Biobased Chemicals Market Innovation Opportunity

Biobased Chemicals – Markets,
Innovation & Opportunity
Adrian Higson
High Value Chemicals from Biomass
Royal Society of Chemistry Meeting
17th September 2013

Copyright © NNFCC 2012.
Company Vision
We view biobased technologies as key
components of the low carbon economy
delivering economic, social and environmental
benefits.
We believe the bioeconomy will create
sustainable business opportunities for feedstock
suppliers, technology and project developers,
manufacturers and investors.
A specialist ‘not for profit’ Bioeconomy consultancy
Company Mission
To provide clients with a holistic view of feedstock, technology, policy and market
development across the bioeconomy, enabling them to make informed business
decisions and develop sustainable business strategies.

Services
• Market analysis
• Feedstock logistics planning
• Sustainability strategy development
• Initial technology and economic
appraisal
• Project feasibility assessment
• Policy and regulatory support
• Network & Facilitation
Clients & Partners
• Multinationals & SMEs
• Public Organisations
• Government
• Research Institutes
• Universities
• R&D Collaborations
• Research Councils & TSB
• EU Projects
Celebrating 10 years of Bioeconomy development

EU Context
It includes agriculture, forestry, fisheries, food and pulp and paper production, as
well as parts of chemical, biotechnological and energy industries.
• is worth an estimated €2 trillion
• accounts for 22 million jobs
• 9% of total employment in the EU
Each euro invested in EU-funded bioeconomy research and innovation is
estimated to trigger €10 of value added in bioeconomy sectors by 2025.
EUROPEAN COMMISSION – PRESS RELEASE
Brussels, 13 February 2012
Commission proposes strategy for sustainable
bioeconomy in Europe

Biomass
provision
Biomass
trading
Biomass
refining
Fuel
production
Fuel blend &
retail
Chemical
production
Chemical
industry
Biomass power
& heat
Chemical using
industry
Retailers
Pharmaceutical
industry
Food
ingredients
Food
industry
Retailers
Food & Feed
industry
Feed
ingredients
Feed
industry

Feedstock Pricing – A new normal
Source: International Monetary Fund
Priceindex,2005=100
0
50
100
150
200
250
300
Agricultural Raw Materials
Food
Crude Oil (Petroleum)

50 shades of green - Every generation now comes with a degree
of environmental consciousness
• Baby boomers (born 1946-1964)
– Silent Spring 1962
– Air quality, water quality
• Generation X (Baby busters) (born 1964-1977)
– Union Carbide and Chernobyl disasters.
– Exxon Valdez oil spill.
• Generation Y (Millennials) (born 1980’s through1990’s)
– BP Oil Spill in the Gulf of Mexico
– An Inconvenient Truth and Hurricane Katrina
• Generation Z (today’s children)
– Recycling, solar panels, hybrid cars, energy saving light bulbs
Source: Jacquelyn Ottman: The new rules of Green Marketing

Business to Business
Business to Consumer
Green Premium? – Price vs value
Coca Cola Executive: “If Coca-Cola were to lose all of its
production-related assets in a disaster, the company would
survive. By contrast, if all consumers were to have a sudden
lapse of memory and forget everything related to Coca-Cola,
the company would go out of business.”

Biobased chemicals market trends
• Market growth through drop in replacements for
current petrochemicals.
• Shale gas development creates winners and losers in
the biobased chemical sector.
• Novel polymers finding a route to market through the
production of added value co-polymers.
• Emergence of stand alone turn key cellulosic sugar
technologies.

