A Regional Approach to a Global Biobased Economy Malaysia s Experience 10th Annual World Congress on Industrial Biotechnology 17 June 2013 Montreal, Canada
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 CO 2 Emission
The World is in Transition to a Bio Based Economy Viable ENVIRON- MENT ECONOMY SUSTAINABLE Livable Equitable SOCIETY 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 Thailand Well Positioned to be a Global Bioplastics Hub PTT - Mitsubishi Chemical Co. to make bio-based polybutylene succinate in Thailand Vietnam Dong Quat Bioethanol Plant. Capacity of 100 mil litres per year Indonesia Singapore 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 Agri-biotech cluster PERLIS KEDAH Melaka Biopharma Park IRDA : ISKANDAR MALAYSIA The first plant in the world that produces PDO (1,3 Propanediol) from crude glycerin NCER : NORTHERN CORRIDOR ECONOMIC REGION KELANTAN TERENGGANU PAHANG JOHOR ECER : EAST CORRIDOR ECONOMIC REGION Kerteh Bio-Polymer Park Tanjung Manis Mukah Commercial bio-based World s first biomethionine plant and chemical facility Asia's first thiochemical platform SARAWAK SDC : SABAH DEVELOPMENT CORRIDOR Biorefinery cluster First commercial bio-isobutanol plant in Asia SABAH SCORE: SARAWAK CORRIDOR OF RENEWABLE ENERGY
Bioeconomy Transformation Programme Enriching The Nation, Securing The Future Foster full participation of the private sector through monetizable projects GNI in 2020 Job Opportunities By 2020 Investment by 2020 Ensure coordination, consistency and sustainability of all national biotechnology policies in parallel with the ETP Reap long term benefits for Malaysia USD 1.2 Billion 16,300 Jobs USD 3.33 Billion Contribute to the country's economy, welfare, productivity, health and environment
BioIndustrial Projects Under Bioeconomy Transformation Programme USD 0.5 BILLION $ GROSS NATIONAL INCOME 7,300 EMPLOYMENT
The Ecosystem Setup SUSTAINABLE FEEDSTOCK DEVELOPMENT INCENTIVES & FINANCIAL INFRASTRUCTURE WORLD CLASS FACILITIES & INFRASTRUCTURE
Feedstock Development Dedicated and Sustainable Feedstock Supply Harnessing on Malaysia s Agricultural Strength for Renewable Feedstock 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
To address competitiveness, we introduce the BIOINDUSTRIAL CLUSTERING STRATEGY
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
BioIndustrial Clustering: The Partnership Strategy Case Study #1: Kertih BioPolymer Park BIOMASS AVAILABLE WITHIN 50 KM RADIUS vs PRICE PER DRY TONNE (million dry tonnes) FUTURE EXPANSIO N PLAN 1.5 0.7 0.5 2.7 35 40 45 TOTAL (USD/tonne delivered) 10-25 km 26-40 km 40-50 km
BioIndustrial Clustering: The Partnership Strategy Case Study #1: Kertih BioPolymer Park 300,000 MT Sugars BioMethionine 47,000 Ha Forest Plantation Biomass Center 1 million MT Storage Capacity 350 MT Boiler BioIsobutanol
BioIndustrial Clustering: The Partnership Strategy Case Study #1: Kertih BioPolymer Park 30,000 MT Pelargonic Acid Azelaic Acid 40,000 MT BioPU 30,000 MT Oleic Acid Ozone plant 30,000 MT 150 MT Boiler 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 BIOMASS AVAILABLE WITHIN 50 KM RADIUS vs PRICE PER DRY TONNE 0.4 2.4 (million dry tonnes) 2.2 5.0 40 50 60 TOTAL (USD/tonne delivered) 10-25 km 26-40 km 40-50 km POIC LAHAD DATU
BioIndustrial Clustering: The Partnership Strategy Case Study #2: POIC Lahad Datu JV Clusters Biomass Collection Center 1 million MT Xylose Hemi - Cellulose Lignin Partner 1 (Xylitol) Partner 2 (Biochemicals) Consortium of Oil Palm Millers Sugar Facility JV Oil Palm Millers & Tech Provider 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 Partner 1 Partner 2 Portfolio JV 600,000 MT 100% Share 100,000 MT Pellet CAPEX: USD 10 mm 17% Share 100,000 MT BioEthanol CAPEX: USD 200 mm
The MY2GEN Initiative A Public-Private Partnership pilot model to provide funding & financial assistance for converting biomass into sugar
Retrofitting of the mills Funding scheme as enabler Other assistance Priority to mills close to biorefinery clusters Supply Industrial Sugar to Biorefinery Clusters
Biobased Economy Has International Dimension Bi Regional Bioeconomy To foster bi regional Bioeconomy Network to intensify cooperation and coordinate efforts to meet international responsibilities To leverage on strengths and establish priorities for bioeconomy development
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 Biochemicals Fine Chemicals Agriculture (by) Products Advanced Carbohydrates Bio - Processing Biomaterials Feedstock Biofuels Biobased Products Bulk Chemicals
Thank You Dr. Mohd Nazlee Kamal Chief Executive Officer BiotechCorp nazlee.kamal@biotechcorp.com.my
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 Contribution to GDP RM 20 billion 2.5% Investment RM 9 billion Employment 80,000 Annual Revenue Contribution to GDP RM 50 billion 4.0% Investment RM 15 billion Employment 160,000 Annual Revenue Contribution to GDP RM 100 billion 5.0%