Description
Representing up to EUR 863 billion in value added in 2023 and employing around 17.1 million people, the bioeconomy is a key driver of EU’s competitiveness in terms of innovation, green transition and resilience. Despite its growth potential and significant R&I expenditure, financing gaps across the value chain prevent companies from scaling-up and reaching full market deployment, which exposes Europe to a risk of leakage to the United States and other regions. Two 'valleys of death’ have been identified at the demonstration stage, that is at Technological Readiness Level (TRL) 5-7 and at the commercialisation or industrialisation stage (TRL 7-9).
The CCT Pilot on biobased industry aims to address these two ‘valleys of death’ starting by driving demand for biobased materials at the commercialisation or industrialisation stage and ensuring that start-ups have access to sufficient plant capacity and demonstration facilities to test their new products. In line with the Strategy for a Competitive and Sustainable EU Bioeconomy, efforts will be focused on five lead markets for materials: biobased plastics and polymers, biobased fibres and fabrics, biobased chemicals, biobased construction products, biobased fertilisers and plant protection products, and on three lead markets for technologies: biorefineries, advanced fermentation and developing permanent storage of biogenic carbon.
The first pillar of this project will support both the extension of existing and the creation of additional biomanufacturing capacity, with a focus on demonstration infrastructures (TRL 5+), to test new bio-based products, as well as on production facilities (TRL 7-9). Investments are estimated at EUR 1-2 billion. The second pillar of this project relies on the creation of the ‘Bio-based Europe Alliance’ (BEA), a voluntary alliance of corporations to ensure a reliable and predictable demand for biobased materials and products. Offtake agreements secured by producers will reassure private investors on their investments, including in CAPEX-intensive facilities. The BEA will gather, as soon as 2026, client companies committed, through pledges, to purchase bio-based materials, products and applications worth EUR 10 billion by 2030.