle assessments (LCAs). 10. Promote the setting up of networks with the required logistics for integrated and diversified biorefineries, demonstration and pilot plants across Europe, including the necessary logistics and supply chains for a cascading use of biomass and waste streams. 11. Support the expansion of new markets by developing standards and standardized sustainability assessment methodologies for biobased products and food production systems and supporting scale-up activities. Facilitate green procurement for biobased products by developing labels, an initial European product information list and specific trainings for public procurers. Contribute to the long-term competitiveness of bio-economy sectors by putting in place incentives and mutual learning mechanisms for improved reso urce efficiency. 12. Develop science-based approaches to inform consumers about product properties and to promote a healthy and sustainable lifestyle. 3.2. Major biobased economy related actions in the EU strategy Investment in research, innovation and skills o Increase EU public funding for research and innovation on bio-economy. Strengthen coherence and synergies between EU and national/regional programmes. o Provide scientific advice for informed policy decisions on benefits of bio -economy solutions. o Support knowledge acquisition and technology exchange, advisory and support services, cooperation and training opportunities among all actors of the supply chain and end users, for example new businesses in the biobased product. o Promote the uptake and diffusion of innovation in bio-economy sectors. o Stimulate the development of bio-economy skills in higher education. Reinforced policy interaction and stakeholder engagement o Engage with civil society and promote informed public debates on bio-economy issues, research and innovation activities and societal implications, through stakeholders 8 o o o o o o discussion platforms involving scientists, entrepreneurs, policy makers and civil society at large. Improve availability and quality of information on bio-economy products and processes, and on their socio, economic and environmental impacts, to facilitate informed societal choices. Review regularly the progress and delivery of EU and national/regional bio-economy strategies. Produce regular foresights and forecasts and updates of e x-ante impacts assessments for the bio-economy, contributing to policies' orientations as well as research and innovation directions. Contribute to the mapping of EU, national and regional bio-economy policies, research and innovation capacities, activities and infrastructures, as well as public and private investments in research and innovation. Support the development of regional and national bio-economy strategies. Promote international cooperation and synergies among R&I programmes related to the bio-economy in the EU, Member States and strategic third countries. Enhancement of markets and competitiveness in bio-economy sectors o Develop tools to aggregate data on biomass and biowaste availability and their use in biobased industries in order to examine the use of available resources and the need for imports from third countries. o Enhance the markets in Europe for quality biomass and waste to provide producers of biobased products, biofuels and bioenergy with equal accessibility. o Promote the setting up of networks with the required logistics for integrated and diversified biorefineries, demonstration and pilot plants across Europe, including the necessary logistics and supply chains for a cascading use of biomass and waste streams. o Support the establishment of a network of diversified biorefineries across Europe, as well as the creation and networking of one or more clusters of integrated and diversified biorefineries in every Member State. o Support the expansion of new markets by developing standards and standardised sustainability assessment methodologies for biobased products and supporting scale-up activities. Facilitate green procurement for biobased products by developing labels. o Contribute to the development of methodological standards for biobased products (e.g. using LCAs) with regard to, e.g. biobased content, biodegradability and functionalities. o Improve the accessibility to existing and invest into additional pilot plant infrastructures and activities in order to support the up-scaling of biobased products and processes. Increase investments in demonstration infrastructures and activities in order to support the up-scaling of processes for the manufacturing of biobased products. o Better integrate research projects with the use of pilot and demonstration activities. 9 4. BIOBASED ECONOMY STRATEGIES IN OTHER MEMBER STATES AND REGIONS 4.1. Germany 4.1.1. National Bio-economy Research Strategy 2030 In 2010, The German Federal Ministry for Education and Research published the “National Research Strategy Bio-Economy 2030: Our Route towards a biobased economy 6 ”. The central objective is the optimal utilisation of the chances created by the knowledge -based bio-economy, and to translate these into enduring economic growth. The research strategy lays out five priority fields of action for further development towards a knowledge-based, internationally competitive bio-economy: global food security, sustainable agricultural production, healthy and safe foods, the industrial application of renewable resources, and the development of biomass-based energy carriers. 4.1.2. The Bio-Economy Council The Bio-economy Research and Technology Council (BioÖkonomieRat 7), was funded jointly by the German Ministry of Education and Research and the Ministry of Food, Agriculture and Consum er Protection, and is an independent advisory body to the German government for all matters relating to bio-economy. The Council is made up of experts from university and non-university research institutes, the federal government’s own departmental research, and from research in the private sector. The mission of the Bio-economy Council is to improve parameters, accelerate the development of innovative technologies, and identify the need for future research. Another task of the Council is to analyse the strategic goals of Germany as a whole, the individual Länder (Regions), as well as those set within the EU and other international partner countries. The concrete aims of the Bio-Economy Council are: 6 7 To offer an overview of the opportunities and prospects of the bio-economy in Germany To deliver scientifically-based recommendations for measures to improve parameters To develop scenarios to create parameters for research, education and training, and student support To help strengthen networks of relevant actors from science, business and politics with a view to achieving maximum harmonisation on strategic questions http://www.bmbf.de/pub/bioeconomy_2030.pdf http://www.biooekonomierat.de 10 The findings of the Council’s work are published in reports, recommendations and other publications : In 2010, the Council published its analytical “Bio-economy Innovation Report8”, placing emphasis on increasing biomass yield volumes and more efficient production processes in the food and energy sectors. The Council has delivered its first recommendations already in 2009. The report “Combi ne disciplines, improve parameters, seek out international partnership 9” suggested for a restructuring of research funding and recommended incentive systems for private investment. The Council members supported the establishment of integrative structures i n research within Germany as in the past these have followed traditional discipline boundaries too strictly. In addition to the formation of strategic partnerships with other countries and an improvement in student education, the Council believed that another focus should be the creation of solid legal frameworks, such as in the area of green gene technology. In 2011, in its report “Priorities in Bio-economic Research10”, the Bio-Economy Council defined the priorities with regard to relevance and urgency of the research topics identified in its report “Bio-economy Innovation” and made recommendations with regard to time scales and financial backing. The primary objectives are to increase the volume of biomass available for various applications and to use the limited natural resources efficiently in order to fully exploit potential and to reduce the likelihood of newly competing demands arising, as for example, between those of the bio-energy and foodstuff industries. The Bio-economy Council also recommended that a National Bio-economy Platform be set up to carry out the coordination work and to provide impetus for the corresponding conversion processes with the relevant actors. 