Europe’s bioeconomy excels in research but still faces major hurdles in the industrial scaling of innovation and de-risking investment. In this exclusive interview with Projects Magazine, Dirk Carrez, Executive Director of BIC, outlines how stronger public–private collaboration, smarter financing and clearer communication to tell the bioeconomy story and raise awareness can accelerate industrial deployment and ensure Europe leads the global bioeconomy at this crucial stage in its expansion.
The bioeconomy is at the heart of Europe’s ambition to build a sustainable and competitive industrial future. By turning renewable resources and side streams into high-value materials and energy, it connects science with industrial and environmental policy in ways few sectors can. Yet, despite its clear potential, the journey from research excellence to industrial scale remains one of Europe’s toughest challenges. Dirk Carrez, Executive Director of BIC, discusses Europe’s progress, the barriers that still slow innovation, and how public-private collaboration is driving the transformation of European industry toward a greener, more circular economy.
Challenges and progress
Projects Magazine (PM): What are the most pressing challenges currently facing the bioeconomy in Europe, especially in terms of infrastructure and scaling bio-based industries? How has BIC responded to these challenges, and what progress have you seen over the past year in overcoming them?
Dirk Carrez (DC): In 2021, the bioeconomy accounted for around 5% of the European Union’s GDP, a remarkable €2.3 trillion, with bio-based industries contributing approximately €720 billion. Bio-based solutions across food and feed, chemicals, materials, and consumer and healthcare products are strengthening Europe’s long-term competitiveness and resilience. At the same time, the growth of bio-based chemicals, materials and sustainable industrial processes continues to drive innovation across key sectors.
At the core of this transformation lie biorefineries and biomanufacturing, converting biological resources into chemicals, materials and energy through diverse technologies. Europe performs strongly in bio-based research – and this research is well-funded – but the real challenge is getting those results to market. Time to market remains too long and too costly, with significant capital required to scale promising technologies into commercially viable products or services.
Scaling up is still seen as a high-risk investment, given uncertainties around both market conditions and technological readiness. A major step in addressing this came through the creation of two public–private partnerships between the European Commission and BIC: the Bio-based Industries Joint Undertaking (BBI JU) and the Circular Bio-based Europe Joint Undertaking (CBE JU). Together, these initiatives have dedicated €5.7 billion to helping Europe’s bio-based industries innovate, scale up and de-risk investment in the sector.
Investment needs and RD&I
PM: Why is it essential for Europe to continue investing in R&D for the bioeconomy, and where do you see the biggest gaps in current funding? Can you share examples of recent research breakthroughs close to implementation?
DC: Developing new biomanufacturing processes and products is capital-intensive. Public and private investment must support the full innovation pathway – from basic research to start-ups, pilot and demonstration projects, and the first industrial plants. While capital is available for early-stage R&D, there is a critical funding gap in the mid- to late-stage phases of innovation, particularly for scale-up, pilot testing and demonstration plants.
Public support for scaling up existing technologies in pilot facilities must become more accessible, and dedicated instruments are needed to support these vital steps. Public–private partnerships and SME-focused schemes could play an important role in bridging this gap. The next step, building a demonstration plant, is especially challenging. It is capital-intensive, often perceived as too risky by investors, yet essential as proof of concept. Demonstration projects help optimise production processes and validate market applications, enabling future private investment. That is why there is a strong need to co-fund and de-risk biomanufacturing infrastructure, ensuring that deployment support extends to demonstration and early commercialisation phases.
Infrastructure and speed of implementation
PM: Given the urgent need for more biorefineries and bio-based infrastructure, what are the main barriers to their rapid implementation, and how is BIC addressing them? How does Europe compare with the United States?
DC: The final step in the innovation pipeline – building a first-of-a-kind biomanufacturing plant (flagship) – requires major capital investment. Such plants typically produce large volumes, involve long return-on-investment periods compared to other sectors, and face continued market uncertainty. Demonstrating a viable business case is difficult, particularly as securing offtake agreements with customers remains a major hurdle for young, innovative companies.