Ethylene Polyethylenes
Styrene
Monomer
Ethylene
Oxide/Glycol
EDC
Other
Polymers/Rubbers
Polyester
PVC
Alpha Olefins
PVA
Ethanol
60%
7%
14%
12%
7%
Ethylene value chain

Succinic Acid 1,4-Butanediol
Polybutylene
Terephthalate
Copolyester Ethers
Thermoplastic
Polyurethanes
SpandexFibres
Tetrahydrofuran
Solvent
Polytetramethylene
EtherGlycol
g-Butyrolactone
Fine & Speciality
Chemicals
N-Methyl -2-
Pyrrolidone
Fine &Speciality
Chemicals
2-Pyrrolidone
Fine &Speciality
Chemicals
N-Vinyl-2-
Pyrrolidone
Polyvinyl
Pyrrolidone
Deicers/Coolent
Plasticisers
Fuel Additives
Succinic acid value chain

Over 50 commodity
or platform
chemicals in
development or
commercialisation.
UK examples

CO2 capture
and use
By-products,
residues &
wastes
Biomass Crops & Forestry
Food crops
Feedstock choice is key to
supply chain acceptability.
However the biobased
products are differentiated
from biofuels & bioenergy.
e.g. scale, alternatives
WWF Biobased Panda

To maximise the transnational value of
algal pilots across NWE, by creating an
integrated Network
To identify the political, economic, social
and technological opportunities for
sustainable exploitation of algae within
NWE.
To combine information in an ICT-based
tool which can guide decisions, identify
gaps in knowledge and capability and
provide a roadmap for stakeholders.

EU Industrial Policy
A Stronger European Industry for
Growth and Economic Recovery
October 2012
Innovating for Sustainable Growth:
A Bioeconomy for Europe
February 2012
Bioeconomy funding - ~€4bn (double the funding available through PF7)
European Economic Strategy

Bio-based Industries PPP: The challenge, Overcoming the
innovation Valley of Death by bridging the gap from research to
the marketplace.
The EU contributes
€1 billion to the
research and
innovation program,
European industries
have committed to
another €2.8 billion
http://bridge2020.eu/

Process demonstration and scale up

• Bio Base NWE is a three-year project (2013-2015) by the
European Commission to support the development of the
bio-based economy in North West Europe (NWE ).
• The €6.2 million project will help entrepreneurs and
companies to facilitate innovation and business
development in bio-based technologies.
• The Bio Base NWE partnership includes organizations from
five different countries.

1. The network, representing leading bio-based economy experts, advises
entrepreneurs from across North West Europe on how to develop new ideas
into marketable products, from the first feasibility study or market analysis up
to funding and investment scenario’s.
2. Financial support to SME’s to perform proof-of concept studies and/or to
demonstrate innovative bio-based technologies at Bio Base Europe Pilot
Plant, an independent, state of the-art demonstration facility in Ghent,
Belgium.
3. Programs and tools for training and education to help tackle the shortage of
skilled professionals in North West Europe’s bio-based industries.
Scope

Innovation Coupons for SME’s
• Innovation coupons for SME’s are a central part of the Bio Base NEW project.
These € 10.000 innovation coupons provide SME’s with access to the facilities
of the Bio Base Europe Pilot Plant.
• This allows your business to assess the feasibility of taking an bio-based idea
or a technology into industrial production.
• The Bio Base Europe Pilot Plant provides testing and production facilities from
laboratory scale to multi-ton semi-industrial scales.
• Bio Base NWE provides not only technological know-how, but also cost-
assessment or barrier analysis.

Bio
economy
Feedstock
pricing &
volatility
Technology
Development
(performance
& cost)
Environmental
considerations
The bioeconomy will create
sustainable business opportunities
for feedstock suppliers, technology
and project developers,
manufacturers and investors.
Added ‘value’ markets provide
growth platform.
Feedstock economics drive
toward C4 commodity chemicals
Commercial development based
on collaborations
Summary
Bioeconomy Drivers

Celebrating 10 years of Bioeconomy
development
NNFCC is a UK based consultancy with
expertise on the conversion of biomass
to bioenergy, biofuels and biobased
products.
We help industry solve complex
business challenges and provide vital
evidence for policy makers.
| | www.nnfcc.com | enquiries@nnfcc.co.uk

Biobased Chemicals Market Innovation Opportunity

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Biobased Chemicals Market Innovation Opportunity