Russian Technology Platform«Bioindustry and Bioresources – BioTech2030»Perspectives for Russian-German co-operation

The strategic goal is the level of Bioeconomy ~ 1 % of GDP by 2020, and ~3 % of GDP by 2030

The “Bio2020” Program of Biotechnology Development in the Russian Federation to 2020

Russia's share in the global market of biotechnology:

Russian biotechnology today

15%

20%

65%

Capacity – 1.6 billion $Annual growth rate – 11%

Imports part – 85%, including:

biopharmaceuticals – 89%agricultural biotechnologies – 93%

enzymes – 89%live cultures – 88%

ecobiotechnologies – 82%

5%3,4%

0,2% 0,7%

1980 1990 2000 2010

Biopharmaceuticals

Agricultural

biotechnologies

Other (Industrial, Food and Forest

biotechnologies)

Source: Abercade, Ernst & Young, Rosstat

Strong biotech industry in the USSR1. Hydrolysis plants (42) 2. Yeast protein (SCP) plants (12) 3. Lysine (5) 4. Enzymes (5)

Post-Soviet bioindustry in the Russian Federation

Gradual revival

What is biotech/bioeconomyfor Russia?

Modernization of industry and agriculture

Sustainability

Social benefits

New jobs

Stabilization of rural population

Easing social problems in distant and/or isolated cities/areas

Strategic challenges

Possible devaluation of traditional markets and major export products due to substitution by the products obtained from renewables

Securing food and drug security, substitution of imports of major biotech products with local production

Sustainable development of the economy

Vast territory of Russia and unlimited resources of renewable biomass

Creation of new jobs in distant and rural areas

World, B$

Promising segments of the Russian market

1

14% p.a.

2020

12-16

5-7

0.5-1.5

4-6

0-2

2015

6-8

3-5

0.1-0.3

2-4

0-1

2009

2-4

1-2

0

<1

20

14

14

CAGR %

BiopharmaBioinformaticsBiomaterialsBiofuels

39

Russia, B$

510

2015

160

270

35

260

720

2020

8% p.a.

105

200

11

194

2009

320

120

3

150

65

9

6

8

CAGR %

25

Why technology platforms?

A form of PPP

Role of TPs as an instrument of innovative development has been recognized by the state

Replicas of European TPs

Leading role of private business and state corporations

Open, transparent, democratic structure

Technology platforms as an instrument to develop bioeconomy

Siberian State MedicalUniversity

Medicine of the Future

Lomonosov Moscow State University

Russian Technologies State Corporation

Bioindustry and Bioresources

Kurchatov Institute

Bioenergy

Technology Platforms in Biotechnology

Areas of economy affected by TPs

Electric power generation

Fuel industry

Non-ferrous metallurgy

Chemical and petrochemical industries

Mechanical engineering and metalworking

Forestry, woodworking, pulp and paper

industry

Building materials industry

Textile industry

Food industry

Microbiological industry

Flour, cereal and fodder

industry

Healthcare

Printing industry

Industry

Agriculture

Environment protection

Forestry

R&D and scientific services

Medicine of the Future

Biotech 2030 Bioenergy

Scien

tificA

dviso

ry Co

mm

ittee

Expe

rtise

General Assembly of TP participants

Forest biotechnology

FOR

EST

Food biotechnology

YEL

LOW

Industrialbiotechnology

WH

ITE

Agricultural biotechnology,

Geomicrobiology

GR

EEN

Internationalcooperation

Strategic programs and Research

Organization and External

communications

Education and Training activities

Regulation and Legislation

Finance andInvestment

Research Infrastructure

Working Groups

Sup

erv

iso

ryco

un

cil

Stat

e

rep

rese

nta

tive

s

Co-chairmen of the Platform

Bureau of the Platform

Secretariat

SECTORS

GK-Russian Technologies

RT-Biotechprom

Aquaculture biotechnology BLU

E

Ecobiotechnology

GR

EYBioindustry and Bioresources

TP members, more than 140

29%

9%24%

37%

Busines

Professional Associations

Research Institutes

Universities

Areas of economy supportedby TP BioTech2030

Agriculture (biological substances for veterinary, plant growth stimulation, plant protection; enzymes, amino acids; transgenic plants and animals)

Food (food ingredients, products for functional, infant and specialized food, for nutritional care)

Chemical industry (wide range of biosynthetic products, including bioplastics and biomaterials, for substitution of chemically manufactured products)

Production and processing of oil and minerals (bioleaching technologies, biological substances for oil recovery and refining, reagents for non-ferrous metallurgy)

Forestry (systems for forest recourses monitoring, forest safety and protection, pulp and paper mills, sanitary and lignocellulose processing products)

Aquaculture (products of deep processing of aquatic organisms, specialized feed for aquaculture)

