BioRevolution #3 - Circular Bioeconomy

When we say biotechnology, biology, etc., we don't usually think economy. I asked ChatGPT what is the economy, and it answered "Economy refers to the system by which goods and services are produced, distributed, and consumed within a society". We produce, distribute, and consume bio-based products, plus we can do this circularly. Welcome to the world of the circular bioeconomy, an innovative economic model that stands as a beacon of hope in addressing pressing global challenges such as climate change, biodiversity loss, and social inequality.

Circular Bioeconomy

At its core, the circular bioeconomy strives to ensure sustainable well-being by managing biological resources, including plants, animals, micro-organisms, and biomass, in a way that is both environmentally friendly and economically viable. This model relies on the stewardship of healthy, biodiverse ecosystems and presents a shift towards a climate- and nature-positive economy.

The potential economic impact of embracing a circular bioeconomy is staggering. Sustainable forest management alone can unlock $230 billion in business opportunities and generate 16 million jobs by 2030. Shifting energy and extractive systems towards circular and resource-efficient models could result in $2.3 trillion in business opportunities and 30 million jobs by the same year. Moreover, integrating nature into infrastructure and built environments may create $3 trillion in business opportunities and 117 million jobs by 2030. [...]

Global Initiatives and Leadership

The Biden-Harris Administration has taken significant steps to advance biotechnology and biomanufacturing in the United States, emphasizing sustainability and security through the Executive Order on Advancing Biotechnology and Biomanufacturing Innovation. The National Biotechnology and Biomanufacturing Initiative was launched to advance American biotechnology and biomanufacturing in health, climate change, energy, food security, agriculture, supply chain resilience, and national and economic security. [...]

Similarly, the European Commission has developed a comprehensive bioeconomy strategy with five key goals, ranging from ensuring food and nutrition security to strengthening European competitiveness and creating jobs. The action plan outlines 14 concrete steps to accelerate the deployment of a sustainable European bioeconomy.[...]

A review paper titled "Mapping 3R and Circular Economy Policy Implementation in Asia and the Pacific" highlights the varying degrees of circular economy policy implementation across the region. While some areas are making significant strides, others are in the early phases, with a common challenge being the lack of concrete policies addressing emerging waste. [...]

Geographical coverage of coded bio-related policy documents

🚨Groundbreaking News: WBCSD – World Business Council for Sustainable Development highlights the potential of the circular bioeconomy. The report estimates that the circular bioeconomy presents a $7.7 trillion opportunity for businesses and is a key element in the fight against climate change, biodiversity loss, and resource scarcity. The report also features a dozen business case studies and a tool to help assess the sustainability performance and economic viability of new products.

Circular Bioeconomy in Practice

The circular bioeconomy integrates circular economy and bioeconomy principles to create a regenerative system where biological resources are efficiently utilized, waste is minimized, and the value of products and materials is prolonged. This approach underscores the sustainable use of resources, including agricultural waste biomass, and advocates for the reduction, recycling, and reuse of generated wastes and by-products.

Regenerate Natural Systems: This principle focuses on restoring and regenerating natural ecosystems to promote biodiversity and sustainability.

Biorefinery Models: The development of waste biorefinery models is a key aspect of circular bioeconomy principles. These models involve efficiently extracting value from biomass, including agricultural waste, through processes like bioconversion, fermentation, and other biotechnological methods.

Industrial Symbiosis: Circular bioeconomy promotes industrial symbiosis, where different industries collaborate to share resources and by-products, creating a synergistic relationship that reduces waste and enhances efficiency.

Clean, No-Waste Production: The concept of clean, no-waste production is crucial. It involves designing production processes that generate minimal waste and pollution, contributing to a more sustainable and environmentally friendly system.

🚨Groundbreaking News: World BioEconomy Forum (WCBEF) has observed traction in the bioeconomy landscape, including:

• An increased number of bioeconomy strategies. There are already close to 60 national bio strategies and several regional bio strategies.

• The value of the bioeconomy is increasing. Schmidt Futures reports it may be even $30 trillion by 2030. Countries like the USA have projected values for the bioeconomy; in some countries, the granularity is at the state level. The state of Para in Brazil estimates their bioeconomy value at $120 billion.

• There is also increasing discussion on product safety and acceptance, supply chains, traceability, feedstock availability, etc that would benefit discussion at the global level.

Key Player Companies

1. Novozymes

The market cap is $15.01 billion

Novozymes specializes in producing enzymes and microorganisms for various industries. The company’s focus is the research, development, and production of industrial enzymes, microorganisms, and biopharmaceutical ingredients. Novozymes is the world leader in biosolutions, and together with its customers, it helps grow businesses, safeguard the planet’s resources, and make lives better.

