bio-based economy in the eu vis-à-vis malaysia's model for bio-economy...

1Biomass presentation_FINAL.pptx

Kuala Lumpur, May 8, 2012

EU-Asia Biomass Best Practices and Business Partnering Conference 2012

Presentation

Bio-Based Economy in the EU vis-à-vis Malaysia's Model for Bio-Economy Development

2

This document shall be treated as confidential. It has been compiled for the exclusive, internal use by our client and is not complete without the underlying detail analyses and the oral presentation. It may not be passed on and/or may not be made available to third parties without prior written consent from Roland Berger Strategy Consultants. RBSC does not assume any responsibility for the completeness and accuracy of the statements made in this document.

© Roland Berger Strategy Consultants

Contents

Biomass presentation_FINAL.pptx

Bio-Based Economy in the EU

Malaysia's model for BBE development

Implications and opportunities

1.

2.

3.


Economy

SocietyEnvironment

Viable Equitable

Livable

Sustainable

1 BIO-BASED ECONOMY IN THE EU

Source: World Summit 2005, Roland Berger

Sustainability is about moving towards economic act ivities, which BALANCE environmental, economic and social requirem ents


The emerging global view: Returning to "living off the land" is the only way to ensure human survival

9

8

7

6

5

4

3

2

1

03054321 2928272625242322212019181716

10

14131211 159876 10

"Living off the land"

"Living off the land"

Population 9 - 10 billion

Population < 1 billion

"Age of hydrocarbons"

World population - from year 0 to year 3000 [in billions]

We are here


Source: UN world Population Prospects, Population Reference Bureau, BP, Roland Berger

CO2


As a result, multiple BBE initiatives are already be ing launched globally

Pacific Ethanol(Cellulose ethanol)

BioGasol (Cellulose ethanol & gas)

Force(Cellulosic fibers & chemicals)

NExBTL Biorefinery(Veg oil & animal fat biodiesel)

Ghent Bio-energy Valley(Biofuels, gas and power)

Lignocellulosic Biorefiniery(Cellulose ethanol and chemicals)

Green Biorefinery (Chemicals, biofuels, gas and power)

Green Biorefinery(Chemicals, food, feed, biofuels, gas and power)

Green Biorefinery (Cellulose ethanol)

Mackay biorefinery(Cellulose ethanol)

Waste Biorefinery(Cellulose ethanol)

CHRISGAS

Large scale ethanol production

Forestry Biorefinery(Chemicals)

Green Biorefinery (Chemicals, biofuels, gas and power)

Microalgea Biorefiniery(Chemicals, feed, food)

Iogen (Cellulose ethanol)

Lignol(Cellulose ethanol)

Blue Fire(Cellulose ethanol)

Abengoa(Cellulose ethanol)

ICM(Cellulose ethanol)

Poet(Cellulose ethanol)

NewPage(Cellulose ethanol)

Alico(Cellulose ethanol)

Range fuels(Celluloseethanol)

NExBTL Biorefinery (world’s largest biorefinery)(veg oil & animal fat biodiesel)

DSM-Roquette (Chemicals)

Source: Wageningen University Research Center; International Energy Agency ;Department of Energy, Company websites

Global bio-based initiatives (selection, non-exhaustive)Borregaard(Cellulose ethanol & specialties)

BioHub (Chemicals)

Braskem(biopolymers)

VTT/Kemira(Biomass R&D center)

Dedini/Novozymes(Cellulose ethanol)



The Dutch national approach is built around the ide a of maximizing all relevant value chain opportunities


6

Algae

Primary residuals (road grass, wood trimmings, …)

Sustainable available (parts) of crops/plants

(Thermo) chemical conversion

Specialty chemicals

PRODUCE BIOMASS CONVERT BIOMASS PRODUCE BIO-BASED PR ODUCTS

Power

Biochemical conversion

Heat

Food & feed

Source: Dutch Government vision on Bio-Based Economy, Roland Berger

(Base)chemicals & materials

Fuels

Waste

Secondary residuals (beet pulp, beer brush)

Tertiary residuals (animal fat, dung, VFG)

Dutch concept of the Bio-Based Economy


Therefore, a focused national development program w as set up in 2008 – To achieve an integrated BBE within ten years

2008 1 – 4 years

Development of Bio-Based

Economy

Realization of a Bio-Based Economy (Netherlands)

Separated initiatives

PRODUCE BIOMASS

CONVERT BIOMASS

PRODUCE BIO-PRODUCTS

Aligned set of initiativesPRODUCE BIOMASS

CONVERT BIOMASS


4 – 10 years

PRODUCE BIOMASS

CONVERT BIOMASS


Continue successful existing initiatives

Initiate missing building blocks

Integrated Bio-Based Economy network


Source: Dutch Government vision on Bio-Based Economy, Roland Berger


In the Dutch economic development strategy, BBE is considered as a cross cutting activity, not a stand-alone sector

