Introduction to EU SWITCH-Asia Biomass
Sustainable Production (SP) Project
Dato’ Leong Kin Mun
Technical Advisor, Biomass-SP
European Union
Malaysian Industry-Government
Group for High Technology
Association of Environmental
Consultants and Companies of
Malaysia
European Biomass Industry
Association
The Challenge
Energy Security
• Exponential increase of
energy use and
production in the last
century
• Limited supply of oil,
coal, natural gas, and
uranium.
Climate Change
• Increased level of
greenhouse gas alters
the earth’s atmospheric
equilibrium
Sustainability
• Carrying capacity of
landfill is limited
• Pollution of waterways
and water resources
• Human and ecosystem’s
health at risk
The Opportunity
“In addition, 19.3 million tonnes of EFB
and 58 million tonnes of POME are
produced and these have not yet been
fully exploited”
Tan Sri Bernard Dompok,
Minister of Plantation Industries and
Commodities
“The country has a wealth of
abundant resources to get there - the
land mass, the biodiversity, the
rainforests, water power, natural gas
and biomass - and the commitment of
its leadership”
Volker U. Friedrich, a member of the
Board of Trustees of the MalaysiaEurope Forum (MEF)
“I applaud the recent call by PM
Datuk Seri Najib Razak to move
towards developing a green economy.
This is a strategic play to the
country’s sustained competitive
advantage, particularly in palm oil and
other agricultural-based industries.”
Roger Wyse, Co-Chairman of the
Malaysian Life Sciences Capital Fund
Industrialized Nation’s Growing
Interest in Renewable Resources
• Multinational corporations Wal-Mart &
P&G are demanding sustainable
renewable sources of materials and
chemicals
• Europe are already making headway to
develop green technologies utilizing
biomass from non-food sources
• Brazil have transformed their economies
to be based on biomass from sugarcane
National Response to Green
Technology and Renewable
Energy
•
New Economic Model
•
National Biotechnology Policy
•
National Green Technology
Policy
•
National Innovation Model
New Economic Model
•
•
•
•
To uptake leadership role in green
technology and develop a niche in
high value green industries and
services
NEM’s vision of Malaysia becoming a
“green hub”
Applying innovation and technology,
including biotechnology, for the
production of renewable high-value
products and services, driving
economic growth.
Introduce the concept of ‘Green GDP’
–
Consider the impact of growth on the
environment and the appropriate design of
measures to address environmental
concerns.
National Biotechnology Policy
•
Provide required incentives for R&D and
business ventures alike. E.g. Bionexus
Status
–
–
•
•
An exemption from tax on 100% statutory income
and dividends distributed by Bionexus companies
An exemption from import duty and sales tax on raw
materials/components and machinery and
equipment
Transform and enhance the value
creation of the agricultural sector through
biotechnology
Nurture and support growth opportunities
in the application of advanced bioprocessing and bio-manufacturing
technologies
National Green Technology
Policy
•
•
•
Green technology to be the new
driver for economic growth
The setting up of a legislative and
regulatory framework – development
of green technologies and promotion
of resource use optimization
Among the objectives:
–
–
–
Decreasing energy consumption
Facilitating growth of green
technology
Enhance Malaysia’s green technology
global competitiveness
National Innovation Model
•
To shift from a resource-led
economy to an innovation-led
economy, driven largely by domestic
private enterprise and activity in
Malaysia
The private sector to actively lead in
identifying market opportunities, and
taking innovative products and
services to markets
Government to facilitate this effort
by mitigating market risks.
•
•
-
Providing incentives for technology
acquisition
Rewards entrepreneurship, risk
capital providers and risk managers
Issues Related to Growth of
Biomass Industry in Malaysia
• The most developed technologies for
biomass conversion into green products
come from outside of Asia
• Official policy or governmental guidelines on
biomass do not exist to support investments
to develop and commercialize biomassderived products
• Institutional and market capabilities to provide
a stable long term access to biomass
• Competition of biomass usage among
different biomass stakeholders
Biomass-SP
• Funded by: EU SWITCH-Asia Programme
• Project Partners: Malaysian Industry-Government
Group for High Technology (MIGHT), European Biomass
Industry Association (EUBIA), Associations of
Environment Consultants and Companies (AECCOM),
Danish Technological Institute (DTI)
• Supported by: Ministry of Science, Technology and
Innovation (MOSTI), Ministry of Energy, Green
Technology and Water (KeTTHA)
Environmental Uniqueness of
Biomass
• Biomass takes carbon out of the atmosphere
while it is growing, and return it as it is burned.
• If it is managed on sustainable basis – they can
be harvested as a part of constantly replenished
crop.
• The new growth takes up CO2 from the
atmosphere while at the same time it is released
during combustion - it is carbon neutral
Biomass Industry in Malaysia
• 168 million tonnes of biomass (timber waste, oil
palm waste, rice husk, coconut trunk fibers,
municipal waste, sugar cane waste, etc.)
