Bavarian Report about state-of-the-art strategies, policies and clusters related to Bioeconomy A.T.1.1 Analysis of Policy Instruments: Deliverable D.T1.1.1 Inventory of policy instruments Chemie-Cluster Bayern GmbH

Magdalena Buch, PP14 Chemie-Cluster Bayern GmbH

Dezember 2018

Content

1. Introduction to ’s bioeconomy related policy 3

1.1 The Bioeconomy Council Bavaria 3

1.2 Bavarian definition of “bioeconomy” is the transformation from fuel-based to a bio-based economy 3

1.3 Bavaria’s bioeconomy in numbers 4

2. Bavarian strategy unpublished - Bioeconomy Council papers cover all industry sectors and “4F” applications 8

2.1 Strategic efforts on sustainable production and use of biologic raw materials and their residuals and waste 8

2.2 Sustainable, optimized and full use of raw materials and cross industrial incentives 9

2.3 Bioeconomic break through not reached due to various reasons 9

2.4 Bavarian mission and vision of bioeconomy and five thematic key areas 10

2.5 Recommendations for policy makers in Bavaria 11

3. Strategy Implementation 11

3.1 “Bavarian Cluster Initiative” 11

3.2 Bavarian bioeconomic excellence focused in 12

3.3 Most important sectors of bioeconomic applications in Bavaria 15

4. Future Outlook Fehler! Textmarke nicht definiert.8

References 188

Abbreviations 199

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1. Introduction to Bavaria’s bioeconomy related policy

1.1 The Bioeconomy Council Bavaria

In the Free State of Bavaria four ministries share the competency in bioeconomy-related subjects:

- Bavarian State Ministry for Nutrition, Agriculture and Forestry (StMELF) - Bavarian State Ministry of Economic Affairs, Energy and Technology (StMWi) - Bavarian State Ministry of Science and the Arts (StMWK) - Bavarian State Ministry of the Environment and Consumer Protection (StMUV) Inside the Ministries diverse units cover the different subjects of bioeconomy usually as part of other subjects (i.e. genetic engineering is legally executed by StMUV) or in a shared manner wherever environmental, social and economic subjects interfere (i.e. biotechnology industry is in shared responsibility of units in StMUV and StMWi). Since more than 20 years an interministerial working group (IMAG “renewable new materials and bioeconomy”) assures the sound communication and collaboration of the three houses, first starting with renewable new materials and recently also in the field of bioeconomy.1 The unit “E6” under direction of Dr. Werner Ortinger presides this working group and represents the government of Bavaria in several federal German working groups and expert councils.2

The StMELF officially convened the “Bioeconomy Council Bavaria” (German: Sachverständigenrat Bioökonomie Bayern) in 2015 and prolonged its work for a second three year period after consultation with other Ministries concerned. As an independent advisory body, it draws up recommendations and provides impulses for the development of a Bavarian bioeconomy strategy3, see below (3. Strategy implementation). The definition of bioeconomy was elaborated and published by this Council is certainly the basis for the Bavarian state definition to be published. The Council defines bioeconomy as follows:

1.2 Bavarian definition of “bioeconomy” is the transformation from fuel-based to a bio- based economy

“Bioeconomy is an economic system that provides and uses renewable resources such as plants, animals and microorganisms. It reduces waste and respects the natural material cycles. Bioeconomy develops and interconnects research activities in the fields of ecology, (bio)technology and socio-economics as well as the applying industries. Changing societal values in favor of sustainable production, trade and consumption are a essential part of the bioeconomy."4

1 Interview #1, Dr. Lettenbauer and Dr. Zeitler 2018-05-09 2 Some examples on Dr. Ortinger’s responsibilities: representative of the state of Bavaria in the “Fachagentur für Nachwachsende Rohstoffe” (FNR, English: Federal German Agency for sustainable raw materials); representative of the state of Bavaria in the Bund-Länder-Arbeitsgruppe „Nachwachsende Rohstoffe/Bioökonomie“ (English: Federal-state working group on “sustainable raw materials/bioeconomy”), Contact person of the State of Bavaria for the German State Council of Bioeconomy, Bavaria’s representative in the Expert Council on Bioenergy of the German Federal Agency on Agriculture 3 http://www.biooekonomierat-bayern.de/index.php/sachverstaendigenrat, 2018-09-13 4 http://www.biooekonomierat- bayern.de/dateien/Publikationen/SVB_2017_Grunds%C3%A4tze_der_Bio%C3%B6konomie_in_Bayern.pdf

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Looking at the big picture, bioeconomy as a part of green economy use biological resources in a sustainable way.5

