NORTH EAST OF ENGLAND BUSINESS OPPORTUNITIES FROM BIOMASS & WASTE MATERIALS

December 2010 A REPORT COMPILED BY: The North East Process Industry Cluster The Centre for Process Innovation


TheNorthEastProcessIndustryCluster(NEPIC) isanorganisationthat representsinexcessof500Pharmaceutical,Biotechnology,Speciality, Polymer&Rubber,Petrochemical&CommodityChemicalcompaniesbased inNorthEastEnglandandwasestablishedbyindustrytodevelopthelong termfutureandimprovecompetitivenessofthesesectorsandtheregion. Furthermore,thereareatleastanequalnumberofcompaniesinthesupply chainoftheseindustriesbasedinthisregionmakingthisamajoreconomic cluster.NEPICcompanieshavesignificantpresenceinallsubregionsofNorth EastEnglandNorthumberland,Tyne&Wear,DurhamandTeessideandthe combinedeconomicpowerofNEPICcompaniesandtheirimportancetothe regionandtheUKcannotbeoveremphasised. Leadbyseniorindustrialists,NEPIChasareputationfordeliveryofprojects thatenhancethesustainabilityoftheProcessIndustrySector.Theseprojects areidentified,developedanddeliveredthroughaseriesofThrustTeamsset upbytheindustry.TheprocesssectoristhelargestindustrialsectorinNorth EastEngland,andisvitaltoitsfutureprosperity. The Centre for Process Innovation (CPI), a lead driver in the UKs processing sector is nationally and internationally recognised for its successful model of market led innovation. It focuses on the commercialisation of new products and making new technologies ready for the marketplace, the centre is championing key technology areas that offer the most sustainable growth potential for the North East region and the UK as a whole. CPIs team has extensive experience within the conventional chemical processing industry. The SUSPROC (Sustainable Processing) Business Unit includes the UKs National Industrial Biotechnology Facility (NIBF) and the Anaerobic Digestion Development Facility (ADDC). It focuses on creating low impact high efficiency processes from bio and waste feedstocks to separated product for a range of markets including high value chemicals, sustainable fuels, and bio energy products using an open access asset that includes a range of reconfigurable technology units that include feedstock processing, digestion, fermentation, chemical processing and separation technologies such as homogenisation, filtration and centrifugation. It has developed and proved batch to continuous processes and created a number of highly resource efficientcommercialprocessesforitpartners. CPI is also developing a High Temperature Innovation Centre (HTIC) in partnership with Tata Steels Teesside Technology Centre. This will seek support businesses that operate or are developing processes such as gasificationandpyrolysisofbiomassandwastes.

Copyright2010NEPICandCPI

CONTENTS
ExecutiveSummary Introduction BiorefiningNorthEastEnglandsCurrent&ProposedActivity ExistingBusinessActivity ProposedBusinessActivity TechnologyDeployment TechnologyDevelopment ResearchCapability Conclusions

NorthEastofEnglandBusinessOpportunitiesfromBiomass&Waste

EXECUTIVESUMMARY
The market for renewable energy in the UK is being driven by a number of factors. Legislation, initially by the RenewableObligationprovidingfinancialincentivesingeneratingelectricityfromrenewablesources,followed by the Renewable Transport Fuels Obligation (RTFO) which seeks by 2020, to ensure that 10% (by energy) of UK transport fuel is derived from renewable sources. The UK Government is also seeking to incentivise renewableheatfrom2011. Increasing consumer acceptance and demand for natural products, along with increasing demonstration of performance against fossil fuel derived products and the realisation of the role of biomass products in contributing to greenhouse gas (GHG) emissions targets have started to lead to an expansion of the biomass usingindustryinrecentyears. In light of the above, the North East Process Industry Cluster (NEPIC), and Centre for Process Innovation (CPI) have carried out a strategic review of the growing biomass and waste derived renewable energy industry in North East England. This is in order to provide a framework for investment decisions over the short, medium andlongterm. In recent years the North East of England has seen a number of steps in the transition towards a biobased economy driven by factors such as climate change, GHG reduction and the spectre of falling oil reserves. Multiple drivers some policy, and some geographically dependant are steering an economy where material wastes are minimised and new bio products are replacing their fossil counterparts. Volatility in raw material pricesandfluctuatingdemandrequirerobustsystemstobeinplaceandcompetitiveinthelongrun. North East England, and the Tees Valley region in particular, is seeking to develop from an existing fossil fuel petrochemical based industry, to a more hybrid industry that uses a combination of fossil, bio and waste materials.Theregionhasavisionofbecominganinternationallysignificanthubforthebiofuelandrenewable energy industries. This document depicts the current position of North East England with its practical assets and technology capability, and sets outs a road map to help attract and encourage investment that will allow theregiontoachieveitsaforementionedvision. TheNorthEastofEnglandhasastrongpositioninallphasesoftheinvention,innovation,development, engineeringandoperationssupplychainthrough: Establishedprocessindustrybusinessesthatarecontinuouslyimprovingtheiroperations; Largecompaniesinvestinginnewbioandwastebasedtechnologies; SMEsdevelopingnewtechnologyandinvestinginproductionplant; Engineeringconsultingbusinessesthatdesignandbuildplantsbothintheregionandacrosstheworld; Nationallyandinternationallysignificantinnovationfacilitiesforindustrialbiotechnology,anaerobic reactionsandhightemperatureprocesses;and Astronguniversityresearchbase. Thesefacilitiesarecoupledwithanextremelystrongandwellestablishedskillsandtrainingbase. This range of facilities and people make the North East of England and the Tees Valley in particular as a key location for all aspects of the development of a lower carbon economy, greener and more sustainable chemicals,energyandprocessingsector.

NorthEastofEnglandBusinessOpportunitiesfromBiomass&Waste

INTRODUCTION
Tees Valley business leaders, local authorities and MPs united behind the NEPIC Ten Point Plan in November 2009, charting a path towards a more prosperous future for the chemicals industry. Industry leaders formulated an action plan to tackle the immediate and longer term challenges theprocesssectorfacestoensuretheWiltonsite in the Tees Valley and the wider chemical sector continues to be a pillar of the North East economy foryearstocome.Someofthetenpointsinclude: MarketingtheTeesValley Innovation CarbonCapture&Storage EnergyEfficiency SupplyChainDevelopment Feedstocks PartnershipWorking North East England has a rich heritage and history in the chemical, petrochemical and process industry sector, and infrastructure, to a large degree is in place, together with a skills base. In addition,theNorthEasthasadeepseawaterport, high level of chemical engineering skills and processinnovation.Theregionalsoboasts: Technology innovation facilities The North East of England is home to the Centre for Process Innovation (CPI). CPI operates three technology innovation facilities that support the development of biomass and waste technologies. These are the National Industrial Biotechnology Facility (NIBF); the Anaerobic DigestionDevelopmentCentre(ADDC);andthe High Temperature Innovation Centre (HTIC) in partnership with Tata Steel Teesside TechnologyCentre(TTC); Community planners in Tees Valley having an understanding and acceptance of process relatedbusinesses; Good logistics/transport infrastructure to handlemovements; Availabilityofbrownfieldsites; Technology/knowhowonkeytransformational technologiesfrombasicsallthewaythroughto hightechnology; Strong research universities working on the developmentofbiomassandwasteindustries; Strong further and higher education sector to deliverandupdateskills; Provisionofutilitiesandservices; Cavitiesforstorage; NaturalgasandCO2pipelines; Engineering capability and technology deployment. Planningpermissionsandlandavailability; Utilities;and Peoplewiththeappropriateskillsbase. By harnessing, linking and marketing these competitiveadvantagesthentheregionisinavery strong position to win a substantial amount of the lowcarbonprocessindustrythatisplannedforthe next20years.

