Produce bio-based functional ingredients and additives for high-end markets Demonstrate the efficient production of functional ingredients and additives from sustainably sourced biomass feedstock streams through new value chains and business models that provide maximal benefits to the society.The scope includes useable biomass feedstock from any sustainable source, thus including residual streams from food production and processing, production of beverages, biowaste, etc.Proposals should include any relevant and applicable technology to obtain the desired ingredients and additives.The integrated value chain should be based on a business model that includes the conversion of the biomass feedstock into different intermediates, applying a cascading approach where appropriate to maximise the revenues and societal benefits.Production of low-value by-products should be kept to a minimum.Proposals should demonstrate a guaranteed supply of sufficient biomass feedstock (considering regionality, seasonality, sustainability and legal constraints if needed) to meet demand for resulting products in a way that is sustainable from both an environmental and an economic perspective.Proposals should address all requirements for IA - demonstration actions as shown in Table 3 of the Annual Work plan 2019.The technology readiness level (TRL) at the end of the project should be 6-7. Proposals should clearly state the starting and end TRLs of the key technology or technologies targeted in the project.Indicative funding:It is considered that proposals requesting a maximum contribution of EUR 7 million would be able to address this specific challenge appropriately. However, this does not preclude the submission and selection of proposals requesting other amounts. Several market sectors utilise functional ingredients and additives to achieve the desired functionality and performance of their consumer products. Specialty, functional molecules are required to meet market requirements in sectors as diverse as cosmetics, flavours and fragrances, nutraceuticals, pharmaceuticals, medicine, beverages, food and feed.In consumer products, especially those related to personal and home care, food and beverages, consumers are demanding functional natural products and ingredients. In industrial products, bio-based formulations open interesting opportunities for better performance and higher sustainability. In addition, bio-based value chains based on regionally sourced biomass feedstock offer interesting opportunities to meet requirements from consumers and industry in different market sectors and realise maximum benefits for the local society.The specific challenge is to create integrated value chains with the appropriate business models to produce functional ingredients and additives. Expected impacts linked to BBI JU KPIs:▪ contribute to KPI 1 – create at least one new cross-sector interconnection in the bio-based economy at local level;▪ contribute to KPI 2 – create at least one new bio-based value chain involving local stakeholders including farmers, food transformers and SMEs;▪ contribute to KPI 6 – demonstrate at least two new ‘consumer’ products based on bio-based chemicals, ingredients and materials that meet market requirements.Environmental impacts:▪ increase the overall resource efficiency through the smart use of biomass feedstock.Economic impacts:▪ reduce import of biomass feedstock, ingredients and additives;▪ increase income and business opportunities for stakeholders and actors (including primary producers) in the bio-based sectors, in particular in the forestry, agriculture, arboriculture, horticulture, fisheries, aquaculture and the food and drink sectors;▪ improve (regional) competitiveness of stakeholders and actors involved in the new developed bio-based value chains.Social impacts: ▪ contribute to creating high-value regional industries associated with regional biomass production systems;▪ create new job opportunities in the bio-based sector, particularly the rural, coastal and/or urban areas.Type of Action: Innovation action – demonstration action.