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Kuala Lumpur, May 8, 2012
EU-Asia Biomass Best Practices and Business Partnering Conference 2012
Presentation
Bio-Based Economy in the EU vis-à-vis Malaysia's Model for Bio-Economy Development
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This document shall be treated as confidential. It has been compiled for the exclusive, internal use by our client and is not complete without the underlying detail analyses and the oral presentation. It may not be passed on and/or may not be made available to third parties without prior written consent from Roland Berger Strategy Consultants. RBSC does not assume any responsibility for the completeness and accuracy of the statements made in this document.
© Roland Berger Strategy Consultants
Contents
Biomass presentation_FINAL.pptx
Bio-Based Economy in the EU
Malaysia's model for BBE development
Implications and opportunities
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3.
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Economy
SocietyEnvironment
Viable Equitable
Livable
Sustainable
1 BIO-BASED ECONOMY IN THE EU
Source: World Summit 2005, Roland Berger
Sustainability is about moving towards economic act ivities, which BALANCE environmental, economic and social requirem ents
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The emerging global view: Returning to "living off the land" is the only way to ensure human survival
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"Living off the land"
"Living off the land"
Population 9 - 10 billion
Population < 1 billion
"Age of hydrocarbons"
World population - from year 0 to year 3000 [in billions]
We are here
1 BIO-BASED ECONOMY IN THE EU
Source: UN world Population Prospects, Population Reference Bureau, BP, Roland Berger
CO2
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As a result, multiple BBE initiatives are already be ing launched globally
Pacific Ethanol(Cellulose ethanol)
BioGasol (Cellulose ethanol & gas)
Force(Cellulosic fibers & chemicals)
NExBTL Biorefinery(Veg oil & animal fat biodiesel)
Ghent Bio-energy Valley(Biofuels, gas and power)
Lignocellulosic Biorefiniery(Cellulose ethanol and chemicals)
Green Biorefinery (Chemicals, biofuels, gas and power)
Green Biorefinery(Chemicals, food, feed, biofuels, gas and power)
Green Biorefinery (Cellulose ethanol)
Mackay biorefinery(Cellulose ethanol)
Waste Biorefinery(Cellulose ethanol)
CHRISGAS
Large scale ethanol production
Forestry Biorefinery(Chemicals)
Green Biorefinery (Chemicals, biofuels, gas and power)
Microalgea Biorefiniery(Chemicals, feed, food)
Iogen (Cellulose ethanol)
Lignol(Cellulose ethanol)
Blue Fire(Cellulose ethanol)
Abengoa(Cellulose ethanol)
ICM(Cellulose ethanol)
Poet(Cellulose ethanol)
NewPage(Cellulose ethanol)
Alico(Cellulose ethanol)
Range fuels(Celluloseethanol)
NExBTL Biorefinery (world’s largest biorefinery)(veg oil & animal fat biodiesel)
DSM-Roquette (Chemicals)
Source: Wageningen University Research Center; International Energy Agency ;Department of Energy, Company websites
Global bio-based initiatives (selection, non-exhaustive)Borregaard(Cellulose ethanol & specialties)
BioHub (Chemicals)
Braskem(biopolymers)
VTT/Kemira(Biomass R&D center)
Dedini/Novozymes(Cellulose ethanol)
1 BIO-BASED ECONOMY IN THE EU
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The Dutch national approach is built around the ide a of maximizing all relevant value chain opportunities
1 BIO-BASED ECONOMY IN THE EU
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Algae
Primary residuals (road grass, wood trimmings, …)
Sustainable available (parts) of crops/plants
(Thermo) chemical conversion
Specialty chemicals
PRODUCE BIOMASS CONVERT BIOMASS PRODUCE BIO-BASED PR ODUCTS
Power
Biochemical conversion
Heat
Food & feed
Source: Dutch Government vision on Bio-Based Economy, Roland Berger
(Base)chemicals & materials
Fuels
Waste
Secondary residuals (beet pulp, beer brush)
Tertiary residuals (animal fat, dung, VFG)
Dutch concept of the Bio-Based Economy
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Therefore, a focused national development program w as set up in 2008 – To achieve an integrated BBE within ten years
2008 1 – 4 years
Development of Bio-Based
Economy
Realization of a Bio-Based Economy (Netherlands)
Separated initiatives
PRODUCE BIOMASS
CONVERT BIOMASS
PRODUCE BIO-PRODUCTS
Aligned set of initiativesPRODUCE BIOMASS
CONVERT BIOMASS
PRODUCE BIO-PRODUCTS
4 – 10 years
PRODUCE BIOMASS
CONVERT BIOMASS
PRODUCE BIO-PRODUCTS
Continue successful existing initiatives
Initiate missing building blocks
Integrated Bio-Based Economy network