The plan was submitted to Government within the departments for Business, Innovation and Skills, with a recommendation that business and Government work more closely together, forming a task group to identify new opportunities for growth. Government subsequently announced a 60 million fund, known as the Tees Valley Investment Programme (TVIP), in support of the regions industrial transition to low and advanced manufacturing. NEPIC is an industry led economic development cluster, recognised in Europe and elsewhere for its performance. Its members work closely together to attract investment, improve infrastructure, and share best practice on issues such as productivity and skills. The Cluster has brought 3 billion of investment to the Northeast of England and has generated a portfolio of over 4 billion of current active investment projects, all targeted at this part of the UK . Since its inception in 2004 it is credited by its members for generating over 600m of GrossValueAdded(GVA)fortheindustryandlocal communities. NEPIC has created a worldwide interest in biomass and renewable waste activities in Northeast England, a location which now has several biofuel, biomass & waste to energy projects already in full scale operation, in part due to NEPICs promotion of the potential of its membersanditslocalinfrastructurecapabilities.
NorthEastofEnglandBusinessOpportunitiesfromBiomass&Waste

 Itisrecognisedthatreinvestmentinexistingassets and investment in new assets is required. It is also recognised that issues, some key, need to be addressed and overcome for the UK to meet its renewable energy targets under the Renewable EnergyDirective(RED). Someofthesefactorsinclude: Thesustainabilityofsuchmaterial; Thechoiceoftechnologyapplied;

Logistics for the storage and distribution of materials and feedstocks, intermediate products, primary products and coproduct; and Proven processes based on fully developed technology. Additionally, for all investments a robust and long term supply chain (including availability of materials and feedstock) must be in place for a sustainedperiodoftimetoguaranteeprofitability.

TechnologyInnovationFacilities
NationalIndustrialBiotechnologyFacility(NIBF) TheNationalIndustrialBiotechnologyFacility(NIBF)isacommercialfacilityoperatedbyTheCentreforProcess Innovation(CPI)andisdesignedtohelpcompaniesofallsizesdevelopbiotechproductsandprocessesquickly andcosteffectively.NIBFcombinesuniqueopenaccesstestingandscaleupfacilitieswithpracticalexperience and applied knowledge of science and engineering. The first phase was opened in 2007, the facility can develop biotechnological processes from 1 to 10,000 litres. The second phase that can develop and prove processes of up to 10t is being commissioned towards the end of 2010. The extensive combination of equipment at NIBF is supported by the teams knowledge of process development and scaleup and enables derisk product and process development, providing a very effective route to proof of concept. The approach is geared towards manufacturing in a commercial context to meet high profitability and quality benchmarks, with the target of ensuring the process is robust and will work the same way, with consistent output every time. AnaerobicDigestionDevelopmentCentre(ADDC) TheAnaerobicDigestionDevelopmentCentre(ADDC)isdesignedtoprocessawiderangeofwastesinsingleor mixed streams. It has a range of pretreatment, digestion and posttreatment technologies that are rapidly reconfigurable to allow the development of novel and improved anaerobic digestion processes. The ADDC is a flexible plug and play plant that provides support for businesses to improve and develop Anaerobic Digestion (AD) technologies. The facility is capable of conducting experiments and production runs with the aim of reducingsizeandcostofADinstallations;increasingyield;anddevelopingtreatmenttechnologiesbuttoname afew. HighTemperatureInnovationCentre In late 2010 CPI announced that it would be building a new high temperature innovation centre in collaboration with Tata Steel, the worlds 7th largest steel company. The centre will be located at Tata Steels TeessideTechnologyCentre.Thefirmcontinuestoemploymorethan2,500people. The multi million pound project will be based at the existing Tata Steel process research facility, on Teesside, and will consist of two pilot plants a 350kg pyrolysis oven anda 2 metre diameter fully flexible gasifier. This is significant as the scale of the equipment is midway between laboratory and industrial production, enabling companies to hire the facilities to test the viability of their processes and seek help in developing them. It is expected that the research conducted at the site will lead to novel sources of energy, the recovery of raw materialsandreductionsinthevolumesoforganicwasteproduced.

NorthEastofEnglandBusinessOpportunitiesfromBiomass&Waste

NorthEastOfEnglandPriorityMatrix Table 1 depicts North East Englands strengths in relation to strategic investment priorities. High regional strengths include skills, stakeholder backing; storage and logistics and technology innovation facilities.

Table1:PrioritiesMatrix
BA SB SL T BiomassAvailability StakeholderBacking StorageandLogistics Technologies TI RP SC SK TechnologyInnovators Regulation&Policy SupplyChain Skills

Whilst there is a need for new investment to support the Renewable Energy Directive targets, there is also a requirement to support and develop existing business activity. The report is split into four sections that map against business Technology Readiness Level (TRL) 89. A brief explanation of TRL is detailed in Table 2. The reportprovidesanoverviewofbiorefiningactivitiesandthenhasthefollowingsections: Existingbusinessactivity(TRL8and9); Proposedbusinessinvestments(TRL8and9); TechnologyDeploymentActivities(TRL7and8); TechnologyDevelopment(TRL47); Research(TRL13)

NorthEastofEnglandBusinessOpportunitiesfromBiomass&Waste

Table2:TechnologyReadinessLevels Technology ReadinessLevel 89

Activity Marketoperationandcommercial business Convertingresearchintoaprovenand operableprocess Basicresearch

Organisations

Commercialcompanies Technologydevelopmentorganisations andtechnologydeliverers Universitiesandinventors

47

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BIOREFININGNORTHEASTENGLANDSCURRENT& PROPOSEDACTIVITIES
North East England, and the Tees Valley region in particular, is seeking to develop from an existing fossil fuel petrochemical based industry, to a more hybrid industry that uses a combination of fossil, bio and waste materials. Figure 1 shows an overview of the Biorefining Classification System1 with the existing Teesside Petrochemical Industry shown at the bottom and migrating into a hybrid industry over time. However, this reportdoesnotlookindepthattheexistinginfrastructure. Figure1:OverviewoftheBiorefineryClassificationSystem

InternationalEnergyAgency(IEA)BioenergyTask42BiorefineryDocument

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NorthEastofEnglandBusinessOpportunitiesfromBiomass&Waste

Figures 2ah outlines North East Englands activity, current and proposed, using a range of differing biomass andwastebasedmaterials.Thebelowlegendisapplicabletofigures2ah.

