BIO-BASED INNOVATIONSDRIVING CIRCULAR BIOECONOMY

Anne-Christine RitschkoffSenior Advisor

VTT Technical Research Centre of Finland Ltd

Bioeconomy - a corner stone forFinland´s economy

2VTT 2017

Finland is rich in natural resources

FOREST• 78% of the total area• Annual growth >100 Mm3

• In use ~60 Mm3

SWAMP AND MARSHLAND• 9,3 million ha• peat resources 69 billion m3

• estimated exploitable amount1,2 million ha(12 000 TWh)

•

FOREST• 78% of the total area• Annual growth >100 Mm3

• In use ~60 Mm3

SWAMP AND MARSHLAND• 9,3 million ha• peat resources 69 billion m3

• estimated exploitable amount1,2 million ha(12 000 TWh)

•

FIELDS• 2,3 million ha• 1,8 million ha used for food

and feed• 500 k ha for alternative use,

annual production > 10 million tn(grain 4 mtn, straw 2,6 mtn, turf2,6mtn)

FIELDS• 2,3 million ha• 1,8 million ha used for food

and feed• 500 k ha for alternative use,

annual production > 10 million tn(grain 4 mtn, straw 2,6 mtn, turf2,6mtn)

WATER• 10% of the total area, aquatic

plants (common reed)

ORGANIC WASTE ANDSIDE STREAMS• Annual volume 74,1 million tn

(municipal wastes 2,8 million tn)

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Bioeconomy’s significance for Finland

Turnover€64bn

Share ofemployment

11%

Share ofexports

26%

Bioeconomy combines woodprocessing, chemistry,energy, construction,technology, food and health.

Forest based bioeconomyaccounts for 2/3 of theturnover

Finland seeks to increase itsbioeconomy output to €100billion by 2025 and to create100,000 new jobs in theprocess.

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Finland’s bioeconomy strategy

1. COMPETITIVE ENVIRONMENT FOR BIOECONOMY1. COMPETITIVE ENVIRONMENT FOR BIOECONOMY

2. NEW BUSINESS FROM BIOECONOMY2. NEW BUSINESS FROM BIOECONOMY

3. STRONG KNOW-HOW BASE FOR BIOECONOMY3. STRONG KNOW-HOW BASE FOR BIOECONOMY

4. USABILITY AND SUSTAINABILITY OF BIOMASS4. USABILITY AND SUSTAINABILITY OF BIOMASS

Sustainablebioeconomy

solutions are thebasis of Finland’s

welfare andcompetitiveness.

6VTT 2018

Starting point - Finnish government's spearhead programsCost efficient transformation to carbon free, clean and renewable energy

Share of renewable energy over 50 % and energy self sufficiency over 50 % by 2030.

Wood resources in use and new products from forests

Diversify use of wood and increase value added.

Make Finnish food production feasible and increase trade balance

Promote domestic use and export of Finnish food products.

Breakthrough of circular economy

Increase recovery of nutrients by processing 50% of manure.

Growth by integrating bioeconomy andlow-carbon economy

7VTT 2018

New forest sector products can double the valueadded of forest sector by 2030

Textiles and hygiene

Resins, chemicals

Value added pulpand paper products

Plasticizers

Replacing plastics

Bioeconomy @ VTT TechnicalResearch Centre of Finland Ltd

8VTT 2017

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VTT Technical Research Centre of Finland Ltd

• VTT is one of the leading research andtechnology organisations in Europe.

• We use our scientific and technologicalexcellence to provide innovation servicesfor our domestic and internationalcustomers and partners.

Net turnover and other operating income269 M€ (VTT Group 2016)

Personnel 2,414(VTT Group 2016)

Unique research and testing infrastructure Wide national and internationalcooperation network

* Loikkanen, T. et al. Roles, effectiveness, and impact of VTT. Towards broad-based impact monitoring of a research andtechnology organisation. 2013. VTT, Espoo. VTT Technology 113. 106 p. + app. 5 p.

BASIC RESEARCH

APPLIED RESEARCH

DEVELOPMENT

UNIVERSITIES

INDUSTRY

VTT

VTT’s status as performer of R&D work

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VTT Bioeconomy at glance

RESEARCH TOPICS

§ Helping companies grow through our technical andscientific knowledge, infrastructure and IPR

§ Development of new value added products andprocess concepts with industrial stakeholders§ Supporting transformation of industries and society

§ 400 person years of research§ 200 customers§ 300 peer review articles (2015)§ 140 patents and patent families§ 1 – 2 spin-offs annually

WeAIMat

WeFOCUS

on

FACTS

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VTT Bio and Circular Economy TechnologyPlatforms

Processchemistry

Thermo-chemistry

Industrialbiotechnology

Environmentalengineering

Mineralrecovery and

recycling

Processmodelling

and concepts

Fibre andcompositetechnology

Biomassprocessing

Foodtechnology Low carbon

energy

Innovations forsustainable environment

Bio-basedvalue chains

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We see exciting new opportunities inFuture cellulose-based high-value applications

§ Challenge: To support the renewal of forest industry to bio-product industry and generate newbusiness from cellulose?

