The Development of Palm Based Bio-refinery: A New Approach to The Bio-Carbon Economy

Transcription

1 The Development of Palm Based Bio-refinery: A New Approach to The Bio-Carbon Economy 13 May

2 Who is Sime Darby? A Diversified Multinational with Business in Key Growth Areas 5 Core Businesses Plantation Industrial Motors Property Energy & Utilities Operations in 23 countries with > 111,000 Employees Key Financials (US$ in billion) FY10/11 FY11/12 FY12/13 Revenue Profit Before Tax EPS (cents) Debt / Equity ratio Market capitalization of USD$17.5 billion as at 6 May

3 Value Proposition: Feedstocks-to-application possibilities Market Leading Positions in Plantations, Industrial and Consumer-based Business Plantation #1 Listed Oil Palm Plantation Company in terms of planted Area #1 Producer of Certified Sustainable Palm Oil #1 Company in the World to Fully Sequence, Assemble and Annotate the Oil Palm Genome Property #1 Community Developer in Malaysia in terms of land bank #1 Best Commercial Highraise Dev. In the Asia Pacific Region; Best developer & Villa Dev. In South East Asia Region Motors #3 BMW dealer in the world #3 Rolls Royce Dealer in the World #1 MINI Market Share across the world (MINI in HK) Industrial #3 Largest Caterpillar Dealer in the World in terms of units sold #1 Caterpillar Dealer in the Asia Pacific Region in terms of units sold Energy & Utilities #3 Most Efficient Port in Shandong Province, China 3

4 Finding sustainable economic applications for abundant feedstocks Plantation By Product Palm Oil Mill By Product Mesocarp fiber Palm Oil Mill Product Oil Palm Tree Fresh Fruit Bunch Empty Bunch Fruit Crude Palm Oil Crude Palm Kernel Oil Palm Oil Refinery Products 10% Oil Oil Palm Frond Palm Kernel Shell Palm Oil Refinery By Product 90% Biomass Palm Kernel Cake Oil Palm Trunk Palm Oil Mill Effluent Palm Fatty Acid Distillate Palm Oil Acid 4

5 Palm oil tree A living chemical factory with boundless opportunities Opportunities Increased productivity Renewable Feedstocks New Energy Crops Conversion Energy Crops Enhanced Yields Lower Inputs Feed Food Conversion technologies Fermentation Products Carbon sequestration Technology integration & adaption 5

6 Pursue a path of intelligent collaboration with strategic stakeholders Unlock availability & diversity of oil palm value-chain Goals Complete feedstock technology demand triumvirate Augment and synergize complementary R&D The Petroleum Boys The Agri Boys The Chem Boys The New Boys 6

7 Journey to commercialization: Short-term needs vs. Long-term needs Factors / Drivers Primary Secondary 1. Cost competitiveness 2. Secure supply of feedstock at a sufficient scale 3. Towards sustainability goals 4. Solutions are available to meet the needs 5. Increase demand for the products 6. Meet / exceed regulatory requirements 7. Improvement in product functionality 8. Non-food crops as feedstock 9. More flexibility in feedstock supply 10. Easily integrated into the production 7

8 Uncompromised attention to environmental sustainability A multi-stakeholder initiative that aims to promote the growth and use of sustainable palm oil. Members: environmental & social NGOs, nanks & investors, growers, processors, manufacturers & retailers of palm oil products. Sime Darby A founding member of the RSPO Represent the Malaysian Palm Oil Association on the RSPO Executive Board RSPO Principles & Criteria Commitment to transparency Compliance with applicable laws and regulations Commitment to long-term economic and financial viability Use of appropriate best practices by growers and millers Environmental responsibility and conservation of natural resources and biodiversity Responsible consideration of employees and of individuals and communities affected by growers and mills Responsible development of new plantings Commitment to continuous improvement in key areas of activity 8

9 Challenges and Actions Sustainability Fostering a sustainable supply to feed both existing and new value chains: Increase feedstock production by improving agriculture practices Mobilizing an increasing supply Technical Optimizing efficient processing through R&D and pilot biorefineries: Improve the primary conversion processes Support and develop more secondary conversion processes Business Developing innovative products and accelerating market-pull for bio based products: New materials and products Conversion and functionalization technologies New applications and market development 9

10 Thank You 10