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Biomass-SP January 2012 - December 2012 1

Exploring Green Market Opportunities Page 6

Wokshop on Economic Instruments Page 7for Biomass Industry

Biomass-SP welcomed over 630 delegates from 29 countries at its inaugural

biomass event, the EU-Asia Biomass Best Practices & Business Partnering Conference 2012, held from 7 to 10 May 2012 in Kuala Lumpur, Malaysia.

Set to be the largest biomass conference in Malaysia, the event gathered for the first time biomass stakeholders with representatives from Asia Pacific region and Europe featuring a Pre-Conference Seminar, 2-day International Conference, Business Match-Making and Exhibition.

YB Dato’ Sri Peter Chin, the Minister of Energy, Green Technology & Water (KETTHA) officiated the Opening Ceremony held at Putra World Trade Centre (PWTC), jointly graced by H.E. Vincent Piket, the then Ambassador & Head of the Delegation of the European Union (EU) to Malaysia.

The EU-Asia Biomass Best Practices & Business Partnering Conference is the Biomass-SP project’s flagship initiative to develop the biomass industry in Malaysia towards higher value chain and link with EU and global green market access opportunities.

The International Conference highlighted growing key sectors in the biomass industry i.e. bio-energy, eco-products and green building materials, biofertiliser and agri-based products, bio-based materials and high value chemicals through 2-day intensive discourse among biomass business and thought leaders locally and globally such as Malaysian Palm Oil Board (MPOB), Malaysian Timber Industry Board (MTIB), Global Science Innovation Advisory Council (GSIAC), Sustainable Energy Development Authority (SEDA), FELDA, QL Resources, Lafarge, First Climate, RWE, Port of Rotterdam, etc.

NewsletterEU-Asia Biomass Best Practices & Business Partnering Conference 2012explored expanding sectors of biomass industry in Malaysia and the region

Co-funded by:

Supporting Ministries:

Jointly Promoted by:

European Union

TOWARDS SUSTAINABLECONSUMPTION AND PRODUCTION

European Biomass Industry Association

AECCOM

Association of Environmental Consultants and Companies of Malaysia

Ministry of Science, Technology & Innovation

In thIs Issue:

Launching of Malaysia Biomass 0Industries Confederation (MBIC)

The EU-Asia Biomass Best Practices Page 1& Business Partnering Conference 12

MoUs signing between CHE Metal Works Sdn. Bhd. with ERK Eckrohrkessel GmbH, Fitzpatrick Company and Panima Energy LLP

Plenary Session: Mr. Mohd Yusof Sulaiman (MIGHT), Prof. Emeritus Dato’ Sri Dr. Zakri Abdul Hamid (Science Advisor to Prime Minister), Prof. Dr. Rofina Yasmin Othman (MOSTI), Mr. Anthonie Versluis (Roland Berger), and Dr. Giuliano Grassi (EUBIA)

January 2012 - December 2012 Biomass-SP2

EU-Malaysia Biomass Sustainable Production Initiative

Biomass Industry Development in the EU

Malaysia’s Green Economy

“There is tremendous potential for green technology growth in Malaysia, especially within our

target sectors - energy, construction, transportation, water and waste management.

In the renewable energy industry, the opportunities are ample to fill the gap within these sectors. Power generation using biomass, biogas, small hydro and Solar PV takes the lead in fulfilling the government’s aim to achieve 2080 MW of energy from renewable resources by 2020.

As for the construction sector, in parallel with the introduction of Green Building Index (GBI) and Low Carbon Cities Framework (LCCF), I urge businesses, industry players and research institutions

to continuously explore biomass utilisation in construction industry to increase energy efficiency and at the same time, cutting cost.

I believe, Malaysia is now ready to join the league of economies that have made “eco” or “green” businesses sustainable through direct participation of government, the public and private sector in promoting the production and consumption of environmentally-friendly products, or eco-products.

