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Europe’s chemical industry is at a crucial crossroads, ready to seize the major opportunity of using biomass as a resource for chemicals, materials and energy. The biobased economy is developing rapidly and is here to stay, that much is certain.

With great expertise in the field of industrial biotechnology, Flanders plays a leading role in creating a biobased economy. What’s more, the region goes to great lengths to specialize in this domain to secure its position at the heart of one of the world’s biggest chemical clusters. Flipping through these pages, you will discover why Flanders is:

• a pioneer in industrial biotechnology;• a reference in pilot and demonstration infrastructures;• home to a strong (chemical) industry;• bursting with diverse and innovative biomass feedstocks;• a backbone of international biobased activities.

Also, you will learn how all of this opens up a realm of possibilities for your business, research and activities. You will find out how expertise and knowledge go hand in hand with biobased operations in Flanders through a local, high-potential biobased ecosystem.

A SNEAK PEEK INTO FLANDERS’ BIOBASED ECOSYSTEM

FEEDSTOCK ENABLERS MARKET

Strong agro-food industriesCargill, Tereos-Syral,

Tiense Suikerraffinaderij, Citrique Belge, etc.

Major recycling hub

Promising value chains

Know-how

Universities of Ghent, Leuven, Antwerp, etc.

Research institutes and expertise centers such as VITO, ILVO, VIB, INAGRO, etc.

InfrastructurePorts of Ghent and Antwerp, Bio Base Europe Pilot Plant,

Food Pilot, chemical pilot installations

like Agfa, etc.

Strong chemical industry

Major food industry

Cluster and other key organizationsGhent Bio-Economy Valley, FlandersBio, FISCH, GBEV, I-Cleantech Flanders, Flanders’ Food, FCA,

Flanders Innovation & Entrepreneurship, etc.

Numerous SMEs connecting biobased resources, research and industry

A PIONEER IN INDUSTRIAL BIOTECHNOLOGY

Right from the beginning, Flanders has been at the heart of biotechnological and biobased innovation: from pioneering biotech businesses — Citrique Belge, for instance, has been biologically producing citric acid since 1916 — to the groundbreaking molecular research by World Food Prize Laureate Dr. Marc Van Montagu (Ghent University). Today, Flanders’ steady crosspollination between biobased research and business only continues to gain momentum.

WHERE KNOWLEDGE MEETS BUSINESSAccounting for 1% of all biotech patents worldwi-de, Flanders has gained a strong research foothold and hosts various research groups, laboratories and infrastructures in all domains of biotech expertise. These range from enzyme and microorganism isola-tion, microbial genetics and bioinformatics, to syn-thetic and molecular biology, bioprocess or fermen-tation technology, biocatalysis, and downstream and upstream processing.

As a result from this strong focus on biotechno-logy, the biobased sector is thriving in Flanders. The 13,500 km2 region is home to more than 130 com-panies with biotech activities — 7% of all European biotech businesses — employing over 13,000 people.

EASY ACCESS TO RESEARCH ANDDEVELOPMENT Flanders’ five universities and numerous knowledge and research centers are easily accessible for indus-try collaboration: from the VIB life sciences research institute to the VITO institute for technological re-search.

BUSINESS AND RESEARCH IN PRACTICE: GLOBALYEAST In 2015, VIB and Brazilian venture capital firm Per-forma Investimentos co-created GlobalYeast. Based on the science platform of founding professor Jo-han Thevelein, the spin-off develops superior indus-trial yeast strains. CEO Marcelo do Amaral: “Why we decided to invest in Flanders? The region has solid biotech foundations, boasts ultramodern facilities, develops and attracts strong talents, and connects us with a vibrant community of companies, acade-mics and entrepreneurs.”

AMBITIOUS GOVERNMENT, NETWORKING AND FUNDINGBy 2030, Flanders aims to be one of Europe’s most competitive, innovative and sustainable biobased economies. As such, the Government of Flanders actively supports biotech innovation. Flanders also features an industrial biotech cluster initiative through the CINBIOS network, comprising over 300 companies, funding agencies and knowledge cen-ters. Furthermore, CINBIOS partner FISCH, Flanders’ innovation hub for sustainable chemistry, enables the identification and subsidization of innovation projects.

UNIQUE R&D INCENTIVESCompanies deciding to set up R&D activities in Flan-ders can benefit from a vast array of fiscal and fi-nancial incentives, unparalleled in Europe. Flanders not only subsidizes innovative projects, the region also offers a number of useful tax incentives for R&D staff, activities and investments. Some of the most appreciated R&D incentives include:

• Partial exemption from withholding tax for researchers;

• Patent income deduction.

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A REFERENCE IN PILOT AND DEMONSTRATION INFRASTRUCTURES

To help you translate R&D results into viable biobased products or processes, Flanders boasts several cutting-edge pilot and demonstration infrastructures, such as Bio Base Europe Pilot Plant located at the Port of Ghent.

