LEARNING LAB RESOURCES

Participation List Presentation Photos

ABOUT ANDE

The Aspen Network of Development Entrepreneurs (ANDE) isa global network of organizations that propel entrepreneurship inemerging markets. ANDE members provide critical financial,educational, and business support services to small and growingbusinesses (SGBs) based on the conviction that SGBs will createjobs, stimulate long-term economic growth, and produceenvironmental and social benefits. Ultimately, we believe thatSGBs can help lift countries out of poverty.

ABOUT MERCY CORPS

Mercy Corps is a global team of humanitarians, workingtogether on the front lines of today’s biggest crises to createa future of possibility, where everyone can prosper. Workingin more than 40 countries, Mercy Corps' mission is toalleviate suffering, poverty and oppression by helpingpeople build secure, productive and just communities.

Potential of Biomassfor Solutions

BIOMASS is organic material that comes from plants and animals. Biomass contains stored energy from the sun. Plants absorb the sun's

energy in a process called photosynthesis. When biomass is burned, the chemical energy in biomass

is released as heat. Biomass can be burned directly or converted to liquid biofuels or biogas

that can be burned as fuels.

SPEAKERS

Babette BodlaenderAgriProFocus Myanmar

Agricultural Livelihoods & Energy Access Planning

• Only 60% of rural areas have access to electricity

• More than 60% of energy consumption is from biofuels and waste

• Majority of this (82%) comes from the use of traditional biomass

• In 2018, Myanmar produced around 13 million tonnes of milled rice, resulting to 3.6 million tonnes of rice husk that can be used for energy generation

Opportunities:Farmers and millers need access to credit under fair financing schemes

Addressing issues in rice trading to increase farmers’ incomeInvestments and support are needed towards facilities and activities that add value to rice husk, especially by using it for modern bioenergy

Financial support for millers, especially small-scale and husk-to-energy operators to invest in zero-effluent husk-to-energy facilities

Support community partnerships via capacity buildingCollaboration between local businesses, communities, and civil society organisations

More policy focus on rice husk bioenergyStricter implementation of rules against rice husk or wastewater disposal into river systems

Myanmar has abundant biomass resources that can be used for energy generation

Sustainable and Inclusive Business Scan - the potential for circular economy

OTHER1. Energy2. Starting an action based sustainability network in Myanmar

• Matchmaking between Dutch and Myanmar businesses

• Coalition building to ensure sustainable impact

• Launching an action-based sustainability & inclusive business platform in Myanmar (AgriProFocus, NL Embassy, MVO NL) and project development

Questions• How could the Myanmar agribusiness sector develop in a sustainable way?• Who can contribute to these ambitions and how (Local stakeholders & Dutch

companies)?• What opportunities do companies see for sustainable, inclusive agribusiness?

COFFEE1. Improving soil quality for higher coffee quality2. Valorisation completes coffee cherry(incl. pulp & skin)or fleeces3. Export specialty coffees

FRUITS & VEGETABLES1. Preventing waste2. Valorising residues / by products3. Productive nature / commercial agroforestry

PROCESSED FOOD1. Zero waste wrappings (packaging)2. Edible waste (e.g. cookie crumbles)3. Healthy products4. Valorising fried oil waste

Lessons from Practical Experiences

Dipti VaghelaHivos & HPNET

(Moderator)

Thet Su MyaRoyal Htoo Linn

U Soe Tint AungRoyal Htoo Linn

Amarnath ReddyResponsible Business Fund

U Ye Min AungMyanmar Rice Federation

SPEAKERS

Gasifiers in Myanmar

Myanmar has been the most prominent rice producer of the region since British rule. Much of the production is through local SMEs – which means greater benefits happen locally.

Local rice production is heavily dependent on biomass gasification, especially for milling paddy, with an estimated 80% of the 15,000 rice mills in the Delta region – the country’s rice bowl – are using gasifiers. Even where the main grid and diesel are available, it is more cost effective for millers to use gasifiers, as they are powered by rice husks – the main biomass waste from rice processing. In addition, a few hundred communities have developed biomass mini-grids for village electrification. Considering the complexity of gasification technology, this type of bottom-up technology development and adoption – even without international or government support – is a striking national achievement.

Despite this transformation, the majority of rice husk is still being discarded. Myanmar has increasing power cuts and local SMEs in its urban areas use dirty fuel and the large numbers of gasifiers used by rice mills discard wastewater into natural water sources. Myanmar is seeking a techno-economic scale up of responsible biomass energy solutions.

This requires a 3-part solution: 1) technology innovation, 2) SME/SGB* awareness-building, and 3) scalable financing/policy.

*Small and Growing Businesses (SGBs) are defined by ANDE as commercially viable businesses with five to 250 employees that have significant potential, and ambition, for growth. Typically, SGBs seek growth capital from $20,000 to $2 million.