4.1.3. Regional clusters In 2007, the German Federal Ministry of Education and Research initiated the creation of five German industrial biotech clusters. Among these clusters is CLIB202111 (cofounded by the Ministry of Innovation, Science and Research of the German State of NRW) with 32 founding members. Since then the cluster grew to include more than 70 academic institutes, companies and investors, launched R&D projects with a total volume of 50 million Euros, founded 5 start-ups and attracted 10% international members. Another cluster is BioM WB12 with two demonstration plants for cellulosic ethanol and acetic acid, a new multi-purpose pilot plant for and a degree program of industrial biotechnology at the Technical University of Munich. 8 http://www.biooekonomierat.de/reports.html?file=files /downloads/092010/bio-economy-innovation-report2010.pdf 9 http://www.biooekonomierat.de/files/downloads/presse/BOER-Empfehlungen2009_en.pdf 10 http://www.biooekonomierat.de/files/downloads/Publikationen/BOER_Recommendations_No%202.pdf 11 http://www.clib2021.de/en/ 12 http://www.biom-wb.de/ 11 4.2. The Netherlands 4.2.1. Vision of the Dutch first Rutte Cabinet (2010 – 2012) In the Netherlands, the Cabinet of Economic Affairs, Agriculture and Innovation has decided that the biobased economy is one of the strong emerging economic pillars to be supported. The High Level Group Biobased Economy and the Bio-renewable Resources Platform, both Dutch public-private frameworks of cooperation in the field of the biobased economy, were asked to give input for a future strategy. In addition, in September 2011, 43 stakeholders (business and NGOs) signed the Manifest Biobased Economy 13, supporting the development of a sustainable biobased economy. So the development of the national strategy was the result of an on-going interaction between business, society, and science, stimulated by policy makers. In April 2012, the Cabinet presented its “Hoofdlijnennotitie Biobased Economy”14, a mid- and long term vision and strategy for the biobased economy, as an answer on independent advices of the “Sociaal Economische Raad” (SER) and the “Commissie Duurzaamheidsvraagstukken Biomassa” (CDB). In parallel, an “innovation contract for the biobased economy” was worked out in collaboration with the industry and the research organisations. 13 http://www.iucn.nl/actueel/iucn_nl/manifest_biobased_economy_ondertekend/ http://www.rijksoverheid.nl/documenten-en-publicaties/kamerstukken/2012/04/02/hoofdlijnennotitiebiobased-economy.html 14 12 The main headlines of the strategy are: Sustainable use of biomass: sustainable production of biomass and yield increase; development of better technologies (e.g. biorefining); development of the cascading principle to use the biomass; optimal use of side-streams. Integrated policy: bringing stakeholders (industry, science and policy) together in order to stimulate interaction between value chains and co-production of products, and to use in a more efficient way side streams; removing obstacles; development of a coherent policy. Knowledge and innovation: focus on technological research (e.g. availability and use of biomass and side streams) as well as on solving social, environmental and economic problems; stimulating collaboration between, universities; improve participation to European Programmes; improve valorisation; develop innovation contract with all stakeholders (see 3.2.2) Clear and transparent sustainability criteria: support development of European sustainability criteria for biofuels; broaden sustainability criteria to other uses of biomass (via Commissie Duurzaamheidsvraagstukken Biomassa) Intensive European and international collaboration: stimulate companies and research organisations to participate to European Programmes (e.g. Horizon 2020); as a Member State, politically influence European policies (e.g. resource efficiency, climate change, e nergy and transport, industrial policy, agricultural policy, regional development); removing obstacles at EU level (e.g. trade); closer collaboration with third countries (e.g. Brazil, USA, Canada, Malaysia, Ukraine, Russia); removing trade barriers at international level; organisation of economic missions (e.g. Germany, USA). 4.2.2. Innovation Contract Biobased Economy The innovation contract biobased economy “Groene Groei – van biomassa naar business”15 is an joined agenda developed by the industry and the research organisations. It contains 6 working packages, each covering the entire innovation chain (from more basic research until valorisation). The working packages are: 15 Biobased materials Bio-energy and bio-chemicals Integrated biorefinery Cultivation optimisation and biomass production Recycling and re-use: water, nutrients and soil Economy, policy and sustainability http://www.top-sectoren.nl/chemie/sites/default/files/documents/Innovatiecontract%20BBE_0.pdf 13 In total more than 100 companies will participate to the projects, and have committed more than 200 million EUR. 4.2.3. BE-BASIC BE-Basic16 (Biobased Ecologically Balanced Sustainable Industrial Chemistry) is a public-private partnership that develops industrial biobased solutions for a sustainable society. BE-Basic is coordinated by Delft University of Technology and has an R&D budget of more than 120 million euros. Half of this is funded by the Ministry of Economic Affairs, Agriculture and Innovation. BE-Basic was founded early 2010. BE-Basic is a consortium of large industries, small and medium enterprises (SME’s), knowledge institutes and academia. The following partners participate within the BE-Basic consortium: Industrial partners: Amyris, AkzoNobel, Bioclear, BioDetection Systems, Bird Engineering, BLGG AgroXpertus, DSM, Essent New Energy, Microdish, Microlife Solutions , Purac, Synthon, Waste2Chemical Institutes: Deltares, Netherlands Institute of Ecology (NIOO-KNAW), Wageningen UR, Food & Biobased Research Academic partners: Delft University of Technology, Imperial College London, Karlsruhe Institute of Technology, Maastricht University, Radboud University Nijmegen, Technische Universität Dortmund, University of Amsterdam, University of Groningen, University of Twente, MESA+ Institute for Nanotechnology, Utrecht University, VU University Amsterdam, Wageningen University The strong international focus of BE-Basic is reflected by the membership of the consortium of several leading institutions in the EU. Moreover BE-Basic puts its international focus into practice through strategic partnerships in a selected number of countries: Brazil, Malaysia, the U.S.A. and Vietnam. BE-BASIC is constructing a Bioprocess Pilot Facility. Located in Delft, the facility will be a center of expertise and technology open to researchers and students from all over the world. The Bioprocess Pilot Facility is funded by universities, companies, the European Union, the Dutch Ministries of Agriculture, Nature & Food Quality and Economic Affairs, the Province of South Holland and the Municipalities of Rotterdam, Delft and The Hague. The facility has a modular setup. Users themselves select the process to be investigated from the available modules, ranging from various methods of biomass pretreatment, fermentation, recycling and purification to third-generation bioprocesses. In the Bioprocess Pilot Facility companies and knowledge institutions can develop novel, sustainable and environmentally friendly production processes based on biomass . Another important aspect of the facility is to provide training and education. 16 http://www.be-basic.org/ 14 4.3. Sweden In Sweden, Vinnova (The Swedish Governmental Agency for Innovation Systems) in June 2008 granted SEK 13 million (around 1,2 million Euro) to a project called “The biorefinery of the future” . In September 2011 the Swedish Government commissioned Formas, in consultation with VINNOVA and the Swedish Energy Agency, to prepare a national strategy for the generation of a biobased economy and sustainable development. This resulted in a “Swedish Research and Innovation Strategy for a Biobased Economy 17”,which was adopted in February 2012. Following research and development needs were defined: • • • • The replacement of fossil-based raw materials with biobased raw materials. Some examples of this are: intensified production of biobased raw materials, nutrient and fertilizer optimization systems, crop and animal breeding, cultivation system such as multifunctional farming and forestry systems, adaptation of seeds, crops and production systems to cope with climate change, new and improved biomass properties, use of ecosystems other than fields and forests for biomass production, for example marine ecosystems or urban environments. Smarter products and smarter use of raw materials. Some examples of this are: further refinement of biomass products, bi-products and waste products become raw materials, new products, biorefineries. Change in consumption habits and attitudes. Some examples of this are: increased product lifetimes, increased recycling, more efficient transport, distribution and storage, new services, consumer