Climate-KIC

Status of bioeconomy in Hungary:general introduction and insight into Climate-KIC activities

Miklós Gyalai-Korpos, PhDBratislava, 27 March 2015

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Climate-KIC

About Climate-KIC

Climate-KIC is Europe’s largest public-private partne rship addressing climate change

Vision : providing the people, products and leadership to address the challenge of global climate change

Mission : creating opportunities for innovators to address climate change and shape the world’s next economy.

A community of more than 250 partners with a toolkit for promoting innovation, education and entrepreneurship :� An innovation pipeline: sheltered innovation� Partners on each corner of the knowledge pyramind:

Innovation push with demand pull� Mobility programs/PhD/MSc courses� Start-ups incubation

Climate-KIC

About Climate-KIC

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Bioeconomy potentialin Central Europe

Resources

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Biomass potential

Agricultural residues

Monforti et al. (2013) : available amountof straws of eight crops is 6.3 milliontonnes (2000-2009 basis) for Hungary.46% of produced residues was foundsustainably collectable of which 96% isavailable considering competing uses.

Other sources indicate even more up to9.5 million tonnes annually on dryweight basis.

Monforti, F.; Bodis, K.; Scarlat, N. & Dallemand, J-F. (2013) The possible contribution of agricultural crop residues to renewableenergy targets in Europe: A spatially explicit study, Renewableand Sustainable Energy Reviews, 19:666-677

Forestry potentialMarginal areas for energy crops

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Biomass potential

Gyalai-Korpos, M., Barta, Z., Sipos, B., Réczey, K. (2008) Lookingfor feedstock - bioethanol potential in Hungary. 16th European Biomass Conference and Exhibition, valencia

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Landscape analysis

Climate-KIC: The future landscapes of Bioeconomy: HungaryAims of the study were:� to deliver general overview on the

bioeconomy� to introduce the relevant Hungarian

stakeholders� to map the potentials for further

collaboration with special regards to Climate KIC projects

� to provide on-hand experiences of stakeholders on the barriers and potential

Methodology: extensive literature/web search and online interviews

Study is available at: http://klimainnovacio.hu/en/biorefineryschool/sectorial-study

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Landscape analysis

What are the main opportunities for Hungary to become competitive in the European bioeconomy?

Study is available at: http://klimainnovacio.hu/en/biorefineryschool/sectorial-study

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Danube Region Biomass Action Plan

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� Approval by the PA 2 Steering Group in December 2012;

� Work started in January 2013;

� Joint Declaration on biomass sustainability in June 2013:

„…New EU-wide obligatory sustainability criteria would unavoidablycreate additional administration and costs especially for the EUproducers, without any additional benefit for the environment, thuscreating market distortion and disadvantage in competition for theproducers of the Member States…”

� The study was finalised in February 2014: http://danubebiomass.eu/documents/Danube_Region_Biomass_Action_Plan_03191001.pdf

� PA2 was invited to present the results of DRBAP:

� March 2014, Timisoara - 4motors conference;

� May 2014, Trieste - Danube Inco.NET meeting;

� June 2014, Vienna – JRC Scientific Support to the DR conference;

� November 2014, Vienna – 4th Danube Region Business Forum;

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DANUBIOM Proposal

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� Biomass workshop was organised with nearly 30 institutions from 7 DRS countries at November 2014 in Budapest;

� The project concept is now finalised & the project consortium was formed with 15 project partners, the lead partner is Szent IstvánUniversity.

� The concrete outputs of the project:

� Establishing a bioenergy statistical data base;

� Creating a sustainability assessment tool;

� Characterising sustainable value chains;

� Demonstrating ready-to-use biomass based alternatives on demonstration sites;

� Providing up-to-date planning practices;

� Policy analysis and proposal for an adequate bioenergy policy amendment;

� Technology development for standardised feed-stock production, and innovations for improving environmental performance and energy efficiency.

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3rd European Biorefining Training School

The concept of the school has been developed and trademarked by three world class research institutes: National University of Athens of Greece,

Wageningen University Research of the Netherlands and INRA of France.Hungarian organizer was PANNON Pro Innovations Ltd.

History so far:• 1st in 2011, France• 2nd in 2012, The Netherlands

2014: First time under the Climate-KIC umbrella7-10 July, 2014 in Budapest, Hungary

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How to develop this potential?

Interventions needed

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Industrial experience

Dario Giordano, BioChemtex

Giordano G. (2014) Innovative approach to the Green Chemistry: Biomass based Solution. 3rd European Biorefining Trainins School, Budapest

Climate-KIC

How to transform an entire supply chain? Or create a new?System level challenge, many stakeholders, interdependent relations,

competing interests…what else?

