1. PPF.1 May 2009 Weathering the Storm / Laying the Groundwork for the Future: The Bioindustrial Innovation Centre Monday May 11, 2009 Roundtable on the Future of the Bio-Based Economy in Canada Public Policy Forum, National Arts Centre, Ottawa Joel Adams, Executive Director The Bioindustrial Innovation Centre & The University of Western Ontario Research Park (London | Sarnia-Lambton)

2. May 2009PPF.2 Overview Background on the University of Western Research Park and economic model The regional challenges and opportunities for building an industrial “hybrid” bio-economy cluster in Canada (esp. Southwestern Ontario) The Bioindustrial Innovation Centre Results to date and future opportunities Conclusions The Bioindustrial Innovation Centre

3. May 2009PPF.3 What is a Research Park? Communities of Innovation: 1.Master planned property and buildings 2.Formal relationships with a University* 3.Supports research & education (Projects) 4.Supports technology transfer (Spin-offs) 5.Supports regional economic development (Growth) Source: Association of University Research Parks *What is a University? “…a series of individual faculty entrepreneurs held together by a common grievance over parking.” – Dr. Clark Kerr, famed UC President The Bioindustrial Innovation Centre

4. May 2009PPF.4 Research Parks – Economic Engines Research Parks support commercialization and technology cluster development and contribute over $31 billion to the North American economy (Source: AURP) The International Association of Science Parks (IASP) has 350+ members –2009 IASP Conference taking place in NC There are 27 Research Parks in Canada –2009 AURP Conference taking place in Vancouver The Bioindustrial Innovation Centre

5. May 2009PPF.5 Sarnia-Lambton Campus (2003) The University of Western Ontario Research Park in London and Sarnia-Lambton Detroit, Michigan Buffalo, New York London Campus (1989) Windsor Lake Erie Lake Huron Lake Ontario Toronto, Ontario Canada United States of America The Bioindustrial Innovation Centre

6. May 2009PPF.6 One of Canada’s Leading Research Parks In Ontario, Canada Tenants: 60+ Workforce: 2 200 Turnover: $10 million / Year Economic Impact: >$200 million Real Estate: $100+ million London Campus (1989) 20 hectares (50 acres) 30 000 sq m buildings Sarnia-Lambton Campus (2003) 30 hectares (80 acres) 30 000 sq m buildings Bioindustrial Innovation Centre $50 million national centre for bio-fuels and bio-products The Bioindustrial Innovation Centre

7. May 2009PPF.7 Our Research Park’s Strategic Goals Developed in consultation with over 300 industry, academic, and government stakeholders: 1.Accelerate growth and economic development –Facilitate development & commercialization of “last mile to market” technologies. 2.Advance innovation to transform products, processes, and companies –Networking resources around technologies with a high probability for commercialization. 3.Attract, retain, and inspire talent –Drive innovation and competitiveness by communicating and celebrating Canada’s innovation successes and advantages. 4.Activate innovation potential to develop entrepreneurial culture –Elevating the knowledge, skill base, and entrepreneurial culture of Canada * Also, we have Free Parking The Bioindustrial Innovation Centre

8. May 2009PPF.8 Toronto, Ontario London, Ontario (Population: 500 000) Buffalo, New York London Campus (1989) Lake Erie Windsor Lake Huron Lake Ontario Detroit, Michigan United States of America Canada The Bioindustrial Innovation Centre

9. May 2009PPF.9 Research Park: London Campus 1925 1991 1992 1997 2002 Gordon J. Mogenson Building 1989 The Bioindustrial Innovation Centre

