This presentation was given at a Scottish Industrial Biotechnology Working Group meeting on the 28th April 2015. It reviews the UK Government policy paper con Building a high value Bioeconomy, Opportunities from waste

1. UK Policy overview
Building a high value bioeconomy
OPPORTUNITIES FROM WASTE
Adrian Higson, NNFCC
Prepared for the Scottish Industrial Biotechnology Working Group
28th April 2015

2. Copyright © NNFCC 2015.
Purpose
• The paper is intended to act as a launch pad for
the new administration.
• It provides;
– A statement of opportunity,
– A presentation of the areas critical for sector
development,
– The current landscape,
– Ongoing and near term planned actions.

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http://www.parliament.uk/documents/lords-committees/science-technology/wasteandbioeconomy/Waste-Bioeconomy-Govt-Response.pdf
http://webarchive.nationalarchives.gov.uk/20090609003228/http://www.berr.gov.uk/files/file51144.pdf
http://webarchive.nationalarchives.gov.uk/20090609003228/http://www.berr.gov.uk/files/file51891.pdf
http://www.publications.parliament.uk/pa/ld201314/ldselect/ldsctech/141/141.pdf
Background

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Political Perspective
• Context
– Advanced Manufacturing, Circular Economy, Climate Change.
• Aims
– Sustainable economic growth.
– Protect and improve the environment and reduce GHG emissions.
• Objectives
– Development of a coordinated approach across Government and Industry.
– Support business led activity.
• Cross UK Government policy championed through a joint-Ministerial role;
– Minister of State for Business, Enterprise and Energy
– Parliamentary Under Secretary of State for Water, Forestry, Rural Affairs and Resource
Management

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Political Vision
• A growing UK bioeconomy.
• Operating waste fed commercial UK plants.
• Focussed entrepreneurial effort maximising scientific and economic potential,
– Delivering environmental benefits.
• Stimulating inward investment.
• UK as a global leader in the waste based bioeconomy
• Supporting advanced manufacturing.
• UK as an exporter of process technology and business models.

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Political Mission
• To work with business to stimulate circular economy.
• Promote the use of sustainable carbon waste (in alignment to the bioenergy
strategy).
• Support underpinning research, development and innovation;
– Includes demonstration,
– Includes skills development.
• Support business to lead sector development (right policy, right incentives).
• Ensure coordinated actions.

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Scope
• Definition: ‘bioeconomy’ the part of the economy using biological resources
(biomass), or bioprocesses, for the production of value added products, such as
food, feed, materials, fuels, chemicals, bio-based products and bioenergy.
• Feedstock not produced as products,
– Harvest residues, process by-products, wastes.
• Includes the biotechnological processing of non biogenic feedstock.
• Note the report does not use the term ‘waste’ in its legal context.

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Economic Potential
• European bioeconomy,
– Turnover €2 trillion, Employment 22 million.
• UK Industrial biotechnology,
– Turnover CAGR 11%, Employment CAGR 5% (2009-2013).
• Large investment opportunity in waste treatment, £5bn by 2020.
• Opportunities in the global advanced biofuels and bio-based chemicals market.
• Current activity
– Commissioned analysis of the ‘Economic impact of Industrial Biotechnology
in the UK’.

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Legislative context
• Recognised as a complex landscape;
– Waste regulation (devolved) and renewable energy policy,
– Food first principle (for agricultural land), use of residues and wastes considered
in line with sustainability objectives.
• Restatement of general objectives;
– Continued move to a circular economy and follow waste hierarchy,
– Reduce GHG emissions and other atmospheric pollutants,
– Protect environment through use of Best Available Technologies,
– Promote the use of sustainable low carbon fuels,
– Maximise overall benefits and minimise overall costs.

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Legislative challenges
• EU policy uncertainty around circular economy.
• Reconciling regulations with guidelines with rapid technology development.
• Understanding if/how incentives drive or distort technology development and
deployment.
• Action
– Regular reviews of incentive schemes to avoid unintentional distortion of
markets.

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Innovation System
• RCUK with Innovate UK best placed to take forward the
research agenda.
• Focus on Key Enabling Technologies,
– Not limited or steered by UK raw materials.
• Need for skills provision to keep pace sector growth.
• Action
– Cogent commissioned review of skills training,
demand and gaps in provision.

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Innovation System
• Key areas,
– Partnerships, pilot and demonstration
plants, Finance.
• Extensive networking through KTN and NIBB.
• Significant IB funding through the IB Catalyst.
• Action
– IB Catalyst portfolio will be monitored
for effectiveness in supporting sector
development.

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Innovation System
• Recognised need of accessible Pilot plants.
• Green Investment Bank focus of waste recycling.
• Actions
– Commissioned study into availability and
status of IB processing plants and
equipment.
– GIB detailed exploration of investment
opportunities in recycling and
reprocessing market.

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• Build advanced manufacturing capability.
• Better understand investment drivers.
• Action
– Continue to engage industry to
understand inward investment decisions
– Potential for waste and the bioeconomy as
part of Government ‘2020 Export Drive’.
Export & Inward Investment

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Benchmarking, Sustainability and Data
• Identifying and adopting international best practice.
• A recognition of the need for separated, clean and consistent feedstock.
• The need for data on available feedstock.
• Actions
– IEEP have been commissioned to review the international landscape and
provide policy recommendations.
– Work to encourage and improve the uptake of Edoc. Review how it can be
used and if alternative approaches are required
– Gather data on feedstock availability (outside of Edoc).

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Conclusion
• The report represents a starting point, the economic potential is not in question
• Government has a role;
– Supporting mechanisms for legislation navigation,
– Provision of incentives with minimal market distortion,
– Maintain research base and ensure skills evolve,
– Provide funding, finance and supporting infrastructure,
– Create strong innovation ecosystem,
– Provide data on feedstock supply,
• Commitment of Government to work with partners on long term objectives.