behaviour. Prioritisation and choice of measures. Some examples of this are: Environmental consequences, socio-economic consequences, conflict of objectives, governing policies. In addition, research and development will be complemented by innovation-fostering initiatives and measures that specifically address bio-economy challenges. The nature and extent of these challenges necessitates widespread collaboration among actors and that sectors work together to be able to deal with the complex issues and demands for solutions that the challenges give rise to. This includes: • • Stimulating cross-industry collaboration in research and development in order to develop and implement solutions that contribute to a growing biobased economy. Universities and research institutes play a central role in forging links in such collaborations, but public actors and civilian society also has important roles. Stimulating the growth of strong research and innovation environments that contribute with relevant knowledge and create preconditions for innovation within the area. These strong 17 http://www.formas.se/upload/EPiStorePDF/Swedish%20Researc h%20and%20Innovation%20Strategy%20for%20a %20Bio-based%20Economy_R3_2012/Strategy_Biobased_Ekonomy_hela.pdf 15 • • environments gather together Swedish competence and actors and augment the innovative capabilities of regions and organisations. Accelerating development, verification and commercialization of new biobased solutions and provide continued support for the demonstration of products, systems and services other than fuels and energy technology solutions. Offering support to small and medium-sized enterprises for the commercialisation of new technologies. This particularly applies to collaborations between these and larger companies in order to accelerate development and innovation. 4.4. Denmark Denmark has not a yet a specific strategy for the bio-economy, but the Government has signed in 2009 an agreement on Green Growth 18 . The purpose of the Agreement is to ensure that a high level of environmental, nature and climate protection goes hand in hand with modern and competitive agriculture and food industries. A total of 1.8 billion EUR funding until 2015 is foreseen, which is a 50% increase compared to previous initiatives. 4.5. Finland Also Finland has not yet an official bio-economy strategy. However, in 2011 SITRA (the Finnish Innovation Fund) prepared a report “ Sustainable Bio-economy: Potential, Challenges and Opportunities in Finland19 ”. The study claims that the market for small-scale solutions is large, which provides a basis for mass-production of bio-economic solutions. Also in Finland, the BioRefine 2007-2012 programme of TEKES has allocated 137 million Euro to the development of innovative technologies, products and services related to biorefineries and the processing of biomass in general for the international market. 18 http://www.mim.dk/NR/rdonlyres/54887891-D450-4CD7-B823CD5B12C6867A/0/DanishAgreementonGreenGrowth_300909.pdf 19 http://www.sitra.fi/julkaisut/Selvityksi%C3%A4-sarja/Selvityksi%C3%A4%2051.pdf 16 4.6. Ireland Although there is no specific Irish bio-economy strategy, some aspects have been defined through two documents issued by the Irish Governement: “Building Ireland's Smart Economy- A Framework for Sustainable Economic Renew 20” (2008) and “Developing the Green Economy in Ireland 21” (2009). The Smart Economy is a ‘Green Economy’ in that it recognises the inter-related challenges of climate change and energy security. It involves the transition to a low-carbon economy and recognises the opportunities for investment and jobs in clean industry. The core of the “Green New Deal” is a move away from fossil-fuel based energy production through investment in renewable energy and increased energy efficiency to reduce demand, wastage and costs. The five Action Areas of the Framework are: 1. Meeting the Short-term Challenge – Securing the Enterprise Economy and Restoring Competitiveness; 2. Building the Ideas Economy – Creating ‘The Innovation Island’; 3. Enhancing the Environment and Securing Energy Supplies; 4. Investing in Critical Infrastructure; 5. Providing Efficient and Effective Public Services and Smart Regulation The key actions of the “Green Economy” strategy are: 1. Promote Green Sectors That Drive Exports And Job Creation (e.g. renewable energy, energy efficiency and management, waste management, water/wastewater) 2. Deliver Green Zones and a Green international financial services sector (IFSC) 3. Create World-Class Research Centres and Human Capital 4. Remove Hurdles to the Development of the Green Economy (e.g. technical, regulatory and planning barriers to the development of renewable energy projects; implementing green public procurement in Ireland; ensuring that green firms can access finance and developing Ireland’s brand). 4.7. France 4.7.1. At national level In France the R&D expenditures were increased with the Programme “Investments for the Future 22” with an growing role for the bio-economy. Within this national programme, around 1,5 billion Euros are dedicated to the bio-economy for a 10-year period: 20 http://www.taoiseach.gov.ie/eng/Building_Ireland's_Smart_Economy/Building_Ireland's_Smart_Economy__Executive_Summary.pdf 21 http://www.forfas.ie/media/dete091202_green_economy.pdf 22 http://www2.ademe.fr/servlet/KBaseShow?sort=-1&cid=96&m=3&catid=24707 17 1 billion euro in the area of “Decarbonated Energy” with as main projects GreenStar for algae , PIVERT for biorefinery and oleochemistry and IFMAS for sustainable chemistry 0.5 billion euro were allocated to 40 R&D projects, industrial demonstrators and dedicated equipments for biotechnologies, bioresources and bioprocessings. 4.7.2. Regional clusters In 2005, the French General Directorate for Competitiveness, Industry and Services (DGCIS) has created the so-called Competitivenes Clusters23, an initiative that brings together companies, research centers and educational institutions in order to develop synergies and cooperative efforts. The objectives of the Competitiveness clusters is to strengthen the competitiveness of the French economy and to develop both growth and jobs in key markets through increased innovation, by encouraging high-value-added technological and creative activities at a regional level, and by attracting businesses to France thanks to a higher international profile. Within these competitive clusters, the French Government is particularly interested in promoting an overall environment favourable to enterprise and innovation, and in supporting R&D efforts, and accompanies cluster development in the following ways: • • • • • • By allocating financial support for the best R&D and innovation platform initiatives via calls for projects Partial financing for cluster governance structures, alongside local authorities and companies Financial support for theme-based collective actions initiated by clusters in a wide range of areas, via the various Regional Directorates for Industry, Research and the Environment (DRIRE) By carrying out and publishing studies By involving various partners, such as the Caisse des Dépôts, or the French National Research Agency (ANR) and OSEO both of which finance R&D projects led by cluster stakeholders By bringing new means from public research centres. Following the positive assessment of the first phase of the cluster policy, the French Government has decided to allocate €1.5bn to the launch of a second phase (2009–2012). One of the clusters is the “Industries and Agro-Resources” Cluster or IAR24. This cluster unites stakeholders from research, higher education, industry & agriculture in the Champagne-Ardenne and Picardy regions of France around a shared goal: the value-added non-food exploitation of plant biomass. In order to achieve this ambitious objective, the IAR cluster has defined 4 strategic f ields of activity around the biorefinery concept: bioenergy, biomaterials, biomolecules, and green ingredients. The IAR cluster's end goal and strategy involve bringing together skills and technologies for the extraction, transformation and formulation of biomass components, enabling the performance of all the steps from the laboratory to industrial development - of innovative, sustainable development projects: 23 24 http://competitivite.gouv.fr/ http://www.iar-pole.com/ 18 • • • • by intensifying collaboration between the two regions - matching supply and demand in the industrial, research and agricultural sectors and funding the resulting projects. by integrating external know-how and opening out to other regions in France or abroad as part of a collaborative strategy. by developing a specialized economic intelligence platform focused on opportunities for substituting fossil carbon and creating new functionalities. by adapting and mobilizing the plant-based resources required for specific industrial uses. The IAR cluster is also organizing international trade missions and hosts foreign delegations in order to forge technological and industrial collaborations in the field of plant biomass exploitation. A large number of international-scale R&D projects have already been launched covering the four target markets. A special relationships has been build up with several international clusters in Canada, Finland, Hungary and elsewhere. 