Dr. Christian Patermann Director ret., EU-Commission Advisor to the German Land NRW Member of the 1st Bioeconomy Council of Germany

Buenos Aires, 21th March 2013

Europe en route

into a biobased world -

Best practices and perspectives

Increase of worldwide demands for food, feed, fibre and fuels

REASONS:

Continuously growing world population, but slowing down in the next 30 years; growing use of oil for energy, mobility, transport and other purposes

Growing wealth in US, Canada, Europe and BRICKS countries: increase of meat consumption, dairy products, eggs, fats, energy and water intensive food, for example vegetables, horticultural products, fruits, fish, luxury goods and services, with a strong emphasis on health

REASONS:

Growing demand for micronutrients, i.e. iron, zinc, iodine, vitamins and trace elements

Growing influences of the ermerging middle classes i.p. outside Europe with their own pattern of life style

Increase of worldwide demands for food, feed, fibre and fuels

Areas to be cultivated per person will be reduced by 50 % until 2020 (various impact on plant and livestock production) -> Only one third of cultivated land available per capita compared with 1950 !

This trend is going to continue, even worsened by continuous soil erosion, desertification and urbanization activities all over the world, including doubtful soil and water management. This will lead to a strong increase of processed food with large impacts on retailing and distribution systems, more energy consumption and heavier losses

Decrease of available arable land worldwide

The challenge: How to bridge the gap between offer and demand ?

Sustainable increase of yield per hectare (increase in crop and livestock productivity)

Sucessfully combating plants and animal deseases, also in a preemptive way

Measures of resources efficiency along the whole food-feed-chains

Use of hitherto not usable or accessible arid or semi-arid land by plants and animals (deforestation no solution !)

Increased use of any kind of existing or dedicated waste based on biological resources (incl. animal‘s waste)

Increased use of existing ligno-cellulosic biomass

Increased use of microalgae and other ocean seas-potentials

Increased storage capacities for water, food, feed and fodder

Decrease of pre- and post-harvest losses in agriculture (60% in Russia, 35% in India etc.)

Decrease of other losses along the whole food chain (appr. 20% in Europe).Losses in the feed chain have not yet been seriously examined !

THUS A BOUQUET OF MEASURES WILL BE NECESSARY TO BRIDGE THE GAP. One answer might be the BIOBASED ECONOMY !

The challenge: How to bridge the gap between offer and demand ?

What is the Knowledge-Based Bio-Economy?

The knowledge base: Advances in Life Sciences and Biotechnologies in

convergence with other technologies such as nanotechnologies,

chemistry, information technologies..,

The Bio-Economy: Includes all industries and economic sectors that

produce, manage or otherwise make use of biological resources

including bio-waste.

The European Bio-Economy has an approximate market size of over

2.0 trillion € , employing more than 22 million people.

4 Fs: Food, Feed, Fiber and Fuel

The presentation shall neither be binding nor construed as constituting commitment by the European Commission

…and to process renewable raw materials into value added products in

the food, bio-based and energy industries.

© Biopact

The Bioeconomy Using research and innovation to produce renewable raw materials sustainably in agriculture, forestry, fisheries and aquaculture…

What are the driving forces behind the Knowledge-Based Bio-Economy

beyond competitiveness ?

Global challenges like : Growing and aging populations

Increased demand for high quality food and sustainable food

production

Increased incidence of food-related disorders (cardiovascular, obesity..)

Increased demand for feed

Increase in infectious animal diseases and zoonoses

Danger of plant diseases, new pathogens and pesticides

Limited resources of raw materials and energy

Threat of global warming and other global changes (biodiversity loss etc)

What is the Knowledge-Based Bio-Economy offering?

• Improved health

Food with improved nutritional value, increased

food safety, new treatments, diagnosis and vaccines

against human and animal diseases, improved

feed…

• Sustainability and a cleaner environment

Energy and water saving production and processes

in agriculture and industry ; carbon neutrality,

decreased dependency of fossil resources;

What is the Knowledge-Based Bio-Economy offering?

• Resource use efficiency: “More with less”

• Innovation strategy

• Support to rural development

Use of “set-aside” land; cultivation of new crops;

decentralised production facilities

• Increased industrial competitiveness through

innovative eco-efficient bio-based products

12

The Bioeconomy as part of the EU economy Sector Annual turnover

(billion €)

Employment

(thousands)

Food 965 4,400

Agriculture 381 12,000

Paper/Pulp 375 1,800

Forestry/Wood ind. 269 3,000

Fisheries and

Aquaculture 32 500

Bio-based industries

• Bio-chemicals and

plastics 50 (est.) 150 (est.)