Waste recycling (biological substances for recycling, technologies for agriculture waste conversion into commercial products with high added value)

Selected priority areas

Biorefineries (grain, lignocellulose, algae)

Platform chemicals

Bioplastics and biomaterials

Biocatalysis

Transgenic plants and animals

Valorization of waste

Pulp and paper

Functional foods and feeds

Processing of grain surplus

Project participants ProductsCapacity, tons/year

Total cost,million rubles

Projectimplementation

“ChuvashAgroBio” Ltd, Chuvash Republic

Lysine sulfate,Protein and vitamin supplements,gluten, starch, glucose

50,00061,000

5.6 - 6.0 2010-2013

“PenzaAgroBio” LtdPenza Region

gluten, starch, crystalline glucose, fodder yeast

17,00020,00030,00061,000

4.8 – 5.0 2011-2013

“Zavod premix No.1” Ltd.,Belgorod State University, GosNIIgenetika,Belgorod Region

Lysine,gluten, starch, glucose,bran, wheat extract

35,000

7.7 – 8.0 2010-2015

“Rusprodimport” Ltd., GosNIIgenetika,Stavropol Territory

gluten, starch, glucose, threonine, lysine

Volume of wheat processing240,000

5.0 – 6.3 2011-2015

“Krasnodar Biocenter” Ltd., Krasnodar Territory

Propylene glycol Expected sales1.35 bln. Rub./year

0.5 – 1.0 2012-2014

Processing of grain surplus:Russian-German partnership

Evonik Industries and RusBiotech formed joint venture “Russian Biotechnologies” to erect a lysine plant in Volgodonks of Rostov region

Investment of 150 MEUR

Capacity of processing 300,000 MT of grain

Launch in 2014

Valorization of waste

Efficient technology to transform animal by-products (poultry trimmings, feathers) into high value added functional protein hydrolysates

Pilot plants in operation

Full scale plant in operation (Belgium)

Trimmings: 100 MT/day

Two plants under construction in Russia

Investment ~150 MEUR

Daily productivity

Trimmings: 80 MT 6 MT food-grade product (dried)

Feathers: 10 MT 5 MT feed-grade product

Lignocellulose biorefinery

Biobutanol as the primary product

Site: city of Tulun

Existing hydrolysis facility to be retrofitted

Pilot plant – under construction

Butanol – 60 MT

Full-scale plant

Butanol – 30,000 MT

Butanol + other solvents – 40,000 MT

Partners required

Way forward

Biotechnology should become a national priority

Support of SRA formulated by TPs in the frame of

federal and regional programs

State procurement as an instrument to develop

markets for biotech products

Stimulate businesses introducing biotech products,

destimulate outdated technologies

Support of regional cluster development Tatarstan

Chuvash

Omsk

In progress…Program of Biotechnology Development in the Russian Federation to 2020

Проект

МИНИСТЕРСТВО ЭКОНОМИЧЕСКОГО РАЗВИТИЯ

РОССИЙСКОЙ ФЕДЕРАЦИИ

БИО-2020Программа развития биотехнологий в Российской Федерации

на период до 2020 г.

Governmental commission on high-tech and innovations issued on 01.04.2011 an order to develop a draft of the

Co-ordinated Programme of Biotechnology Development in the Russian Federation to 2020

Calls for drafting >30 reports to the GovernmentImportant changes in legislation and standards

Key features

Co-ordinated program of biotechnology development in Russian Federation to 2020 (biomedicine, IB, agrobio, forestry, environment protection, aquaculture)

Establish National biotechnology council (steering group)

Technology platforms will play a vital role in the Program development and implementation

Main goals

To initiate bioeconomy development in Russia

To support new economy segments associated with industrial biotechnology

To stimulate and develop already existing priority market segments for biotech products - agrobio, food

The strategic goal is the level of bioeconomy ~ 1 % of GDP by 2020, and ~3 % of GDP by 2030

Perspectives for Russian-German co-operation

Technology transfer (ref.Evonik)

Participation of German SMEs and Universities in SRA of BioTech2030

Bilateral calls (FASIE-BMBF, MES-BMBF)

Joint applications in ERA-NET IB

Organizational measures

Revive German-Russian bilateral working group on life sciences

Support from the Russian side of the activities of the German-Russian Cooperation Network

The future is green!

www.biotech2030.ru

Initiative

Demand

Production

Innovations

• Setting-up of a national biotech initiative• Establishment of a coordinating body

• Creation of internal markets for biotechnology products

• Facilitating access to foreign markets of biotechnology products

• Formulation of the requirements for products of the biotechnology complex

• Stimulation of biotechnology start-ups• Transfer of key technologies• Development of raw material (bioresource’s)

base

• Establishment of national biotech centers of excellence• Personnel education and training• Funding for scientific and applied biotech research• Biotech clusters development

Prospects for the developmentof biotechnology