• Great potentials to be used in:
– Manufacturing of value-added eco-products (bioplastics, bio-composites, bio-fertilizers, bio-pellets,
green building materials, furniture products etc)
– Generation of renewable energy.
• Add value to the CDM activities in Malaysia and
contributes to global climate change mitigation
effort.
Small and Medium Enterprises
Micro Enterprise
Small Enterprise
Medium Enterprise
Manufacturing,
ManufacturingRelated Services,
and Agro-Based
Industries
Sales turnover of
less than
RM250,000 OR full
time employees less
than 5
Sales turnover
between RM250,000
and less than RM10
million OR full time
employees between
5 and 50
Sales turnover
between RM10
million and less than
RM25 million OR full
time employees
between 51 and 150
Services, Primary
Agriculture and
Information &
Communication
Technology (ICT)
Sales turnover of
less than
RM200,000 OR full
time employees less
than 5
Sales turnover
between RM200,000
and less than RM1
million OR full time
employees between
5 and 19
Sales turnover
between RM1
million and less than
RM5 million OR full
time employees
between 20 and 50
Source: SME Corp Malaysia Official Website
Principles of SCP
• Involves concerted effort of business, government,
communities and household in enhancing
environmental quality through:
– Efficient production and use of natural resources
– Waste minimization and recycling
– Design of environmentally-friendly products and
services
• Sustainable production emphasizes improving
environmental performance in the supply sector.
• Sustainable consumption addresses the
consumer’s demands of goods and services.
Project Motivation
Sustainable Production
• Less polluting and resource efficient
processes
• E.g. Implementation of EMS, CDM
and carbon footprint reduction.
High Value Products
• Renewable energy and materials
• Manufacturing of value-added
eco-products
Enhanced environmental • 50 biomass SMEs in Malaysia
and business performance • Links with value chain from the
of Malaysian biomass
EU
SMEs
Project Objectives
1.
2.
3.
4.
To develop Malaysian family-owned SMEs to implement SP
models in the biomass industry – economic growth, social
well-being and address the issues of industrial pollution
To improve biomass supply chain in Malaysia by promoting
collaboration between EU-Malaysia biomass industry,
research institutions and universities
To reduce industrial emissions by improving production
process of biomass commercialization projects and
contribute to global climate change mitigation efforts
To create the enabling environment for improving policy
cohesiveness
Target Stakeholders
• SMEs biomass supply chain i.e.
–
–
–
–
–
–
–
–
Wood and fibre-based products manufacturing,
Eco-products manufacturing,
Solid waste management and solutions/service providers,
Renewable energy entrepreneurs
Traders/suppliers for biomass
Technology licensors/licensees for biomass
Environmental engineers
Commercialization entrepreneurs
• Government agencies, research institutions and universities &
financial institutions
• Environmental business intermediaries
Project Activities
Knowledge
Exchange Session
Biomass Best
Practices & Business
Partnering
Conference
Benchmarking Study
Multi-Stakeholders
Forum
Business Coaching
Biomass Action Plan
Outreach Programme
Capacity Building
Programme
Final Knowledge
Transfer Seminar
Multi-Stakeholders Forum
• Organize multi-stakeholders (government, industry,
academia, NGOs, chamber of commerce) consultative
dialogue/forum
– To identify relevant stakeholders involved in biomass
industry in Malaysia
– To identify issues, concerns, and interests associated with
biomass utilization projects in Malaysia
– To identify the best way forward for the growth of biomass
industry in Malaysia
• Overall outcome: To produce policy recommendations
to government (e.g. NEM, RMK10) based on
consultation with Malaysian stakeholders
Awareness Road show Seminar
• To conduct outreach programmes in Kuala
Lumpur, Perak, Pahang, Johor, Kedah,
Sabah & Sarawak.
• Targeted participants: 500 SMEs involved
in the biomass supply chain
• To identify 50 Malaysian SMEs for the
business coaching programme
Capacity Building Programme
• For EU & Malaysia experts to transfer their knowledge as well
as facilitation of market access opportunities on:
a)
b)
c)
d)
e)
f)
g)
h)
i)
Biomass Technology for SMEs
Concepts, Trends, Perspectives in Environmental Performance
Biomass & CDM
Financing & Funding Opportunities
Optimizing & Benchmarking the Economic Value of Biomass
Success Stories of Biomass Conversion/SCP Projects
Policy Intervention via Economic Instruments for Developing
Local Biomass Industries
EU Market Access Opportunities for Biomass Products
EU Standard and Technical Specification for Biomass
Products
EU-Malaysia Biomass Entrepreneurs
Nurturing Programme (EUM-BENP)
• Coaching of 50 selected SMEs to implement biomass
SP projects in Malaysia based on EU value chain:
a) Implementation of environmental management system
(EMS) such as ISO 14001, ISO 14064
b) Facilitation of clean development mechanism (CDM)
projects involving preparation of Project Idea Note (PIN)
and Project Design Development (PDD); match-make
carbon credits buyers with CDM developers
c) Measurement of carbon footprint reduction
d) Commercialization of local biomass technologies from
research institutions and universities
e) Facilitation to funding opportunities e.g. Government
grant, venture capital, soft loan & investment incentives.
