Competition Announcement

International Biorefinery Competition

Opening date: 4.6.2014

Closing date: 4.12.2014

32

Background and objectivesThe aim of Finland’s national bioeconomy strategy is to generate economic growth and new jobs from an increase in the bioeconomy business and from high added value products and services while secur-ing the operating conditions for our natural ecosystem.

A strategy for expediting the growth areas of Finnish economy , which include bioeconomy, has been outlined in a Governmentdecision-in-principle. As part of this strategy, the Government is organising an open international competition in order to stimulate the development of concepts for a new biorefinery and expedite new investments.

Biorefineries capable of efficiently processing biomass in a versatile fashion, producing materials, chem-ical products, and energy play a central role in the creation of new bioeconomy business. They help in the speeding up of industrial renewal, the commercialisation of new products, the utilisation of waste and by-products, and in reducing our reliance on imported energy.

Biorefineries contain technological, product and business innovations, the commercialisation of which the current competition is intended to expedite.

The goal of the competition is to catalyze different kinds of commercially viable biorefinery investments in the near future in Finland.

Entries are sought for biorefineries that will commercialise or demonstrate new innovations on an indus-trial scale. The intended raw materials for the biorefinery may be various domestic biomasses, industrial by-products or waste materials.

Scope of ApplicationThe proposed biorefinery is to be located in Finland and represent the next generation of biorefinery processes with the following specifications:

The biorefinery is to be located somewhere in Finland and utilizes domestic biomasses. Commercial scale biorefineries are excpected to include technology that has not yet been in commercial use

z The commercial scale biorefinery is to employ technology that is not yet available on the market z The biorefinery may also function as a demonstration plant capable of demonstrating a technology

or product with significant commercial potential z No investment decision exists of the proposal nor has it received any public investment support z The proposal is eligible for public funding

The purpose of the competition is lead into detailed planning and eventual investment taking place in Finland, for which the allocation of public funding is being sought. There will nevertheless be a strong need for corporate investment.

Entry RequirementsParticipation is open to domestic and international companies and company led consortia including e.g. research parties and investors. The entry requirements and restrictions are outlined in more detail in the competition rules.

ScheduleOpening date: 4 June 2014.

Entries must be submitted in writing to the Finnish Ministry of Employment and the Economy by 4 pm EET on 4 December 2014 to the following address:

Ministry of Employment and the EconomyRegistryP.O. Box 32FI-00023 GOVERNMENT, FINLANDIndicated on the envelope: Biorefinery Competition

In addition to the written entry, the entrant must also deliver all entry materials on a memory stick or an alternative form of electronic storage.

Terms and Conditions of the Competition EntryParticipants in the competition must deliver their proposal in English to the Ministry of Employment and the Economy by the stated deadline. The proposed project outlined in the competition entry must comply with the requirements stated in the section Scope of Application.

The entry must include a general description of the proposed biorefinery and at least the following information:

1. Business/Project Plana. Project Description

i. Products/Services, ii. Raw Materials, iii. Technology and its novelty/innovation, iv. Location,v. Logistics, b. Market Analysisi. Target Marketsii. Competitors, market share, and market role

c. Business backgroundi. Project organisation/groupii. Expertiseiii. Risk-bearing capacity (e.g. economic conditions)d. Economic and other impacts on Finlandi. Environmental impactii. Labour force impact (during the construction period, new jobs)iii. Degree of domestic investmentiv. Impact on imports/exports

2. Implementation schedulea. Investment scheduleb. Permit processes

i. Need for permitsii. Timetableiii. Land use planningc. SWOT and/or risk analysis

3. Fundinga. Funding bodies

i. Ration of own capital investment and outside capitalii. Current negotiationsb. Need for public funding

4. Economy calculationa. List of estimated costsb. Profitability estimates (e.g. cash flow projection)

54

Existing funding from investors will be considered favourably in the evaluation of entries. External back-ers can also be sought after the competition’s closing date.

Entries that arrive by the due date but do not fulfil the aforementioned specifications will be automati-cally rejected from the competition.

PrizesA group representing public funding bodies will be put together to assist the three best competition entries selected for further consideration. The group will coordinate and assist the entries during the investment stage, providing help with identifying, applying for, and utilising public funds. In addition to domestic public funding, EU funding will also be sought during the investment stage. Each member of the funding group will make its own decision regarding possible funding on the basis of its own eligibil-ity criteria and decision-making procedures.

The winning entrant will receive a prize of 100 000 euros. The judging panel may award honourable mentions to deserving entries that fall short of winning a prize.

Evaluation of competition entriesEntries will be evaluated by an international panel of experts set up specifically for this competition by the Ministry of Employment and the Economy. The panel’s areas of expertise span areas of business, process development, biorefinery technologies, and investment expertise, and the members have strong connections in the relevant sectors.

Entries will be evaluated using the following criteria:

Eligibility for Investment (weighting factor 50%), including e.g. z Funding bodies (own financing confirmed, other private financing confirmed) z The need for public funding in relation to other financing (the lower, the better) z Market outlook (market size and growth)

Innovativeness (weighting factor 25 %), including e.g. z Technological innovation z Innovativeness of raw materials z New product innovations z Business innovations

Impacts on the domestic economy (weighting factor 25 %), including e.g. z The impact on employment during the investment stage z Degree of domestic investment z The impact on employment during the implementation stage z Impact on exports (export increase) z Impact on the reliance on imports (import decrease)

The competition entries will be scored using the following scale:

0 points – does not meet the criteria2 points – poor5 points – average8 points – good10 points – excellent

Each evaluation category will be separately assessed, with a minimum requirement of 5 points in each category. If necessary, the panel may request more information from the entrants in order to address any confusion or missing information.

The panel will announce its decision regarding the prize-winning entries no later than two (2) months from the competition closing date.

The Minister of Employment and the Economy will select the winning entry from those put forward by the judging panel and the winner will then be announced.

Publication and display of the competition entries and resultsAll of the entries will be handled in complete confidence. A tag line and brief summary, prepared by the party/corporate entity entrant itself, will be published for all of the winning entrants.

The competition results will be published by the Ministry of Employment and the Economy in a press release, any potential award ceremony or equivalent event, and on its own website.

Competition rulesThe rules of the competition are available in full from www.tem.fi

Contact personsEnquiries about the competition should be directed to Development Manager Jussi Manninen (+358 40 535 5947, jussi.manninen@tem.fi) and Strategic Director Sixten Sunabacka (+358 400 366 148, sixten.sunabacka@tem.fi)