Union of the biotechnology industry enterprises of Russia Arsenev Dmitriy Ablaev Alex Soleno vDmitriy
Biotechnology in Russia.
«Storage and processing of the yield is one of the major problems in our country» «Prac=cally there is no deep processing of agricultural produc=on» «Russia is going to diversify exports, increasing the share of grain deep processing products»
«Agro-‐industrial complex is our undoub:ul priority»
«We are interested in crea=ng new produc=on facili=es for deep processing of raw materials, biotechnologies and pharmaceu=cals» «It is required to create condi=ons for accelerated development of processing industries in Russian economy» Source: www.government.ru www.kremlin.ru
SOWN AREA
1 000 ha
Source: Central Intelligence Agency USA
RENEWABLE WATER RESOURCES
m3per head
Source: World Resources Ins<tute
GRAIN PRODUCTION IN RUSSIAN FEDERATION
Source: WJ Group
POTENTIAL GRAIN DEEP PROCESSING IN RUSSIA PRESENT POTENTIAL IN GRAIN HARVESTING
120MILLON T. PER YEAR INTERNALCONSUMPTION
70MILLION T. PER YEAR
EXPORT
20MILLION T. PER YEAR
SURPLUS OF GRAIN
30MILLION T. PER YEAR
15 MILLION T. of STARCH is equivalent to – 16 MILLION T. of GLUCOSE PER YEAR Starch concentration in surplus grain – 15 MILLION T. PER YEAR
16 MILLION T. of GLUCOSE is equivalent to – 6 MILLION T. BIOPRODUCTS PER YEAR The capacity of grain production in Russia allows to establish an adequate raw materials base for the new industry start-up
GRAIN DEEP PROCESSING (basics)
GRAIN
STARCH
GLUCOSE SYRUP
FRUCTOSE SYRUP Sweeteners for food industry
Biotechnological industry Enzymes - α-amylase - glucoamylase - proteases - lypases - cellylase - pectinase - and others
Polysaccarides - inductrial purpose - food
Vitamines - riboflavine (B2) - ascorbic acids (C) - nicotinamide (PP) - cobolamin (B12) Caratinoids - β-carotin - astaxantin - lycopin
Cell biomass - biocatalysis in chemistry - soil, water and air treatment
Amino acids - L-lysine - L-treonin - L-treptofan
Chemicals - lactic acids - citric acids - 1,3-propandio - fine pharma products
Antibiotics - for animals - for humans
Biofertilizers, biopesticides - bioinsecticides - biofungicides - nitrofixators - boistimulators
WORLD PRODUCTION OF BIOPRODUCTS
TOTAL WORLD MARKET OF BIOTECHNOLOGY INDUSTRIES IS VALUED AT 160 BILLION US$
Source : «Long-‐term scien<fic and technological development Forecast of Russia developed by Russian Academy of Science»
CURRENT R&D EXPENDITURES VERSUS MARKETS FOR BIOTECHNOLOGY BY APPLICATION
Share of total OECD* business es=mated poten=al share of total expenditures on biotech biotechnology gross value added R&D** in 2003 (GVA) in the OECD area for 2030
INDUSTRY
4% 2%
OTHER
7%
-‐
100%
100%
HEALTH PRIMARY PRODUCTION
87%
25% 36% 39%
• -‐ Organisa=on for Economic Co-‐opera=on and Development • ** -‐ Research and development Source : OECD
PROJECT GOAL
Establishment of biotechnological industry In Russian Federa=on based on
DEEP PROCESSING OF GRAIN is one of the strategic tools in the framework of Russian Federa=on economy transi=on to the innova=ve development model
NPK “ECOLOGIA” and the Union of Biotechnology Enterprises
Ø Intended to provide financing for start-‐up c osts, interest during the investment period and other opera=onal costs Ø R & D Funding for effec=ve technology transfer and commercializa=on of scien=fic Ø Provide a pla:orm for interac=on between government bodies, scien=fic and other organiza=ons, business structures for the development of biotechnologies
achievements in biotechnology in order to increase the industry’s innova=on component
Ø The leading role of management asthe determining factor for allstages in innova=on process (star=ng from the primary idea up to the final output)
PARTICIPANTS OF PROJECTS REALIZATION FINANCING OF PROJECTS
• Vnesheconombank (VEB) • EKF (Export agency) • Regional project ini=ator SCIENCE
ENGINEERING • Vogelbusch
• State Scien=fic Center GENETIKA • Russian Society of Biotechnologists
• NPK “ECOLOGIA” • Equipment manufacturers ADMININISTRATIVE RESOURCES
• Federal Government • The union of enterprises in Biotechnological industry • Local Governors
FINANCING OF PROJECTS
INVESTMENTS
5%
70%
25%
Regional project ini=ator (PPP)* NPK EKOLOGIA Project financing (VEB)
*-‐ Public-‐Private Partnership
Source : hLp://www.ekf.dk/
FINANCIAL STREAMS OF THE PROJECT
Investments 70%
Investments 70% VEB
EKF (European Bank)
Warranty
• Guarantees • Warran=es
NPK EKOLOGIA
Regional project ini=ator (plant)
• Investments 30% (Start-‐up) • Equity par=cipa=on
PROJECT REALIZATION TEAM
PROJECT REALIZATION TEAM
• Development and implementa=on of innova=ve technologies in Russia • Priority Projects Selec=on • Effec=ve management of the project from construc=on to marke=ng & distribu=on
the innova=on component industry advances in biotechnology to increase • Project profitability management
• Develop a mechanism for technology transfer and commercializa=on of scien=fic
• Gekng investment income
PROJECT REALIZATION TEAM
NPK ECOLOGY, Russian engineering company The engineering company NPK Ekologia was established in 1998. The company has its own modern research and produc=on base which allows conduc=ng research and developments in grain deep processing as well in bio ethanol and vodka produc=on. Beginning from 2001 the company has been rendering the whole set of engineering services ranging from R&D, pilot projec=ng and design ac=vi=es to opera=ng as EPCor EPCMcontractor in charge for a plant acceptance on “turn-‐key” basis. The main profile of the company business is engineering projects for vegetable feed deep processing into bio products.
