VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD

We're Not So Different You and I: Comparing Bioeconomies in Finland and Canada

Jussi Manninen, VTT2017 Atlantic Biorefinery Conference

My Presentation

• Bioeconomy in Finland: some comparison to Atlantic Canada

• Finnish Bioeconomy Strategy and the first steps of implementation

• Change of Government: the new set of priorities and actions

• Lessons learned and where next?

Two Sparsely Populated, Forest Covered Regions

Atlantic Canada- 500 531 km2- Pop. 2.3 mill

Finland- 338 423 km2- Pop. 5.5 mill

Bioeconomy’s Significance for Finland

Turnover€64bn

Share of employment

11%

Share of exports

26%

Finland seeks to increase its bioeconomyoutput to 100 B€ euros by 2025 and to create 100,000 new jobs in the process.

Bioeconomy combines wood processing, chemistry, energy, construction, technology, food and health.

Forest based bioeconomyaccounts for 2/3 of the turnover

The Output of the Finnish Bioeconomy

• The total annual turnover is about 64B€• More than half of the bioeconomy is forest based

Forest41%

Energy7%

Construction15%

Food26%

Chemicals3%

Pharmaceutics2%

Water1%

Services5%

ForestEnergyConstructionFoodChemicalsPharmaceuticsWaterServices

Wood Use in Finland

Value Added and Impact from Bioeconomy

• Multiple use by a market driven approach provides most added valueand the greatest impact

Valu

e/un

it

Total raw material/market potential

New bioproducts and services

Innovative traditional products

Biofuels/Bio oil

Traditional fiber products

Traditional wood products

Heat and power

New bioproducts

€/unit * units= total value

Maximum:

High valueCascade use

High valueMultiple use

Low valueExtensive use

The Process Towards the Strategy

• Strategy drafted in a project set up by the Ministry of Employment and the Economy

• Process started in Autumn of 2012 • Strategy published in May 2014

9

Participants and Stakeholders Consulted

Participants in this project:• Prime Minister’s Office • Ministry of Agriculture and Forestry • Ministry of the Environment, • Ministry of Education and Culture • Ministry of Social Affairs and Health• Ministry of Finance • Administrative branches under these

Ministries• VTT Technical Research Centre of

Finland • Finnish Innovation Fund Sitra

Stakeholder input to strategy preparation:• 5 workshops, 3 regional

bioeconomy forums and sectorial consultations

• All those interested were invited to express their views @ Otakantaa.fi survey and Biotalous.fi website

Finland’s Bioeconomy Strategy

1. COMPETITIVE ENVIRONMENT FOR BIOECONOMY

2. NEW BUSINESS FROM BIOECONOMY

3. STRONG KNOW-HOW BASE FOR BIOECONOMY

4. USABILITY AND SUSTAINABILITY OF BIOMASSSt

rate

gic

goal

s

Impl

emen

tatio

nan

d m

onito

ring

Sustainablebioeconomysolutions arethe basis of Finland’s

welfare and competitiveness

.

Implemented Actions 2014 –2015

Focus areas: Investments, regulation and export

1. Boosting investments – An International BiorefineryCompetition

2. Finnish bioeconomy priorities for the EU defined3. A regulatory survey on ”Bioeconomy bottle necks and

boosters”4. Biomass Atlas combining public data on biomass resources5. Promotion of exports of biobased products and

technologies6. A communication and media action plan7. Tools for promotion and a public discussion

International Biorefinery Competition

• First of its kind globally• Entries represented investments

of 1.5 Bۥ Winners

• Spinnova – fibre yarn• Biovakka Suomi – transportation

fuels and nutrients• Kemijärvi consortium – new pulp

products and chemicals

Biomass Atlas: The new web service provides open access to Finnish biomass data• Amount and location of biomasses and land use: woodchips,

field use and manure amount in agriculture, bio-waste from municipalities and industry

• Apr. 200 fractions / layers• Thematic background maps for evaluation the use of

biomass• 1 km grid data help to make effective queries• Tools to update the data

• Data and knowledge to support investments, planning, energy and environmental policy

• Open map user interface, analysis tools and reporting• Further development will include interfaces to data transfer and

modeling and English translation • www.biomassa-atlas.fi service opens at 6/2017

How much raw material I can

find in my neighborhood?

