National Biomass Strategy 2020 v2.0- New wealth creation for Malaysia’s biomass industry

UpdateMay 2014

The National Biomass Strategy was launched by the Prime Minister and the Minister of Plantation Industries in November 2011

SOURCE: Press articles

Launch of the National Biomass Strategy

Strategy guides Malaysia to capture:

U$10 billion additional GNI impact

~66,000 new jobs

~12% CO2e abatement

U$8 billion in investment opportunities

“the NBS would pave the way for the growth of new high value industries…including in bio-based chemicals and bio-energy”- Prime Minister Datuk Seri Najib Tun Razak, at the launch of the strategy at the opening of BIO Pacific Rim 2011

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The Strategy identified that a 30mln tonnes biomass shift towards higher value uses by 2020 could result in U$10b additional income per year

SOURCE: NBS2020

NBS2020 identifies specific opportunities and enablers to create high-value industries by mobilizing 30m tonnes biomass by 2020.

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CRITICAL FACTORS TO ACHIEVE NBS2020, FACILITATED BY AIM’S 1MBAS TEAM:

Biomass usedMillion tonnes, dry weight

Energy

Wood products

311% 31%Total:

0

5

10

15

20

25

30

35

202020152011

1%

1%

3%

1%

4%

6%

4%

9%

3%

9%

Share of total biomass available in given year

Fuels

Pellets

Biobasedchemicals

Business as usual

Biomass to wealth

~14bln

~8bln

~9bln

~3bln

~2bln

▪ ~2% additional GNI impact▪ >60,000 new jobs▪ ~12% CO2e abatement

• Mobilization of large volumes of biomass for high-value activities

• Industry-led approach without government interference in selecting technologies

• Participation of biomass owners in downstream activities

• Attract downstream technology owners and off-takers

• Scaling up of new technologies in Malaysia

LAHAD DATU JV CLUSTER

Biomass mobilization for high value Renewable Energy pellets is the key to unlocking NBS2020

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Biomass usedMillion tonnes, dry weight

4Total:

0

5

10

15

20

25

30

35

202020152011

3%

9%

Pellets enable

profitable mobilization today, and act as

flexible bufferonce biobasedchemicals become commercially available

• Established Pellet Association of Malaysia, >10 members

• Detik Aturan: Home grown pellet producer received contract on 25th Jan ‘14 from Korea for 100,000 Tonnes/month

• Detik’s existing capacity was 3,000 Tonnes/month, going from RM12.6m to RM420m per year

• Worked with Korea govt. and utilities to accept EFB pellets: Law amended 20 Dec ‘13 

Biomass mobilization for high-value BioFuels (ethanol) is now starting in Malaysia

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Biomass usedMillion tonnes, dry weight

5Total:

0

5

10

15

20

25

30

35

202020152011

1%

4% • Local land owner planting 22,000 Ha dedicated biomass crops

• Crop trials being conducted by local university

• Several technology owners and off‐takers in discussions with local biomass owners

• First commercial scale biomass‐to ethanol plant to be confirmed this years

Ethanol derived from

biomass became commercial-scale ready last year, the first plant in Malaysia could come online in 2 years

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Biomass usedMillion tonnes, dry weight

611%Total:0

5

10

15

20

25

30

35

202020152011

1%

6%

Biomass to Hydrolysateconversion:3-5 yrs for first plant to reach commercial scale (in the world)

Technology providers:

Downstream companies:

Biomass based sugars are expected to reach commercial scale in 3-5 years. Stakeholders are on standby…

Chemicals derived from biomass based sugars are expected to be

commercial-scale ready in 3-5 years

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