If raw land is Netherlands surprisingly well positioned to provide sugars and derivatives. Global fermentation industry emerges this from a study presented today by Deloitte to the competitiveness of Northwest European crops such as sugar beet as raw material for fermentation-based chemical industry.<\/p>\n
“The study shows for the first time a robust foundation for the strong position of the Netherlands and Northwest Europe as raw land for the chemical industry. The global market for fermentation products is approximately $ 127 billion (of which $ 110 billion for ethanol) and growing faster than GDP. Through horizontal and vertical integration in the supply chain even more gains can even be achieved than in the study is indicated. It is an interesting market to invest for companies, “in the Netherlands said Willem Vaessen, director of Chemical Value Chain at Deloitte and research leader of the report. According to Ton Runneboom, president of the Business Platform Biorenewables commodity potential to attract potential investment value of EUR 5 to 10 billion.<\/p>\n
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The Deloitte report “Opportunities for the fermentation-based chemical industry. An analysis of the market potential and competitive ness of North-West Europe” was initiated by the Biorenewables Business Platform (GDP), and examines co-commissioned by Rabobank and Sugar Union, competition position of Northwest European crops such as sugar beet compared to eg tapioca from Thailand, corn from the United States and sugarcane in Brazil as feedstock for fermentation-based chemical industry. According to Jan van Nieuwenhuizen, Member of the Supervisory Board of Rabobank, underpins the study the opportunities of biomaterials for both agriculture and the chemical industry: “Especially Netherlands is well positioned from agriculture, chemicals and logistics. From the global agrochemical chain lie here new opportunities for business. ”<\/p>\n
The number of applications of biobased materials and technology grows. An increasing number of chemical products, such as citric and lactic acid, ethanol, vitamins and antibiotics, can be produced. By means of fermentation In 2017, the production quotas for sugar and isoglucose in Europe will disappear, leaving a free market and creates significantly more sugar will be produced. It is expected that sugar production in the Netherlands will grow strong; Northwest Europe (including the Netherlands) can spend 2-4 million tonnes of sugar onto the market. The attractive commodity position is due to the favorable climate, the efficiency achieved in the cultivation and processing of sugar beet and the ability to ensure security of supply through long-term contracts. “It’s great to see that there is a competing commodity position of private land for the emerging fermentation industry in Europe. Located in the same region as the integrated ARRRA chemical cluster, it would be the catalyst for the transition to a new situation and growth and encourage synergies. It can be a source of inspiration and innovation in the cluster, and also to contribute to the survival and development of the cluster, “a substantial contribution says Ton Runneboom.<\/p>\n
The study sees great potential for the fermentation-based chemical industry and the Netherlands has a strong competitive as raw land. This offers opportunities for both the agricultural and the chemical sector and stimulate economic growth and jobs in these sectors.<\/p>\n
Until now, there was limited understanding of the competitiveness of raw materials from Western Europe, particularly sugar beet against alternatives such as sugar cane from Brazil, dextrose from the USA and tapioca from South-East Asia. This study offers this insight for biobased raw materials NW-EU (especially sugar) for fermentation-based chemical industry. It includes a supply \/ demand balance of bio-based products and raw materials. Also, the study assesses the current and future availability and price of key raw materials. Different fermentation processing options are discussed and finally, taking into account the main uncertainties and sensitivities, the competitiveness of NW Europe, and specifically in the Netherlands determined ARRRA cluster.<\/p>\n
The study was presented at the “Agri meets Chemicals” conference on 29 September in Utrecht. Several executives include DSM, Solazyme and the Ministry of Economic Affairs have given their reaction to the findings of the report.<\/p>\n