STATE-OF-THE-ART FACILITYBio Base Europe (BBE) Pilot Plant helps industry play-ers and research institutes with the development, scale-up and custom manufacturing of biobased processes and products. BBE Pilot Plant in a nutshell:

• Independent, transparent partner: as an independent organization, the plant operates with full confidentiality, while the customers’ presence during pilot trials ensures a seamless technology transfer with its costumers.

• Expert in scale-up: seasoned engineers,

operators and technicians guarantee a fast and efficient scale-up of your activities.

• Flexible provider: the pilot plant performs bioprocesses from kilogram to multi-ton scale, builds customized process lines using a wide spectrum of modular operation units, and designs project outlines to suit your needs.

• One-stop shop: the entire production chain — from feedstock to final refined products — is performed within one single facility, using technologies such as biomass pretreatment, biocatalysis, fermentation, green chemistry, biorefining and purification.

EUROPEAN FRONTRUNNERIn 2014, the European Commission selected BBE Pilot Plant as one of four European multi-KETs pilot production demonstration projects. The plant ser-ves as an international example of how to combine several KETs (Key Enabling Technologies) to boost Europe’s competitiveness. The ‘SmartPilots’ project, for example, brings together Europe’s leading pilot facilities and their respective regional authorities. The aim? To improve regional policies in support of shared pilot facilities.

CASE STUDY: BIO BASE NWE AND CELTIC RENEWABLESIn 2013, the European Commission launched Bio Base NWE to further stimulate a biobased economy in northwestern Europe. 27 SMEs received an ‘innovation voucher’ representing EUR 30,000 for feasibility studies and scale-up work at BBE Pilot Plant. One of these companies was Celtic Renewables (UK). The spin-off developed a process to convert residues from the whiskey industry into advanced bio-butanol. In 2013, Celtic Renewables called in BBE Pilot Plant to work on this process at lab scale. Today, the company can start building the world’s first production plant dedicated to this cutting-edge process.

THE NUMBERS TELL THE TALEFully operational since December 2012, BBE Pilot Plant has an impressive track record. Between 2013 and 2015, it successfully:

• partnered with 71 SMEs and large enterprises on 129 projects;

• participated in 15 European and 5 Flanders-based public projects and thus interacted with 85 companies and research institutes.

THROUGH BIO BASE EUROPE PILOT PLANT, FLANDERS TAKES POLE POSITION IN INDUSTRIAL BIOTECHNOLOGY.”– Prof. Wim Soetaert, Managing Director of BBEPP.

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HOME TO A STRONG (CHEMICAL) INDUSTRY

Flanders showcases major industrial strengths, coupled with a large pool of SMEs connecting the region’s industry with biobased resources and research. This is ideal for biobased applications in various fields: from bulk chemicals and biofuels to fine chemicals, biomaterials, and agro and food products.

MAJOR CHEMICAL SECTORHome to one of the world’s largest petrochemical clusters (Antwerp), Flanders also houses various large- scale fermentation facilities in the agro, food and bio-fuel industries. Add to that the region’s strong life sciences, plastics, pharmaceutical and oleochemical sectors, and it is easy to see how the region opens up many value chains for industrial biotech applications.

LEVERAGING A SOLID INDUSTRIAL BASEBiobased materials are found in applications as diverse as packaging materials, clothing and plastics. In Flanders, you will find a broad network of multi-nationals and SMEs specializing in materials proces-sing, most notably in the field of synthetic materials, textile and wood, paper and cardboard.

What is more, Flanders is renowned for its food industry. This sector is one of the region’s largest employers and showcases major trends, including a growing demand for healthy foods and proteins, re-source efficiency and sustainable production proces-ses, continuous innovation in food packaging, and further integration of agriculture, food production and distribution.

STRONG INDUSTRIAL CLUSTERINGApart from the Antwerp petrochemical cluster, Flanders also features a strong biotech cluster in and around the Port of Ghent. Two examples:

• Ghent Bio-Economy Valley is a leading European cluster supporting the development of a biobased economy;

• The Ghent-based Rodenhuizedok biorefinery cluster is Europe’s largest integrated bio-energy production complex, hosting the production of bio-ethanol, biodiesel and bio-electricity under one roof.

LEADING BIOTECH CLUSTERFlanders is home to one of Europe’s leading bio-tech clusters in terms of market capitalization, em-ployment as well as R&D investment and licensing deals. Strongly R&D-driven, Flanders’ biotech sec-tor leverages innovative biotechnologies to develop novel medical solutions, crops, chemical compo-nents, enzymes, etc. In addition, local networking organization FlandersBio goes to great lengths to support the sector’s sustainable development as a strong driver of economic growth in Flanders.

CASE STUDY: ARCELORMITTAL In a world first, ArcelorMittal is investing EUR 87 million into the construction of a biorefinery. The aim is to convert blast furnace gases into biofuels at its steel plant in Ghent, Flanders. Using LanzaTech carbon recycling technology, steel-making waste gases will be reused and fermented with a proprietary microbe to produce bioethanol.