10. May 2009PPF.10 Location: University of Western Ontario University Hospital London Health Sciences Centre (<0.5 km away) Lawson Health Research Institute The Research Park Windermere Manor Mogenson Building National Research Council Stiller Centre Proposed Site Future Buildings Faculty of Engineering Chemical, Electrical, Mechnical, Civil, Biomedical, etc. (<2 km) Other St. Joseph’s Healthcare (<5 km) Agriculture Canada Labs (~10 km) London International Airport (~10 km) Schulich School of Medicine and Dentistry Robarts Research Institute CIHR-III Clinical Trials Faculty of Science Biology, Biochemistry, Chemistry, and Physics Surface Science Western Nanofabrication Lab Biotron Facility Animal Facilities Environmental Sciences SHARCNET The Bioindustrial Innovation Centre

11. May 2009PPF.11 20 Hectares (London Campus) The Bioindustrial Innovation Centre

12. May 2009PPF.12 Over 50 tenants The Bioindustrial Innovation Centre

13. May 2009PPF.13 50 former tenants and spin-offs Enhanced Vision Systems –Pre-Clinical Imaging spin-off from acquired by GE Healthcare EK3 Technologies Inc. –Started by two Engineering students, runs the world’s largest private digital media network Start-up companies have financed over $150 million Stiller Centre is the largest Biotechnology Incubator in Ontario and Eastern Canada Current Start-ups include Viron Therapeutics, and Curocom HIV- AIDS Vaccine Developer –$25m invested by Curo Group, Korea The Bioindustrial Innovation Centre

14. May 2009PPF.14 New Industrial Research Building The Bioindustrial Innovation Centre

15. May 2009PPF.15 New 6000 sq m Building $20 million, 6000 sq m high performance labs & office “Green building” targeting LEED Silver certification Selected for Global Polymer Research Centre for LANXESS Surface Science Western (contract research labs) Multi-tenant space with central amenities (food services, conferences, etc.) Completion: Fall 2009 The Bioindustrial Innovation Centre

16. May 2009PPF.16 Future (London Campus) The Bioindustrial Innovation Centre

17. May 2009PPF.17 Sarnia-Lambton Campus (2003) Sarnia-Lambton (Population: 130 000) Detroit, Michigan Buffalo, New York London Campus (1989) Windsor Lake Erie Lake Huron Lake Ontario Toronto, Ontario Canada United States of America The Bioindustrial Innovation Centre

18. May 2009PPF.18 Sarnia-Lambton Campus 1970’s-1990’s: Dow Chemical Canada Headquarters –Dow Automotive / Global Polyurethane Research Centre 2003: Bought by City of Sarnia and County of Lambton –Second Campus of Research Park The Bioindustrial Innovation Centre

19. May 2009PPF.19 30 Hectares (Sarnia-Lambton) The Bioindustrial Innovation Centre

20. May 2009PPF.20 Future (Sarnia-Lambton) The Bioindustrial Innovation Centre

21. May 2009PPF.21 Our real goal is economic transformation… Our goal is to attract $1 billion in “green” bio-refining investments The Bioindustrial Innovation Centre

22. May 2009PPF.22 Sarnia-Lambton: Petro-Chemicals Basell Canada Inc. BP Canada Energy Company Canada Commercial Services Cabot Canada Ltd. Clean Harbours Canada Inc. Dow Chemical Canada Inc. Ethyl Canada Inc. Fibrex Insulations Inc. H.C. Starck Imperial Oil Limited Invista (Canada) Company LANXESS Inc. NOVA Chemicals Ltd. Ontario Power Generation, Lambton Generating Station Royal Polymers Ltd. Shell Canada Products Ltd. Suncor Energy Products Inc. Sunoco Inc. Terra Nitrogen TransAlta Energy Corporation Waste Management of Canada Largest Petro-Chemical Cluster in Canada Birthplace of Canada’s Oil Industry (1858) Traditional fossil fuel industry facing challenges Some of the above plants are closing/closed The Bioindustrial Innovation Centre

23. May 2009PPF.23 Sarnia-Lambton: Agriculture Southwestern Ontario is one of Canada’s richest regions for biomass: –Soybeans –Corn/Maize –Wheat –Large greenhouses –Energy crops –200 other crops –Waste/residues –Access to forestry The Bioindustrial Innovation Centre