Works with: • • • • •
The food-‐processing industry Fuel industry Agriculture Pharmaceu=cs Waste recycling
PROJECT REALIZATION TEAM
EQUIPMENT AND TECHNOLOGIES
The equipment value to be supplied by our partners up to 80% of the project value
PROJECT REALIZATION TEAM
GENETIKA GENETIKA-is the leading research centre in Russian Federation in the field of biotechnology and one of the leaders recognized in the world in the field of basic research of genetics and gene engineering of industrial microorganisms
GENETIKA – the unique scientific centre which practically does not have analogues in world practice, combining deep basic research (in the field of genetics proorganisms, bioengineering, immunology, bio-catalysis, biocomputer science) creating industrial biotechnologies on this basis.
PROJECT REALIZATION TEAM
RUSSIAN SOCIETY OF BIOTECHNOLOGISTS
Establishment date: 29 October 2003 Legal registration date by Russia Department of Justice: 15 December 2003.
The President is the Chairman of the The Board – Mr. Vasilov, R.G.
As of January 1st the fund numbers 3025 members and has 57 regional affiliates.
Chairman of Board of Guardians – Mr. Morozov, O.V
PROJECT REALIZATION TEAM
VOGELBUSH Company Vogelbusch is one of global players in the field of designing and building bioethanol plants and has own modern technologies for each stage of recep=on of ethanol. Different a high exit and quality of a product and the most advanced in the savings plan of energy and environment protec=on, bioethanol technologies Vogelbusch are successfully used at factories Northern and South America, Europe, Africa and Asia. • Established in 1921 • Staff is 120 • Turnover mil. € 42 (2007 / 2008)
• Ac=ve in starch, sugar and pharmaceu=cal industries
STAGES OF PROJECT REALIZATION
GLUTEN AND STARCH SEPARATION
SYRUP PRODUCTION
FINAL PRODUCT DRYING
AUTOMATION
EUROPEAN ENGINEERING
RUSSIAN ENGINEERING (EPCM contractor) Н П К
Э К О Л О Г И Я
N P K
E K O L O G I A
PLANT
BIOPRODUCT PRODUCTION
EXPORT FINANCING
EKF The primary goal of the EXPORT CREDIT AGENCY is risk hedging of export financing. Besides, EKF offers programs under the fixed interest rates and financing, also advisory services in connec=on with financing of long-‐term export credits.
EKF is unique in the Danish market The organiza=on which offers insurance of Extraordinary risk which is not covered by Private credit insurance. Typically it
concerns business with a credit period of more than 1 year. The EXPORT CREDIT FOUND is the independent organiza=onal unit accountable to the Ministry of Economics and Produc=on.
• INCREASES APPEAL OF THE PROJECT
THE GUARANTOR OF EXPORT CONTRACTS PROJECT FINANCING
• DECREASE IN FINANCIAL AND ADMINISTRATIVE RISKS • •
Источник: www.veb.ru
Vnesheconombank is execu=ng investment policy aiming at higher compa=bility of RF economy, its diversifica=on, and encouragement of its investment ac=vi=es with reference to the federal law “On Development Bank” dated 17.05.2007 № 82-‐FZ и Memorandum on Vnesheconombank Financial Policy approved by the Government of Russian Federa=on 27.07.2007 № 1007-‐p The priority-‐oriented areas of Vnesheconombank ac=vi=es in 2007 -‐ 2010 are the following: а) Aircraw industry and rocket and space complex; b) Shipbuilding industry; c) Electronic industry; d) Atomic industry including atomic power energe=c; e) Transport< special and energe=c machine building; f) Metallurgy (produc=on of special steel); g) Wood processing industry; h) Military industrial complex; i) Agro-‐industrial complex; k) Strategic compute based technologies and sowware; l) Informa=on communica=on systems; m) Medical equipment and pharmaceu=cal industry.