General framework: Political, Economic, Socio-Cultural and Technological factors

(PEST analysis)

Land use

• Is there

really

extra

land?

• Food vs.

fuel?

• Economy

of sust

practices?

Biomass

• Is there a

will from

farmers?

• How to

motivate

them?

• Case of

by-

products?

Logistics

• Scale?

• Storage?

All year

supply?

• Stable

and

longterm

prices?

Conversion

• Are the

tech

options

ready?

• How to

use

existing

infrastruc

tures?

Market

• Who is

willing to

pay and

for what?

• What are

the

niches?

The challenge

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Increase access to pilot facilities for Start-up’s/SME’s

Boost engagement with policy makers

Develop regional networks or clusters

Further academia to business collaboration

Promote demonstration of technologies and products

Build investor confidence in the bioeconomy

Stimulate industrial symbiosis - sharing of resources

Raise public awareness of bio-based products

Build stakeholder consensus on how best to develop bioeconomy

Create conditions for niche markets

Interventions

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Climate-KIC Biohorizons: „Horizon Scanning the Bioeconomy”

Interventions to best support Bioeconomy transition?

� What is the current condition of innovation within the bioeconomy?� What are the key factors influencing success/failure?� What are the strengths and weaknesses? � What are regional differences?� Are there exemplars of best practice?� Where will business innovation have the greatest impact on climate change

mitigation/adaptation and economic growth?

Partners from the UK, France, Spain, Germany, Italy and Hungary – main focus on thesecountries.

Tool: Maximum difference scaling (MaxDiff) where survey respondents are shown a set ofthe possible items and are asked to indicate the best and worst items.

Between May – November 2014, Biohorizons survey was viewed over 1130 timesworldwide and received nearly 500 credible responses . A good stakeholder balancewas achieved: both academic and policy 28%, businesses 45%.

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Results of the survey

Filter results by country, sector and TIS category.

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Most important interventions:Hungarian vs. all answers

Delta

1,91

0,85

1,92

1,65

1,17

1,53

2,47

1,12

0,61

0,05

2,04

0,65

0,60

1,40

0,20

1,60

0,50

0,34

0,04

1,22

0,50

1,19

2,04

1,24

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Comparision of sectors

Interventions identified as most important to Hungary Bioeconomy Stakeholders

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Landscape analysis

What are the main barriers for Hungary to become competitive in the European bioeconomy?

Study is available at: http://klimainnovacio.hu/en/biorefineryschool/sectorial-study

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For bigger diagrams use a blank page

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Landscape analysis

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Example 1

Organica Water

� global provider of innovative solutions for the treatment and recycling of wastewater

� Organica Food Chain Reactor (FCR) utilizes a fixed-bed biofilm growing on both natural and engineered root structures, all in a fully-enclosed, odourless, greenhouse facility

� results: reduced physical and zero “psychological” footprint, lower operational and infrastructure costs

www.organicawater.com

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Example 2

Climate-KICMicroalgae Biorefinery 2.0

Partners from the Netherlands, France, Spain and Hungary – both supply and demand side of innovation.Industrial partner Budapest Sewage Works Pte Ltd. – giving place to piloting the solution.Aim: market algae-based product lines and create a technology case for WWTPs in order to: � remove nutrients,� enhance biogas yields, � reduce GHG emission,� build green imageTransition to bioeconomy by integrating intoexisting value chain (B2B) and turning the excess amount of biomass into value added compounds.

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Conclusions

Interventions needed to develop bioeconomy

� Access to financing: large pot of money is needed for significant infrastructureinvestments but focus also on developing business models to leverage more funding

� Local knowledge: establish new supply chains and negotiate with farmers to securefeedstock supply for long term operation and/or practice industrial symbiosisapproaches to integrate into existing industries (B2B)

� Link to agriculture: price, quality (purity, size, water content…), long-term and stable(all-year round) supply of feedstock plus features of logistics (distance, scale, storage)

� Industry involvement: B2B cooperation in order to learn the market for bio-basedproducts, overcome knowledge gaps and create supply chains

� Policy framework: provide vision and realize societal benefits

Dynamics along the supply chain needs to be underst ood – impact on both up and downstream, and on other chains

Tools to evaluate options and convey to stakeholder s for win-win situations: by means of legal framework (for example CAP) and tech nology/feedstock

Climate-KIC

Miklós Gyalai-Korpos, PhDmiklos.gyalai@ppis.hu

Climate-KIC Central Hungary RICPANNON Pro Innovations Ltd.

www.climate-kic.orgwww.klimainnovacio.hu

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Biohorizons: Interventions identified as

most important to Hungary Stakeholders

(n32)

Business Academia Policy