24. May 2009PPF.24 40+ Universities/Colleges in Ontario The Bioindustrial Innovation Centre

25. May 2009PPF.25 Nova Imperial Oil Lanxess Dupont Chemical Industry PetroCanada Invista Commercial Alcohols Suncor CASCO Jungbunzlauer Rohm & Haas Iogen Invista Royal Polymers Shell Terra Ethyl BP 52,000 employees $18.2 billion in revenues $10.2 billion in exports. 844 plants $2 billion $6 billion Auto & Parts Industry GM Ford Chrysler Many Parts Cos Toyota Honda Sarnia-Lambton The Bioindustrial Innovation Centre

26. May 2009PPF.26 Building on our Strengths Ontario has strength in traditional Value-Chains: 1.Automotive and diversified manufacturing 2.Chemicals, materials, energy 3.Agriculture, forestry, access to fossil fuels, other resources 4.Significant Research & Development 1 + 2 + 3 + 4 = Potential “Hybrid” Fossil Fuel/Bio-Economy Cluster The Bioindustrial Innovation Centre

27. May 2009PPF.27 Barriers to Commercialization Lots of innovation and industrial capacity but… –Need bio-based research and commercialization facilities in proximity to large industry receptors –Need pilot plant facilities with commercial scale feedstock handling capability relevant to industry –Need an approach that allows a mix of open innovation and IP protection for industrial projects –Need for a common focal point to turn research into business ideas, economic value –Need flexible and affordable facilities The Bioindustrial Innovation Centre

28. May 2009PPF.28 The Bioindustrial Innovation Centre Located at the Sarnia-Lambton Campus of the Research Park The Bioindustrial Innovation Centre

29. May 2009PPF.29 Former Dow Chemical Laboratories Labs = Testing Offices = Ideas Pilot Plant = Commercialization The Bioindustrial Innovation Centre

30. May 2009PPF.30 Facilities 6000 sq m RENOVATED Labs and Pilot Plant facility –Former Dow Automotive Laboratories –12 double labs for bench support and analysis –6-12 high bay modules for large scale-up projects –Shared biomass processing and testing equipment –FACILITIES AVAILABLE NOW! 7000 sq m NEW Office Building –Worley Parsons Engineering –Designed as LEED Gold “green building” (Leadership in Energy and Environmental Design) –Supporting up to 600 jobs –Completion in Spring 2010 The Bioindustrial Innovation Centre

31. May 2009PPF.31 Strong Technology “Pipeline” Leader in Canada’s Agricultural Biorefinery Innovation Network Working with over 80 researchers from 24 institutions Canada’s leading experts and companies in bio-refining But we will support innovation and IP from Anywhere in the World! The Bioindustrial Innovation Centre

32. May 2009PPF.32 Many Industry/Government Partners –Canadian Chemical Producers Association –Industry Canada, Ontario MEDT –Individual companies including DuPont, NOVA, Imperial Oil, LANXESS, Suncor, SME’s, start-ups… –Universities and colleges including Western, Guelph, Windsor, Queens, Lambton, Mohawk –Ontario Chemistry Value Chain Initiative –Forestry Industry: FPInnovations/PAPRICAN –The Ontario BioAuto Council –Sarnia-Lambton Economic Partnership –Sarnia-Lambton Environmental Association –The Bluewater Sustainability Initiative –The Research Park (Sarnia-Lambton Campus) –Southwest Ontario Bioproducts Innovation Network (SOBIN) –Ontario Agri-Food Technologies (OAFT) –Innovation Initiatives Ontario North (IION) –And many more... The Bioindustrial Innovation Centre

33. May 2009PPF.33 Sustainable Chemistry Alliance New Canadian industry-led organization based at the Sarnia-Lambton Campus Board members from CCPA, OAFT, FPInnovations, LANXESS, WorleyParsons, former exec’s from DuPont, NOVA, Imperial Oil, Dow Founding President & CEO, Murray McLaughlin, PhD SCA will manage, invest, and grow the $5 million “Chemistry Innovation Fund” for the BIC –Plans to grow to $30+ million The Bioindustrial Innovation Centre

