1. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant Clusters in Southern Denmark and Bio Energy

2. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant Agenda 1.The Burning Platform (The Need for Long term Change) 2.The Cluster Organisation (The Strategy and the enabling organisation) –the initial focus –the current focus 3.The Bio Energy Cluster Focus -The Frame Conditions -The Market -The Project 4. The Conclusion 2

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4. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant Southern Jutland has been projected to experience the largest drop in population compared to the other large regions in Denmark over the next 35 years Implied percentage change of current population in 2040 (Base = 2004) Population Projection by region 2005-2040 Source: StatBank Denmark All Denmark -2.24% -3.08% 8.07% -2.50% 5.29% -5.50% -8.45% -1.86% -10.09% -1.51% 4.38% 5.41% 1.99% 4

5. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant Sønderjylland’s Regional Economy Furniture Transportation and Logistics = 3,000-4,999 = 2,000-2,999 = 5,000+ Electric Motors and Other Electrical Equip. (530%, 11.3%) Automotive Sønderjylland Share of Danish National Employment (4.8%) = 0-1,999 Metal Manufacturing Processed Food Forest Products Power Generation and Transmission Production Technology Industrial Mechanical Components (2%, 27.5%) Percent Share of Danish National Cluster Employment in 2001 Construction Materials Fishing and Fishing Products Agricultural Products Wholesale Services Hospitality and Tourism Education and Knowledge Creation Heavy Construction Services Publishing and Printing Financial Services Buildings, Fixtures, Equip. and Services Business Services Communications Equipment Entertainment Footwear (21%, 60.3%) Information Technology Life Sciences Plastics Textiles Apparel (-63%, 1.55%) Medical Devices Analytical Instruments (84%, 4%) Chemical Products (96%, 3.5%) 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% -50%-25%0%25%50% Note: (x-axis, y-axis); Tobacco; Jewelry and Precious Metals; Sporting, Recreational and Children’s Goods, Leather Products, Aerospace Vehicles and Defense, Motor Driven Products; and, Oil and Gas clusters have negligible employment and thus are not shown. Source: Monitor Group analysis; Statistics Denmark (Danmarks Statistic) Percentage Change of Share, 1992–2001 5

6. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant Agenda 1.The Burning Platform (The Need for Long term Change) 2.The Cluster Organisation (The Strategy and the enabling organisation) –the initial focus –the current focus 3.The Bio Energy Cluster Focus -The Frame Conditions -The Market -The Project 4. The Conclusion 6

7. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant The Clusters are organised under UdviklingsRåd Sønderjylland in a ”Public Private Partnership” Høj- beskæftigelsesklynger Klynger Regionale rammebetingelser Klynger der også arbejder uden for Sønderjylland Turisme Forretnings- service Transport & logistik Mekatronik Ramme- betingelser Uddannelse Landbrug & fødevarer Iværksætteri UdviklingsRåd Sønderjylland Forretningsudvalg Udviklingschef Køle Medical devices Alu-cluster Invest in Denmark VækstforaTRIN Visit DenmarkKIEL Etablerede samarbejdspartnere uden for URS 7

8. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant Status of work groups CompletedIn ProgressPending OrganizationActivationImplementationIntegration Promulgation / Accountability 15 Oct 05Feb 06May 06Jun 06 onwards Launch Initiative Convene possible Working Groups Elect Working Group Members and Leaders Develop Strategic Agenda Create Work-plans Convene 1 st Executive Committee meeting Initiation of Activities Liaison with other Working Groups Report to URS every 2-3 months Prepare Groups’ output Integrate Groups’ output Write and vet report Design and publish strategy Liaison and buy-in with Vaekstfora, Kommune and Regional Government Monitor accountability and delivery Education Entrepreneurship Frame Conditions Tourism Business Services Logistics Mechatronics Education Entrepreneurship Frame Conditions Tourism Business Services Logistics Mechatronics Education Entrepreneurship Frame Conditions Tourism Business Services Logistics Mechatronics Recruit Exec Dir & Project Managers Board Constituted Education Entrepreneurship Frame Conditions Tourism Business Services Logistics Mechatronics Executive Committee Convened Education Entrepreneurship Frame Conditions Tourism Business Services Logistics Mechatronics Report Completed Agriculture 8

9. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant Growth initiatives will be coordinated through growth fora and local development councils as part of the new regional structure South Denmark growth forum Work out a regional strategy for industry development Monitor the development of regional growth conditions, recommendation of joint financing Development Council Sønderjylland tasks Prepare local growth strategy based on ”local” strengths and weaknesses Monitor, develop and prioritize local growth initiatives Denmark’s growth council Denmark’s growth council tasks Advise the minister for finance and industry on working out the national growth policy Implement trade development activities, e.g. joint financing of projects as recommended by regional growth fora Development Council Sønderjylland (URS*) Fixed by law Private and public partnership Others … * URS = UdviklingsRåd Sønderjylland 9

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11. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant BioEnergy 11

12. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant Agenda 1.The Burning Platform (The Need for Long term Change) 2.The Cluster Organisation (The Strategy and the enabling organisation) –the initial focus –the current focus 3.The Bio Energy Cluster Focus -The Frame Conditions -The Market -The Project 4. The Conclusion 12

13. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant Renewable Energy The common denominator for different kinds of Renewable energy is that they are CO2 neutral as They do not emission additional CO2 to the environment as opposed to Fossile energy resources 13

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18. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant BioEnergi Tønder A/S Sønderjysk Biogas 18

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21. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant Agenda 1.The Burning Platform (The Need for Long term Change) 2.The Cluster Organisation (The Strategy and the enabling organisation) –the initial focus –the current focus 3.The Bio Energy Cluster Focus -The Frame Conditions -The Market -The Project 4. The Conclusion 21

22. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant Lessons Learned:  Apply Change management Principles  Document “The Burning Platform”  Cluster Initiative Launched by Strong Sponsors  Change Agents, those who believes and burns for the idea creates Cluster Strategy  Supporting organisational set up to underpin the strategies is a must  Be flexible – the world is not behaving as is perceived from the outset 22

23. HANS HENRIK FISCHER Attorney at Law & Strategy Consultant Hans Henrik Fischer Attorney at Law & Strategy Consultant If you need further process insight and assistance then do not hesitate to call me at +45 21 45 59 63 23

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