Источник: www.veb.ru
MEMEBERSHIP OF SUPERVISORY COUNCIL The Chairman of Supervisory Council–Mr. PUTIN, Vladimir V. Vice Chairman of RF Government–Mr.Zubkov, Victor Vice Chairman of RF Government–Mr.Ivanov, Sergey
– Mr.Kozak, Dmitry Vice Chairman of RF Government–Mr.Kudrin, Alexey – Mrs.Nabiulina, Elvira Minister of Economic Development Vice Chairman of RF Government
Transport Minister
– Mr.Levitin, Igor
Minister of Industry and Trade, RF
– Mr. Khristenko, Victor
Chairman of Vnesheconombank– Mr.Dmitriev, Vladimir
Sourse: www.veb.ru
REGIONAL PROJECT INITIATOR
•
Projects of Priority
•
Production Site
•
Infrastructure
•
Permissions and Approval
• •
Operations Management Public-Private Partnership
SUMMARY
Joint implementa=on projects will greatly reduce the =me and risks for all par=cipants.
THE SYNERGETIC EFFECT IS OBTAINED THROUGH THE SCHEME: NPK-VNESHECONOMBANK-INITIATOR :
reduc=on of administra=ve and financial risks of the investor significant reduc=on in project realiza=on assistance in the prepara=on and approval of project es=mates and working drawings presence of clear funding structure effec=ve implementa=on of targets investment income lower investment costs of the project The presence of professional team of NPK EKOLOGIA as the indicator of project manageability and reliability • Provide a pla:orm for interac=on between government, scien=fic and other organiza=ons and business structures • Establishment of favorable environment for the development of bioindustry and the forma=on of biotech clusters • • • • • • • •
PRIORITY PROJECTS OF GRAIN DEEP PROCESSING IN RUSSIA
Egoryevsk Tambov
Tatarstan
Krasnodar
Novosibirsk Stavropol region North Ossetia
Altay region
PROJECT EXAMPLES
BIOTECHNOLOGY COMPLEX OF GRAIN DEEP PROCESSING CAPACITY of 400 000 tons of wheat per year
BIOTECHNOLOGY COMPLEX OF GRAIN DEEP PROCESSING
1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20)
Elevator Checkpoint № 1 Administra=ve building Checkpoint № 2 Boiler room Grain Collec=on truck Preliminary cleaning of grain Acceptance of grain by rail Grinding Party The main produc=on building Warehouses Warehouses Warehouses Engineering units Gas-‐distribu=on substa=on and Distribu=on Transformer Substa=on Cooler Pump Storage of finished products Sewage treatment Checkpoint № 3
BIOTECHNOLOGY COMPLEX OF GRAIN DEEP PROCESSING Technological scheme
BIOTECHNOLOGY COMPLEX OF GRAIN DEEP PROCESSING PROJECT INVESTMENT COSTS Conceptual project Feasibility study Organization of project works
7,224,714
Design and additional work Project (construction part) Construction of buildings Equipment (main compartment) Auxiliary equipment
TOTAL, €
46,311,497 72,963,186 15,150,925
141,650,322
BIOTECHNOLOGY COMPLEX OF GRAIN DEEP PROCESSING PRODUCTION REVENUE
€/ton
ton/year
€/year
%
1,170.8
31,655
37,062,780
32.3%
Starch
379.3
81,199
30,802,009
26.9%
HFS
309.1
117,734
36,390,693
31.7%
Forage
86.6
120,748
10,461,555
9.1%
114,717,039
100.0%
INDUSTRIAL PRODUCTS Dry gluten
TOTAL
Gross profit
44,009,334
BIOTECHNOLOGY COMPLEX OF GRAIN DEEP PROCESSING PRODUCTION COSTS Consumed quantity of wheat, ton / year Estimated cost of the plant, € Working hours per year
Feedstock Wheat with delivery Auxiliary Substances (ferments; acids; caustic soda e.t.c) Utilities Wages Logistics costs TOTAL
400,000 141,650,323 8,000
€/ton 115.9
ton/ year 400,000
€/year 48,660,975
22,046,729 70,707,704
AGROCOMPLEX PRIKUMIA
AGROCOMPLEX PRIKUMIA
PROJECT REALIZATION TEAM
ITS HIGHLY IMPORTANT TO C HOOSE THE RIGHT WAY FOR REACHING A GOAL