Driving the Bioeconomy Down Under
The Bioeconomy Downunder
by Alexander A. Koukoulas, Ph.D.
While the bioeconomy in the United States faces an uncertain future, other parts of the world are rapidly expanding initiatives to strengthen their bioeconomy industries. Take, for example, the Down Under State of Queensland. This coastal State in Australia has outlined a very ambitious goal to leverage its comparative advantages in geography, agriculture, and an advanced workforce to become a center for the production of bio-based fuels and chemicals.
Expression of Interest
Recently, the Government of Queensland announced an invitation to bioeconomy developers to submit an Expression of Interest. The State is welcoming developers interested in developing manufacturing capabilities in Queensland to express their intent. The State will leverage its considerable resources to support development with the State, including direct financial support.
Queensland - Australia's Bioeconomy Center
Queensland, the second-largest state in northeast Australia, has an emerging industrial biotechnology and bioproducts sector that is eager for growth. The State has clearly articulated its commitment to the bioeconomy in a detailed strategic plan that provides a framework for development and commercialization, including the creation of a Biofutures Industry Development Fund, a competitive funding pool to assist companies with reaching bankable feasibility. In addition, the State has worked to establish a robust feedstock infrastructure including sugarcane, agricultural and forestry waste, as well as sweet sorghum. This has lead to some early successes including three commercial biorefinery plants producing ethanol from molasses and sorghum and bio-diesel from animal fats and oils.
While current mandates for renewable fuels are relatively modest—gasoline contains 3% ethanol, increasing to 4% in 2018—the intent is to both increase domestic targets and grow exports. Moreover, the State embraces the idea that the world is on the verge of a bioeconomy transition that will drive demands for bio-based chemicals. State officials look to World Economic Forum (WEF) predictions for biomass-derived fuels, energy, and chemicals to generate at least $230 billion to the global economy by 2020 and they are committed to be a participating in this value creation and realizing at least $1 billion in new economic activity in this sector within this time frame.
The State seems to be taking a broad view of the bioeconomy under the “Biofutures” framework, which refers to all segments of the industrial biotechnology and bioproducts sectors. Any innovative approach to converting sustainable organic and/or waste resources, rather than fossil fuels, is considered fair game. The State is encouraging the development of new feedstock value chains including: macro- and micro-algae, plantation forestry, and carbon-rich waste streams. Desired outcomes include the expanded production of bio-based chemicals, fuels, synthetic rubber, cosmetics, detergents and textiles.
Why Queensland?
Queensland has a subtropical and tropical climate providing ideal conditions to produce a range of feedstocks with high yields on a year-round basis. Specifically, the ability to competitively produce some of the world’s most energy-dense and productive feedstocks such as sugarcane, eucalypts and algae. Additional feedstock includes red and sweet sorghum, native grasses, crop stubble, cassava, agave, and pongamia.
A mature and modern agricultural industry with well-established supply chains from farm gate to markets.
Connection to international markets through reliable and efficient infrastructure, including 7 bulk shipping terminals.
Ideal positioning at the gateway to the Asia-Pacific and close economic ties with expanding Asia-Pacific markets.
The State is also offering numerous incentives to stimulate investment in the bioeconomy sector, including the Biofutures Industry Development Fund, a repayable fund to help well-advanced industrial biotech proponents to get large-scale projects through the final stage of financial due diligence to secure financing from investors.
Interested in developing projects in Queensland? The deadline for submitting an Expression of Interest is January 18, 2017. Please contact us for additional information.
© A2K Consultants LLC 2017