ump industrial biotechnology in malaysia 26mar2010
TRANSCRIPT
Industrial BiotechnologyIndustrial Biotechnology
in Malaysiain Malaysia
1
MohdMohd Ali HassanAli HassanDean, Dean, BioTechBioTech
University Putra MalaysiaUniversity Putra Malaysia
Wan Abdul Wan Abdul RahamanRahaman Wan Wan YaacobYaacobChief Operating OfficerChief Operating OfficerBiotechCorpBiotechCorp, Malaysia, Malaysia
Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp) was established to spearhead the development of biotechnology and life sciences.
Key objectives :
►Act as a one-stop-centre for biotech in Malaysia
3
►Act as a one-stop-centre for biotech in Malaysia
►Nurture and accelerate growth of Malaysian biotechnology companies
►Create conducive environment for biotechnology
►Actively promote foreign direct investments in biotechnology
Oversight & Direction
International Advisory Panel
Implementation Council
Prime Minister
“Cabinet Level”
Ministry of ScienceTechnology & Innovation
(MOSTI)
Board of Directors
Ministry of FinanceMinistry of Finance
Khazanah NasionalKhazanah NasionalBerhadBerhad
Cluster Working Groups “Officials Level”
BioBio--TechnologyTechnology
•• BiologyBiology = study of living systems (life sciences)
•• TechnologyTechnology = application of science to produce useful products and/or services
•• BiotechnologyBiotechnology = technology which utilizes living organisms and their biological processes for the production of products and services
•• Traditional biotechTraditional biotech – enzyme, fermentation, bioprocess engineering
•• Modern biotechModern biotech – application of molecular techniques as tools for new/improved products and servicesproducts and services
The Circles of BiotechnologyThe Circles of Biotechnology
Bioprocess EngineeringBioprocess Engineering
EnzymeEnzyme FermentationFermentationEnzymeEnzyme FermentationFermentation
BiotechnologyBiotechnology
BiochemistryBiochemistry MicrobiologyMicrobiology
Molecular BiologyMolecular Biology
Colours of BiotechnologyColours of Biotechnology
•• Red Biology Red Biology : : medical /biomedical / healthcaremedical /biomedical / healthcare
•• Green Biotechnology Green Biotechnology : : agriculture / crop productionagriculture / crop production
•• Blue Biotechnology Blue Biotechnology : : marinemarine•• Blue Biotechnology Blue Biotechnology : : marinemarine
•• White Biotechnology White Biotechnology : industrial / environmental / microbial : industrial / environmental / microbial
Industrial Industrial (White) (White) BiotechnologyBiotechnology
• screening and isolation of useful microbes
• improved fermentation processes
• bioreactors, process control
• sterility, aeration, mixing
• biosensors, online monitoring
• scaling up, modelling, simulation
• improved recovery processes• improved recovery processes
• biosubstitution
• bioremediation
• waste and wastewater treatment
>>> ““Biotechnology for wealth creation and social wellBiotechnology for wealth creation and social well--beingbeing” <<<
biotechnology as a new engine of growth!biotechnology as a new engine of growth!
• 9 thrusts – leveraging on our areas of strength»» agriculture biotechnologyagriculture biotechnology
»» healthcare biotechnologyhealthcare biotechnology
»» industrial biotechnologyindustrial biotechnology
National Biotechnology Policy (2005)
9
»» industrial biotechnologyindustrial biotechnology
• The national biotech road map..