1.3 Bavaria’s bioeconomy in numbers

The region of Bavaria is home to almost 13 million people on an area of more than 70,000 km2.6 It produces an annual GDP of more than 594 billion Euro (in 2017; growth rate of 4.3%) which is the highest in .7 In 2017 Bavaria’s exports grew up to 192 billion Euro, its imports amount to 180 billion Euro. Goods linked to machinery, automotive and electricity have the main impact on both sides of Bavaria’s trading balance.8

In the two Alpine Space regions and the following bioeconomy-related industries are the most powerful ones:

Annual revenue in billion Euro 2017

Industry Upper Bavaria Swabia Total both

Chemical products (4th strongest in Upper Bavaria) 10.4 1.5 11.9

Food/feed (2nd strongest in Swabia) 6.9 8.3 15.2

Rubber & plastics 2.4 3.0 5.4

Table 1. Potentially bio-related industries in Upper Bavaria and Swabia9

In 2017 the Bavarian ministries started to collect data specifically regarding the bio-based industries in Bavaria. However, at the time this report was drafted, no economic figures on bioeconomy were published. The first results can be expected presumably in 2019.10 The following numbers give a first impression of the size of Bavaria’s bioeconomy, with focus on the production of biomass. The following data are not exhaustive and can only help to get an idea of Bavaria’s bioeconomic potential:

Wood/Forestry11

5 http://www.biooekonomierat-bayern.de/index.php/biooekonomie 2018-09-13

6 https://www.statistik.bayern.de/statistik/gebietbevoelkerung/, 2018-09-14 7 https://www.statistik.bayern.de/statistik, 2018-09-13 8 https://www.statistik.bayern.de/presse/archiv/2018/31_2018.php, 2018-09-16 9 Staatsministerium für Wirtschaft, Industriebericht Bayern, , July 2018, pages 59 and 71 10 Interview #1, Dr. Lettenbauer und Dr. Zeitler 2018-09-05 and Interview #3, Herr Nummert, 2018-09-11 11 Four sectors as named in the Application Form “AlpLinkBioEco”, page 25

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Bavaria’s area is covered by 25,271 km2 forest, 36%12 of its total surface area. Bavaria’a wood grows around 6.1 million cubic meters annually (harvested cubic meters without bark, June 2017- June 2018). Each year about 4,79 million (harvested) cubic meters are cut (harvested cubic meters without bark), while a surface of 1.682 hectar is replanted (2017-june 2018).13 In the midterm the volume oft he wood cut could grow up to 26 million harvested cubic meters without bark per year, in 20 years the volume would be levelled and stagnate at 16,5 million harvested cubic meters without bark per year.14 The percentage of actively cut wood in relation to the annual growth of timber was 95%, meaning that 5% less wood was cut than grown.15 Wood related industries in Bavaria are: forest services (forest companies, log trading), wood and paper industry (sawmills, wood products industry, paper production and processing, wooden furniture). Timber construction however is the most important driver for Bavaria’s forest industry.16

Most promising wooden products are no longer chipboards, but insulation applications and wood composites.17

Agriculture

Bavaria is one of the most important agricultural regions in Europe, as there are more than 106,000 farms and diverse production facilities. Together with the upstream and downstream sector, the agriculture and food industry generate around € 121 billion in sales and employs around 900,000 people. The forestry and wood sector have an annual turnover of around 37 billion euros, generated by around 196,000 employees; and thus, has great economic importance in the region: With around 158 billion euros turnover, agriculture and forestry continue to generate more than 14% of all sales in Bavaria. Every seventh job in Bavaria is related to agriculture and forestry.18

Land Use

3,125,336 hectares of Bavaria’s land are used for agriculture. 2,048,124 hectares are farm land, more than one third of the agricultural area is permanent grassland (1,063,313 ha).19 In both Alpine space regions (upper Bavaria and Swabia) the share of grassland almost reaches half of the total farmland.

The agricultural production has a strong focus on cereals (wheat and barley) and corn, especially in the Alpine region Swabia where it makes up almost one third of the agricultural area (rest of

12 https://www.bmel.de/SharedDocs/Downloads/EN/Publications/GermanForests.pdf?__blob=publicationFile, 2018-09-15 13 https://www.baysf.de/de/ueber-uns/zahlen-fakten.html; 2018-10-31 14 http://www.lwf.bayern.de/mam/cms04/service/dateien/energieholzmarkt_bayern_2016_bf.pdf 2018-11-05 15 Clusterstudie Forst, Holz und Papier in Bayern 2015, Kurzfassung, February 2016,, page 16 16 Knauf, Hunkemöller, Friedrich, Mai, Borchert, Bauer; Clusterstudie Forst, Holz und Papier in Bayern 2015. Kurzbericht, , February 2016; page 37 17 Knauf, Hunkemöller, Friedrich, Mai, Borchert, Bauer; Clusterstudie Forst, Holz und Papier in Bayern 2015. Kurzbericht, Freising, February 2016, page 27 18 http://www.stmelf.bayern.de/mam/cms01/agrarpolitik/dateien/agrarbericht2018.pdf, 2018-09-13 19 https://www.statistik.bayern.de/presse/archiv/92_2017.php, 2018-09-13

