Sustainable Biomass Supply and Market Aspects for Bio-Based

Products

Achim Boenke DG Enterprise and Industry Unit - Chemical Industry ISCC-Conference Brussels, 5th February 2014

The Policy Context (1)

Bioeconomy for Europe Communication COM(2012) 60 final, Brussels, 13.02.2012; http://ec.europa.eu/research/bioeconomy/pdf/201202_innovating_sustainable_growth.pdf

"The Bioeconomy Strategy and its Action Plan aim to pave the way to a more innovative, resource efficient and competitive society that reconciles food security with the sustainable use of renewable resources for industrial purposes, while ensuring environmental protection. They will inform research and innovation agendas in bioeconomy sectors and contribute to a more coherent policy environment, better interrelations between national, EU and global bioeconomy policies and a more engaged public dialogue. They will seek synergies and respect complementarities with other policy areas, instruments and funding sources, which share and address the same objectives, such as the Common Agricultural and Fisheries Policies (CAP and CFP), the Integrated Maritime Policy (IMP), environmental, industrial, employment, energy and health policies."

The Policy Context (2) European Industrial Renaissance

COM(2014) 14/2??? final, Brussels, ??? .2014; http://ec.europa.eu/enterprise/initiatives/mission-growth/index_en.htm & http://europa.eu/rapid/press-release_IP-14-42_en.htm?locale=en

"These strategic, cross-cutting areas are: advanced manufacturing, key enabling technologies, clean vehicles and transport, bio-based products, construction and raw materials and smart grids." "Bio-based products: granting access to sustainable raw materials at world market prices for the production of bio-based products. This will require the application of the cascade principle in the use of biomass and eliminating any possible distortions in the allocation of biomass for alternative uses that might result from aid and other mechanisms that favour the use of biomass for other purposes (e.g. energy)*."

* For a description and interpretation of the cascading principle, see http://ec.europa.eu/research/bioeconomy/pdf/201202_commision_staff_working.pdf - Commission Staff Working Paper that is accompanying the Commission's Communication on the Bioeconomy Strategy – see pages 25-26, 2nd paragraph in section 1.3.3.1. and http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//NONSGML+REPORT+A7-2013-0201+0+DOC+PDF+V0//EN – European Parliament Opinion on the Commission Communication on the Bioeconomy Strategy – see item 28 on pages 6 & 7.

Operational Structures

§  Bio-economy Panel (all Stakeholders); §  Bio-economy Commission Inter-Service Group; §  Bio-economy Observatory; §  Renewable Raw Materials (RRM) Group (Industry & MS-Agencies); §  Commission Expert Group for Bio-based Products.

Main Industrial Policy Challenges

§  Promote fair and non-discriminatory access for European industry to bio-mass, by strictly applying the "cascading use principle" for the use of biomass & entering into closer international cooperation.

§  Support technological innovation to better use biomass as a feedstock for value creation, by supporting PPPs under Horizon 2020 & facilitating access to finance for large scale demonstrators.

§  Promote the concept of the "circular economy", by facilitating the re-use of waste through standards & new business models that lead to better material efficiency & sustainability.

§  Stimulate the demand for bio-based products, by developing lists of product groups & facilitating networking between public procurers.

Towards Bio-Based Products

§  Market for "bio-based" chemical substances will grow, including bio-based polymers, lubricants and solvents and recovered phosphates.

§  "Bio-degradable plastics" are most visible, but still a challenge. §  Renewable raw materials represent 10% of feedstock for chemical

industry in Europe & will further increase.

§  Fair & non-discriminatory access to biomass is an issue for chemicals industry in Europe, within Europe & internationally.

On-going Activities & Discussions §  What is the growth potential of new "bio-based" products? §  How to further strengthen & apply the "cascading use principle"? §  Which role should European legislation/standardisation play to promote bio-based products? §  How to better raise the awareness of public procurers for bio-based

products? - Why should preferential treatment be given to bio-based products?

