This presentation was given on the 27th November 2014 at a BBSRC Grant Holders meeting held at Warwick University. It introduces the value of the bioeconomy and how the UK is developing its industrial biotechnology sector.

1. The UK development of Industrial Biotechnology and Bioenergy in the context of the global Bioeconomy

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the set of economic activities relating to the invention, development, production and use of biological products and processes.
improve health outcomes, boost the productivity of agriculture and industrial processes, and enhance environmental sustainability.
Source - OECD
Biological Tools
Biological Raw Materials
The Bioeconomy
Biobased
Biotech

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The value of biomass
Biomass
Functional content
Carbon
content
Energy
content
Materials
Chemicals
Liquid & Gaseous Fuels
Heat & Power
Biorefinery operation
Stranded assets
Food, Feed & Medicine
Cascading use

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Attractive because it’s inherently circular
http://www.wageningenur.nl/en/Expertise-Services/Research-Institutes/food-biobased-research/Expertise-areas/Biorefinery.htm

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A major global employer

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A mechanism to drive sustainable development covering Environmental, Economic and Social policy. Today’s bioeconomy in Europe
•is worth an estimated €2 trillion
•accounts for 22 million jobs
•9% of total employment in the EU Each euro invested in EU-funded bioeconomy research and innovation is estimated to trigger €10 of value added in bioeconomy sectors by 2025.
EUROPEAN BIOECONOMY
Innovating for Sustainable Growth
A Bioeconomy for Europe
February 2012

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Bio-based value propositions
•New or enhanced product performance (in use phase or wider life cycle)
•Lower cost production routes
•Consumer desire for environmentally friendly products
•Value created through policy intervention

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Cost to develop and win marketing approval for a new drug is $2.6 billion 1
1) Source: Tufts CSDD
http://www.firstwordpharma.com/node/1246255#axzz3KByBqK7a
Clear functional value in biopharma

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Emotional value

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Changing monetary cost base
0
50
100
150
200
250
300
Commodity Agricultural Raw Materials
Commodity Food
Crude Oil

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Source: World Meteorological Organisation
Policy intervention

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Innovation
Research
Development
Pilot
Demonstration
Commercialisation
Technology Valley
Commercialisation Valley
Knowledge ≠ Invention ≠ Innovation

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VISION UK bioscience research delivering products & processes key to the bioeconomy and driving economic growth for the UK and worldwide

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Industrial Biotechnology – Multidisciplinary science
Biological Chemistry
Bioprocess Engineering
Molecular Biology
Systems Biology
Cell Biology
Synthetic Biology
Bio- prospecting

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Create communities and foster stakeholder engagement resulting in collaboration

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£2-5M
£5M
£10M
Early Stage
Late Stage
£250K
£1m
IB Catalyst Funding streams
Proof of concept studies

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IB Catalyst Round 1
31%
17%
30%
22%
23
FUNDED
PROJECTS
19%
12%
41%
28%
Fine & Specialities
Commodities
Peptides & Proteins
Efficiency
TOTAL
GRANT VALUE
£21.5M
Total Project Value = £26.7M

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The EU contributes €1 billion to the research and innovation program, European industries have committed to another €2.7 billion
Bio-based Industries Public Private Partnership
http://biconsortium.eu/

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UK process development support

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Making the most of Europe

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The cellulosic ethanol rush
POET-DSM, US, Operational. Capacity 20M gal (~60,000t/y)
Beta Renewables, Italy, Operational. Capacity 40,000t/y
Abengoa, US, Operational. Capacity 25M US gal
DuPont, US, under construction. Capacity 30M US gal (~90,000t/y)
GranBio, Brazil, Operational. Capacity 21.6M US gal

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Image courtesy of Abengoa
Anaerobic digestion – an integral part of cellulosic ethanol biorefineries

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Image courtesy of Poet/DSM
Biorefineries create integration potential

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The Graduate (1967)

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In 2011 Coca Cola distributed
5bn plant bottle packages across 20 countries
Image courtesy of Coca Cola

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“The global bio based succinic acid market is expected to reach market volume of 710.0 kilo tons by 2020, growing at a CAGR of 45.6% during 2013- 2020” - Allied Market Research
Operating a 13,600t/a nameplate capacity plant in Louisiana, US
Constructing a 30,000t/a nameplate capacity plant in Ontario, Canada
Operating a 10,000 t/a nameplate capacity plant in Cassano Spinola, Italy
Operating a 10,000 t/a nameplate capacity plant in Montmeló, Spain

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31%
24%
23%
23%
19%
19%
14%
14%
9%
Already using some renewable feedstocks…
Strategic commitment to use of…
Currently investing in research &…
Actively investigating & planning
Currently partnering with other companies
Considering
Strategic interest to back-integrate &…
Little interest at this time
Currently investing in renewables-based…
ICIS chemical business reader survey on sustainability
Based on responses of 960 participants

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High value products with extended value chains
Source: European Bioplastics

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The bioeconomy will take time to develop
It’s not necessarily what you can see that’s important!

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Final thought
Ensure your terminology is understood by your audience!

31. Celebrating 10 years of Bioeconomy development
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We help industry solve complex business challenges and provide vital evidence for policy makers.
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