4.8. Norway In Norway, an official “Norwegian Industrial Biotech Network 25 ” has been set up mid-2012. The main objective of the Industrial Biotech Network is to stimulate innovation through partnerships and dissemination of knowledge. The network will connect academia and industry across research disciplines, industry sectors and geography. The network is the result of a joint initiative by Innovatio n Norway (a government agency for industry development), The Research Council of Norway, and SIVA (The Industrial Development Corporation of Norway). 4.9. UK Industrial biotechnology and the bio-economy The Technology Strategy Board 26 has created an Industrial Biotechnology Special Interest Group (IB-SIG) to operate across its networks to implement the recommendations of the 2009 Industrial Biotechnology Innovation and Growth Team (IB IGT) 27. The Industrial Biotechnology Special Interest Group (IB-SIG) activities are managed by the Biosciences and Chemistry Innovation Knowledge Transfer Networks 28, funded by the Department for Business Innovation and Skills via the Technology Strategy Board. 25 http://www.indbiotech.no/ http://www.innovateuk.org/ 27 IB 2025 - Maximising UK Opportunities from Industrial Biotechnology in a Low Carbon Economy (2009) https://connect.innovateuk.org/c/document_library/get_file?p_l_id=79343&folderId=169208&name=DLFE1715.pdf 28 http://www.innovationuk.org/informations/special -area/0004-the-knowledge-transfer-networks.html 26 19 To ensure that biotechnology companies, especially SMEs and start-ups, can overcome market barriers related to the restrictive cost associated with capital assets needed to test new biotechnologies , a new BIS co-funded 10,000 litre IB Demonstrator facility has been set up. This pilot plant can provide expertise and equipment for companies to demonstrate the feasibility of up-scaling their production and processes to commercial levels. Also in the UK, the “Integrated Biorefining Research and Technology Club (IBTI Club) 29” was launched in 2009. This group consists of a research and technology partnership involving the Biotechnology and Biological Sciences Research Council, the Engineering and Physical Sciences Research Council, industry and the Bioscience for Business Knowledge Transfer Network (KTN). The club will interface with the KTN's wider Integrated Biorefinery Technologies Initiative (IBTI) and is investing around £6 million in industrially relevant, innovative, basic biological, chemical and engineering research in biorefining technologies. UK-Norwegian partnership supporting industrial biotechnology In February 2011, a memorandum of understanding was signed between Innovation Norway and the Technology Strategy Board in the UK. This collaboration agreement intends to foster transnational collaboration between industries and research institutions in the area of industrial biotechnology and biorefining. Beginning of 2012, it was decided to work together to support nine new research and development projects that will create innovative processes to generate high-value chemicals through industrial biotechnology and bio-refining. The UK Technology Strategy Board has offered grant funding totalling £1.82 million to the nine UK-led projects (four full-scale collaborative R&D projects and five feasibility projects) and four of these will also be supported by Innovation Norway, which is providing additional funding of £400,000 to the Norwegian businesses that are taking part. The projects will look at how industrial biotechnology and/or biorefining can be competitively applied to the production of high value chemicals and will see collaboration between industrial biotechnology developers, higher education institutions and the chemicals sector. 29 http://www.bbsrc.ac.uk/business/collaborative-research/industry-clubs/ibti/ibti-index.aspx 20 This new funding brings the total investment by the Technology Strategy Board since September 2009 in R&D using industrial biotechnology to make new or existing chemicals to £7 million, in 42 projects. These projects may use demonstration facilities in the UK, such as the newly-opened High Value Manufacturing Catapult30 centre. 4.10. Italy Since the launch of the EU Bio-economy Strategy, the Minister of Economic Development has set up a working group on green chemistry with the aim of starting at a national level the elaboration of possible national strategy. In May 2012 the Minister of Innovation launched a call for implementing clusters focused on top innovative sectors for the country and one of them is green chemistry. 4.11. Summary Several Member States and regions have already developed a strategy for the BBE or have started working on one. It is therefore only natural that the focus may vary from country to country. A number of countries such as Germany and Finland have taken a broader approach to the bio-economy as a whole (including the agriculture and food pillars), while most countries - such as the Netherlands, Sweden, and several regions in France - place the emphasis on the biobased economy itself. Although the most important action point continuously seems to be “innovation” (in the broadest sense of the word), most authorities are developing an “integral” policy. The Netherlands places the emphasis on biomass production, innovation, sustainability and coherent policies, while Sweden is focusing on innovatio n, market introduction, support for SMEs and general supporting policy. Germany has established a national “Bio-economy Council” with the focus on the economy, innovation, education and policy. An important part of most strategies involves establishing and supporting a specific cluster and/or publicprivate partnership (PPP). We have seen a recent increase in the number of cooperation partnerships between the clusters and PPPs in Europe, or even with regions outside Europe. 30 https://catapult.innovateuk.org/nl_BE/high-value-manufacturing 21 5. THE BIO-ECONOMY STRATEGY IN THE USA In April 2012, the Obama administration announced a broad plan to foster development of the bio economy, the so-called “National Bio-economy Blueprint”, including the use of renewable resources and biological manufacturing methods. While the European strategy focuses on sustainable industrial processes, the White House blueprint is aimed at fostering all biology -based businesses, including pharmaceuticals and medical devices (White House, 2012). The National Bio-economy Blueprint describes five strategic objectives for a bio-economy with the potential to generate economic growth and address societal needs: support R&D investments that will provide the foundation for the future U.S. bio-economy; facilitate the transition of bioinventions from research lab to market; develop and reform regulations to reduce barriers, increase the speed and predictability of regulatory processes, and reduce costs; update training programmes; identify and support opportunities for the development of public-private partnerships and precompetitive collaborations. Specific actions related to biofuels and industrial biotechnology are: - - Strengthening Research and Development: increasing availability of renewable fuels, intermediate chemicals, and biobased products; expanding the versatility of biofuel energy solutions; improving of biofuel and bioenergy crops Transforming manufacturing through bioinnovation: employing biomanufacturing to enhance economic growth Unlocking the promise of synthetic biology Advancing from lab to the market: catalyzing advanced biofuels production through consortia Advancing biofuels for military and commercial transportation Driving innovation and creating jobs in rural america through biobased and sustainable product procurement Developing a bio-economy workforce: expanding and enhancing the biomanufacturing workforce Fostering partnerships: developing innovative approaches to new biofuels feedstock Increasing bio-economy agricultural exports 22 6. THE BIOBASEDECONOMY IN BELGIUM AND THE REGIONS – SWOT ANALYSIS This section gives an overview of the strengths and opportunities, as well as the weaknesses and threats in Belgium and its Regions concerning the biobased economy. It was developed using existing studies, and by interviewing different stakeholders. This SWOT analysis will be used to develop concrete recommendations towards the Belgian and Regional authorities (see chapter 7). STRENGTHS Europe: - The new EU bio-economy strategy stimulates member states & regions to develop