“We need to grow the bio-based sector. Especially, if you look at the challenges the world is facing. That means, not just research and innovation, but actually scaling-up the production of our new bio-based products and processes in Europe. For that, we need more investment in new biorefineries in Europe.” Dirk Carrez, CEO of BIC (Biobased Industries Consortium), a non-profit organisation set up in Brussels in 2013 to represent the private sector in a Public-Private Partnership (PPP) with the European Commission, talks to Il Bioeconomista about present and future of the European bioeconomy.
Interview by Mario Bonaccorso
BIC has recently celebrated 10 years. As far as you’re concerned, what are the greatest successes the Consortium achieved?
During BIC’s first 10 years, we have done so much work that we are proud of. We created something, which didn’t exist before and was much needed. We were a completely new organisation embarking upon a new public-private partnership with the European Commission. Not only did we successfully implement the first iteration – the Bio-based Industries Joint Undertaking (BBI JU), we are now well into the second iteration – the Circular Bio-based Europe Joint Undertaking(CBE JU) – building upon the strong foundations and accomplishments of the BBI JU. Together, these partnerships represent more than 5.7 billion euros and have resulted in the creation of 15 new innovative flagship biorefineries in Europe, and numerous demo projects all over Europe which are the embryos for future production facilities.
Through BIC, several companies from different sectors who would not normally work together are now collaborating. These synergies have led to the setting up of multiple new value chains, from feedstock supply to producing novel products and creating new applications. Not only that, but these companies from different sectors can use waste and side streams from each other, and valorising it into high value products, thus creating more sustainable industrial eco-systems.
One of our greatest strengths is how diverse BIC membership is. We cover so many industrial sectors, with more joining all the time, for example marine and aquatic . We understand it isn’t just about developing bio-based products, but also getting them to consumers. We count a growing number of “brand owners” amongst our members and these are the companies that bring new biobased products to the market.
What are the goals for the next 10 years?
We need to grow the bio-based sector. Especially, if you look at the challenges the world is facing. That means, not just research and innovation, but actually scaling-up the production of our new bio-based products and processes in Europe. For that, we need more investment in new biorefineries in Europe. Investment into these new biorefineries will be seen as less risky as long as the market for bio-based products keeps on growing. Recognising the bio-based industries as a vital sector in the drive to reduce the use of virgin fossil feedstock (oil and gas) and tackle climate change will hopefully lead to a favourable political framework. Europe’s bio-based sector needs access to sufficient sustainable feedstock. These are what we have identified as key conditions going forward as we continue to support growth and innovation.
In your Trend Report you make some precise proposals to the EU Commission. But it seems you still have to ask a level playing field between fossil products and bioproducts, a stable and coherent policy framework. What are the main obstacles still existing to fully deploit the circular bioeconomy, in your opinion?
In recent years, we have seen a positive impact on innovation and investments in Europe, and the BBI/CBE JU is evidence of that. However, Europe must become better on the regulatory side, at EU, national and regional level. Current EU policy to reduce the use of virgin fossil feedstock focuses on recycling fossil-based carbon. This approach is insufficient. The bioeconomy can play a significant role in defossilising the materials and chemicals sector and in creating sustainable carbon cycles. The bioeconomy is currently underutilised and this is a missed opportunity. Using carbon from a diverse range of renewable feedstock, including biomass, bio-waste, recycled materials and CO2, would enable Europe to fully exploit the potential and benefits of the bioeconomy.
Targeted policies for Europe’s bioeconomy will help to serve people and planet. For example, EU legislation on packaging and packaging waste should create a level playing field for the contribution of carbon from renewable feedstock in packaging, by accounting for its key contribution to the substitution of virgin fossil raw materials. We need practical evidence-based criteria for meeting the End-of-Waste status. With this, there will be better promotion of circularity through by-products, such those from animals or sewage sludge. Efficient product approval and evaluation mechanisms will allow innovative bio-based products to reach the market more quickly. These types of products include novel foods, bio-pesticides and bio-stimulants.
You also highlight how the competition with the United States and Asia is very strong. The USA has accelerated in recent times: from a biotech concept they have moved on to that of biomanufacturing, they are investing in pilot plants, they are changing their NACE codes. Why is Europe so slow? Doesn’t the EU risk to lose its leadership in this way?
When Europe launched its Bioeconomy Strategy in 2012, it was seen a global frontrunner. However, that momentum looks in danger of running out of steam. The world has changed a lot since 2012, and now other regions appear more strident in their approaches to the bioeconomy – particularly the US, China, India, Brazil and the G20. Take last year’s US Executive Order announcing the National Biotechnology and Biomanufacturing Initiative, a two billion dollar initiative supporting biotechnology and biomanufacturing innovations in health, climate change, energy, food security, agriculture and supply chain resilience. Together with the 2022 Inflation Reduction Act in the US, investment for the commercial deployment of the whole bioeconomy across the entire supply chain is financially supported. Why is Europe so slow?
What measures do you think are absolutely urgent to be implemented by the EU Commission?
The recommended measures have been known for some time already. If you look at the EU lead market report from 2008 (LMI), it identified the need for better and faster access of bio-based products to the market. Some 15 years later, the bio-based sector is still in urgent need of this. Although Europe has made good progress in recent years, more can and should be done to make the bio-based industries a stronger part of a new sustainable growth and investment model.
I believe the European Commission should start with three main actions. Firstly, develop a dedicated and long-term policy framework for the circular bioeconomy to transition into a strategic industry sector, and contribute to the EU’s ambitious policy objectives, in consideration of the EU Leads Market Initiative. Secondly, create and expand market opportunities for bio-based products, for example, incentives for the use of renewable feedstocks, materials and products; faster market-entry of bio-based innovation and faster permitting for first-of-a-kind biorefineries, targeted and coherent support for scaling-up bio-based innovation, including creating synergies between funding schemes (private, public, national, regional, EU). And lastly, appoint a high-level EU policy coordinator in the next EU Commission that reflects the cross-sectoral nature of the bioeconomy, such as a dedicated European Commissioner, or a cabinet member of the European Commission President.
Is there a country in Europe which is leading the way, from your point of view?
Countries like the Netherlands and Germany were frontrunners in developing their own bioeconomy strategies. However, if we look at where the major investments have been taking place the last few years, it’s clear that France is now the leading country. Several new BBI and CBE flagship biorefineries are being built in France – and France has already the highest number of biorefineries. The region around Reims is not only known for its champagne production. The strong dynamic of the agricultural cooperative and agro-industry has been the basis of one of Europe’s biggest and best-known biorefinery eco-systems: the integrated biorefinery cluster of Bazancourt-Pomacle, producing food and feed ingredients, fuel and multiple chemicals. This could be a good example of what is possible in other European Regions.
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