1 BIO-BASED ECONOMY IN THE EU
Source: Dutch Government vision on Bio-Based Economy, Roland Berger
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In the Dutch economic development strategy, BBE is considered as a cross cutting activity, not a stand-alone sector
Priority sectors Netherlands
Source: Innovation contracts top sectors
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BBE Link
Agriculture & Food
Chemicals
Creative Industry
Energy
High-tech systems
Life Sciences & Health
Logistics
Horticulture
Water
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Selection of key challenges
10 Head offices
Higher product efficiencies, higher value added products
Biobased materials, improved process technology
Cooperation and focus on gaming/fashion/architecture
Green gas, smart grids, energy efficiency, bioenergy
Semiconductor, health care, nanotechnology, photonics
Homecare, specialized nutrition, pharmacotherapy
Open ICT platform, cooperation seaports, service logistics
Food security, cooperation, IP alignment, fiscal measures
Clean/smart vessels, eco-engineering, water safety
Fiscal measures, human capital, infrastructure
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The Netherlands intends to be the main bio-hub in E urope given its geography, strong agro, chemical and logistics sect ors
PRODUCE BIOMASS CONVERT BIOMASS
STRONG AGROSECTOR STRONG LOGISTICS SECTORSTRONG CHEMICAL SECTOR
UNIQUE GEOGRAPHICAL POSITION
WORLD CLASS KNOWLEDGE INSTITUTES
• Imported through port of Rotterdam, other ports, rail and rivers
• Conversion to chemicals, food, fuels, power & heat
• Bio-based products
• Export to Europe
• Sustainable biomass production , both local and overseas
• Pretreatment near source to decrease transport unit cost
PRODUCE BIO-BASED PRODUCTS
… and many others
1 BIO-BASED ECONOMY IN THE EU
Source: Dutch Government vision on Bio-Based Economy
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The Dutch BBE program is already bearing fruit, bot h in terms of knowledge and commercial developments
Selection of program results (industrial biotech)
Biobased economy
in the Netherlands
Biomethanol from glycerine
Biofoam and PLA prod.
Furanics and PEF production
Bioplastics producer
Thermoform biopolymers
Biobased polymers
Biopolymer optical fibre
Source: Innovation contract Biobased economy; Company websites
BE-BASIC
Biosolar
Bio Performance Materials
Dutch Polymer Institute
CatchBIO (catalysis)
Kluyver Center of Genomics
Top Institute Food & Nutrition
Inst. for Sustainable Process Technology
Carbohydrate Competence Center
WETSUS (water separation)
Bioprocess Pilot Facility
Tripartite PPP consortia Commercial products
1 BIO-BASED ECONOMY IN THE EU
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Bio-economy Initiative Malaysia (BIM)
In Malaysia, there are now several national policie s and plans that touch on the subject of Bio-Based Economy
2005 2009
2010 2012
2 MALAYSIA'S MODEL FOR BIO-ECONOMY DEVELOPMENT
Source: Various Malaysian Government sources, Sustainable Energy Development Authority AIM, BiotechCorp, press releases
National Green Tech. Policy
Tenth Malaysia Plan (10MP)
Economic Transformation Plan
1MalaysiaBiomass Alternative Strategy (1MBAS) Initiative
Renewable Energy Act
National Biomass Strategy 2020
• Basis for pooling & coordinating efforts
• Wide-ranging
• Many actors
• Government is planning to roll-out a bio-economy roadmap this year
National policies and plans
National Biotechnology Policy
2011
NON-EXHAUSTIVE
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YAB Prime Minister has recently announced the conso lidation and refining of the bio-economy initiatives under BIM
BIM context, scope and objectives
Bio-Economy Initiative Malaysia (BIM)
• Includes ALL sectors that produce, manage & utilize biological resources
• Special focus on 2 areas:
– Renewable resources
– Locally developed technologies
• Multiple biotechnology initiatives have been launched by Government and private sector
• Coordination at national level of all these initiatives is needed
• Encourage full participation of private sector
• Long term benefits to Malaysia
Source: BiotechCorp (as of Dec 2011)
Focus areas and projects are not exhaustive and must be revisited and prioritized to meet overall BIM objectives
Genomics
Extracts Biofeed
Biocontrol
Biofertlizer Biosimilar
Other focus areas
Industrial biotechnology
Projects Projects Projects
Rationale Rationale Rationale
Projects
Rationale
2 MALAYSIA'S MODEL FOR BIO-ECONOMY DEVELOPMENT
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The ongoing BIM project is currently identifying, s electing and detailing out the final key priority initiatives