2. DSM

DSM Biomedical is a global leader in the production of biomaterials for the healthcare industry. The company provides a wide range of biomaterials, including hydrophilic coatings, medical polyurethanes, natural biomaterials, polyethylenes, and sustained drug delivery. DSM Biomedical has 25 FDA Material Master Files available to support regulatory submissions. DSM Biomedical’s biomaterials are used in a variety of therapeutic areas, including diabetes, disease prevention and management, orthopedics, and vascular disease.

3. Ecolab

The market cap is $55.88 billion

Ecolab provides water, hygiene and infection prevention solutions and services. They offer a wide range of products and services that help make the world cleaner, safer and healthier. Ecolab’s services are used in various industries such as chemical processing, commercial laundries, food and beverage, healthcare facilities, hospitality, life sciences, manufacturing, mining and mineral processing, power generation, primary metals, pulp and paper, refineries and fuel additives, retail, and transportation.

4. DuPont

The market cap is $32.97 billion

DuPont focuses on innovation in various industries, including agriculture, materials science, and biotechnology. They are known for their work in protective equipment, clean water, semiconductors, and more. Dupont has a strong commitment to sustainability and innovation, and they have earned a perfect score in the Human Rights Campaign Foundation’s 2023-2024 Corporate Equality Index.

Startup Ecosystem

1. Bioelektra Group

Poland based company

Bioelektra Group specializes in the production of biofuels and biogas from organic waste. They have developed a technology called ART (Advanced Recycling Technology) of Municipal Solid Waste that recovers everything that can be used again and recycled, such as glass, plastics, metals, minerals, fuels, and biomass to be used as fertilizer or fuel. They also offer a mechanical heat treatment of waste that sterilizes waste to eliminate odors and can be located closer to the waste source than any other alternative.

2. CARBIOS

Founded in 2011

France based company

Carbios specializes in the design and development of enzymatic processes to rethink the end-of-life of plastics and textiles. They are pioneers in the field of circular economy in plastics and have developed a unique biological technology that fundamentally changes the circularity of fibers. Their enzymatic recycling process uses an enzyme capable of specifically depolymerizing the PET (polyethylene terephthalate) contained in various plastics or textiles.

3. MycoWorks

Founded in 2013

USA based company

MycoWorks produces leather-like products using a process involving mycelium. MycoWorks’ technology, Fine Mycelium™, is a breakthrough in materials science and biotechnology that uses mycelium to create sustainable materials. Mycelium is the vegetative part of a fungus that grows underground and acts as a natural glue, binding together organic matter. MycoWorks’ Reishi™ material is a leather alternative made from mycelium that has luxury brands excited because of its remarkable quality.

4. AeroFarms

Founded in 2004

USA based company

AeroFarms uses innovative indoor farms and aeroponic technology to grow flavorful microgreens. Their FlavorSpectrum™ represents a range of flavors and varieties. As a Certified B Corporation, AeroFarms aims to improve the food system with sustainable vertical farming, advanced technology, and superior traceability. Their indoor growing methods result in high-quality produce with minimal water usage, land requirement, and pesticide use compared to traditional farming.

5. traceless materials

Founded in 2020

Germany based company

Traceless Materials offers traceless, an innovative biomaterial solution made from agricultural plant residues. The fully biobased and plastic-free materials are home compostable. With a scalable and environmentally friendly production process, traceless saves 91% carbon emissions and 89% fossil energy demand compared to conventional plastics.

Future Perspective

-Photosynthesis serves as the foundation for circular bioeconomy. As we progress, we're discovering more effective methods to transform sunlight into energy and products. This spans from innovative techniques like breeding & cultivating climate-resilient crops to processes such as biorefining and efficient biomass conversion. Efforts are also underway to enhance energy retention in soil. The agricultural sector is increasingly embracing regenerative farming, as emphasized by initiatives like the COP28 Action Agenda on Regenerative Landscapes. In biotechnology, precision fermentation emerges as a key solution for both food and specialty chemicals, addressing challenges in food security and sustainability. Moreover, the biomaterials sector is making strides in sustainable packaging, with notable progress in transforming paper into alternatives for plastics.

by Hakan Karan , European Circular Bioeconomy Fund (ECBF)

-Reducing food waste and recycling requires a lot of dedication, as well as innovative economic models and incentive systems, as well as coordination and communication between many stakeholders. Achieving circularity requires strong governmental interventions that put sustainable technologies into reality and offer reliable and strong incentive systems. With more than 60 million tons of wasted food exported annually—less than thirty percent of which are recovered in any value retention pathway—the United States ranks third in the world for food waste exports. Research is obviously needed to help shape US policy that will support CE solutions for waste food management at the formulation and execution stages.

by Michael Remon Abdelmalk , MU Group

See you beyond circular bioeconomy :)

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