Towards Environmental & Economic Sustainability in Malaysia via Biomass Industry

Transcription

1 M A L A Y S I A N B I O M A S S I N D U S T R Y C O N F E D E R A T I O N Towards Environmental & Economic Sustainability in Malaysia via Biomass Industry by TANG KOK MUN 13-FEB-2014

2 PRESENTATION CONTENTS Malaysian Biomass Industry Confederation Status of Biomass in Malaysia Challenges Benchmarking of Biomass Utilization Government Strategies, Policies & Actions Potential of Biomass to Biochar

3 Malaysian Biomass Industry Confederation MBIC is formed in 2012 as legacy of the EU-Malaysia Biomass Sustainable Production Initiative (biomass-sp.net), a development cooperation programme between the European Union (EU) and Malaysian Government ( ) Main objective of MBIC is to promote a growing and sustainable biomass industry in Malaysia as well as the ASEAN region MBIC seeks to represent the industry players in the biomass industry especially the small & medium companies Strive to achieve economic and environmental sustainability in Malaysia via adoption of Sustainable Consumption & Production principles MBIC website -

4 Malaysian Biomass Industry Confederation ACTIVITIES OF MBIC Membership Drive Annual Biomass Asia Conference (upcoming May 2014) Members Networking Session Dialogue with Government Agencies Information Session to Bankers & Investors Linkages with Universities & Technical Experts Overseas Promotion of Malaysian Biomass Industry

5 STATUS OF BIOMASS IN MALAYSIA Million Metric Tonnes (wet) (Empty Fruit Bunches)

6 STATUS OF BIOMASS IN MALAYSIA Oil Palm Fronds Oil Palm Trunks Fruit Bunches Palm Fruit Palm Fruits & Empty Fruit Bunches Palm Shell

7 STATUS OF BIOMASS IN MALAYSIA

8 STATUS OF BIOMASS IN MALAYSIA

9 STATUS OF BIOMASS IN MALAYSIA

10 STATUS OF BIOMASS IN MALAYSIA

11 STATUS OF BIOMASS IN MALAYSIA

12 CHALLENGES 1. Access to biomass feedstock at - volume & pricing Current agricultural practice return biomass waste to field No commodity market for biomass trading Remote locations of biomass sources - high cost of transportation Biomass owners not favorable to long-term supply contract due to rising demand & pricing of biomass

13 CHALLENGES 2. Access to financing for biomass ventures Biomass feedstock supply & pricing risks Local financiers not familiar with biomass industry Comparative high investment & long payback period for biomass ventures

14 CHALLENGES 3. Lack of support from domestic market Switch to sustainable production not complemented by sustainable consumption locally Most biomass products are for export market to meet demand for premium green products Sustainable market initiatives by government slow to be realized due to lack of commitment from government and businesses

15 CHALLENGES 4. Commercialisation of local technologies Gaps between R&D and commercialization - pilot or demo plant, lack of market-focused R&D, lack of multi-disciplinary approach to commercialisation Local market & financiers risk-averse to local technologies & products

16 CHALLENGES 5. Sustainability requirements & certifications Existing and future requirements on biomass from sustainable sources esp. contentious issues on exploitation of primary forests and peatland Lack of local standards & certifications in biomass feedstock and products Low awareness and slow adoption of carbon footprinting to influence business decisions on sustainability

17 CHALLENGES 6. Low-value utilization of biomass by local companies Existing biomass ventures mostly in production of commoditybased products e.g. fibers, compost & fuel pellets Lack of access technologies to create higher value from biomass feedstock e.g. eco-products, biochemical & polymers Lack of technical capacities of local companies esp. small and medium ones to adopt and apply high technologies in their ventures

18 BENCHMARKING OF BIOMASS UTILIZATION

19 GOVERNMENT STRATEGIES, POLICIES & ACTIONS

20 GOVERNMENT STRATEGIES, POLICIES & ACTIONS Feed-in-tariff for renewable energy generation

21 GOVERNMENT STRATEGIES, POLICIES & ACTIONS Feed-in-tariff for renewable energy generation Investment tax incentives for green ventures in Malaysia