Phase 2Phase 22011-2015
Science to Business
Phase 1Phase 12005-2010
Capacity Building
Phase 3Phase 32016-2020
Global Presence
BiotechCorp BioNexus
R&D&C Funds
ProductsTechnologyIndustry/Jobs
LicensingInnovation
Global Companies
www.mosti.gov.my
Thrust 1Agriculture BiotechDevelopment
Thrust 2Healthcare BiotechDevelopment
Thrust 9Government Supportand Commitment
99
National Biotechnology Policy
NBP launched in 2005
10
3
Thrust 3Industrial BiotechDevelopment
Thrust 4R&D and Technology \Acquisition Development
Thrust 5Human CapitalDevelopment
Thrust 6Financial Infrastructure
Development
Thrust 7Legislative and RegulatoryFramework Development
Thrust 8Strategic Development 99
ThrustsThrusts
BioNexus companies enjoy a set of privileges contained within the BioNexus Bill of Guarantees (BoG)
With BioNexus status comes:
11
With BioNexus status comes:
� Support and assistance (BNP)
� Funding support (BCG)
� Programmes designed to build capacity
Biotechnology Focus Areas
BIOETHANOL
BIOFUEL
HydrocarbonMunicipal
BIOREMEDIATION
BIODIESEL
BIOGASIndustrial
FINE & SPECIALTY CHEMICAL
Chemicals
Nutraceuticals Pharma product
13
1
BIOMATERIAL
Compounding/moulding
Poly HydroxyAlkanoates
(PHA)
Biodegradable polymer
from agri-biomass Industrial
BIOCATALYST
New discovery
Feed & Food
Food
Poly Lactic Acid
(PLA)
Malaysia (2008), the manufacturing sector contributes
35% of GDP, 70% of exports and 1 million jobs.
Strategy for Biotechnology:
>> provide value addition, moving up the value chain
>>>> expanding opportunities in bioprocesing and biomanufacturing
>>>>>> for bio-based products, green chemicals and renewable energy.
In Malaysia, industrial biotechnology can be applied in the production of 10-20% of
all chemicals sold by the year 2010.
(McKinsey and Company)
14
(McKinsey and Company)
Malaysia’s export value of chemicals and chemical products is valued at RM 40 billion in 2008
which means
the potential value of industrial biotechnology in Malaysia is estimated at RM 4 billion
or US$1.3 billion
Industrial Biotechnology in Malaysia is at early stage, but developing fast
Strength #1
1. Mega biodiversity 250,000 flora species in which 1,230 contain medicinal properties
15
Herbal extract and bioactive compound markets US$11 billion per year
globally (2009 estimate)
Source of usefulmicrobes, enzymesand bioremediation
system
Strength #2
Palm Oil
2. Feedstock availability
Palm Biomass
Types % of Fresh Fruit Production (million
16
Types % of Fresh Fruit
Bunches (FFB)
Production (million
tonnes
in 2008)
POME 65 52
EFB 23 18.4
Fiber 13 10.4
Shell 6 4.8
Total 85.6
plus fronds (13 MT) and old trunks (8MT) at the plantation
Strength #3
3. Economic and Political stability
17
Government Vision & Support(pro-business)
Strong Economic Structure “Strong FDI Growth at 53.4%
in 2008” - UNCTAD
Ministry of Energy, Green Technology and Water
National Green Technology Policy (2009)
Empty fruit bunch (EFB) has the highest commercial potential
(no collection cost, currently very much under-utilised)
Can generate 1.2 billion liters of bioethanol
Total EFB estimated to be 7.6 million tonnes (dry weight)
Total volume of gasoline sold was 11.4 billion liters in 2008
18
Total volume of gasoline sold was 11.4 billion liters in 2008
Potential demand of 1.14 billion liters of bioethanol (for E10)
By 2010, Malaysia will be 1st country to produce bioethanol from sago
- Foreign company and local university initiative (demonstration plant)
- New Century Fermentation Research Ltd, Japan
Main barriers are enzyme cost and gasoline subsidy (USD 0.5 per liter)
Primarily an export-oriented industry, using RBDPO and CPO (later jatropha oil)
Palm methyl ester, as blends in transport fuel
Production has slowed down in 2009 due to
low demand
higher price than crude oil *
Strategies
feedstock diversification
multiple-feedstock processing
4.48 million hectares of oil palm land
19
Strategies multiple-feedstock processing
new uses of biodiesel by-product
Biodiesel producing capability is 10.2 million tons/year(90 companies
licensed)Currently – 12 biodiesel plants with 1.5 million
tons capacity
500,000 tons CPO yearly commitment for B5, from 2010
* Note: CPO is ~USD 580/tonne; crude oil is ~USD 440/tonne @ USD 60/barrel
POME or MSW CH4 electricity
Green and Renewable!Green and Renewable!
