Circular Economy in Industrial Clusters Terje Stabæk October 9, 2018

Smart Specialisation Strategy for Nordland Focusing on the international competitive sectors, i.e. Process Industry, Seafood and Tourism, as the driving forces in the economy Long term sustainability and competitiveness are underlying preconditions To expand the value chains around the exporting industries and increased use of R&D is vital for business development in the region Limitations in access to natural resources and necessary reductions of industrial emissions requires focus on circular economy within the process industry

Strategic Improvements of the Regional Innovation System – Strenghtening Transactions between Businesses within the County

Mapping of Transactions within the Industry

Circular Economy – Potential and Economic Implications The Green Shift requires extended use of metals and minerals Global use of materials will increase from 85 to 186 billions by 2050. More sustainable use of materials and energy would add an extra for $2 trillion to the global economy by 2050. UNEP, 2016 This illustrates clearly why focus on recycling and optimal exploitation of resources will be a necessity. The transition to a circular economy is not only necessary from a sustainability perspective, it might also be very profitable. Our competitiveness vil be dependent of our ability to use the resources optimally. Future competitiveness is dependent of the ability to find solutions that combine environmental sustainability and economy. We already observe that green solutions are attractive because that gives optimal resource exploitation and brings us ahead of a trend where industry is facing constantly stricter environmental emission restrictions to meet the recommandations in the Paris Agreements. In the value chain around those sectors that restructure and streamline production, new business models and opportunities will arise. Profitabel and green ones. In this picture we can include the oil&gas industry and the possibilities for cross sectoral cooperation.

Policies that push an Industrial Circular Development EU Closing the loop – action plan for the Circular Economy H2020 – Industry 2020 in the circular economy Norway Meld. St. 27 (2016-2017): A greener, smarter and more innovative industry Norwegian Government’s strategy for green competitiveness Nordland Nordland County Council: Industry strategy Nordland Innovation Strategy Nordland The combination of minerals, renewable energy, a highly skilled work force combined with a well developed industry infrastructure is a competitive advantage with great potential. Nordland County Council has ambitious political goals regarding our vast natural resources. Our aim to secure synergies between business development matters as job and value creation and good climate solutions. The Council has decided on a industry strategy that includes these goals to make our industry competitive in a global market as well as create opportunities for new industry establishments.

Mo Industrial Park – Our Test Arena 108 companies 4 of the largest export companies in Nordland; Celsa Nordic AS, Elkem Rana AS, Ferroglobe Manganese AS, Rana Gruber 2400 employees 0,8 bill Euros in turnover 0,6 bill Euros in exports 1,7 TWh in energy use – 0,4 TWh is recycled The industry of Nordland has worked with good climate solutions for decades. This gives a good plattform to further develop the production towards a low emission society. Recycling of side streams and reducing emissions has also come a long way. Some projects that have been lifted by the industry and awarded public funding are: Mo Industrial Park has a yearly consumption of energy 1,7 TWh (3 smelters and 1 mining company), of which approx. 400 GWh energy is recovered today. Future goal is to recover 625 GWh/year. Enova has been an important source for funding energy recovery here. Mo Industrial Park also has advanced systems for exchange of energy, water and side streams among the companies in the park. The goal is working towards a circular economy loop. Elkem Salten (A Bluestar Company) has just been awarded the third largest public funding from Enova, up to 350 MNOK, for their billion investment in an energy recovery plant that will make their production 30% more energy efficient. Arctic Cluster Team is funded by the Norwegian Innovation Cluster Programme. This cluster is a cooperation between the process industry sector in Nordland to promote new technical solutions that will reduce the carbon footprint and strengthen the competitiveness.

Energy Consumption and Recycling

Sidestreams Elkem Rana Ferroglobe Celsa Rana Mining Sludge 4000 ton slag 230 000 ton Dust 10 000 ton Sand 3 000 000 ton Other 20 000 ton Sale Landfill Sidestreams

Reduction of Emissions Air Emissions Elkem Rana Ferroglobe Celsa SMA Minerals Zinc Lead Manganese Cadmium Nox CO2 560 000 ton SO2 Chromium Dust Mercury

Concept for Business Development – Focus for R&D Environmental projects Digitalisation Marine value chains Clusters – industrial symbiosis Energy Emissions Cirkular economy MIP Bærekraft er derfor også en industriell innovasjonsarena. Innovasjon er nødvendig for å bruke energi mer effektivt og for å gjenvinne mer energi. Innovasjon er nøkkelen til å redusere utslipp Det blir ingen nye produkter fra avfall uten innovasjon. Innovasjon som finner sted i dag - og som kommer i fremtiden - skaper helt nye verdikjeder og eksportinntekter - også i sjømatnæringen og i digitalindustrien. CMS: max 8’30 hit) Materials

MOFI Mobilisation For R&D Driven Innovation R&D Driven Innovation A measure for inspiring businesses to invest in R&D Set up by Nordland County Council in close cooperation with the industry Specially linked to the industrial cluster in Mo/Helgeland region Brokering service Part of the scheme is to develop the market for R&D linked to the industrial park Nord University and SINTEF established in the area MOFI Mobilisation For R&D Driven Innovation

Arctic Cluster Team - ACT LABS AND SUPPLIERS FROM THE RESOURCE//WSTE VALUE CHAIN UNIVERSITIES, SCHOOLS INFRASTRUCTURE AND LOGISTICS CLOUD SERVICES; DATA CENTER AND FINANCE PROCESS INDUSTRY ENTREPRENEURS, TECHNOLOGY SUPPLIERS Arctic Cluster Team - ACT ©Kunnskapsparken Helgeland