Bioeconomy - Industrial Uses

Table of Contents

1.0 Description and Scope of this Theme

1.1 Theme Description

1.2 Content Components of the Theme

1.3 "Mapping" the Bioeconomy-Industrial Uses Theme

2.0 Context and Background for this Theme

2.1 Context and Background

2.2 Key Assumptions

2.3 Trends

2.4 Opportunities

2.5 Issues and Barriers

2.6 Enabling Components of the Theme

2.7 Interdependencies and Linkages with the Theme

3.0 Research Areas and Priorities for this Theme

3.1 Description of Research Areas

4.0 Critical Success Factors

4.1 Description of Critical Success Factors

5.0 Other Related Considerations and Recommendations

1.0 Description and Scope of this Theme

1.1 Theme Description

'Bioeconomy' refers to the exchange of products manufactured --- in whole or in part --- from renewable biomass resources. In this sense, the bioeconomy is an integral part of the larger economy. While renewable biomass resources could come from agricultural, forestry or marine sources, the focus of this theme is that portion of the bioeconomy which is or could be generated from agricultural biomass. "Bioeconomy" implies that food/feed and non-food/feed biomass could be the foundation for value-added activity in one or more markets, and could be part of competitive growth and prosperity strategies in a given region. Especially in the near term and perhaps for the foreseeable future, bioproducts are likely to be manufactured from blends of biomass and conventional materials. As a result, biomass and conventional feedstocks are now and will continue to be part of the same material chain. To varying degrees, biomass will be substituted into material chains in place of materials currently derived from fossil fuels, and will be used to manufacture products with real commercial value.

'Industrial Uses' implies the transformation of biological materials into feedstocks for use in manufacturing or in energy systems. As a result, this theme requires consideration of the primary and secondary processing technologies by which biomass is transformed; these technologies may utilize biological, chemical, mechanical, thermal or other conversion processes. "Industrial uses" also implies the need to consider proximity of agriculturally-derived biomass to industrial users, the existence of appropriate transportation and storage infrastructure, and the relative ease or difficulty in substituting a particular bioproduct for a synthetic competitor (often made with fossil fuels) in industrial use.

The Bioeconomy-Industrial Uses theme encompasses three major areas of focus, all of which involve use of agriculturally-derived biomass to produce some type of bioproduct. The three major product categories considered here are:

• Biomaterials - includes bioplastics, biobased blends, natural fibre composites, biobased nanocomposites, biofoams, biorubber, biobased paints and coatings, bioadhesives, and bioinks, and natural fibres, as well as the resulting end products (e.g. textiles, carpets, mats), rigid components (e.g. tiles, panels, beams and posts, tubes/pipes, casings, or other formed products), or granulated products (e.g. chips, pellets, dust).

• Biochemicals - industrial chemicals (e.g. cleaners, lubricants, sealants, solvents, ), intermediate biochemicals (e.g. ethylene), chemical inputs/feedstocks for production of other products (e.g. oils, phenols, resins) or biotech products where at least part of the product is a biological organism or component (e.g. enzymes, molecular probes, microbes, yeast, bacteria).

• Bioenergy - energy feedstocks (e.g. ethanol, methanol, butanol, biodiesel, bio-oil, biogas, pellets, hog fuel) as well as the end products (e.g. electricity, thermal energy).

  Nutraceuticals and functional foods are excluded: Biomaterials and biochemicals also have many applications in health care, where their use requires demonstrated compatibility with direct use in or on the human body. Exploration of this theme excludes nutraceuticals and functional foods which are considered under the Food for Health theme. However biopharmaceuticals and cosmetics are considered in the Bioeconomy-Industrial Uses research theme.