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Bavaria: one forth).20 The main cultivated fruits and the land spread are: (All numbers are from 2017 and in hectares, if not marked other)

- Winter wheat (489,000) - Winter barley (227,000)21 - Commercial crops (133,572), mainly winter rapeseed (109,972; year 2015) - Hops (16,043) in and (year 2015) - Root crops (100,329): 40 percent potatoes and almost 60 percent non-seeded sugar beet (year 2015)22,23 - Legumes among which peas are the largest cultivation (51,000) - Maize, including corn cob mix: 548,43124 - Silage maize (about 140,000) mostly in Lower Bavaria, Franconia and Upper ; (silage maize generally low in the grassland areas of the Alpine foothills; one quarter of the corn production area used for biogas production)25

Harvest Size

The following harvest data give an impression of the monthly/annual produced harvest sizes in Bavaria:

Plant/livestock Period Amount in tons

cereals total, including the two 6.8 million most important:

wheat Annual average of years 2010 - 3.9 million 15 winter barley 1.5 million26

slaughtering

cows Monthly total weight on average 26 000 in June 2018 pigs 38 000

hens 15 000

sheep 20027

Table 2. Harvest size and meat production.

20 http://www.stmelf.bayern.de/mam/cms01/agrarpolitik/dateien/agrarbericht2018.pdf, 2018-09-13” 21 http://www.stmelf.bayern.de/service/presse/pm/2017/168147/, 2018-09-16 22 https://www.statistik.bayern.de/presse/archiv/92_2017.php, 2018-09-14 23 All data on harvest sizes in year 2015 taken from: http://www.agrarbericht-2016.bayern.de/landwirtschaft- laendliche-entwicklung/hopfen.html 24 http://www.lfl.bayern.de/mam/cms07/ipz/dateien/lfl_bayerischer-pflanzenbauspiegel-2017.pdf, 2018-09-16 25 http://www.lfl.bayern.de/mam/cms07/ipz/dateien/lfl_bayerischer-pflanzenbauspiegel-2017.pdf, 2018-09-16 26 https://www.statistik.bayern.de/presse/archiv/2016/231_2016.php, 2018-09-16 27 https://www.statistik.bayern.de/medien/statistik/BIZ/bayerischer_zahlenspiegel_tabellen.pdf, 2018-09-16

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Packaging

The packaging industry in Bavaria can be described partly as the production of rubber and plastic goods. This industry created an annual revenue of 13.5 billion Euro, employing more than 75,000 people in 578 companies. 89% are small and medium sized enterprises which generated more than 50% of the total revenue. More than one third of the industry’s staff is located in Swabia and Upper Bavaria as the two Alpine Space regions.28 Besides, the paper procuding industry (i.e. corrugated paperboards) partly contributes to the packaging industries – see above page 3, Forest & wood. Unfortunately the part of bio-based products in this secors has not yet been statistically described.

Chemistry

In 2017 the chemical industry in Bavaria created an annual revenue of 16,3 billion Euro with an export rate of 63,2%. Its 226 companies employ more than 55,000 people, while the average number of employees per company is less than 250. More than 33,000 employees work in Upper Bavaria, additionally 5,600 in Swabia, thus almost three fourth of all employees in the industry work in the Alpine Space region (72%).29 According to the statistical model of Professor Röder(Technical University of Munich -Campus Straubing), the part of bio-based chemistry amounts to more than one fifth of the total resource input.30 The data on this industries comprises as well the biotechnology sector, which is a major innovation driver for Bavaria.

Biotechnology

There are about 360 biotech/pharma related companies and two biotech business incubators just in Munich area31, which focuses mainly on red biotechnology with a hub in Martinsried offering a reknown cluser initiative (“BioM”) and the “IBB” funding networks of SMEs. In terms of biotech industry Munich greater area is followed by Würzburg (red and white biotech) which hosts a white biotech incubator and Straubing. In 2017 only Bavarian biotech companies acquired funds that amount to 118 million Euro.32 In the past decade the State of Bavaria moreover has invested more than 600 million Euro in biotechnology.33 Two million Euros were i.e. invested in the project group named “BayBiotech” (2015-2018), that worked for example on fine chemicals for drug production, biocatalysts, biofilms and biodegradable plastics and expectedly will be prolonged with “BayBiotech+”.3435

Bio-Gas

In 2016, there were approximately 2,500 biogas plants in Bavaria – this is one fourth of Germany’s biogas plants. The capacity installed sums up to approximately 1,000 Megawatt. Bavaria is also

