Hemp in the Bioeconomy

Leading the transformation by Nature

First of all, what is bioeconomy and where do I see the opportunities and problems?

Bioeconomy is defined as the sum of sectors and services that use biological resources such as plants, animals and microorganisms.

In short, in the long term, a large proportion of the fossil raw materials used worldwide, such as coal, oil and natural gas, are to be replaced by renewable raw materials. In order to achieve this goal, research, business and municipalities must work together and create incentives. This is exactly where I currently see the problem. If you ask municipalities or businesses about bioeconomy, it quickly becomes clear that the incentive is still lacking, but at the same time regulations are being issued that can be existential for both sides.

Now let's talk hemp and why I believe that this problem can also be overcome

Circular economy, climate targets and structural change are relevant topics and pose problems especially for structurally weak regions. The topic of hemp in the bioeconomy (textiles, construction industry, packaging, etc.) offers support in structural change as well as the achievement of climate targets for cities and economic opportunities in the circular economy for companies, farmers and municipalities. The legalization in Germany, US announcement and the global trend towards innovations in sustainability have given the topic of hemp a new shine and one quickly understands the potential that lies behind this renewable raw material. If you take a closer look at the areas and possible applications, you will see that large and established global market leaders, from the construction industry to the packaging and textile industry to the energy sector and the automotive industry, are already working with hemp.

Hemp is celebrating a breathtaking comeback.

In April 2024, the German government underlined that a turning point in the field of hemp had been ushered in with a research grant of 1.6 million euros for a hemp research project in the bioeconomy. Never before has the federal government provided such a sum to a hemp project/company, but it makes it clear that the economic potential of hemp has now also reached the political level.

The announcement by Agriculture Minister ?zdemir that the

“Intoxication Clause” will be removed with Pillar 2, fits into the picture here and confirms the political change on the subject of hemp.

BMEL - Pressemitteilungen - Bundesregierung beschlie?t die Liberalisierung von Nutzhanf

INDUSTRIAL HEMP: ?ZDEMIR ANNOUNCES CHANGES TO THE LAW CANNABIS INDUSTRY CELEBRATES ANNOUNCEMENT OF ABOLITION OF CONTROVERSIAL “Intoxication Clause” AND FURTHER REFORMS FOR INDUSTRIAL HEMP

Some international media also claim that the EU is still too slow in implementation. Where biopesticides are concerned, the EU is lagging well behind other competing agricultural markets. It takes 7 years on average to bring a biopesticide to market in the EU, compared to 2-3 years elsewhere.

The European Union is setting an example with the Green Deal and has provided an enormous volume of funding opportunities for innovation, cooperation and the development of knowledge transfer in rural areas. In the fight against packaging waste, the European Parliament has decided to ban single-use plastic in hotels and restaurants. Each person in the EU currently produces an average of around 190 kilograms of packaging waste per year. It is therefore no wonder that many companies are already turning to hemp, as the raw material prices for wood have risen enormously at the same time.

At EU level:

Europe has to set aside the pesticides row and turn toward sustainable agricultural solutions

And now some companies should ask themselves what an EU Deforestation Regulation (EU) 2023/1115 is.

The EU Deforestation Regulation (EUDR for short) represents part of the EU Green Deal, which was issued by the EU as a partial element in achieving the UN's Sustainable Development Goals (SDGs).

In order to achieve these goals, the placing on the market, availability on the market and export of certain raw materials and products to and from the EU are regulated. Affected are wood, cattle, cocoa, coffee, oil palm, rubber and soy and products made from them. A complete ban will apply from December 30, 2024 on products that are not deforestation-free. For this purpose, due diligence obligations must be implemented and applied as part of supply chain compliance.

Compliance with the regulations must be confirmed by submitting a due diligence declaration. In the event of violations, companies face various types of sanctions, which in addition to financial consequences can also affect the company's reputation.

Why hemp is an important part of a circular economy and why structurally weak regions in particular benefit from it can be described in 3 words.

"Back to Nature"

EU Renaturation Act passed.

The so-called Renaturation Act obliges the countries of the European Union to take measures to restore nature on at least one fifth of their land and sea areas by 2030. The aim is to counteract the decline of natural habitats, for example by restoring moorlands that can absorb CO? emissions.

For a long time this saying was only considered a statement by an egocentric niche group, but climate change, resource scarcity, digitalization, social tensions and a general rethinking in society could very soon ensure that it becomes an economic statement that cannot be ignored.

ESG is the beginning of a change that global society and politics cannot escape.

Environmental, Social and Corporate Governance (ESG for short; for: environmental, social and corporate governance) are criteria and framework conditions for the consideration of environmental, sustainability and social issues within company management, public bodies, governments and authorities. ESG criteria are designed so that they should be embedded in the strategy of all companies in the future. The needs of all companies, such as employees, customers, suppliers and financiers, should be taken into account in the future and opportunities for value creation should be fairly redistributed for everyone in the future. Hemp and its history, in my view, addresses the basic principles of this as a renewable raw material.