§ Means: Development of innovative technologies and market-driven concepts for ligno-cellulosicproducts to support new value networks across industry sectors (forest-chemistry-energy-food)

C1 economy – replacing fossil carbon by CO2 and other one carbon components§ Challenge: To harness green house gases as an endless raw material source for value added

bulk and specialty products and achieving the carbon-neutral society?§ Means: Development of innovative technologies to utilize CO2 and CH4 in energy, fuels and

chemicals production

Circular economy concepts§ Challenge: To shift from linear to circular flows of materials and value and to realize the

underlying opportunities as business?§ Means: Development of multi-purpose technology platforms, demonstration cases and innovative

business models to support adaptation of clean technologies in global circular economy

Revolutionizing the food supply chain§ Challenge: To ensure the quality and safety and to fulfil the diverse consumer needs and

expectations in the changing food supply chain.§ Means: Analyse the transformation in food delivery ecosystems and its implications for new

technology needs and opportunities in the food chain. Strong collaboration through VTT(digitalization and smart manufacturing technologies)

C1

Cellulose – the super materialfor future innovations

14VTT 2017

Cellulose is renewable andsustainable

• Recyclable

• Compostable

• Combustible

CELLULARSTRUCTURE

WOOD CELL

FIBRILMATRIX

FIBRIL

CELLULOSE

Technology excellence

Design for users

Business opportunities

Innovation value chain - different piecesneed to come together

Foam forming – less material, less water, lessenergy

Excellent uniformityLight-weightMoldability

Can be made highly porousMaterial combinations

e.g. from nanoscaleto centimetres-long fibres

Product benefits

Nanocellulose - strong fibrils for films, 3Dprinting and more

CAD – model Printed model Model after drying

Hannes Orelma, Tiia-Maria Tenhunen, Jaakko Pere (VTT), Ville Klar, Pyry Kärki, Anastasia Ivanova (Aalto University), photo: Eeva Suorlahti

• High dry matter content with an enzymatic process• Versatile processing options• Shape and colour versatility

Thermoformable cellulose in makingCellulose can be made thermoformable by modifyingmolecular mass• Processable with existing plastic converting

equipment• Moisture and water vapour resistant• Heat-sealable• 100% bio-based• Comes in granulate and filament form

Bio-based barrier solution for sustainablepackaging

• Circular Materials Challenge 2018 Award,Ellen MacArthur Foundation

• Ecopack Challenge 2018 Award, PackagingInnovations in assoc. with Marks&Spencer

Oxygen,gas &greasebarrier

3 LAYER BARRIER FILM STRUCTURE

Thermoplastic cellulose

Thermoplastic cellulose

Nanocellulose film

Moisture &water

vapourbarrier

Path from laboratory to pilot – challenges incommercialization

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Example of the needed investments and timeto market of new bioeconomy products

Stage 1

• Piloting and proof of concept in pilot/demonstration facility;techno-economic calculations (time 2016 – 2018;cost €3 million)

Stage 2

• Industrial demonstration time 2019 – 2020;cost €30-50 million)

Stage 3

• First production plant (time 2020 - ; cost €220 million)

Stage 4

• Commercialization to international markets(cost €150 – 250 million/plant

• 2025: 5 plants• 2030: 10 - 20 plants• 2030 > market penetration

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Crossing the “valley of death” requires pilot anddemonstration infrastructure

De-risking with piloting

Collaboration can speed up commercialization

VTT Foam Forming Platform

• ERDF & 32 industry partners• Together towards new value-added fiber products

Turning cellulose into textile fibersimply, without harmful chemicals.Spinnova claims to be the mostsustainable fiber in the world.

Bio-based Product of the Year 2017 Europe

Commercialization through spin-offs –examples from VTT

Turning cotton rich textile wasteinto new fibers for the textileindustry. Infinited Fiber can berecycled again and again withoutdecreasing the quality of the fiber.

Revolutionary, environmental newmaterial replacing plastics. Madeof sustainable wood fiber

Design for users

• Human-centered innovation:Design thinking as a strategy

• Perceptual characteristics of materials

“Design thinking can be described as a disciplinethat uses the designer’s sensibility and methods tomatch people’s needs with what is technologicallyfeasible and what a viable business strategy canconvert into customer value and marketopportunity.”

– Tim Brown CEO, IDEO

Cellulose shoes Saara Kinnunen (HAMK), Atsushi Tanaka, Jani Lehmonen, Hille Rautkoski, Jukka Ketoja, Kirsi Kataja (VTT);Casted Wood, Heidi Turunen (Aalto University); Heating Element Sanna Siljander (TUT), Anastasia Ivanova (Aalto University);Jani Lehmonen, Atsushi Tanaka (VTT), Nanocellulose bike, Kim-Niklas Antin,Tiina Härkäsalmi,Tuomas Pärnänen (Aalto University);Biopolymer-fibre composites chair, Ko-Ho, Plastec, VTT. Photos: Eeva Suorlahti, Ko-Ho

Design from cellulose

Anne-Christine RitschkoffSenior Advisor

VTT Technical Research Centre of Finland Ltdanne-christine.ritschkoff@vtt.fi

THANK YOU!