DOMINANCE OF OIL TO BIOBASE

Transcription

1 MALAYSIA S FEEDSTOCK TRANSITION: DOMINANCE OF OIL TO BIOBASE Zainal Azman Abu Kasim Senior Vice President, BioIndustrial

2 Bonjour, My name is Zainal

3 &, I m a proud Malaysian

4 Most People RECOGNIZE MALAYSIA

5 As the Leading Producer OF OIL AND GAS

6 The World s Largest OLEOCHEMICAL PRODUCER

7 1957: One of the Best Destinations INDEPENDENCE DAY FOR VACATION

8 We want to remain ECONOMICALLY COMPETITIVE but FOCUSED!

9 We introduced the

10 Our GDP today (2012)

11 To Ensure CONTINUOUS SUSTAINABLE growth

12 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

13 THE BIOECONOMY MALAYSIA NATIONAL BIOMASS STRATEGY Feedstock Infrastructure & Mobilization NATIONAL BIOTECH POLICY Comprehensive Strategy & Ecosystem Setup

14 THE ECOSYSTEM SETUP SUSTAINABLE FEEDSTOCK DEVELOPMENT INCENTIVES & FINANCIAL INFRASTRUCTURE WORLD CLASS FACILITIES & INFRASTRUCTURE

15 THE BIOECONOMY MALAYSIA

16 BIOINDUSTRIAL PROJECTS FROM USD 0.5 BILLION $ GROSS NATIONAL INCOME 7,300 EMPLOYMENT

17 However, BIOECONOMY WILL NOT SUCCEED without sustainable & COMPETITIVE FEEDSTOCK

18 THE ECOSYSTEM DEVELOPMENT BIOINDUSTRIAL CLUSTERING STRATEGY

19 Malaysia is divided into 5 ECONOMIC REGIONS with different characteristics Nothern Corridor East Coast Region Sourthern Corridor Sabah Paddy hinterland of Malaysia Malaysia s forest plantations Oleochemicals Center Malaysia s Largest Oil Palm Estate

20 POIC NCIA ECER SCORE IRDA BIOINDUSTRIAL CLUSTERINGS

21 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

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

23 2 BioIndustrial Parks 4.5M MT Dry Weight Biomass 2 Major Petrochemical Complexes 2.8 M MT Crude Palm Oil 1.8 M MT Palm Oil Refineries 5 Economic Regions East Coast Economic Region (BioIndustrial (all feedstock is located Clusters) within 100 km radius) BIOINDUSTRIAL CLUSTERINGS

24 1 BioIndustrial Park 10.4M MT Dry Weight Biomass 1 Major Petrochemical Complex (RAPID) 7 M MT Palm Oil Refineries 7 Oleochemicals Plant 5 Economic Regions Southern Corridor *Bio-Xcell* (BioIndustrial (all feedstock is located Clusters) within 100 km radius)

25 5 Economic Regions Northern Corridor (BioIndustrial Clusters) (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

26 1 BioIndustrial Park 21 M MT Dry Weight Biomass 1 Major Petrochemical Complex 4.40 M MT Palm Oil Refineries 5.84 M MT Crude Palm Oils 5 Economic Regions East Malaysia *POIC Lahad Datu* (BioIndustrial Clusters) (all feedstock is located within 100 km radius)

27 FEEDSTOCK DEVELOPMENT 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 million MT oil palm biomass Dedicated and Sustainable Feedstock Supply

28 FEEDSTOCK DEVELOPMENT PUBLIC-PRIVATE PARTNERSHIP pilot model to provide FUNDING & FINANCIAL ASSISTANCE converting BIOMASS INTO 200,000 MT SUGAR Malaysia 2 nd Generation BioIndustrial Feedstock Fund (MY2GEN)

29 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.

30 HOW DOES BIOINDUSTRIAL CLUSTERING BENEFITS THE INDUSTRY? BIOINDUSTRIAL CLUSTERING

31 THE PARTNERSHIP STRATEGY POIC LAHAD DATU BIOMASS AVAILABLE WITHIN 50 KM RADIUS vs PRICE PER DRY TONNE (million dry tonnes) TOTAL (USD/tonne delivered) km km km CASE STUDY #1

32 CASE STUDY #1 JV CLUSTERS BIOMASS COLLECTION CENTRE 1 MILLION MT XYLOSE HEMI- CELLULOSE PARTNER 1 (XYLITOL) PARTNER 2 (BIOCHEMICALS) LIGNIN PARTNER 3 (PARAXYLENE, BIOOILS) CONSORTIUM OF OIL PALM MILLERS SUGAR FACILITY JV OIL PALM MILLERS & TECH PROVIDER CONSORTIUM OF OIL PALM MILLERS

33 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 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

34 KERTIH BIOPOLYMER PARK THE PARTNERSHIP STRATEGY BIOMASS AVAILABLE WITHIN 50 KM RADIUS vs PRICE PER DRY TONNE (million dry tonnes) FUTURE EXPANSIO N PLAN TOTAL (USD/tonne delivered) km km km CASE STUDY #2

35 THE PARTNERSHIP STRATEGY 300,000 MT Sugars BioMethionine 47,000 Ha Forest Plantation Biomass Centre 1 million MT Storage Capacity 350 MT Boiler BioIsobutanol CASE STUDY #2

36 Be part of our UNIQUE & STRUCTURED VALUE CHAIN Fine Chemicals Biochemicals Agriculture (by) Products Advanced Carbohydrates Bioprocessing Biomaterials Biofuels Feedstock Biobased Products Bulk Chemicals

37 You re WELCOME To discuss with us

38 MEET US AT THE

39 DISCOVER MALAYSIA YOUR UNIQUE BIOTECHNOLOGY INVESTMENT DESTINATION

40 Thank You Zainal Azman Abu Kasim Senior Vice President