Emerging Technologies for Eco-InnovationOpportunities and Risks, Budapest ,16th of October 2008

Armand KleinDirector DuPont Applied BioSciences EMEA

Focus on Lead Markets :Bio-Based Products

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Henry Ford’s soy bean car

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• Detergents

• Textiles

• Fuels

• Cosmetics

• Beer and Bread

• Pulp and Paper

• Vitamines

• Plastics

• Etc.

Bio-based products in our daily lives

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Sales of bio-based chemicals (in billion EUR)

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4

3

2

1

0

Texti

lesPu

lp &

Pape

rDete

rgents Food Fuel

Enzy

mesTO

TAL

Biotechnological process

Labour productivity*

+100

+50

0

-50

-100

Texti

lesPu

lp &

Pape

rDete

rgents Fu

el

Reduction of emissions to water and air (CO2)

Change of resource use and emission in %

Economical and good for the environment

Conventional process Process consumption of chemicals and other

Energy use

Source : study "Biotech for EU" study, JRC, EC 2007

*GVA share/employment share

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The Biomass Value Chain

Advantages:

• Sustainable

• Low temperature / low pressure operations

• Economical Lower costs New revenue

opportunities

• Significant technological headroom

Biomass

Refining

“Chemical” Intermediates

Energy (biofuels…)

Chemicals (pigments, solvents, lubricants…)

Materials(polymers, composites…)

Co-Products

• DDGS

• CO2

• Gluten

• Others

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Sustainability…… of biomass

• Environmental criteria – GHG balance, land use

• Social criteria

• Continuity, consistency, reliability and cost-efficiency of supply

… of process performance

• Lower energy consumption

• Lower GHG emissions

… of products performance

• Less hazardous

• Lower processing temperatures

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An industrial scale proof point Bio-PDO™ process

Start-up November 2006 Capacity 45’000 Tons

consumes 40 % less energy and produces 56% less greenhouse gas emissions

than the chemical PDO process it replaces

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• Potentially abundant biomass availability Potentially abundant biomass availability • Drive improvements along the value chainsDrive improvements along the value chains• Strong industrial biotechnology and R&D and technologyStrong industrial biotechnology and R&D and technology• Combined economic and environmental benefitsCombined economic and environmental benefits• Compliance with environmental legislationCompliance with environmental legislation• Social acceptanceSocial acceptance• Supportive regulatory frameworkSupportive regulatory framework• Strong regional context of investmentsStrong regional context of investments• Must deliver “performance+”Must deliver “performance+”

Drivers for bio-based products in Europe

Source: Author, The introduction of process-integrated biocatalysts in companies, IPTS, Sevilla 2000

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• Oil price dependencyOil price dependency• Reduce cost of manufacturingReduce cost of manufacturing• Flexibility in feedstock and product outputFlexibility in feedstock and product output• R&D intensiveR&D intensive• Prohibitive investments for SMEsProhibitive investments for SMEs

• Lack of awarenessLack of awareness• Lack of skilled work force (in particular in user Lack of skilled work force (in particular in user

sectors)sectors)• Unclear perception of costs/benefitsUnclear perception of costs/benefits• Cost and risk of application developmentCost and risk of application development

Barriers for bio-based products in Europe

Source: Author, The introduction of process-integrated biocatalysts in companies, IPTS, Sevilla 2000

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Policy measures to stimulate uptake and demand for bio-based products:

1. Legislation: ensure a coherent, comprehensive and coordinated development of policies and regulations that impact the development of bio-based product markets

2. Public procurement: encourage Green Public Procurement for bio-based products

3. Standardisation/Labelling: Establish standards and labels for specific bio-based products

4. Finance: support access to finance for R&D&I; promote the establishment of biorefinery pilot plants and demonstrators involving all actors and investments at EU, national and regional level.

5. Communication: conduct an information campaign, communication of policies regarding bio-based products as well as the benefits of these products

EU’s Lead Market Initiative for Bio-based Products

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EU KBBE

A “coherent” European policy agenda

DG Agriculture

DG Industry

DG Research

DG Sanco

DG Environment

DG Energy and Transport

DG …

SusChem – IB TP

ETAP

European Strategy for LS and Biotechnology

EU strategy for Biofuels

Biofuels Directives

GM food/feed regulationFood enzyme legislation

Financing IB SMEs

EU ClimateChange Policy

Biomass Action Plan

Biofuels TP

ERA-Net

FP7

Reform sugar regime

CAP

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