Bioeconomy in the Context of Thailand

Morakot TanticharoenGBS 2018, Berlin

20 April 2018

Thailand – Facts and Figures

Population : 66 million

Total Labor Force : 38 million

Total Area: 514,000 Sq.km

Agricultural area: 47 %

GDP growth: 3.9% (2017)

http://www.indexmundi.com/thailand/gdp_composition_by_sector.html

http://www.nso.go.th

http://www.bot.or.th

Agriculture

Services

Industries

30%

52%

18%

Labor Force by Occupation (2017 est)

Agriculture

Services

Industries

8%

56%

36 %

GDP Composition by Sector (2017 est)

The world 11th largest agricultural and food exporter.

32.5 Billion USD

Our Commitments 17 Goals & 169 Targets adopted Sept 2015 in NY

Transforming Our World: The 2030 Agenda For Sustainable Development (SDG Goals)

2050

Thailand ratified the Paris Agreement @NYC on 21 Sept.2016 GHGs reduction: 20-25% BAU in 2030 (subject to adequate support)

Bioeconomy - the Next Generation of Agricultural based Economy

4

GDP contribution

Total value

Core value

GDP per capita in agri. sector

Employment

To knowledge-based value chainFrom resource-based agriculture

Agricultural based economy

CassavaSugarcane

RubberRice

Precision agriculture

Mechanization

Forecasting

Molecular breeding

Food for future

Biochemicals

Biofuels

Pharmaceuticals

Bioeconomy

7% of GDP1 ~8-11% of GDP2

~THB 950 bn total value1 THB 1,300-1,700 bn total value2 (~2x)

Feedstock-based Processed food, biochemicals, biofuels

~THB 48K/capita ~THB 65-85K/ capita

~ 20 million ppl, mainly in agriculture

Employment throughout higher value sectors

1) 2014 GDP contribution from cereal and other crops 2) 2020 GDP contribution from rice, cassava, sugarcane, rubber and processed food only

Source: Global Insight - Thailand real GDP forecast, team analysis

5

Tapioca (cassava) Utilization in Thailand 2016

root

40 Mton

starch

5.6 M ton

chip/pellet 7.5 M ton

local 25 %1.4 M ton local 15 %

1.1 M ton

- textile industry

ethanol352 M liter

5% 41 % 54 %

export 85 %

6.4 M ton

export 75 % 4.2 M ton

- food

- sweetener

- MSG

- pulp/paper

- glue

- lysine

- snack/noodle

- textile

- particle board

- medicine

import 8 -10 M tonfarmer 550,000

Value-added Industries> US$ 8.5 billion

1 M employees

-Biodegradable plastic

- plywood industry

- Glue industry

- food and drink

- paper industry

- feed industry

6

Second Generation Products from Tapioca Starch

•Native starch

•Modified starch

•Chip and pellet

1st generation

2nd generation

• Gluten free flour•Lactic acid, PLA

1% of world population allergy to wheat gluten. Gluten free products will grow from 4,630 M USD in 2015 to 7,590 M USD before 2520(marketsandmarkets.com,2015)

Ecosystem Services

A wide Range of Ecosystems

Rich in Biodiversity

Community based Bioeconomy – A New Model for Economic Growth and Sustainable

Use of biodiversity from community forest of Ban Tung Yao, Lumpoon

worth 33,000 $US/year 30% from ant’s eggs followed by

mushroom, fruit and bamboo shoot

Unofficial estimation 70,000-80,000 villages

2,500 – 10,000 M. $US/year(70% for own consumption)

Krabi

Phuket

Phang Nga

Trang

On reef tourism value 1078 M $ USTotal tourism value 2410 M$ US

No.4 after Egypt, Indonesia and Mexico M. Spalding et al., Marine Policy 82 (2017) 104–113

“Living in harmony with nature”Wealth and Health Nation

To Build Knowledge

Education

Awareness

SCG Fish Home: Fish Habitat

in the Ocean

SCG Chemicals kicked off the Fish Home project in 2011 as awareness grew about the decrease in fish and aquatic animals in the Gulf of Thailand

Fish homes from PE100 and used to transfer drinking water

More than 1,000 fish homes have been placed, serving as conservation and nursery areas for more than 120 marine species

CONSERVING ENDANGERED MARINE SPECIES THROUGH SEAGRASS PLANTING

an essential food source for several animals; such as, dugong and sea turtle

A Farm Stay in Trang province creates a unique experience to visitors by using ecotourism to conserve marine and coastal resources and to increase awareness in environmental protection.

