BBI JUINFO DAY 201912 April 2019Alcide de Gasperi room, Charlemagne building,European Commission, Brussels

Session 2 | The BBI JU 2019 Work Programme

BBI JU: a high-impact initiative structuring the EU bio-based industries

Philippe MengalExecutive DirectorBio-based Industries Joint Undertaking (BBI JU)

BBI JU was part of the EU Bioeconomy Strategy in 2012

MissionUnder Horizon 2020 rules, implement the Strategic Innovation and Research

Agenda (SIRA) developed by the European Bio-based Industries Consortium (BIC) and endorsed by the European Commission (EC)

De-risk investments

Organize the value chains

Reach critical mass

Trigger + Keep + Attract investments

Mobilising effect

Structuring effectIm

plementation

European public-private partnership (iPPP) aims at:

Outputs from Calls 2014 - 2017

82 projects (well spread) € 500 million grant (EC)

€ 1.1 bn private contribution

Grant Agreement Preparation

Ongoing

7 Calls • € 813 million EU grant

2021Call2020

Call2019

Call2018

Call2017

Call2016

Call2015

Call2014 20232022 2024

Outputs from Calls 2014 - 2017

82 projects (well spread) € 500 million grant (EC)

€ 1.1 bn private contribution

Grant Agreement Preparation

Ongoing

7 Calls • € 813 million EU grant

933 beneficiaries41% SMEs32 countries

7 FLAGs (SIRA objective: 5)

2021Call2020

Call2019

Call2018

Call2017

Call2016

Call2015

Call2014 20232022 2024

Outputs from Calls 2014 - 2017Beneficiaries

FLAG biorefineries

EU15

AC EU13

710

539

457

356 326282 279

201 181147 128 113 128

94

374 49 55 50 49 33 25 33 17 12 15 16 11

65 60 41 28 20 12 9 8

162

148

137

10468 106 83

5718

25 36 44 2721

015 16 7 5 3 8 13 5 2 5 2 1 0

26 21 5 3 2 5 1 10

200

400

600

800

1000

ES IT DE FR UK NL BE FI EL PT AT SE DK IE LU PL HR SI RO CZ HU SK LV BG EE CY LT MT NO CH TR IL RS IS MK FO

Reserve list and rejected Beneficiaries

EU-15 EU-13 Associated Countries

Successful Participants in retained proposals compared to reserve list and rejected – Calls 2014 - 2018

Total successful participations: 1179

EU-15: 1036 EU-13: 82 AC: 64

Distribution of funding per country normalised per GDP

EU13 countries when normalised by their total GDP is comparable to that of EU15

Slovakia (BIOSKOH)

Estonia(SWEETWOODS)

Beneficiaries from Calls 2014 – 2017Type of participants

61%20%

13%

6%1%

Private-for-profitorganisationsResearchorganisationsHigher educationestablishmentsOthers

Solid mobilisation ofthe private sector

11%grants amount to Universities

20%participantsare research organisations

17%grants amount to research organisations

13%participantsare Universities

Beneficiaries from Calls

2014 – 2017SME

participation41%

20%

BBI JU 2014-2018 H2020 SME participation

High representation by SMEs

A well balanced project portfolioCalls 2014 + 2015 + 2016 + 2017 + 2018 (*)

