Circular Bioeconomy & Industry 4.0Future trends in bioeconomy and smart forestErnesto Hartikainen 12 November 2015

Resource Nexus

Water

Energy

Resource Nexus

Food / Bio

3Sitra • Ernesto Hartikainen • 12.11.2015 •

Biological cycles

Farming/collection

Biochemical feedstockSoil restoration

Biogas

Anaerobicdigestion/composting

Extraction of biochemicalfeedstock

Materials/parts manufacturer

Product manufacturer

Retail/service provider

Reuse/redistribute

Refurbish/remanufacture

Recycle

Mining/materials manufacturing

Technical cycles

Collection Collection

Energy recovery

Landfill

Consumer User

Utilization in anothervalue chain

Cascades

Maintain

A system restorative by design to retain more volume and value within the economy

Annual value of key opportunities identifiedEUR millions by 2030

Forest, pulp and paper industries

Minimisingfood waste

Sharing &second hand

Machinery & equipment industry

Total Construction sector

375

230

165

450

255

310

1785

Nutrient circulation

Some Circular Economy opportunities for FinlandSources: McKinsey, Gaia Consulting

5Sitra • Ernesto Hartikainen • 12.11.2015 •

5Sitra • Ernesto Hartikainen • 12.11.2015 •

1500 1600 1700 1800 1900 2000

1533 Erik Fleming buildsfirst hydro-poweredsawmill in Finland

The era of tar (black gold)

1708 David Sesemanfounds the firstDutch-stylethin blade

sawmill

1739 Wood sourcing areas arerestricted due to fear of runningout of forests

1783 First paperfactory starts in Tampere

1842 Startupof first papermachine

1857 Steamsawmills areallowed

1862 Railroad transportationcommences

1865 Groundwoodproduction begins

1885 First sulfitepulp mill in Nokia

1876 First pulp millstarts operation

1909 First Finnish-built paper machine

1930 First fibreboardfactory in Finland

The history of the Finnish forest industry

1st industrialrevolution

2nd industrialrevolution

3rd industrialrevolution

1953 Metsäliitto buys Äänekoski papermill from Wärtsilä

1973 National investments into watertreatment

1979 First fibre-opticdata connection built

1980- Digital era

6Sitra • Ernesto Hartikainen • 12.11.2015 •

Sitra/CEPI/StepChange: Paper Industry 4.0

Sitra • Ernesto Hartikainen • 12.11.2015 • 8

9Sitra • Ernesto Hartikainen • 12.11.2015 •

Five elements of Industry 4.0

SMART EQUIPMENT

NETWORKING AND CONNECTIVITY

VALUE CHAIN INTEGRATION

SMART PRODUCTS

DATA ANALYTICS

10Sitra • Ernesto Hartikainen • 12.11.2015 •

The most important steps that need to be taken to move forward towars industry 4.0

Identify opportunitiesrelated to Industry 4.0

Clearly communicate theopportunities offered byIndustrtReceive a clear sign fromcustomers that Industry 4.0 is important to themand understand why

Create a roadmap for the implementation of Industry 4.0

Agree on commontechnical standars

70%

48%

41%

36%

26%

IT systems and infrastructure

Ensure funding for development / implementation

Machinery / equipment

Organise industry-wideresearch projects

Support develoment of policies

26%

24%

9%

6%

6%

Improved offerings to the current market

Increased value chain effectivenessValue-added byproducts or services

Improved performanceof current offerings

Increased value chain efficiency Improvements in production analytics

and/or targeted sales

Completely new offeringscreating new markets

New technologies and digitalizationAdaptive mass-customisation or new

connected services

Synergy offeringacross industries

Question and re-organise value systemsCooperation between industries,

companies and customers

11Sitra • Ernesto Hartikainen • 12.11.2015 •

OPPORTUNITIES

Sitra Smart ForestCall for Ideas

9-10/2015

3rd PrizeBerriPicker

by Lauri Lemmenlehti

2nd PrizeInternational Smart

Forests Networkby Lindsey Rustad

1st PrizeLoggerZeppelinby Reijo Pankka

sitra.fi

Facebook.com/SitraFund

@SitraFund

Building a successful Finland for tomorrow