Industrial biotechnology is an interdisciplinary field that draws on biological resources to produce and process everyday products such as food, fuels, materials, and medicines. It holds huge potential to revolutionise industry by making production processes more sustainable and so addressing global challenges such as food security, resource scarcity and environmental degradation. In this article, Professor Aline Miller discusses the Industrial Biotechnology Innovation Catalyst (IBIC) , led by The University of Manchester, which aims to accelerate knowledge exchange, skills development, and innovation in industrial biotechnology.

• Industrial biotechnology offers a solution to food insecurity and environmental degradation by harnessing naturally evolving fungi, bacteria, and enzymes to create sustainable products and break down waste efficiently.
• Researchers at the University of Manchester are leading the Industrial Biotechnology Innovation Catalyst, bringing together research excellence and industrial capabilities and positioning the North West at the centre of the biotechnology revolution.
• To enable the potential of biotechnology in the UK, the government must establish clear and consistent regulatory standards with enhanced product labelling, building trust and unlocking innovation.

What is industrial biotechnology?

To understand industrial biotechnology, we must first understand what it is. Biotechnology is a way of using natural processes and mechanisms to transform one compound into another. In practice, this means that we can use things that would otherwise end up in landfill, such as plastic bottles, as feedstock (raw materials) for processes that produce valuable chemicals such as those used to make pharmaceuticals or biomaterials.

To transform one thing into another, we usually use fungi, bacteria, or enzymes that have naturally evolved to carry out that process, such as using yeasts to create the bubbles in beer or that make bread rise, but we can also genetically engineer these organisms to have specific characteristics that make them perfect for a given task. For example, making vegan cheese from milk protein that doesn’t come from a cow but is created by modifying the yeast.

When we find a fungi, bacteria, or enzyme that has the characteristics we need, we can then put it to work in a bioreactor – a large vat – where it carries out the biological reaction, working like a mini factory to produce the target molecule. Scaled up, and applied in a real-word factory environment, this is industrial biotechnology (IB).

Realising the north-west’s potential

Research and innovation underpin prosperity in our regions. In the cycle of innovation, universities generate knowledge, translate and de-risk this intellectual property (IP), and either form a spin out to exploit the IP, or translate the knowledge to large corporations through licence agreements to fully commercialise it, where they incorporate it into their operations.

In the UK, the north-west region is uniquely and exceptionally well-positioned to become a leader in industrial biotechnology. It has a critical mass of world-leading universities and is home to large corporations such as AstraZeneca, Unilever, Teva, Croda, and Holiferm. This confluence of academic excellence and industrial presence creates a fertile ground for innovation and commercialisation, but there is currently a lack of pilot and mid-scale infrastructure in the north-west that allows this university research to reach industrial levels.

Currently, biotechnology typically sits at the earlier technology readiness levels (TRLs), with research institutions laying the groundwork for industry. But these research institutions are unable to scale it up due to this lack of larger-scale infrastructure, and companies will not adopt a new technology until it is proven at scale.

Traditionally, this gap is bridged by small and medium enterprises (SMEs) who can demonstrate the technology at scales large enough that prove its effectiveness. However, the UK does not currently have the necessary infrastructure in place to allow for this bridging scale-up, and SMEs do not typically have the capital to build it themselves.

The Industrial Biotechnology Innovation Catalyst

In 2024, the Industrial Biotechnology Innovation Catalyst (IBIC) launched to address these challenges. Led by The University of Manchester, in partnership with other regional universities, the £5.3 million initiative aims to accelerate knowledge exchange, skills development, and innovation in industrial biotechnology. By fostering collaboration between academia and industry, IBIC supports the region in scaling up the industrial biotechnology sector to contribute to the UK’s net zero ambitions. Despite the region’s strengths, and the inception of IBIC, several challenges hinder the full realisation of the region’s IB potential, each of which should be tackled in tandem if the sector is to thrive.

Scaling up policy and regulation for biotechnology in the UK

Current UK legislation and regulations were not designed with biotechnology in mind. While the sector is still in its early stages, legislators should take this opportunity to ensure a solid foundation is laid that will support the industry to grow. There is a danger that our current suite of regulations end up being a barrier to biotechnology adoption, due to lack of clarity over which laws regulate which processes and products, a lack of flexibility if a platform technology option is adopted, and the lack of a systematic way of classifying and labelling resulting products. The government must create clear and consistent standards with enhanced labelling to help to unshackle innovation and build consumers trust and understanding of IB products. This could be achieved by regulators, standards bodies, metrology organisations and policymakers coming together and offering a consistent understanding of the innovative potential and properties of IB products and outlining the uncertainties surrounding them at the different development stages.

In 2023, the Engineering Biology Regulators Network (EBRN) was formed by the Department for Science, Innovation and Technology to support the development of regulatory reforms. Before the UK General Election in 2024, the network – which is formed of a cross section of UK Government departments and regulators – was tasked with mapping the current regulations already in place across the industry. In line with the recommendations listed by the Regulatory Horizons Council report, published in January 2025, it is paramount that there should be one regulatory pathway which sets out the measurement mechanisms and standards for industrial biotechnological processes and products to ensure they meet key safety and efficacy thresholds, to underpin the future of the biotechnology economy. In addition, the government should work with the EBRN to produce an interim report on their mapping work, which details any grey areas in the current regulatory system and includes proposals as to how these might be overcome, which should then be subject to consultation.

Incentivising industry to move away from petrochemicals towards sustainable bio-alternatives will be key in building the bioeconomy. Most of our everyday essentials are made using, or come from, gas and other petrochemicals, which receive tax incentives. There is no such incentivisation in the UK currently for industrial biotechnology, which makes it difficult for these products to compete with traditional methods.

If the UK truly wishes to realise its 2050 net zero ambitions, it must make decisive and bold moves away from these harmful raw ingredients. It must follow the lead set by EU countries such as France, Spain and Bulgaria, who offer tax incentives to encourage a switch away from petroleum-based feedstocks. Research and development tax credits, feedstock subsidies and VAT exemptions could be just a couple of ways to make IB solutions more attractive to UK industry.