Transforming agricultural residues into next-generation biofuels and biochemicals could create up to one million jobs in the EU27 over the next decade, while replacing up to 62% of the EU’s imported fossil gasoline with greener fuel, according to a new study release.
A new study documents the potential benefits that next-generation biofuels, If implemented on a large scale, will bring in terms of job creation, substantial economic growth, and a reduction in CO2 emissions, all while radically improving Europe’s energy independence.
The study "Next-generation ethanol and biochemicals: what’s in it for Europe” was released today by Bloomberg New Energy Finance with the support of Novozymes, the Danish bioinnovation company. and DSM, the Dutch Life Sciences and Materials Sciences company. The findings of the report were presented today at the conference "The Knowledge Based Bio-Economy", which took place in Brussels, Belgium.
“At a time when we're all striving to create jobs and ensure Europe’s economic future, this study shows the benefits of a transition toward green fuels. Next-generation biofuels could create up to one million jobs and reduce road transport green house gas emissions from gasoline by 42% to 50% by 2020”, states Steen Riisgaard, CEO of Novozymes.
”The study is making a strong case for a bio-based economy,” ads Stephan Tanda, member of DSM's Managing Board. “At a time with low global growth rates, the biochemical industry could provide a significant green stimulus to the European economy with revenue of EUR 31 billion in 2020. We think it sends a strong signal to European policy-makers that action is required.”
The study highlights the enormous potential that next-generation biofuels and biochemicals can bring to Europe, based on the use of only 25% of existing agricultural residue and waste. These bioproducts reduce greenhouse gas emissions by at least 90% when compared to oil-based fuels.
Political action needed
The authors warn, however, that the emergence of a dynamic next-generation biofuel and biochemical industry is not automatic: It will depend on European member states and policy-makers putting in place solid policy incentives that actively encourage value chain stakeholders to make the necessary behavioral changes and investment decisions – from the farmers who must collect and bring their biomass to the biorefinery to the venture capitalist who facilitates the construction of next-generation infrastructure or refineries.
Specifically, the study calls on the EU to introduce an ambitious EU-wide 2020 mandate for next-generation biofuels, incentives for the collection of farming residues, as well as tax breaks for investments.
DSM – The Life Sciences and Materials Sciences Company
Royal DSM N.V. creates solutions that nourish, protect and improve performance. Its end markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing. DSM manages its business with a focus on the triple bottom line of economic performance, environmental quality and social responsibility, which it pursues simultaneously and in parallel. DSM has annual net sales of about €8 billion and employs some 22,700 people worldwide. The company is headquartered in the Netherlands, with locations on five continents. DSM is listed on Euronext Amsterdam. More information: www.dsm.com
Novozymes – The world leader in bioinnovation
Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries we create tomorrow’s industrial biosolutions, improving our customers' business and the use of our planet's resources. With over 700 products used in 130 countries, Novozymes’ bioinnovations improve industrial performance and safeguard the world’s resources by offering superior and sustainable solutions for tomorrow’s ever-changing marketplace. Novozymes is quoted on NASDAQ OMX Copenhagen A/S.
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