28 Staatsministerium für Wirtschaft, Industriebericht Bayern, Munich, July 2018, page 42 29 Ibidem,page 40 30 https://www.cs.tum.de/de/professuren/oekonomie/betriebswirtschaftslehre-nachwachsender- rohstoffe/forschung/; 2018-12-31 31 https://www.bio-m.org/zahlen-und-fakten/muenchner-biotech-cluster.html 2018-11-05 32 http://biotechnologie.de/statistics_articles/27-die-deutsche-biotechnologie-branche-2018, 2018-11-05 33 https://www.stmwi.bayern.de/innovation-technologie/schwerpunkte/biotechnologie/ , 2018-11-05 34Interview #6 StMWi, Dr. Block, 2018-12-12 35 https://www.stmuv.bayern.de/themen/forschung/biotechnologie/index.htm; 2018-12-31

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ahead in terms of installed capacity of all biomass plants (biogas and wooden based biomass) with around 1.5 gigawatts.36

Bio-Waste

The absolute food losses in Bavaria amount to 1.31 billion tons per year, according to statistical projections.37

The livestock held in Bavaria has a big impact on generated biomass in form of manure. In 2017 there lived

- more than 3 million pigs - more than 3 million cows (almost 50 percent of which are kept in Upper Bavaria and Swabia).38

2. Bavarian strategy unpublished - Bioeconomy Council papers cover all industry sectors and “4F” applications

Based on the German national strategy for bioeconomy (German: Politikstrategie Bioökonomie39) the StMELF is currently elaborating an official Bavarian bioeconomy strategy on behalf of the Bavarian government. At the time of this report this strategy is an unpublished draft waiting for the official ministerial council order which can be expected in 2019.

The Bioeconomy Council of Bavaira (see above, chapter 1.) has, however, done substantial preparatory work by publishing 14 position papers on bioeconomy until today.40 The most important contents of which are summarized below:

2.1 Strategic efforts on sustainable production and use of biologic raw materials and their residuals and waste

The strategy contains the following major points:

- Bioeconomy is a concept covering all economic sectors of/for producing, using and trading products based on sustainable resources such as plants, animals, microorganisms and their derivatives.

- The strategy covers all relevant industry sectors as well as agriculture and forestry, production and services.

36 https://www.nordbayerischer-kurier.de/inhalt.bayern-in-biogas-vorne-ausbau-stockt.30ec5703-c38f-4b13- b2b3-4e0e52ba1797.html, 2018-09-16 37 https://www.kern.bayern.de/mam/cms03/wissenstransfer/dateien/lebensmittelverluste-bayern-2014.pdf, 2018-09-13 38 Report „C3132C 201700 - Viehbestände in Bayern 2017 Viehzählung im November“, Februar 2018, downloaded 2018-0914 from https://www.statistik.bayern.de/veroeffentlichungen/index.php?cat=c10_Land--und- Forstwirtschaft--Fischerei.html 39 https://www.bmel.de/SharedDocs/Downloads/Broschueren/BioOekonomiestrategie.pdf, 2018-09-13 40 http://www.biooekonomierat-bayern.de/index.php/aktuelles/publikationen

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- The applications of the generated biomass can be described with the 4F/four sectors: food, feed, fiber and fuel including related industries such as nutrition industry, chemistry and pharma industry, automotive industry, paper and textile industries and energy generating companies.

- Common vision is the sustainable use and production of biologic raw materials as well as their residual and waste materials.41

2.2 Sustainable, optimized and full use of raw materials and cross industrial incentives

The expertise of the appointed Council members covers diverse topics of bioeconomy such as nutrition, healthy and safe food, biogenic energy sources, biotechnology, industrial use of renewable resources, sustainable forestry and agricultural products as well as biodiversity, environmental and social ethics. Its main mission is to set growth impulses for Bavaria’s bioeconomy and to advice the elaboration of framework conditions for a supporting economic environment. Since 2015 the Council published 15 position papers on bioeconomy and related topics.