People in the Delta region of Myanmar rely on rivers, which are polluted by biomass, as main sources of livelihood and transportation

Discharged wastewater from gasifiers

Rice husks being piled up on the ground

MAPCO integrates rice processing facility with biomass power plant

U Ye Min Aung - chairman of the Myanmar Rice Federation and the Vice Chairman of the Union of Myanmar Chamber of Commerce and Industry (UMCCI). As the Managing Director of the Myanmar Agribusiness Public Corporation (MAPCO), leads collaboration between MAPCO and a consortium of Japanese companies and have been establishing the fourth generation of rice husk power plants in Naypyitaw and the Delta region of Myanmar.

History:In Myanmar, biomass energy from rice husk is not new. We called it the power generation unit (PGU) boiler system which was initially installed by the government. After the government liberalized the rice industries, most of them became privatized and some rice mill facilities were not properly refurbished. So PGU systems in big rice mill had stopped functioning.Then a lot of biomass gasifiers came in, functioning quite well but didn’t’ account for wastewater which was an environmental requirement by the government.

New System:MRF introduced a new system- working together with Japan Department of Environment and Joint Credit Mechanism (JCM) to form the 3 clusters in Nay Pyi Taw and Ayeyarwady. The boiler turbine generation technology was more friendly to the environment, but it is expensive.

Connecting to the grid:MRF discusses the possibility of being able to connect the national grid with the government and now are discussing a PPA (power purchase agreement) to be able to sell to the grid.If it is successful, it will attract local and foreign investors to organize the rice miller. There will be more work with international partners to support more boiler turbine facilities which leads to more established biomass power generation facilities under MRF.

Question: Can you share with us what is the role of classic husk power and what is the vision for rice husk power? And also the challenges?

U Ye Min AungMyanmar Rice Federation

Soe Tint Aung is a technology innovator and entrepreneur of biomass gasification solutions for rural electrification, with experience of 30 years. His passion was to find ways to re-use risk husk to generate electricity and develop other products that add value to rural livelihoods. He invented his first gasifier in 1991 for his family’s rice mill. In 2009 he established the Royal Htoo Linn Manufacturing Co., Ltd. (RHL), with the mission to innovate gasifiers to be zero effluent (i.e. no wastewater is released into natural water sources), while also being affordable and user friendly.

Ayeyarwady has small and medium scale rice millers in which rice husk gasifiers have been important to. The rice millers used to be run by 1) diesel, 2) boiler, 3) electricity but now have converted to be the rice husk gasifier. Rice millers know that this if more efficient and cost effective.

There is still a challenge on how to overcome the issue of stopping environmental pollution to create zero effluent gasifiers. Most of the rice mills are located along the river and therefore, this contributed to wastewater.

After going through research and development, Royal Htoo Linn produced a successful model. There was a joint report was made by Royal Htoo Linn along with many experts that tested and analyzed this new zero effluent gasifier model. Soon, this was approved by the government. Zero effluent biomass gasifier model is the new generation.

Thet Su Mya serves as Director of Royal Htoo Linn Manufacturing Co., Ltd. She has co-anchored RHL’s mission to develop zero-effluent gasifier technology for rural electrification and rural livelihoods enhancement in Myanmar.

Question : What role have gasifiers played for small-scale rice production? What is your vision for zero effluent gasifier?

U Soe Tint AungRoyal Htoo Linn

Amarnath ReddyResponsible Business Fund

Amarnath Reddy is the Team Leader of Responsible Business Fund (RBF) Myanmar, currently managing a MMK 20 Billion Challenge Fund to increase the competitiveness and responsible behaviour of SMEs by providing partial grants for the implementation of projects.

Questions : Based on your experience, what is the missed opportunity for husk power in Myanmar – for agri value chains and other SMEs?What are opportunities for green finance to create impact?What challenges need to be overcome?

From a rice millers point of view, why should they invest in the new technology and put in an investment which is larger than what they had before to be more environmentally responsible? The new technology offers:1) energy efficiency from risk husk is being converted more efficiently 2) less pollution

Does he care about pollution? Only if there is regulation.Does he care about efficiency? 40% of rice husk is being thrown away.

How do we get the 40% rice husk being thrown away converted into economic opportunity?In Myanmar, the average broken rice for rice mill is 25% to 35% which is converted into other products. This does not produce as much economic value. In other countries, there is 5% to 10% broken rice. There is also pressure from other rice millers to not comply or others will have to comply and increase costs for the rest of them.

RBF is trying to help SME demonstrate new technologies and new responsible investments for other SMEs in the countries to compete by providing grants.

Just access to finance will not drive the process because they don’t have incentive to invest. There is need to think about how to make economic sense for them.