  Feedstocks are defined as: biomass intended for use in and subjected to some form of processing to prepare the biomass for use in manufacturing or energy generation processes. Residuals from conventional agricultural crops (including food crops) are often referred to as 'waste' and are considered a potential source of biomass for bioproducts. Other feedstocks could be bioenergy co-product streams such as low or negative value byproducts from lingo-cellulosic biofuel industries (also from paper and pulp industries), crude glycerol from emerging biodiesel industries, Distillers' Dried Grains with solubles (DDGS) from corn ethanol industries, soy meal and canola meal (from soy/canola oil industries), CO2, food processing waste streams, and energy crops like hemp or miscanthus. Exploration of this theme specifically includes these feedstock sources as well as 'waste' from such non-agricultural sources as municipal solid waste streams. Blending these materials with agricultural feedstocks may be the most cost-competitive approach to manufacturing bioproducts.

  Definitional Flexibility: OMAFRA allows some definitional flexibility to encourage a more open innovation system (e.g. provide R&D flexibility to look at synergies between industrial and food/fuel uses --- as an example, the use of CO2 from ethanol production as growth enhancer in greenhouses or potential feedstock for polycarbonate plastics. Also allow inclusion of biopharmaceutical, nutraceuticals, functional food and cosmetic R&D if it can enhance economics of an existing biorefinery (e.g. ethanol, biodiesel, biochemical facility)

  The Concept of Sustainability: There is significant potential (environmental) sustainability benefits in bioproducts --- linked to renewability of feedstocks, post-farm gate activity, conversion, product use and disposal, and the effects of these activities. Generation of strong comparative data is needed to address green standards of industrial bioproducts and build public confidence. However, while beneficial, these benefits should not be automatically assumed to be part of the definition of bioproducts.

   

  1.2 Content Components of the Theme

  Strategic Choices: The following are strategic choices as key components of moving forward in the Bioeconomy-Industrial Uses theme area:

  • The concept of a hybrid economy --- based on the co-existence of products of bio and non-bio origins, as well as products which are themselves a blend of bio and non-bio feedstocks.

  • A focus on higher value-added products, which are expected to be niche markets with significant customer value. The Panel concluded that Ontario's agricultural sector is more likely to be competitive in these markets than in commodity markets.

  • The concept of total utilization of feedstocks and residuals --- a residual from one process may be an input or feedstock to another process. The ultimate objective must be total utilization of biomass, with no 'waste'. This imparts both business/commercial and environmental benefit.

  • A value chain perspective --- adoption of a feedstock-to-product perspective against which research investments would be evaluated.

  • Pursue Ontario's advantage and opportunities for entering into ethnic, niche and identity preserved markets

  • Confirm that the best global competitive strategy is to build on excellence and corporate partners, preserve identity, and start with the end-use consumer

    Key Infrastructure:

    • Existing research capacity in both public institutions and private industry. Centres of Excellence, upon which industry as well as academe may draw, are also key components of infrastructure.

    • Manufacturing infrastructure.

    • Agricultural productive capacity, including expanded use of marginal lands (lands other than Classes one or two).

    • Networking and relationship-development infrastructure, especially across sectors and disciplines.

    
    1.3 "Mapping" The Bioeconomy-Industrial Uses Theme

    Given of the complex, non-linear nature of the components of the "Bioeconomy-Industrial Uses" theme, mapping the "system" is also a very complex process. A very simple version of the system is presented below in Figure 1.
    

    A more productive approach would be to map individual opportunities or products; this should be done at the early stage of each opportunity exploration with the objective of assessing prospects for successful outcomes and the system components required for that particular opportunity, as well as identifying assets which could be brought to bear on the opportunity and barriers which must be removed or circumvented (if possible).

     

    Figure 1.

    

     

    Text equivalent of Figure 1.

     

    2.0 Context and Background for this Theme

    
    2.1 Context and Background

    • OMAFRA requires integration of bio-economy theme priorities with priorities from the other 7 themes into a multi-theme research program with an approximately five year time horizon.

    • Until now, research projects devoted to the Bioeconomy-Industrial Uses theme have not been a major part of OMAFRA's research programs. As a result, the context is well described for more intensive pursuit of these opportunities in future and underscores the need for OMAFRA to modify existing programs and processes to incorporate considerations and characteristics associated with this theme.