The following four position papers/brochures42 are of special interest regarding this report:

- Publication “Bioeconomy for Bavaria!”, brochure published by StMELF - Publication “The Bioeconomy in Bavaria: Initial Situation and Potentials” - Publication “Principles of Bioeconomy” - Publication “Recommendations for the promotion of the bioeconomy in Bavaria” The first report in 2015 defined five action fields:

1. Sustainable production of food and biomass: improvements in farming, potential of cascaded utilization

2. Development and improvement of bio-based products: generate carbon compounds from carbohydrates to substitute fossil carbon sources; destroy market barriers in order to help bio-based products to market

3. Promoting a policy framework which set supporting framework conditions for science, economy and consumers

4. Further (inter)national networking: interlinking with German and EU strategies on bioeconomy and leveraging the chances of international projects

5. Communication of socio-economic advantages: convince industry, consumers and society of the advantages of bioeconomy, integration and participation of consumers in transformation process from linear to circular bio-based economy43

2.3 Bioeconomic break through not reached due to various reasons

Because of missing data on Bavaria’s bioeconomy as stated above in this report, in 2016 the Bioeconomy Council Bavaria has conducted a qualitative study with the hypothesis that

41 www.biooekonomierat-bayern.de/index.php/biooekonomie 42 See all information on documents in “Sources” below page 12 43Bioökonomierat Bayern and StMELF, Broschüre „Bioökonomie für Bayern!“, Munich, 2015-08-26, pages 13ff

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bioeconomy could be a role model for the sustainable development of Bavaria for its report “Bioeconomy in Bavaria: initial situation and potentials”44. The results confirm this hypothesis: Bavaria has a favorable biogenic raw material situation concerning both production and use and a strong research and business location. At the same time the study reveals pathways how the material usage of biogenic raw material can be expanded. Only few value chains that cross industries and only low cascaded usage of raw material could be identified, probably due to an insufficient network of economic actors. The advantageous conditions for the direct energetic usage (i.e. subventions for biomass plants) impede the material use of biomass. While the industry neglects the tracking of the origin of the used inputs, the Council suggests to track material flows by putting Bavaria into an international context. The government of Bavaria needs to set up a political framework that results in a sustainable use of soil and water, the appropriate treatment of animals as well as the synthesis of modern technology and traditional farming methods in agriculture and forestry. The legal framework for bioeconomy is complex since different legislation levels (i.e. international, EU, federal law) interfere as well as different legal areas (i.e. agriculture, environment, tax).

The value of biogenic raw material and its use are dual: First, biomass substitutes fossil raw materials and brings in additional benefits. Second, biomass is starting material for innovative, alternative processes and products. The fact that the technically possible substitution of fossil resources by renewables (i.e. plastics, insulating materials) in Bavaria did not result in the expected change yet, can be explained by two reasons: On the one hand it is economically unattractive to substitute fossils by renewables, since their usage suffers from higher prices, reduced availability and differences in technical characteristics. On the other hand, industries fear a potential image loss caused by skeptical consumers from using biomass.

The study sees potential in the field of advanced biofuels, alternative use of biowaste, establishment of circular value chains in urban areas or regional centers of competence (including material cycles, efficient recovery and full exploitation of existing resources). Additional chances are seen in plant breeding for optimized production and generation of special ingredients and bio- refineries that aim towards the full circular use of all substances of the biogenic input with no residues, of final or intermediate products. Even more applications are said to be found by identifying new value chains and using synergies. Finally, Bavarian policies need to supplement the bottom-up actions of its industry by a cross-industrial interlinked Bavarian strategy on bioeconomy.

2.4 Bavarian mission and vision of bioeconomy and five thematic key areas

In “Principles of the Bioeconomy in Bavaria”45 the Council described its vision on bioeconomy as an important driver for the development of an economy that protects the ecosystem, ensures a livable environment and reduces the use of fossils. Bavaria’s mission is to sustainably support the bioeconomy with a favorable political framework to ensure sufficiency of resources, realize the transformation to a sustainable post-fossil economy respecting the main socio-economic

44 Summary of Bioökonomierat Bayern, Ausgangssituation und Potenziale, Straubing, December 2016

45 Bioökonomierat Bayern, Grundsätze der Bioökonomie, Straubing, May 2017

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goals: climate protection, biodiversity, resource efficiency and sustained prosperity. The paper already names and describes five thematic key areas:

1. Science 2. Supply of renewable resources 3. Use of renewable resources 4. Ecosystems and climate protection 5. Society

2.5 Recommendations for policy makers in Bavaria

In its “Recommendations for Bioeconomy”46 the Council defines concrete tasks addressing these five key areas. Cross-sectoral advices are the elaboration of an interministerial strategy on bioeconomy, the further development of the interministerial working group (see chapter 1). With regard to the key area “science”, the Council recommends tackling resource efficiency by commissioning a study on resource losses along the value chain (especially in the food sectors) and ways to avoid, recycle or reuse them. Second, information on sustainable agriculture and forestry for consumers including school curriculums and visiting days on production sites and third, a yearly “day of science” illustration research results and potential benefits of the bioeconomy at the StMELF. The supply of renewable resources can be ensured by a strategy including political means favoring efficient local production and taking into account potential conflicts in the use of biomass. The key area dealing with the use of renewable resources lists three to dos for Bavarian policy makers: First, a call for projects especially for the material use of biogenic resources. Second, efforts to maintain the blending quote of biofuels to classic fuels on federal level. Third, the adaptation of legal and administrational framework conditions, i.e. to include bio-based materials into regulations on biowaste and to add ecological and social criteria to the public procurement processes. Finally, the Council recommends integrating bioeconomy in the regional strategy on sustainability and to support ecologic efforts in the agricultural industry in order to address climate protection. The key area dealing with society shall best be considered by an own communication strategy disseminating information on bioeconomy for a broad public.

