1. EUROPEAN INDUSTRY IN 2020
INDUSTRIAL BIOTECHNOLOGY
IN A GLOBALIZED WORLD
Per Falholt, Exec. VP R&D
Novozymes A/S

2. NOVOZYMES IN BRIEF
 World leader in industrial enzymes &  More than 700 products used in 130
microorganisms countries in > 30 different industries
 Enzymes account for 90% of turnover  ~ 6,000 employees in total
 47% share of the global industrial  14% of sales are reinvested in R&D
enzyme market worldwide
 Sales 2011: DKK 10.5 billion (~€1.4  More than 6,500 granted patents and
billion) pending patent applications
PRODUCTION RESEARCH

3. Industrial Biotechnology – everywhere in our daily life

4. INDUSTRIAL BIOTECHNOLOGY
A key enabler for the
biobased economy…
…an envisioned future
where biomass
replaces fossil oil

5. THE BIOREFINERY
AT THE CENTRE OF
THE BIOBASED ECONOMY

6. Biomass Enzymatic Fermentation Recovery &
pretreatment hydrolysis purification
Biotechnology at the centre of the biorefinery

7. Biomass Enzymatic Fermentation Recovery &
pretreatment hydrolysis purification
Cellulose
Glucose
Biotechnology at the centre of the biorefinery

8. Biomass Enzymatic Fermentation Recovery &
pretreatment hydrolysis purification
Biotechnology at the centre of the biorefinery

9. Biomass Enzymatic Fermentation Recovery &
pretreatment hydrolysis purification
Biotechnology at the centre of the biorefinery

10. Biomass Enzymatic Fermentation Recovery &
pretreatment hydrolysis purification
Biotechnology at the centre of the biorefinery

11. WHAT’S IN IT FOR EUROPE?
• Generate €31bn in revenues*
Growth • Save €49bn on oil import*
• Strengthen innovation/technological leadership
Jobs
• Up to 1mill. jobs by 2020* mainly in rural
zones
Energy
• Increase energy security by substituting more
Energy
than 50% of all gasoline
security
• Reducing GHG emission from gasoline related
Climate
road transport by 50%
11
Sources: Bloomberg New Energy Finance (2010), RED.

12. Lab Pilot Demonstration Full scale production facility
(g) (kg) (t) (kt)

13. LACK OF EU SUPPORT FOR DEMONSTRATION
International benchmark on the share of basic, applied and development
activities
Developed
Applied
FP7
Basic
Korean, Chinese and
US federal R&D
funds mainly
go to Applied
Development
whereas Europe has
the highest share of
Basic Research
Funding Source: Key Science and Engineering Indicators, National Scientific Board, 2010 Digest, NSF,
http://cordis.europa.eur/erawatch, OECD “Research & Development Statistics

14. BARRIERS TO DEPLOYMENT IN EUROPE
Need for biomass collection Conversion economics – No incentives for demand for
infrastructure economies of scale biobased product
No market for residues
Biorefinery financing

15. POLICY SUPPORT & COORDINATION ARE
NEEDED…
Resource
Efficiency EU Climate
HORIZON
Change Policy 2020 KBBE
REACH
FP7
Lead Market
Research Initiative
Financing IB SMEs Environment KET action plan
… Industry
EU BIOBASED
CAP EU Biobased
ECONOMY Renewable
REFORM Economy Energy
Agriculture Energy Directive
Cohesion
Reform sugar regime Biomass Action Plan
Cohesion & Structural
funds
…TO REALIZE THE POTENTIAL

16. Thank you