▪ Enzymes 0.8 (est.) 5 (est.)

• Biofuels 6 150

Total 2,078 22,005

© The Knowledge Based Bio-Economy (KBBE) in Europe: Achievements and Challenges, Full Report (2010); EC, Facts and figures

on the CFP, Basic Statistics Data, ISSN 1830-9119, 2010 Edition

Bioeconomy in the EU

Publication of the draft of

HORIZON 2020 on the 30th

November 2011 in Brussels

14

14

Europe 2020 Priorities

Tackling Societal Challenges - Health, demographic change and wellbeing - Food sec., sust. agri., mar. res. & bioeconomy - Secure, clean and efficient energy - Smart, green and integrated transport - Supply of raw materials, resource efficiency

and climate action - Inclusive, innovative and secure societies

Creating Industrial Leadership and Competitive Frameworks

Leadership in enabling and industrial technologies (Biotechnology,…)

Access to risk finance

Innovation in SMEs

Excellence in the Science Base Frontier research (ERC)

Future and Emerging Technologies (FET)

Skills and career development (Marie Curie)

Research infrastructures

Common rules, toolkit of funding schemes

European Research Area

Simplified access

International cooperation

Coherence with other

EU and MS actions

EIT will contribute to addressing these challenges

Shared objectives and principles

Horizon 2020: Framework Programme for

Research and Innovation

15

Bio-Economy

Commission Communication

Sustainable and competitive

bio-based INDUSTRIES

Targets

Actions

Waste

Biorefineries

New products

BIO-ECONOMY LOW CARBON SOCIETY, FOOD SECURITY and SUSTAINABILITY

GOVERNANCE and POLICY COHERENCE

EU policy coherence and cross-sectoral coordination

Engaging with society and reaching stakeholders

Forward looking and monitoring activities

International cooperation and global links

Stakeholders

Sustainable

AGRICULTURE

and FORESTRY

Targets

Actions

Land use

Resources efficiency

Eco-intensive production

Climate change

Unlocking the potental of

AQUATIC LIVING

RESOURCES

Targets

Actions

Fish stocks

Green fisheries

Competitive aquaculture

Safe FOOD and healthy

nutrition

Targets

Actions

Food Security and Safety

Nutrition

Efficient food/feed

industry

FRAMEWORK FOR INVESTMENT,

INNOVATION and SKILLS

Reinforcing the knowledge base and boosting innovation

Nurturing skills for a bio-economy work-force

Promotion of market and innovation

EU Institutions

International organisations

Member States

EU policies DGs

On 13th February 2012 publication of the first

strategy of this kind for Europe:

“Innovating for Sustainable Growth:

A Bioeconomy for Europe”

17

INVESTMENTS IN RESEARCH, INNOVATION AND SKILLS

Ensure substantial EU and national funding for bioeconomy and innovation

Increase the share of multi-disciplinary and cross-sectoral research and innovation

Promote the uptake and diffusion of innovation in bioeconomy sectors; create feedback

mechanisms on regulation and policy

Build the human capacity required to support growth and integration of bioeconomy

sectors

Stakeholders

EU Institutions

International

organisations

Member States REINFORCED POLICY INTERACTION AND STAKEHOLDER ENGAGEMENT Create a Bioeconomy Panel to enhance synergies and coherence between policies;

foster participation of researchers, end-users, policy- makers and civil society

Establish a Bioeconomy Observatory and develop forward-looking and modelling tools

Support the development of regional and national bioeconomy strategies

Develop international cooperation to jointly address global challenges (e.g. food security,

climate change)

ENHANCEMENT OF MARKETS AND COMPETITIVENESS IN BIOECONOMY

SECTORS

Provide the knowledge-base for sustainable intensification of primary production;

Promote the setting up of networks for integrated and diversified biorefineries; establish a

PPP for bio-based industries

Support expansion of new markets; facilitate green procurement for bio-based products

Develop science-based approaches to inform consumers about product properties

The Bioeconomy Strategy and Action Plan

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Sustainable and competitive bio-based industries

• Fostering the bio-economy for bio-based industries

• Developing integrated biorefineries

• Supporting market-development for bio-based products and

processes

Recommendations of the EU in the Recovery report on Europe 2012, 10th oct 2012:

“Europe needs a new industrial policy to regain growth and economic recovery !”

