sustainability’ challenges and opportunities ‘towards
TRANSCRIPT
The Way Forward for Malaysia Biomass Industries: Updates, Challenges and Opportunities
Presented by:
Dato’ Leong Kin MunPresident, Malaysia Biomass Industries Confederation (MBIC)
ACCCIM ITI Roundtable 2015 • 28 March 2015
‘Towards Sustainability’
PRESENTATION OUTLINE
• Malaysia Biomass Industries Confederation (MBIC)
• Status of Biomass Industry in Malaysia
• Best Practices of Industry
• Success Stories of Biomass Ventures
• Challenges/solutions
Malaysia Biomass Industries Confederation (MBIC)• Formed in 2012 as legacy of the EU-Malaysia Biomass
Sustainable Production Initiative (biomass-sp.net), a development cooperation programme between the European Union (EU) and Malaysian Government (2010 – 2013)
• Main objective: to promote a growing and sustainable biomass industry in Malaysia as well as the ASEAN region
• Seeks to represent industry players in Malaysian biomass industry especially the small & medium companies (SMEs)
• Strive to achieve economic and environmental sustainability in Malaysia via adoption of Sustainable Consumption & Production principles
• MBIC website - www.biomass.org.my
Malaysia Biomass Industries Confederation (MBIC)MBIC ACTIVITIES• Annual Biomass Asia Conference
– www.biomass-asia.org• Business Networking Seminar• Dialogue with Government Agencies
– MPOB, MIGHT, KeTTHA, MIDA, Greentech Corp, MITI• Information Sessions to Bankers & Investors
– Association of Banks in Malaysia (ABM) / Malaysian Business Angel Network (MBAN)
• Linkages with Universities & Technical Experts– UPM, UKM, USM, UTHM, UTP, China-ASEAN Technology Transfer Centre
(CATTC), etc.• Overseas Promotion of Malaysian Biomass Industry – via
international conferences– EU, China, Indonesia, Singapore, Thailand, Korea, Japan
Status of the Biomass Industry in Malaysia
Million Metric Tonnes (wet)
Status of the Biomass Industry in Malaysia
Million Metric Tonnes (wet)
Availability vs. Accessibility
Utilization of Biomass in Malaysia
Benchmarking Biomass Utilization Value
Policies, Strategies & Actions by Government
Policies, Strategies & Actions by Government
Palm Oil Industry
Biogas power generations
National Biomass Strategy
Malaysian Biomass Industry
Action Plan 2020
Bio-conversion of biomass into high value chemicals & liquid fuels
Feed-in-tariff for renewable energy
generation
Green technology financing schemeUSD1 billion in subsidized loans
Investment tax incentives for green ventures in
Malaysia
Promote high value utilization of biomass by small & medium companiesDevelopment of
market players & technologies for
biomass pellets & biochemicals
Generation of power to national electricity grid via
biogas from effluent waste
Policies, Strategies & Actions by Government
Policies, Strategies & Actions by Government
1. MAKING THE BUSINESS CASE
2. SMART UTILIZATION OF BIOMASS
3. VALUE CHAIN APPROACH
3. VALUE CHAIN APPROACH
CASE 1 : SIME DARBY BHD.
CASE 2 : TECK GUAN BHD.
CASE 3 : WARIS NOVE S.B.
CASE 4 : CHE METAL WORKS S.B.
CASE 5 : MTS FIBROMAT S.B.
CASE 6 : BIOTECHNOLOGY DIVERSIFIED INDUSTRIES S.B.
CASE 7 : GREENEARTH INTERNATIONAL S.B.
CHALLENGES
1. Access to biomass feedstock at - volume & pricing• Current agricultural practice – return palm
biomass (EFB) to field• No commodity market for biomass trading• Remote locations of biomass sources - high cost of
transportation esp. with high moisture content• Biomass owners not favorable to long-term supply
contract due to rising demand & pricing of biomass
SOLUTIONS
• MyREMap• Establish a Joint Venture with feedstock
owners• Consultation with MBIC
CHALLENGES
2. Access to financing for biomass ventures• Local financiers not familiar with biomass industry • Biomass feedstock supply & pricing risks• Comparative high investment for SMEs
SOLUTIONS
• Government grants• Briefing to banks• International green funds
CHALLENGES
3. Lack of support from domestic market• Switch to sustainable production not
complemented by sustainable consumption locally
• Most biomass products are for export market to meet demand for premium ‘green’ products
• Local green procurement initiatives slow to be realized due to various barriers
SOLUTIONS
• Market-driven approach in developing the industry– Export vs. local market– MyHIJAU Programme
• Support and promote sustainable production and consumption of green products and services via four subprogrammes: MyHIJAU Labeling, Directory, Procurement and Industries
– Services Export Fund (MATRADE)• RM300mil to promote market research/feasibility study for
products/services catered for overseas market
CHALLENGES
4. Commercialisation of local technologies• Gaps between R&D and commercialization - pilot
or demo • plant, lack of market-focused R&D, lack of multi-
disciplinary approach to commercialisation• Local market & financiers risk-averse to local
technologies & products
SOLUTIONS
• Grants from the government– (MTDC, MOSTI, MIDA
• IP Financing from MyIPO
CHALLENGES
5. Sustainability requirements & certifications• Existing and future requirements on biomass from
sustainable sources esp. contentious issues on exploitation of primary forests and peatland
• Lack of local standards & certifications in biomass feedstock and products
• Low awareness and slow adoption of carbon footprinting to influence business decisions on sustainability
SOLUTIONS
• Engage with certification schemes• ‘A-stage’ planning
CHALLENGES
6. Low-value utilization of biomass by local companies• Existing biomass ventures mostly in production of
commoditybased products e.g. fibers, compost & fuel pellets
• Lack of access to the right technologies to create higher value from biomass feedstocks such as eco-products, biochemicals & polymers
• Lack of technical capacities of local companies esp. small and medium ones to adopt and apply high technologies in their ventures
SOLUTIONS
Low-Hanging Fruit(mass market)
High-Value Products (niche market)
vs.
• Off-set agreement by foreign Technology Providers
Biomass Value Chain: 4 Major Directions
Bioenergy
BiofuelsBiomass power plantBiogasPellets, briquettesCDM fuel-switching project
BioAgricultureBiofertiliserAnimal feedCompostingAqua-feed
Eco-products
Pulp and paperBiocompositeBiopackagingActivated CarbonBio-engineering
Biochemical
BiosugarLactic acidPolylactic acidFood additivesZeolite & catalyst
Value
Time
