MALAYSIA’S FEEDSTOCK TRANSITION: DOMINANCE OF OIL TO … · 2014-03-26 · BIOECONOMY MALAYSIA...

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DOMINANCE OF OIL MALAYSIA’S FEEDSTOCK TRANSITION:

TO BIOBASE Zainal Azman Abu Kasim

Senior Vice President, BioIndustrial

Bonjour, My name is Zainal

&, I’m a proud Malaysian

Most People RECOGNIZE MALAYSIA

As the Leading Producer OF OIL AND GAS

The World’s Largest OLEOCHEMICAL PRODUCER

1957: INDEPENDENCE DAY One of the Best Destinations FOR VACATION

We want to remain ECONOMICALLY COMPETITIVE but

FOCUSED!

We introduced the

Our GDP today (2012)

To Ensure

growth

CONTINUOUS SUSTAINABLE

BIOECONOMY MALAYSIA The New Economic Icon For Malaysia

• 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

NATIONAL BIOMASS STRATEGY Feedstock Infrastructure & Mobilization

THE BIOECONOMY

MALAYSIA

NATIONAL BIOTECH POLICY Comprehensive Strategy & Ecosystem Setup

THE ECOSYSTEM

SETUP

SUSTAINABLE FEEDSTOCK DEVELOPMENT

INCENTIVES & FINANCIAL INFRASTRUCTURE

WORLD CLASS FACILITIES & INFRASTRUCTURE

THE BIOECONOMY

MALAYSIA

BIOINDUSTRIAL PROJECTS

GROSS NATIONAL INCOME

USD 0.5 BILLION $

EMPLOYMENT

7,300

FROM 2012 - 13

However, BIOECONOMY

without sustainable & COMPETITIVE FEEDSTOCK

WILL NOT SUCCEED

STRATEGY

BIOINDUSTRIAL CLUSTERING

THE ECOSYSTEM

DEVELOPMENT

Malaysia is divided into 5 ECONOMIC REGIONS

with different characteristics

Nothern Corridor

Paddy hinterland

of Malaysia

East Coast Region

Malaysia’s forest plantations

Sourthern Corridor

Oleochemicals Center

Sabah

Malaysia’s Largest

Oil Palm Estate

ECER NCIA

IRDA

SCORE

POIC

BIOINDUSTRIAL CLUSTERINGS

CHARACTERISTICS

Proximity of Feedstock & Facility Cost of transportation will kill the economics of feedstock if

transporting more than 150 km 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 Centre

Hence, enabling us to STRUCTURALLY MOBILIZED 130 million MT of biomass & cellulosic sugars

BIOINDUSTRIAL CLUSTERINGS

5 Economic Regions (BioIndustrial Clusters)

4.5M MT Dry Weight Biomass

2 BioIndustrial Parks

2 Major Petrochemical Complexes

2.8 M MT Crude Palm Oil

1.8 M MT Palm Oil Refineries

East Coast Economic Region (all feedstock is located within 100 km radius)

5 Economic Regions (BioIndustrial Clusters)

10.4M MT Dry Weight Biomass

1 BioIndustrial Park

1 Major Petrochemical Complex (RAPID)

7 M MT Palm Oil Refineries

Southern Corridor *Bio-Xcell* (all feedstock is located within 100 km radius)

7 Oleochemicals Plant

5 Economic Regions (BioIndustrial Clusters)

2 M MT Dry Weight Biomass

1 BioIndustrial Park

1 Major Petrochemical Complex

600,000 MT Palm Oil Refineries

Northern Corridor (all feedstock is located within 100 km radius)

3 Oleochemicals Plant

5 Economic Regions (BioIndustrial Clusters)

21 M MT Dry Weight Biomass

1 BioIndustrial Park

1 Major Petrochemical Complex

4.40 M MT Palm Oil Refineries

East Malaysia *POIC Lahad Datu* (all feedstock is located within 100 km radius)

5.84 M MT Crude Palm Oils

FEEDSTOCK DEVELOPMENT

Dedicated and Sustainable Feedstock Supply

Forest Plantation Dedicated and Sustainable FSE Certified

Forest Plantation

500,000 Hectares Various species, Acacia mangium, Leucaena

leucocephala, Albizia sp., Eucalyptus sp.

Oil Palm Biomass 30 – 50 million MT oil palm biomass

FEEDSTOCK DEVELOPMENT

Malaysia 2nd Generation BioIndustrial Feedstock Fund (MY2GEN)

PUBLIC-PRIVATE PARTNERSHIP

pilot model to provide

FUNDING & FINANCIAL ASSISTANCE

converting

BIOMASS INTO 200,000 MT SUGAR

MY2GEN FRAMEWORK

The MY2GEN framework will be a unique strategy to Malaysia

Provide a platform of partnership between the

petrochemicals and oil palm industry.

The integration of cellulosic sugar production by the oil palm millers into the existing activity is the first of

its kind in the world

MY2GEN initiative will encourage oil palm millers to venture into the production of cellulosic sugar.

This will, in turn, attracts foreign companies in the

high value biochemical industry to invest in Malaysia.

BIOINDUSTRIAL CLUSTERING

HOW DOES BIOINDUSTRIAL

CLUSTERING BENEFITS THE

INDUSTRY?

CASE STUDY #1

THE PARTNERSHIP

STRATEGY

0.4

2.4

2.2 5.0

BIOMASS AVAILABLE WITHIN 50 KM RADIUS vs PRICE PER DRY TONNE

40 50 60 TOTAL

(million dry tonnes)

(USD/tonne – delivered)

10-25 km 26-40 km 40-50 km

POIC LAHAD DATU

CASE STUDY #1

CONSORTIUM OF

JV CLUSTERS

OIL PALM MILLERS

BIOMASS COLLECTION CENTRE

1 MILLION MT

SUGAR FACILITY JV OIL PALM MILLERS

& TECH PROVIDER

XYLOSE

HEMI-

CELLULOSE

LIGNIN

CONSORTIUM OF

OIL PALM MILLERS

PARTNER 1 (XYLITOL)

PARTNER 2

(BIOCHEMICALS)

PARTNER 3 (PARAXYLENE, BIOOILS)

CASE STUDY #1

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

17% SHARE 100,000 MT BioEthanol

PARTNER 2 PARTNER 1

100% SHARE 100,000 MT

Pellet

CAPEX: USD 10 mm CAPEX: USD 200 mm

FUTURE

EXPANSIO

N PLAN

CASE STUDY #2

KERTIH BIOPOLYMER PARK

1.5 0.7

0.5 2.7

BIOMASS AVAILABLE WITHIN 50 KM RADIUS vs PRICE PER DRY TONNE

35 40 45 TOTAL

(million dry tonnes)

(USD/tonne – delivered)

10-25 km 26-40 km 40-50 km

THE PARTNERSHIP

STRATEGY

CASE STUDY #2

THE PARTNERSHIP

STRATEGY

47,000 Ha Forest Plantation

Biomass Centre 1 million MT

Storage Capacity 350 MT Boiler

300,000 MT Sugars BioMethionine

BioIsobutanol

Be part of our UNIQUE & STRUCTURED

VALUE CHAIN Fine Chemicals

Bulk Chemicals

Agriculture (by) Products

Advanced Carbohydrates

Biochemicals

Biomaterials

Biofuels

Feedstock Biobased Products

Bio-processing

You’re WELCOME To discuss with us

MEET US AT THE

DISCOVER MALAYSIA YOUR UNIQUE BIOTECHNOLOGY INVESTMENT DESTINATION

Thank You Zainal Azman Abu Kasim

Senior Vice President

azman.abukasim@biotechcorp.com.my

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