Seagrasses:

wild seedlings are grown in a plant nursery for 90 days

Seagrasses will then be planted in designated areas

visitors are invited to participate in planting the seagrasses

Bioeconomy to Cover 5 of the 10 Priority Sectors of the Government

5 Future Industries

5 Current Industries

Agriculture and Bio-

technology

Digital

Food forthe

Future

Smart Electronics

Next-Generation Automotive

Affluent, Medical

& Wellness Tourism

Robotics

Biofuels & Bio-

chemicals

Medical Hub

Aviation & Logistics

Developto

Creative

12

Goal: Total Investment ~ 400 Billion Baht in 10 years

16 Investors

The beginning to drive investment for Bioeconomy of Thailand

Strategic Collaboration Advances “Bioeconomy”

The Memorandum of Understanding Signing Ceremony in Jan 23, 2017

23 agencies from the public and private sectors and educational and research institutions

Strategic Areas of Thailand’s Bioeconomy

13

Economic Corridor Northeastern

Economic Corridor

@ Khon Khan

Smart Farm

Biorefinery

Research Development &

Innovation Networking

Khon Khan Biotech

Center

Eastern Economic Eastern Economic Corridor

@ Cholburi

Palm Biocomplex

• Biodiesel/ Glycerin

• Surfactants (APG)

• Vitamin E

@ Rayong

PLA & PBS

Peritoneal Dialysis

Solution

Northern Economic Northern Economic Corridor

@ Nakhon Sawan

Sugar Biocomplex

• Ethanol

• Electricity

• Lactic Acid

• Bio-succinic Acid

@ Kamphaeng Phet

• Biocomplex

• Electricity

• Ethanol

• Functional sugar

• Yeast Extract

• Dried Yeast

• Beta-glucan

Eastern Economic Corridor of Innovation (EECi)

EECi - The ASEAN Innovation Hub to support EEC and Thailand 4.0

480 hectare

Conceptual Framework of EECi

15

Digital Economy Bioeconomy

Source: Department of Science & Technology

Current Status of Thailand’s Bioeconomy

16

Year 2017

23 January 2017MOU Bioeconomy

5 April 2017 MOU EECi

Propose Plan for Development of Agricultural Special Economic Zone

to the Cabinet

Goal: Total Investment ~ 400 Billion Baht in 10 yearsBioeconomy: 10-Year Roadmap

2017-2018• Further develop Bioenergy as a stepping stone for the Bioeconomy

• Create demand for investment in biochemicals/ bioplastics and

biopharma sectors

2019-2021Develop Biorefinery Complexes and Biopolis, the smart city based

upon integrated innovations and bioeconomy

• Develop the value-added bio-based products

11

22

Jan Apr Sep

2022-2026

33 • Move towards the Regional Hub: a model for future industries

• Establish Biopharmaceutical pilot plant and commercial plant

• Implement domestic/ international full-scale Clinical Research

The Expected Outcomes from Bioeconomy within 10 yrs

17

1 The Alternative Energy Development Plan (AEDP) for 2015 – 2036)

>300,000 >100,000

Promoting Research & Innovation in Industries

Thailand Science Park – An Innovation Hub

access toR & D

Network

access toInfra

access toCapital

access toKnowledge

An international inter- and

multidisciplinary consortium aims to

provide scientific solutions to disease-

related issues in aquaculture using

shrimp as a model through research

and innovation staff exchange and

sharing of knowledge and ideas from

farm to fork.

Japan-ASEAN Science, Technology and Innovation Platform

(JASTIP)

The Japan-ASEAN Science, Technology and Innovation Platform: Promotion of Sustainable Development Research (JASTIP) will promote research toward sustainable development based on an inclusive Japan-ASEAN collaboration and aim to build a platform for Japan-ASEAN science and technology cooperation

Thailand-Japan Cooperation Project (JICA/JST)

Innovation on Production and Automotive Utilization of Biofuels from Non-Food Biomass in Thailand

Japan International Research Center for Agricultural Science

(JIRCAS)

King Mongkut’s University of Technology Thonburi (KMUTT)

Development of Saccharification

Technology

KMUTT+JIRCAS+IHIE @ 2015

Since 2005

Biofuel and Biorefinery Platform

Development of Agrichemical process: Sustainable and economicalRenewable energy production

Methane platform

GTLCNG

Watertreatment

Watertreatment

Biogas

(Methane)

Biogas

(Methane)

ASEAN HELPS ASEANASEAN HELPS ASEANBrunei, Cambodia, Indonesia, LaosPDR,

Malaysia, Myanmar, Philippines, Thailand, Vietnam, Singapore

ASEAN Economy

2007

US$ 1.3

Trillion

US$ 2.7

Trillion 2016

ASEAN Population

654 million

Acknowledgement

• Chaya Chandavasu, Ph.D

• Anon Sirisaengtaksin

• The Committee on Future Industry Development

Group