4 Priorities:

Development of new markets for

Advanced process technologies (“Clean production”)

7 so called key technologies, i.e. industrial biotechnology

Biobased products

For construction and raw materials

23

How is the Biobased Economy implemented in various EU Member States ?

3 Different Stages of Implementation of KBBE:

Integrated concepts and strategies with different levels of integration (AT, BE (Flanders), DE, IR, NL, DK, NO, SE, SF)

No integrated strategies BUT specifically KBBE-related policies and activities (CZ, FR, UK, IT)

More or less no specific acitivities and policies, but acknowledgement of its political importance and potential (EE, GR, LT, SI, PT)

Bioeconomy in the EU Member States

When talking about the Bioeconomy expressions like „Green growth“ (i.e. Denmark), „Green Economy“ (i.e. Ireland) or just „Industrial Biotechnology“ are frequently used instead of the notion Bioeconomy.

Most advanced within the EU: Germany and its „Nationale Forschungstrategie Bioökonomie 2030“ and the Netherland‘s „Biobaseerde Economie 2010-2015“.

Norway launched a 10 years programme for 300 Mio.€ BIONAER end of last year; very similiar to such a programme by Sweden. Both countries have strongly oriented activities along the German model.

Strategy of Finland: „National Resources Strategy“.

In its 10 years future programme for investments (35 Bill. Euro) France mentions Biotechnologies and Bioresources as one of its 11 top topics. France however thinks of a development along the German lines

Belgium and here the region of Flanders willl publish a strategy of its own middle of 2013

Italy envisages a strategy of its own in the second half of 2014 during its EU presidency

Bioeconomy in the EU Member States

National Bioeconomy Programme

of Malaysia, Oct./ Nov. 2012

Bioeconomy in the US, Russia, Malaysia

Outside Europe the Bioeconomy concept also gains momentum

On 24th April 2012 President Putin signed the BIO2020

Programme, the first of ist kind for the Russian

Federation

4 days later President Obama announced his Blueprint

for the Bioeconomy for the United States

The Malaysian Bioeconomy Initiative, including also

medical technologies, production of vaccines, medical

devices, biopharmaceuticals in addition to industrial

biotechnologies is soon being announced

……

The development of the bioeconomy in GERMANY

29 29

Integrated KBBE Concepts – Germany-1

• “Cologne“-Paper - „En route to the Knowledge-Based Bio-Economy“ during the German EU presidency in 2007

• Several Calls for Proposals with direct KBBE references

• High-Tech Initiative of the German Federal Government, linking with the KBBE-concept

• National Bio-Economy Technology Council, directly reporting to the Chancellor

30 30

• Explicit reference to the KBBE and the need for its establishment with the support of the National Bio-Economy Technology Council in the Coalition Agreement of the new German government

• Acknowledgement of Industrial Biotechnology to be an enabling technology for the future to be particularly supported, also agreed in the coalition agreement

• Publication of a relevant report on further developing the Bioeconomy in Germany by the National Bioeconomy Council on the 8th of September 2010 in Berlin

Integrated KBBE Concepts – Germany-2

31 31

• Approval of the first National Strategy on the Bioeconomy for Germany in the formate of a Framework Programme by the Federal Government on the 10th of November 2010 (2.4 Bill.€ for 6 years)

• Foundation of the Bioeconomy Science Center (BioSC) in North-Rhine Westphalia in autumn 2010 which integrates all relevant scientific disciplines for a sustainable supply of biomass and bio-based products and processes within the Bioeconomy

• Establishment of a new Science Campus „Plant- based Bioeconomy“ in the German state Saxony-Anhalt, Halle, jointly established by the university of Halle-Wittenberg and Leibniz Association in March 2011

Integrated KBBE Concepts – Germany-3

32 32

• Study about the potential of a region, Land NRW, for the Bioeconomy in 2011.

