Global Science And Innovation Advisory Council

Briefing to Malaysian Financial Institutions

Potential Future in Malaysian Biomass Industry

26 September 2011

Joint Secretariat :

Introduction on GSIAC

Content

1. Background of GSIAC

2. Inaugural Council Meeting on May 17,

2011

3. Implementation Governance

4. GSIAC Program 1- MBI

2GSIAC l

Overview

• A Malaysian delegation visit to US was headed by YAB Prime Minister from 25 to 30 September 2010

• One of the announcements made during the visit was the setting up of the Global Science and Innovation Advisory Council (GSIAC) for Malaysia in New York

• GSIAC will be chaired by the Prime Minister and consist of selected ministers, corporate leaders and academics – Malaysia & New York Academy of Sciences President’s Council Members

• The Advisory Council is deemed a crucial added value to the efforts of the Malaysian Government to make a quantum jump from middle-income country to a high-income economy by the year 2020

Structure of the Council

3GSIAC l

Members of the Council

4GSIAC l

The Council comprises 35 members - 10 from Malaysia and 25 international members from China, India, Russia, Japan, Korea, The Netherlands,

the UK and the USA.

Background of GSIAC

Objectives of the GSIAC Council

1. Providing strategic advice and as sounding board on Malaysia’s aspirations of being a developed nation by 2020, through science and innovation;

2. Benchmarking Malaysia’s ranking and competitiveness in Science and Innovation against technologically advanced countries, and improving Malaysia’s capabilities in science and innovation;

3. Value adding to the achievement of Malaysia’s economic transformation programme objectives;

4. Intensify capacity building through industry-academia collaboration with world experts and globally renowned organisation;

5. Generating and increasing bilateral trade and investment value in short, medium and longer-term.

5GSIAC l

Background of GSIAC

6GSIAC l

2. Framework for Focus Areas :

1. Theme : “ Intensifying Sustainable and Balanced Growth Based on Innovation-led Economy ”

• Malaysia’s existing strengths in the palm oil industry create opportunities for immediate technological and economic gains.

• Green Future promotes new economic opportunities and sustainability by ensuring industrial efficiencies, sustainable consumption and production and emphasis towards zero pollution.

• Green Futures will revolutionize the sourcing and usage of new technologies in energy, water, herbal pharmaceuticals, buildings and the transportation sector.

• This paper identify challenges and provides highly plausible

measures to overcome them through the implementation models (Public Private Partnership, Center of Excellence and Multi Source Investment ).

Synopsis : Green Futures

High Impact Programs / Projects : •Palm Oil Biomass•Solar•3rd Generation Biofuel•Eco-labeling

7

The Inaugural Meeting on May 17,2011

1. The inaugural GSIAC Meeting was held on May 17th, 2011 in New York, chaired by PM, attended by 25 council members.

2. There were 2 main presentations: Green Futures and the Innovative Digital Economy. 2 other main themes were also discussed: Smart cities / Smart villages and Human Capacity Building.

The Chairman endorsed 3 key high impact programs:

Program 1 : Malaysian Biomass Initiative (MBI);Program 2 : Smart Cities/Smart Village;Program 3 : Human Capacity Building.

8GSIAC l

Content

1. Background of GSIAC

2. Inaugural Council Meeting on

May 17, 2011

3. Implementation Governance

4. GSIAC Program 1-MBI

Background of GSIAC

Strategies for Program Implementation

• Supporting current national priorities

(1Malaysia, NEM, GTP & ETP).

• Inclusive - Implementable downstream

projects nationwide.

• Early wins through Pioneer Projects

• Industry led (for projects).

• Through Private-Public Partnership or

Private Funding Initiative.

• Allows participation of local SMEs.

• High Impact - Economic & high skilled job

creation.

• In line with sustainable development and

low-carbon.

