EUROPEAN INDUSTRY IN 2020
INDUSTRIAL BIOTECHNOLOGY
IN A GLOBALIZED WORLD
Per Falholt, Exec. VP R&D
Novozymes A/S
NOVOZYMES IN BRIEF
 World leader in industrial enzymes &
microorganisms
 More than 700 products used in 130
countries in > 30 different industries
 Enzymes account for  90% of turnover
 ~ 6,000 employees in total
 47% share of the global industrial
enzyme market
 14% of sales are reinvested in R&D
worldwide
 Sales 2011: DKK 10.5 billion (~€1.4
billion)
 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
Enzymatic
hydrolysis
Fermentation
Recovery &
purification
Biotechnology at the centre of the biorefinery
Biomass
pretreatment
Enzymatic
hydrolysis
Fermentation
Recovery &
purification
Cellulose
Glucose
Biotechnology at the centre of the biorefinery
Biomass
pretreatment
Enzymatic
hydrolysis
Fermentation
Recovery &
purification
Biotechnology at the centre of the biorefinery
Biomass
pretreatment
Enzymatic
hydrolysis
Fermentation
Recovery &
purification
Biotechnology at the centre of the biorefinery
Biomass
pretreatment
Enzymatic
hydrolysis
Fermentation
Recovery &
purification
Biotechnology at the centre of the biorefinery
WHAT’S IN IT FOR EUROPE?
Growth
Jobs
Energy
Energy
security
Climate
• Generate €31bn in revenues*
• Save €49bn on oil import*
• Strengthen innovation/technological leadership
• Up to 1mill. jobs by 2020* mainly in rural
zones
• Increase energy security by substituting more
than 50% of all gasoline
• Reducing GHG emission from gasoline related
road transport by 50%
12
Sources: Bloomberg New Energy Finance (2010), RED.
Lab
(g)
Pilot
(kg)
Demonstration
(t)
Full scale production facility
(kt)
LACK OF EU SUPPORT FOR DEMONSTRATION
International benchmark on the share of basic, applied and development
activities
Developed
Applied
FP7
Basic
Korean, Chinese and
US federal R&D
funds mainly
go to Applied
Development
whereas Europe has
the highest share of
Basic Research
Funding
Source: Key Science and Engineering Indicators, National Scientific Board, 2010 Digest, NSF,
http://cordis.europa.eur/erawatch, OECD “Research & Development Statistics
BARRIERS TO DEPLOYMENT IN EUROPE
Need for biomass collection
infrastructure
No market for residues
Conversion economics –
economies of scale
Biorefinery financing
No incentives for demand for
biobased product
POLICY SUPPORT & COORDINATION ARE
NEEDED…
Resource
Efficiency
REACH
Financing IB SMEs
…
CAP
REFORM
HORIZON
2020
EU Climate
Change Policy
Lead Market
Initiative
KET action plan
Research
Environment
Industry
EU BIOBASED
EU Biobased
ECONOMY
Economy
Agriculture
Reform sugar regime
KBBE
FP7
Energy
Renewable
Energy
Directive
Cohesion
Biomass Action Plan
Cohesion & Structural
funds
…TO REALIZE THE POTENTIAL
Thank you