Business Models, Including Higher Value Products for the New Circular, Resource-Efficient Biobased Industry

The biobased business model, which initiated the era of improved use of the biological resources, upgrading resources otherwise wasted or downgraded, started with the "biomass to biofuel" biorefinery: economy by scale, requiring large investments, and stable supply of high volume, low-cost feedstock. A high-profiled business model for pioneering biorefineries was a joint venture, often formed by two already mature businesses, joining two sets of competence, skills, and experience; with opportunity for later merger or acquisition. The biofuel biorefinery was challenged from two sides, its commercial viability (caused by a low-priced end product) and sustainability issues, as it utilizes only the energy content and not the biomass structures. A new era of biobased industries was started, focusing on unlocking the full potential of biomass, by cascading optimized valorization of all (or at least more parts of) the biomass components. This dual objective, opens a spectrum of new types of bioeconomy business models, suitable for more complex biobased industries, including higher-value products in the biobased portfolio, being more complex, handling several more process steps and streams, and producing several types of biobased products. Five examples of such business models are described: (1) Biobased industry, upgrading in-house production sidestreams. (2) Biomass-specialized biorefinery. (3) Cooperatively owned biobased valorization of crop residues and processing sidestreams. (4) Industry clusters as the preferred biobased business model. (5) Local public/private consortium-owned production of biobased products. Furthermore, foresight analysis is presented on possible new business models, suitable for the expected wide variety of new types of biobased industries.