To tackle this, Europe must create instruments that de-risk large-scale investments. The BBI JU and CBE JU have supported several flagship projects that are now operational. One standout example is the PEFERENCE project in the Netherlands, which established the world’s first commercial plant producing FDCA (furandicarboxylic acid) – a key building block for the 100% plant-based and circular plastic PEF (polyethylene furanoate) developed by Avantium.
Other obstacles remain, particularly the lack of regulatory support and incentives for bio-based products and materials. Europe does not yet have strong mandates encouraging or requiring the use of sustainable materials. Moreover, product approval processes in the EU are slow and complex, increasing costs and perceived risk.
As a result, some companies are choosing to locate their first plants outside Europe, where regulatory approval is faster and market entry is easier. BIC is working closely with the European Commission, the CBE JU, and the European Investment Bank to improve access to finance. A new Deployment Group for Finance & Investments will soon be launched to develop and implement concrete measures aimed at accelerating industrial deployment.
Collaboration with CBE JU
PM: Could you elaborate on BIC’s partnership with the CBE JU and how it supports impactful projects? How does BIC contribute to defining the strategic research agenda, and what direction is it taking?
DC: BIC represents a large and diverse community of over 350 companies and 300 universities and research centres. These members identify the challenges and priorities that feed directly into the CBE JU Work Programmes. This bottom-up, market-driven input from industry complements the top-down policy direction from the European Commission.
The involvement of BIC’s members is key to ensuring that the CBE JU’s open calls and strategy align with real industrial needs. Together, BIC and the CBE JU have supported a substantial portfolio of bio-based innovations, with 18 flagship and 109 demonstration plants already funded under the BBI JU and CBE JU combined. Looking ahead, the focus must increasingly shift toward industrial deployment and scaling up, while still nurturing early-stage R&D for the next generation of technologies.
In terms of feedstock, sustainably sourced agricultural and forest biomass remain the foundation of Europe’s bio-based industries. However, there is a growing emphasis on biowaste, wastewater and sludge, gaseous carbon emissions, and blue biomass such as algae and microalgae, as well as innovative sources like mycelium.
On the product side, interest is expanding beyond chemicals and materials to include food ingredients (including alternative proteins), health applications, and market sectors such as construction, textiles, automotive, home and personal care, and packaging.
Looking ahead
PM: What is BIC’s vision for Europe’s bioeconomy in the next five years, and what milestones do you aim to achieve to make it a reality? How can stakeholders work together to accelerate bio-based solutions?
DC: The next five years are pivotal for the EU bioeconomy and its industries. Closely linked to biotechnology and biomanufacturing, the bioeconomy has a central role in strengthening Europe’s economy and reducing its dependence on fossil feedstocks. It is, in many ways, the green engine of the circular economy.
However, Europe is not acting in isolation. The United States, Brazil, and China are investing heavily to support their own bio-based industries. Europe must therefore move quickly to reinforce the industrial dimension of its bioeconomy, focusing on three priorities:
- Scaling up new and existing business cases for innovative bio-based solutions through public and private investments.
- Securing reliable, affordable supplies of sustainably sourced biomass.
- Expanding market opportunities for bio-based products through stronger demand and regulatory support.
Earlier this year, the European Commission’s Communication on Building the Future with Nature outlined a series of targeted actions to boost biotechnology and biomanufacturing in the EU. The next Commission must take these forward, developing and implementing them to shape Europe’s bio-based future.
A recent report by BIC and Zero Waste Europe revealed that although the separate collection of bio-waste became mandatory across the EU on 1st January 2024, only around 25% of Europe’s potential is currently captured. The remaining bio-waste, from food and gardens, could serve as a valuable feedstock for biomanufacturing, but today most of it remains unused. Improving the collection and valorisation of these resources will be vital.
Beyond policy, there is also a need to raise awareness and improve understanding of the bioeconomy among both industry and consumers. Brand owners already bringing bio-based products to market can help tell this story – showing how these solutions create a greener, more resilient planet.
Education plays a key role as well. Incorporating bioeconomy topics into school curricula will help the next generation understand science, technology, and sustainability from an early age. BIC’s annual student competition, BISC-E (Bio-based Innovation Student Challenge Europe), is one such example. It invites student teams to present their own bio-based innovations and business cases to expert panels from the industry, stimulating entrepreneurship and engagement in Europe’s bio-based transition.