20
POME or MSW H2 home type fuel cells, automobiles
Future Potential
CDM as incentive..CDM as incentive..
TNB Jana Landfill Project (2 MW)
The 1st grid-connected renewable energy project in Malaysia
2 MW installed 2 MW installed capacity
Fuel is biogas captured from the landfill area
Commissioned 2004
TSH Bio Energy Project
Located in Kunak, Sabah
Generation Capacity 14 MW Generation Capacity 14 MW (10 MW sold to SESB)
Fuel to be used – oil palm residues (EFB, shell and mesocarp fibre)
50,000 tonnes CO2 mitigation annually
Current Bioremediation in Malaysia
soil
remediation
water, river and sewerage
treatment
solid
waste treatment
removal of
toxic metals
23
hydrocarbon-degrading microbes phytoremediation
Potential New Industries
Current
Focus
feedstocks from palm
oil, POME and
currently conducting
feasibility study
PHA PHBV
Malaysia is one of the world’s biggest manufacturers and
exporters of plastic products, with 1,500 manufacturers
Exports of plastics increased by 11.6%, from RM8.3 billion (2007) to RM9.3 billion (2008)
24
Focusoil, POME and
jatropha oil
feasibility study
feedstock from starchfeedstock from
CPKO
PLAPHBHX
Malaysia, China and Thailand account for 80% of all plastic
bags exported to Europe
Malaysia is a net enzyme importer
2008 – US$14 million
Va
lue
(R
M m
illi
on
)
*US$1.00 = RM3.50
25
No large scale manufacture due to
lack of experience on scale-up operations
limited fermentation infrastructure
high cost of setting up commercial scale facility
Year
Enzymes Microorganisms
Lipase, lipoprotein lipase Humicola lanuginosa, Aspergillus niger Aspergillus flavus, Mucor miehei, Bacillus sp., B. megaterium, Cunninghamella echinulata Corynebacterium sp., Pseudomonas sp., Geobacillus thermodenitrificans, Pseudomonas paucimobilis
Protease Bacillus megaterium, Trichoderma sp., Cellulomicrobium sp., Aspergillus niger
Cellulase, β-glucosidase Aspergillus niger, A. niger subsp. awamori, Trichoderma reesei
Xylanase Aspergillus niger
26
Xylanase Aspergillus niger
Lignin degrading enzymes, (lignin peroxidase, manganese peroxidase, and laccase)
Phanerochaete chrysosporium, Humicola grisea
Tannase Aspergilus niger
Mannanase Aspergilus niger
Phytase Aspergilus niger
Chitinase Fusarium sp.
Malaysia’s Chemical Industry
Petroleum Products &
Natural
Chemicals& Chemical
Rubber Products
Plastic Products
Structure of Malaysia’s Chemical Industry
27
Natural Gas
& Chemical Products
Agricultural chemetic: pesticides fertilizers
Soap detergent
cosmetic & toiletry
preparation
Inorganic Chemicals
Industrial Gases
Oleo-chemicals
Products
Natural Rubber Latex
Latex Threads
Products
Plastic Resins
consists of bulk chemicals, specialty chemicals
and fine chemicals industries
BioBio--based and green chemicals?based and green chemicals?
Common Technologies
thermochemical
conversion
extraction and
treatment of
plant materials
28
extraction and
purification
Use of biomass?Use of biomass?