Priority sectors Netherlands

Source: Innovation contracts top sectors

1

2

3

4

5

7

6

8

9

BBE Link

Agriculture & Food

Chemicals

Creative Industry

Energy

High-tech systems

Life Sciences & Health

Logistics

Horticulture

Water

✓✓✓✓

✓✓✓✓

✓✓✓✓

✓✓✓✓

✓✓✓✓

Selection of key challenges

10 Head offices

Higher product efficiencies, higher value added products

Biobased materials, improved process technology

Cooperation and focus on gaming/fashion/architecture

Green gas, smart grids, energy efficiency, bioenergy

Semiconductor, health care, nanotechnology, photonics

Homecare, specialized nutrition, pharmacotherapy

Open ICT platform, cooperation seaports, service logistics

Food security, cooperation, IP alignment, fiscal measures

Clean/smart vessels, eco-engineering, water safety

Fiscal measures, human capital, infrastructure

✓✓✓✓

✓✓✓✓


✓✓✓✓

✓✓✓✓

✓✓✓✓


The Netherlands intends to be the main bio-hub in E urope given its geography, strong agro, chemical and logistics sect ors

PRODUCE BIOMASS CONVERT BIOMASS

STRONG AGROSECTOR STRONG LOGISTICS SECTORSTRONG CHEMICAL SECTOR

UNIQUE GEOGRAPHICAL POSITION

WORLD CLASS KNOWLEDGE INSTITUTES

• Imported through port of Rotterdam, other ports, rail and rivers

• Conversion to chemicals, food, fuels, power & heat

• Bio-based products

• Export to Europe

• Sustainable biomass production , both local and overseas

• Pretreatment near source to decrease transport unit cost

PRODUCE BIO-BASED PRODUCTS

… and many others


Source: Dutch Government vision on Bio-Based Economy


The Dutch BBE program is already bearing fruit, bot h in terms of knowledge and commercial developments

Selection of program results (industrial biotech)

Biobased economy

in the Netherlands

Biomethanol from glycerine

Biofoam and PLA prod.

Furanics and PEF production

Bioplastics producer

Thermoform biopolymers

Biobased polymers

Biopolymer optical fibre

Source: Innovation contract Biobased economy; Company websites

BE-BASIC

Biosolar

Bio Performance Materials

Dutch Polymer Institute

CatchBIO (catalysis)

Kluyver Center of Genomics

Top Institute Food & Nutrition

Inst. for Sustainable Process Technology

Carbohydrate Competence Center

WETSUS (water separation)

Bioprocess Pilot Facility

Tripartite PPP consortia Commercial products



Bio-economy Initiative Malaysia (BIM)

In Malaysia, there are now several national policie s and plans that touch on the subject of Bio-Based Economy

2005 2009

2010 2012

2 MALAYSIA'S MODEL FOR BIO-ECONOMY DEVELOPMENT

Source: Various Malaysian Government sources, Sustainable Energy Development Authority AIM, BiotechCorp, press releases

National Green Tech. Policy

Tenth Malaysia Plan (10MP)

Economic Transformation Plan

1MalaysiaBiomass Alternative Strategy (1MBAS) Initiative

Renewable Energy Act

National Biomass Strategy 2020

• Basis for pooling & coordinating efforts

• Wide-ranging

• Many actors

• Government is planning to roll-out a bio-economy roadmap this year

National policies and plans

National Biotechnology Policy

2011

NON-EXHAUSTIVE


YAB Prime Minister has recently announced the conso lidation and refining of the bio-economy initiatives under BIM

BIM context, scope and objectives

Bio-Economy Initiative Malaysia (BIM)

• Includes ALL sectors that produce, manage & utilize biological resources

• Special focus on 2 areas:

– Renewable resources

– Locally developed technologies

• Multiple biotechnology initiatives have been launched by Government and private sector

• Coordination at national level of all these initiatives is needed

• Encourage full participation of private sector

• Long term benefits to Malaysia

Source: BiotechCorp (as of Dec 2011)

Focus areas and projects are not exhaustive and must be revisited and prioritized to meet overall BIM objectives

Genomics

Extracts Biofeed

Biocontrol

Biofertlizer Biosimilar

Other focus areas

Industrial biotechnology

Projects Projects Projects

Rationale Rationale Rationale

Projects

Rationale



The ongoing BIM project is currently identifying, s electing and detailing out the final key priority initiatives

