Circular Bioeconomy in FinlandKari Herlevi, 13th of October 2015

Finnish Innovation Fund SitraWorld Resources Forum

2Sitra • Kari Herlevi • 13th of October 2015 •

Oil related risks are increasing… …BUT OUR FORESTS ARE FULL OF ”CIRCULAR GREEN GOLD”.

Peak oil?

Availability?

Dependence on imports

Carbon asset risk

…as are the risks related to many other resources…

Future price?

Graph data: EIA

Source: McKinsey – Resource Revolution

Circular Economy potential in Finland

3Sitra • Kari Herlevi • 13th of October 2015 •

2-3 billion euro potential annually, by 2030

(Sitra, McKinsey, Gaia Consulting)

Some Circular Economy opportunities for FinlandSources: McKinsey, Gaia Consulting

Sitra • Kari Herlevi • 13th of October 2015 • 5

Annual value of key opportunities identifiedEUR millions by 2030

Forest, pulp and paper industries

Minimisingfood waste

Sharing and second hand market

Machinery & equipment industry

Total ~1,8 mrd. €

Construction sector

375

230

165

450

255

310

1785

Nutrient circulation

Paradigm shift – from consumption of nutrients to a nutrient economy

Sitra • Kari Herlevi • 13th of October 2015 • 5

6

Fertilising service concept is a key to the adoption of recycled nutrients

Sitra • Kari Herlevi • 13th of October 2015 •

The economic net value for Finland:EUR 70 million/year

Source and graphics: Gaia Consulting

7

Sybimar’s closed circulation concept combines energy and food production

Idea: Closed circulation concept produces energy, fish and vegetables, and can be tailored according to local, prevailing conditions.

Source: Sybimar.fi

Sitra • Kari Herlevi • 13th of October 2015 •

8Sitra • Kari Herlevi • 13th of October 2015 •

Remarkable potential in the utilization of pulp and paper industry’s side streams: 230 million €/year by 2030

Functional Products

EUR 210-220 million

Process Waste Streams

EUR 10-20 million

Drop-in Products

(value not estimated)

Source: McKinsey

UPM is a global company in forest industry.

Idea: Wood (forest residues) based biodiesel which generates up to 80 % less CO2-emissions compared to fossil fuels.

Refining and production at commercial scale, 100 000 tonnes per year, began in Finland in 2015.

9Sitra • Kari Herlevi • 13th of October 2015 •

Forest-based biofuelsby UPM

Source: Upmbiofuels.com

Metsä Fibre, a company in forest industry, will invest EUR 1.2 billion on bioproduct mill.

Idea: In addition to 1.3 million tonnes of pulp production per year, the mill will produce many other bioproducts, such as tall oil, turpentine, and bioenergy. All raw-materials and side streams will be 100 % utilized.

10Sitra • Kari Herlevi • 13th of October 2015 •

Metsä Fibre’s next-generation bioproduct mill

Source: Metsä Group - Bioproductmill.com

Finnish company, established in 1992.

Idea: Fully biodegradable and harmless wood marking color and lubricant products produced from the side streams of forest and food industry.

Jarmat’s products provide better performance than mineral oils.

Biodegradable marking and lubricants by Jarmat

Sources: Jarmat.fi, Ympäristömerkki – Annual publication, Sitra • Kari Herlevi • 13th of October 2015 • 11

Idea: Production line for new wood building elements (LVL panels) which can be used, for example, as load-bearing beams.

The company already offers CLT products for walls, roofs and ceilings.

12Sitra • Kari Herlevi • 13th of October 2015 •

Stora Enso promotes wood construction

A house of CLT (cross laminated timber)

Sources: Stora Enso, Woodproducts.fi

The production of LVL panels (laminated veneerlumber) will start in Q2/2016

13Sitra • Kari Herlevi • 13th of October 2015 •

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5. Vision includes three themes,

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Building a successful Finland for tomorrow

15Sitra • Kari Herlevi • 13th of October 2015 •

Overall estimation of annual economic added value through more efficient nutrient circulation in Finland, 2013*

0

100

200

300

400

500

600

MEUR

70

50

40

150

200 510

*Based on selected examples and demonstrates annual net change on 2030. Source and graphics: Gaia Consulting

M€/y

Fertiliserleasing

Broad beans as a replacement for imported soybeans

Feed from low-value fish

Biogasification as a driver of nutrient cycling

Benefits from the reduced eutrophication of the Baltic Sea

Total EUR 510 million

310

16Sitra • Kari Herlevi • 13th of October 2015 •

Do we wear forest-based textiles in the future?

Photo: Knowpap.com Photo: Treehugger.com. Marimekko’s birch fiber based Allu dress was introduced in 2014.