**2. Definition of bioeconomy**

this problem, associations and governments are trying to put forward new approaches within the framework of sustainable development. The concept of sustainable development, which started to gain importance with the beginning of the twenty-first century, has accompanied the search for an appropriate economic model. At this point, the terms biotechnology and bioeconomics have gained more meaning and promise great hopes for the future [3]. The term of bioeconomic refers to an economic system in which biological resources are used instead of fossil resources in production processes. Therefore in bioeconomic strategies, economic growth is linked to environmental sustainability [1]. There are basically three factors in the emergence of bioeconomic strategies: limitation of fossil feedstocks, the negative effects of human activities on the environment and the innovative progresses in science and technology [4]. In this respect, bio-economic is central to all economic sectors for a higher standard of living. A bioeconomy involves three elements: biotechnological knowledge, renewable biomass, and integration across applications. The first element, biotechnological knowledge, is the principal of the bioeconomic model. Biotechnology offers technological solutions to health, natural resource and ecosystem sustainability issues and allows for increased productivity in different industries with new products and processes such as biopharmaceuticals, recombinant vaccines and industrial enzymes. R&D studies and innovation are essential for the development of biotechnology [1]. The second element is the use of renewable biomass. Renewable biomass covers a wide range from primary sources such as energy plants, trees and grasses; to agricultural and industrial wastes [5]. The third element is integration between knowledge and applications, based on generic knowledge and value-added chains that cross applications [4]. Due to the fact that most renewable biomass resources are also used in the food sector, a very important ethical question has arisen: Is it right to use food materials in different areas while many countries on earth have starvation problems? This problem is one of the most controversial issues today [6]. Researchers suggest the use of waste biomass for these discussions. However, there are some limitations on the use of wastes. For example, the production of chemicals for use in the pharmaceutical industry from wastes is not appropriate. Therefore, microalgae, which can be used in many different areas, are thought to be able to solve this problem [7]. Especially, developed biorefinery strategies and bioprocesses about microalgae are promising for the future in order to achieve economic sustainability. In biorefinery systems where microalgae are used as raw material, important biofuels such as biodiesel, bioethanol and biogas are produced and valuable chemical substances used in fields such as pharmaceutical, nutraceutical and cosmetic industries are produced. It is also possible to use microalgae as food and animal feed because of the high protein content [8]. Nevertheless, in spite of having been studied for over 50 years now, there are still only just a few corporations that are cultivating algae on a large or commercial scale. Because, algal investment is not economically feasible due to operational and capital cost. The rate of return is not short as it is expected. The operation cost is affecting the total cost significantly. The main part, which makes the process expensive due to operation and capital costs, are algae growth, harvesting, and dewatering. Although many innovations are performed in production of algal biomass day by day, in order to carry out sustainable and economical productions, algal biorefinery is the best choice for reducing production cost and obtaining various products with maximum efficiency [9]. In this chapter, definition of bioeconomy and its classification are described, techno-economic analysis of microalgal

196 Microalgal Biotechnology

Although the term of bioeconomy has gathered much attention in recent years, it is existed since the development of the life sciences and biotechnology [10]. Usage of the term "bioeconomy" has become widespread due to the relationship between economy and biology in the world [11]. In order to reduce the effects of environmental problems and global warming, it is important to utilize bio-based products instead of fossil-based product [12]. A biomass based economy instead of fossil based product represents a significant shift in socio-economic, agricultural, energy and technical systems. The concept of a bioeconomy which is also called the "bio-based economy" in some reports, can be defined as an economy where the basic building blocks for materials, chemicals and energy are derived from renewable biological resources [13, 14]. The bioeconomy comprises the parts of using renewable biological resources from land and sea such as crops, forests, fish, animals and micro-organisms to produce food, materials and energy and also their use in a wide range of sciences such as, life sciences, agronomy, ecology, food, biotechnology, nanotechnology, and engineering [12, 15]. The bioeconomy entails the use of biotechnology on a large scale [16]. Biotechnology makes use of biological systems and processes to manufacture various products: such as industry (white biotechnology), medicine (red biotechnology), agriculture (green biotechnology), aquaculture (blue biotechnology), and pollution removal and bioremediation (gray biotechnology) [16]. Establishing an bioeconomy in Europe have a great potential, because economic growth and jobs in rural, coastal and industrial areas can be carried out, fossil fuel dependence can be reduced and the economic and environmental sustainability of primary production can be developed [17]. Biotechnology has various industrial applications including the manufacture of chemicals and biopharmaceuticals, bio-polymers and bio plastics, food, feed and biofuels [16]. White biotechnology or industrial biotechnology uses enzymes and micro-organisms to make bio-based products, including chemicals, food and feed, bioenergy, and textiles [10, 18–22]. Gray biotechnology is comprised from technological solutions created to protect the environment, like in the case of oil spills and purifying sewage water [23]. Green biotechnology is practiced to agricultural processes such as developing genetically modified crops or improve plant breeding techniques by using life science knowledge [24]. Blue biotechnology is a term that has been used to describe the marine and aquatic applications of biotechnology [19]. Red biotechnology relates to the health sector and production of pharmaceuticals [10, 25, 26].

