AGROBIOCLUSTER: Application mechanism of Bioeconomy in the 21 century

Introduction: Needs Analysis and Global Trends

1. BioEconomy is a strategic development goal of the XXI century because of the following moving factors:

• Growing demand of the power generation system and industry in cheap raw materials for energy security • Need for more efficient agricultural and regional development models • Growing environmental challenges • Contemporary technological advances make “impossible” things possible (especially in biotechnology, green chemistry and nanotechnology) • Need to ensure competitiveness in the conditions of globalizations

Introduction ctd.

2. Bioeconomy: is based on biotechnology and uses renewable bioresources for production of valuable products and energy, because:

 Industrial biotechnology can help make a biobased economy possible - renewable carbon from plants replace fossil carbon from dinosaurs; thus biology will replace geology and we will till instead of drill for our raw materials.

 Biotechnologies such as biocatalysts and bioprocesses can convert agricultural raw materials, namely, fiber, lipids (oils), and proteins into the products of advanced economies - fuels, chemicals, solvents, monomers and polymers, adhesives and other materials.

Renewable bioresources:

•

Plants

–

grains

–

wood

–

weed

•

Animals, fish

•

Microorganisms

•

Organic waste:

-

household

-

industrial agricultural forestry water

Conversion

Biotechnologies: Biocatalysis (ferments) Fermentation (microorganisms) Physical-Chemical Technologies: Extraction Pirolis Gas formation Industrial bioproducts:

•

Bioenergy / Biofuel

•

Bioproducts:

–

biochemicals

–

biodetergents

–

biopolymers

–

bionanomaterials

–

biolubricants

–

biological BAS

–

bioadhesives

–

biocatalysts

–

biosensors

Application: industries/products

“green chemistry” has developed

First Wave: Second Wave: Third Wave: Health System and Medicine

• Biomedicines • Vaccines • Diagnosticums • Artificial organs • Gene therapy

Agriculture and food industry

• Draught and disease stable grains • Functional feeding • Biofertilisers • Nutriceuticals

Bio-industry

• Biofuel and bioenergy • Bioproducts: -Biochemicals -Biopolimers -Biolubricants -Biocatalysts - Biosensors

Other sectors

• Informatics • Genomics • Nanotechnology

Application: based on microbiology

Grain Starch

-

Industrial ferments

α-amylase - glucoamylase - protease - lipase - cellulase - Pectinase etc.

Energy of water Glucose syrup Microbiological industry Fructose syrup

Sugar substitute

Fuel ethanol Vitamins

- riboflavin (B 2 ) - Ascorbic acid (C) - nicotiamide (PP) - kobolamine (B 12 ) -

Carotinoids

β-carotene - astacsantene - lycopene

Antibiotics Biomass of live cells

- Biocatalysis in chemistry - Cleaning of soil, water and air

Amino Acids

- L-lysine - L-threonine - L-tryptophane

Bio fertilizers Biopesticides

- bioinsecticides - biofungicides - Nitrogen fixer - biostimulators

Chemicals

- Milk acid - Lemon acid - 1,3 - propanediol - Thin products for pharmaceutical industry.

Polisacharides

- for technical needs - for food industry

Application: example of a bioderived product

Sorona 3GT:

polymer by DuPont and Tate&Lyle

Markets:

Fabrics, Fibers, Construction plastics

Surpasses polyester and nylon

: softer, easier dyed, stretch recovery, low prime cost, stable to dirt

OECD : 21 situational analysis of the advantages of using bioprocesses and production of bioproducts Organization of Economic Cooperation and Development www.oecd.org/biotechnology

• • • •

Implementation of biotechnology provides both economic and environmental advantages: 10-50% lower prime cost in many industries 10-80% lower energy consumption and emission of CO 2 e.g.:

– Green House Gas free biofuel - bioethanol, biodiesel, biogas; or – microbe leaching instead of high temperature roasting of ores in mining industry).

Saving water consumption by 20-50% e.g.:

– organic detergents in food industry; – excluding of chemical dyes in textile industry.