Results Standardisation – Available Outputs:

Results Standardisation – On-going Work:

Renewable Raw Materials (RRM) – Group Work on Biomass Flows & Bio-Based Products Markets

Presentation at the RRM-Group Meeting, 13th Novermber 2013 Brussels, BE

Renewable Raw Materials (RRM) – Group Work on Biomass Flows & Bio-Based Products Markets

Presentation at the RRM-Group Meeting, 13th Novermber 2013 Brussels, BE

≈ 5 % of total 2011

≈ 35 % of total 2011

≈ 59 % of total 2011

Input for the Bio-Observatory European Commission (2013), Bio-economy and sustainability: A potential contribution to the Bio-economy

Observatory http://publications.jrc.ec.europa.eu/repository/bitstream/111111111/27454/1/lb-na-25743-en-n.pdf Estimated market capacity development for several bio-based products in Europe:

Biorefineries should adopt a cascading approach to the use of their inputs, favouring highest value added and resource efficient products, such as bio-based products and industrial materials, over bioenergy. The principle of cascading use is based on single or multiple material uses followed by energy use through burning at the end of life of the material, including taking into account the greenhouse gas emissions (GHG) mitigation potential. By-products and wastes from one production process are used to feed into other production processes or for energy. Biorefineries can thus contribute to the principles of a "zero-waste society".

Staff Working Document Accompanying Bioeconomy Communication COM(2012), Brussels; http://ec.europa.eu/research/bioeconomy/pdf/201202_commision_staff_working.pdf

Bioeconomy for Europe Communication COM(2012) 60 final, Brussels, 13.02.2012; http://ec.europa.eu/research/bioeconomy/pdf/201202_innovating_sustainable_growth.pdf

Promote the setting up of networks with the required logistics for integrated and diversified biorefineries, demonstration and pilot plants across Europe, including the necessary logistics and supply chains for a cascading use of biomass and waste streams. Start negotiations to establish a research and innovation PPP for bio-based industries at European level (by 2013). Note: Proposal for a COUNCIL REGULATION on the Bio-Based Industries Joint Undertaking – COM (2013) 496 final, Brussels, 10.7.2013.

European Industrial Renaissance COM(2014) 14/2 final, Brussels, 22/01/2014; http://ec.europa.eu/enterprise/initiatives/mission-growth/index_en.htm &

http://europa.eu/rapid/press-release_IP-14-42_en.htm?locale=en

"The Commission will ensure policy neutrality in access to biomass for different purposes to enable efficient application of the cascade principle in the use of the biomass to ensure an efficient and sustainable use of natural resources. Also if deemed necessary, it will consider measures to enable industry to have access at global market prices to key inputs such as bio-ethanol or starch for bio-based industrial activities emerging from traditional sectors such as chemicals, paper and other forest-based industries."

"Bio-based products: granting access to sustainable raw materials at world market prices for the production of bio-based products. This will require the application of the cascade principle in the use of biomass and eliminating any possible distortions in the allocation of biomass for alternative uses that might result from aid and other mechanisms that favour the use of biomass for other purposes (e.g. energy)*."

* For a description and interpretation of the cascading principle, see http://ec.europa.eu/research/bioeconomy/pdf/201202_commision_staff_working.pdf - Commission Staff Working Paper that is accompanying the Commission's Communication on the Bioeconomy Strategy – see pages 25-26, 2nd paragraph in section 1.3.3.1. and http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//NONSGML+REPORT+A7-2013-0201+0+DOC+PDF+V0//EN – European Parliament Opinion on the Commission Communication on the Bioeconomy Strategy – see item 28 on pages 6 & 7.

2030 Climate & Energy Goals for a Competitive, Secure & Low-Carbon EU Economy

Commission Press Release, IP/14/54 22/01/2014, Brussels, 22/01/2014; http://europa.eu/rapid/press-release_IP-14-54_en.htm "An EU-wide binding renewable energy target: Renewable energy will play a key role in the transition towards a competitive, secure and sustainable energy system. Driven by a more market-oriented approach with enabling conditions for emerging technologies, an EU-wide binding target for renewable energy of at least 27% in 2030 comes with significant benefits in terms of energy trade balances, reliance on indigenous energy sources, jobs and growth."

"Competitive, affordable and secure energy: The Commission proposes a set of key indicators to assess progress over time and to provide a factual base for potential policy response. These indicators relate to, for example, energy price differentials with major trading partners, supply diversification and reliance on indigenous energy sources, as well as the interconnection capacity between Member States."

Input for the Bio-Observatory European Commission (2013), Bio-economy and sustainability: A potential contribution to the Bio-economy

Observatory http://publications.jrc.ec.europa.eu/repository/bitstream/111111111/27454/1/lb-na-25743-en-n.pdf Estimated turnover and employment in EU bio-based industries:

Source: European Commission, DG Enterprise and Industry, (2013); Industrial Policy - Monthly Note – Industrial Policy Indicators and Analysis - June 2013 – Special Feature Bio-Based Sector Achievements and Further Challenges; http://ec.europa.eu/enterprise/policies/industrial-competitiveness/economic-crisis/files/monthly-note-june-2013_en.pdf .

