World Economic Forum Report outlines future for biorefining industry in U.S. and globally

WASHINGTON - Today, during a keynote address at the BIO
World Congress conference, Steen Riisgaard, CEO of Novozymes, a
world leader in bioinnovation, unveiled a new report by the World
Economic Forum (WEF) which concludes that converting biomass into
fuels, energy, and chemicals has the potential to generate upwards
of $230 billion to the global economy by 2020 - the majority of
which will be in the U.S. 

Authored by professor Sir David King of Oxford University, the
report also found that with expanded large-scale biorefinery
production, dependence on fossil fuels could be dramatically
reduced.  The report, “The Future of Industrial
Biorefineries,” was commissioned by World Economic Forum with
participation from Novozymes, Braskem, Royal DSM N.V. and Dupont,
and conducted by McKinsey & Company.

“We need an energy replacement that comes at oil’s low price,
but without its high environmental cost,” said Riisgaard. “Over
time, cars, trucks, and even airplanes are going to run on
sustainable low-carbon fuels derived from biomass.  Plastics
and chemicals will be made from plants rather than petroleum. 
As a result, biorefineries will infuse billions of dollars into the
economy and create more than 800,000 new jobs.”

“Over time, cars, trucks, and even
airplanes are going to run on sustainable low-carbon fuels derived
from biomass.”

Today, the biorefinery industry is in early development,
however, according to the WEF report, governments and businesses
across a range of sectors are recognizing the potential economic
boom that exists in biorefining.  For example, by the year
2020:

* The biofuels market alone is estimated to more than triple by
2020, with combined sales of $95 billion

* The demand for biomass to generate heat and power is expected
to more than double

* Bio-based products will accumulate $15 billion in revenues

* Bio-based chemicals are expected to grow significantly and
increase its share in overall chemicals production to an estimated
nine percent of all chemicals

* Production of biomass within the farm gate is estimated at $90
billion-the largest business potential in the value chain

Over the next few years, according to BIO, bio-based products
have the potential to replace 10 percent of U.S. oil imports,
significantly reduce CO2 emissions, create new revenue streams for
U.S. farmers, and provide clean tech jobs in rural areas.

New Green Jobs - U.S. Poised to Lead

During his keynote address, Riisgaard highlighted the U.S. as
the world leader in developing biorefineries.  According to
data provided by the Biotechnology Industry Organization (BIO),
today’s developing biorefinery industry accounts for more than
40,000 jobs in the U.S. 

Commercialization of cellulosic biofuels is expected to create
800,000 new jobs (190,000 direct new green jobs, and 610,000
indirect new jobs) in the U.S. by 2022 alone. Achieving the
biorefining industry’s full potential could create tens of
thousands more new jobs within the next five years.

“While the U.S. has a head start, the race itself is only at the
beginning,” said Riisgaard.  “America’s competitive advantage
cannot be taken for granted.  If the U.S. wants to be a leader
in developing these new clean energy technologies, it must build on
the progress it’s already made.”

Congress and the Departments of Energy and Agriculture must
ensure that the U.S. has a coherent and comprehensive strategy for
the bio-based society and not just fragments of measures here and
there,” he added.