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Business Upper Austria

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Challenge:

Business Upper Austria is confronted with the expectation to guide and assist regional industries in their green transformation journey, a challenge underscored by the European Green Deal and societal expectations for sustainability and carbon neutrality. This situation demands innovative solutions that enhance sustainability without compromising companies’ competitiveness and the possibility of new financial streams.

Solution:

To address this challenge, Value Chain Generator® was deployed to analyze and identify potential solutions that cater to the specific needs of companies within the Business Upper Austria cluster. This approach didn’t require any pre-existing data from the region. The comprehensive analysis led to the prioritization of the three most relevant industries in the region. One of the prioritised industries based on their economic and environmental impacts was the bakery industry.

Value Chain Generator’s® algorithm recognised that the best solution for the bakeries in the cluster involves fermenting by-products to produce organic acids, which can then be utilized by the regional pharmaceutical companies. This is an example of highly localised solutions to ensure the feasibility and a stable business model behind the proposed value chains. 

This solution not only diverts waste from landfills but also creates a sustainable source of valuable compounds for the pharmaceutical industry and increases the value captured in the region. The environmental benefits of the solution are substantial, with a projected reduction in GHG emissions of 2.12 kg CO2e per kg of dry feedstock. This represents a 2.5-fold decrease in emissions compared to landfill disposal and a 1.5-fold decrease compared to anaerobic digestion processes.

However, a gap was identified in the local ecosystem – the absence of technology providers for the necessary fermentation processes. By leveraging the Value Chain Generator®’s platform, potential fermentation technology providers were identified in the neighbour regions. Based on the high added value of the opportunity, either the cluster or its members might choose to invest in developing such fermentation facilities by themselves. 

This was just one example of the solutions representing a significant step towards circularity, enhancing the competitiveness of the cluster’s companies by opening up new markets and technological partnerships.

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