• Awarding 40. Mio. € for the establishment of biomass- oriented cluster

„Bioeconomy Saxonia-Anhalt and Saxony“

as one of the 5 winners in the recent top cluster competition in Germany in January 2012

• Finalisation a roadmap biorefining for Germany jointly by industry, academia and policy in June 2012

Integrated KBBE Concepts – Germany-4

33 33

Main Elements of the first

German National Strategy Bioeconomy

from November 2011

34

Aims of the national strategy are:

• Securing global food security

• Sustainable increasing of agricultural production

• Producing healthy and safe food

• Industrial use of renewable resources

• Expanding and extending energy sources on

the basis of biomass

The vision

by: BMBF, March 2011

35

• a call on “Innovation Initiative Industrial

Biotechnology” (published in June 2011)

• a call on “Securing global Food” (published in July

2011, with strong emphasis on cooperation with Africa)

• a call on “Innovative Plant Breeding in cultivation

systems” (fall 2011)

• Roadmap for Biorefining in Germany (spring 2012)

• a call on “Bioeconomy international” (fall 2012)

Actions German Ministry until 2012

36

Innovation initiative industrial biotechnology

• “Biologise” industry

• Strategic alliances under the coordination of company

• Substantial financial support from industry

• Follow-up for BioIndustrie2021 and GenoMik

• Both R+D projects and support actions

• Up to 100 Mio. € over 5-10 years

Start: June 2011

by: BMBF, March 2011

Some details on selected examples

“Zero Carbon Footprint”

coordination: RWE Power AG

biotechnological utilization of high-carbon

waste-flows like sewage or flue gas from

coal-fired power stations

“FuPol”

coordination: evocatal GmbH

production of concrete plasticizers on

base of renewable raw matrials, novel

functionalization of polymer fibres,

development of cleaning enzymes for

polymer fibres

“NatLifE”

coordination: B.R.A.I.N. AG

ingredients for food and cosmetics from

natural sources

Innovation initiative industrial biotechnology

Chemical-Biotechnological Process Centre (CBP) in Leuna

• Concept for the efficient and waste-free use of

biomass for the chemical industry

• Opening up new avenues for climate protection

and resource efficiency

• Overall 50 Mio. €

BMBF, BMELV and BMU, Saxony-Anhalt,

Fraunhofer Society (scientifc lead) plus more

than 20 partners from industry

• Start-up of the first facilities – October 2nd, 2012

NFSB 2030 – CBP Leuna

Source: InfraLeuna GmbH

Duration: 5 years (2012-2017)

Cofinancing of R&D projects

• BMBF: 40 Mio. €

• Industry Partners invest equal amount

NFSB 2030 – BioEconomy Cluster

bioeconomy.de

Integration of bioeconomic relevant

Industries

• Chemical industry

• Paper and pulp industry

• Energy sector

• Industrial machine and plant construction

• Inter-sectoral innovation and value creation

chain

NFSB 2030 – BioEconomy Cluster

bioeconomy.de

bioeconomy.de

Vision and strategy

• Sustainable maximisation of value creation

for the non-food biomass WOOD

• Combined production and cascade

utilisation for the production of chemicals,

new materials and supplies as well as

energy

• Acceleration of innovation through

integrated, spatially and temporally

synchronised scaling of processes and

facilities from bench to pilot and demo scale

NFSB 2030 – BioEconomy Cluster

© Fraunhofer CBP

42

Strategic approach of the BioEconomy Cluster

Biobased

Products

• Intermediaries

• Special chemicals

• Biopolymeres

• Biocompounds

• WPCs

• Drop-in fuels

Dis-

integration

utilizing

several

alternative

technologies

Non-food

Biomasse

Cascading utilization C

ou

ple

d p

rod

ucti

on

s

Maximize

value

creation

1.

Accelerate

Innovation

2. R&D

pilot-scale

Development

demonstration

scale

Research

Lab scale Markets

Industrial

production

g kg t kt - Mt

Innovative wood

based products Material value chain

Olefine-Chemicals

Aromatic-Chemicals

Integration in den vorhandenen

Raffinerie- und Chemieverbund

BioEnergy

43

Topic areas of the cluster

TG 2: production of base

chemiclas from non-food

biomass

TG 3: Polymers,

materials und products

from biomass

TG 1: production and material utilization of non-food biomass (wood

production, -logistics and -manufacturing; innovative timber

construction)

TG 4: Energetic utilization and optimization in the overall context

of the cascading value chain

Flows:

Ethylene

Hydrogen

Aromats

....