Per Type of ActionOrigin of feedstock RIA DEMO FLAGSHIP

Per S

O1

Feed

stoc

k

Agri-based

Carbosurf, PROMINENT,LIBBIO, HYPERBIOCOAT, Zelcor, BIOrescue, EnzOx2, InDIRECT,

BioBarr, SSUCHY, ReSolve, BIOSMART,ECOXY, REFUCOAT, POLYBIOSKIN

NEWPACK, Pro-Enrich, Prolific, EXCornsEED, VIPRISCAR iFermenter,

**

Pulp2Value,AgriMax, Funguschain,

GreenProtein, LIPES, GRACE, OPTISOCHEM,BIOMOTIVE

SUSFERT, ReInvent, EFFECTIVE*

FIRST2RUN, LIGNOFLAG, BIOSKOHAgriChemWhey, PEFerence,

**

Forest basedSmartLi, Greenlight, PROVIDES, US4GREENCHEM

NeoCel, LIBRE, TECH4EFFECT, EFFORTE, SHERPACKSusBind, WoodZymes, UNRAVEL,

****

ValChem, BIOFOREVER, GreenSolRes, PULPACKTION, FRESH, LigniOx

Dendromass4Europe SYLFEED, EUCALIVA,*

EXILVASWEETWOODS

Bio-waste and CO2

NewFert,AFTERLIFE, PERCAL, BARBARA,

**

EMBRACED, URBIOFIN,DEMETER, Biowaste,

*

Aquatic BiomassMACROCASCADE,BIOSEA, ABACUS,

MAGNIFICENT, VALUEMAG, AQUABIOPROFIT,*

SpiralG

Per S

O4

Mar

ket

upta

ke SO4 Policy, regulations and standardization

Consumer awareness of the benefits of the bio-based products

Knowledge gathering and networking

CSA STAR4BBIBioCannDo, BIOWAYS

BIOBRIDGES

BIOPEN, Pilots4U, RoadToBioICT-BIOCHAIN

***

Project outcome monitoring KPI 1/8 from SIRA

>140expected new cross sector interactionsagainst a target of 36 by 2020

>100expected new bio-based value chainsagainst a target of 10 by 2020

Project outcome monitoring KPI 2/8 from SIRA

70% new market/product

50% new technology

50% new feedstock

40% new business

model

>100expected new bio-based value chainsagainst a target of 10 by 2020

Project outcome monitoring KPI 2/8 from SIRA

70% new market/product

50% new technology

50% new feedstock

40% new business

model

>100expected new bio-based value chainsagainst a target of 10 by 2020

SIRA 2014 defineda linear value chain in which:

1 feedstock non-food value chain 1 product

Project outcome monitoring KPI 2/8 from SIRA

SIRA 2014 defineda linear value chain in which:

1 feedstock non-food value chain 1 product

Project outcome monitoring KPI 2/8 from SIRA

The reality of the sector

Outcome monitoring

933 beneficiaries41% SMEs32 countries

7 FLAGs

82 projects (well spread)€ 500 million grant

€ 1.1 bn BIC contrib.

> 140 newcross sector interactions

> 100 newbio-based

value chains

OUTPUT OUTCOME

Outcome monitoring

933 beneficiaries41% SMEs32 countries

7 FLAGs

82 projects (well spread)€ 500 million grant

€ 1.1 bn BIC contrib.

> 140 newcross sector interactions

> 100 newbio-based

value chains

Structuringeffect

Mobilisingeffect

OUTPUT OUTCOME

Organise thevalue chains

Reachcritical mass

Outcome monitoring – KPI 4/8 from SIRA

>60expected new bio-based building blocksagainst a target of 5 by 2020

40% drop-in

30% betterperformance

vs fossil-based

30% breakthrough

Outcome monitoring – KPI 5/8 from SIRA

>140expected newbio-based materialsagainst a target of 50 by 2020

30% drop-in

> 60% new or improved

functionality

Geographical coverage ofDEMOs and FLAGs from Calls 2014 - 2017

KPI 7/87 FLAGSHIPs

3.000 direct jobs

> 10.000 indirect jobs

Total Grant: € 159 million

€1.000 millionprivate investment

High replicability potential

Most in EU13

Ratios EU15 / EU13Population: 3.8

GDP: 11.3

Socio-economic and environnementalimpact monitoring

Yearly survey of BBI JU projects:• Investment and job creation• Environmental impact• Scientific and knowledge• Primary producers and rural deployment• Education and citizen• Market and industry• Regional and local impact• Safety and health• contribution to the UN SDGs (NEW 2018)

