Europe needs the bioeconomy to transition from niche to norm (Kohl)

NutrientRecycling in theGrip ofGeopoliticsJohanna Kohl, Adj. Prof., Dr.Director , Circular Bioeconomy ResearchProgrammeNatural Resources Institute Finland18 March 2024Open strategic autonomy -Europeneeds bioeconomy to transition fromniche to normEuropean aim for open strategic autonomy challenges us tooptimize the use of our bio -based raw materials throughout thevalue chain.The European Union should:1.Ensure that EU’s industrial and finance policiesenable bioeconomy solutions to polycrisis .2.Create more value added from bioeconomy.3.Reduce the dependence of the EU food system onimported production inputs.See alsohttp://urn.fi/URN:NBN:fi -fe202402238459The US and China are overtaking Europe in GDP growthThe World Bank. Data for United States, European Union, China.https://data.worldbank.org/?locations=US -EU-CNtrillionWorld Economic Forum (WEF) Global Risks Report 2023Bioeconomy has potential to boost EU'svalue added. However, the developmentof bioeconomy value chains has recentlybeen forgotten.01000002000003000004000005000006000007000008000002015 2016 2017 2018 2019 2020Bio-based electricityLiquid biofuelsBio-based chemicals, pharmaceuticals, plastics and rubber (excl. biofuels)PaperWood products and furnitureBio-based textilesFood, beverage and tobaccoFishing and AquacultureForestryAgricultureBioeconomy –value added / EUEuropean Commission. Jobs and Wealth in the European Union Bioeconomy.https://datam.jrc.ec.europa.eu/datam/mashup/BIOECONOMICS/index.html- 2000 000 4000 000 6000 000 8000 000 10000 000 12000 000 14000 000 16000 000 18000 000 20000 0002015 2016 2017 2018 2019 2020Bio-based electricityLiquid biofuelsBio-based chemicals, pharmaceuticals, plastics and rubber (excl. biofuels)PaperWood products and furnitureBio-based textilesFood, beverage and tobaccoFishing and AquacultureForestryAgricultureBioeconomy –employed people / EUEuropean Commission. Jobs and Wealth in the European Union Bioeconomy.https://datam.jrc.ec.europa.eu/datam/mashup/BIOECONOMICS/index.htmlEnsure that EU’s industrial andfinance policies create bioeconomysolutions to polycrisisBioeconomy should be an essentialpart of EU’s industrial policy•Bioeconomy is in a key role in green transition andin enabling the EU to move beyond the use of fossilraw materials .•It is time to harmonize the objectives and priorities ofcircular bioeconomy, bioeconomy, and industrial andfinancial policies .•Bioeconomy and RDI solutions can enable the EU to pursueopen strategic autonomy and reduce its dependence onfossil -based energy and imported inputs, such asfertilizers necessary for food production .Reduce the dependence of the EU foodsystem on imported production inputsSource: Sandström, V., Huan -Niemi, E., Niemi, J. Kummu, M. 2024. Dependency on importedagricultural inputs -global trade patterns and recent trends. The manuscript under review. .Many big crop producing countries in North andSouth America show an increasing trend towardshigher import dependency of N fertilisersWith K fertilisers, even more countries are netimporters with higher import dependencySource: Sandström, V., Huan -Niemi, E., Niemi, J. Kummu, M. 2024. Dependency on importedagricultural inputs -global trade patterns and recent trends. The manuscript under review. .Europeans are dangerously depended onRussian fertilizers warned Yara...https://www.hs.fi/talous/art-2000010113311.htmlBiobased fertilizers can significantly improve foodsecurityNutrient -rich side -streams to:•replace mineral fertilizers,•increase soil carbon content,•improve self -sufficiency in food production in the EU.The dependence on Russian natural gas on nitrogen productioncould be partly replaced by recycled fertilizers in the EU.CASE BOX: At the EU level, H2020project LEX4BIO (lex4bio.eu) providesinformation for efficient utilization ofboth nitrogen and phosphorus basedBBFs, while ensuring food and feedsafety, human health andenvironmental protection (Fig. 1), invarious growing and soil conditionsacross the EU.Mapping the EU regional sources of nutrient -rich biomassesSee alsohttp://urn.fi/URN:NBN:fi -fe2022091258371Manure is the main nutrient -rich sidestream in the EU, containing both N(Fig. 2) and P . Efficient utilization ofmanure -based nutrients, requires novelprocessing technologies (Fig. 3) forconverting them into a moretransportable form, providing meansfor producing site -specific bio -basedfertilizers across the EU.Available manure -based nitrogen in the EU (lex4bio.eu)See lex4bio.eu andhttps://jukuri.luke.fi/handle/10024/552226Security of Supply leapBy developing novel processing technologiesfor converting sidestreams into efficientfertilizers, by developing novel protein andfibre sources and thereby decreasingdependency e.g. on imported soya.Replacing mineral N -and P -fertilizersWith bio -based fertilizers while ensuringagronomic efficiency, food and feed safety,human health and minimising environmentallosses.•RDI programme and Action Plan:Recycled fertilizers from side -streams•RDI programme and Action Plan: Novelprotein and fibre sources•Nitrogen and phosphorus EUroadmap•Critical evaluation and disseminationAction Plan on recycled fertilizers : Thecarbon sequestration potential, GHGemissions, impact on nutrient leaching,contribution on soil fertility andbiodiversitySecurity of supplyBiomasses and their side streams can bevalorised to added value productsTo achieve the goals of Finland's bioeconomy strategy (50 billion EUR value by 2035):•Cross -sectoral production chains and value networks .•Forest industry: from bulk production towards high added value products ,services, and business, utilizing all wood -based components.•Regional activity: circular bioeconomy generates new innovations, products andbusinesses to strengthen regional economies in the EU.