national/regional strategies - Surrounding regions have developed a strategy for a biobased economy and/or support financially opportunities to collaborate Location: - Belgium located between Germany, France and The Netherlands (which are the European leaders in the biobased economy) Logistics: - Harbors (Antwerp , Ghent and Liege) with easy access and space for delivery and storage of feedstock. - Existing pipelines for ethylene can be used to transport “bio-ethylene” - Good connection by road, rail, inland waterways and seagoing navigation. The roads link to the crossing of the major European motorways, the railway tracks lead to the European railway network. Belgium is recognized as a leading region in logistics, with available industrial fields. Research & Innovation: - Strong research groups and strong biotech fundamentals WEAKNESSES Organization and visibility: - Flanders and Wallonia have a relatively low visibility as “biobased economy region” (cfr. The Netherlands, German regions, Champagne-Ardenne Region in France, etc.) Feedstock: - Agricultural sector is (still today) not enough aware of possibilities/opportunities of production of renewable resources for non-food applications - The accent of many studies is on bioenergy (biogas, biofuel, etc.) Research & innovation: - The publicly supported public-private partnerships (clusters) supporting and financing research projects are of a smaller scale than BE-BASIC in NL, IAR in France, CLIB2021 in Germany, etc. Public research is too fragmented small centres of excellence Interdisciplinary research is not enough stimulated No proposals submitted for participation to ERA-nets (e.g. ERA-Net IB and EuroTransBio) Low level of collaboration between companies and public research institutes - Overall low level of collaboration of 23 - BioBase Europe: pilot plant infrastructure Feedstock: - Agriculture is (still) an important sector in Belgium - Availability of biomass and waste streams 31 well documented, or being analysed32 - Diversity of biomass and crops (including forestry) Industry: Belgian chemical industry accounts for more than 6% of the total European turnover in this sector, even though Belgium’s share of the total EU population is only 2.1%. Investment amounted to 1.96 billion EUR in 2007, representing more than one quarter of total investment in the manufacturing sector. Some larger fermentation plants (Genencor/Dupont, Citrique Belge, AlcoBiofuel, BioWanze, Galactic, etc.) Research centers (Solvay, Cargill, Total, etc) Financing: - VC interested in cleantech - Academic institutes have a strong technology transfer mandate, and gained important expertise in creating VC-backed spin-offs. - The regional clusters and projects are facilitating. Education & skills - The existence since many years of a university degree in bio-engineering, combining engineering skills with a fundamental knowledge of life sciences and biotechnology. foreign companies with public research institutes - Not enough large companies stimulating research via “open innovation” (cfr Roquette and Rhodia in France; DSM, AKZO and PURAC in The Netherlands; Evonik in Germany) etc), Support for valorization and demonstration projects is low and only beginning Industry: - The chemical industry is an important sector in Belgium, with many large companies, but the main R&D centers of these companies are often not located in Belgium. - No big private players in industrial biotechnology or green chemistry (cfr. DSM, BASF, Evonik, etc.), and with research activities in Belgium - No structured collaboration between Industrial sectors (food, chemical sector, etc.), so also no integration of processes - Slow integration of “bio based” in other industrial sectors (e.g. textile) Policies and incentives: - Public policy supporting bio based economy is not visible enough. - Policies and incentives mainly focused on bioenergy/biofuels - No long term vision, and no integration of federal and regional initiatives - Lack of a certification & labeling system for bio based products 31 VITO (2012) – studie in opdracht van de FOD Volksgezondheid – DG Leefmilieu, ter kwantificering van de biomassastromen, geproduceerd en geïmporteerd in het territorium van het Belgisch koninkrijk met het oog op de productie van energie en van industriële producten 32 OVAM biomassa inventory; VIS traject “Visions” (Valorisatie organisch biologische nevenstromen), ValBi om (2010) Inventory of the Walloon biomass for use as renewable resource for energy (as a part of the National Renewable Action Plan) 24 - Cross border access to specialized technical training facilities for operators (Bio Base Europe Training Center) . - Regional clusters or projects organize also training programs SPECIFIC FOR THE FEDERAL LEVEL Policy - A system for biofuels is in place - The federal strategies on Sustainable Development, Biodiversity and Climate Change have aspects linked to biomass use and the biobased economy as well as programmes implementing EU programs on resource efficiency and green economy (ecolabel, ecodesign) SPECIFIC FOR FLANDERS REGION 33 34 40 Existing initiatives: - FISCH33 (the Flanders Innovation Hub for Sustainable Chemistry) has a number of programs that are focusing on the biobased economy and this is increasing - Ghent Bioeconomy Valley as public-private partnership promoting the biobased activities of the Ghent region - International Conference on Renewable Resources and Biorefineries 34 organized yearly by the Ghent University - CINBIOS (Flemish cluster for industrial biotechnology): collaboration between FlandersBio, essenscia and GBEV (Ghent Bioeconomy Valley) - SYMBIOSE: project with essenscia Vlaanderen, FEBEM, PlanC, and OVAM as partners: a partnering platform to exchange industrial side streams - Plastic Vision : bioplastics are covered SPECIFIC FOR THE FEDERAL LEVEL Policy There is a lack of coordinated vision on the bio based economy between the relevant departments (economy, environment, finance, science policy) SPECIFIC FOR FLANDERS REGION Policy - Biobased economy not very visible in “Vlaanderen in Actie 40” or “Nieuw Industrieel Beleid41” Organization: - CINBIOS mainly focused on “internal” networking” and innovation, but no lobby and proactive contact with authorities (cfr. ACDV 42 in France) - Ghent Bioeconomy Valley43: main focus on bioenergy www.fi -sch.be http://www.rrbconference.com/ http://vlaandereninactie.be/ http://www.ewi-vlaanderen.be/ewi/wat-doen-we/programmas-subsidies/industrieel -beleid/nieuw-industrieelbeleid 42 http://www.chimieduvegetal.com/ 43 http://www.gbev.org/ 41 25 • Feedstock A large part of the Flemish territory is covered by agriculture – with extensive related technical/scientific knowledge and experience Centre of excellence: - Biotechnology for a sustainable economy (Ghent Bio-Economy35) - R&D excellence in agro & biotech (VIB, ILVO) Logistics - The Port of Ghent made the biobased economy as one of its key priorities. The new Kluizendok is ideal for seagoing vessels and moreover inland navigation can reach the extensive European network of rivers and canals from here. In this way, a vast hinterland can be served, among which the North of France and in the future also Paris (via the future canal in the direction of Paris, the 'Seine-Nord' project). Policy - The Government has created “an interdepartmental working group to promote the biobased economy” and this wg is preparing a strategy - Biobased economy became one of the pillars of the “Vlaams Materialenprogramma”36 - IIBN37 with support of UNIDO SPECIFIC FOR WALLOON REGION SPECIFIC FOR WALLOON REGION • Policy - The “Marshall Plan 2.0 Vert” is explicitly supporting “Environmental Technologies”. The creation of a sixth competitiveness cluster dedicated to the green economy “GreenWin” includes a focus on biobased chemistry. The Walloon Export and Foreign Policy: - Biobased economy not visible enough in Marshall 44 plan - Outcomes of ongoing initiatives from GreenWin-ValBiom-Awex still expected. 