BIOFUELS & BIOCHEMICALGROWING A SUSTAINABLE ECONOMY

CHART 2: TOTAL PRIMARY ENERGY SUPPLY OF BIOFUELS, MILLION LITRES, THAILAND, 2014 - 2017

Using non-food feedstock (2nd and 3rd generation)

Genetic modification to increase yield of non-food energy crops

Advanced biofuel conversion techniques

Plantation techniques of non-food energy crops to improve productivity and decrease land use

Increasing power generation efficiency

Biofuels Biochemical

Biofuels and biochemical industries are set to see increasing growth as world leaders guide economies to be more sustainable to strengthen energy security and reduce reliance on fossil fuels.

BIOFUELS & BIOCHEMICAL:GROWING A SUSTAINABLE ECONOMY

BiofuelsTypes of renewable fuel or energy

that is produced from biomass, or plant and animal substances.

Types of renewable fuel or energy that is produced from biomass,

or plant and animal substances.

BiochemicalBy-products from bioprocesses, such as fermentation or scarification, on biomass.

By-products from bioprocesses, such as fermentation or scarification, on biomass.

Measures to control global warming and other environmental issues caused by current societal norms have spurred innovation in bioenergy and, sustainable process and systems

Measures to control global warming and other environmental issues caused by current societal norms have spurred innovation in bioenergy and, sustainable process and systems

Using non-food feedstock (2nd and 3rd generation)

Genetic modification to increase yield of non-food energy crops

Advanced biofuel conversion techniques

Plantation techniques of non-food energy crops to improve productivity and decrease land use

Increasing power generation efficiency

TRENDS IN THE BIOFUEL AND BIOCHEMICAL INDUSTRY, GLOBALTRENDS IN THE BIOFUEL AND BIOCHEMICAL INDUSTRY, GLOBAL

CHART 1: GLOBAL BIOFUEL CONSUMPTION MARKET VOLUME, MILLION BARREL, 2017 – 2022F

CHART 2: TOTAL PRIMARY ENERGY SUPPLY OF BIOFUELS, MILLION LITRES, THAILAND, 2014 - 2017MAJOR INNOVATIONS IN BIOFUEL AND BIOCHEMICAL INDUSTRY, GLOBALMAJOR INNOVATIONS IN BIOFUEL AND BIOCHEMICAL INDUSTRY, GLOBAL

Creating bio-based circular economies to minimise wastage and maximise value of raw materials

Alternative fuel sources that is sustainable and less harmful to the environment

International goals and awareness to reduce greenhouse gases

Reduce plastic waste and improve waste management

Source: Frost & Sullivan Analysis (2018) Source: Frost & Sullivan Analysis (2018) 11

BiodieselBioethanolTotal

CHART 2: TOTAL PRIMARY ENERGY SUPPLY OF BIOFUELS, MILLION LITRES, THAILAND, 2014 - 2017

KEY APPLICATIONS OF BIOFUELS & BIOCHEMICAL

Biofuel Biochemical

Transportation• Jet fuel• Fuels for road vehicles

Bioplastics, substitute to petroleum based plastics used in various consumer goods such as automotive vehicles, electronics and packaging

Active pharmaceutical ingredient for dialysis solutions

Succinic acid is used to regulate pH in the food & beverage industry

Lactic acid is an effective but low-corrosive scale remover

Power Generation• Bio heat in the form

of wood combustion• Coal/natural gas

substitute in electricity generation

TRENDS IN THE BIOFUEL AND BIOCHEMICAL INDUSTRY, GLOBALTRENDS IN THE BIOFUEL AND BIOCHEMICAL INDUSTRY, GLOBAL

CHART 1: GLOBAL BIOFUEL CONSUMPTION MARKET VOLUME, MILLION BARREL, 2017 – 2022F

CHART 2: TOTAL PRIMARY ENERGY SUPPLY OF BIOFUELS, MILLION LITRES, THAILAND, 2014 - 2017MAJOR INNOVATIONS IN BIOFUEL AND BIOCHEMICAL INDUSTRY, GLOBALMAJOR INNOVATIONS IN BIOFUEL AND BIOCHEMICAL INDUSTRY, GLOBAL

Source: Department of Alternative Energy Development and Efficiency (2018)

Source: MarketLine (2018)

