towards environmental & economic sustainability … strategies, policies & actions palm oil...

Towards Environmental & Economic Sustainability in Malaysia

via Biomass Industry

by

TANG KOK MUN 13-FEB-2014

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

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

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 (2010 – 2013)

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 - www.biomass.org.my

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

STATUS OF BIOMASS IN MALAYSIA

Million Metric Tonnes (wet)

(Empty Fruit Bunches)


Oil Palm Fronds Oil Palm Trunks Fruit Bunches Palm Fruit Palm Fruits &

Empty Fruit Bunches Palm Shell

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

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

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

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

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

CHALLENGES

6. Low-value utilization of biomass by local companies

Existing biomass ventures mostly in production of commodity-based 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

BENCHMARKING OF BIOMASS UTILIZATION

GOVERNMENT STRATEGIES, POLICIES & ACTIONS

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




Bio-conversion of biomass into high value chemicals & liquid fuels

Feed-in-tariff for renewable energy

generation





Palm Oil Industry

Biogas power generations

National Biomass Strategy

Biomass Industry Strategic

Action Plan



generation





Palm Oil Industry




Action Plan



generation




Generation of power to national electricity grid via

biogas from effluent waste


Palm Oil Industry




Action Plan



generation




Promote high value utilization of biomass by small & medium companies




Palm Oil Industry




Action Plan



generation




Promote high value utilization of biomass by small & medium companies

Development of market players & technologies for

biomass pellets & biochemicals



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


SUSTAINABLE FORESTRY (Acacia)

BIOCHAR PRODUCTION

BioChar

Energy

EXPORT MARKET

DOMESTIC MARKET

BUSINESS & ENVIRONMENTAL MODEL

CO2 Carbon Sequestration


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

THANK YOU! Q&A

[email protected]

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 : [email protected]

towards environmental & economic sustainability … strategies, policies & actions palm oil...

Documents