35 http://www.ugent.be/ghent-bio-economy/en http://www.plan-c.eu/blog/2012/06/06/vlaams -materialenprogramma-zet-in-op-9-hefbomen-vmp2020/ 37 http://indbiotech.net/ 44 http://planmarshall2vert.wallonie.be/ 36 26 Investment Agency also appointed a dedicated expert to green economy - The industrial ecology initiative “Next” was launched by the Walloon Ministry of Economy and Technology. - Feedstock A large part of the Walloon territory is covered by agriculture and forestry – with extensive related technical/scientific knowledge and experience . Existing initiatives: - “Biobased economy” is one of the strategic priority of GreenWin38, the green cluster created in the framework of the “Marshall Plan 2.0 Vert” for Wallonia. - ValBiom39 (association that promotes the use of biomass for non-food applications) is very active in the study and promotion of the biobased economy. - Existing dynamic clusters in bioeconomy related fields such as plastics (Plastiwin), life science (Biowin), renewable energy (Tweed), agro-industy (Wagralim). - On-going ValBiom-GreenWin-Awex project “Le coq vert: towards a biobased economy in Wallonia”. - “Technose,” an excellence research program on biorefinery and several other projects and inititiatives in the field of biobased economy already financed in Wallonia. Centre of excellence: - The Gembloux Agro-Bio Tech Faculty (part of the University of Liege) has developed a specific expertise in the biobased area. - The MateriaNova research centre and the University of Mons ( biobased materials). Logistics - Wallonia has developed a leading position in logistics. Its availability in industrial fields, its direct connection to largest European markets and its proximity to biomass sources – by rail, inland waterways and air – 38 39 Feedstock - Lack of cooperation spirit among the Walloon agricultural upstream. The investments required to achieve the organization of agricultural supply chains (that play a critical role in structuring relationships between the farmers and the buyers of raw materials) would succeed more easily in a cooperative environment rather than in an individual environment. http://www.greenwin.be/en/presentation http://www.valbiom.be/ 27 makes it an ideal place for the development of a biobased economy. The newly equipped Liege Trilogiport platform is an additional asset. OPPORTUNITIES THREATS Europe - Review of some important actions plans and directives at EU level (e.g. Resource efficiency, recycling of waste streams, ecodesign directive, sustainable consumption & production, etc) Feedstock: - Extra income, extra production, more stable income for farmers - Flanders is second biggest flax producer in Europe; demo project started with flax as renewable resource - Flanders biggest importer and transformer of linseed to oil in the EU, which brings many “side streams” - Diversification of crops: Walloon company projects starting with hemp as renewable raw material have materialized. - Import and storage capacity of biomass available (e.g. Port of Ghent and Port of Liege), and can even be expanded - high degree of recycling used paper in Belgium - OVAM, VITO and VALBIOM made several studies on biomass, eco-efficiency, etc. - increasing oil price Industry: - Growing interest from the chemical industry in the utilization of renewable resources (e.g. Total, Solvay re-interested in the bioeconomy due to the takeover of Rhodia 45, etc.), and several new players in the field (cfr Proviron, Futerro), including several SMEs (cfr Wetland Engineering) - Food and sugar industry become interested 45 51 Competition in Europe: - Growing competition in NL (esp Delft region, new pilot plant, BE-Basic, etc.), and France (esp. Champagne-Ardenne regions) and growing collaborations between the Dutch Regions/Provinces - Growing competition for BioBase Europe Pilot Plant (e.g. Delft, ARD in Reims, CBPLeuna51, etc.) Feedstock: - Extra demand for wood biomass increases also outside of Belgium - Fluctuations in demand and offer of biomass leads to unstable biomass price Policies: - Fragmented policy towards bio-economy and no coordination between the federal and regional levels (more organized and streamlined in NL, D and F) - Trade and import barriers (e.g. ethanol , cheap shale gaz availibility in the US ) - low public investments in biobased compared to other sectors - incentives to stimulate green heat and power leads to competition for renewable resources - unstable political and economic climate inhibiting a the implementation of a long term vision and investments Industry: - chemical industry: change within large companies is rather slow, especially in http://www.solvay.com/EN/INNOVATION/NEWBUSINESSDEVELOPMENT/greenchemistry.aspx http://www.cbp.fraunhofer.de/en.html 28 - - (giving added value to waste streams)(Puratos, Adcuram/Citrique Belge, Tiense suiker, Iscal Dugar, Nutrilab) important textile en chemical industrial sectors An already established biofuel sector that could move to the simultaneous production of biobased products (biorefinery concept). 10 producers of paper & pulp located in Belgium46 Many plastics producers in Belgium Belgian Biopackaging47: “in 2015, 15% of all packaging should be biobased”. Presence of biobased packaging producers Research & innovation: - Large sectorial research centers (e.g. Centexbel 48 ) Logistics: - Transport of final products (central place in Western Europe) via harbors, railway, waterways, etc.) Society: - good image/perception of white biotech/biobased compared to green biotech/GMOs production - possible competition between bio based sectors Society: - Public opinion (green biotech vs. green economy, impact of ILUC discussion, food vs. fuel discussions, synthetic biology, etc.) SPECIFIC FOR THE FEDERAL LEVEL - - The establishment of a common strategy on the bio economy by the Economy administration in cooperation with Environment Involvement in different EU initiatives under Horizon 2020 (eg. sustainability criteria for solid biomass) SPECIFIC FOR FLANDERS REGION Logistics and infrastructure: - Support of the Port of Ghent : 80 ha 46 http://www.cobelpa.be/nlmembres.html http://www.belgianbiopackaging.be/ 48 http://www.centexbel.be/ 47 29 reserved for biobased industries in the new Kluyzendok - BioBase Europe Pilot Plant could become a real “demo plant” with additional 100m 3 fermenter Feedstock: - On-going inventory of organic waste and side streams in Flanders, and set-up of “offer and demand” matching activities through the VIS-VISIONS 49project and the SYMBIOSE platform - “reststromenplatform Vlaanderen”50 - ILVO (agriculture research institute) launched a program on the use of biomass waste Policy - Creation of an interdepartmental task force for the biobased economy in cooperation with CINBIOS, Ghent Bioenergy Valley, FlandersBio, essenscia Vlaanderen - Possibility to integrate Bio-economy in “Nieuw industrieel beleid Vlaanderen” - Greening the economy/low carbon economy is one of the political objectives SPECIFIC FOR WALLOON REGION 49 50 Logistics and infrastructure: - Support of local logistic players. - Futerro Plant in Escanaffles and/or NeoChim plant in Feluy could become starting points for further developments in biobased economy. Feedstock: - On-going initiative in Wallonia (“Le coq vert”, GreenWin-ValBiomAWEX) to make existing knowledge on Walloon biomass resources available to potential biobased economy players and ongoing http://www.bbeu.org/visions http://www.planning.ugent.be/onderzoekecoclusters.php 30 Industrial Ecology project “NEXT”. Policy - Opportunity to develop the existing “Coq Vert” platform into a larger taskforce for the biobased economy with Greenwin, Valbio and Awex - Possibility to further integrate Bioeconomy in public initiatives. - Greening the economy/low carbon economy is one of the political objectives of the Walloon government. 7. TOWARDS A BELGIAN AND REGIONAL STRATEGY FOR THE BIOBASED ECONOMY: RECOMMENDATIONS 7.1. Need for an integrated and holistic approach Policy making for the biobased economy is complex and touches on several policy areas. The OECD mentioned several measures and incentives that could support biobased products52: political objectives concerning future utilization tax legislation preferential treatment of products in public procurement programmes simplified special regulations in waste legislation opening of community recovery systems for biowaste for compostable bioplastics government R&D programmes for the co-financing of industry and university projects activities related to communication and market introduction agricultural policy. Today, mainly bioenergy and biofuels receive strong support during commercial production via quotas, tax incentives, green electricity regulations and others. The biobased products markets will only grow strongly and quickly if strong instruments are implemented in a political frame work to rebalance the support of energy and material use. Biobased products need at least a level playing field in order to get started. In order to stimulate the development of a competitive biobased economy in Belgium and the Regions, a broad and holistic approach is needed.. 52 OECD (2011) – Future prospects for industrial biotechnology. 