    
    2.2 Key Assumptions

    • Economic challenges to the Ontario economy will continue. Energy costs are expected to remain high for the foreseeable future. Market globalization will continue.

    • Although some commodity markets may show ongoing strength (e.g. grains), Ontario will have increasing difficulty in competing in most low value-add markets. As a result, a shift to products with high-value added will be the most likely route to success for Ontario.

    • Ontario has substantial agricultural resources which continue to be available for the production of a diverse set of products - including food, feed, and bioproducts.Climate remains a largely uncontrollable factor in the production cycle but it constrains rather than eliminates opportunity.

    • Agricultural production in Ontario will continue to grow and related issues such as urban encroachment, environmental impacts of agricultural operations, and proximity of production and processing facilities to markets will require ongoing attention. Benefit to Ontario's agricultural sector should be one of - but not the only - criteria associated with research in this theme area.
      

     

    2.3 Trends

    • Ontario's economy is undergoing significant change - in the agricultural sector and well beyond it. The entire value chain (from feedstock to finished product) is becoming more tightly integrated, requiring closer collaboration between the agricultural sector, researchers and innovators working in multiple sectors, and receptor capacity. Requirements for integration and collaboration must be built into OMAFRA's research programs supporting this theme.

    • The public policy environment for Ontario bioproducts will become more complex as other jurisdictions advocate and adopt standards for "green-ness", and the potential benefits - as well as outstanding issues - associated with bioproducts continue to attract attention.

     

    2.4 Opportunities

    OMAFRA can extract maximum value from the bioeconomy if it capitalizes on these opportunities:

    • High value-add products, often associated with niche markets, rather than low value-add global commodity markets in which Ontario has increasing difficulty in competing.

    • Local/domestic markets as well as international ones (e.g. energy products which can be used within the province to displace out-of-jurisdiction energy products).

    • In the near-term, bioproducts which blend conventional and bio-based inputs, especially when those bio-based inputs come from residual or 'waste' streams associated with agriculture, southern woodlots, municipal solid waste or fibre-intensive manufacturing.

    • Over the longer term, bioproducts in any of the theme subcategories (biomaterials, biochemicals, bioenergy) which can address a market need in a cost-competitive way based on a competitive advantage for Ontario, and offer benefits to the province's agricultural sector.

    • Innovation potential of small and medium-sized enterprise (SMEs) as well as large industry and research institutions.

    • Becoming a world leader in creating a public policy environment that is supportive of bioproduct development and introduction without disregarding the need for accountability in the use of public funds, protection of health and safety, and the need for environmental protection/improvement.

     

    2.5 Issues and Barriers

    • Potential of the Bioeconomy Must Be Validated: The emerging bioeconomy, which is simply a part of the larger economy, has potential to contribute to the Province's prosperity but this potential has not been validated. Research which helps to scope the arenas in which Ontario has the most opportunity would be advisable as guidance to annual research funding decisions.

    • Some Enabling Components Still Required: Some - but not all - of the foundations are in place to pursue the potential of the bioeconomy. The most important components which need to be put in place are 1) organizational structures and processes which will accelerate Ontario's pursuit of opportunity and 2) linkage development both within and outside government to enable stakeholders to increase the Return on Investment (ROI) from research funding and capture economic opportunity.

    • New Concepts Must Be Introduced: Successful pursuit of opportunity in the bioeconomy requires that new concepts make their way into research, development, commercialization and public policy associated with the bioeconomy. First and foremost is the concept of a value chain where all efforts are directed toward outcomes that will deliver economic benefit to the province and its agricultural sector. Other key concepts are interdisciplinarity in research, total utilization in processing and product development, and life cycle analysis as a tool for assessing environmental benefit.

