SESSION 1 BBI JU Info Day 2016

@BBI2020 #BBIInfoDay

Supported by

BBI JU’s impact on socio-

economic benefits for

Europe

Dirk Carrez Executive Director

THE BIO-BASED

INDUSTRIES

CONSORTIUM

• Established in 2012 to represent the private sector in the Public-Private

Partnership BBI Bio-based Industries (EC representing the public sector).

• A multi-sector organisation, and still growing

• Mission

• Define the BBI’s Strategic Innovation & Research Agenda

• Lead the drafting of the annual BBI Work Plans & Call for Proposals topics

• Mobilise stakeholders: industry (large, SMEs, SME Clusters), research

organisations, universities, regions and all other relevant stakeholders across

Europe

• Improve (conditions for) “Access to finance” in Europe

• Create awareness at Regional level (MoU with ERRIN, Vanguard Initiative,

…)

About the Biobased Industries

Consortium (BIC)

■ 70 Full members

• Large industries

• SMEs

• Regional clusters

■ 155 Associate members

• Universities & RTOs

• European (Trade) Organisations

• (European) Technology Platforms (ETPs)

• Clusters

• Private banks

■ Several industrial sectors covered

• Agriculture & Agro-food

• Forestry & Pulp and Paper

• Technology providers

• Chemicals

• Energy

• Other sectors

Our members More than 200, and still growing

BIC membership benefits

Importance of the EU

bio(based) economy

The total European Bioeconomy, including the food, feed, beverages and primary sectors

(agriculture and forestry) amounts to 2.1 trillion EUR turnover.

Turnover in the EU bioeconomy

Turnover in the EU

“biobased industries”

The bio-based industries (chemicals and plastics, pharmaceuticals, paper and paper products,

forest-based industries, textile sector, biofuels and bioenergy) contribute with 600 billion EUR.

The total employment in the European Bioeconomy is 18.3 million employees with primary

biomass production (agriculture, forestry & fishery) as the biggest contributor (58%).

Employment in the EU bioeconomy

Employment in the EU

“biobased industries”

The bio-based industries contribute with 3.2 million employees.

Socio-economic impact

& benefits

BIC’s expectations:

(in)direct impact of the BBI JU

• A clear framework that brings clarity for activities & investments, together with

predictability

• Developing new value chains involving different industrial sectors

• A joint approach - across sectors and nations – that will unite parties that

• would otherwise find these activities too risky for an individual sector/company

to carry out on its own

• are not used to work together

• Improve access to finance (EIB, ESIF, …):

attract investments to EU

• Leverage further (industry) investments

BIC members: estimated investments in the pipeline

Preliminary results

Investments

Value Chain

Estimated total investment of

the BIC members in M€

(January 2015)

Estimated total investment of the

BIC members in M€

(January 2016)

Lignocellulosic

305 1387

Forestry based

1810 2537

Agricultural crops

30 107

Organic waste

15 31

All VC together 2160 4062

Investments:

case studies

Novamont: FIRST2RUN

an integrated biorefinery for dry crops

Aim: • Demonstrate that oil crops like cardoon grown in arid and/or marginal lands (dry) can be exploited

by setting up a value chain that integrates the regional agricultural sector with a new biorefinery. • The reconversion of the Porto Torres petrochemical site into a biorefinery with an integrated

production chain for chemical intermediates. • Producing chemicals and animal feed, ensuring that the biorefinery is positioned at the heart of a

circular economy model.

Project details: • Start date: 1 July 2015 • Duration: Four years • Total cost: €52 million,

including €17 million in BBI funding

• Website: first2run.eu

Projected impacts: • Large-scale cultivation of cardoon (up to 3.5 kha) through the involvement

and support of local farmers • Consumption of thermal and electric energy for chemical processes is

reduced by up to 50% and 20% respectively • Sustainable, cost-effective and innovative catalytic and biocatalytic processes

are applied for the production of bio-based building blocks from high oleic oils (such as azelaic acid, pelargonic acid and glycerol)

• Bio-based azelaic and pelargonic acid are manufactured in a plant with a production capacity of up to 10,000 tonnes/year for each acid. Batch production of biodegradable esters of up to 20,000 tonnes/year is demonstrated

• A 35% reduction in greenhouse gas (GHG) emissions is achieved

Applications: • Azelaic acid • Plasticisers for PVC • Biolubricants • Components for

cosmetics • Oil extenders for rubber • Bio-herbicides

GFBiochemicals:

Producing levulinic acid

Aim: • Produce levulinic acid at commercial scale directly from biomass. GFBiochemicals has retrofitted an

existing plant to produce 10 kta of levulinic acid and 2 kta of formic acid from waste biomass.

Project details: • Total investment: €30 million

Projected impacts: • By 2017, the project will generate 600 direct and indirect jobs and inject €40

million into the economy

• Bio-based products made with levulinic acid will be used as replacements for petroleum-based products, resulting in greenhouse gas emission reductions (GHG) of 40,000 tons

• Land that is unsuitable for arable farming will be cultivated for non-food crops

• The creation of a new value chain centred on levulinic acid, a versatile building block for chemicals and materials derived directly from biomass, will help to reduce dependence on fossil fuels and contribute to the circular economy

Applications: • Levulinic acid

Metsä Group’s bioproduct mill

Aim: • Metsä Group’s €1.2 billion bioproduct mill in Finland is one of the most significant bioeconomy investments in the

EU since the start of BBI JU. Construction began in 2015 and the mill will come online in Q3 2017.

Project details: • Start date: May 2015 • Duration: 3.5 years • Total cost: €1.2 billion • Website: bioproductmill.com

Projected impacts: • When fully operational, 2,500 jobs will have been created in the value chain

from the forest to the delivery of the products, including 1,500 entirely new jobs

• Once completed, the bioproduct mill is expected to purchase raw materials and services worth €0.5 billion per year and increase the annual value of Finnish export by €0.5 billion

• Environmental benefits will include reduced fresh water use per ton of pulp produced, improved energy efficiency, total independence from fossil energy, lower emissions to the air, and at-site production of key chemicals using mill waste streams, thus promoting waste reduction and recycling

• The core mill investment of €1.2 billion enables, in a second stage, the introduction of new bio-based value chains and new bioproducts that are using the core mill as an platform. To date, already three such new value chains/bioproducts have been announced

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