Besides, the Strategy for Research and Innovation of the Bavarian Government47is applicable. Its four main tools of economic policies (infrastructures, networks, project set-up, support for founders) aim at forstering existing and developing industries including the bioeconomy. 3. Strategy Implementation

Sustainable business has a long tradition of more than 20 years in Bavaria.48 In 2012 the much younger term “bioeconomy”, first used in EU context, was adopted and its approach was taken into account. Since 2012 bioeconomy is playing an increasingly important role in Bavarian policies. In 2015, Bavaria became one of the first federal state to convene a Bioeconomy Council for the initiative "Bioeconomy for Bavaria!" on behalf of the State Ministry of Food, Agriculture and Forestry, see above chapter 1. With the expansion of the Straubing Campus, which was decided in the summer of 2017 as the location of the Technical University of Munich with a research and education focus on the bioeconomy, Bavaria has taken another step towards expanding its

46 Bioökonomierat Bayern, Empfehlungen zur Förderung der Bioökonomie in Bayern, May 2017 47 https://www.stmuv.bayern.de/themen/forschung/biotechnologie/index.htm, 2018-12-31 48 Interview #1, Dr. Lettenbauer and Dr. Zeitler 2018-09-05

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bioeconomy. Companies and research partners are networked via platforms and other institutions, mostly situated around the “bioeconomy hotspot” Straubing and – regarding biotechnology – the “biotechnology hotspot” Munich.. Meanwhile the Bavarian strategy for sustainability was adopted to topics relevant for bioeconomy. In the information center NAWAREUM – an interactive museum which is in cours of building– also the Bavarian public can experience the transformation of energy and raw materials.49 Various institutions conduct research on bioeconomic topics in Bavaria:

3.1 “Bavarian Cluster Initiative”

The "Bavarian Cluster Initiative"50 already contains important bioeconomic parts. The Bavarian cluster policy promotes 17 statewide platforms in the high-tech industry and in traditional sectors at the initiative of the Ministry of Economy (StMWi, see chapter 1 above), that comprise around 8,500 companies and 1,100 individual projects. Those are intended to promote cooperation between companies and research institutions. In particular, the fields of environmental technology, biotechnology/nutrition, forestry and wood, chemistry as well as new materials, include bioeconomic topics and are addressed each by a specific cluster organization. 51 Even though the cluster offices are spread all over Bavaria, their support covers all subordinated regions including the two Alpine Space regions Swabia and Upper Bavaria.

The most important Bavarian cluster organizations, related to bioeconomy, as named in the interviews, conducted for this report are:

Chemie-Cluster Bayern GmbH München

Cluster Energietechnik – Bayern Innovativ Nürnberg GmbH

Cluster Neue Werkstoffe – Bayern Innovativ Nürnberg GmbH

Cluster Biotechnologie – BioM GmbH Martinsried

Cluster-Initiative Forst und Holz in Bayern Freising gGmbH

Umwelttechnologie-Cluster-Bayern e.V.

Figure 1. Centralized bioeconomy institutions in Straubing.

49 https://biooekonomie.de/biooekonomie-bayern, 2018-09-15 50 German name “Cluster Offensive Bayern”, https://www.cluster-bayern.de/en/, 2018-09-15 51 https://biooekonomie.de/biooekonomie-bayern, 2018-09-15

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3.2 Bavarian bioeconomic excellence focused in Straubing

1991 the Bavarian government decided to concentrate the activities related to bioeconomy in Straubing, with the mission to support the entire Bavarian bio-based development. Particularly noteworthy are the following institutions:

Institution History Focus of activity

Center of Excellence for Founded by the basic research and monitoring of Renewable Resources Bavarian technological developments on (KoNaRo) Government in renewable resources focusing on their Straubing in 2001 use for industry, above all in the chemical and plastics processing industries and on their use for energy

Straubing Science Center, Founded 2001 as a Cooperation of several Bavarian WZS (2001-2017) cooperation of the universities Technical University of Munich (TUM)

Since October 2017 full sponsorship of TUM

Campus Straubing TUM In October 2017 as a Cooperation of several Bavarian result from the former universities with today 17 chairs in WZS bioeconomic related sciences 52 under responsibility of TUM

Technology and Support Founded 2001 as a Applied research, development, Center, TFZ combination of two testing, process evaluation and regional agencies granting of government subsidies working on new raw materials/crops since 197353

Coordination Center for Association founded Coordinating institution Renewable Resources, 1992 with the state of

Renewable Energies and Bavaria as member sustainable Use of Resources among companies Information distribution C.A.R.M.E.N. e.V. and the city of Straubing

52http://www.cs.tum.de/de/professuren/; 2018-09-15 53 http://www.tfz.bayern.de/tfz/organisation/index.php, 2018-09-15

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Papers/studies on use of renewable resources, i.e. in municipalities

Biocampus Straubing GmbH BioCubator - Business Center for Renewable Resources;

Regional Cluster Renewable Resources

Figure 2. Bioeconomy related institutions in Straubing.