    • Continued Leadership Needed: OMAFRA should continue to provide leadership in articulating and stimulating agriculture's role in the bioeconomy but this must unfold in partnership with other Ministries, institutions and industry (both large and small).

    
    2.6 Enabling Components of the Theme

    Many of the research foundations of a bioproduct economy are already in place (e.g. research infrastructure and human capital). However to keep competitive on a global scale, Ontario will need to continue to invest in both basic and applied bioproducts research; by definition, research investments in this theme are more likely to be concentrated in applied areas than basic science.
    The new(er) foundational components are:

    • Linkages which deliver the value add aspect of bioproducts from agricultural biomass. (e.g. link with various food/feed/crop/chemical processors and capture the various streams (primary and residual) for use in products with high value-add; links between crop improvement, harvesting, bioproduct processing, modification of biomass, refining residues, as well as characterization and analysis of the bioproducts (bioenergy, biochemicals and biomaterials) from the molecular to macroscopic scale.

    • Public policy and regulatory research which supports a successful bioeconomy holds the opportunity for Ontario to be a leader (as California is). One element of this could be an understanding of the impacts of the bioproducts sector on other sectors.

    • Government incentives to promote technology transfer and to create market pull. Examples could be procurement policy (Province should buy what is made/ manufactured here.) or changes to crop insurance and advance payment programs for producers.

     

    2.7 Interdependencies and Linkages with the Theme

    Better integration of multiple stakeholders in important efforts to advance the bioeconomy, and building linkages to enable researchers to better understand and incorporate industrial/market considerations in their work. The specific types of linkages and dependencies identified were:

    • Linkages to Industry/Manufacturing: Industrial and manufacturing linkages are key (to expedite bioproduct adoption and commercialization); this will require consideration of industry standards (quality assurance) and regulatory requirements. The energy/bioenergy sector was identified as a sector with which linkage development is especially important. Other sectors noted were forest product industry (pulp and paper industry), the chemical industry, and other manufacturing industries (auto parts, packaging, furniture and building products).

    • Linkages to Other Ministries/Research Institutions: Moving from being an OMAFRA to OMAFRA-led initiative science and technology initiative for the province; this implies that linkages with other Ministries with science and technology interests and research institutions would be key.

    • Linkages which are Geographic/Transportation-Focused: Linkages between processing/manufacturing/transport and agricultural (production) sectors due to sensitivity of economics to proximity/distance from field/forest to processing/manufacturing sites.

    • Linkages to International Arenas: Take the theme in this research and industrial highly qualified personnel (HQP) to the global stage; engaging with decision-makers in industry in other jurisdictions is an important linkage for this theme.

    • Interdisciplinary Linkages: with fields such as environmental research (e.g. on the consequences of deployment of new instead of traditional crops.

    
    3.0 Research Areas and Priorities for this Theme

     

    3.1 Description of Research Areas

    Four priority research areas are identified: feedstock-related research, processing technologies research, bioproduct development research, and policy research.

    A. Feedstock-Related Research is defined as research to create, unique, sustainable, and/or more robust bio-based/organic feedstocks with the aim of long-term market viability. This includes research on organic waste streams and research into delivery and farm gate processing, storage, and transportation. This is the research area in which OMAFRA - UofG has the greatest potential to contribute in the provincial context.

    Examples of research that might be considered under this research area include but are not limited to:

    • Utilization of "waste" streams as value-added bioproducts

    • Development of new or improved crops beyond traditional or existing commodity crops

    • Feedstock development, quality development, storage and production optimization of ligno-cellulosic biomass on marginal land, with reduced water and fertilizer use

    • Biotechnology for improved agronomics, improved quality of raw materials for industrial uses

    • Enhanced feedstocks for use as combustible (or liquefiable) energy source (e.g. higher biomass yield per acre, increased drought and pest tolerance, increased transportation efficiency)

      B. Processing Technologies Research is defined as research into methods and processes for converting/refining feedstocks to enable cost-competitive products for a variety of industrial uses. This type of research should work towards an integrated approach. Processing technologies which use multiple/combined feedstocks should be favoured. The ultimate outcome of this type of research is increased value, either of a single component, or across products. This type of research includes development of processing technologies that are scalable to meet local needs as well as the needs of larger facilities.
      