However, support from key industry players will be of paramount importance to ensure these initiatives a success. Green technology market leaders could also

work to share and transfer their technological expertise and business solutions with emerging economies that are trying to become greener. We need all members of the business fraternity to play their part.

As such, I urge research institutes and institutions of higher learning to work together with businesses and Government to expand R&D in the field of green technology and to drive the commercialisation of tomorrow’s game-changing innovations.”

“The EU vigorously promotes biomass as an alternative fuel, and as a resource for eco-

products. The global demand for biomass is going up fast. Demand for solid biomass fuel in Europe is expected to double by 2020. Currently, around 5% of final energy consumption in the EU is from bio-energy.

Bio-energy today is the main renewable energy source used in the EU and it will remain key for meeting our climate targets. We expect that bio-energy will supply over 10% of EU total final energy consumption by 2020. Most of this biomass is expected to be used in the heating sector. More specifically biomass will cover 7% of energy consumption in electricity, 17% of

energy consumption in heating and cooling and 9.5% of energy consumption in transport.

How to source that biomass, how will we meet demand? Domestically in EU, we expect that biomass resources will be sourced predominantly from the forestry

sector. Agriculture and fisheries will be the second source. The third will be waste—the contribution of waste is projected to double.

Those are the domestic sources. It is clear that they will not suffice to meet demand. We will need to import biomass. To date, biomass imports from third countries for heating and cooling and electricity

purposes represent less than 5% of the EU total primary needs. However, we expect that by 2020 18% will be imported, mainly in the form of pellets and wood chips.”

For our part, Malaysia has recognised green technology as one of the key drivers of national economic growth. Having continuously watched and learned from other countries that have successfully established ‘green’ economic models such as Germany, United Kingdom, Japan, China and United States, in near future, we aim to achieve significant progress in developing green economy through the adoption, innovation or production of green technologies or through developing platforms that encourage more eco-friendly products and services.

Fighting climate change has been a top priority for the EU for the past decade or two. We have taken an active stance on climate change mitigation and adaptation needs.

YB Dato’ Sri Peter Chin, Minister of Energy, Green Technology & Water

H.E. Vincent Piket, Ambassador & Head of Delegation of the EU to Malaysia


Issue 3 : January 2012 to December 2012

High Value-Added Biomass

Addressing Energy Security, Global Warming & Climate Change Issues in Malaysia

Sustainable Bioenergy and the Growing Bioeconomy in EU a Driver for the Malaysian Biomass Sector

“With the Prime Minister of Malaysia advocating Malaysia’s development of a bio-economy,

MIGHT has taken up the mantle of re-gearing Malaysia’s biomass marketplace towards high value green chemicals for local and international downstream users in pharmaceuticals, materials and energy industries.

At the head of our efforts to stimulate new growth in this technology area is MYBiomass,

that will be pioneering the first integrated high value chemical biorefinery plant. The Malaysian Biomass Initiatives, mooted at the GSIAC by YAB Prime Minister, has initiated the establishment of the MyBiomass.

As a smart partnership platform, the company is expected to become a focal point for the aggregation of biomass feedstock and intermediate opportunities between suppliers, technology providers and downstream users.

Towards this end, the National Renewable Energy Policy and Action Plan was introduced with the objectives to increase renewable

energy contribution in the national power generation mix, to facilitate the growth of the renewable energy (RE) industry; to ensure reasonable RE generation costs; to conserve the environment for future generations; and to enhance awareness on the role and importance of RE.

Subsequently, the Renewable Energy Act 2011 was also introduced to provide for the establishment and implementation of a special tariff system (Feed-in

Tariff (FiT) system) to catalyse the generation of renewable energy.

Besides that there is also a special incentive to use locally created or developed R&D. Firms which adopt and use locally created or developed R&D for RE will be granted special fiscal reliefs by the Government in order to stimulate the innovation system to produce local RE technology (of comparable quality and cost to international benchmark).

This would enable to create a demand for local RE technology by RE power generation firms.