Hemp: Biological, Economic and Social

In the east, I see the pioneers with Prignitz, Uckermark and other regions as trailblazers when it comes to Germany. New production chains are emerging and hemp cultivation will probably reach new records in Germany in 2024 if you believe the entrepreneurs. The textile industry / winter hemp is currently the strongest buyer alongside the construction industry, but other areas are already lining up. Hemp has considerable potential in several key areas:

• 1.**Sustainable textiles:** Hemp fibers are durable, breathable and biodegradable, making them ideal for eco-friendly clothing, accessories and home textiles.
• 2.**Alternative to plastics:** Hemp-based materials can be used as a renewable alternative to traditional plastics, reducing dependence on fossil fuels and plastic pollution.
• 3.**Building materials:** Hempcrete, made from hemp fibers and lime, offers a lightweight, insulating and CO2-negative alternative to traditional building materials such as concrete. Hemp boards, etc with high insulation and fire protection values as well as sound optimization add to the potential
• 4. Nutrition: Hemp seeds are rich in proteins, essential fatty acids and other nutrients, making them a valuable source of plant-based nutrition in foods and supplements.
• 5.**Soil remediation:** Hemp's deep root system and phytoremediation properties make it effective for soil remediation, including removing toxins and restoring soil fertility. Nitrogen enrichment
• 6**Carbon sequestration:** Hemp cultivation absorbs CO2 from the atmosphere and is therefore a potential tool for carbon sequestration and climate change mitigation. These areas show the versatility and potential of hemp to contribute to sustainable solutions in various industries. Hemp supports ESG (Environmental, Social Governance)

From hemp to composite material

We tested it ourselfs and tried to build parts for our car out of hemp fillament and manufactured with a 3d printer. We took it for a ride onto the Nürburgring race track and, we were stunned !

We create product-specific prototypes and studies for companies.

As one of the oldest crops in the world, hemp offers a wide range of applications. Due to its high adaptability and versatile properties, the plant offers perfect conditions for the regional, sustainable economy and for innovative products. Questions such as:

How can a homogeneous and resilient surface for the construction of bio composites be created as efficiently as possible from natural fibers? How can such a homogeneous surface be produced from natural fibers both sustainably and cost-effectively in order to be able to survive on the market as a competitive alternative to synthetic equivalents?

The answer here is hemp.

Hemp in the automotive industry and motorsport

(Carbon replacement)

Carbon fiber bodywork is widely used throughout the motorsport industry and is responsible for a significant carbon footprint. Many of the carbon fiber parts used in racing end up in landfill when they are damaged during a race or are no longer needed. New composite technologies from manufacturers are made from flax fiber and offer a promising solution. They have already proven their performance extensively in motorsport series from F1 to Formula E, Extreme E, DTM and GT4 on Porsche, Mercedes-Benz and other brands. AMG and BMW M GT vehicles. The automotive industry is already using hemp in interiors as a plastic replacement. Due to their low density and excellent mechanical properties, flax fiber is a much more sustainable option for the development of high-performance composite materials. There are many reasons why hemp has been rediscovered as a crop but I am convinced that we are just at the beginning of a very large market. The problem currently lies in the lack of infrastructure, production development (mixing components) and education, although a great deal has been done here since legalization and the media landscape has taken up the issue. Countries such as France and, in the future, Ukraine are certainly leaders when it comes to cultivation, although I am sure that Germany, as a climate country, will catch up very quickly.

The federal government of North Rhine-Westphalia is providing the funds for consultation to German based companies in North Rhine-Westphalia. Innovation projects are the approach here and companies can also get funding for the initial consulting costs (approx. 3,000 to 5,000 euros). :-) You are welcome to contact me directly to discuss options. For municipalities and companies, especially in structurally weak rural regions, I see the greatest potential here at the beginning to set themselves apart in this economic sector and take advantage of growth opportunities.

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Hemp in soil cultivation and emission reduction

The fact that hemp has become a global trend can also be seen in the projects we are currently seeing in Africa, among other places. Terms such as biochar and carbon offset are still relatively unknown, but so was Bitcoin, and there are already large startups in Germany that are enjoying international recognition. Every company has a certain range of CO2 emissions per year (CO2 emission certificates) as credits (carbon credits) from the state. When the credit is used up, it has to pay the federal government per ton of CO2 emissions. Here there is then the option of buying "credits" from companies that generate carbon offsets from environmental projects in order to increase your credit and thus save costs. It is easy to see why Zimbabwe is currently replacing corn with hemp. Hemp is known, among other things, for its simple and uncomplicated cultivation and its ability to absorb CO2. You can find out what this looks like in practice at the following link:

Carbon Border Adjustment Mechanism - European Commission (europa.eu)

Belgian village exploring hemp to overcome pollution of land from ‘forever chemicals’

The cleanup initiative in Lillo is the second such project in Belgium, where industrial giant 3M said two years ago that it was successful in growing hemp to remove PFAS from topsoil and purify polluted groundwater at an industrial site in Antwerp.