EU-Asia Biomass Best Practices &
Business Partnering Conference 2012
• To promote SCP best practices
• To facilitate business and technology partnership related
to biomass products, services & technologies.
• Targeted to 200 participants from Asia/Malaysia and 50
participants from Europe
• Partnership opportunities:
 Import / Export
 Joint Venture
 Joint Production
 Contract research
 Joint R&D
Technology Licensing
 Technology Transfer
 Project Financing
 Proprietary Consultancy
 Carbon Credits Trading
 Distributorship/Marketing
Services
 Green Procurement
Venture Capital
Benchmarking Study
• To distinguish economic value of biomass
and potential utilization for energy
(renewable energy) and non-energy (ecomanufacturing products) use
Biomass Action Plan for
Malaysia
• To develop Biomass Action for Malaysia
(BAM) based on best practices highlighted
at the conference and capacity building
programmes, EU experience, consultation
with local multi-stakeholders
Expected Results
• 50 SMEs at direct implementation level will be strengthened
in their financial, technical and environmental compliance
capacities to increase export competitiveness on biomass
products, services and technologies to the EU
• Increase use of environmental friendly technologies and
practices by biomass SMEs intervened by the project initiative
EUM-BENP
• Improve the effectiveness of supply chain for biomass
industry in Malaysia
• Increase commercialization of the local biomass
R&D/technologies between the RIUs and SMEs
• Creation of enabling environment to develop biomass
industry by improving policy cohesiveness via the Biomass
Action Plan for Malaysia
sustainable consumption & production
of
WASTE
biomass
contributes to
WEALTH
can be utilized as
to produce
CROP WASTE
Co-generation
WPR
S
Anaerobic Digestion
ED
Rice husk
Bagasse
Bamboo
Crops & Animal
ANIMAL WASTE
Combined Heat
Production
EMS
CFM
CDM
Energy
WPR
Biofertilizer
Compost
Bioplastics
GPP
MUNICIPAL
SOLID WASTE
Consumer
BIOMASS
EMS
CFM
Agriculture
S
ED
WPR
Ruminant Feed
Soil Conditioner
Organic Mulch
WOOD-BASED
WASTE
Industry
WPR
SCP Action Plan
CDM – Clean Development
EMS – Environmental Management
Mechanism
System
CFM – Carbon Footprint Measurement S – Sustainable Use of Resources
ED – Eco-Designed Products
GP – Green Public Procurement
WR – Waste Prevention and
Recycling
EMS
Bio-ethanol Briquettes Biogas
Fuel Pellets
Fuel Chips
EMS
CFM
Biotechnology
Kernels
Shells
Empty Fruit Bunches
Palm Oil Fronds
Palm Oil Trunks
Media for
Activated
production of
carbon
cellulase enzymes
Manufacturing
Particle Board
MD Fiberboard
Fiber Cement
Pulp
PALM OIL MILL
EFFLUENT
(POME)
PALM OIL
RESIDUES
CFM
Fine
chemicals
BIOMASS INDUSTRY IN
MALAYSIA
Melsom (M) Sdn. Bhd.
• Established in 2006
• Use rice husk as raw
materials to produce
biodegradable
tableware
– Rice Husks Chopsticks
– Organic Fibre Rice
Husks Cutting Board
– Rice Husks Ocha Tea
Cup
– Little HusksTM Series
Isotop Corporation Sdn. Bhd.
• ISOTOP EcopalletsTM
produced from wood
chips harvested from
the plantation species
• Collaboration project
with Malaysian Palm Oil
Board (MPOB) –
production of moulded
particleboard through
NoSKIN process for
furniture and furniture
components
Green & Smart Sdn. Bhd.
• An environmental
biotechnology company
with Bionexus status
• Involved in palm oil
waste and bioenergy related R&D
• Developed a new
individual septic tank,
GREENPAKTM
• Currently building
POME biogas plants at
four mills
BIOMASS-SP PROJECT OFFICIAL WEBSITE
An introduction to the website
www.biomass-sp.net
A Portal for Biomass SMEs
• One-stop focal point to promote the
utilization of biomass pillared on the
concept of SCP in Malaysia
Unique Features
• A collection of information pooled from
publicly available websites and databases.
– Financial Assistances & Investment Incentives
– Biomass-Related Events
– R&D Projects Database
• Latest information-sharing materials on
Biomass-SP Project
Funding Opportunities
Biomass-Related Events
R&D Projects Database
Latest News on Biomass-SP
Relevant Publications
Terima Kasih
Contact us to send your
queries/comments/feedbacks/suggestion
Biomass-SP Project
Phone No.: 603-8884 8822
Fax No.: 603-8884 8828
info@biomass-sp.net