The Economic Situation of Life Sciences Biotechnology

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Approaching «the last oil»

– less reserves and

inreasing demand

Increasing population;

– 9 bill by 1050 and

increasing consumption

Climate changes;

– food security

and water supply

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Bioeconomy

Petroleum economy

1000 2000 3000

The 21. century industrial revolution

Biomass (microalgae) Fossil carbon (oil/gas) Energy 90% Chemicals 10% 200 mill years

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4% 87% 2% 7% 36% 25% 39% Agriculture Healthcare Industry Other

2030

2010

The century of life sciences

Biotechnology will become essential for most industry sectors

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The knowlede-based bioeconomy

"The bioeconomy can be thought of as a world where biotechnology contributes to a significant share of economic output.

A bioeconomy involves three elements: Biotechnology, renewable biomass and integration across disiplines."

Technology providers Feedstock

suppliers

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Integrated sectors – green products

 Food/feed ingredients  Speciality chemicals

 Cosmetics

 Biopharmaceuticals  Bioplastics & polymers  Pulp & paper

 Lubricants  Textiles  Bulk chemicals  Bioenergy  Fisheries  Aquaculture  Plankton/Krill  Micro algae  Seaweeds  Wood  Straw/bagasse  Plant oils  Animal waste  Municipal waste Biocatalysis 1) Small CO₂ footprint 2) Clean conversion processes

3) High value creation 4) Rural workplaces

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Buzz-words for the years to come

Use of enzymes or microorganisms

for the production of chemicals,

medicines, materials/polymers or fuel. May also include fermentation related to food and feed.

Use of renewable biomass as feedstock for sustainable manufacturing of

chemicals, materials or fuel...

...irrespective of process technology.

BIOCATALYSIS: BIOREFINING:

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"What ever happens in this century, we will have to

learn to live without fossil hydrocarbons.«

Prof. David Goldstein, CalTech: ”Out of Gas: The End of the Age of Oil”, 2004

The challenge and the opportunity

2050: 3000 mill tonns

= 25% of current oil production ~ 1-5 trillion €

2010: 300 mill

tonns total plastics market

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A market trend towards sustainability

October 11, 2011:

Toyota plans to replace a total of 20% of oil-based plastics across the range by 2015, equal to 360.000 tons.

December 15, 2011:

Coca-Cola has entered into 3 SME partnerships in order to reach their target of 100% biobottles, equal to several million tons of PET.

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The stone age did not end due to lack of stone !

The petroleum age

should not end due to

lack of petroleum,

either !

likewise...

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THE BIOECONOMY TRIANGLE

Technology providers Feedstock suppliers Product developing industries

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Collection Properties _& structure

Production Activity _& stability

Process Pilot & _upscaling Cloning &

expression Screening

Research: New biocatalytic tools

Biomass Pretreatment Hydrolyses Fermentation Inter-mediate Purification Chemical steps Enzymatic steps High value product DECOMPOSE SYNTHESIZE

Development: New processess

Upstream

pretreatment Fermentation or biocatalytic process Downstream purification

Upscaling: New products

Cultivation reactor/plant

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SURFING ON KNOWLEDGE NETWORKS

SINGLE COMPANY INDUSTY PARK REGIONAL CLUSTER NATIONAL NETWORK INTERNATIONAL NETWORK RISK  Accessing market opportunities

 Complementary skills/resources

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BACKGROUND AND SECTOR DIALOG

2009 2010 2011 2012 19 expressions of interest Proposal to the Government: «Norge i Bioøkonomien» 7 networking meetings Proposal to the Government: «Norsk Næringsliv i Bioøkonomien» Task force 11.June Reference group Memorandum of Understanding First 4 bilateral

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REFERENCE GROUP

Arild Johannessen IRIS Stavanger Anders Trømborg NOFIMA Ås

Erling Sandsdalen NORUT Tromsø Philip André Reme PFI Trondheim Trond Ellingsen SINTEF Trondheim Hans T. Kleivdal UNI Research Bergen Kjetil Berge Aker Biomarine Oslo Jan Buch Andersen Arcticzymes Tromsø Grete Evensen Xellia Pharmaceuticals Oslo Gudbrand Rødsrud Borregaard Sarpsborg Gunnar Rørstad Calanus Tromsø Pål Jahre Nilsen Cambi Oslo Irene Stoknes EPAX Ålesund Karl Inge Slotsvik Firmenich Ellingsøy Muath Alsheikh Graminor Hamar Harald Nordal Hyperthermics Hovdebygda

Kjartan Sandnes Marine Bioproducts Bergen Bjørn Erik Flem Marine Harvest Ingredients Stavanger Morten Sollerud Norilia (Nortura) Oslo Jørgen Blikra Lødemel Probio Tromsø Bjarte Langhelle Seagarden Haugesund Hans Kristian Kotlar Statoil Trondheim Johanne Brendehaug Tine Stavanger Gudmund Skjåk-Bræk NTNU Trondheim Anders Goksøyr UiB Bergen Edel Elvevoll UiT Tromsø Vincent Eijsink UMB Ås Karl Johan Jakola Norinnova Invest Tromsø Ole Peter Nordby Sigmafondene Oslo