Hemp in the construction industry

The dream of owning a single-family home has come to an end for many people after the construction of additional houses was even banned in some regions. The reason for this: house building currently uses too much space, energy and resources. The construction industry accounts for 6% of global CO2 emissions, which is why the EU and the federal government have now reacted.

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Hemp concrete, made from hemp fibers and lime, offers a light, insulating and CO2-negative alternative to conventional building materials such as concrete. If you consider the emissions here, it quickly becomes clear why large companies are rethinking things, but there are other reasons. Hemp stone is a temperature storer (walls are warm in winter, cool in summer)

Hemp stone regulates moisture. Moisture is absorbed and prevents mold

Very flame retardant. Hemp panels, etc. with high insulation and fire protection values as well as sound optimization add to the potential

If you compare the prices for building a single-family home, building a hemp house including the subsidies is cheaper. A 150 sqm hemp house costs an average of around 310,000 euros compared to 360,000,- euros for a conventional house.

Ever heard of Sustainability certification?

Well, in Germany it provides you with extra funding when building a home. They even have experts ( Sustainability Consultant ) for it that go hand in hand with Energy consultant.

Hemp: The revolution in the textile industry

In its action plan for the circular economy, the European Commission names the textile industry as one of the cornerstones in the transition to a greener and more sustainable economy and calls on stakeholders to look for new materials and new economic models. I call the latest generation of hemp textiles hemp 2.0 because many people still know the somewhat coarse and uncomfortable hemp from the past. In fashion, in addition to design, price, etc., comfort is important and a lot has happened here in recent years. Today you can hardly "feel" the difference between a cotton and a hemp T-shirt. The production process of hemp fibers has contributed enormously to hemp becoming a serious alternative. "Winter hemp" is known to farmers as an intermediate crop but has also established itself in textile production. The long fibers have proven to be very good for textile production. International players such as Levis, Nike, Adidas and Under Armour are relying on hemp and have already launched their first collections in the past. In addition, the EU has increased the pressure on manufacturers enormously and set legal requirements for the future. In Brandenburg, the growth in hemp cultivation for the textile industry can be followed very well, as large production facilities have been built here in recent years and cultivation areas have increased exorbitantly. Lifestyle and sporting goods manufacturers in particular have already discovered the advantages of hemp fiber due to its practical, efficient and sustainable properties. Anyone who still believes that we are talking about a niche product has not understood the problems in the fashion market. Hemp: The revolution in the textile industry?

Advantages of hemp over cotton:

1. Antibacterial
2. Moisture-regulating
3. UV and use-resistant
4. Climatizing
5. Sustainable
6. Absorbent
7. Light

If the necessary infrastructure is set up regionally and production chains are fully in place, hemp will also become a serious player in this market. Many regions in Germany still have decommissioned machines for production and have hidden know-how that is now coming to light again. You wouldn't believe that such resources are more important than you think. Just ask a production facility.

Hemp and AI

Hemp is not immune to artificial intelligence. AI can be used efficiently, especially in cultivation and logistics. Regional hubs and structures are essential to exploit the full potential and efficiency of hemp cultivation. There are already good approaches being used in the following areas.

• Intelligent search: Searches the internet for hemp articles, products, services and applications and offers users an optimized source of relevant and up-to-date information.
• Logistics optimization: Calculates transport costs in real time and helps companies optimize their supply chains and reduce costs. Warehouse and automation insights: Analyzes data to suggest improvements in warehouse layout and automation solutions for greater operational efficiency.
• Sustainability focus: Integrates energy consumption data with environmental impact assessments so that companies can find cost-effective and sustainable solutions.

Funding and grants for hemp in the bioeconomy

Circular economy, climate goals and structural change are relevant topics and pose problems particularly for structurally weak regions and countries.

The federal government and the European Union are making gigantic funds available for innovation projects (federal government / various ministries and local economic development agencies) and as part of the European Union's Green Deal and RURAL.

In conclusion, it can be said that hemp is indispensable in the circular economy. I hope this gives you a little insight into the potential that hemp offers. Research projects are becoming the norm to learn even more about the plant's possibilities.

I am currently building a Hemp Innovation Hub in collaboration with the City of Aachen in Aachen accompanied by a research project on hemp textile that I do with RWTH Aachen University and municipalities. I would be happy to explain questions such as:

How can I as a municipality, company or farmer benefit from hemp or who can I contact? Talk to me and arrange an initial meeting.

As a consultant, I help companies and municipalities to develop strategies to integrate the topic and to obtain funding for innovation projects.

Cologne/Berlin · Dieter Behrentin advises companies and private individuals in Cologne and Berlin who see the market for cannabis and hemp products as an opportunity. He is also listed with the European Union as an expert on the topic of circular economy with hemp, among other things. The legalization of cannabis opens the door to a new market and many opportunities. Drinks, textiles and insulation materials made from components of the crop have long been the norm and the hemp industry offers lucrative prospects -

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