The National Non-Food Crops Centre

1. The National Non-Food Crops Centre The Biofuels Supply Chain Agri-Vision for Bioenergy National Renewable Energy Conference March 2007 NNFCC - from crops to cashflow: building sustainable supply chains

2. Remit • NNFCC is the single, independent source of information on the use and implementation of non-food crops, products and technologies • Aiming to: • Develop credible supply chain models for all crop-derived materials, processes and by-products used in non-food applications • Advise industry, Government and academia on mechanisms to reduce supply chain constraints in emerging market areas • Encourage the development of new UK business sectors • Develop specific communication packages and tailored events for the media, schools and the general public NNFCC • Remit • Funding • Staff NNFCC - from crops to cashflow: building sustainable supply chains

3. Funding • Government funding: • Defra £300k pa core funding • DTI £192k pa technology translation - Bioscience for Business KTN • Industrial sponsorship / subscription • £50k per annum • £7,000 pa sponsors • £500 pa company subscription • £50 pa individual subscription • Project management / consultancy • Events NNFCC • Remit • Funding • Staff NNFCC - from crops to cashflow: building sustainable supply chains

4. Staff Jan ’04 – 7 staff (including office support) Jan ’07 – 13 staff at offices in York (+ 2 secondees) • CEO • Technology Translation Managers • Fine & Speciality Chemicals • Fuels & Bulk chemicals • Materials • Policy & Government Liaison Manager • Agricultural and Events Manager & Events Co-ordinator • Communications & Information Team • Regional Officer • Office Support Staff NNFCC • Remit • Funding • Staff NNFCC - from crops to cashflow: building sustainable supply chains

5. UK Resources Total UK Agricultural Land = 18.5 million ha Arable = 6Mha • Feedstock potential • UK Situation • Legislation • Key product groups • Conclusion Set-aside = 0.9Mha NFC = 0.15Mha Land available for NFC production = 1.5 – 2Mha Agricultural waste = 80 MT Woodland =2.8Mha (10 MT timber) • Food industry by-products = 30MT • Municipal Waste streams = 25MT • - Garden waste = 5MT • - Paper and board = 4.5MT • - Compostable kitchen waste = 4.5MT • Timber & wood waste = 2.8MT NNFCC - from crops to cashflow: building sustainable supply chains

6. Renewable Feedstocks ENERGY FUEL Short Rotation Coppice • Feedstock potential • UK Situation • Legislation • Key product groups • Conclusion Wheat Cereal Straw Sugar Beet OSR Miscanthus Maize Hemp Linseed Potatoes Barley Flax Crambe STARCH OIL Nettle Camelina Echium FIBRE Calendula Poppy Peppermint Chamomile Borage SPECIALITY NNFCC - from crops to cashflow: building sustainable supply chains

7. NNFCC key product groups • Biolubricants • Nine companies already engaged • Potential for commercialisation in number of end uses • Biopolymers • New technology development adding value to a commodity feedstock • Need to address cross cutting issues such as labelling, segregation, and waste disposal • Construction • Large market to develop crop derived products • Phyto – pharmaceuticals • World class science base • Traceability – critical for crop used in pharmaceutical applications • Biorefineries / biofuels • Utilisation of whole crop – analogous to the oil refinery • Remit • Services • Key product groups NNFCC - from crops to cashflow: building sustainable supply chains

8. Current UK bioenergy activity Activity in Ireland to be mapped during 2007 – help! (REA) Source: REA, 2007 NNFCC - from crops to cashflow: building sustainable supply chains

9. (O) (’06) (P) • Feedstock potential • UK Situation • Legislation • Key product groups • Conclusion NNFCC - from crops to cashflow: building sustainable supply chains

10. The Biofuel Supply Chain • Understand • Communicate • Initiate • Get involved • Aiming to: • Minimise number of stages / players • Maximise value at each stage • Produce & sell quality end-product Grower Merchant Crusher Processor Blender / Distributor Consumer NNFCC - from crops to cashflow: building sustainable supply chains

11. What are the options? • Commercial-scale production • Contract growing • Farm-scale production • Single-farmer • Co-operative production Grower Grower Merchant Merchant V’s Crusher Crusher OR Processor Processor Blender / Distributor Blender / Distributor Consumer Consumer NNFCC - from crops to cashflow: building sustainable supply chains

12. Grower Merchant Crusher Processor Blender / Distributor Consumer Commercial-scale production • e.g. Greenergy: Field-to-Forecourt • Oilseed rape for Biodiesel production • Secure contract at fixed price • Eligible for Energy Aid Payment OR can be grown on set-aside land • Feedstock requirements – 250,000 tonnes for 2007 • Why? • Low risk • No capital outlay • No change to current production systems • Premiums available for oil content / quality NNFCC - from crops to cashflow: building sustainable supply chains

13. Farm-scale production Grower Consumer NNFCC - from crops to cashflow: building sustainable supply chains

14. Grower Merchant Crusher Processor Blender / Distributor Consumer What are the Issues? • Feedstock Prices – e.g. variable prices make decisions difficult (e.g. Wheat at £60 - £100 per tonne – drought or market issue ??) • Security of Supply – once started, production must be constant • build relationships with feedstock suppliers & grow confidence • An attractive package must be on offer • Large volumes required with immediate effect • Competition • LCVP sustainability criteria due 2008 • Government Incentives • Ireland – MOTR Scheme • Communication • Fossil Oil Prices • Co-product markets and prices ? NNFCC - from crops to cashflow: building sustainable supply chains

15. 2nd Generation Biofuels How can farmers get involved? 30 dt/ha Energy Maize 15 -18 dt/ha Source: KWS NNFCC - from crops to cashflow: building sustainable supply chains

16. Grower Merchant Crusher Processor Blender / Distributor Consumer Conclusion • The UK is behind the US, Germany, Spain – but activity is increasing • Collaborate & communicate to achieve best results – work with & learn from others • Focus on local production – utilise local skills & expertise • Look to utilise whole crop – establish markets for co-products • Work to maximise available resources • Add value where possible – look at branding & local marketing of end-product • Huge potential for both agriculture & industry! NNFCC - from crops to cashflow: building sustainable supply chains

17. Thank You www.specialchem4polymers.com • www.nnfcc.co.uk NNFCC - from crops to cashflow: building sustainable supply chains