GHENTANTWERP

That was the annual turnover of Flanders’ chemical, synthetic materials and life sciences industries in 2014.

EUR

42 billion

Totaling EUR 1.4 billion in R&D investments in 2014, the chemical

sector represents nearly 50% of industrial R&D

in Flanders.

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BURSTING WITH DIVERSE AND INNOVATIVE BIOMASS FEEDSTOCKS

Flanders has secured a unique and competitive biomass feedstock posi-tion. Not only is there a high availability of diverse feedstock resources, the region also excels at generating second and even third-generation feedstocks.

STRONG FOOTHOLD IN AGRO-FOOD, SUGAR AND STARCHFlanders is home to several world-leading compa-nies in the sugar and starch industry, and boasts a strongly developed agro-food sector overall. Many local agricultural businesses cultivate sugar beets and corn — providing valuable resources for indus-trial biotechnology. What is more, enhanced cultiva-tion techniques and the improvement of crop seeds further increase yields.

PROMISING VALUE CHAINSFlanders has extensive know-how in innovative bio-mass generation processes, including gasification, fermentation, chemical conversion and biorefining. Thanks to its strong chemical industry and agro-food sector, four promising biomass value chains particularly stand out in the region:

• the production of fine chemicals from sugars, starch and so on;

• the development of second-generation sugars;

• the use of lignin-rich resources for the production of materials and chemicals with high added value;

• the conversion of carbonaceous (waste) gases into chemicals.

MAJOR RECYCLING HUBFlanders is a European leader in waste separation and processing of organic waste and plastic packaging. Nearly three quarters of all residential waste produced in the region is reused, recycled or composted. By 2020, Flanders aims to further reduce the amount of residual waste by 15%, which will translate into a vast amount of additional organic waste that can be used as feedstock for the biobased industry.

(INTERNATIONAL) ACCESS TO BIOMASS STREAMSThrough the ports of Antwerp, Ghent and Zeebrug-ge, Flanders attracts major cargo streams, such as agricultural bulk. The ports also offer a gateway to lignocellulose as a biomass feedstock. As such, ligno-cellulose material can be sourced internationally in the form of wood pellets, wood chips, etc.

These materials also provide lignin, ready for co-fi-ring, while offering future possibilities in the pro-duction of aromatic chemicals. Flanders’ institute for technological research (VITO) is currently resear-ching these possibilities, which should be ready for commercialization by 2025. A collaboration between VITO, several universities, and Flanders-based and international industries, the project aims to develop innovative biobased and eco-friendly molecules and materials.

FEEDSTOCK INNOVATION IN PRACTICE: AQUATIC FEEDSTOCKSince 2008, chemical company Proviron leverages a unique technology for the production of micro- algae in photobioreactors at the Hooge Maey land-fill site in Antwerp, Flanders. Biobased raw materials are extracted from these algae for various applicati-ons in the region’s chemical industry, thus replacing fossil fuel raw materials.

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A BACKBONE OF INTERNATIONAL BIOBASED ACTIVITIES

With three seaports, three international airports and a dense network of pipelines, roads, railroads and inland waterways, Flanders offers a strong and — above all — globally oriented logistics network. In additi-on, the region is ideally situated between the Netherlands, France and Germany, three nations with significant biotech strengths.

OPENING UP MAJOR BIOBASED MARKET POTENTIALFlanders is located at the heart of the Antwerp-Rotterdam-Rhine-Ruhr Area (ARRRA) — Europe’s strongest industrial mega-cluster — offering great market demand for industrial biotechnology. The region also holds a competitive position within the BIG-C region — the ‘Bio Innovation Growth Mega Cluster’, which includes Flanders, the Netherlands and North Rhine-Westphalia.

Port of Zeebrugge

Port of Antwerp• Part of the world’s biggest petrochemical cluster

(ARRRA)• Flanders’ institute for technological research (VITO)

and dedicated collaborations with several universities, including Antwerp University

• Various chemical companies with high added value, including activities such as pharmaceutics and food additives

• Strong waste management companies and skills (e.g. Indaver)

• Numerous biobased companies; Lawter, Transfuran Chemicals, OWS, etc.

Port of Ghent• Port for biomass import, with Europe’s largest

dedicated integrated bio-energy production cluster at Rodenhuizedok

• Bio Base Europe Pilot Plant• CINBIOS industrial biotech cluster• Ghent Bio-Economy Valley• FlandersBio, biotech networking organization• Biobased companies such as Stora Enso, Oleon and

Cargill• VIB life sciences institute• Dedicated collaborations with Ghent University, etc.

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CONTACT

Koning Albert II-laan 37BE-1030 Brussels | Belgium

T. +32 2 504 87 11E. info@fitagency.be @InvestFlanders

PARTNERS

This document was created in collaboration with the following partner organizations.

The Government of Flanders is eager to facilitate initiatives and companies that help shape the biobased economy within the region. Need expert advice or more information on Flanders’ assets in industrial biotechnology? Contact Flanders Investment & Trade, the go-to organization for international business in Flanders.

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