Source: BIM Labs, Roland Berger
2 MALAYSIA'S MODEL FOR BIO-ECONOMY DEVELOPMENT
BIM Workshop
EPP 1
EPP 2
EPP 3
EPP 4
EPP x
EPP y
• Structured by focus areas & by sector
Lab 1
Lab 2
Lab 3
Lab 4
• Abt 3 EPPs / Lab• Abt 1-3 trigger project per EPP• 25-30 participants / Lab• Syndication with other relevant
parties and stakeholders
1. For each EPP:• Details
• Requirements:– Investments– Employment– Technical– Research– Commercial– Regulatory– PPPs
• Action plan• Owners, KPIs• GNI / other impacts
2. Overall BIM report3. Presentations
• 300 participants• Set priorities
• Select main EPPs
PHASE 1 – Workshop, 1 week PHASE 2 – Labs, 6 weeks PHASE 3 – Reports, 3 weeks
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The ongoing BIM Labs are currently identifying, sel ecting and detailing out priority initiatives
Source: BIM Labs, Roland Berger
2 MALAYSIA'S MODEL FOR BIO-ECONOMY DEVELOPMENT
BIM Workshop
EPP 1
EPP 2
EPP 3
EPP 4
EPP x
EPP y
• Structured by focus areas & by sector
Lab 1
Lab 2
Lab 3
Lab 4
• Abt 3 EPPs / Lab• Abt 1-3 trigger project per EPP• 25-30 participants / Lab• Syndication with other relevant
parties and stakeholders
1. For each EPP:
• Details
• Requirements:– Investments– Employment– Technical, Research– Commercial– Regulatory– PPPs
• Action plan
• Owners, KPIs
• GNI / other impacts
2. Overall BIM report
3. Presentations
• 300 participants
• Set priorities
• Select main EPPs
PHASE 1 – Workshop, 1 week PHASE 2 – Labs, 6 weeks PHASE 3 – Reports, 3 weeks
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In Malaysia, the BBE can grow through "cascading", fully utilizing biomass via co-production and value-chain integrati on
15Source: Innovation agenda for the BBE, Roland Berger
Bio-Based Economy in Malaysia
2 MALAYSIA'S MODEL FOR BIO-ECONOMY DEVELOPMENT
PRODUCE BIOMASS CONVERT PRODUCE END PRODUCTS
Algae
Crops and plants
(Thermo)chemical conversion
Biologicalconversion
Tertiary residuals (manure, solid waste-municipal)
Secondaryresiduals (food processing)
Primary residuals (palm oil waste, wood chips etc.)
Resi-duals
Pre-treat-ment
Cascading• Extracting the
highest possible value from biomass
• Increasing efficiency of the entire chain via integration (co-production, refineries)
• Eliminating waste via valuable use of degraded materials (recycling and, ultimately, combustion)
High Added ValueSpecialty
chemicals
Base chemicals
Fuel
Power, gas & heat
Food-feed
Packaging, fertilizer
Pharma-ceuticals
IN ABUNDANCE INFANCY STAGE SMALL
High Volume
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Conversion of biomass to chemicals via biorefinery
As an example, the BBE approach can unlock more ener gy efficient conversion routes than possible via the petrochemic al route
VIA BIOREFINERY
Enthalpy
High
Low
Chemicals
CxHzN
CxHy
CxHzO
Naphtha CxHy
Biomass
Amine
Lignin
Oil / fat
Protein
Carbonhydrate
CxHzOy(OCHz)y
CxHyOz
CxHzOyNSv
CxHzOy
CxHzN
Direct fractionation
High energy intensity requires large scale to be economically viable
Low energy intensity offers opportunities for both economically viable large and small
scale production
PETROCHEMICAL WAY VIA BIOREFINERYCHEMICAL & MATERIALS
Source: Wageningen University Research Center
IMPLICATIONS AND OPPORTUNITIES3
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The way forward: Malaysia's stated target of 40% C O2 reduction by 2020 (vs. 2005) will require more far-reaching poli cy changes
1. Big, fast results - Focus on 'big" tickets, in relation to CO2 emissions/absorption
2. BBE Roadmap - Focus on biomass resources, value chain opportunities and economics -rather than technology (acquisition) considerations
3. Renewable Energy Act - Revamp, focusing on much higher annual renewable targets (biomass, hydro, ..), in collaboration with the independent power producers and TNB
4. Biomass utilization - Among all competing potential downstream users of biomass, carefully select projects that generate highest GNI contributions and are fully supported/funded by committed private sector investors
5. Forestry management - (Re-)vitalize forest plantation strategies and programs
6. Agricultural strategies - Promote production systems with higher CO2 absorption rates per m2 (eg. greenhouses)
Some suggestions
Source: Roland Berger
IMPLICATIONS AND OPPORTUNITIES3
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Creativestrategies that work!
Anthonie Versluis, Managing Partner MalaysiaRoland Berger Strategy Consultants Sdn Bhd (Co. no: 949134-W)Level 39, Menara Standard Chartered, 30 Jalan Sultan Ismail50250 Kuala Lumpur, Malaysia : Tel: +603-2203-8600 [email protected]