Myanmar Rice Federation MRF is working with the Ministry of Natural Resources and Environmental Conversation (MONREC) on drafting the regulations on rice mills and their emission and the package for scale and size of rice mill which is required. Regulations are to be released this year.

What are the regulations and partnerships around gasifiers?

Can you share some more examples of other countries and they solve this problem of making the rice husk use

to be more economical?

Responsible Business Fund The biggest challenge is to be able to find the entrepreneurs. In Vietnam is so entrepreneurial. In Myanmar, there are some startups but 40 % of the rice husk is thrown away without looking for the opportunities. There needs to be a combination of regulations, demonstrations around the country to show the opportunity and bring the banks to be able to finance it at a feasible rate

There are 4- 5 million ton of rice husks, which people can use efficiently, the average value of the rice husk is half the value of coal. If coal value is 100 dollars per ton, rice husk is 50 dollars per ton. If we are talking about 2 million tons, then 100 million dollars is thrown away every year. Give this story to entrepreneurs that we have waste, technology, and investment to extract the value of 100 million dollars and can change this scenario of Myanmar.

Responsible Business Fund

RBF will be working with the banks in getting investment by promoting new financial instruments. Once the flow of investment is possible through the banks, then the rice millers and the entrepreneurs will get different looks, especially with the interests are lower, we will help more people talking. Go to http://www.rbfmyanmar.com/ you can see what RBF is supporting.

Myanmar Rice Federation

Rice millers have their own economic realities and difficulties.They lack regulations and situations and the rice market is veryvolatile/ fluctuating and the cost of financing is also high. MRF ispromoting bankability of rice millers. Even though they wantto get access to finance, they don't know how to prepare abank proposal, they are not sure how their business isreported. The present focus and priority is around access tofinance, to have more bankability and draw the attention ofthe government in this particular sector.

Q: MRF has a new technology gasifier, how to substitute the old one into a new one? Do you have any plans in the future to use this

gasifier by the rice millers?

Venture Spotlight

CO2Replace Save Reduce

1.0 Mt1

Rice Husk Charcoal1.6 Mt

Fuel wood4.3 Mt

CO2 Emission85.0 m2

Deforestation

6 M Mt2

Rice Husk/Year

Production Cost

💲💲💲💲💲💲US$0.03/kg3

Market Size95%

Myanmar Households

Potential Carbon Sequestration0.32 M MtCO2 Annually4

Golden Sunland produces high-quality rice through responsible farming methods.They are a whole value chain enabler, championing a field-to-table concept by stewarding all upstream and downstream processes from seed to rice. They partner local farmers to produce high-quality rice and distribute the products domestically and internationally.They are an inclusive business that is scalable for greater impact and form meaningful partnerships with international NGOs and industry actors to link rural farmers to the market.

Round TableGroup Discussion

Questions

1. How to promote the development of biomass to energy in Myanmar? What should be done?

2. What are the next steps and when can they be taken? Who should be part of the actions?

3. Open table

Group I

How to promote the development of biomass to energy in Myanmar? What should be done?

• All stakeholder should promote awareness raising via community voices, demonstrations.

• There should be a more holistic approach to leverage all stakeholders such as existing VCs, Interior Ministers and coordinators, as well as determine policy formulations and incentive through tax.

• The educational system should also be leveraged to promote awareness, promote a mindset change and scale up the technology.

• The focus has been on rice but it is recommended to also look beyond rice to chick peas, peanut shells and other individual solutions.

• Determine and showcase the alternative uses and business models for dryers.

Group II

What are the next steps and when can they be taken? Who should be part of the actions?

• Coordination should take place on multiple levels, looking at the value chain and larger ecosystem.

• An activity of mapping the VC Ecosystem could take place to identify and know potential financial investors

• This could be focused on being targeting a market- driven scheme and how to create demand.

• There should be a demonstration of programs for others to learn and adopt. • There needs to be awareness building and change of mindset- training (e.g. schools) to

encourage engagement.• Public, private partnerships should be encouraged and made.• Donors and government should open toward these solutions and push for these

collaborative opportunities.• The private sector needs to see the financial incentives and benefits.

Group III

Topics included: • The viability of peer to peer lending.• Our conversation has a focus on the supply of biomass, how do we focus or push more on the

demand side?• How do we activate/engage accelerators to encourage entrepreneurship in this field?• We need to consider other products other than rice.• The idea of bankability for these projects.• How do you move toward the new generation of models without throwing away the old?• What is the role of government and who is the leader?• How much public interest in this space?

Open discussion: People in the group were able to volunteer topics for a few to be picked up and discussed in more detail.

Sustainable Agriculture Learning Lab #7 Co-led by MEDA

Gender-inclusive agribusiness developmentThursday, May 28th, 2020

Myanmar

Register HereA S I AA G L A B S E R I E STO BE CONTINUED