Source: BIM Labs, Roland Berger


BIM Workshop

EPP 1

EPP 2

EPP 3

EPP 4

EPP x

EPP y

• Structured by focus areas & by sector

Lab 1

Lab 2

Lab 3

Lab 4

• Abt 3 EPPs / Lab• Abt 1-3 trigger project per EPP• 25-30 participants / Lab• Syndication with other relevant

parties and stakeholders

1. For each EPP:• Details

• Requirements:– Investments– Employment– Technical– Research– Commercial– Regulatory– PPPs

• Action plan• Owners, KPIs• GNI / other impacts

2. Overall BIM report3. Presentations

• 300 participants• Set priorities

• Select main EPPs

PHASE 1 – Workshop, 1 week PHASE 2 – Labs, 6 weeks PHASE 3 – Reports, 3 weeks


The ongoing BIM Labs are currently identifying, sel ecting and detailing out priority initiatives

Source: BIM Labs, Roland Berger


BIM Workshop

EPP 1

EPP 2

EPP 3

EPP 4

EPP x

EPP y

• Structured by focus areas & by sector

Lab 1

Lab 2

Lab 3

Lab 4

• Abt 3 EPPs / Lab• Abt 1-3 trigger project per EPP• 25-30 participants / Lab• Syndication with other relevant

parties and stakeholders

1. For each EPP:

• Details

• Requirements:– Investments– Employment– Technical, Research– Commercial– Regulatory– PPPs

• Action plan

• Owners, KPIs

• GNI / other impacts

2. Overall BIM report

3. Presentations

• 300 participants

• Set priorities

• Select main EPPs

PHASE 1 – Workshop, 1 week PHASE 2 – Labs, 6 weeks PHASE 3 – Reports, 3 weeks


In Malaysia, the BBE can grow through "cascading", fully utilizing biomass via co-production and value-chain integrati on

15Source: Innovation agenda for the BBE, Roland Berger

Bio-Based Economy in Malaysia


PRODUCE BIOMASS CONVERT PRODUCE END PRODUCTS

Algae

Crops and plants

(Thermo)chemical conversion

Biologicalconversion

Tertiary residuals (manure, solid waste-municipal)

Secondaryresiduals (food processing)

Primary residuals (palm oil waste, wood chips etc.)

Resi-duals

Pre-treat-ment

Cascading• Extracting the

highest possible value from biomass

• Increasing efficiency of the entire chain via integration (co-production, refineries)

• Eliminating waste via valuable use of degraded materials (recycling and, ultimately, combustion)

High Added ValueSpecialty

chemicals

Base chemicals

Fuel

Power, gas & heat

Food-feed

Packaging, fertilizer

Pharma-ceuticals

IN ABUNDANCE INFANCY STAGE SMALL

High Volume


Conversion of biomass to chemicals via biorefinery

As an example, the BBE approach can unlock more ener gy efficient conversion routes than possible via the petrochemic al route

VIA BIOREFINERY

Enthalpy

High

Low

Chemicals

CxHzN

CxHy

CxHzO

Naphtha CxHy

Biomass

Amine

Lignin

Oil / fat

Protein

Carbonhydrate

CxHzOy(OCHz)y

CxHyOz

CxHzOyNSv

CxHzOy

CxHzN

Direct fractionation

High energy intensity requires large scale to be economically viable

Low energy intensity offers opportunities for both economically viable large and small

scale production

PETROCHEMICAL WAY VIA BIOREFINERYCHEMICAL & MATERIALS

Source: Wageningen University Research Center

IMPLICATIONS AND OPPORTUNITIES3


The way forward: Malaysia's stated target of 40% C O2 reduction by 2020 (vs. 2005) will require more far-reaching poli cy changes

1. Big, fast results - Focus on 'big" tickets, in relation to CO2 emissions/absorption

2. BBE Roadmap - Focus on biomass resources, value chain opportunities and economics -rather than technology (acquisition) considerations

3. Renewable Energy Act - Revamp, focusing on much higher annual renewable targets (biomass, hydro, ..), in collaboration with the independent power producers and TNB

4. Biomass utilization - Among all competing potential downstream users of biomass, carefully select projects that generate highest GNI contributions and are fully supported/funded by committed private sector investors

5. Forestry management - (Re-)vitalize forest plantation strategies and programs

6. Agricultural strategies - Promote production systems with higher CO2 absorption rates per m2 (eg. greenhouses)

Some suggestions

Source: Roland Berger

IMPLICATIONS AND OPPORTUNITIES3


Creativestrategies that work!

Anthonie Versluis, Managing Partner MalaysiaRoland Berger Strategy Consultants Sdn Bhd (Co. no: 949134-W)Level 39, Menara Standard Chartered, 30 Jalan Sultan Ismail50250 Kuala Lumpur, Malaysia : Tel: +603-2203-8600 [email protected]

bio-based economy in the eu vis-à-vis malaysia's model for bio-economy...

Documents