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NorthEastofEnglandBusinessOpportunitiesfromBiomass&Waste

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NorthEastofEnglandBusinessOpportunitiesfromBiomass&Waste

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EXISTINGBUSINESSACTIVITY
CASESTUDYONE:LargePetrochemicalComplex
CompanyCoreBusiness Producing in excess of three million tonnes of petrochemical products per annum from highly integrated and well established manufacturing assets at Wilton International & North Tees sites within the Tees Valley. This is achieved from importing significant volumes of Naphtha, Butane and Propane. Products such as ethylene, propylene, butadiene and gasoline products are produced on the worldscale Olefins 'Cracker' facility at Wilton. Two million tonnes of products and feedstocks are stored and distributed via crosscountry pipelines, road and ship. Site infrastructure includes an aromatics complex, principal jetties, liquefaction capacity and main saltcavitystorage. ImportanceoftheNorthEasttothecompanyand impactupontheNorthEasteconomy Wilton is a major European manufacturing site with some technology support. Production is in excess of 3 million tonnes. 800 direct employees and a further 500 full time support contractors employed directly on site. The replacement asset valueisgreaterthan2bn. CriticalIssues Energycostofenergy,efficiencyof production; Feedstockscompetitiveness,sustainability; Carbonimpactofcarbontaxes,costofcarbon captureandstorage(CCS);and Continuousoperationandcostimprovementto maintaincompetitivemarketposition. PotentialSolutions Energyinvesttoimproveefficiency; FeedstocksincreaseflexibilitytouseLPG,bio basedfeedstocks(frombiomass,waste,non foodcrops,polymerrecyclingasafeedstock); and CarbonparticipateinCCSprovingschemes. OpportunitiesforCollaborativeDevelopment New, lower carbon, feedstock is vital for the long term success of the Process Industries both in the UK and in global areas experiencing difficulties with traditional petrochemical derived feedstock. A feedstock initiative was one of ten industry backed proposals (NEPICs Ten Point Plan) for transforming Wilton and the Tees Valley Process Industry. NEPIC together with a number of manufacturing units across the Tees Valley have sought to outline the position of the Chemical Industry in the Tees Valley in respect of its current dependence on fossil based feedstocks, and what potential opportunities exist in transferring some ofthisfossildependencetorenewablesources. Subsequent to the Ten Point Plan, some funding has been made available from Government BIS (Business, Innovation and Skills) and One North East with an emphasis on identifying projects under Tees Valley Industrial Programme (TVIP). Feedstocks have been incorporated into an innovation work stream within TVIP. The programme seeks to develop private sector driven models of innovation working directly with key companies to develop future innovation activity, including increasing access/sharing of expertise and access through open innovation, collaborative programmes and scale up of novel bio refining routes including sharing of bio feedstocks. Regional support should be concentrated in the area of an overall sustainable Tees Valley with mixed feedstocks, and regional opportunity to produce synthetic naphtha, propane and butane frombiomass/wastematerials.

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CASESTUDYTWO:GrowHowUK
CompanyCoreBusiness GrowHow is the UKs only remaining fertiliser manufacturer. Its Billingham site output is split 50/50 between industrial chemicals (ammonia and nitric acid) and ammonium nitrate fertiliser within a continuous process. GrowHows ammonia plant isattheheartofitsmanufacturingoperations.The plant uses a high volume of gas as a feedstock in an energy intensive process. Within this process, as a biproduct, high quality CO2 is separated, captured, compressed and made available for downstream use. Currently, the process takes natural gas and reforms this to make syngas. The hydrogen from this syngas is then separated and reactedwithnitrogentoformammonia. ImportanceoftheNorthEasttothecompanyand impactupontheNorthEasteconomy TheBillinghamsitesitsatthecentreofaclusterof mutuallydependent nitrogenreliant businesses based in the Tees Valley. It is the only major UK manufacturerofammoniaandnitricacid,bothkey industrial building block chemicals. As well as supplying utilities for neighbouring manufacturing facilities, the site directly employs 190 people, with a great many other jobs in the NorthEast relyingupontheproductsthatitmanufactures. ProcessFlowDiagram CriticalIssues Long term stable, reliable and cost effective energy supply is critical to GrowHows business;and Continuousoperationandcostimprovementto maintainacompetitivemarketposition. PotentialSolutions Carbon Capture and Storage; GrowHow possesses substantial quantities carbon capturereadyCO2;and Renewable hydrogen (given that GrowHow do not require CO2 as a part of the process), syngas where there is preferably a high hydrogen to CO2 ratio or a renewable gaseous fuel. OpportunitiesforCollaborativeDevelopment At this juncture, the North East region has a number of potential investors interested in generating syngas from renewable raw materials. In conjunction with industry, NEPIC believes there is an opportunity for collaborative work to be undertaken by investing in a regional syngas demonstrator unit. Research and development in downstreamproductsfromsyngas(e.g.renewable fuels, chemicals and synthetic natural gas) is being carriedoutbycompaniessuchasOxfordCatalysts. In order to drive forward development of bio synthetic natural gas (BioSNG), NEPIC has commissioned a feasibility study for establishing a regional project. The study will look into the technology options, the commercial status and feasibility of establishing a lead beacon project in theNorthEast. Regional support should be offered in the followingareas: SustainableTeesValleywithmixedfeedstocks; and Gasificationtechnologydevelopment potentialuseofTataSteelTTCasahigh temperaturecentre.

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CASESTUDYTHREE:HuntsmanPolyurethanes
CompanyCoreBusiness Huntsman Polyurethanes (HPU) is a global leader in providing MDI (methylene diisocyanate) based polyurethane solutions across an extensive range of applications and market sectors. High performance insulation, comfort, adhesion and protective coatings are some of the product benefits. The company aim is to grow the polyurethane market in partnership with customersthroughinnovation,responsivenessand commitment. ImportanceoftheNorthEasttothecompanyand impactupontheNorthEastEconomy The Wilton site is strategic to Huntsman polyurethane manufacturing capability. HPU employs 80 people at Wilton involved in the manufacture of mono nitrobenzene and Aniline, bothofwhicharethelargestplantsoftheirtypein the world. The majority of the Wilton Aniline supplies are shipped toRozenburg, Holland for the manufacture of MDI. The remainder is sold on the external market and is used in a variety of products. ProcessFlowTeesValleyIntegration At Wilton, HPU nitrate Benzene (250K tonnes per annum which is imported and fossil derived) with Nitric Acid (ex GrowHow and also fossil derived fromnaturalgas)toproducemononitrobenzene: C6H6+HNO3C6H5NO2+H2O The mono nitrobenzene is hydrogenated (via hydrogenandalsofossilderived)toAniline C6H5NO2+3H2 C6H5NH2+2H2O CriticalIssues Similar to other major chemical producers in the Tees Valley in that cost effective energy and raw materials are critical and capturing carbon is becomingmoreandmoreofafocus. Continuous operation and cost improvement to maintaincompetitivemarketposition PotentialSolutions Again, very similar to other major chemical producers in the Tees Valley in that they are keen to have access to renewable chemical feedstocks. HPUareinterestedingreenroutestoBenzene. OpportunitiesforCollaborativeDevelopment Regional support should be offered in the followingareas: SustainableTeesValleywithmixedfeedstocks; Gasification technology development potential use of Tata Steel TTC as a high temperaturecentre;and Bioroutestochemicals.

