Biotechnology, pharmaceutical and
life sciences
2nd and 3rd generation biorefineries
This consists of generating energy, biofuels (bioethanol and biodiesel), biopolymers and basic chemicals using mechanical, thermal, chemical or
biochemical processes from biomass from agricultural, agro-industrial waste and municipal solid waste.
The first generation biorefineries based on food crops are not sustainable with the environment and also increases the price of food and drawback that is
dealt with via the second and third generations that support a larger variety of biomass (agricultural, livestock and municipal solid waste).
ORIGIN OF THE INVESTMENT OPPORTUNITY
ECONOMIC/BUSINESS
REGULATIONS
DEMAND
TECHNOLOGY
Western economies are highly vulnerable to oil price increases, which is the reason for the search for alternatives to fossil fuels in order to reduce
energy dependence, the solution to which are second and third generation biorefineries.
Regarding the legislation, Directive 2009/28/ EC for Renewable Energy and the 2011-2020 Renewable Energy Plan in Spain have the aim of consuming 20%
of energy from renewables. The transport sector consumes 6% from first generation biofuels (initial target for 2013 was 10%) and 2.5% of second
generation, with the latter producing demand for second generation refineries.
To facilitate the complex technological transition towards new biorefineries, the H2020 program (with a budget of 3.7 billion € for the period 2014-2020)
open periodic applications for funding for research projects concerning the synthesis of chemicals from lignocellulosic raw material, as for example,
H2020-BBI-PPP-1/1/2015 had a budget of €100 M (September 2015).
LOCATION OF THE INVESTMENT OPPORTUNITY IN THE SECTOR VALUE CHAIN
Scale
Research
Production
Commercialisation
The opportunity is in the industrial scaling link The strength of the previous link ensures the number of projects with the potential to scale industrially.
The "research" link is the one that concentrates most of the activity of the value chain in the generation of research. The proofs of concept, although
relatively expensive, are becoming more viable due to the appearance of pilot scale plants such as the CLaMber project in Castilla-La Mancha.
DIFFERENTIATING FACTORS OF THE INVESTMENT OPPORTUNITY
CONSUMER/USER
COMPANY/INNOVATION
Innovation
Price
Quality
SOCIETY
Operations
Supplies
New business lines
• For corporate social responsibility reasons,
corporate energy consumers support the
migration towards clean, sustainable
technologies and are committed to local
employment
• Second generation biorefineries represent
a cut emissions of between 80% and 90%
compared to petrol and they consume
agricultural waste in the process. In
addition, the resulting products offer the
same user experience as petrol.
Environment
Well-being
Safety
• The introduction of new biorefineries creates
the opportunity to transform the old value
chain of first-generation biorefineries.
• Opportunities for suppliers such as forestry
companies and suppliers of agricultural and
livestock waste are opened; as they are for
engineering of bioindustrial processes, installers
and maintenance companies and plant genetics
laboratories with the aim of reducing the
amount of lignin in plants for bioenergy
• Using second and third generation refineries
at the expense of the first generation, corrects
the negative effects of biofuel demand on
increased food prices, the mass clearing of
forests in Asia and Latin America to increase
the surface for production and reduces the
CO2 footprint.
• The new biorefineries minimise the impact of
agro-industrial waste, create jobs and secure
population in rural areas.
purposes.
INVESTMENT OPPORTUNITY LIFE CYCLE
DEVELOPMENT
INTRODUCTION
GROWTH
MATURITY
Because the EU promotes the perfection of technologies through the H2020 programme and ensures market share for the consumption of the products,
the opportunity
is in the introduction phase with hints of growth from 2020.
INTRODUCTION
The decision by the European Union to limit the use of biofuels made from food crops to 6% compared to the initial target of 10%, and the obligation of
the Parliament with respect to second-generation biofuels provide at least 2.5% of total energy consumption in the transport sector in 2020, accelerating
the transition to a new generation of biofuels made from algae and organic waste.
Sources: IDEA (2014). MINETUR (2015). ASEBIO (2015).