TG 5:

Management

of the

BioEconomy

Residue

streams

Para

mete

rs,

meth

ods,

optim

ization

Residue

streams

Energy Energy

Material

flows: Wood, Residues

Flows: e.g. Biophenole foams

wood fibre

Energetic optimization of

processes

TG 6:

Education

for the

BioEconomy

Source: Cluster BioEconomy

Assessment of technological, economical and ecological aspects of different

biorefinery concepts

• May 2012: Publication of a generic, integrated roadmap for the period up to

2030

• Joint initiative of the German Federal Government (BMBF and BMELV, as

well as BMU und BMWi) in consultation with more than 30 leading experts

from science and industry

• Analysis of resource efficiency

• Biorefinery definition

• Classification

• Assessment of the status quo

• Identification of exemplary initiatives

• SWOT analysis

• Determination of the need of action

NFSB 2030 – Roadmap Biorefinery

45

Competence Center for Bioeconomy Research

46

54 Core groups

> 1200 Employees

Joint Technology Platforms

~40 Mio. € Third party funding

Competence Center for Bioeconomy Research

The Bioeconomy in North Rhine-Westphalia –

A best practice case

KBBE-Study

Creating a roadmap for implementing a knowledge-based bio-economy for

North Rhine-Westphalia

Defining priority areas to be emphasised for potential investments

Scanning relevant KBBE data and information on an EU and national level

Mapping and quantification of NRW scientific and industry landscapes with

respect to KBBE potentials

Demonstrating the way forward for implementation to decision-makers

1

2

3

4

48

The Ministry of Innovation, Science and Research of NRW mandated

Capgemini an in-depth analysis on the potentials of KBBE for this

German state

KBBE relevant industries

Identification of most relevant industries in NRW in

terms of

Economic power in NRW

KBBE capability

Innovation performance

Market attractiveness

Biomedicine

Chemical industry

Utility industry

Paper industry

Textile industry

Automotive sectors

Food & feed industry

Priority areas for establishing

a bio-economy in NRW

Integrated biorefining

Biopolymers

Diagnostics

Biopharmaceuticals

Biofunctional materials and

surfaces

49

www.wissenschaft.nrw.de

Interdisciplinicary Round Table Meetings (2011 / 2012) Focus

Energy

Chemistry / Pharma

Agriculture

Medicine / Medical engineering

Top-Topics:

Biorefinery

Biopolymers / Biofunctional materials

and surfaces

Biopharmaceuticals / Diagnostics /

Medical engineering

Public-private dialogue process

Kick-off, follow up- and final meetings making use of existing relevant clusters (BIO.NRW, chemistry, energy,..) in close cooperation with ministries under the overall coordination of the Ministry of Innovation, Science and Research:

13 Meetings with about 300 participants in the fields of energy, biotechnology, medtech, steel, chemistry sectors, agriculture, etc.

www.wissenschaft.nrw.de

First results – Elaboration of a position paper

Stakeholders appreciate the public dialogue and requested continuation and implementation of bioeconomy in NRW:

o Stakeholder confirmed topics and issues which were identified

o NRW should support and foster stakeholders involvement and activities.

o NRW should coherently insert bioeconomy in central political strategies and instruments (e.g. ecologial economy strategy, biodiversity, sustainable industry…) and should interact coherently with federal and EU-wide strategies.

o Cross-cutting issues (education, ethical / legal / social issues, sustainability, biodiversity…) are of high relevance should be treated accordingly

o Strategic international cooperation should be supported with particular attention to regional cooperation

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52

Summarizing the challenges and responses to the built-up of the bioeconomy in a nation or region – The German case

The challenges:

Huge complexities, multidisciplinarity and necessity to

integrate streams of new knowledge

Understanding, identification, built-up and operation of

new value chains, for example from fork to farm, from gut

to gate, from feed to fuel, etc.

Coping with a high number of unusual stakeholders along

the value chains

Coping with a high numbers of conflicting issues

53

Summarizing the challenges and responses to the built-up of the bioeconomy in a nation or region – The German case

The responses:

Elaboration of a comprehensive federal strategy,

accompanied by regional activities

Firm political will to transform towards a biobased

economy

Dedicated financial measures like calls in R&D

Comprehensive joint efforts for covering the totality of

value chains

54

Summarizing the challenges and responses to the built-up of the bioeconomy in a nation or region – The German case

The responses:

Full use of existing or new clusters and networks

Joint efforts for elaborating also a strategy for biorefining

Last but not least:

Dedicated, integrated research structures like,

Bioeconomy Science Center Aachen-Bonn-Düsseldorf-

Jülich (BioSC) , Fraunhofer Centre CBP and dedicated

Bioeconomy Cluster Leuna

Thank you very much

for your attention