31 A regional Bio-economy Board could be set up to “guide” the development and implementation of a possible new strategy. This Board should include the above mentioned departments and stakeholders. In order to avoid fragmentation and stimulate synergies, a regional integrated strategy should be developed. Such integrated strategy should be well balanced between bioenergy/biofuel and biochemicals/biomaterials. During the development, a special focus should be given to : - a coherent policy on feedstock supply, availability and utilisation - a coherent cascading policy - the inventory of existing projects and initiatives, with the aim of searching synergy between them - assessing and stimulating collaboration with surrounding regions - the establishment of a process, where feedback is given to the government on actions to take , in general but also when gaps or hurdles are defined. - communication to the public On a regular basis, a coordination within between the federal and regional level should be organized to bring in line their policies and the Belgian position at the European and international level. Therefor a cooperation between the federal departments should first be established. Both can be done under the existing structures of CCIM/CCPIE (Coordination of International Environmental Policy) and ENOVER (Coordination of International Energy Policy). The establishment of a ‘one office’ centralized approach for getting information would be an added value for the companies. 7.2. Feedstock supply and availability In order to develop a robust biobased economy in Belgium, it will be important to have access to renewable feedstock in sufficient quantity, of good and guaranteed quality, and at competitive price. This can only occur in a concerted action by the government (national and regional), the farmers (and their associations), the involved industrial sectors and research institutions. Bringing together all important stakeholders can make sure that the government, the industry, the agriculture sector and the academic world cooperate towards a common goal. In order to stimulate the development of local biorefineries and to support rural development, it is important to develop and support a reliable upstream supply chain able to mobilize a sufficient level of feedstock for conversion. This must of course be achieved without negative impacts on either food production or land use. For this reason, it is also important to invest in local and regional infrastructures and logistical capabilities to allow all biomass, including agricultural, forestry and waste-based raw material, to be utilised. 32 In order to develop and secure a supply for the biobased economy, it is important considering measures to increase agricultural production. Meeting this challenge without hindering the production of food and without negatively impacting the environment also requires optimising production per hectare of land through increased crop productivity and land management. Sustainability (i.e. without major agricultural land extension) of biomass supply lies in increased productivity by developing: the crops themselves (traditional crops as well as ‘energy’ or ligno-cellulosic crops) the cropping system new biorefining technologies to make more out of the biomass. The growth of non-traditional crops for industrial use and perennial crops could be further encouraged by developing a series of measures to encourage farmers to increase the production of perennial crops. Although the cultivation of perennial crops is a long term policy, from an industry perspective this could create the possibility to have access to feedstock the whole year round rather than only in specific seasons. Furthermore, from an environmental point of view, the cultivation of perennial crops could stimulate diversification of agriculture, lower the environmental impact of agriculture, and optimise land use efficiency (including using unutilised land more effectively). The use of agro-food by-products and wastes should be strongly encouraged. They are representing huge amounts of biomass already available and at low costs. Using such matrices as feedstock for biobased products would bring a two-fold benefit: the sustainable disposal of impacting wastes, and the generation of added value bioproducts with remarkable improvements of the sustainability of the agrofood industry. Investments in developing and optimizing infrastructures and logistics capacities are crucial to ensure that all the biomass that can be mobilized in a sustainable way (both from an environment and economic point of view) is actually used. Innovative political instruments should be developed which could secure access to sustainable renewable feedstock, well balanced between bioenergy and biobased products. "Cascading utilization" (the sequential utilization of renewable raw materials for material and energy uses) could be one option for future support. It is essential that the new European Common Agricultural Policy (CAP) promotes sustainable and competitive agricultural production, and that it ensures balanced access to raw materials for the food and feed sectors, as well as for industrial applications without disrupting food supply. The new CAP should introduce specific financial incentives to improve the logistical capabilities to collect biomass residues (e.g. agricultural residues and forestry waste). Finally, the security of supply of renewable feedstock for industrial use, at a competitive price compared to world market price levels, can only be achieved in a sustainable way by removing some trade barriers on agricultural products for industrial applications. By industrial applications is meant that the agricultural product is transformed into another substance similar to the use of crude oil as a feedstock for the production of biobased products such as chemical substances, materials or enzymes. Even if the regional, national and even European supply of biobased raw materials is the preferred choice, having access on a permanent basis of these feedstock from other regions is a must to secure the supply. To measure the fluxes of production, import and export, the federal environmental department should continue and update their biomass database in cooperation with the Economy administration and the regional waste agencies. 33 7.3. Research and innovation In order to make a fast shift towards developing more innovative and sustainable biobased products, and integrated and sustainable production and processing systems, the level of R&D funding in the biobased economy should be increased through multidisciplinary research programmes. In Europe, improved coordination and collaboration between member state, regional and European public programmes for research and innovation is the only way to avoid overlap and fragmentation and to keep track of the massive research programmes elsewhere in the world. For this reason it is important that the regions participate in the related ERA-NETs and stimulate the participation of companies and research institutes to EU research projects. In order to better align academic knowledge to industry needs, industry will need to develop an earlier understanding of the application potential of new technologies provided by academia. Similarly, academic researchers will need a sharper focus on industry’s needs and specifications. Therefore, building competence networks between industry and academia could be key to overcoming the knowledge gap and competence hurdle that currently exists. In addition, better interdisciplinary and collaborative research would also lead to new business activities. One of industry’s remaining major challenges is to translate research to products, including the development of new product applications. Setting up a public-private partnership (regional biobased economy clusters) would result in a pooling of resources, thus allowing more ambitious goals to be set in terms of reducing the time-to-market. Such public-private partnerships should finance larger interdisciplinary research projects, and should also optimize knowledge transfer and dissemination of knowledge towards SME’s. In Wallonia, the recently created “GreenWin” competitiveness cluster is already focusing its efforts on biobased chemistry. This cluster has already supported and financed several ambitious R&D collaborative projects related to the bio-economy and this focus should be further amplified. In Flanders the FISCH PPP is taking this up. Create a “Regional Biobased Economy Research and Innovation Task Force”: such task force should develop regional research and innovation roadmaps in the area of the biobased economy and biorefineries in order to : • develop leadership in technologies related to conversion processes for existing and new feedstocks (foodcrops, lignocellulosic and herbaceous crops, agricultural and forest residues, food waste, etc.) • ensure competitive feedstock supply for biorefineries (improved crops, sustainable agricultural technologies, post-harvest technologies, logistical solutions, etc.) • enable smart use of biomass, prioritizing high-value applications with use of residual biomass for ones with lower added value • overcome lack of cross-sectoral integration of biobased industries by bundling innovation efforts • stimulate biorefinery development by integrating actively companies and SMEs • develop valorization and demonstration programmes (e.g. scaling up, proof of concept projects) in order to shorten time to market • better align the content of public funded research programmes with industry needs (see figure). • stimulate collaboration with other regions within as outside Belgium. 