VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD We're Not So Different You and I: Comparing Bioeconomies in Finland and Canada Jussi Manninen, VTT 2017 Atlantic Biorefinery Conference
VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD
We're Not So Different You and I: Comparing Bioeconomies in Finland and Canada
Jussi Manninen, VTT2017 Atlantic Biorefinery Conference
My Presentation
• Bioeconomy in Finland: some comparison to Atlantic Canada
• Finnish Bioeconomy Strategy and the first steps of implementation
• Change of Government: the new set of priorities and actions
• Lessons learned and where next?
Two Sparsely Populated, Forest Covered Regions
Atlantic Canada- 500 531 km2- Pop. 2.3 mill
Finland- 338 423 km2- Pop. 5.5 mill
Bioeconomy’s Significance for Finland
Turnover€64bn
Share of employment
11%
Share of exports
26%
Finland seeks to increase its bioeconomyoutput to 100 B€ euros by 2025 and to create 100,000 new jobs in the process.
Bioeconomy combines wood processing, chemistry, energy, construction, technology, food and health.
Forest based bioeconomyaccounts for 2/3 of the turnover
The Output of the Finnish Bioeconomy
• The total annual turnover is about 64B€• More than half of the bioeconomy is forest based
Forest41%
Energy7%
Construction15%
Food26%
Chemicals3%
Pharmaceutics2%
Water1%
Services5%
ForestEnergyConstructionFoodChemicalsPharmaceuticsWaterServices
Wood Use in Finland
Value Added and Impact from Bioeconomy
• Multiple use by a market driven approach provides most added valueand the greatest impact
Valu
e/un
it
Total raw material/market potential
New bioproducts and services
Innovative traditional products
Biofuels/Bio oil
Traditional fiber products
Traditional wood products
Heat and power
New bioproducts
€/unit * units= total value
Maximum:
High valueCascade use
High valueMultiple use
Low valueExtensive use
The Process Towards the Strategy
• Strategy drafted in a project set up by the Ministry of Employment and the Economy
• Process started in Autumn of 2012 • Strategy published in May 2014
9
Participants and Stakeholders Consulted
Participants in this project:• Prime Minister’s Office • Ministry of Agriculture and Forestry • Ministry of the Environment, • Ministry of Education and Culture • Ministry of Social Affairs and Health• Ministry of Finance • Administrative branches under these
Ministries• VTT Technical Research Centre of
Finland • Finnish Innovation Fund Sitra
Stakeholder input to strategy preparation:• 5 workshops, 3 regional
bioeconomy forums and sectorial consultations
• All those interested were invited to express their views @ Otakantaa.fi survey and Biotalous.fi website
Finland’s Bioeconomy Strategy
1. COMPETITIVE ENVIRONMENT FOR BIOECONOMY
2. NEW BUSINESS FROM BIOECONOMY
3. STRONG KNOW-HOW BASE FOR BIOECONOMY
4. USABILITY AND SUSTAINABILITY OF BIOMASSSt
rate
gic
goal
s
Impl
emen
tatio
nan
d m
onito
ring
Sustainablebioeconomysolutions arethe basis of Finland’s
welfare and competitiveness
.
Implemented Actions 2014 –2015
Focus areas: Investments, regulation and export
1. Boosting investments – An International BiorefineryCompetition
2. Finnish bioeconomy priorities for the EU defined3. A regulatory survey on ”Bioeconomy bottle necks and
boosters”4. Biomass Atlas combining public data on biomass resources5. Promotion of exports of biobased products and
technologies6. A communication and media action plan7. Tools for promotion and a public discussion
International Biorefinery Competition
• First of its kind globally• Entries represented investments
of 1.5 Bۥ Winners
• Spinnova – fibre yarn• Biovakka Suomi – transportation
fuels and nutrients• Kemijärvi consortium – new pulp
products and chemicals
Biomass Atlas: The new web service provides open access to Finnish biomass data• Amount and location of biomasses and land use: woodchips,
field use and manure amount in agriculture, bio-waste from municipalities and industry
• Apr. 200 fractions / layers• Thematic background maps for evaluation the use of
biomass• 1 km grid data help to make effective queries• Tools to update the data
• Data and knowledge to support investments, planning, energy and environmental policy
• Open map user interface, analysis tools and reporting• Further development will include interfaces to data transfer and
modeling and English translation • www.biomassa-atlas.fi service opens at 6/2017
How much raw material I can
find in my neighborhood?
