1 A Public Private cooperation for bio-based products Francesco Degli Innocenti Novamont [email protected].

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A Public Private cooperation for bio-based products

Francesco Degli InnocentiNovamont

[email protected]

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Bio-based products are of high societal and economic interest and fit into the EU strategies

• Use of renewable resources • Support to rural development• Less dependency on limited and increasingly expensive

fossil resources• The potential to reduce greenhouse gas emissions (carbon

neutral / low carbon impact)• The potential for sustainable industrial production• Increased industrial competitiveness through innovative

eco-efficient bio-based products• Often biodegradability or compostability• Often low toxicity

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Bio-based products already exists

• Bio-based Chemicals (building blocks)

• Bio-based plastics for durable applications

• Bio-degradable bio-based products for waste management, tableware, and bio-mulch for agriculture

• Bio-lubricants

• Bio-composites

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However • Renewable raw materials are still only used

in certain product categories and mostly manufactured in small volumes.

and therefore• Early markets of sufficient scale are needed

to justify investments, bring down unit production costs, generate higher returns on investment, and reduce risks for investors and entrepreneurs.

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The recommendations developed by the Ad-hoc Advisory Group for Bio-based Products in the framework of the

EC’s LMI

• Legislation promoting market development

• Encourage GPP for bio-based products

• Standards, labels and certification

• Financing and funding of research

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The industry’s point of view

• industry estimates an increase for specific market segments if appropriate measures are taken, as proposed in the recommendations for the Lead Market initiative.

The PPIP

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Next steps:

Market experts of the sector (ERRMA) have started a quantitative study.

1. Analysis of current situation (for promising products groups)

2. Analysis of bottlenecks3. Analysis of further R&D needed in the sector 4. Actions to develop a favourable landscape for bio-based

products5. How to pool available resources 6. Forecast of market situation in 10 years (with or without

supporting policy)

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The approach

1. Only product groups which are already commercially available have been considered

2. The use of renewable resources leads to advantages in either technical or environmental performance

3. The growth of the sector is expected to be long-lasting and fully supported by the market.

4. Products whose only added-value is renewability and that do not meet their technical specifications or are not appropriately priced will not establish themselves on the market in the long term.

5. Concentrated on Bio-plastics, Bio-lubricants, Bio-composites and Bio-based building blocks

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Sector EU Market 2010 (t)

EU Market 2020 (t) no policy

EU Market 2020 (t)

with a specific

European policy

Bio-plastics 260,000 769,000 2,555,000

Bio-lubricants 137,000 277,000 420,000

Bio-composites

nd 315,000 830,000

Bio-blocks 1,727,500 6,540,000

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10x growth in 2020 if supportive measures come into force

An example

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In Conclusion.The LMI recommendation must be

adopted urgently

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Biomass availability

• Biomasses for industrial (non energetic) uses must be available in sufficient and guaranteed quality and competitive prices. Policies must support this condition.

• Cooperation between farmers and industry should be strengthened e.g. with specific agreements.

• Crops for industrial uses should be included in direct support schemes for farmers e.g. in the EU and national harmonised rural development plans.

• This would reduce the current disparity between energetic and industrial use of biomasses

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R&D:

• Efforts must be intensified to re-focus R&D and innovation policy on the challenge facing our society in agreement with the Commission's research policy for a "Knowledge- based Bio- Economy" (KBBE)

• In this context it is necessary that applied research must be supported, which will lead to commercialization of bio-based products by learning from demonstration plants and pilot projects.

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Communication

• In order to raise and promote awareness of the benefits of bio-based products, a broad communication initiative is needed to inform involved industries, consumers and the public.

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Standardisation

• Important instruments in this area are standardisation, certification and labelling of bio-based products, which have already started for some bio-based product groups and are to be widened to other promising bio-based product groups.

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Industry’s role

• Industry is ready to collaborate to enhance market demand for sustainable bio-based products, in order to exploit the positive

• environmental (soil, water and emissions), • economic (strengthening international

competitiveness of bio-based products), and • social (in terms of rural development)

characteristics of bio-based products.

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A Public Private cooperation for bio-based products is needed

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Many thanks for your attention

ADEME, ADCV, NNFCC, FNR

European Congress

Plant- based Chemistry for 2020  Paris, 5-7 September 2011