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CASESTUDYFOUR:Ensus
CompanyCoreBusiness Ensus is a leading producer of sustainable bioethanol to the European transport fuels market by refining arable crops such as wheat into food and fuel. The Ensus refinery2 is reducing greenhousegas emissions (ghg) by aroundseventy per cent (70%) in comparison to the use of fossil fuels, improve food and energy security, and reduceEuropeandemandforanimalfeedimports. ImportanceoftheNorthEasttothecompanyand impactupontheNorthEasteconomy Ensus represents more than 300M of privately financed investment supporting/creating some 2000 jobs in manufacturing and sustainable farming. The Tees Valley plant will produce in excess of 400M litres sustainable bioethanol and 350Ktonnesofhighproteinanimalfeed. Ensus believe that they are an excellentcase study as to how private capital can play a major role in investing in new, green jobs in the UK, as well as positively contributing to tackling climate change and enhancing the UKs energy and food security. Ensus 1 plant, located at Wilton, represents Ensus firstmanufacturingasset. Ensus is looking to invest further and take the company forward. The forward developing plans will depend a lot on the local policy frameworks and the business case for further investment. A range of investment opportunities including Northern Europe as well as the North East of Englandwillbeconsidered. ProcessFlowDiagram
Ensus SchematicOverviewOfBioethanolProcess

CriticalIssues Stabilise the plant in terms of consistent productionandqualityoutput; Continuousoperationandcostimprovementto maintaincompetitivemarketposition;and Promoting technology development and further enhance the sustainability of the business model by converting agricultural residueintobioethanol. PotentialSolutions Working in conjunction with CPI and utilising the NIBF, there is an opportunity for Ensus (and potentially other regional biofuel players such as Four Rivers and Harvest Energy) to develop advanced technology biofuel products. As such, this will provide potential for the UK, and the North East in particular, to be at the forefront of progress being made in advanced or next generation biofuels/biorefining processes. In the case of Ensus, the technology in question could be focussed on developing an advanced process for the conversion of agricultural residue into sustainablebioethanol. Technical development could be built upon by investing in a demonstrator unit which could provide the possibility for rapid development to commercialisation. OpportunitiesforCollaborativeDevelopment Regionalsupportshouldbeofferedinthe followingareas: Biofueldevelopment;and Support Ensus building on what it has in the NorthEastofEngland

Ensusbioethanolgeneratesaround70% greenhousegas(GHG)savings www.ensusgroup.com

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CASESTUDYFIVE:GraphiteResources
CompanyCoreBusiness The reprocessing of municipal and commercial waste for the recovery of their constituent parts for recycling and reuse andto recover itsbiogenic content for onward conversion into high value green products such as bioenergy, biofuels, bio chemicalsetc. ImportanceoftheNorthEasttothecompanyand impactupontheNorthEasteconomy The company origins are in the North East and together with the heritage and skills base of existing process sector and a supportive environment meant that the North East was the preferred location. At the site at Derwenthaugh Newcastle,75directjobshavebeencreatedwitha further 75 employed within the supply chain. The importance of this development is the diversion of waste(s) from landfill, and at the same time, creatinganewvalueIndustrychain. ProcessFlowDiagram
4065%CellMatt Fibre
1015%Plastic+

CriticalIssues Critical issues are fiscal and regulatory policies. Planning,nationalandregionalwasteandrecovery strategies need to be flexible and responsive and interacts with the market, not fixed in tablets of stone for long periods. Thecompany believes that the UK Government needs to provide continual and stable financial/tax incentives such as ROCs and landfill tax but, in addition, it needs to be quick and creative with incentives so new industriesareencouragedandhelpedtodevelop. An example is the production of Bio oil from biomass upgradeable to road transport fuels or even platform chemicals being eligible for ROCs. ThiswouldallowaPhase1investment(production of Bio oil) to be a bankable project so that from this platform it would then be feasible to further upgradetheBiooiltoaroadtransportfuel. Further to this, the company believes that the Government needs to consider creating incentives to produce chemicals from biomass. If such an incentive was available, significant competition for the burning of biomass to generate electricity wouldexistduetothevalueoraROC. OpportunitiesforCollaborativeDevelopment Regionalsupportshouldbeofferedinthe followingareas: Depolymerisationofrecoveredwasteplastics forchemicalfeedstocks; Gasificationtechnologydevelopment potentialuseofTataSteelTTCasahigh temperaturecentre; Pyrolysis; Supportforthefocusseddevelopmentof advancedchemicalandmaterialsprocess technologies(CPIandrelatedUniversity CentresofExcellence);and SupportGraphiteResourcesinsecuringa secondplantwithintheNorthEast.

100%Wasteto
autoclave

45%Metal+ (Ferrous&nonferrous) 45%Glass+ 515%Otherrecyclates+ 1030%residue+

+ Variabledependinguponcharacteristicsofinput wastes

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CASESTUDYSIX:SembcorpUtilities(UK)Ltd.
CompanyCoreBusiness Sembcorp Utilities (UK) Ltd. is an industrial utilities and services company based in the North East of England. During 2007, Sembcorp commissioned a 34MW dedicated biomass power station, which consumes ca 300,000 tonne/annum of timber based biomass (a mixture of virgin, recycled and waste wood and some short rotation coppice energycrop). ImportanceoftheNorthEasttothecompanyand impactupontheNorthEasteconomy Sembcorp is a major employer in the North East and is a key supplier of essential utilities such as steam, water and power to major international companies at Wilton, and in addition, has development land available at Wilton to potential investors. The biomass power station created 15 new permanent employment opportunities, with many more indirect jobs created with regards to the biomass fuel supply chain and service supplier contractors. ProcessFlowDiagram CriticalIssues Maintaining a source of sustainable UK biomasssupply; maintaining a level of support for Renewable Obligations Certificates (ROCs) for generating powerfrombiomass;and Continuousoperationandcostimprovementto maintaincompetitivemarketposition. PotentialSolutions Investment in UK biomass supply chain infrastructure to enable biomass suppliers to have the confidence to enter into long term sustainable fuel supply agreements. There needs to be a swift conclusion to confirming the future level of support relating to ROCs, especially in relation to biomass combined heat and power (CHP). A further review of planting grant support for farmers is needed in order to encourage growers toconsidertheplantingofenergycropsandbetter understand the crop yields and commercial sensitivities help can be provided in this area by NationalNonFoodCropsCentre(NNFCC). OpportunitiesforCollaborativeDevelopment Regional support should be offered in the followingareas: Develop and strengthen timber based biomass availability; Develop and strengthen timber based supply chainandinfrastructure;and Accesstonewgridcapacity.