The Competence Center for Renewable Resources (KoNaRo) unites the Wissenschaftszentrum Straubing (WZS) (English: Straubing Science Center), now named Campus Straubing TUM (see below), the Technology and Support Center (TFZ) and the "Coordination Center for Renewable Resources, Renewable Energies and sustainable Use of Resources", C.A.R.M.E.N.. 54

Since October 2017: replaced by Campus

Straubing

Figure 3: organizations in Straubing and differentiation55

54 https://biooekonomie.de/biooekonomie-bayern, 2018-09-15 55 http://www.konaro.de/files/Brosch%C3%BCre/Konaro_english_web.pdf, 2018-09-15

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Since October 2017, the Campus Straubing for Biotechnology and Sustainability is the new Integrative Research Center (IRC) at the Technical University of Munich (TUM). As such it takes an interdisciplinary approach to research and is entitled to award doctorates.56 The unique selling proposition is research and teaching with a focus on renewable starting materials, biotechnology and bioeconomy. Ten new cross-faculty programs will be established for this purpose. As of the winter semester 2018/19, these also include a bachelor's and a master's degree program in bioeconomy. In addition, the Free State of Bavaria is financing six new professorships at the Straubing site with a focus on bioeconomy and a laboratory and lecture hall building, worth around 40 million Euros. 57

The BioCampus Straubing GmbH, whose partner is a public-private partnership called “Zweckverband Straubing-Sand” (ZVS), promotes the area of Straubing and its knowledge in renewable resources in order to attract new companies. As a partner of KoNaRo, it supports and interlinks companies in the field of renewable raw materials. For this purpose, suitable location opportunities were created in the harbor, in the industrial park and in the start-up and business center (BioCubator). BioCampus GmbH is also a network partner of the international BioEconomy Regional Strategy Toolkit (BERST), an association of regions of various European countries to expand the bioeconomy. The most popular realization of a truly circular bioeconomic industrial process is the bioethanol plant in Straubing.58

3.3 Most important sectors of bioeconomic applications in Bavaria

On basis of four interviews with policy makers the following sectors of concern regarding bioeconomy have been identified for Bavaria (diminishing priority from top to bottom):

Sector Description Approach Examples

Chemistry Especially Two ministries have Tannins as biotechnology units dealing with precipitating agents biotechnology: StMWi Also focus on fine Surfactants from und StMUV; chemicals and carbohydrates commodities Especially white Biocatalysts biotechnology is of concern (green Bio-based coatings biotechnology is and paints limitedsince Bavaria does not want the Fatty acids from cultivation of natural fats and oils genetically modified Microbial production plants) of proteins Project association "BayBiotech”, funded by StMUV: one

56 https://www.tum.de/nc/en/about-tum/our-university/locations/campus-straubing/, 2018-09-15 57 https://biooekonomie.de/biooekonomie-bayern, 2018-09-15, translation 58 https://biooekonomie.de/nachrichten/clariant-lizensiert-bioethanol-technologie-aus; 2018-12-31

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coordination project Silicone polymers on and six specialist sugar-based raw projects, mainly in the material field of sustainable Bio-based lubricants process engineering59 Biodegradable

polymers

Technological biofilms

Bioenergy Energetic usage of Biofuel und biomass biomass plants

Agriculture Generation of new Identify value chains, Whey, starch, sugars biomass, first use in involve farmers with as basis for polymers nutrition, food stock, focus on two and basic chemicals energy but also focus approaches: on material sustainable revalorization intensification in Bioethanol from straw farming (including digital innovations) Strong resources (see chapter 1) and new markets for Intensification of unleveraged agricultural products production of raw potentials respecting conflicts materials using new (sustainable with privileged use in technical and digital intensification) nutrition/food stock means, such as soil sensors, drones, big production of basic data for i.e. minimal chemicals use of fertilizers and optimized land use C) Plants with high potential (study and expert discussion on special crops in perfume from iris contrast to ubiquitous lupins and other side corn) products such as protein feed (rape cake)

fishery: lobster for aliment

59 https://biooekonomie.de/biooekonomie-bayern, 2018-09-15, translation

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Wood Forestry and wood Potential high Polymers on basis of manufacturing because annual lignin industry maximum cutting rate not yet met