Considerable decrease of industrial pollution and emission of toxic substances and Green House Gases, e.g.:

– “green chemistry”; – biodegradable polymers; – lower use of chloral whitewashing of pulp in pulp and paper industry

Application: forecasts

Strategic Goals of USA in the area of biotechnologies 1) Biofuel:

 Increase use of

biofuels to 35 billion gal/year in ethanol equivalent by 2017

  (from ~ 5 today)

Source: James D. McMillan, Ph.D. National Renewable Energy

Switch 1/3 of total consumption of fuels to bio by 2030

2) Biorefineries:

 Integrated production and processing of pulp biomass into biofuel, energy and chemical products  Scientific and technological research aimed at creation of

commercial technologies of biorefinery by 2012.

Unlimited possibilities of bioeconomy: bioproducts and bioprocesses are aimed at changing of the traditional areas of industry, using chemical raw materials and chemical technologies 1) World market of biochemical products by 2020: $280 billion

20% ($280 bill/year) of the world market of chemical products ($1,4 trillion/year) will be substituted by bioproducts and biotechnologies of them $160 bill/year would be new products (

Estimation of McKinsey Group)

2) World market of bioenergy industry in 2050: $150 billion

30% of the world’s demand of energy would be provided by renewable sources The market of biomass needed for this demand will be $150 billion. (

Estimation of Royal Dutch Shell)

Compare: the World market of biopharmaceutical products forecast $50 billion in 2010.

How does it work?

The Biorefinery Concept is one of the ways to operate Bioeconomy

Are there any issues or barriers?

Major problem for BioEconomy

Unstable supply of raw materials needed for biotechnological production of new products/energy with the help of microorganisms!!!

Example: Biofuel 1 st Generation of Biofuel

Bioethanol (substitute of gas) is made of cereal crops: corn, wheat etc. Biodiesel is made of oil-bearing crops

2 nd Generation of Biofuel

Fuel is made of cellulose

: dried

waste products of agriculture, forestry, wood processing industry, household waste etc.

Can help Food or Fuel dilemma `

Why raw material is an issue

Increase in production of such Biofuels uses up arable land, eatable crops, increases prices on food and creates a dilemma:

FOOD or FUEL?

• Dried plant cells develop lignine (xylogen) coat to defend from microorganisms. Further disintegration of cells into monosacharides (material for biotechnologies) requires acid influence:

TOO EXPENSIVE!

• No cost-effective infrastructure for harvesting, transporting and storing of biomass:

TOO COMPLICATED!

Influence of Technologies on cost-effectiveness of making bioproducts

Type of Raw Material Storage Technology Processing Technology Cost of Processing Yield Transportation Technology Cost of Raw Material Profitability

Share of Raw Materials in the Structure of Prime Cost of Final Products • BioFuels – 50%-80% • Organic Chemicals – 45%-90% • Animal Feeds/Forages – over 60% • Cost of Raw Material consists of the costs of growing, harvesting, transportation and storage.

• Total Costs grow in logarithmic progression depending on the distance between the field and the processing site

What is required?

Green Energy from Green Mass

: shredded overground part of plants, collected during blossoming or budding phase: perfect raw material for Bioeconomy

“Green Mass” as Raw Material In green mass condition

plant cells contain easy fermentable sugars and little lignine, which makes them good raw material for biotechnologies and easy to digest feed for animals

Still another issue

The advantage of the “green mass” condition of plants is at the same time a drawback: plants preserve their useful qualities in this condition for only a short period of time: up to 2 hours, which is enough for small scale summer time production of biogas and cattle feeding:

EFFICIENT TRANSPORTATION AND LONG TERM STORAGE TECHNOLOGY

is needed

What we propose:

Business Project:

Integrated Technology of Cost-Effective and Scale Production of Organic Food, Bio-Detergents, Bio-Fuels and Organic Chemicals Based on two expediencies 1) Technological

Green Mass is not shipped long distance: equipment for its processing is installed at the place of its accumulation: the Energy Farm and the Biorefinery concepts are

bridged

into one concept

Agro-Industrial Enterprise (AIE):

•

Transportation and long-term storage know how’s and reduced cycle of spirits production know-how are creating the bridge

•

Energy of the Sun accumulated in plants is used efficiently for mass production of biofuels and bioproducts

•

70% of land - perennial forage crops.