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PROPOSEDBUSINESSACTIVITY
Activities in this area are around supporting inward investment, in new operations that use proven renewable technologies. These organisations need focused support to coordinate their development activities. The followingproposedbusinessactivitycasestudiesarescaledatTRL89,detailsofwhicharetabledbelow. Table2:TechnologyReadinessLevels Technology ReadinessLevel 89

Activity Marketoperationandcommercial business Convertingresearchintoaprovenand operableprocess Basicresearch

Organisations

Commercialcompanies Technologydevelopmentorganisations andtechnologydeliverers Universitiesandinventors

47

13

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PROJECTONE:IneosBio
CompanyCoreBusiness

ProposedProject/InvestmentWastetoBioethanol
ProcessFlowDiagram

INEOS Bio develops, licenses and operates green process technology for global use. The INEOS Bioethanol process is an innovative industrial biotechnology, which has been extensively developed and proven on an integrated, demonstrationscaleplantintheUSAsince2003.A wide range of carbon feedstocks have been successfully tested through a rigorous and extensiveresearchanddevelopmentprogramme. ImportanceoftheNorthEasttothecompanyand impactupontheNorthEastEconomy A $50m grant from the US Administration, together with other financial incentives, have encouraged INEOS Bio to build the first full scale plant in the USA. INEOS Bio have identified the NorthEastofEnglandasasuitablelocationforthe first full scale plant in Europe. If this plant was to be built in the UK, a significant investment is required but the plant would then act as a key reference facility enabling further deployment of the technology throughout the UK and the EU27, helping to meet targets for the sustainable production of renewable energy and management of waste. The benefits to the UK and to the EU by supporting the introduction of biofuel production from lignocellulosic and waste materials go beyond decarbonising transport. The emerging renewable energy sector is vital to the economic recovery of the EU27 and to its energy independence. The Front End Engineering and Design (FEED) for the Seal Sands plant has been completed with grant support from Department for Energy and Climate Change (DECC) and One North East (ONE). Full planning consent was awarded by Stockton Council during Q1 of 2010, and the contractual arrangements for services, utilities and feedstock supply are well advanced. Closing financing is the lasthurdlebeforeconstructioncanbegin.
NorthEastofEnglandBusinessOpportunitiesfromBiomass&Waste

AssociatedRisks As the USA plant is being built in 2010 any technologyproblemsarelikelytobeidentifiedand resolved. CriticalSuccessFactors At this time, INEOS Bio has not closed financing and have therefore not committed to Seal Sands. However, the Seal Sands site/Teesside area provides: Existingsiteinfrastructure Directaccesstogridconnection; Colocated with gasoline blending facilities and ethanolinfrastructure; Access to port, jetty and oxygen as a critical rawmaterial;and Petrochemical/engineeringheritage Howtomakeithappen Significant grant support has already been awarded for feasibility. However, the capital costs of advanced or second generation biofuel process technologies are such that incentives are required for the first plants. Companies have a choice as to wheretheyinvestgloballyforthesefirstplants.

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Continued... BloombergNewEnergyFinancereportsthatinthe past five years, the US government has been very proactive in its support of the nextgeneration biofuels industry. Developers have responded positively to this government initiative, which has resulted in twice as many projects being on the drawing board as in EU27. As the Seal Sands plant would enable the rapid deployment of biofuel from waste across the EU27, it is feasible that the INEOS Bio process technology could provide enough sustainably produced bioethanol from waste and lignocellulosic material in Europe to contribute around 1% of the 10% renewable energy target in petrol by 2020 and reduce fossil GHG emissions from transport by over 3.8 million tonnes per year. Therefore, it is recommended that European Commission grant funding should bemadeavailablefortheSealSandsproject.

OpportunitiesforCollaborativeDevelopment Regionalsupportshouldbeofferedinthe followingareas: Gasification technology development potential use of Tata Steel TTC as a high temperaturecentre;and Biofueldevelopment.

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PROJECTTWO:PYReco
ProposedProject/InvestmentPyrolysisOil/CarbonBlackfromWasteTyres
CompanyCoreBusiness The large scale tyre pyrolysis technology to be utilised initially at the site in the Tees Valley will process shredded tyres without waste or harmful emissions. In addition, the process will recover all materials namely high grade carbon black, oil (similar to number 2 grade), steel and non condensable gases for industry or power generation. Phase 1 of operations will pyrolise 60,000 tonnes of used tyre shred which will generate 20,000 tonnes of carbon black, 32,000 tonnes of pyrolysis oil and gas as well as 8,000 tonnes of steel on the WiltonSite. As one of the most important industrial chemicals in the world, carbon black represents a $9 billion global market. It has widespread use in many industrial processes including tyres, rubbers and plastics,printinginksandcoatings. ConventionalCarbonBlackProduction Conventional carbon black production uses heavy oilsasfeedstockandtheprocessconsumesca1.32 tonnes of oil to produce 1 tonne of carbon black; the existing environmental impact is clear, together with consumption of oil as a vital and strategicresource. ImportanceoftheNorthEasttothecompanyand impactupontheNorthEastEconomy In Phase 1, the oil will be burnt along with the gas to produce steam and ultimately electricity. Research will be conducted to evaluate alternative use of the oil, extraction of valuable components and/or use as feedstock for other chemical processes. Phase2isplannedtocommenceimmediatelyas Phase1iscompletedandwilldoublethecapacity. AssociatedRisks This has been minimised by performance being underwritten by Metso, the patent holders, and oneoftheworldsleadingengineeringcompanies. TheprojectifexpandedaspredictedthenPhase3 willhavethecapabilityto: SolvetheUKusedtyreproblem; Aid motor manufacturers meet their end of life vehiclestargets(ELV);and Contribute up to 2.25% of the UKs carbon reductiontargets. It is estimated Phase 1 will cost 85m and generate 70 full time direct skilled jobs with a further210indirectjobsexpectedtobecreated.It is estimated 350 construction jobs, sourced locally on Teesside, will be created in Phase 1 and Phase 2, giving employment for 3 years. If Phase 3 is commissioned there is the potential to employ between 400 and 500 skilled direct jobs on the Wilton site this is achievable within a five year timescale. ProcessFlowDiagram

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Continued... CriticalSuccessFactors PYReco need to raise 85m to begin construction of the first plant, and are targeting Q1 2011 to achieve this. A site has been identified at Wilton but the following are needed by the financial institutions: An agreement on the lease of the site and utilitysupply; Heads of Agreement for the supply of raw materialstotheplant;and Heads of Agreement for the sale of manufactured products Carbon Black, oil and steel. Howtomakeithappen Help with funding via the local grant for businessinvestment(GBI); A letter of support from DEFRA to help secure privatefunding; Carbon Trust study to prove the environmental benefit (v fossil) and independently verify the CO2savings;and PYReco are considering collaboration with Durham University to set up a pyrolysis research centre and Centre of Excellence associatedwiththefacility.