Cascading Use Principle Illustration

Cascading Use Principle Example

Results Communication / Mapping / R&D projects:

•  Eurobarometer survey (2009) •  Mapping of bio-refineries in Europe (See Star-Colibri-

project Reports - http://www.star-colibri.eu/publications/projectresults/) •  FP7-joint call for biorefinery research (2008)

3 projects / 52 M€ EUROBIOREF – fragmentation in the biomass industry BIOCORE – lignocellulosic biorefinery for sustainable processing of

agricultural residues SUPRABIO – integrate novel intensified unit operations for the

production of 2nd gen. Biofuels, intermediates and high value products -> Those projects have now a common sustainability assessment approach.

------------------------------------------------------------------- BIOCHEM – improving the innovation capacity of bio-based

chemistry start-ups and SME – EUROPE INNOVA - CIP

Results Ø Public Procurement / Methodology

•  Encourage GPP for bio-based products

•  “Food and Catering” toolkit (2008) •  “Buying Green”-Handbook (2008)

•  Common Methodologies for Sustainability •  ILCD – Handbook for LCA (2010) – JRC Activities. •  Information about sustainability: EU-Projects (until 2013)

Ø  PROSUITE – PROspective SUstaInability Assessment of Technologies & linked to LC-IMPACT - Life Cycle Impact assessment Methods for imProved sustAinability Characterisation of Technologies – Work Completed & Results Available!

Ø  GLOBAL-BIO-PACT – Global Assessment of Biomass and Bioproduct Impacts on Socio-economics and Sustainability

Ø  “LCA to go” – Boosting LCA Use in European SME

PROSUITE – PROspective SUstaInability Assessment of Technologies

On-going Work in CEN TC 411 WG 4

On-going Work in CEN TC 411 WG 4

•  Contribute to the set-up & operation of research, development & innovation initiatives, including the promotion of demonstration projects such as integrated & diversified biorefineries:

§  Important tools:

o  Public-Private-Partnerships under Horizon 2020, i.e. Bio-based Industry (JTI-type PPP) & SPIRE (contractual PPP), the latter focusing on energy and resource efficient processes to generate bio-based chemical substances.

o  Further use should be made of Structural Funds & Rural Development Funds, EIB loans & the European Innovation Partnerships (EIPs – Sustainable Agriculture & Efficient Water).

Industrial Policy Implementation Activities –Actions

Note: Proposal for a COUNCIL REGULATION on the Bio-Based Industries Joint Undertaking – COM (2013) 496 final, Brussels, 10.7.2013.

Results      Public Procurement / Methodology    

•  Failed to set up a network of public procurers of bio-based products.    -> Now: EC, DG Enterprise Public Procurer Network (PPN) is informed about bio-based products, their capabilities & their availability. Future events bringing PPN & CEN TC 411 'bio-based products' Members together are being planned for 2013 &/or 2014 under the EU-KBBPPS-Project.

• Encourage GPP for bio-based products.

Thank you for your kind attention!

Additional Slides

The Policy Context

Industrial Policy Communication COM(2012) 582 final, Brussels, 10.10.2012; http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0582:FIN:EN:PDF

"This Communication proposes a partnership between the EU, its Member States and industry to dramatically step up investment into new technologies and give Europe a competitive lead in the new industrial revolution. After an extensive public consultation, the Commission proposes to jointly focus investment and innovation on six priority action lines: Advanced manufacturing technologies, key enabling technologies, bio-based products, sustainable industrial and construction policy and raw materials, clean vehicles, smart grids."

Industrial Policy Communication COM(2012) 582 final, Brussels, 10.10.2012; http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0582:FIN:EN:PDF

The Policy Context

"The Commission will implement the bio-economy strategy and will foster markets for bio-based products, speeding up the development of standards and their international recognition, promoting labelling and green public procurement, and will work with industry to develop detailed proposals for a bio-economy PPP (2013-14 onwards)."

Objective

Renewable Raw Materials (RRM) – Group Work on Biomass Flows & Bio-Based Products Markets

Presentation at the RRM-Group Meeting, 13th Novermber 2013 Bruissels, BE

Structure of CEN TCs Working on Bio-Based Products

•  Public procurement:

§  Develop lists of product groups collating information from the following sources and others:

Industrial Policy Implementation Activities – Actions

On-going Work in CEN TC 411 WG 4