FALL 2011

TASKS FORCE

• Jan Buch Andersen, Arcticzymes • Trine Galloway, SINTEF

• Hans T. Kleivdal, UNI Research • Gudbrand Rødsrud, Borregaard • Kjartan Sandnes, Marine Bioproducts • Morten Sollerud, Norilia (Nortura) • Steinar Bergseth, Research Council • Øystein Rønning, Research Council • Ulf Hustad, SIVA,

• Marit Valseth, Innovation Norway • Ole Jørgen Marvik, Innovation Norway

 Mission statement  Strategy

 Activity plan

 Articles of Association

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NORWAY IN THE BIOECONOMY

Norway will become a significant nation in

the global bioeconomy.

– known for excellence within biorefining

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MISSION STATEMENT

 Make Norwegian industries competitive in the emering knowledge-based bioeconomy!

 More specifically; make companies and knowledge institutions excell in areas such as sustainable and profitable use of wood and marine feedstocks.

The Norwegian Network for Industrial Biotechnology will contribute to:

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ORGANISATION AND STRATEGY

STRATEGIC WORK AREAS

1. Compentence network and knowledge exchange 2. Identifying new market opportunities

3. Stimulating increased biotech investments 4. Increasing awareness about the bioeconomy 5. Cooperation with the public facilitators

 Independent membership association – board and management

 From academic research to upscaling and market penetration  Interdisiplinary dialog – across sectors and geography

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CORE ACTIVITES

 Communicating events and news (newsletter – homepage – document library etc.)

 Organising networking events and internet-based interaction.

 Organising study tours and courses – in collaboration with the government facilitators.

 Aiming to organise an annual conference and dialog with the general public.

 Supporting industry-driven interest groups within

specific themes.

 Undertake or coordinate «development projects»

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A TYPICAL ANNUAL BUDGET

Labour cost - approx 2 man-years (core activities) 2 000 Various managerial cost (office, sosial, travel etc.) 500 Operational cost related to activities 500

DEVELOPMENT PROJECTS 2 000

Total expences 5 000

Innovation Norway 2 500

Membership fees 1 000

PROJECT RELATED INCOME 1 500

Total income 5 000

Support website management from Innovation Norway during initial phase

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FOUNDING MEMBERS

INDUSTRY

Agroplas AS

Aker Biomarine ASA Arcticzymes AS Bergen Technologioverføring AS Bioprotein AS Biosentrum AS Borregaard AS Cambi AS Envirosolution AS EPAX AS EWOS Innovation AS Felleskjøpet forutvikling AS Graminor AS CONTRACT RESEARCH BIOFORSK IRIS Research UNI Research AS NOFIMA AS

PFI - Papir og Fiberinstituttet SINTEF Fiskeri og Havbruk AS SINTEF Materialer og Kjemi

ACADEMIC INSTITUTIONS

NTNU - Fakultet for Naturvitenskap og teknologi UMB - Universitetet for Miljø og Biovitenskap Universitetet i Bergen Universitetet i Tromsø INVESTOR Norinnova Invest Marealis AS Marine Bioproducts AS MicroA AS Norilia AS (Nortura) Norsk Protein AS

Scandinavian Dermal Group AS Seagarden ASA

Statoil ASA TINE SA Weyland AS

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ELECTION COMMITTEE

Karl Almås, President, SINTEF Fisheries and Aquaculture

Øyvind Fylling-Jensen, CEO, NOFIMA

Anne Hjelle, Senior Vice President , IRIS Research

Philip Reme, Research Director, Paper and Fiber Institute

Erling Sandsdalen, Research Director, NORUT

Tor Solberg, Research Director, UNI Research

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• Was selected by the Task Force

• The business plan stated that the Board should:

• Be elected for 1 year (the first year) • Be relatively big – up till 9 members

• Include members from industry (5), research institutes (2), and universities (2).

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Board composition: Additional factors

• Industry/Academia: Blue & Green

• Male- female

• Geography

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Kjartan Sandnes

MARINE BIOPRODUCTS AS Ragnhild Borgrevink VIKEN SKOG AS Hans Kristian Kotlar STATOIL ASA Johanne Brendehaug TINE SA Jan Buch Andersen ARCTICZYMES AS

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And what next?

FIRST PHASES:

Formalities:

The board establish work procedure and role File registration

Recruitment of leader Establishment:

Website fully operational

Overview of members – needs and contributions

Secure commitment

Define first network activies Activities:

Meetings (scientific, commercial)

Study tours

Newsletter(s)

Interactive fora

Etc. etc. etc.

Learn more:

Study the Business plan on the website

Remember:

This is a membership organization –

make your voice heard

Substantial political goodwill – but we must grab the opportunity

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