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PROJECTTHREE:AirProducts
ProposedProject/InvestmentSyngasfromGasificationofWaste
CoreBusiness Air Products are a leading player in the global industrial gases market. They are looking to build at least one ca 50MW energy from waste facility using advanced plasma technology to produce syngas. In the first phase of development, the syngas would initially be converted to electricity via gas turbines. Further development phases could see the syngas converted to hydrogen and usedinfuelcelltechnology,therebyincreasingthe efficiencyofelectricitygeneration. ImportanceoftheNorthEasttothecompanyand impactupontheNorthEastEconomy Air Products intend to build a full scale plant generating approximately 50MW of electricity. Once the technology is proved their intent is to build new plants and expand internationally from the initial location. The first location could also benefit from these expansion plans generating significant local benefits in terms of jobs and the production of meaningful quantities of syngas which could form the basis of downstream chemical product manufacturing and/or hydrogen/power investments. Securing such an investment has many benefits to the Tees Valley region. AssociatedRisks The technology is new therefore scaleup risks existwiththisproject. CriticalSuccessFactors Asiteonwhichtobuildthefacility; Anoutletforelectricity; Asecuresourceofapproved/sortedwaste; Supplychaincontract(s)inplace;and Support from the region as other regions/countries are offering financial inducementstoattractthefirstsite. Howtomakeithappen One North East has supported the project with capital to encourage the submission of a planningapplication; Support is needed either to help waste suppliers (Impetus identified) upgrade existing sites (again, Impetus North Tees site identified and estimated cost ca 6M) or help in identifying an alternative site for the installation; In relation to raw materials, Impetus has the advantage in that they have some waste contracts secured, land availability and access to landfill facilities for use when the plant is beingcommissionedandworkedon; Direct support for Air Products is required in order to ensure that the North East region is looked upon favourably for this investment, as other regions are competing for the project; and Further local support for Air Products to undertake a subsequent assessment of any furtherexpansionoftheproposedfacility. OpportunitiesforCollaborativeDevelopment Regional support should be offered in the followingareas: Gasification technology development potential use of Tata Steel TTC as a high temperaturecentre.

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TECHNOLOGYDEPLOYMENT
TheNorthEastofEnglandishometothedesignteamsofanumberofmajorengineeringcontractors,which designprocessplantforawiderangeofindustries.ExamplesoftechnologydeploymentcompaniesinNorth EastEnglandaresummarisedinthetablebelowandscaledatTRL78.
ABBEngineeringServicesareaninternationaltechnicalconsultancyprovidingarangeofservices including licence to operate, asset management, manufacturing improvement and capital investment to customers in the chemical, petrochemical, oil and gas, pharmaceutical, manufacturing and consumer industries worldwide. As part of ABB, the global engineering and technologygroup,haveaccesstotheexpertiseofover107,000employeesinover100countries aroundtheworld. A Process Development Business supplying services to the chemical industry. The company provides both licensed technologies and customised process development services for petrochemicals, fine and speciality chemicals manufacture. Based in London and also at the Technology Centre in StocktononTees. The business in Stockton specialises in developing, improvingandscalingupofchemicalprocessesonacustomisedbasis.TheTechnologyCentreis a purpose built stateoftheart laboratory and pilot plant facility where they have many years practical experience of process development and scaleup from laboratory to commercial production. They have a strong reputation in the industry having worked with many major companies including BP, Johnson Matthey, Dow, DuPont, Lucite, Sasol and SABIC to name but a few. JohnsonMattheyCatalystsisaDivisionofJohnsonMattheyplc,whichhasoperationsinover30 countriesandemploysaround7,700people.JohnsonMattheyisaspecialitychemicalscompany focused on its core skills in catalysts, precious metals and fine chemicals. The Catalysts Division is made up of a number of parts. One of these serves the Ammonia, Methanol, and Oil and Gas markets known internally as "AMOG". The AMOG business has commercial, research and technicaldevelopmentfacilitiesatBillingham.TheAMOGbusinesshasagreatbodyofexpertise and knowledge with a long heritage in synthetic gas catalysts and technology. They also supply and develop purification catalysts and technology to handle the removal of many different impuritiesfortheoilrefiningandgasprocessingindustries. Design, deliver and support infrastructure from technical services to international landmark projects, leading the field in project management and services. Their ambition is to continue to be one of the world's leading international project management and services companies by bringing added value to their clients, investing in their people and the communities they work with. Aker Solutions is a leading provider of total lifecycle engineering services to the nuclear, water, metals, energy and process industries. They have an extensive, demonstrable track record of providing these services stretching from concept to implementation and operation, taking in project management, process improvement and culminating in deconstruction and decommissioning. They also provide specialist support in the fields of safety, environment, land contamination, remediation, health, risk and reliability to Greenfield and Brownfield development through their consultancy services. Their proven track record demonstrates their ability to provide innovative and technologydriven solutions that are focused on customer satisfaction. Atkins is one of the world's leading engineering and design consultancies. They have the depth and breadth of expertise to respond to the most technically challenging and time critical infrastructure projects and the urgent transition to a lowcarbon economy. Whether its the concept for a new skyscraper, the upgrade of a rail network, the modelling of a flood defence systemortheimprovementofamanagementprocess,theyplan,designandenablesolutions.

ABB

DavyProcess

JohnsonMatthey

AMEC

AkerSolutions

Atkins

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DoosanBabcock

DoosanBabcockdesigns,suppliesandconstructsadvancedsteamgenerationtechnologyforthe power industry. They develop some of the cleanest, most efficient coalpowered plant in the world. They are a leading multispecialist energy services company operating in the thermal power, nuclear, oil & gas and petrochemical industries. Through their innovation they support and enhance the service life of energy assets across the world. With global headquarters in the UK,DoosanBabcockemployeesaround5,000personnel. For over 35 years, K Home International (KHI) has been delivering successful projects in the UK and around the world from its Teesside head quarters and regional offices in Dubai and Abu Dhabi. The company has implemented a strategic intent which is to continuously develop and expand its services and has developed an international reputation within the Pharmaceutical, Chemical & Petrochemical, Renewable Energy, Oil & Gas, Metals & Minerals, Infrastructure and Food & Beverage industries. Flexibility, the development of cost effective solutions, rigorous QualityManagementSystemsandanexcellenttrackrecordinSafety,HealthandEnvironmental IntegrityarethefundamentalvaluesofKHI'sbusinessobjectives. Since opening their office in Newcastle in 1967, Arup staff has been responsible for the design and delivery of numerous successful development projects throughout the North East of England. These commissions, large and small, encompass technical studies, infrastructure projects and buildings of all types, contributing significantly towards the regeneration of the area.InresponsetotheacceleratingrenaissanceofTeesside,andtobetterservetheirclientsin thearea,theyhaverecentlyopenedanofficeinStocktononTees.Theynowemploymorethan 150staffintheregion. INVISTA Performance Technologies (IPT) is a technology licensing group within INVISTA, one of the worlds largest integrated producers of polymers and fibers, primarily for nylon, spandex and polyester applications. IPT provides the resources and know how to deliver worldscale technology for licensing to a growing portfolio of technologies in the polyester, polyurethane and nylon value chains.IPT has a long and varied pedigree. Many of the professionals and technicians in this organisation worked for ICI and DuPont prior to the transition to INVISTA. With a strong background in R&D and manufacturing, this team revolutionised the polyester value chain. Plant process design and project execution skills have been married with expert functional engineering and production knowhow to produce a group of engineers with unparalleledexpertiseinthelicensingofINVISTAtechnologies. Jacobs is a highly reputable engineering and construction company providing a full spectrum of professional and field services. From concept to completion they provide clients with the full range of services: market studies, technology evaluation and selection, configuration studies, energy optimization, environmental permitting, process and detailed engineering design, procurement, construction management, commissioning, turnaround planning and asset management. These projects are of all sizes from small projects to major capital programme management. Cordell group is a multidisciplined engineering design, fabrication and construction company. They provide services in the chemical, petrochemical, oil & gas, utilities, metals, food, manufacturing and marine industries. Offering engineering resources in civil, structural, mechanical, electrical, control and instrumentation disciplines they can provide anything from a singlemachinedcomponenttoacompleteprocessplantinhouse.Theyalsosupplymechanical, electrical and instrumentation maintenance services. Cordell are proactive in the development and training of their staff and actively seek and train apprentices and graduates across all areas oftheirbusiness. Foster Wheeler is one of the world's most prestigious engineering and construction groups with a proven track record for worldclass project execution. Foster Wheeler has total project capability from conceptual studies and frontend design, through to detailed design, procurement, construction and commissioning. They have a collaborative and flexible approach to project needs, often working in integrated teams, alliances and longterm partnering agreements. Significant repeat business from satisfied customers clearly demonstrates a willingnesstoreturntoFosterWheelertimeandtimeagain.