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Biotechnology, pharmaceutical and
life sciences
2nd and 3rd generation biorefineries
CHARACTERISTICS OF THE SECTOR (1)
Turnover
Geographical distribution of biotechnology
companies (2013)
Consol idated turnover
Annual Change in %
100.000 M€
30,0%
Ca ta l onia;
19,43%
80.000 M€
20,0%
60.000 M€
40.000 M€
Other;
37,45%
10,0%
20.000 M€
0 M€
0,0%
2009
2010
2011
Employment
2012
2013
Anda lusia;
15,49%
Geographical distribution of companies
using biotechnology (2013)
Nº companies
Nº
employees/company
4.000
Ma dri d;
17,54%
Va l encian
Community
; 10,09%
3.000
150
Ca ta l onia;
14,89%
100
2.000
Other;
51,83%
50
1.000
0
0
2009
2010
2011
2012
2013
Ma dri d;
12,13%
Pa ís Vasco;
11,88%
Anda lusia;
9,27%
SUPPLY
DEMAND
TOP 5 COMPETITORS IN SPAIN
GROWTH
#
Company
Net sales
Last
available
data
1
CEPSA
€26,178.00 M
2014
2
Abengoa
€7,150.60 M
2014
3
Bioetanol Galicia
€164.30 M
2013
4
Neol Bio
€0.043 M
2013
5
1nkemia IUCT Group
€0.040 M
2013
• In Spain, biofuel consumption in 2014 increased to 6.6% to reach a
total production of 1.16 million metric tons.
• According to ASEBIO, Spain is very well placed for a position among the
world leaders in the industrial biotechnology sector (white
biotechnology). Mainly because Spain has a prolific research sector
and now has 58 biodiesel plants and 21 further projects. Regarding the
production of second generation bioethanol, Spain has 11 bioethanol
plants.
SUCCESS STORIES
The W2B (waste to biofuels) technology of the Spanish company is a world leader in the production of second
generation bioethanol from lignocellulosic and municipal solid waste.
The company has a pilot plant in Salamanca with capacity to process 25,000 tons of municipal solid waste (MSW), and
capability to produce up to 1.5 million litres of bioethanol fuel.
Abengoa was selected in 2015 to build the first US biorefinery for municipal waste for €185M and it will be the first
biorefinery using gasification technology to convert municipal solid waste (MSW) into synthetic crude, to be
transformed into fuel for aviation.
NEOL is a company that develops innovative industrial biotechnology processes for application to the oleochemical,
bioenergy and biopolymers sectors. Bioproduction for obtaining PUFAs (polyunsaturated fatty acids),
polyunsaturated fatty acids from microalgae in 2014 stand out. Among the technology assets of the company Neol®
Microbiotools stands out. It is a bioprocesses development platform based on an exclusive collection of over 9,000
microorganisms isolated by Neol in extreme ecosystems.
The company won two tenders for the biorefinery in Puertollano (CLaMber project) in 2015 to produce, from various
agricultural residues, high value-added products: oils rich in Omega-3 DHA. The implementation of these projects will
see a turnover of over one million euros in 2015.
The CLaMber project in Puertollano, pursues the promotion of bio-economy in the region of Castilla-La Mancha as its
main objective. The aim is to produce biofuels based on the use of industrial waste from the primary sector and
contract R+D services to improve the competitiveness of SMEs in the region.
CLaMber represents a total investment of 20 million euros and is 80% funded by the ERDF with funds for IVICAM
(Institute of Vine and Wine of Castilla La Mancha), the Ministry of Economy and Competitiveness and Castilla-La
Mancha.
Sources: (1) ASEBIO, "Report - status and trends of biotechnology in Spain 2014" (2014). CLaMber (2012). Biodieselspain (2015). ABENGOA (2015). NEOL (2015).
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Biotechnology, pharmaceutical and
life sciences
2nd and 3rd generation biorefineries
POSITIVE FACTORS FOR INVESTING IN SPAIN
Favourable factors in Spain for the development of the opportunity
Industry
committed to
innovation
ASEBIO started its participation, together with Abengoa Research on the "Valorising Biorefinery By-Products" project (VALORPLUS).
The aim of the project focuses on the development of biotechnological processes for more sustainable and economically viable
biorefineries. By integrating these processes there is a full use of biomass without emission of waste (closed cycle). (2)
Universities as
prolific R+D
centres
Research activity in Spain is prolific and include researchers from the Polytechnic University of Madrid and the University Miguel
Hernández (Elche) who have increased biomass production using sewage sludge as fertilizer on energy crops, researchers at the
University of Navarra cut production costs of biodiesel using a new method and researchers at the University of Cordoba who
obtained a new biofuel similar to biodiesel from sunflower oil.
Springboard to
new markets
Spain has private and public-subsidised assets to support research in this field. The 2nd generation pilot plant in Abengoa stands
out, which used Babilafuente to test the technology before introducing it in the US. The CLaMber project houses a pilot Biorefinery
where companies can carry out their experiments at almost full-scale.