### **3. Bioeconomy concept in Europe and the World**

#### **3.1. Bioeconomy in Europe**

Europe has set a course for a resource-efficient and sustainable economy which is more innovative and promotes usage of renewable biological resources for industrial purposes, while ensuring biodiversity and environmental protection. In order to carry out this goal, the European Commission has set a Bioeconomy Strategy and action plan [27]. This plan focuses on three key aspects as; developing new technologies and processes for the bioeconomy; developing markets and competitiveness in bioeconomy sectors; and pushing policymakers and stakeholders to work more closely together [27].

raw material is agricultural biomass. Since it does not have huge biomass potential, a large

Bioeconomic Assessment of Microalgal Production http://dx.doi.org/10.5772/intechopen.73702 199

The US national bioeconomy strategy was drafted by the Office of Science and Technology Policy and the Executive Office of the President, under participation of different federal agencies. Individual persons and institutions from scientific and industrial areas were consulted for this strategy. The "National Bioeconomy Blueprint" which was the document of bioeconomy strategy of USA, is divided into two distinctive parts. The background and impact of the current bioeconomy is explained in the first part and the strategic objectives are described later. In USA, genetic engineering, DNA sequencing and automated high through-put manipulations of biomolecules, these three technologies are focused as the strategic fields for the bioeconomy. In the document, the possible contributions of government departments and funding agents were also reported. According to the document USA already has a bioeconomy strategy and some of the results which are aimed to achieve are listed. It was stated that, federal departments and agencies supporting biological research. As the focus of the strategy is biological research, the perspective is national with little outlook to the rest of the world [14, 34]. As for the Canada, "Canadian Blueprint: Beyond Moose and Mountains" was the equivalent of the USA's blueprint of bioeconomy strategy. However, there is no official strategic document for the development of a bioeconomy in Canada, nor any signs of one being prepared. Yet, the document present the requirement for actions and goals within the selected priority areas of capital, people and operational environment. In the bioeconomy strategy of Canada, the forest sector and agriculture, life science and clean technology play important role. Canada's largest producers of agricultural products is from Alberta and there are a lot of significant producer of forest products. Biomaterials, biochemical, and bioenergy are the areas which have taken marginal roles in Alberta's economy but are foreseen to grow [14].

According to the studies on bioeconomical approaches in Asia, four bio-industries as biopharmaceutical, biohydrogen, bioplastics and genetically modified crops come into prominence for bio-based economies through 2050. Provided forecasts reported that, development of the biohydrogen industry will be fastest in India, China and Malaysia, and China will be the largest supplier in 2050. The growth of the bio-pharmaceutical industry will be fastest in India, Malaysia, and China and India and Japan will be the two largest suppliers of biopharmaceutical products. Growth of the bio-plastic industry will be fastest in India, Malaysia and China; China will be the biggest supplier of bioplastics. Growth of GM crops will be fastest in Malaysia, India and China; India and China will be the two largest suppliers. In terms of the output values for the four bio-industries, the largest bioeconomies will be in India, China and Japan followed by Korea, Malaysia and Taiwan [33]. In these countries, bio-pharmaceuticals will be the most important bio-industry. Transitioning toward bioeconomy by developing industries based on biological processes will be fast if government should pay more efforts on R&D, biotechnology,

human resources and its related infrastructure, industrial supply and sales chain [33].

share of biomass will need to be imported [32].

