Creating value chains to foster bio-based industries in Europe Nelo Emerencia Programming Milano, 050917

THE BIO-BASED INDUSTRIES CONSORTIUM

BIC’s mission and activities To build new bio-based value chains by developing new biorefining technologies, optimising feedstock use and creating a favourable business and policy climate to accelerate market acceptance of bio-based products Bio-based Industries Consortium (BIC) established in 2012 to Represent the private sector in the Public-Private Partnership BBI JU with the EC (public) Activities: Set up and update the BBI’s Strategic Innovation and Research Agenda (SIRA) Lead the development & writing of the Annual Work Plans with topics for the Calls for Proposals Mobilise stakeholders: industry (large and SME), research organisations, universities, regions and relevant stakeholders across Europe Assist members gaining better access to European financial instruments Create awareness. At regional level: MoU with ERRIN, Vanguard Initiative, Polish regions, …; partnership with 6 Model Demonstrator Regions

Our members – per May 2017 ■ 177 Full members (direct and indirect) 34 Large industries 143 SMEs (of which 112 via 17 SME clusters) Several industrial sectors covered Agriculture & Agri-food Forestry and Pulp & Paper Aquatic and Marine Chemicals and materials Technology providers Energy … ■ 165 Associate members Universities, RTOs, European associations & organisations, Technology Platforms (ETPs), public institutions, regional organisations, private banks, …

Updated SIRA Sets out the main technological and innovation challenges to developing sustainable and competitive bio-based industries in Europe. It reflects BIC’s vision. The SIRA identifies: research; demonstration and deployment activities Version 1 (2013)

Updated SIRA Version 1 (2013) Version 2 (2017)

Drivers for SIRA adjustment Widen the scope for participation in the BBI programme More/other industrial sectors: manufacturing, technology providers Broader geographical spread: extend into CEE; link with regions More focus on demand/market: link with brand owners and market actors Incorporate the state-of-play of the world around us and reap the benefits thereof Developments in feedstock cultivation, availability, preparation, logistics, etc. Developments in technology: in pre-treatment, conversion and downstream; internet of things Reflect the political context Developments in policies and initiatives like bioeconomy strategy, circular economy package Better align the bio-based industry’s ambitions with societal expectations/needs part of solutions to combat climate change, increase sustainability, add to wellness & welfare These are the arguments to invoke the clause in the SIRA: to incorporate developments that are relevant to BIC/BBI Technological, political and societal At the same time, if we implement the drivers adequately, they will allow us to use the new SIRA for the same reasons: to recruit new BIC members in more/other sectors; to invite more/other new/innovative technologies to create new bio-based value chains; to communicate with policy makers and show how BIC/BBI contributes to policies/regulations; to use in communication/interaction with societal organisations to show that BBI is part of the solutions to meet societal needs.

Key SIRA adjustments ‘Multi-value-chain’ approach, pursuing crossover between ‘traditional’ value chains, providing more opportunities to convert the feedstock into chemicals, materials, food ingredients and feed, and advanced transport fuels. At the heart of the SIRA are the composing pillars of value chains: foster supply of sustainable biomass feedstock to feed both existing and new value chains; optimise efficient processing for integrated biorefineries through research, development and innovation (R&D&I); develop innovative bio-based products for identified market applications; and create and accelerate the market-uptake of bio-based products and applications. These pillars form the four strategic orientations of the bio-based industry in Europe. The key change versus the original SIRA is the introduction of market pull to aim the feedstock push in the original SIRA. By aiming at the market applications, solutions could be offered by several value chains, utilising different feedstock, processing steps and value chain actors. This ‘multi-value-chain’ approach will truly motivate actors, who have been working in their ‘traditional’ value chains, with the partners they have worked with for a long period, to ’cross over’ the boundaries of the ‘traditional’ value chains and seek new, ‘untraditional’ partnerships. These crossovers are needed to establish efficient and sustainable bio-based industries. Therefore, the new SIRA does not centre around a ‘fixed number’ of value chains (the ‘traditional’ ones), but creates room for innovation in the four segments of a value chain, opening the door for any relevant feedstock, processing technology, product and market-uptake: the four ‘strategic orientations’ for the bio-based industries. The new SIRA also includes a focus area of ‘system modelling’, seeking to model full value chains and lower the ’trial and error’ way of working to establish optimal value chains, from feedstock all the way to market application.

Bio-based value chains per the SIRA

Public-private partnership: Bio-based Industries Initiative (BBI)

The BBI JU Governance

A € 3,7 billion public-private partnership Call for Proposals (in cash and in kind) € 975 M Additional Activities € 1755 M + TOTAL € 3705 M (about 75% from BIC) € 975 M = Includes admin costs of the JU Implemented through annual work plans

Annual Work Plans follow SIRA structure The four strategic orientations are the key components of a value chain:

‘Actions’ in annual work plans Innovation challenge Societal challenge Integration challenge Research and Innovation Actions: TRL 4-5; 30.5% of budget Innovation Actions – Demonstration: TRL 6-7; 30.5% of budget Innovation Actions – Flagship: TRL 8; 35.5% of budget Coordination & Support Actions; 3.5% of budget

Impacts 3 years BBI JU 2017 call open funding / cost of projects

Impact of 3 years BBI DIRECT IMPACTS: 65 projects of which 20 DEMOs and 6 FLAGSHIPS (full scale biorefineries) A total of 729 participants from 30 countries for a total grant of € 418 million 36,7% of beneficiaries are SMEs. Funding to SMEs: 29% Current leverage: more than €4 private investment for each €1 of public money Projects from 2014-2015 exceed many of the expected impacts projections for 2020 See details on https://bbi-europe.eu

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Impact of 3 years BBI - 2 INDIRECT IMPACT: Mobilisation of private investment in Europe keeping knowledge and innovation, and investments in innovative production processes in Europe. Attract companies from outside EU to invest in innovation in Europe! New value chains: e.g. food industry collaborating with the chemical industry, the forestry and pulp & paper sector collaborating with chemical and textile industry, etc. New industrial sectors are joining e.g. by creating value from waste and side streams (food processing sector, aquatic/marine sectors, bio-waste and CO2). As a result we also observe a wider geographical spread throughout Europe. Responding to environmental and societal challenges: initiatives such as the Circular Economy Package and COP21 are bringing more and new players to the game. Increased market focus: participation of brand owners is key as they help to develop new applications and create new markets. Their involvement also shortens time to market for innovative bio-based products. Involving the regions: BIC and BBI JU have strengthened their collaboration with the EU regions to exchange information and explore synergies and opportunities for joint financing, and deployment of new value chains. Contribution to the priorities of the Juncker Plan for Europe by stimulating investments and creating innovative growth & jobs, which will again stimulate innovation. BIC industry members have >4,5 billion EUR investments in the pipeline.

Why a JTI with the EC To ‘de-risk’ an emerging industry through: A clear framework that brings clarity for activities & investments Long term stability and predictability A joint approach, across sectors, across Member States Joint financial commitment and a jointly defined programme, that will unite parties that would otherwise find these activities too risky for an individual sector/company Leverage further investments Industry driven and therefore result and market-oriented

The BBI JU Vision Our vision is a competitive, innovative and sustainable Europe leading the transition towards a post-petroleum society while decoupling economic growth from resource depletion and negative environmental impacts.