9GSIAC l

Content

1. Background of GSIAC

2. Inaugural Council Meeting on

May 17, 2011

3. Implementation Governance

4. GSIAC Program 1-MBI

Background of GSIAC

Biomass Technology for Uptaking by SMEs

EU-Malaysia Biomass SP

Biomass and Clean Development Mechanism

Concepts, Trends, Perspectives in Enviromental Performace

Optimising and Benchmarking the Economic Value of Biomass

Success Stories of Biomass Conversion/SCP Projects

Financing & Funding Opportunities

Policy Intervention via Economic Instruments

EU Market Access Opportunities for Biomass Product

Pelleting Technology

NATIONAL BIOMASS ACTION PLANS

OILPALMBIOMASS ROADMAP

FORESTRYMUNICIPAL

SOLIDWASTE

AGRO OTHERS

EU-Switch AsiaProject by MIGHT

National Biomass Planning

Macroeconomic Study

Malaysia Innovation Agency (AIM)

1 Vision

• To be the market leader in high value green chemicals through excellence in technology development , capacity building and enabling infrastructure.

4 Strategies

• Biomass aggregation – to establish collection hubs at strategic locations.

• Local capacity building - to attract technology companies to Joint Venture with local players.

• To prepare SMEs uptake in the green chemical to produce products

• Establishment of policy and related enablers.

6 Early wins

• Operationalisation of Special Purpose Vehicle (SPV) for MBI.

• Launching on Oil Palm Integrated Cluster.

• Pledges by Technology Companies

7 Key collaborators• Private sector – Felda & Sime Darby.• Government- KeTTHA, MOSTI, MOHE,

MPOB,AIM,Biotech C, MIGHT & Academia.

3 Key issues

……need to coordinate biomass supply & accelerate local capability

• The need to reap full value from biomass through fractionation process

• Supply biomass need to be more coordinated.

• Current industry focus to capitalise on the Feed-In-Tarriff (FIT) through converting biomass into energy.

2 Objective

• To capitalise on Malaysia’s existing strengths in the oil palm industry & uptapped opportunities from biomass, for technological and economic gains.

• Shift focus to downstream production of higher value bio-based chemicals & products manufacturing.

• To attract the anticipated full scale commecialisation of bio-based R&D

by global technology companies by 2013-14.

5 2020 Impact

RM 100 B

90,000Jobs creation

Economic-Add Revenue

Program 1 : Malaysian Biomass Initiative (MBI)

12GSIAC l

13

Need To Reap Full Value Of Our Raw Materials Through Fractionation

Centralized collector

Value Generated from

‘Whole’ Use

RM275 per ton biomass

RM55 per ton biomass

Wholly burned for power

Biomass

Biomass

Wholly mulched/ composted for fertilizer

Value from Fractionation

Fermentable sugars (C5, C6)

Lignin

Ash/Char

Silica

Nitrogen, Phosphorus, Potassium, Magnesium, Calcium

RM800-4000/T biomass

RM150-1000/T biomass

RM100-300/T biomass

[tbd]

RM55/ton biomass

Bio-chemicals

Power/additive

Power/Fertilizer

Chems, glass

Fertilizer

vs.

Biomass

Higher Value Output :

GSIAC l

14

Oil Palm Biomass Value Chain

Bio BasedProduct

Manufacturers

• Biomass Policy• Biomass Roadmap • Ecosystem devt.• Meeting RE national

target• Capacity building• SME devt.• Job creation• Economic activities

FeldaSime Darby

Plantations

Aggregation

Technology Companies

Biomass supply

Biomass demand

Supply of high value chemical(Bioplastics, pharma related, etc.)

UPSTREAM

MIDSTREAM

DOWNSTREAM

RelatedSupport Services

Providers

Stakeholders : Role / Impact :

1

2A3

Biomass Clusteron site

4 Local Value Chain Development

5Ecosystem

Development

MIGHT

AIM

Initial Biomasssupplier

Facilitator(Aggregator SPV formation)

Facilitator on Commercialisation(Consortium formation)

EPUMIGHTMOFMITIOther MinistriesMPOBBiotech CorpMLSCF

Pre-treatment 2B

GSIAC l

15

MBI Implementation Model

GSIAC l

Thank You

www.might.org.my/gsiac

Joint Secretariat :