**3.2. Bioeconomy in USA and Canada**

**3.3. Bioeconomy in Asia**

According to the reports, The German Bioeconomy Council had described that the share of produced or processed biomass, or in which biotechnological processes were used on bioeconomy innovation amounts to 4.9% of gross value added for and 6.3% of the working population was employed by these sectors in the EU-25 in 2005. Among the bio-industries, mostly food and wood industries are dominate the share of the bioeconomic gross value added in Germany as well as in the EU-25. The bioeconomy in Germany can be split into two parts: (1) "production and processing of biological resources" which holds 50% of value added and 40% of employment and (2) "trade and services related to biological resources" which captures the other half of value added and 60% of employment in the year 2010 [28].

As for France, in order to develop bioeconomy in France, studies are started to carry out in 2005. Industries and Agro-Resources (IAR) was focused on four strategic fields as; biobased chemicals (bio lubricants, glues, building blocks, bio surfactants etc.), bio-based materials for the construction sector and transportation, bioenergy with advanced biofuels and biogas production, and ingredients for food and feed. In order to carry out this, IAR also takes into consideration life cycle analysis and environmental benefits as well as the production of sustainable renewable resources. These four topics are now in line with the definition of the Bioeconomy with the publication in February 2012 of the European bioeconomy roadmap. It is now widely recognized that the industrial biotechnologies are called to play an important role in the future of the bioeconomy in Europe and all around the world [29].

Spain sets its own strategy on bioeconomy in January 2016, which perform a sustainable and efficient production and utilization of biological resources. The targeted sectors are food, agriculture and forestry, conditioned by water availability. It also includes the production of industrial bioproducts and bioenergy obtained from the use and valorisation of wastes and residues and other non-conventional sources of biomass. The main focus of the bioeconomy in Spain is the use of biological resources to produce food and feed like as Germany [30].

According to the reports, almost 1.5 million jobs are related with the bioeconomy sector in Italy. Reports show that, Italy ranks 10th in the world as for exports of bio-based products, with a share of around 3%. It is stated that Italian Bioeconomy has great potential for growth which has stronger interactions between public and private stakeholders, different sectors and disciplines from the harvest to the various final products [31].

With having the sixth-largest economy in Europe, the Netherlands's industrial activity is consist of food processing, chemicals, petroleum refining, and electrical machinery. As for bioeconomy, their approaches and strategy are carry on slower than expected when it is compared to the other European countries. However, it is stated that the structure and strengths of its economy lend itself well for the transition to a bioeconomy. Another disadvantage with respect to the bioeconomy is that The Netherlands has no forestry biomass; the only potential raw material is agricultural biomass. Since it does not have huge biomass potential, a large share of biomass will need to be imported [32].

#### **3.2. Bioeconomy in USA and Canada**

European Commission has set a Bioeconomy Strategy and action plan [27]. This plan focuses on three key aspects as; developing new technologies and processes for the bioeconomy; developing markets and competitiveness in bioeconomy sectors; and pushing policymakers

According to the reports, The German Bioeconomy Council had described that the share of produced or processed biomass, or in which biotechnological processes were used on bioeconomy innovation amounts to 4.9% of gross value added for and 6.3% of the working population was employed by these sectors in the EU-25 in 2005. Among the bio-industries, mostly food and wood industries are dominate the share of the bioeconomic gross value added in Germany as well as in the EU-25. The bioeconomy in Germany can be split into two parts: (1) "production and processing of biological resources" which holds 50% of value added and 40% of employment and (2) "trade and services related to biological resources" which cap-

As for France, in order to develop bioeconomy in France, studies are started to carry out in 2005. Industries and Agro-Resources (IAR) was focused on four strategic fields as; biobased chemicals (bio lubricants, glues, building blocks, bio surfactants etc.), bio-based materials for the construction sector and transportation, bioenergy with advanced biofuels and biogas production, and ingredients for food and feed. In order to carry out this, IAR also takes into consideration life cycle analysis and environmental benefits as well as the production of sustainable renewable resources. These four topics are now in line with the definition of the Bioeconomy with the publication in February 2012 of the European bioeconomy roadmap. It is now widely recognized that the industrial biotechnologies are called to play an important role in the future of the bioeconomy in Europe and all around

