The time for action in the bioeconomy is now

I remember, early in my career, often reading financial news about Finnish chemical industry companies being acquired by Central European corporations. Decision‑making shifted from Finland to headquarters in Germany or the Netherlands, which immediately slowed down the start of new collaboration projects.

The need to reduce oil dependency is accelerating the green transition

Now, in the 2020s, Europe’s chemical industry has increasingly appeared in the news as a sector concerned about its future outlook. China has overtaken Europe and the United States as the global leader in chemical sales. Almost 10% of Europe’s chemical production capacity has been shut down since 2022, while China has increased its global market share in chemical sales to 46%.

It appears that capital is moving out of Europe. Unfortunately, this also means fewer chemical plants are left that could be converted into new biorefineries. Will bio‑based materials soon be imported from Asia?

The geopolitical situation creates uncertainty around industrial investments, as markets and regulation need to be forecast decades ahead. In challenging times like these, our problematic dependence on increasingly expensive oil and gas from the rest of the world becomes evident in high energy and raw material costs. On the other hand, the situation may accelerate the EU’s green transition as we work determinedly to reduce our dependence on external energy sources.

Let’s not wait – let’s leverage the momentum of the green transition to advance the bioeconomy and circular economy!

Now is an excellent time to finalise plans and move innovations toward commercialisation. Financial support is also on the way. If realised, the EU’s new Competitiveness Fund will provide significant funding for clean transition and bioeconomy projects. According to the Confederation of Finnish Industries, up to EUR 14 billion of funding from Horizon Europe and the Innovation Fund could potentially be channelled to Finland for R&D and investment projects. The European Commission’s proposal covers the period 2028–2034.

Ensuring the feasibility of industrial investment is crucial

Scaling up bioproduct production, demonstrating processes and designing an industrial plant involve countless factors that are often not considered early enough, even though the ultimate goal is a financially viable bioproduct mill.

Based on my own experience, the critical factors include:

1. The performance of processes with real feedstocks and raw materials
2. Technology suppliers’ requirements regarding feedstock quality and variability
3. The utilisation of side streams and identifying viable markets for them
4. Realistic assumptions about plant availability, maintenance and production continuity

Without addressing these factors early on, the economic sustainability of the plant can be jeopardised, even if the basic concept is technically sound.

Sweco helps identify the key issues that must be addressed already during the pilot phase of new production, and define the information required by project financiers and permitting authorities.

Our experts support industrial operators in the design and implementation of future bioproduct plants.
Our services for the bioproducts industry cover bio‑based chemicals and materials, modern fibre products and biofuels. We provide support in areas such as market studies, engineering, permitting strategies, as well as safety and sustainability assessments.

Get in touch!

Janne Hulkko, Specialist, Biobased Industry, janne.hulkko@sweco.fi

Janne is a seasoned bioeconomy expert with 25 years of experience in R&D and engineering projects in the chemical, forest and oil industries. He has extensive experience as a research Team Leader and Technology Manager. At Sweco, Janne works as a process Engineering Specialist in bio‑ and circular economy projects.