a regional approach to a global biobased economy...asean region holds vast potential in industrial...
TRANSCRIPT
10th Annual World Congress on Industrial Biotechnology
17 June 2013
Montreal, Canada
A Regional Approach to a
Global Biobased Economy
Malaysia’s Experience
OUR WORLD FACES A CONFLUENCE OF VERY PRESSING
TODAY
CHALLENGES
World Population Will Reach 8.3 Billion
by 2030
Increase of Global Primary Energy
Consumption
Increase of CO2 Emission
The World is in Transition to a Bio Based
Economy
Viable Equitable
SUSTAINABLE
ECONOMY
ENVIRON- MENT
SOCIETY
Livable
A global bio-based economy is the way
forward as it addresses key
sustainable development
challenges affecting the world
Emerging Trends: Countries Establishing Bioeconomy Initiatives
ASEAN Region Holds Vast Potential In Industrial
Biobased Economy
Vietnam Thailand
Singapore
Indonesia
Dong Quat Bioethanol
Plant. • Capacity of 100 mil litres per year
Well Positioned to be a
Global Bioplastics Hub • PTT - Mitsubishi
Chemical Co. to make
bio-based polybutylene
succinate in Thailand
One of Asia’s Fastest
Growing Bioclusters • Biomedical Hub
• Jurong Island Integrated
Petrochemical Hub
World’s Largest Palm Oil
Producer • Hotbed for biomass resources;
estimated 147 mil tonnes/year
Malaysia: Emerging Hub in Bio - Industrial
NCER : NORTHERN
CORRIDOR ECONOMIC
REGION
ECER : EAST CORRIDOR
ECONOMIC REGION
SCORE: SARAWAK
CORRIDOR OF
RENEWABLE
ENERGY
IRDA : ISKANDAR
MALAYSIA
SDC : SABAH
DEVELOPMENT
CORRIDOR
SABAH
SARAWAK
TERENGGANU
JOHOR
KEDAH
PERLIS
PAHANG
KELANTAN
Kerteh Bio-Polymer Park
Mukah
World’s first bio-methionine plant and
Asia's first thiochemical
platform
First commercial bio-isobutanol
plant in Asia
The first plant in the world that produces PDO
(1,3 Propanediol) from crude
glycerin
Commercial bio-based chemical
facility
Biorefinery cluster
Agri-biotech cluster
Melaka Biopharma Park
Tanjung
Manis
Bioeconomy Transformation Programme Enriching The Nation, Securing The Future
• Foster full participation of the private sector through monetizable projects
• Ensure coordination,
consistency and sustainability of all national biotechnology policies in parallel with the ETP
• Reap long term benefits for
Malaysia • Contribute to the country's
economy, welfare, productivity, health and environment
GNI in 2020
Job Opportunities
By 2020
Investment by 2020
USD 1.2 Billion
16,300 Jobs
USD 3.33 Billion
BioIndustrial Projects Under Bioeconomy
Transformation Programme
USD 0.5 BILLION $
7,300
GROSS NATIONAL INCOME EMPLOYMENT
The Ecosystem Setup
SUSTAINABLE FEEDSTOCK
DEVELOPMENT
INCENTIVES & FINANCIAL
INFRASTRUCTURE
WORLD CLASS FACILITIES &
INFRASTRUCTURE
Feedstock Development Dedicated and Sustainable Feedstock Supply
Forest Plantation
Dedicated and Sustainable FSE Certified
Forest Plantation
500,000 Hectares
Various species, Acacia mangium, Leuceana
leucocephala, Albizia sp., Eucalyptus sp.
Oil Palm Biomass
30 – 50 million MT oil palm biomass
Oil palm Leucaena leucocephala Acacia mangium
Harnessing on Malaysia’s Agricultural Strength for Renewable Feedstock
To address competitiveness,
we introduce the
STRATEGY
BIOINDUSTRIAL
CLUSTERING
Strategies To Accelerate Development Of
The Bio Industry
Proximity of feedstock and plant Cost of transportation will kill the economics of feedstock if more than 150km radius
Highly specialized industrial zone Industry focus will leverage on the surrounding industries setup
World class infrastructure Port facilities with Central Utilities Facility & Biomass Collection Center
Hence, enabling us to
STRUCTURALLY MOBILIZE
130 million MT of biomass & cellulosic
sugar
Northen Corridor Economic Region (all feedstock is located within 100 km radius)
• 1 BioIndustrial Park
• 2 M MT Dry Weight Biomass
• 1 Major Petrochemical Complex
• 600,000 MT Palm Oil Refineries
• 3 Oleochemicals Plant
Southern Corridor *Bio-Xcell* (all feedstock is located within 100 km radius)
• 1 BioIndustrial Park
• 10.4M MT Dry Weight Biomass
• 1 Major Petrochemical Complex
(RAPID)
• 7 M MT Palm Oil Refineries
• 7 Oleochemicals Plant
The first plant in the world that produces PDO (1,3 Propanediol) from crude glycerin
Commercial bio-based chemical facility
East Coast Economic Region (all feedstock is located within 100 km radius)
• 2 BioIndustrial Parks
• 4.5M MT Dry Weight Biomass
• 2 Major Petrochemical
Complexes
• 2.8 M MTCrude Palm Oil
• 1.8 M MT Palm Oil Refineries
World’s first bio-methionine plant and Asia's first thiochemical platform
First commercial bio-isobutanol plant in Asia
FUTURE
EXPANSIO
N PLAN
BioIndustrial Clustering: The Partnership
Strategy
Case Study #1: Kertih BioPolymer Park
1.5 0.7
0.5 2.7
35 40 45 TOTAL
(million dry tonnes)