      OMAFRA particularly needs outcomes of research focused on the agri-technology side of this component.

      Examples of research that might be considered under this research area include but are not limited to:

      • Fermentation, thermal, chemical and/or mechanical processing of the optimized plant biomass to yield bioproducts

      • "omics" research to enhance input/output traits for desired product streams encompassing total use (crops, microbial); this could span all areas of bioenergy, biofibre/biocomposites, or biochemicals

      • Catalytic combustion/conversion of biomass

      • Integration with existing chemical production (e.g. understanding of petroleum processes and opportunities)

      • Nanotechnology-based approaches for purification and aptamers (binding molecules)

      • Fractionation of processed food/feed/specialty crops to capture very high value co-products which remain after processing (biochemicals) and conversion technologies have been utilized

      • Total utilization and integrated production of food /feed/ specialty crops and high value/added value co-products

      C. Bioproduct Development Research is defined as research undertaken with the objective of incorporating the science (if successful) into particular product applications. The product may be entirely bio-based, an ingredient substitution, or biomass used in combination with fossil fuels. The bioproduct must have potential value to agriculture in Ontario. This includes products made from southern Ontario woodlots but not boreal forests; forest products/residuals may be a component or part of a blend but a product which is 100 per cent from the boreal forest is not included in this definition of Bioproduct Development Research.

      
      OMAFRA would benefit from research as a result of collaborations with other Ministries and universities in Ontario which are recognized leaders in research under this component.

      Examples of research that might be considered under this research area include but are not limited to:

      • Value added bioproducts (plastics, complex chemicals, high-end bio-materials, enzymes, enabling bio-technology such as microbial tools/products for bio-remediation and to drive bioprocesses)

      • Next generation bio-fuels - bio-diesel, higher-chain alcohols (less hydroscopic and easier to separate from water than ethanol), enhanced biofuel feedstocks with less lignin content (allows easier enzymatic digestion into sugars); bioalcohol from ligno-cellulosics

      • Safer biochemicals from corn, soybeans, other crops, and agricultural residue streams, as substitutes for petrochemicals

      • High performance micro-fibres, nano-fibres and carbon fibres for light- weight, structural composite applications

      • Bio-fillers, composite reinforcement fibres, and biochemicals from low cost agricultural residues and biofuel co-products streams

        D. Policy Research is defined as research on the short and long term implications of government policies including policies that are perceived to be disincentives to the competitiveness of the bioeconomy. The Bioeconomy-Industrial Uses theme includes micro-scale policy (e.g. regulatory definitions of types of biomass, consumer perceptions of bioproducts) but not macro-scale policy (e.g. value of Canadian dollar, international trade agreements).

        Examples of research that might be considered under this research area include but are not limited to:

        • Economic research on bioproducts to drive policy decisions. A particular high-priority area of policy research would be identification and removal of any barriers to the full utilization concept.

        • Research into sustainability and life cycle impacts, which can be integrated into planning stages of research projects. This research would consider the short and long-term implications of bioproduct development with a view to competitiveness.

        • Identification of incentives and disincentives for new/improved crops; design of policies and programs to remove/reduce disincentives and increase the impact of incentives (done well, this could be a competitive advantage for Ontario).

    Note that proposals which include proof-of-concept research directed to agriculture should be explicitly included as eligible projects. Given that there are other research funds (e.g. NSERC) for basic research, the emphasis in research proposals is expected to be on applied or adaptive issues.