Where are the fields to take
the digestate?For more information: Eeva Lehtonen, Luke, +358 295 326 317
First Outcomes From the Strategy
• A strong national will to develop the bioeconomy• Effective co-operation model between ministries and
stakeholders• A positive outlook for the future which can be seen in
increase of investments• Increased interest from non-forest industries to utilise
biomass• Public investments into the bioeconomy and
infrastructure• Increased public acceptance for use of biomass
Forest, energy, chemical and material industries are integrating into new
industrial ecosystems
UPM Metsä Group Fortum
Bioeconomy and Clean Solutions:Key Objectives of the Government Strategic
Action PlanBioeconomy and clean solutions is one of the five strategic priorities.
Themes:• Cost-efficient carbon-free, clean and renewable energy• Wood on the move from forests and new bio-based products• Circular economy and implementation of clean technologies• Profitable food production and blue bioeconomy• Fair nature policy
Funding 300 M€ for the government term (2016 – 2018)
Selected Actions from the Government Action Plan
• Energy and climate strategy for 2030 and support measures to increase share of renewables in energy production and in traffic
• Increasing supply of wood and promoting investments in the forest sector, bioeconomy and clean solutions
• Accelerating new innovations in bioeconomy and circular economy by piloting and demonstration using national and European financing
• Improving the financial position of growth SMEs through financing instruments
• Reducing administrative burden
Regional Policies Supporting Bioeconomy 2016 - 2019
• Promotion of new technologies in production of biofuels• Circular economy and bioeconomy investments and wood
construction will be promoted • New products, services and business models will be
developed for circular economy, bioeconomy and cleantech
Regional policies supporting Bioeconomy2016 - 2019
• Circular economy and bioeconomy will be promoted by growth agreements between the central government and towns
• The deployment of new innovations will be speeded up by means of experimental projects and innovative public procurements
• The use of local foods and the development of regional and local food systems that contribute to supporting the vitality of the regions will be promoted.
Regional Policies Supporting Bioeconomy 2016 - 2019
• The Regional Councils will take the sustainable use of renewable natural resources into account in their regional planning activities.
• The ministries and Regional Councils will support the concentration of expertise to centres of competence formed by research institutes, higher education institutions and working and business life actors
Public Procurement: Market Making Tool
Focus On New Markets and Networks• Finland has strong expertise in bio-based raw materials and their
utilisation. • A new opportunity lies on the higher value-added products and their
markets.
Going internationalStart-up Growth
Financing
1 M€
5 M€
10 M€
Lainat investointiin tai käyttöpääomaan
LainatR&D grants and loansEquity
Direct investments
Direct investments
Exp
ortg
uara
ntee
s
Inve
stm
ents
in n
ew
ener
gyte
chno
logy
Available National Instruments in Finland to Support Companies
Investment loans
Lessons Learned• Bioeconomy transcends industrial and administrative boundaries
• Requires a truly multi-lateral/-party approach• Bioeconomy is a lot about industrial and energy policy• One needs to have a proper price for carbon to get things really
started, current EU price for CO2 is not high enough• Market making mechanisms are crucial
• Good benchmarks are US BioPreferred program & biofuel mandates
• Standardisation is needed • Technology de-risking with piloting and investment grants for
investments into new technology and products• The role of bioenergy and forests in general in climate change
mitigation divides scientists and is subject to aggressive ”lobbying”
20502030
Textiles and hygieneproducts
15
10
5
Glues, chemicals
Wood and paperproducts
Reinforcers
Plastic replacement
We Need to Continue Innovating to Reap the Benefits from the Bioeconomy
Where Next?OECD Views on Innovation Policy