The European Union formally launched a $5 billion public-private partnership of bio-based industries on Wednesday, according to European bio-tech giant Novozymes.

Alongside industry representatives, European Commission President Jose Manuel Barroso and Commissioner for Research, Innovation and Science Máire Geoghegan-Quinn announced in Brussels that the $5 billion will be used to develop an emerging sector of the bio-economy and bio-based industries in Europe.

In the coming year, more than $340 million will come from the commission, with the private sector expected to contribute nearly three times as much.

"Europe is not ahead of the curve when it comes to realizing the immense potential around the creation of the bio-based economy – the only viable alternative to our current oil-based society," said Peder Holk Nielsen, president and CEO of Novozymes, representing the emerging industry in Brussels.

According to the company, every day the world uses almost 100 million barrels of oil.