Where are the fields to take

the digestate?For more information: Eeva Lehtonen, Luke, +358 295 326 317

First Outcomes From the Strategy

• A strong national will to develop the bioeconomy• Effective co-operation model between ministries and

stakeholders• A positive outlook for the future which can be seen in

increase of investments• Increased interest from non-forest industries to utilise

biomass• Public investments into the bioeconomy and

infrastructure• Increased public acceptance for use of biomass

Forest, energy, chemical and material industries are integrating into new

industrial ecosystems

UPM Metsä Group Fortum

Bioeconomy and Clean Solutions:Key Objectives of the Government Strategic

Action PlanBioeconomy and clean solutions is one of the five strategic priorities.

Themes:• Cost-efficient carbon-free, clean and renewable energy• Wood on the move from forests and new bio-based products• Circular economy and implementation of clean technologies• Profitable food production and blue bioeconomy• Fair nature policy

Funding 300 M€ for the government term (2016 – 2018)

Selected Actions from the Government Action Plan

• Energy and climate strategy for 2030 and support measures to increase share of renewables in energy production and in traffic

• Increasing supply of wood and promoting investments in the forest sector, bioeconomy and clean solutions

• Accelerating new innovations in bioeconomy and circular economy by piloting and demonstration using national and European financing

• Improving the financial position of growth SMEs through financing instruments

• Reducing administrative burden

Regional Policies Supporting Bioeconomy 2016 - 2019

• Promotion of new technologies in production of biofuels• Circular economy and bioeconomy investments and wood

construction will be promoted • New products, services and business models will be

developed for circular economy, bioeconomy and cleantech

Regional policies supporting Bioeconomy2016 - 2019

• Circular economy and bioeconomy will be promoted by growth agreements between the central government and towns

• The deployment of new innovations will be speeded up by means of experimental projects and innovative public procurements

• The use of local foods and the development of regional and local food systems that contribute to supporting the vitality of the regions will be promoted.

Regional Policies Supporting Bioeconomy 2016 - 2019

• The Regional Councils will take the sustainable use of renewable natural resources into account in their regional planning activities.

• The ministries and Regional Councils will support the concentration of expertise to centres of competence formed by research institutes, higher education institutions and working and business life actors

Public Procurement: Market Making Tool

Focus On New Markets and Networks• Finland has strong expertise in bio-based raw materials and their

utilisation. • A new opportunity lies on the higher value-added products and their

markets.

Going internationalStart-up Growth

Financing

1 M€

5 M€

10 M€

Lainat investointiin tai käyttöpääomaan

LainatR&D grants and loansEquity

Direct investments

Direct investments

Exp

ortg

uara

ntee

s

Inve

stm

ents

in n

ew

ener

gyte

chno

logy

Available National Instruments in Finland to Support Companies

Investment loans

Lessons Learned• Bioeconomy transcends industrial and administrative boundaries

• Requires a truly multi-lateral/-party approach• Bioeconomy is a lot about industrial and energy policy• One needs to have a proper price for carbon to get things really

started, current EU price for CO2 is not high enough• Market making mechanisms are crucial

• Good benchmarks are US BioPreferred program & biofuel mandates

• Standardisation is needed • Technology de-risking with piloting and investment grants for

investments into new technology and products• The role of bioenergy and forests in general in climate change

mitigation divides scientists and is subject to aggressive ”lobbying”

20502030

Textiles and hygieneproducts

15

10

5

Glues, chemicals

Wood and paperproducts

Reinforcers

Plastic replacement

We Need to Continue Innovating to Reap the Benefits from the Bioeconomy

Where Next?OECD Views on Innovation Policy