Herbal products types whole extracts
pure phytochemicals
Local nutraceuticals are highly dependent on imports, but now over 100 active local players
Malaysia’s Strength
Herbal extraction & Oleo-chemicals
29
Acquisition of SFE enhanced manufacturer’s capability to produce standardized extracts
Frost & Sullivan –“Nutraceuticals market in Malaysia is forecast to reach US$ 2 billion
in 2020”
Herbal-based medicines market size could reach
between RM 4.5-5 billion/year and to double by
2010, and expected to reach RM 12 billion in 2012
OleoOleo--chemical chemical
ProductsProducts
glycerine
methyl ester
fatty alcohol
fatty acids
ester manufacturing
30
methyl esterfatty acids
Special Case Study
-- THE PALM OIL INDUSTRY THE PALM OIL INDUSTRY --
31
-- THE PALM OIL INDUSTRY THE PALM OIL INDUSTRY --
• Merging the 3Ps
• Towards sustainability
>>> win-win-win strategy
The 3 Ps – Profit, People and Planet
Profit
People Planet
Sustainable
Development
“ Biotechnology for Sustainable Development ”“ Biotechnology for Sustainable Development ”
Palm Oil Industry and Malaysian Socio-Economy
Facts and figures..
• Now 4 million hectares (~10% of Malaysia)
(more than 50% of Malaysia is rainforest)
(Malaysia is net carbon absorber/sink)
(oil palm canopy is similar to rainforest)
(oil palm is perennial crop, 25-30 years)
• 400 mills throughout Malaysia
• Highest oil yielding crop in the world
• Palm oil - Malaysia’s gift to the world!• Palm oil - Malaysia’s gift to the world!
• Palm oil is the cheapest cooking oil
• Palm kernel oil is source for oleochemicals
• USD15 billion export in 2008
• More than 500,000 people employed
• Poverty alleviation
>> land ownership & stable income
>>>> FELDA’s success story (50 years!)
• Sustainable Development- 3Ps: Profit, People and Planet
- challenge: “win-win-win” strategy
- need to address the bigger picture
Malaysian Palm Oil Industry
Fresh Fruit Bunch
70 million tonnes
Oil ExtractionCrude Palm Oil
16 million tonnes
Palm Kernel Oil
2 million tonnes 16 million tonnes2 million tonnes
Palm Oil Mill Effluent
50 million tonnes
Empty Fruit Bunches
16 million tonnes
Fiber
9 million tonnes
Shell
4 million tonnes
Renewable Resources
Trunks8 million tonnes
Fronds13 million tonnes
Adding Value to Palm Biomass
• Paradigm shift towards biomass– Not waste
– Renewable
– Sustainable
– Under-utilised resource
• Uncertainties of biomass– Technological proven ?– Technological proven ?
– Economically feasible ?
– Quality and quantity ?
– Availability & distribution ?
� value chainfine chemicals
food
fiber
feed
fuel
Palm Biomass Refinery - New Business & Products
Empty Fruit Bunch
15 million t/yrPalm Oil Mill Effluent
50 million t/yr
Standardised biomass available
“business as usual”
Bioplastic (PLA) “zero emissionzero emission”
Sugars
and Bioethanol
Pre-treatment and
Saccharification
Fermentation in bioreactors
Biomass Energy
Bio-acids
Bioplastic
(PHA) Biogas, CH4 (+ Biohydrogen)
wastewaste--toto--wealthwealth
++ water recyclingwater recycling↓↓↓↓↓↓↓↓ water footprintwater footprint
Compost
K recycleK recycle
Bioplastics from Palm Biomass
Concentrationof biomass
Oil Extraction
Palm Oil Mill Effluent
Bio-acids Plant
Bioplastics(PHA)
Plastic pellets
Consumerproducts
Biodegradation
CO2, H2O
Photosynthesis
Biodegradation
CO2, H2O
Biodegradation
CO2, H2O
Biodegradation
CO2, H2O
Photosynthesis
Biodegradation
CO2, H2O
Photosynthesis
Biodegradation
CO2, H2O
Photosynthesis
Biodegradation
CO2, H2O
Photosynthesis
Biodegradation
CO2, H2O
Photosynthesis
Biodegradation
CO2, H2O
Photosynthesis
