Funded by the Government of Alberta

Making choices: Investing in the Alberta bioeconomy

Dr. Stan Blade, Chief Executive Officer

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Presentation for: World Congress on Industrial BiotechnologyRegional Bioeconomy Development – Models and Success Factors

Alberta, Alberta, Canada

Alberta Exports

Climate Change Strategy

• The Climate Change Strategy established the following targets for Alberta:

– By 2020 ‐‐ Stabilize greenhouse gas emissions ‐ 50 megatonne reduction

– By 2050 ‐‐ emissions reduced 50 per cent below business as usual level. This equals 200 megatonnes, or 14 percent below 2005 levels.

• The initiation of the Climate Change and Emissions Management Corporation has resulted in $300+ million (supported by $15/tonne GHG) available to invest in clean technologies.

Climate Change and Emissions Management Corporation

2005‐2008 Alberta Industry drivers

• A need to be profitable• Next generation economy opportunities• Sustainable practices• Greenhouse gas emissions• Ecosystem adaptation to climate change• Rural development• Enhanced agricultural and forestry productivity• Demographics/industry structure• The need for innovation

2014‐Alberta Industry drivers

• Natural gas prices• Government budget pressure• Lack of venture capital• Changes in motivation 

– U.S. energy security

– EU climate change• Desire for economic diversification• Expectation to be on the front edge of new business 

opportunity

Basis of the bioeconomy

• Why  do anything different?• Identify what makes Alberta unique• Focus on existing industrial sector strengths• Use research and innovation investments to build business relationships (risk mitigation)

• Connect with existing high level government policy direction

• Build on early success

Provincial Governments Are Taking Action

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Focus actions around four key strategies:

1. Clusters‐Building biorefineries and integrated lignocellulose industrial clusters

2. Build on existing strength ‐Transforming and sustaining the current lignocellulose‐based industries

3. Communities ‐ Sustaining and enhancing forest and agriculture based communities

4. New companies ‐ Growing biocomposite, biomaterial and bioproduct companies

State of the Industry• In 2012, agriculture in Alberta created $12.0 billion of value for farmers

• Food and beverage manufacturing reached $11.9 billion in 2012

• In 2012, Alberta’s revenue from forest manufactured goods was $4.0 billion

We have mature, established industries….

Alberta Farm Gate Value

(2012)

Product Value ($mil)Beef 4,893Canola 3,077Wheat 2,057Hogs 414Dairy 521Poultry 330Pulses 329Barley 277Potatoes 176Vegetables 75 Processing - $12.2B

Harvesting Alberta’s Forests 

Developing the Alberta bioeconomy• Feedstock availability• Building the bioeconomy is a private and public sector priority

• Unique facilities• Conversion technology initiatives• Bioproduct development opportunities• Companies are investing• Communities are engaged

Biological Capital – Alberta (forest area per person ‐ hectares)

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Biological Capital – Alberta (arable land per person ‐ hectares)

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8.5 million hectares of arable land +

11+ million hectares – pasture and forage

Bio‐Resource Management System 

• Data ‐ scientifically validated approach to  estimating biomass availability in Alberta’s forest and agriculture zones 

• Will include proprietary and non‐proprietary data.  

• Developed with AI Bio

Bioeconomy cropsTriticale

Hybrid Willow

Canola

Flax

Bioconversions NetworkThe Biorefining Conversions Network (BCN), a research network based out of the University of Alberta, is focused on aligning local and global research communities in the area of biorefining conversion technologies. 

Alberta Biomaterial Development Centre ‐ ABDC

• ABDC is a newly formed provincial initiative with the mandate to establish Alberta as an innovation and commercialization leader in the growing field of agriculture and forestry based biomaterials. 

Cellulose Nanocrystals

Bioeconomy Alberta Team

Alberta private sector investment‐ Growing Power/Highmark Renewables

Tekle Technical Services Inc. (TTS)  

•Using agricultural fibres, forestry residue, municipal fiber waste using biobasedadhesives & additives

•Engineered fibre mats•Structural Insulated Panel (SIP)•Composite Panels•Fibre Cement Composites•Fibre Plastic composites(Source TTS)

Alberta private sector investment‐ Enerkem/City of Edmonton

• 25‐year contractual agreement between City of Edmonton and Enerkem

• 100,000 tonnes / y of waste will be diverted from landfill. Edmonton will achieve 90% diversion rate.

• Enerkem and GreenField Ethanol will build, own and operate the plant. City of Edmonton will share profits (after CAPEX has been recovered).

• Will produce 36 million litres of ethanol per year

• Project will reduce CO2 footprint by 6 million tons over 25 years. CO2 credits and profits will be shared.

Al-Pac to make bio-methanol in 2012Boyle, AB - Alberta-Pacific Forest Industries Inc. has received $4.5 million in federal government funds to support the company's methanol purification project at its plant in Boyle, AB.

The funding means that Al-Pac now has the approvals required to install equipment that will see bio-methanol separated and purified using a new technology developed in partnership with A.H. Lundberg. This project will be the first of its kind according to Al-Pac.

The mill already makes un-purified methanol that is burned as a fuel in the kiln to help recycle lime. The new technology will purify that methanol, which will be used in the productionof a pulp whitening agent. Any remaining bio-methanol will be sold.

"Bio-methanol is one of the many products we can produce, and it is the result of research and innovation in the pulp industry," notes Al Ward, Al-Pac's president and COO.

-Canadian Business Magazine

New investments

Alberta Forest Products Roadmap

Alberta Innovates• The focus is on areas where Alberta has a

competitive advantage.

• Realigns provincially funded research and innovation into a cohesive, accessible system.

• Funds world-class research to support Government of Alberta priorities.

• Coordinates and supports investments required to solve major industry challenges.

• Provides research and innovation support.

Alberta Innovates Bio Solutions: Business Plan Priorities

•Market Driven Traits and Products•Agriculture and Forest Sustainability

Sustainable Production

•New Conversion Processes•New Products

Advancing the Bioeconomy

•Products and Processes for Improved Wellbeing

• Food SafetyFood Innovation

• Science‐based Solutions for Immediate Industry Challenges

• Integrated Business ModelsEcosystem Services

•Advancing Science and its Application•Connections between Prion and Other Protein Misfolding Diseases

Prion and Protein Misfolding Diseases

Stanford Blade, Ph.D.Chief Executive OfficerAlberta Innovates ‐ Bio Solutions1800 Phipps McKinnon Building10020‐101A AvenueEdmonton, Alberta  Canada T5J 3G2

Telephone: (780) 427‐0367Fax: (780) 427‐3252Email: stan.blade@albertainnovates.caWebsite: www.albertainnovates.ca/bio

Twitter: BioSolutionsCEO