34. May 2009PPF.34 Funding $7 million community investment (2003) –Used to purchase land and buildings from Dow –City of Sarnia, County of Lambton $10 million from Province of Ontario (2007) –3 year grant from the Ministry of Research & Innovation $15 million from Government of Canada (2008) –Funds 50% of start-up operating costs –$5 million commercialization fund run by industry –Awarded in highly competitive peer review process $25 million commercially financed from operations –$5 million cash from operations –Up to $20 million in debt financing The Bioindustrial Innovation Centre

35. May 2009PPF.35 Objectives Position Canada and our region as the world leader in integrating renewable resources into existing value chains Provide unique, flexible scale-up facilities to turn research into commercial production Support over 150 commercialization projects, with 1-2 spin-offs and/or new product lines established per year Produce and retain highly qualified personnel in industrial biotechnology and business Maintain operationally self-sufficient model of the Research Park and achieve centre self-sufficiency within 5 years Our ultimate goal is to attract over $1 Billion in new investments to Canada by 2014 The Bioindustrial Innovation Centre

36. May 2009PPF.36 Where do you put $1 Billion? 5km to Research Park The Bioindustrial Innovation Centre

37. May 2009PPF.37 Receptor Sites LANXESS Chemical Park –Pipeline to Alberta's oil & natural gas feedstocks –Pipeline connected with local refineries for easy transport of feedstocks, products & industrial gasses –Long term, low cost steam energy contracts available –Multi-modal site: two railways, trans ocean shipping, and international truck crossing point into the US –Can provide HR, Payroll, Medical, Security Services, tolling contracts for plant operators and maintenance –Wastewater treatment capacity of 24 000 m3/day –Can accept pipeline or trucked wastes –MOE industrial wastewater approved facility Additional massive serviced sites include the former Dow Chemical plant site recently bought by TransAlta The Bioindustrial Innovation Centre

38. May 2009PPF.38 Progress to Date Over 300 projects supported by the Research Park –First new tenants have moved into the Bioindustrial Innovation Centre Region has attracted the 3 largest bio-refineries in Canada –Suncor (200 million litres, growing to 400 million litres) –GreenField Ethanol (200 million litres, expanding) –Northern Ethanol (200 million litres proposed) Other sustainable investments: –Terra Industries building 70 hectare Greenhouse to capture waste CO2 –Canada’s Largest Solar Farm in Canada (under construction) Community Hydrogen Fuel Cell project and Bio-based Fuel Cell company building 50kW generator at the Research Park Working to attract additional large bio-refining investments –Bio-Diesel, Bio-Butanol, Pyrolysis, Bio-gas, Bio-Polymers, Bio-Polyols, etc. –Sites include LANXESS Chemical Park, and former Dow Chemical site The Bioindustrial Innovation Centre

39. May 2009PPF.39 Conclusions Proven Models can be Powerful Tools –Research Parks, Incubators examples of best practices that accelerate commercialization/clusters Opportunity Abounds Despite Global Economy –Bio-Economy should be top a priority for Canada –Use Strategic Approach to Prioritize –Take value chain impact (opp/threat) into account Avoid “Analysis Paralysis”! –Look to real, ready projects & “skin in the game” –Enough roadmaps – time for action (today’s Globe & Mail) Can’t be too timid to make “mistakes” –“Colliding” sectors/science means results will be dynamic –Opportunity cost of the status quo is too high

40. PPF.40 May 2009 Thank You! Joel Adams Executive Director, the Bioindustrial Innovation Centre Canada’s national centre for industrial biotechnology commercialization Executive Director, the University of Western Ontario Research Park (London | Sarnia-Lambton) Direct: +1 519-858-5150 jadams@uwo.ca