(USD/tonne – delivered)
10-25 km 26-40 km 40-50 km
BIOMASS AVAILABLE WITHIN
50 KM RADIUS vs PRICE PER DRY
TONNE
BioIndustrial Clustering: The Partnership
Strategy
Case Study #1: Kertih BioPolymer Park
47,000 Ha
Forest
Plantation
Biomass
Center
1 million MT
Storage
Capacity
300,000 MT
Sugars
350 MT Boiler
BioMethionine
BioIsobutanol
BioIndustrial Clustering: The Partnership
Strategy
Case Study #1: Kertih BioPolymer Park
30,000 MT
Oleic Acid
Ozone plant
30,000 MT
30,000 MT Pelargonic Acid
Azelaic Acid
150 MT Boiler
40,000 MT
BioPU
10,000 MT
BioLubricant
East Malaysia *POIC Lahad Datu* (all feedstock is located within 100 km radius)
• 1 BioIndustrial Parks
• 21M MT Dry Weight Biomass
• 1 Major Petrochemical
Complexes
• 5.84 M MT Crude Palm Oils
• 4.40 M MT Palm Oil Refineries
BioIndustrial Clustering: The Partnership
Strategy
Case Study #2: POIC Lahad Datu
0.4
2.4
2.2 5.0
40 50 60 TOTAL
(million dry tonnes)
(USD/tonne – delivered)
10-25 km 26-40 km 40-50 km
POIC LAHAD DATU
BIOMASS AVAILABLE WITHIN
50 KM RADIUS vs PRICE PER DRY TONNE
BioIndustrial Clustering: The Partnership
Strategy
Case Study #2: POIC Lahad Datu
Consortium of Oil Palm Millers
JV Clusters Biomass Collection
Center 1 million MT
Sugar Facility JV Oil Palm Millers
& Tech Provider
Xylose
Hemi - Cellulose
Lignin
Partner 1 (Xylitol)
Partner 2 (Biochemicals)
Partner 3 (Paraxylene, BioOils)
Consortium of Oil Palm Millers
BioIndustrial Clustering: The Partnership
Strategy
Case Study #2: POIC Lahad Datu
Mill 1
120,000 MT
(20%)
Mill 2
240,000 MT
(40%)
Mill 3
240,000 MT
(40%)
Portfolio JV
600,000 MT
Portfolio JV
600,000 MT
100% Share
100,000 MT
Pellet
17% Share
100,000 MT
BioEthanol
Partner 1 Partner 2
CAPEX:
USD 10 mm
CAPEX:
USD 200 mm
The MY2GEN Initiative
A Public-Private Partnership pilot model to provide funding & financial assistance for converting biomass into sugar
Supply Industrial Sugar to Biorefinery Clusters
Priority to mills close to biorefinery
clusters
Retrofitting of the mills
Funding scheme as enabler
Other assistance
Biobased Economy Has International Dimension
Bi – Regional Bioeconomy
• To leverage on strengths and
establish priorities for bioeconomy
development
• To foster bi – regional Bioeconomy
Network to intensify cooperation and
coordinate efforts to meet
international responsibilities
DEVELOP A CLEAR ROADMAP FOR IMPLEMENTATION Alignment, execution, performance monitoring and regular strategic reviews are all necessary for success.
ENGRAIN SUSTAINABILITY IN PEOPLE'S MINDSET The mindset of sustainability and living off the land must first be a way of life – not easy; given that we always have 'enough' resources, there is hardly any incentive to be efficient.
ATTRACT AND DEVELOP TALENTS Quality supply of talent pool required; attracting global experts and leading biotech firms; providing a conducive environment for innovative research
ENGAGE THE PEOPLE AND KEY STAKEHOLDERS Public education and communication is necessary to seek buy in and also to overcome scepticism over novel bio-based products & technologies
FURTHER INVEST DOWNSTREAM Extract maximum value from our natural resources by making sustainable investments further downstream the value chain in new application areas
DEVELOP BIOTECHNOLOGY INNOVATION CLUSTERS & ENHANCE SYNERGY The biotechnology industry requires a diverse supporting ecosystem of interconnected companies, suppliers, service providers, research institutions and other related organizations located within geographic concentrations to promote effective collaboration.
FOSTER CROSS-INDUSTRY INTEGRATION Bio-based value chains cut across different sectors and require multi-industry collaboration to develop new applications closer to the needs of consumers
FOCUS ON COMMERCIALIZATION Thriving collaboration amongst the government, business entities and research initiatives must translate into increased numbers of successful commercialization of biotechnological innovations
Be Part of Our Unique & Structured Value
Chain
Agriculture (by) Products
Advanced Carbohydrates
Biochemicals
Biomaterials
Biofuels
Feedstock Biobased Products
Fine Chemicals
Bulk Chemicals
Bio - Processing
Malaysia Recognises Biotechnology As A
Strategic Industry to Drive Growth
NATIONAL BIOMASS STRATEGY Feedstock Infrastructure & Mobilization
NATIONAL BIOTECH POLICY Comprehensive Strategy & Ecosystem
Setup
National Biotechnology Policy (NBP)
Investment RM 6 billion
Employment 40,000
Annual Revenue
RM 20 billion
Contribution to GDP
2.5%
Investment RM 9 billion
Employment 80,000
Annual Revenue
RM 50 billion
Contribution to GDP
4.0%
Investment RM 15 billion
Employment 160,000
Annual Revenue
RM 100 billion
Contribution to GDP
5.0%