Europe plans to invest Euro 3.7-bn in biobased industries

European Commission President Barroso and Commissioner for Research, Innovation and Science Geoghegan-Quinn have announced the formal launch of a Euro 3.7-billion Public-Private Partnership (PPP) on biobased industries in Brussels. Immediately, substantial investments in biobased products and fuels sourced locally and ‘Made in Europe’ will be initiated using the continent’s untapped biomass and wastes as feedstock to make fossil-free and greener everyday products. All while creating jobs, sparking rural growth, and reducing greenhouse gas emissions.

 

“Europe is not ahead of the curve when it comes to realising the immense potential around the creation of the bio-based economy – the only viable alternative to our current oil-based society,” said Peder Holk Nielsen, President and CEO, Novozymes, who is representing the emerging industry on the ground in Brussels today.

 

He added, “With this unprecedented public-private commitment, however, we demonstrate that EU wants to take the lead in this transition towards a biobased economy. For Europeans, it is an opportunity to secure thousands of rural jobs and sustainable growth in our regions, while reversing the investment trends currently going to other parts of the world.”

 

Between 2014 and 2024, the Euro 3.7 billion will be injected into the European economy to develop an emerging sector of the bio-economy, biobased industries. In 2014 and 2015 alone, more than Euro 250 million will come from the European Commission, with the private sector expected to contribute nearly three times as much.

 

Through financing research and innovation projects, the PPP will create new partnerships between sectors such as agriculture/agrofood, chemicals, energy, pulp and paper, and technology providers.

 

“Advanced biorefineries and innovative technologies will convert the renewable resources into sustainable biobased chemicals, materials and fuels. The novelty with this PPP is its focus on bridging the gap from R&D to the market. The large majority of the Euro 3.7-billion will go to first-of-a-kind flagship projects. These are essential to show the technical and commercial viability, at industrial scale, of new generations of biobased products and fuels, and to reduce perceived investment risks for rolling them out,” informed Holk Nielsen.

 

The partnership represents a shift from a fossil- and imports-based society to increase Europe’s share of sustainable economic growth, and is expected to create tens of thousands of jobs, with 80% in rural areas, revitalise industries, and diversify farmers’ incomes. The initiative will also help combat climate change, as biobased products reduce greenhouse gas emissions by at least 50% in comparison to fossil-based applications - a number as high as 90% in terms of advanced biofuels from agricultural residues and municipal solid waste when compared to oil-based fuels.

 

More than 70 leading, European companies in the biotech, chemical, energy, agro-food and pulp and paper sectors are part of the initiative.

 

Concrete examples of projects the PPP intends to support include advanced biorefineries that turn agricultural and forestry residues or municipal solid waste to biochemicals and advanced biofuels. By 2020, the ambition is to have at least five flagship biorefineries – each of which is expected to generate feedstock supply chain jobs between 12,000 to 18,000 annually1. In 2012, a report by Bloomberg New Energy Finance concluded that in Europe alone more than 1 million jobs can be created from transforming agricultural residues into advanced biofuels – while generating economic growth, reducing greenhouse gas emissions and contributing to energy security by 2030.