Project impact on

jobs & investment

33

26

15

3

17

14

11

1

6

4

6

2

80%

63%

46%

9%

Total new skilled jobs

in the product development and engineering

in rural regions

in coastal regions

Creation of jobsNumber of projects reporting creation of jobs

RIAs Demos Flagships % of all projects

Project impact on Jobs & Investment

• EU grant under BBI JU (Calls 2014-2017): € 500 million

• BIC members investment pipeline survey: 2014: € 2 bn 2017: € 5 bn 2018: € 5.5 bn

0123456

2014 2015 2016 2017 2018

BIC investment pipeline (€ bn)

Project impact on

jobs & investment

Environmental impact of projects

28

29

22

14

13

10

6

4

16

12

10

12

5

6

4

2

6

5

1

2

1

3

1

71%

66%

47%

40%

27%

27%

14%

10%

Bio-based products with lower GHG emissions versus fossil-based alternatives

Waste reduction, reuse, recycling or valorization

Reduced energy consumption

Improved land use

Water use efficiency

Sustainable management of natural resources (e.g.forest management)

Utilization and recycling of CO2 from technical processes

Positive impact on biodiversity

Environmental impactProjects reporting expected impact in these aspects

RIAs Demos Flagships % of all projects

Project impact on science

and knowledge

33

35

28

25

27

18

15

12

14

11

10

9

6

5

6

3

2

4

2

3

2

2

2

2

80%

79%

71%

59%

59%

47%

Knowledge creation/ scientific breakthrough

Increase academia - industry cooperation

Increased cooperation across regions and countries

Scientific community/network building

Technology transfer

Contribution to KET, eg. Biotechnology

Science and konowledgeProjects reporting expected impact in these areas

RIAs Demos Flagships CSAs % of all projects

Lessons learnt (1/3)Key achievements

• Specific KPIs and socio-economic & environemental impact from SIRA well on track and monitoring works;

• BBI JU is achieving its objectives with two main effects:- Structuring effect: value chain-driven cooperation across sectors creating competitiveness

- Mobilizing effect: innovation-driven mobilising key stakeholders

• Financial leverage effect overall on track with some contrast

• Well balanced portfolio showing an optimal value chains coverage

• Public funding of high TRL research projects: Demonstration and Flagships coverage (geographic and feedstock)

• High % of SME participation (and with key role)

• The industry invest in EU: in 2014: € 2 bn 2018: € 5.5 bn

• Europe back on the map (BIC CEOs, BBI JU Advisory bodies)

• BBI JU interim evaluation (EC report 2017)• Structuring effect• Mobilising effect• BBI JU is well aligned vs initial challenges + specific KPIs on track

• Discharge report CONT Committee of European Parliament (Oct 2018): • “The objectives of the Joint Undertaking could not be addressed with traditional

Union instruments. • “The Joint Undertaking has provided a structuring effect, bringing together the

sectors and actors towards deployment of new value chains, and it has mobilisedincreasing investments on developing innovations for the bio-based industries”.

• New EU BioEconomy strategy ( Approved Oct 2018): • BBI JU ” has been instrumental in the development of new bio-based value chains

centred around the use of renewable resources including waste”. • The role of BBI JU “is proving crucial in supporting the development of European

industrial bio-based infrastructures and value chains”

Lessons learnt (2/3)What is said

• Huge and still risky investments Issues accessing private capital Remaining funding gaps in Demo and Flag

• Structuration still ongoing: market and demand risks• Some areas not yet covered enough

Farmers participation Full feedstock potential Geographic coverage …

• Brand owners and retailers participation• Sector request coherent, supportive and stable regulatory framework• Better tell the story of BioEconomy & Bio-Based products: Consumer awareness,

education• Go beyond “fossil to biobased” story: climate mitigation, water quality, human

and animal health, biodiversity…

Lessons learnt (3/3)“We are not there yet” – Horizon Europe

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