34 • provide a long-term innovation agenda ensuring upfront commitment on investments from private partners FISCH and Greenwin are both dealing with the recommendations above, but not in the same extent and some proposals can still be improved. Figure: Comparing the areas of interest of industry and research programmes (ERA-NET IB) 7.4. Stimulating production and consumption Biobased products can offer significant growth to our economy and confer a competitive advantage in the chemicals and plastics industry, and the industry can create new green jobs. However producing chemicals through bio-chemical routes is currently still more expensive compared to traditional production routes. In addition, existing production facilities for chemical syntheses cannot be conver ted to biotechnological production without massive new investments, and in many cases there are clear economic restrictions in biotechnological production processes due to higher operating costs and higher levels of R&D costs and investments. Investments required for building a new bio-industrial facility presents a significant barrier. In addition, as result of the worldwide credit crunch, it has become even more difficult to obtain bank loans and funding required for investing into building new, full -scale 35 commercial plants and infrastructure. For this reason the federal and regional governments wishing to support biorefineries and sustainable production processes for reasons of environmental protection, energy security and innovation leadership need to support market growth and to carefully regulate the industrialization process, in order to trigger private sector investments. As a conclusion, federal and regional policy should provide strong support for research, development, and commercialization of innovative biobased products, including grants and loans for developing new technologies and for investment in infrastructure (e.g. construction of biorefineries), and incentives for pioneering commercial production, based on sustainable criteria. The development of technical standards and labeling in an early stage should also be recommended. 7.5. Visibility and awareness In general, there is a lack of awareness of the biobased economy’s potential both in the manufacturing industry and amongst policy makers, consumers and even investors 53 . To facilitate the long-term development and implementation of the technologies, the government should develop a strategy for communication and stakeholder involvement. This would help to raise awareness of the technologies and their benefits (e.g. based on LCA, life cycle analysis). Stakeholders must be involved and engaged in order to raise further awareness. Sustainability, characterised by the triple bottom line of People, Planet and Profit, should be made more visible as the core value driving the development process. Regional Bio-economy Clusters (eg FISCH & Cinbios; Greenwin & Valbiom) should further focus on bringing together the different stakeholders of the value and innovation chain - to create awareness amongst SMEs - to find new opportunities for organic waste - to stimulate cross sectorial collaboration - to increase the visibility of the Regional biobased economy - to attract foreign investors. They should also improve education in order to develop a highly skilled workforce.. For a successful bioeconomy, it is necessary to have a multi- and interdisciplinary work force, remaining up-to-date on new knowledge and developments. To achieve this multidisciplinary education, good training programmes and efficient lifelong learning will be necessary. 53 EuropaBio (2006) - Industrial or White Biotechnology: a policy agenda for Europe 36 8. Overview of the main recommendations Recommendation Estimated impact Policy level Need for an integrated and holistic approach 1. Set up a regional Bio-economy Board to “guide” the development and implementation of a strategy Regional This Board should Involve the relevant administrations , such as research and innovation, agriculture, environment, education, economy and energy; as well as the following stakeholders ( industrial associations , scientists, NGOs) 2. Develop regional integrated strategies for the biobased economy; With a special focus on : - a coherent policy on feedstock supply, availability and utilisation - a coherent cascading policy - the inventory of existing projects and initiatives, with the aim of searching synergie between them - assessing and stimulating collaboration with surrounding regions - the establishment of a process , where feedback is given to the government on actions to take (e.g. to stimulate the biobased economy and when gaps or hurdles are defined) - communication to the public Regional 3. Organize a coordination between the federal en regional level to bring in line their policies and the Belgian position at the European and international level; Federal/Regional Therefor a cooperation between the federal departments (economy, environment, finance, sciences) should first be established. 4. Organize a ‘one office’ centralized approach for getting information Federal Federal/Regional 37 Feedstock supply and availability 1. Support renewable feedstock for industrial use in the new CAP: - the new CAP should introduce specific financial incentives to improve the logistical capabilities to collect biomass residues (e.g. agricultural residues and forestry waste). 2. Develop programmes to increase agricultural and land productivity (research programmes, regional development, land management programmes, new biorefining technologies, etc.), and encourage the growth of nontraditional crops for industrial use and perennial crops, and stimulate the use of agro-food by-products and wastes 3. Remove trade barriers on agricultural material for industrial use 4. Focus on Industrial Biomass Utilisation 5. Invest in local and regional infrastructures and logistical capabilities to allow all biomass, including agricultural, forestry and waste-based raw material, to be utilised. 6. Develop and stimulate "Cascading utilization" (the sequential utilization of renewable raw materials for material and energy uses) of biomass. Continue and update the federal biomass database on production, import and export Europe (Federal) (Regional) Regional (Federal) Federal (Europe) Regional Regional Regional Federal Research and innovation 7. Create a “Regional Biobased Economy Research and Innovation Task Force”. The Task Force should develop regional research and innovation roadmaps in the area of the biobased economy and biorefineries, and better align the content of public funded research programmes with Regional (FISCH/Greenwin) 38 industry needs Regional 8. Make necessary funding available for multidisciplinary research programmes Regional (FiSCH/Greenwin) 9. Regions should participate in the related ERA-NETs and stimulate the participation of companies and research institutes to EU research projects 10. Build competence networks between industry and academia to overcome the knowledge gap and competence hurdle that currently exists 11. Set up a public-private partnership (regional biobased economy clusters), which should finance larger interdisciplinary research projects, optimise knowledge transfer and stimulate dissemination of knowledge towards SME’s Regional (FISCH/GREENWIN) (Federal) Regional (FiSCH/Greenwin) Stimulating production and consumption 12. Develop specific grants and loans for developing new technologies and for investment in to infrastructure (eg construction of biorefineries), and incentives for pioneering commercial production, based on sustainable criteria. 13. Develop technical standards and labeling in an early stage. Regional/Federal Federal (Europe) Visibility and awareness 14. Regional Bio-economy Clusters, should further focus on bringing together the different stakeholders of the value and innovation chain - Regional (FiSCH/Cinbios; Greenwin/Valbiom) to create awareness amongst SMEs 39 - to find new opportunities for organic waste - to stimulate cross sectorial collaboration - to increase the visibility of the Regional biobased economy - to attract foreign investors; 15. and they should develop multidisciplinary education, good training programmes and efficient lifelong learning programmes in the area of the bio-economy 16. The government should develop a strategy for communication and stakeholder involvement, in order to raise awareness of the technologies and their benefits (e.g. LCA, life cycle analysis) Regional (FiSCH/Cinbios; Greenwin/Valbiom) Regional/Federal 40 essenscia/bio.be Belgian Biotechnology Industry Organisation Diamant Building Boulevard Auguste Reyerslaan 80 1030 Brussel/Bruxelles +32 2 238 98 44 41 42
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