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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