Spain sets its own strategy on bioeconomy in January 2016, which perform a sustainable and efficient production and utilization of biological resources. The targeted sectors are food, agriculture and forestry, conditioned by water availability. It also includes the production of industrial bioproducts and bioenergy obtained from the use and valorisation of wastes and residues and other non-conventional sources of biomass. The main focus of the bioeconomy in Spain is the use of biological resources to produce food and feed like as Germany [30].

According to the reports, almost 1.5 million jobs are related with the bioeconomy sector in Italy. Reports show that, Italy ranks 10th in the world as for exports of bio-based products, with a share of around 3%. It is stated that Italian Bioeconomy has great potential for growth which has stronger interactions between public and private stakeholders, different sectors

With having the sixth-largest economy in Europe, the Netherlands's industrial activity is consist of food processing, chemicals, petroleum refining, and electrical machinery. As for bioeconomy, their approaches and strategy are carry on slower than expected when it is compared to the other European countries. However, it is stated that the structure and strengths of its economy lend itself well for the transition to a bioeconomy. Another disadvantage with respect to the bioeconomy is that The Netherlands has no forestry biomass; the only potential

and disciplines from the harvest to the various final products [31].

tures the other half of value added and 60% of employment in the year 2010 [28].

and stakeholders to work more closely together [27].

the world [29].

198 Microalgal Biotechnology

The US national bioeconomy strategy was drafted by the Office of Science and Technology Policy and the Executive Office of the President, under participation of different federal agencies. Individual persons and institutions from scientific and industrial areas were consulted for this strategy. The "National Bioeconomy Blueprint" which was the document of bioeconomy strategy of USA, is divided into two distinctive parts. The background and impact of the current bioeconomy is explained in the first part and the strategic objectives are described later. In USA, genetic engineering, DNA sequencing and automated high through-put manipulations of biomolecules, these three technologies are focused as the strategic fields for the bioeconomy. In the document, the possible contributions of government departments and funding agents were also reported. According to the document USA already has a bioeconomy strategy and some of the results which are aimed to achieve are listed. It was stated that, federal departments and agencies supporting biological research. As the focus of the strategy is biological research, the perspective is national with little outlook to the rest of the world [14, 34]. As for the Canada, "Canadian Blueprint: Beyond Moose and Mountains" was the equivalent of the USA's blueprint of bioeconomy strategy. However, there is no official strategic document for the development of a bioeconomy in Canada, nor any signs of one being prepared. Yet, the document present the requirement for actions and goals within the selected priority areas of capital, people and operational environment. In the bioeconomy strategy of Canada, the forest sector and agriculture, life science and clean technology play important role. Canada's largest producers of agricultural products is from Alberta and there are a lot of significant producer of forest products. Biomaterials, biochemical, and bioenergy are the areas which have taken marginal roles in Alberta's economy but are foreseen to grow [14].

#### **3.3. Bioeconomy in Asia**

According to the studies on bioeconomical approaches in Asia, four bio-industries as biopharmaceutical, biohydrogen, bioplastics and genetically modified crops come into prominence for bio-based economies through 2050. Provided forecasts reported that, development of the biohydrogen industry will be fastest in India, China and Malaysia, and China will be the largest supplier in 2050. The growth of the bio-pharmaceutical industry will be fastest in India, Malaysia, and China and India and Japan will be the two largest suppliers of biopharmaceutical products. Growth of the bio-plastic industry will be fastest in India, Malaysia and China; China will be the biggest supplier of bioplastics. Growth of GM crops will be fastest in Malaysia, India and China; India and China will be the two largest suppliers. In terms of the output values for the four bio-industries, the largest bioeconomies will be in India, China and Japan followed by Korea, Malaysia and Taiwan [33]. In these countries, bio-pharmaceuticals will be the most important bio-industry. Transitioning toward bioeconomy by developing industries based on biological processes will be fast if government should pay more efforts on R&D, biotechnology, human resources and its related infrastructure, industrial supply and sales chain [33].