Prof. Emeritus Dato’ Sri Dr. Zakri Abdul Hamid, Science Advisor to Prime Minister

Tan Sri Ahmad Tajuddin Ramli, Joint Chairman (Industry), Malaysian Industry-Government Group for High Technology (MIGHT)

It is widely acknowledged that the European renewable energy policy is a major driver for the rise of the global demand for biomass and biofuels.

These trends are shaping the so-called bio-based economy.

In 2011 Europe’s gross consumption of primary energy from solid biomass, including imports and exports, was estimated at 80.8 Mtoe, whereas the consumption of biomass for power generation continued to grow steadily, driven by the additional take-up of biomass co-firing in several Member States.

In the same year 77% of the biofuels consumed in EU are constituted by biodiesel made from rapeseed, soybean and palm oil, and this was mainly imported or derived from imported feedstock

(including large volumes of palm oil from Malaysia). Finally, in February 2012 the commission adopted its bioeconomy strategy, a broad policy document with the aim of promoting the shift of the European economy towards greater and more sustainable use of renewable resources.

Europe’s shift towards more sustainable biofuels and the bio-based economy can be an opportunity for the development of the Malaysian solid biomass industry.

With tens of millions of tons of solid biomass readily available, generated each year only from palm mill residues and plantations, Malaysia can not only become a biomass basket for the growing bio-based industry in Europe, but also pole of attraction for industries, research and investors to implement innovative projects in the country itself.

Dr. Ir. Giuliano Grassi, Secretary General, European Biomass Industry Association (EUBIA)



Parallel to the conference, a Pre-Conference Seminar on Biomass Commercialisation and Financing was held to highlight latest funding

opportunities and investment incentives available for biomass industry development in Malaysia.

Malaysian Investment Development Authority (MIDA) and Ministry of Science, Technology and Innovation (MOSTI) highlighted government incentives and grants available for commercialisation or domestic investment related to biomass utilisation. Meanwhile, Malaysian Technology Development Corporation (MTDC) and Intrasys Sdn. Bhd. outlined venture capital funding

Commercialisation and Financing Opportunities for Innovative and Green Projects

Meeting Place for Collaboration Opportunities

opportunities for innovative and high value biotechnology ventures.

Other invited agencies include Malaysian Industrial Development Finance Berhad and Bank Negara Malaysia, as well as Malaysian Green Technology Corporation (Greentech Malaysia) and Inno Integrasi Sdn. Bhd.

Meanwhile, Business Match-Making Event set to promote business and environmental partnerships through one-to-one business meetings between participating biomass companies.

483 meetings took place in the event between delegates from Malaysia, Europe and Asia Pacific region.

An Exhibition of biomass technologies, products and services by local SMEs, technology providers, government agencies and international

organizations was also held concurrently and open to all conference delegates, business match-making participants and trade visitors. Biomass-SP organised a special pavilion for SMEs selected under the EU-Malaysia Biomass Entrepreneurs Nurturing Programme (EUM-BENP), featuring biotechnology and new green products manufacturing companies, such as biomass solid biofuel, biocomposite, geotextiles, and biofertilisers, as well as green chemical companies. The Exhibition also saw participation from renowned government agencies such as Malaysian Green Technology Corporation (Greentech Malaysia), Construction Industry Development

Board Berhad (CIDB) and Fiber and Biocomposite Development Centre (FIDEC) and international organisations such as Bioenergy International and Wangeningen University & Research Centre (WUR).

Myagri Nutribio Sdn. Bhd., exhibitor and one of the selected SMEs under EU-Malaysia Biomass Entrepreneurs Nurturing Programme (EUM-BENP)

Mr. Mathialakan Chelliah, Director, Wood and Paper Industries, Malaysian Investment Development Authority (MIDA)

Wangeningen University & Research Centre, the Netherlands



EU-Asia Biomass Best Practices & Business Partnering Conference 2012

Tan Sri Datuk Dr. Ahmad Zaharudin Idrus, Chairman, Biomass-SP, delivering the Introductory Remarks

Mr. Arild Johannessen, Managing Director, Bio Protein AS

Mr. Iqbal Huq, Managing Director, Cardia Bioplastics Malaysia Sdn. Bhd.