2,309

914.2

945.3954.6

968.1 970.1 973.8

1,164

1,145

2,454

1,240

1,214

2,564

1,233

1,331

2,819

1,396

1,423

2014 2015 2016 2017

2017 2018F 2019F 2020F 2021F 2022F

ScaleRemover

21 2

BIOFUELS & BIOPLASTIC VALUE CHAIN ANALYSIS, THAILAND

BIOFUELS VALUE CHAIN

BIOPLASTIC (AS A PROXY FOR BIO-CHEMICALS) VALUE CHAIN

• Sugarcane• Cassava• Palm

• Sugarcane• Cassava

• Lactic acid• Citric acid

• Esters• Epoxy

• Solid plastic to be shaped

• Films• Bottles• Straws

• Plastic Users

• Sugar• Tapioca starch• Crude palm oil

• Ethanol• Biodiesel

(B100, Fatty Acid Methyl Ester)

• Gasohol• Biodiesel Fuel

• Motor Vehicles• Fuel Stations

AGRICULTURAL FEEDSTOCK FERMENTATION BIOFUEL BIOFUEL

PRODUCTS END USERS

AGRICULTURAL FEEDSTOCK BIO-MONOMER BIOPLASTIC

RESINBIOPLASTIC COMPOUND

BIOPLASTIC PRODUCTS END USERS

• As Thailand strives to become a high income nation, its approach to the bio-industry is to value add on existing products and commodities that Thailand is already a global leader in terms of production quantities

• For example, the value added from processing cassava to ethanol is two times of selling cassava as a stand-alone agricultural product

• Thailand is the world’s largest exporter of cassava (Tapioca starch) and 2nd largest exporter of sugar from sugarcane, both of which are highly efficient agricultural feedstock

• From sourcing of raw materials to the final stage of processing into gasohol and biodiesel, the value supply chain of the Thai biofuel industry is robust, with domestically available feedstocks and markets

• As a result, Thailand has the potential to step up as the ASEAN manufacturing hub as the country is ready with a full supply chain of biofuels & biochemical production ranging from upstream to downstream industries

Source: The Office of Agricultural Economics and the Ministry of Energy (2016)

Source: SCEIBC (2016)

x2

EPOXYLACTIC

ESTER

฿ ฿

฿

1st 2nd

33

THAI GOVERNMENT INITIATIVES/INCENTIVES FOR BIOFUELS & BIOCHEMICAL

FOREIGN INVESTMENT SPOTLIGHT

In January 2017, a bio-economy development plan to increase private sector investment in the industry was launched by the government and private sector under the Pracha Rat public-private collaborative scheme.

Together with Thailand 4.0, this has attracted foreign companies to start plans for manufacturing plants in the EEC.

• Investments within the bioeconomy is deemed “privileged”

• No import duty on raw or essential materials and machinery that would be used in manufacturing products meant for export

• Tax exemptions minimum of 5 years

Overview: Total Corbion PLA, a 50/50 joint venture between Total and Corbion, has started its PLA (Poly Lactic Acid) plastic pilot plant in Rayong in 2017. Corbion is a Dutch food and biochemicals company headquartered in Amsterdam, while Total is a French multinational integrated oil and gas company.

Results: • Produces 1kT/year of PLA plastic• Expanded Lactide plant’s output to 100kT/year

Targets: • Complete construction of a 75kT/year PLA

polymerization plant Deliver its first batch of PLA, in commercial quantities, in the 2nd half of 2018

• Produce a wide array of PLA neat resins to cater to various markets from packaging to consumer goods, fibers and automotive

• Easing current regulations that limit the use of food crops in producing biofuel

• In 2007, allocated 120 million USD to biotechnology research

• Launched a “bio-economy” scheme in early 2017, hoping to bring in 400 billion THB as investment

• Ease of obtaining permit for expatriates

• Allowed to own land• Allowed to take or send foreign

currency out of Thailand

Finance

Regulations

R&D

Non-tax incentives

TOTAL CORBION PLA ANNOUNCES SUCCESSFUL START-UP OF PILOT PLANT IN RAYONG, THAILAND

BIO

1kT/yr.1kT/yr.PLAPLA

33 4

B I O E X P O

GROWTH OPPORTUNITIES FOR THAILAND MICE STAKEHOLDERS

Thailand has organized many small scale events on biofuel and biochemical industry, most of which have been activities regarding innovation and technology. The Kingdom, however, aims to organise larger events with a wider scope of activities such as technical conferences, product exhibitions, and business meetings

and networking.

