The bioeconomy – a chance to make the most of Latvia's potential - Zeme un valsts
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The bioeconomy – a chance to make the most of Latvia's potential

In mid-January, Riga hosted an event that marked an important moment for both the Latvian and the European economy – construction began on Europe's first commercial bio-resin plant.

The plant is being built as part of the international “VIOBOND” consortium project, which is co-funded by the “Horizon 2020” research and innovation fund and led by “Latvijas Finieris”. Using lignin, a by-product of wood processing, it will produce 45,000 tonnes of resin a year. These bio-resins will be a more sustainable alternative to the fossil-based resins currently used in construction and interior design, including in the manufacture of plywood panel adhesives, sandpaper, and binders for coatings and insulation.

The future “VIOBOND” plant in Riga is one of the first 20 facilities of its kind supported by “CBE JU”, producing a range of bio-based products and materials from locally available biomass. Projects such as “VIOBOND” have great potential to increase the value of wood products made in the country and to share knowledge about this production model with other countries in the region.

Achieving this requires close cooperation between everyone involved in the value chain, including farmers, foresters, researchers, technology innovators – often small companies – and representatives of large industries who can bring new solutions to market. The company “Fibenol” in Imavere, Estonia, at the “SWEETWOODS” biorefinery whose construction was also supported by “CBE JU”, is working to adapt lignin produced in Estonia for use within the “VIOBOND” project. The “VIOBOND” partners use lignin to create new, innovative products from its components, thereby building a broad regional value chain founded on bio-based production.

The innovative “VIOBOND” concept is an outstanding example of how the European bioeconomy could work. First, it shows how to create value from an under-used resource. Lignin, a component of wood, is the second most common biopolymer in the world after cellulose. Yet at present this by-product of the timber industry is mainly burned as fuel to generate heat and electricity, and less than 2% is used to create higher value-added products. The new production process at the “VIOBOND” plant will increase the value of lignin at commercial scale by at least five times.

Second, bio-resins will make it possible to create more sustainable products for consumers in the construction and interior design sectors. The shift to circular bio-based production will also reduce greenhouse gas emissions, which means benefits for both our planet and the future.

Third, by encouraging the use of renewable materials, the biorefinery will help reduce the dependence of European industries such as woodworking and adhesives manufacturing on fossil energy. In today's geopolitical context, diversifying supply chains is essential to ensuring Europe's competitiveness, the resilience of local businesses and, ultimately, the size of our wallets.

The potential of the circular bioeconomy, however, extends well beyond the forestry sector. In a circular bioeconomy, industries produce sustainable materials and products from a variety of renewable resources, including organic waste from agriculture, aquaculture, the food industry and households. These new solutions replace the non-renewable feedstock sources that are still widely used today. The biotechnology industry will help Europe move towards a competitive, low-carbon economy and will create new highly skilled jobs in the regions that need them most.

The bioeconomy currently employs around 3.3 million people, and its turnover across the 27 EU member states exceeds 725 billion euros[1]. The development potential of this growing sector is recognised in the EU Bioeconomy Strategy, which will be updated this year, as well as in national and regional bioeconomy strategies.

How can we meet these strategic goals and bring bio-based innovations to market? In my view, there are three decisive success factors: ensuring that every participant in the bio-based production value chain is involved, reducing the risk associated with investment in scaling up production, and establishing a stable and supportive legal framework. To achieve these aims, the EU and the Bio-based Industries Consortium (BIC) have joined forces in the “CBE JU” public-private partnership, and the first results are promising.

Since 2014, the partnership has supported more than 190 projects in over 40 countries. These projects have so far produced more than 200 new bio-based materials and chemicals, including ingredients, 100 products and more than 180 new bio-based production value chains across Europe. Moreover, every euro invested in the projects has attracted around three euros from the private sector, showing that the partnership model is capable of mobilising private investment.

Some successful examples of bio-based products supported by “CBE JU” include a “Carlsberg” beer bottle made from agricultural waste, which preserves the true texture of the beer 8 times better than conventional bottles; a fully recyclable swimsuit made from sugar beet residues; and “Ecover” cleaning products made from potato peelings, supermarket food waste and lemon, mint and sugar beet pulp. Biotechnology is used across every industry, from textiles to food, and I am fully convinced that almost any product we need can be made in a sustainable and innovative way. Choose biotechnology products!

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