KHomeInternational

Arup

InvistaTechnology

JacobsEngineering

Cordell

FosterWheeler

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TECHNOLOGYDEVELOPMENT
The North East of England is home to a number of organisations that work to develop and prove new technologies. They have unique assets and highly innovative technology based workforces. Their activities are focused on developing, proving and protecting the intellectual property that creates new deployable technologypackages.ThemajorfacilitiesarepartoftheCentreforProcessInnovation(CPI). The Centre for Process Innovation (CPI) is a leader in theUKs processing technologydevelopment sector and is nationallyand internationally recognised for its successful model of market led innovation. It focuses on the commercialisation of new products and making new technologies ready for the marketplace, the centre is championing key technology areas that offer the most sustainable growth potential for the North East region and the UK as a whole. CPIs team has extensive experience within the conventional chemical processing industry. The SUSPROC (Sustainable Processing) Business Unit includes the UKs National Industrial Biotechnology Facility (NIBF) and the Anaerobic Digestion Development Facility (ADDC). It focuses on creating low impact highefficiencyprocessesfrombioandwastefeedstockstoseparatedproductforarangeofmarketsincluding high value chemicals, sustainable fuels, and bio energy products using an open access asset that includes a range of reconfigurable technology units that include feedstock processing, digestion, fermentation, chemical processingandseparationtechnologiessuchashomogenisation,filtrationandcentrifugation.Ithasdeveloped and proved batch to continuous processes and created a number of highly resource efficient commercial processesforitpartners. CPI is also developing a High Temperature Innovation Centre (HTIC) in partnership with Tata Steels Teesside Technology Centre. This will seek support businesses that operate or are developing processes such as gasificationandpyrolysisofbiomassandwastes. Thefollowingtechnologyoverviewsoutlinetheprocessdevelopmentandmarketopportunitiesinanumberof areasintherangefromTRL47: ThemixofFossil,Bio&WastebasedMaterials; AlgaeforCarbonCapture,Fuels&Chemicals; BioroutestoChemicalBuildingBlock; AnaerobicDigestion; Biomining; BiofuelDevelopment; PyrolysisTechnologyDevelopment; GasificationTechnologyCentre;and DepolymerisationofChemicalFeedstocks.

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SustainableNorthEastProcessIndustryusingaMixofFossil,BioandWaste BasedMaterials
Process Development Opportunity: To transform process industry activities by reducing its reliance on imported fossil fuels through developing a mixed feedstock base of bio, fossil and waste products. This will require an understanding of future needs and the identification of new technologies, which can be integrated into the regional industry system. There is a need to identify efficiency gains in energy and feedstock and to reduceCO2emissions.Thiscouldlinkotherinvestmentprojectsinacrosscommunityapproachthatintegrates heat, power and resource use across public, private and third sector organisations, and make the North East regionanexemplarfortheUK. Market Opportunity: All process industry complexes must continuously seek ways to increase efficiency, reducecostandreducetheproductionofemissionsandwastes.Theseactivitiesreducethecostofoperations andtherebyincreaseprofitability.

AlgaeforCarbonCapture,Fuels&Chemicals
Process Development Opportunity: To use rapidly growing plants, in the form of algae, to capture and use carbon dioxide or to produce non fossil fuels and chemicals using algae routes. An ideal would be to develop existingactivities,includingtheprojectsinprogressatCPIandextendthemintoalargerprocessdevelopment activity. Market Opportunity: Carbon capture is a necessary cost that all carbon dioxide emitters will have to pay in comingyears.As a working assumption, it is likely that every tonne of CO2 produced will cost around25. The Tees Valley emits around 7 million tonnes of CO2 per year, costing over 175 million per year. By growing valuable products that use carbon dioxide or avoid the use of fossil fuels, value can be created. The large carbon emitters in the Tees Valley can develop alternative technology, which can be owned by the industry therebycreatinglicenseincomeaswellasreducingemissionsandproducingvaluableproducts.

BioroutestoChemicalBuildingBlocks
Process Development Opportunity: The opportunity is to develop processes that produce or replace chemicals and petrochemical building blocks through the application of industrial biotechnology. The North EastofEnglandisnationallyrecognisedasaninnovationcentreinthisactivityasCPIisthesiteoftheNational Industrial Biotechnology Facility which can now operate up to 10t scale. The NIBF is now providing services to establishedandnewcompaniesworkingintheindustrialbiotechnologymarket. Market Opportunity: The chemical building block industry is in excess of 1 billion tonnes per year globally with a value of over 200 billion. All incumbent players are looking for more sustainable products with lower environmental impact. Taking this opportunity requires businesses to develop and invest in new process routes.

AnaerobicDigestion
Process Development Opportunity: To create the next generation of AD technology that is viable and take it to market. CPI is in the process of creating an Anaerobic Digestions Development Centre that will work with new and established companies to improve the AD process and technology. This facility will bring AD developmentbusinessesintotheNorthEastofEngland.

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Market Opportunity: There is over 30 million tonnes of organic waste lost to land fill each year in the UK. There are additional wastes arising in communities and households. These can generate in excess of 2GW gas peryear.

Biomining
Process Development Opportunity: To create an industrial bio based industry in the extraction of resources from waste sources and landfill where bio routes can be used to concentrate dispersed minerals. This opportunityisunderinvestigationbyasmallnumberofbusinessesintheNorthEastofEngland. Market Opportunity: The market opportunity is not quantified, but is large. Processes are in use to extract metals from mine spoil heaps throughout large mine complexes around the world. This would address the resource in UK waste repositories with a particular emphasis on landfills. UK landfill is over 50 million tonnes peryear.

BiofuelDevelopment
Process Development Opportunity: To support the further development of the North East biofuel industry with improved technology. The North East of England is the home of a number of biofuel manufacturing businesses including Ensus, who operate the largest bioethanol plant in Europe and Harvest Energy. In additionCPIsNIBFsuppliesprocessdevelopandprovingservicestothisrapidlygrowingindustry. MarketOpportunity:5%ofUKfuelisrequiredtocomefromrenewablesourcesbyApril2014;thereforethisis a sizeable market opportunity. It is not clear how the market will develop or whether processes can compete in the commodity fuel market. There is a need to secure value for coproducts. The market opportunity is turningtheglycerineproducedasacurrentbyproductfrombiodieselproductionintoacoproductwithvalue.

