Bio-based Economy Beckons, Says DSM
Shifting to a bio-based economy from fossil fuel-based is feasible but key steps are needed to make the transition work in a sustainable way, experts said at a briefing on Friday. Bio-based sources from agriculture could provide a signicant amount of fuel, power and chemicals in the future instead of carbon-heavy fossil fuels which will eventually run out.
"A bio-based economy is inevitable, it is needed for a sustainable future," said Rob Van Leen, chief innovation officer at Netherlands-based chemicals group DSM.
Currently, biomass represents 10% of power and heat generation and 4% of transport fuel, while bio-based energy is five times as big as wind power, according to consultants McKinsey and Company.
"The contribution of bio-energy in heat and power alone should more than double in the next 10 years based on current legislation," said Jan Riese, principal at McKinsey.
But a bio-based transition is fraught with challenges. Difficulties arise from sourcing low-cost biomass on a large scale, sustainable raw material use, developing new technology for clean fuel conversion, funding large-scale demonstration second generation bio-refineries and supportive global policies.
"There is a limit to how much biomass can be sustainably produced. We need to manage any transition very carefully," said Nadine McCormick for the Internation Union for the Conservation of Nature.
Currently, biofuels are the largest application of a bio-based economy but need to become more economically viable. They have been criticised for diverting agricultural production away from food crops and driving up fuel prices. I
Investment DSM
DSM has invested €60 million into biotechnology innovation. Industrial or "white" biotechnology speeds up the replacement of traditional chemical and fossil fuel processes and products. It is forecast to grow to a $150 billion business from $115 billion in the coming years, the OECD says.
DSM sees partnerships across sectors as an important way to speed up this growth.
"The pulp and paper sector has experienced reduced demand for newspapers but it has a tree supply infrastructure so is a likely candidate to work with to convert biomass into chemicals," said Volkert Claassen, DSM's head of white biotechnology.
Biorefinery development will also play an important role. Currently, second generation refineries are all in the experimental phase and their development will need long-term support from governments. A demonstration plant would cost around €100 million. Europe is lagging behind the U.S. in bio-based industry development, Claassen said.
"Europe has different leaders and no consistency. The EU is making a lot less money available (for demonstration plants) than the U.S.," he added.