Wood-based composites Focus on applications in: building and construction Surface treatments Material based on natural use/production of resins basic chemicals

Biowaste Waste collected at focus on: Extraction of lignin municipal level from biowaste prior to Composting energetic usage

Energetical recycling

New applications regarding extraction of recyclable substances

Packaging materials from bio- Bio based paints, based polymers, i.e. coatings, films etc. for food

Textiles And other materials Industrial textiles, apart from packaging clothes applications

Figure 4 most relevant bioeconomy sectors from policy view in Bavaria – in order of diminishing priority60

Partly the sectors interfere regarding the above listed realizations. Potential conflicts in the use of agricultural products shall early be taken into account in a bioeconomy strategy.61 So far Dr. Ortinger puts special focus on the use of generated biomass in Bavaria as follows: first nutrition, second and third is material use and energy generation.62 The StMUV is focused on a development of bioeconomy that favors the protection of environment.

60 Synthesis of all 4 interviews, see list of sources at the end of this document 61 Bioökonomierat Bayern, Empfehlungen zur Förderung der Bioökonomie in Bayern, May 2017, page 2 62 Interview # 2, Dr. Ortinger, 2018-09-10

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4. Future Outlook

Elections of the Bavarian „Landtag” have recently taken place (October 2018). Since for decades the Christian social conservative party (CSU) had been voted by the majority of votes and consequently all ministers adhered to the governing party, this situation has now changed into a coalition of CSU with the party “Freie Wähler” (FW). The coalition contract which contains topics of resource sustainability and bioeconomy63

Besides, various currently running Bavarian calls for projects and Bavaria’s participation in EU- programs such as INTERREG will continue and result in new (co-)funded research and development project on divers bioeconomy topics.6465

References Websites: www.stmelf.bayern.de www.bayfor.org www.biooekonomie.de www.biooekonomierat.de www.bmel.de www.cluster-bayern.de www.cs.tum.de www.kern.bayern.de www.konaro.de www.statistik.bayern.de www.tfz.bayern.de www.stmuv.bayern.de

Interviews: #1 StMUV, Dr. Lettenbauer and Dr. Zeitler, 2018-09-05 #2 StMELF, Dr. Ortinger, 2018-09-10 #3 Bioökonomierat Geschäftsstelle, B. Nummert, 2018-09-10 #4 StMWi, Dr. Doetsch, 2018-09-12 #6 StMWi, Dr. Block, 2018-12-12

63 https://www.merkur.de/politik/umfrage-zur-landtagswahl-in-bayern-csu-faellt-weiter-afd-verliert-zr- 10105575.html, 2018-09-16 64 List of programs: https://www.umweltpakt.bayern.de/werkzeuge/foerderfibel/programme; List of participations: https://www.bayfor.org/de/forschungsfoerderung/eu-foerderprogramme/joint- programming-initiatives.php 65https://www.csu.de/common/csu/content/csu/hauptnavigation/dokumente/2018/Koalitionsvertrag__Gesamtfa ssung_final_2018-11-02.pdf; 2018-11-05

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Documents: Bauer, Heidenreich, Richter, Röder: Agenda Holzbasierte Bioökonomie –Chancen und Potenziale für Bayern, Freising, Munich, Straubing; 2018-02-09 Bayerische Staatsregierung: Gesamtkonzept für die Forschungs-, Technologie-und Innovationspolitik der Bayerischen Staatsregierung, 2011-05-03 Bioökonomierat Bayern, StMELF: Broschüre „Bioökonomie für Bayern!“, Munich, 2015-08-26 Bioökonomierat Bayern: Ausgangssituation und Potenziale, Straubing, December 2016 Bioökonomierat Bayern: Empfehlungen zur Förderung der Bioökonomie in Bayern, May 2017 Bioökonomierat Bayern: Grundsätze der Bioökonomie, Straubing, May 2017 Christ-Soziale Union, Freie Wähler: Für ein bürgernahes Bayern, Koalitionsvertrag für die Legislaturperiode 2018-2023, Munich, 2018-11-05 Knauf, Hunkemöller, Friedrich, Mai, Borchert, Bauer: Clusterstudie Forst, Holz und Papier in Bayern 2015. Kurzbericht, Freising, February 2016 Staatsministerium für Wirtschaft: Industriebericht Bayern, Munich, July 2017 Abbreviations: StMWi State Ministry of Economic Affairs, Energy and Technology StMUV State Ministry of the Environment and Consumer Protection StMELF State Ministry for Nutrition, Agriculture and Forestry StMK State Ministry of Science and the Arts

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