EUROPEAN INDUSTRY IN 2020

INDUSTRIAL BIOTECHNOLOGY

IN A GLOBALIZED WORLD

Per Falholt, Exec. VP R&D Novozymes A/S

World leader in industrial enzymes &

microorganisms

Enzymes account for 90% of turnover

47% share of the global industrial

enzyme market

Sales 2011: DKK 10.5 billion (~€1.4

billion)

NOVOZYMES IN BRIEF

More than 700 products used in 130

countries in > 30 different industries

~ 6,000 employees in total

14% of sales are reinvested in R&D

worldwide

More than 6,500 granted patents and

pending patent applications

PRODUCTION RESEARCH

Industrial Biotechnology – everywhere in our daily life

INDUSTRIAL BIOTECHNOLOGY

A key enabler for the

biobased economy…

…an envisioned future

where biomass

replaces fossil oil

THE BIOREFINERY

AT THE CENTRE OF

THE BIOBASED ECONOMY

Biotechnology at the centre of the biorefinery

Biomass pretreatment

Fermentation

Enzymatic hydrolysis

Recovery & purification

Biotechnology at the centre of the biorefinery

Biomass pretreatment

Fermentation

Enzymatic hydrolysis

Recovery & purification

Cellulose Glucose

Biotechnology at the centre of the biorefinery

Biomass pretreatment

Fermentation

Enzymatic hydrolysis

Recovery & purification

Biotechnology at the centre of the biorefinery

Biomass pretreatment

Fermentation

Enzymatic hydrolysis

Recovery & purification

Biotechnology at the centre of the biorefinery

Biomass pretreatment

Fermentation

Enzymatic hydrolysis

Recovery & purification

11

• Increase energy security by substituting more than 50% of all gasoline

• Up to 1mill. jobs by 2020* mainly in rural zones

• Generate €31bn in revenues* • Save €49bn on oil import* • Strengthen innovation/technological leadership

• Reducing GHG emission from gasoline related road transport by 50%

Sources: Bloomberg New Energy Finance (2010), RED.

Energy security

Growth

Climate

Jobs

Energy

WHAT’S IN IT FOR EUROPE?

Full scale production facility (kt)

Demonstration (t)

Pilot (kg)

Lab (g)

Korean, Chinese and US federal R&D funds mainly go to Applied Development whereas Europe has the highest share of Basic Research Funding

LACK OF EU SUPPORT FOR DEMONSTRATION International benchmark on the share of basic, applied and development activities

Source: Key Science and Engineering Indicators, National Scientific Board, 2010 Digest, NSF, http://cordis.europa.eur/erawatch, OECD “Research & Development Statistics

Developed

Applied

FP7

Basic

Conversion economics –

economies of scale

Biorefinery financing

No incentives for demand for

biobased product

BARRIERS TO DEPLOYMENT IN EUROPE

Need for biomass collection

infrastructure

No market for residues

POLICY SUPPORT & COORDINATION ARE NEEDED…

EU Biobased

Economy Agriculture

Research

Cohesion

Environment

Energy

…

HORIZON

2020 REACH

Lead Market

Initiative

KET action plan

Renewable

Energy

Directive

Financing IB SMEs

EU Climate

Change Policy

Biomass Action Plan

Resource

Efficiency

KBBE

FP7

Reform sugar regime

Cohesion & Structural funds

CAP

REFORM

…TO REALIZE THE POTENTIAL

EU BIOBASED

ECONOMY

Industry

Thank you