Biodegradation
CO2, H2O
Photosynthesis
Biodegradation
CO2, H2O
Photosynthesis
Biodegradation
CO2, H2O
Photosynthesis
Biodegradation
CO2, H2O
Carbon cycle of bioplastics
CHO
Photosynthesis
Biodegradation
CO2, H2O
POME acids
Chemical recycling of PHA
Monomer
CopolymersCopolymers
OthersOthers
Biomass
(fermentation)
Depolymerisation
Biomass
(fermentation)
Biomass
(fermentation)
Biomass
(fermentation)
Biomass
(fermentation)PHA
Renewable Energy (1 MW) to Grid
Estimated Costs, RM (million)
Biogas capture (ponds or tanks) 1.8
Downstream processing (gas scrubber & gas storage) 2.0
Gas engine @ 1000 kW 1.2
Total plant cost 5.0Total plant cost 5.0
Yearly maintenance and operation cost 0.5
Benefits and revenues generated :
• Internal office use and external lighting (“24/7”)
>>> reduce diesel cost/usage during mill’s non-operating hours
• Sale of green electricity to TNB @ RM0.25/kWh ~ RM 1 million/yr
• Aeration system to remove remaining BOD
increased POME treatment efficiency >>> water re-use >>> zero emission!
+ reduced land requirement (~70% of total mill area)
• Estimated sale of CER @ € 10 per tonne CO2 ~ RM 1 million/yr
(Assumption: mill capacity of 60t FFB/hr and 320 days of operation)
Bioenergy and Steam Co-Generation
Estimated Costs, RM (million)
Biogas capture (ponds or tanks) 1.8
Downstream processing, gas storage & boiler modifications 2.2
Total plant cost 4.0
Yearly maintenance and operation cost 0.4Yearly maintenance and operation cost 0.4
Benefits and revenues generated :
• Additional income from palm kernel shell @ RM100/tonne
>>> reduce 50% shell usage inside the boilers
>>> potential revenue ~ RM 1 million/yr
• Reduce black smoke emission from boilers
>>> increase air quality/environmental benefits
• Estimated sale of CER @ € 10 per tonne CO2 ~ RM 1 million/yr
(Assumption: mill capacity of 60t FFB/hr and 320 days of operation)
Towards Sustainable Development of Palm Oil Industry in Malaysia
CDM provides profitable
area for new business to
which biomass energy
can be supplied from
palm oil industry at a
reasonable price
for new biomass business
CDM provides a complete methane
fermentation system and change
lagoon area into a profitable area.
CDM provides electricity from methane
fermentation system for new business
>>> towards zero emission and w2w!
1. Reduction of greenhouse gases
emission by sealing the lagoons.
2. Prevention of undesirable smell
and water pollution by modern
treatment ( + water recycling).
3. Local employment can be
encouraged from new business.
for new biomass business
For sustainable economic growth in Malaysia, the development of new oil palm
plantations in the tropical rainforest will soon be no longer feasible.
In order to meet the increasing demand for palm oil in the future, palm oil industry
must co-exist with nature, environment and people… >>> 3P (Profit, People, Planet)
• Industrial biotechnology is still at the development stage in Malaysia
• Opportunities from bioresources and biodiversity in the country
• Abundant raw materials but need to develop or acquire technology to create value
• Will largely depend on the value creation and participation of global biotech players
• Appropriate technologies to be developed and adapted to local situation
• Urgent need to re-think and introduce new innovation to traditional processes
• Concerted effort crucial to achieve targets set in the national biotechnology road map..
THANK [email protected]@biotech.upm.edu.my
43
[email protected]@biotech.upm.edu.my
www.biotechcorp.com.mywww.biotechcorp.com.my