• International Companies from countries such as Netherlands, Germany, Switzerland etc. where the industry and bioenergy conversion technologies are more developed might be looking to start production lines within Thailand’s borders for easier access to the raw materials

• Local universities or research think tanks may leverage their expertise in emerging fields such as Transesterification, and Hydro-treatment

• Showcase events are important for raw materials, fundamental processes and finished products

• Such events, if held regularly, would instil confidence in investors and foreign corporations from Europe and North America

• MICE stakeholders such as Associations should proactively reach out to Corporates (local & foreign) in Biofuel & Biochemical industry to establish partnerships between suppliers and manufacturers

• Professional Conference Organizers (PCO), and research entities must come together to organise events as a platform to share innovations and new strategies to ensure the products from the industry stay competitive with traditional substitutes

• Professional Event Organizers (PEO) and Venues in Thailand should look to bio refineries and biochemical manufactures to showcase their expertise and products to potential consumers and distributors through these MICE events

Given that the potential of biochemical and biofuels is cross-disciplinary, MICE stakeholders should look to inviting participants from various sectors and different value chains where biochemical and biofuels could aid

in their production lines to reduce greenhouse gasses and environmental harm.

Note:Transesterification refers to the process of extracting biodiesel through biochemical reaction with oil to produce ethanol.Hydro-treatment refers to the process of using hydrogen to alter acidity of plant substances, a pre-treatment process before refinement into biofuel

Business Meetings and Networking

Technical Conferences

Product Exhibitions

5

1

2

3

HOW THAILAND MICE STAKEHOLDERS LOOK TO COMPLIMENT THE SUPPLY CHAIN

Thailand has complete supply chains of both biofuels and biochemical within its borders. Although the biofuel supply chain is more developed compared to biochemical, where until recently there was no one in Thailand to consume lactic acid products. MICE stakeholders should look to pair local primary processors of crops to consumers, whether they are local start-ups or well established foreign companies who have the technical

know-hows, experience and expertise.

Bio-chemicals have a wide variety of applications. PEOs should look to bring together various industries thus broadening the potential market for bio-chemicals and pushing the economy to be more environmentally friendly

Thailand’s capability to produce biofuels is only matched by a few other nations. Inviting foreign corporate and industry leaders would allow MICE stakeholders to promote the quality and quantity of biofuel it is able to produce while attracting more foreign investment into the industry

The industry still has potential to grow, mature and optimise. PCOs should organise events to provide

a platform for the researches, entrepreneurs and innovators to share and exchange ideas in order

for the industry to compete with its petroleum based counterpart

One of the biggest contributors to biofuels and bioplastics industry is the cost associated with transporting the raw

materials/biomass. MICE organisers such as PCOs should collaborate with research entities who have studied cost optimisation strategies to conduct conferences with all

parties along the supply chain in hopes of reducing the price of bio-based products to make them competitive against

their petroleum based counterparts.

Domestic events should also be organised in Eastern provinces such as Chonburi and Rayong – which has been

identified by BOI as eco-friendly petrochemicals and chemical product cluster – to raise public awareness and

stimulate local consumption of bio-based products, eventually increasing demand.

TOP 3 TAKEAWAYS FOR MICE STAKEHOLDERS IN THAILAND

6

© 2018 Thailand Convention & Exhibition Bureau. All rights reserved.

UPCOMING BIOFUEL AND BIOCHEMICAL MICE EVENTS IN THAILAND AND APAC

October 2018

Sugarindo2018Surabaya, Indonesia

4th edition of SugarTech Indonesia 2018

The 21st International Conference on Biomass, Bioenergy, Biofuels and

Bio-products

Bioenergy Strong 2018 Conference Program

The 15th South East Asia’s Renewable Energy Technology

Exhibition and Conference

30th Annual Meeting of the Thai Society for Biotechnology and International Conference

Indo Renergy Surabaya

ICBBBB2019Singapore

January 2019

October 2018

BIOENERGY STRONG 2018Queensland, Australia

RE2019Bangkok, Thailand

June 2019

November 2018

TSB2018Bangkok, Thailand

INDORENERGYSurabaya, Indonesia

June 2019

UPCOMING BIOFUEL AND BIOCHEMICAL MICE EVENTS IN THAILAND AND APAC