22 GOVERNMENT STRATEGIES, POLICIES & ACTIONS Feed-in-tariff for renewable energy generation Investment tax incentives for green ventures in Malaysia Green technology financing scheme USD1 billion in subsidized loans

23 GOVERNMENT STRATEGIES, POLICIES & ACTIONS Feed-in-tariff for renewable energy generation Bio-conversion of biomass into high value chemicals & liquid fuels Investment tax incentives for green ventures in Malaysia Green technology financing scheme USD1 billion in subsidized loans

24 GOVERNMENT STRATEGIES, POLICIES & ACTIONS Feed-in-tariff for renewable energy generation Palm Oil Industry Biogas power generations National Biomass Strategy Biomass Industry Strategic Action Plan Bio-conversion of biomass into high value chemicals & liquid fuels Investment tax incentives for green ventures in Malaysia Green technology financing scheme USD1 billion in subsidized loans

25 GOVERNMENT STRATEGIES, POLICIES & ACTIONS Feed-in-tariff for renewable energy generation Generation of power to national electricity grid via biogas from effluent waste Palm Oil Industry Biogas power generations National Biomass Strategy Biomass Industry Strategic Action Plan Bio-conversion of biomass into high value chemicals & liquid fuels Investment tax incentives for green ventures in Malaysia Green technology financing scheme USD1 billion in subsidized loans

26 GOVERNMENT STRATEGIES, POLICIES & ACTIONS Feed-in-tariff for renewable energy generation Generation of power to national electricity grid via biogas from effluent waste Palm Oil Industry Biogas power generations National Biomass Strategy Biomass Industry Strategic Action Plan Bio-conversion of biomass into high value chemicals & liquid fuels Promote high value utilization of biomass by small & medium companies Investment tax incentives for green ventures in Malaysia Green technology financing scheme USD1 billion in subsidized loans

27 GOVERNMENT STRATEGIES, POLICIES & ACTIONS Feed-in-tariff for renewable energy generation Generation of power to national electricity grid via biogas from effluent waste Development of market players & technologies for biomass pellets & biochemicals Investment tax incentives for green ventures in Malaysia Palm Oil Industry Biogas power generations National Biomass Strategy Biomass Industry Strategic Action Plan Bio-conversion of biomass into high value chemicals & liquid fuels Promote high value utilization of biomass by small & medium companies Green technology financing scheme USD1 billion in subsidized loans

28 POTENTIAL OF BIOMASS TO BIOCHAR Agricultural practice to return carbon & nutrients back to field Traditional slash-and-burn Annual rice straw burning in paddy fields Mulching in oil palm plantation

29 POTENTIAL OF BIOMASS TO BIOCHAR BUSINESS & ENVIRONMENTAL MODEL CO 2 Carbon Sequestration SUSTAINABLE FORESTRY (Acacia) BIOCHAR PRODUCTION BioChar Energy EXPORT MARKET DOMESTIC MARKET

30 POTENTIAL OF BIOMASS TO BIOCHAR Conversion of biomass to biochar in Malaysia is relatively untapped opportunity Issues to be addressed 1. Market demand 2. Pricing 3. Specifications of biochar products 4. Sustainability requirements 5. Conversion technologies 6. Capital investment Technical & commercial viability

31 THANK YOU! Q&A

32 ABOUT THE SPEAKER Mr. Tang Kok Mun is an active member of the Malaysia Biomass Industry Confederation (MBIC), an industry association established in 2012 to advance the biomass industry in Malaysia. Previously, he has served as the Technical Consultant for the Biomass-SP project, a joint initiative between European Union and Malaysia to promote sustainable utilization of biomass resources in Malaysia. He is also involved in the drafting of a number of action plans along the theme of sustainable development agenda such as the recent Malaysia Biomass Industry Action Plan and the Solid Waste Management Plan in Malaysia. Mr. Tang runs a consultancy business in technology development and commercialization, carbon footprinting and management, as well as investment and financing advisory in technology-based ventures. Mr. Tang holds a degree in Chemical Engineering and an MBA in International Business from the University of Malaya. Contact : tang.rapid@gmail.com