→→→✓New decentralized and centralized production business models,✓Logistics solutions for underutilized raw materials,✓Wise and experimental utilization of main and secondary streams,→Require incentives from both the public and private sides .Regional decentralized production systems:livelihood for cities & rural communitiesFrom low hanging fruits towardsutilization of complexbiomass/side stream sources —added value, energy, security ofsupply, and regional livelihood•RDI programme : Complex sidestreamsources –novel technologies andregional potentials in efficient usefor high value products and recycledfertilizers .•Policy action: beyond the sectors:integrate circular bioeconomypriorities within existing regulatoryframeworks.Complex side -streams in useDiversity provides resilience and securityto energy systems•Diverse energy system is resilient energy system. Functionality and acceptabilityof the bioenergy should be secured in EU and national level policy processes•Society needs carbon as well. Biobased CO2 could be one such source, enablingeven negative emissions. More effort for developing biobased P2X and CCU/Sprocesses is needed.•Boost piloting and demonstration of novel bioenergy and biorefining processes.Replacing plastics is a start, but the ultimate -goal should be on functional added -value products.Hydrogen economy –a hype?Hydrogen is the answer to almost all of our energy productionproblems?The "emission -free" nature of hydrogen depends on howhydrogen is produced and utilised....AND will fossil fuels be replaced or consumption increased?In order for hydrogen produced by electrolysis to be consideredrenewable, the electricity used must also come from renewableproduction.....Increase in the number of wind and solar power plantsOne of the drivers of hydrogen production at Europeanlevel is the fertiliser industry, which needs hydrogen toproduce ammoniaContact saija.rasi@luke.fiThe hydrogen economy can improve security of supplyfor raw material for nitrogen fertilizers...•Finland and the other Nordic countriescould become a major producer of greenammonia : several investments are planned•In terms of the security of nutrient supply,nitrogen is the most critical nutrient –also the most significant geopolitically .Non-natural gas ammonia production inEurope would therefore be more thanwelcomeMaaseudun Tulevaisuus 16.2. Contactolli.niskanen@luke.fiFlexible and decentralized energy systems needed... But a large -scale transition will take time•According to a globally optimisticscenario, a quarter of ammoniaproduction could be based ongreen hydrogen in 2040•The paint is moving –globalammonia production is growing,but so is demand•The market price of natural gas inEurope has returned almost to pre -war levelshttps://www.irena.org/publications/2022/May/Innovation -Outlook -Renewable -AmmoniaGlobal ammonia production , MtThe green transition does not eliminate the need todevelop nutrient cycles and the regional circularbioeconomy•Demand for ammonia is alsogrowing outside agriculture•Realism for demand: Productsare sold to the most solventmarket•Nitrogen supply in agriculturewill continue to be largelydependent on ammoniaproduced from fossil sourcesfor a long time to come,although security of supplywill improve the more sourcesare availablehttps://www.irena.org/publications/2022/May/Innovation -Outlook -Renewable -AmmoniaRecycled nutrients can replace concentrated fertilizersLemola ym. 2023. Fosforin kierrätyksen tarve ja potentiaali kasvintuotannossa: Synteesiraportti. Luonnonvara - ja biotalouden tutkimus 10/2023. http://urn.fi/URN:ISBN: 978 -952-380-612-2 Total recyclablephosphorus 21,100t/year540 tBio-waste15 200 tManure ofdomesticanimals560 tSurplus -grasslands4 000 tCommunitiessewage sludge770 tFoodsystem -Industrial sidestreamsThe share of phosphorussuitable for processing wouldcover approximately one ofFinland's annual cropproduction needs :The need forfertilization23 300t/year 90%21 100 tTotal recyclablephosphorus2 200 tPhosphorusreplenishment needs fromconcentrate fertilizers11 500 tPhosphorus to fields withconcentrate fertilizers in 2020Recommendations 1/2•Invest in research, technology development and innovations to improve Europe’s resilienceand self -sufficiency in nutrients, energy and food components.•Support the development of strong regional business clusters and value chains promotingcircular bioeconomy principles in order to:•ensure resource efficiency in the food chain;•reduce local dependency on imported inputs;•enable coherent collaboration between different stakeholders.•Educate the new generation of farmers to be capable to adapt and use new technologies,tools and business models created through the RDI process, e.g. precision and regenerativeagricultural practices, digital technologies and European data spaces.•Identify the linkages between land use, new challenges in providing comprehensive regionalsecurity and the need to increase the value added of the food sector .Recommendations 2/2•Respond to the polycrisis by increasing the EU RDI budget .•Focus on strategic competitiveness . EU funding should be aligned with the EU’s strategiccompetitiveness objectives. More focus on the bioeconomy is needed, closely integrated withindustrial and financial policy development.•Focus more on building long -term competitiveness rather than just providingmanufacturing subsidies in the EU's Multiannual Financial Framework .•Strengthen the role of bioeconomy in EU industrial policy and ensure the acceptability andcompetitiveness of biomass sourcing.•Emphasize collaboration between research, finance and industry to stimulate investmentsleading to high value -added production using bio -based raw materials.luke.fi© Luonnonvarakeskus© Natural Resources Institute Finland© NaturresursinstitutetThank you!