2) Economic

• The prime cost green mass of perennial forage crops is the lowest of any other raw material • Higher yield and full utilization of green mass gives 4-8 times more energy and products per acre compared to cereal crops and traditional technology • Diversification of products with low prime cost minimizes risks and ensure quick payback • High cost efficiency and feasibility of creation of a multi industrial “AGROBIOCLUSTER” allows to involve resources of companies of oil, chemical, food and other industries

Three know how’s allow to connect this whole mechanism which is powered by the green mass and liquid organic fertilizers $0.19/gal BioFuel Grain/Straw

Organic Chemicals

Spirits Forage Chlorella BioDiesel

Green Biomass Technology of Transportation and Long Term Storage Liquid Organic Fertilizers

Waste Biogas Heat & Electricity Honey Fibres Forage Textile, paper, construction materials Organic Food Products Vermiculture Biologically Active Substances BioHumus BioDetergents, BioCosmetics, BioPharmaceu ticals

Which Perennial Forage Crops?

1. ASTERACEAE Family - Helianthus tuberosus L. (artichoke) - Helianthus tuberosus L. XH. annus L.

- Silphium perfoliathum L. (pilotweed) 2. BRASSICACEAE Family (cabbage) - Bunias orientalis L.

3. FABACEAE Family (legumes) - Galega orientalis Lam. (goat's rue) - Lathyrus silvestries x L. Latifolius (peevine) 4. MALVACEAE Family - Lavatera thurigiaca L.

- Sida hermaphrodita Rusby 5. POACEAE Family - Sorghum almum Parodi (Columbus grass) 6. POLYGONACEAE Family (buckweat) - Rumex patientia L.x. R. tianschanicus A. Los. (sorrel)

E.g. see reference on advantages of the perennial forage crops: "Perennial Forages as Second Generation Bioenergy Crops“ www.mdpi.org/ijms/papers/i9050768.pdf

Transportation and Long Term Storage Technology

Energy Farm

Bridge

Business Project Vision

Vermiculture Chlorella Biogas Plant Waste Spirits Forage

Integrated Mini Biorefinery Semi Finished Products

Organic Chemicals Electric Energy Biohumus Biofuels Biofuel (biodiesel) BAS (biologically active substances) Organic Food Biopharmaceuticals Fibres, Spirits Milk, Meat, Fish Other Bioproducts Honey, Sugar

Various Industries Biorefineries Finished Products The Agro-Industrial Enterprise Concept The AGROBIOCLUSTER Concept

The long term business project is complicated and should be implemented in stages At the 1 st stage

a Corporation is created in US/Canada with 55% contributed by Ukrainian founders in the form of nonmaterial assets: know how’s; and 45% contributed by US/Canadian founders in the form

of start up capital

. At this stage know how’s are patented in US/Canada and capitalized as the Corporation’s property.

A subsidiary operation in Ukraine designs models for patenting

At the 2 nd

stage the new property of the corporation, i.e. licenses to use patents are invested into a development and logistics company

At the 3 rd stage

the Corporation invests its licenses to Inter Sectorial Holding (transnational company)

At the 4 th

or ground stage, the Inter Sectorial Holding controls 100% of the subholding of Agro-Industrial Enterprises (AIE) and 50% of each derivate subholding in different industries who buy semi-finished products from the AIEs. AIEs, existing or newly formed industrial biorefineries and marketing network companies merge into an AGROBIOCLUSTER.

Subholdings in different countries

The primary producers, the farmers, invest farm land against ownership of 20%, which is 4-8 times higher income than what they make today with existing technologies

Your feedback will be much appreciated!

We will be happy to provide details and become reliable partners.

Contact person:

Mr. Anatoliy Furda,

Ukraine-Canada SBEDIF Business Center, NSCI.

26 Dnistrovska Str.

Ivano-Frankivsk, Ukraine Email: [email protected]

Tel.: +38 (0342) 55-20-22 Fax: +38 (0342) 55-91-56