“Currently, there are policy frameworks for food, feed and bioenergy, but not for bio-based chemicals and derived materials. This gap puts the bio-based chemicals and derived materials sector at a disadvantage, and has also an impact on investments in Europe”. Dirk Carrez, executive director of BIC talks to Il Bioeconomista.
Mr Carrez, BIC presented a Study whose title is: “Is there Enough Biomass to Defossilise the Chemicals and Derived Materials Sector by 2050?” What is the answer in a few words?
We see two main challenges to scaling up biomass supply to meet the sector’s needs by 2050. The first one is a reliable and sustainable supply: ensuring biomass is sourced sustainably and consistently. And the second is cost competitiveness: biomass feedstocks in Europe are significantly more expensive than in other regions, combined with the existing incentives and economies of scale for the fossil-based sector. Our study helps address these challenges by providing insights and actionable data for industries and policymakers to develop a strategic roadmap to harness biomass as a renewable carbon source.
The study shows that agricultural and woody biomass can sustainably provide enough biomass to meet at least 20% of the future carbon demands of the chemicals and derived materials industries in 2050, up from 5.5% (EU27) today – and this can be done without compromising food supply. This means that the bio-based industry can support Europe’s transition to a competitive, sustainable and circular chemicals and derived materials sector by 2050, significantly reducing reliance on fossil carbon and enhancing global autonomy and competitiveness. But achieving this transition requires technology, innovation, partnerships and strong policies.
Depending on the region and application requirements, different sources of biomass will be used. However, starches, sugars, and vegetable oils derived from primary agricultural crops are the largest biomass source used today and will remain a critical part of the solution.
Biomass is crucial for the bio-based economy but there is also a need to create a coherent and stable regulatory framework. What do you think are the two main measures that are still missing in Europe in favour of the bioeconomy?
We see the bioeconomy growing from a niche sector into a key driver of industry. While technological challenges to scaling up bio-based production are being addressed via initiatives such as our partnership with the European Commission, the CBE JU, we have to continue de-risking innovative bio-based industrial processes and infrastructure for demonstration and first industrial deployment. There are still a lot of challenges when it comes to financing and regulation.
In addition, we need policy changes and incentives to ensure fair competition between bio-based chemicals, biofuels and other sectors. For a long time, BIC has been advocating for a level playing field. Currently, there are policy frameworks for food, feed and bioenergy, but not for bio-based chemicals and derived materials. This gap puts the bio-based chemicals and derived materials sector at a disadvantage, and has also an impact on investments in Europe.
The EU Commission published the EU Competitiveness Compass and launched the Biotechnology and Biomanufactoring Hub? What do you think about these two initiatives?
In general, we believe that to foster growth and innovation in Europe, it is essential to accelerate the pathway to technology including biotechnology and biomanufacturing at scale.
Biomanufacturing should be embraced in the Biotech Act and other newly-announced legislative initiatives that will shape Europe in the long term, including the Clean Industrial Deal and the EU Bioeconomy Strategy. The new biotech and biomanufacturing hub recently launched by the Commission should also help companies to bring their solutions to the market, to find research infrastructures for their R&D, and to scale up their business.
We welcome that the recently launched Competitiveness Compass, which highlights the potential of the bioeconomy as a new “growth engine”, positioning the EU in rapidly expanding bioeconomy markets, such as bio-based materials, biomanufacturing, biochemicals and agri-biotech sectors. The Competitive Compass also shows promise for Europe’s bioeconomy, with the outline of its approach to simplifying the regulatory environment, favouring speed over complexity and better coordination at the European level. The Biotech Act in turn will provide the framework to incentivise investment and innovation in these areas.
Let’s now turn ambition into action, making biomanufacturing broader than pharma and healthcare. In that sense, the activities of the Hub could be expanded. Biomanufacturing is the conversion of biological resources into chemicals, products and energy whatever the technology, leading to more feedstock autonomy, and to a more sustainable industry.
What are the expectations of the European Bio-based Industries you represent with regard to the new EU Bioeconomy Strategy that will be presented by the end of this year?
We welcome the EU Commission’s focus on strengthening the industrial dimension of the bioeconomy. The next five years will be crucial for advancing the sector, and Commissioner Roswall’s priorities are a positive step toward this goal.
What are our expectations? We hope for a focus on concrete, actionable measures that deliver real impact and drive progress in the bioeconomy. To our opinion, the three key priorities should be: scaling up innovative and sustainable bio-based solutions; ensuring a reliable, affordable supply of sustainably-sourced biomass; and expanding market opportunities for bio-based products.
The EU Commission should adopt a dedicated and robust mandate to implement the vision and commitments outlined in the Communication on Boosting Biotechnology and Biomanufacturing. This mandate should explicitly prioritise biomanufacturing in its legislative agenda and incorporate it into the review of the EU Bioeconomy Strategy.
We also need EU policymakers to create legislation that strengthens the EU’s strategic autonomy by reducing reliance on imported fossil resources. This will support the transition to a fossil-free, sustainable and circular chemicals and derived materials sector by 2050, ultimately boosting Europe’s competitiveness. Replacing fossil raw materials isn’t possible without incorporating biomass as a core part of the solution, alongside recycling and CO₂ capture.
Today the geopolitical scenario is very complicated. As far as you’re concerned, what could be the main consequences of the new American administration on the world action plan to decarbonize and defossilize?
Of course, Europe is not alone in the world. It’s important to look at what is happening in other countries and regions, especially where more progress is taking place. The US, China, India, even the G20, have been taking actions to advance and support the bioeconomy. For the past few years, we’ve been talking a lot about President Biden’s Executive Order for a US Biotechnology and Biomanufacturing Initiative in 2022. This was coupled with a budget, the Inflation Reduction Act and concrete actions and targets. In Europe, we published an excellent Biotech & Biomanufacturing Initiative, but it was lacking a budget and concrete actions, as implementation was foreseen by the new current Commission.
But the geopolitical situation has changed drastically in the last few months. In the US, there is now a new President who says “Drill baby, drill!”, who speaks about increasing fossil fuel production and use, and who thinks climate change is a hoax.
In Europe, we should use this as an opportunity! We’re happy to see Commissioner for Environment Jessika Roswall saying she’s “committed to staying the course” of the Green Deal. Europe can resume its position as a leader in the bioeconomy. We can invest in an innovative, competitive and sustainable industry. We can become less dependent on imports of gas and fossil fuel. We can even attract companies and investments from outside of Europe – including the USA. Let’s go for it!
Featured by
Author
Mario Bonaccorso
Source
Supplier
Biobased Industries Consortium (BIC)
Circular Bio-based Europe Joint Undertaking (CBE JU)
European Commission
European Union
US Government
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