Social factors and
habits
Using second and third generation refineries at the expense of the first generation, corrects the negative effects of biofuel demand
on increased food prices, the mass clearing of forests in Asia and Latin America to increase the surface for production and reduces
the CO2 footprint.
Favourable factors for the sector in Spain
Macroeconomic
situation
For weight of the sector in GDP (sales of companies using biotechnology
respect to national GDP), the ratio continues to grow another year and
reached 9.07% of GDP at constant prices (compared with 7.61% in 2012 and
the low 2.91% in 2008). 88% of companies carried out some international
activity, mainly in Europe and North America. (2)
Labour market
The average productivity per employee in the chemicals sector is 91, 400
euros per year. Their average individual remuneration is 51,300 euros per
year. The Unit Labour Cost accounts for 56.1% of the ratio between the
remuneration per employee and the individual productivity (productivity
defined as value added per employee). (3)
Incentives
The Centre for the Development of Industrial Technology (CDTI) finances R+D projects in four categories: Individual R+D projects,
National Cooperation R+D projects, International Technological Cooperation Projects and specific announced R+D projects.
Furthermore, there are other cross-sectional programmes such as the línea Directa de Innovación, the línea de Innovación Global,
Innvierte and FEDER (ERDF) Innterconecta. Also, the ICEX-IIS Technology Fund funded by the ERDF and ICEX offers companies with
foreign capital aid of up to 75% of the project to carry out new R +D+i in Spain.
I+D+i
The Spanish biotechnology companies involved in R+D+i are small: 84% of companies have fewer than 100 employees, 68% no more
than 25 employees and 38% have less than 10 employees (micro), mostly spin-offs. (4)
Suppliers,
Supplies, Raw
materials
Biomass and municipal solid waste (MSW) are the main raw materials used by biorefineries. Spain is a country rich in both
commodities. Regarding biomass, Spain generates 46 million tons annually, of which 18 million are not currently exploited. As for
MSW, it is generated in homes and in Spain there were 22.4 million tons of municipal waste in 2012.
Geographic
location
Spain is within reach of three main regions: the European region, the Mediterranean region and the Atlantic region. Spain is
considered to be the gateway between North Africa and Europe, and a key link to Latin America,
not only because of its geographical location but also because of its strong historical and cultural ties with the region. In Spain the
Canary Islands play a key role with regards to maritime traffic with West Africa.
Technological and
research
infrastructure
The Healthcare Reputation Monitor (MRS) establishes the best public and
private hospitals based on indicators such as human and material resources,
number of beds, availability of basic and high-tech equipment, total admissions
and average time of stay, and satisfaction with the service.
The top five public hospitals are La Paz, Hospital Clínic i Provincial de
Barcelona, the Gregorio Maranon, Vall d'Hebron Hospital and 12 de Octobre.
The five best private centres are the Navarra University Hospital , the HM
Montepríncipe, the HM Sanchinarro, the Quirón de Madrid and the Hospital
Ruber Internacional. (5)
Transport
infrastructure and
logistics networks
Remuneration per employee (thousands of €)
Oil refining
Supply of Electricity, g as, steam
Aerospace construction
Railway equipment
Chemicals
Basic metals
Shipbuilding
Vehicles
Electrical ma chinery
Electronics and ICT
Machinery and mechanical equipment
Total manufacturing
Rubber and plastics
Pa per, gra phic a rts
Food, beverag es and tobacco
Furniture
Textiles and clothing
81,6
78,5
64,0
55,8
51,3
47,9
44,3
43,1
43,0
42,7
42,0
38,2
37,7
36,5
32,2
26,5
26,2
Graph created using data from the Sectoral Presentation: chemicals
sector. April 2015. Ministry of Industry, Energy and Tourism
Location of the top 10 public and private
hospitals in Spain in 2014.
Public hospitals
Private Hospitals
There are 250 airlines operating in Spain in its 47 airports; its high-speed rail
network is the 2nd best in the world and the best in Europe; it is ranked 1st in
the EU for its motorway network; and it has excellent sea connections to its 46
ports distributed along the Atlantic and Mediterranean coasts. (6)
Graph created using the results of the Health Reputation Monitor
presented by Merco (2014).
Sources: (2) ASEBIO, "Report - status and trends of biotechnology in Spain 2014" (2014). (3) MINETUR, "sectoral Presentation: Chemicals industry" (2015). (4) MINETUR "Report - profile of Spanish
biotechnology companies involved in R+D+I" (2014). (5) Merco, “Healthcare provision indicators" (2014). (6) Brand Spain, "Foreign investment in Spain and its socio-economic contribution" (2014)
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