Bioecomy in Finland

Jarmo Heinonen25.5.2018

OUR MISSION ISGROWTH, RENEWALAND SUCCESSINTERNATIONAL GROWTH

BEST ECOSYSTEMSIN THE WORLD

Tools• Research and innovation funding• Guidance and coaching• Networking and contacts• Expertise and vision of our domestic and

international networks• Theme choices and programs

Promoting InnovationPromoting ExportsAttracting investments and travelers

BUSINESS FINLAND’SGLOBAL NETWORK

Silicon ValleyStamfordWashington DC

Mexico CityLimaRio de JaneiroSao PaoloSantiago de Chile

HelsinkiyStockholmOsloCopenhagenSt. PetersburgMoscowWarsawBrusselsLondonMunichViennaBucharestMadridIstanbul

LagosAbujaNairobiJohannesburg

AlmatiNew DelhiDubaiRyiadh

BeijingShanghaiTaipeiGuangzhouSeoulTokyo

Ho Chi MinhKualaLumpurJakarta

40 locationsglobally and 20 inFinland

4

THEMES AND GOALSTowards common innovation, invest and export propomotion services*

*Situation 02/2018

Cross-cutting• Digital transformation• Developing markets• New value creation• Arctic

Bio and circular economy

Cleantech

Digital

Consumer business

Travel

Health and wellbeing

Finland to join growing consumerbusiness

Clean comprehensive solutions andbeing the forerunner

High value-add, sustainable solutionsto meet global demand

Growing individualized health business and attractiveecosystems

New business and growing exportswith digital leap

Harnessing our techological vision for globalmarkets

Widening scopeFor horizon 2-3

SmartEnergy

Intelligent andEfficientBuildings

Safe andHealthy Food

Innovative Bio- andMulti-life Products

BlueGrowth

SmartLow CarbonMobility and

Logistics

Smart andFlexible

Manufacturing

Bioeconomy, Circular Economy and Cleantech Focus Areas - 2018

Food fromFinland Bionets

InnovativeBioproducts

New businessfrom

Circulareconomy

Smart Energy

W2E, Bio, RES,Smart Grids

Batteries fromFinland

Smarttransportation

Led byICT&Digi

Sampo-

Produced inFinland

Arctic sea &Maritime &offshoreindustry

Agrotechnology

Wood fromFinland

Water byFWF

Winter Sports2020

Cleanweb

Mining by GTK

SmartBuildings

Sustainablecities

Output€64bn

Share ofemployment

11%

Share ofexports

26%

Bioeconomy’s significance for Finland

Finland seeks to increase itsbioeconomy output to100bn euros by 2025 and tocreate 100,000 new jobs inthe process.

Bioeconomy combineswood processing,chemistry, energy,construction, technology,food and health.

Forest based bioeconomyaccounts for 2/3 of theturnover

Understanding the magnitude of the forest industryin Finland compared to some other countries

Value (€) of forest industry exports per capita and its share of totalexports

0 500 1000 1500 2000 2500

Finland

Sweden

Austria

Canada

Norway

Germany

France

USA

Forest industry exports / totalexportsFinland 20 %

Sweden 13 %

Austria 8 %

Canada 10 %

Norway 2 %

Germany 3 %

France 2 %

USA 2 %

SOURCE: Finnish Forest Industries Federation; Statistics Finland

SOURCE: Finnish Customs14.2.20188

Finland's top export products 2017Paper and paperboard6,9 bill. EUR1. Wood pulp

2,0 bill. EUR5. Softwood sawnwood1,9 bill. EUR6.

2. Diesel fuel4,5 bill. EUR

3. Stainless steel2,7 bill. EUR

8. Electric generatorsand motors

1,4 bill. EUR

4. Motor vehicles forpersonal transport 2,4 bill.EUR

7 Ships and boats1,5 bill. EUR

10. Special machinery1,1 bill. EUR

9. Earth movers and excavators andother similar machinery1,2 bill. EUR

Finnish companies have strong know-how on bio-based raw materials.In business, the customer orientation is the key. Circular economy anddigitalization change the game: new possibilities, new business models and newrules – opportunities for all. The key is in the new global ecosystems.

Valu

e Volume

Pharmaceuticals,Fine Chemicals

Food, Feed

Transportation fuelsPower and Heat

Bulk chemicalsPerformance Materials,

Fertilizers

Healthcare andLifestyle

Nutrition

Chemicals andMaterials

EnergyCIR

CU

LAR

BIO

ECO

NO

MY

DIG

ITA

LISA

TIO

N

With whomshould oneco-operate?Game changers

are digitalizationand circular

economyHow to performbest innetworks ?

Bioeconomy and Cleantech Programmes in theperiod of 2007-2017

2016 2017

Smart Energy2017-2021100Meur

Bionets2016-2018

80Meur

Innovation Funding for Bioeconomy Projects 2006 –2016

565 Funded projects

304 Funded Companies

55 Meur annually

6 Bioeconomy Programmes

BIOECONOM

Y

Innovation Funding for Biofuel NEXBTL

0

1

2

3

4

5

6

7

8

9

2000 2005 2010 2015

Mill. EUR

Tekes (indirect NEXBTL) Tekes (direct NExBTL)

Neste (indirect NExBTL) Neste (direct NEXBTL)

Total 64 Mill. EUR (Tekes 25 Mill. EUR, Neste 35 Mill. EUR, other 4 Milj. EUR)

Neste renewable fuels totalturnover was 3243 MEUR andprofit 561 MEUR in 2017,Source: Neste Q4 report

Bioeconomy andCleantech - BusinessFinlandFunding forStart-Ups

During last three years all together120 companies

Investments BF Funding

100 Meur 45 Meur

Bioeconomy & Circular Economy GrowthPrograms

• Agrotechnology from Finland – since 2.2016• 20+ companies, markets e.g. Poland, Belarus, Kazakhstan, Iran, Bulgaria

• Innovative bioproducts – since 2.2016• 20+ companies, a lot of start ups, new value added products• Supporting companies with export, to get growth capital and investments in

Finland• In close co-operation with BioNets

• Food from Finland – since 12.2014 in• 130 members, covers almost all the export of food industry• Fairs really important tool, companies pay typically 50% of the costs related to

fairs• Wood from Finland – since 4.2015

• 20 saw mills, representing more than 50% of the total Finnish sawn millcapacity

• Main target market china, new markets and applications in china• 2019 no funding by Business Finland, Saw mills continue in China

5/30/2018 © Finpro 14

01/2018 DM 1973650

Bionets – Innovative Bioproducts

Nutrient recycling

Packaging valley

New cellulose andfibre products Lignin ecosystem

Telaketju – textileecosystem

…where large scalecompanies, SME’s andresearch organisationsco-operate.

Ecosystem includes allrelevant actors fromraw material producersto technologycompanies, end usersand customers.

Five new ecosystems aiming at international businesshave started…

WORLD IDEAS

Thank You!