     

    4.0 Critical Success Factors

     

    4.1 Description of Critical Success Factors

    Ability to Shape Organizational Structures and Responses, which include:

    • Purposeful collaborations --- the ability to partner across institutions (scientific disciplines, universities, government departments, and industry sectors) to achieve synergies and convergence of knowledge, expertise and technologies

    • Flexibility in program design and delivery --- integrative programs that encourage interdisciplinary research (e.g. Bioproducts Research funding, The Sustainable Bioeconomy Centre at Queen's University)

    • Research investments being driven by both applied (industry-driven) and strategic (government policy-driven) goals, and being targeted to larger multidisciplinary research projects

    • The ability to create critical mass and investment in a priority research area to ensure success and global leadership

    • Research funding processes: less cumbersome funding models and application processes, increased funding levels and time-spans. There is also an opportunity to build in clearly defined quantitative milestones in projects (especially important for multi-year projects)

    • Timely decision-making on funding decisions to ensure that research can be undertaken in a timeframe in keeping with the global competitive environment

    • Continuity among decision-makers: The bioeconomy is a very knowledge intensive field. OMAFRA needs to provide more continuity in bioproduct specialists and senior management. After someone gets up to speed, the ministry rotates them through other positions and the process of getting someone else up to speed starts all over again

    
    Ability to Adapt Key Parts of the Value Chain:

    • Changing transportation modes: (e.g. encourage movement from road transportation to rail and water, or multi-modal systems)

    • Modified Use of Production and Processing Environments --- from redeployment of 'marginal' lands to new/improved crops, and use of greenhouses for feedstock optimization studies to smaller-scale technologies used close to source for primary processing (e.g. initial component separation, densification)

    • Application of integrative concepts in processing technology and commercial settings: such as 1) the hybrid economy concept, 2) total utilization and biorefinery concepts 3) technology convergence 4) interdisciplinary research and development and 5) Cradle to Cradle and Reuse, Reduce and Recycle product development

    
    Ability to Deliver Highly Qualified Personnel (HQP):

    To support and to meet the requirements of the rapidly growing bioeconomy-based industrialization globally, human capital with adequate knowledge and training must be created. Special emphasis should be given in developing new graduate level educational program in bioproducts and engineering themes. Coordinated federal-provincial action could deliver this. However, the Panel believes that primary responsibility for ensuring that the Province's HQP needs are met rests with the Ministry of Training, Colleges and University and the Ministry of Research and Innovation. OMAFRA should be a contributor to the program development processes of those ministries.

    
    Ability to Develop and Implement Supportive Policy:

    While demonstrating accountability for public investment in agricultural research, encourage appropriate levels of R&D and innovation investment in bioproducts, adopt a life cycle perspective across all policy areas, introduce procurement policies which support domestically-produced bioproducts, encourage investment incentives into bioproducts, and introduce regulations which support production, manufacturing and commercialization of Ontario bioproducts. Another important element of the policy environment is balancing IP protection while adding to the pool of public knowledge and supporting public education and outreach. The Panel believes that Ontario has an opportunity to be a leader (like California) on the policy and regulatory aspects of a successful bioeconomy.
    

    Ability to Target Collaborators and Customers:

    By continuing to work with/engage innovative large firms while increasing emphasis on stimulating growth of small and medium-sized enterprise (SMEs) which can serve as pilot sites for new feedstocks, processes and products, are often more nimble in their competitive response than larger enterprise, and may be more directly linked to local/domestic markets.

     

    5.0 Other Related Considerations and Recommendations

     

    5.1 Considerations

    • Create momentum behind initiatives OMAFRA is funding. Build networks and work collaboratively.

    • Review the research priorities from other themes and identify cross-cutting research priorities (e.g. a research priority which addresses a need in the food or feed sector but could also inform industrial uses of agricultural biomass). Themes such as production systems, value chain and rural policy are likely to have areas of overlapping interest. Note that of the eight themes mentioned in the Challenge Paper, the first five are complementary.

    • Create forums for issues beyond research funding (e.g. food versus fuel, food versus bioproducts); the private sector has the same concerns. Researchers need to be engaged in these discussions too.