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Report2020

SMEs point-of-view on market, material production opportunities and implementation

Prade, Thomas; Andrzejczyk, Rafał; Bochniak, Roksana; Booker Nielsen, Mark; Cuypers, Beate; Dąbrowski, Paweł; Gołąbek, Aleksandra; Kjær, Tyge; Köhn, Hauke; Lund, Johanna; Mikielewicz, Dariusz; Mittenzwei, Max; Wajs, Jan

Abstract

The bioeconomy is a crucial part of the low-carbon, resource efficient and circular economy, in which new biomass-based materials and products are introduced to substitute fossil-based materials and products. This development is a major contributor to both climate change mitigation and a sustainable and efficient use of resources. Small and medium-sized enterprises (SMEs) play a crucial role in the bioeconomy. It is therefore important to empower SMEs and other actors to participate in bioeconomy development in the South Baltic Area. In addition to the emvironmental benefits, a growing bioeconomy helps to create and secure jobs and development in rural areas. Thus, a special focus must be placed on modern infrastructure and logistics, as they are prerequisites to fostering biomass supply. The aim of the report was to investigate SMEs point-of-view on market opportunities, material opportunities, production and implementation within the growing bieconomy. The work was initiated in a cross-border workshop and deepened in a survey and and in interview case studies. The results are presented and assessed for specific topics. The respondent rate of the survey was very low, so it was difficult to draw major conclusions. However, some overall trends could be seen. Medium-sized companies were the most struggling enterprises in the bioeconomy. In contrast, small enterprises seemed to react faster to shifting market situations or technologies, while long-established large enterprises were able to apply their long-term experiences. The results showed that it is of importance to have larger companies as cooperation partners when it comes to the marketing of innovative products. Also there seems to be a weak political and governmental dissemination of the term bioeconomy, which is reflected in a low degree of familiarity in medium-sized companies. A deepened assessment on the SMEs point of view was conducted based on the results from 11 interviews carried out in Poland, Germany, Denmark and Sweden. As an example of an identified barrier, difficulties to access biobased feedstock for processing was identified. Furtermore, a surrounding community such as specialized expertise networks were lacking to assist in quickly developing biobased products. Regulatory barriers sometimes place a high burden on small companies in using exisiting residueal side-streams as feedstock for new bio-based products, signaling the need for changes in legislation as a powerful driver for increase bioinnovation in the short-term. Profitability of biobased products was found to be negatively affected by high raw material prices and unprofitable technologies that are still supported by various forms of co-financing for pilot installations. Lack of profitability was found to be the single most mentioned barrier against innovation in the bioeconomic context, pointing out a need for support schemes. As a result, the fossil-based production was often more profitable than the new, innovative, bio-based production. Another barrier or challenge for bioinnovation is grounded in the fact, that bioeconomy is a heavily multi-disciplinary branch of industry. To develop new ideas in this field, there is a need for experts from chemistry, biology, agriculture sciences, mechanical engineers and economists. Since it is hard to persue innovative ideas alone, networks should be used to associate experts from the mentioned fields, as well as stakeholders and decision-makers. The interviews also showed various circumstances that bolster innovation activities. The motivation for the companies could be support from a regional policy. Financial support can play a major role in boosting innovation activities, as it allows companies to have a far-seeing scope at a limited risk. Examples of opportunities for biobased feedstock that were highlighted in the interviews were chaff from cereal production that can be utilized for biochar and heat production, intermediate crops and beet leaves that can be used for extracting plant proteins for human consumption and other components for food applications.

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Publisher: BioBIGG