PyrolysisandGasificationTechnologyDevelopment
Process Development Opportunity: To support and develop the application of pyrolysis and gasification technology for biomass and wastes by establishing a facility to support the development of this industry. PyrolysiswillformpartoftherecentlyannouncedHighTemperatureInnovationCentre. Market Opportunity:A large market opportunity exists. Pyrolysis processes have demonstrated that theycan convert a range of biomass and waste organics, including polymers, into useable fuels. Gasification processes can convert a range of biomass and waste organics, including polymers, into useable fuels and syngas. However, continual market development is required to ensure economic processes are developed and that downstreamprocessesaredeveloped.

DepolymerisationforChemicalFeedstocks
ProcessDevelopmentOpportunity:Theaimistodepolymerisepolymersbacktochemicalmixturesforuseas afeedstockinpetrochemicalprocesses. MarketOpportunity:Ahugemarketopportunityexistswithover400milliontonnesofnaphthaand condensateusedbypetrochemicalsindustryperyear.Marketvalueisaround2billion/year.Ifaprotected processisdeveloped,licenseincomecouldbeverysignificant.Over2milliontonnesofpolymerbasedwastes arearisingintheUK.

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RESEARCHCAPABILITY

Table3belowsummarisesthestrengthoftheNorthEastregionsuniversities.TheregionsResearchCapability isscaledatTechnologyReadinessLevel13. Table3:RegionalUniversityResearchInterestsversusTechnologyOpportunity TechnologyArea SustainableFeedstocks AlgaeGrowthandExtraction BioroutestoChemicals AnaerobicDigestion Biomining Biofuels Pyrolysis PolymerDepolymerisation Gasification Keyrequired: + ++ +++ DevelopingCapabilities SoundCapabilities ExcellentCapabilities Durham University + +++ ++ ++ ++ ++ ++ ++ ++ ++ +++ ++ +++ Newcastle University +++ ++ Northumbria University ++ Teesside University + + + + + + + +

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CONCLUSIONS
ThisstrategicreviewofthegrowingbiomassandwastederivedrenewableenergyindustryintheNorthEastof England was carried out by NEPIC and CPI to develop the necessary supply chains, technology development platforms and investment into the North East region in order to help achieve its vision of becoming an internationally significant hub for the biofuel and renewable energy industries. During the course of the review, both NEPIC and CPI have become actively involved in the development and implementation of the NEPIC Ten Point Plan and the Tees Valley Industrial Programme (TVIP). These two programmes further highlight the significance of directing and chartering the process industrys route towards a successful long termtransitiontoalowcarboneconomybaseduponbiomassandwastematerials. This document concludes that substantial business opportunities exist for the North East of England to be a leader in the development of technology and the creation of commercial businesses based on biomass and waste.Ashighlightedinthesectioncontainingcasestudiesofexistingbusinessactivity:Energycost,efficiency of production and the availability of sustainable bio or waste feedstocks are crucial for commercial success. Additionally, there are opportunities to develop and support existing chemical producers in the Tees Valley over time by migrating to a hybrid industry that uses a combination of fossil, bio and waste based raw materials.Thischangebringstheopportunitytodevelopaninfrastructurethatsupportsit. Technology deployment organisations, based in the region, create significant value from direct employment, but also through the provision of services to companies that are building new plants both in the region and acrosstheworld.Inadditiontheseorganisationsplayamajorroleinthecriticalareaofcontinuousoperational costimprovementsthatbusinessesneedtomaintainacompetitivemarketposition. The review also highlights areas of technology development opportunities for the North East of England, primarilyintheareasofindustrialbiotechnologyandhightemperaturetechnologies.Thisneedismetthrough theassetsandservicesoftheCentreforProcessInnovationsSustainableProcessing(SUSPROC)businessunit. CPI operates the National Industrial Biotechnology Facility (NIBF), Anaerobic Digestion Development Centre (ADDC) and the High Temperature Innovation Centre (HTIC) the latter with Tata Steels Teesside Technology Centre. The North East of England also has three universities researching the science of using biomass and waste as energyandchemicalfeedstocks.TheseuniversitiesareDurham,NewcastleandTeesside. The target forall successful companies is to produce theirproducts better, faster andcheaper; however there is an overlying macro trend by consumers to have simpler access to greener products. This consumer behaviour will hopefully translate over time into industrial companies supplying products that meet these needs. TheNorthEastofEnglandhasastrongpositioninallphasesoftheinvention,innovation,development, engineeringandoperationssupplychainthrough: Establishedprocessindustrybusinessesthatarecontinuouslyimprovingtheiroperations; Largecompaniesinvestinginnewbioandwastebasedtechnologies; SMEsdevelopingnewtechnologyandinvestinginproductionplant; Engineeringconsultingbusinessesthatdesignandbuildplantsbothintheregionandacrosstheworld; Nationallyandinternationallysignificantinnovationfacilitiesforindustrialbiotechnology,anaerobic reactionsandhightemperatureprocesses;and Astronguniversityresearchbase. Thesefacilitiesarecoupledwithanextremelystrongandwellestablishedskillsandtrainingbase. This range of facilities and people make the North East of England and the Tees Valley in particular as a key location for all aspects of the development of a lower carbon economy, greener and more sustainable chemicals,energyandprocessingsector.

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North East Process Industry Cluster (NEPIC) The Wilton Centre Industry Cluster (NEPIC) North East Process Wilton The Wilton Centre Redcar Wilton TS10 4RF North East Process Industry Cluster (NEPIC) Redcar The Wilton TS10 4RF Centre t. +44(0)1642 442560 Wilton e. +44(0)1642 enquiries@nepic.co.uk North East Process Industry Cluster (NEPIC) Redcar t. 442560 w. www.nepic.co.uk The Wilton TS10 4RF Centre e. enquiries@nepic.co.uk Wilton w. www.nepic.co.uk Redcar t. +44(0)1642 442560 TS10 4RF e. enquiries@nepic.co.uk w. www.nepic.co.uk The Centre for442560 Process Innovation (CPI) t. +44(0)1642 Wilton e. enquiries@nepic.co.uk The Centre Centre for Process Innovation (CPI) Wilton w. www.nepic.co.uk The Wilton Centre Redcar Wilton TS10Centre 4RF for Process Innovation (CPI) The Redcar The Wilton TS10 4RF Centre t. +44(0)1642 455340 Wilton e. +44(0)1642 info@uk-cpi.com The Centre for455340 Process Innovation (CPI) Redcar t. w. www.uk-cpi.com The Wilton TS10 4RF Centre e. info@uk-cpi.com Wilton w. www.uk-cpi.com Redcar t. +44(0)1642 455340 TS10 4RF e. info@uk-cpi.com w. www.uk-cpi.com t. +44(0)1642 455340 e. info@uk-cpi.com w. www.uk-cpi.com