Biomass samples from exhibition

Mr. Abdul Halim Bisri, Vice President - Technology Nurturing, from the Malaysian Industry Government

Group for High Technology (MIGHT) explaining to YB Dato’ Sri Peter Chin

Crowds at one of the parallel sessions, Biomass to High Value Chemicals

Ms. Norida Abdul Rahman of MIGHT

chairing the session on Bio-Based Economy

YB Dato’ Sri Peter Chin officiating the Exhibition, witnessed by H.E. Vincent Piket and Dato’ Leong Kin Mun

Tan Sri Rainer Althoff, Managing Director, Jatro Singapore Pte Ltd

H.E. Vincent Piket exchanging his ideas with EU participants from Wangeningen University & Research Centre (WUR)



Exploring Market Access Opportunities in the European Union (EU) for Malaysian Biofertiliser

How Green is Your Business? Understanding Carbon Footprint & Eco-Labelling

On March 26 to 27, the project held Capacity Building Programme (CBP) on Biofertiliser: Meeting

Sustainable Production (SP) Principles and Green Market Access Opportunities for the SMEs under EUM-BENP. The CBP was led by Dr. Anne-Belinda Bjerre, Senior Consultant, Danish Technological Institute (DTI).

The CBP was organised in parallel to the growing industry in order to explore global market access opportunities, and to find out what are sustainability requirements for biofertiliser, if there is any, as well as to discuss how Malaysia biofertiliser producers can make preparatory steps to meet these requirements.

In general, fertiliser are required for global production of food crops such as maize, oil palm, soybean, etc. The increasing move by governments across the globe to move towards using biomass as energy also means more fertiliser is required for cultivation of crops.

According to the Food and Agriculture Organisation of the United Nations (FAO), biofuels will be a key driver for the growing demand for fertiliser. In 2010, 118 metric tonnes (mt) of maize and 348 mt of sugarcane were used to produce ethanol in United States and Brazil.

Under the EU-Malaysia Biomass Entrepreneurs Nurturing Programme (EUM-BENP), one of

the environmental improvement services offered under the coaching activities is the life cycle assessment and carbon footprint. To kick-start the activities for the selected SMEs, the project in association with SIRIM Berhad, organised a 1-day Capacity Building Programme on Understanding Green Market: Eco-Labeling and Carbon Footprint on 4 July 2012.

The CBP was conducted by Dr. Chen Sau Soon, Senior General Manager, Environmental Technology Research

Centre, SIRIM Berhad. It aimed to expose the selected SMEs to the changing market conditions in response to climate change impacts, depletion of natural resources, and unsustainable consumption patterns that have lead to the emergence of green initiatives among governments and big corporations.

The development of green procurement policies around the world was discussed especially in Europe, Japan and Thailand as the exemplary countries. Malaysia is currently drawing up its own Green Public Procurement as well as the National Eco-Labelling Programme under the Ministry

Future food and crops production will primarily depend on further intensification of agriculture and agricultural areas. Compost, or biofertiliser, plays a potential role in meeting these nutrient demands, especially in areas where the organic matter in soil has been significantly reduced such as Denmark & Italy.

Currently, data on compost market sectors in the EU can be found in 12 countries. They represent approximately 80% of the EU compost production, and the average market distribution is:

- Agriculture - more than 50% - Landscaping - up to 20%- Growing media production (blends) and

manufactured soil - around 20%- The private consumer market with

hobby in gardening and wholesales - up to 20%

At present, the market for biofertiliser and compost is largely dependent on the increasing number of organic farming activities as well as the growing concern on the effects of chemical fertiliser on the environment.

Use of such natural products like biofertilizers in crop cultivation will

of Energy, Green Technology & Water (KETTHA), in co-operation with SIRIM.

In addition, specific tools such as life cycle assessment (LCA) and carbon footprint were introduced based on the ISO 14040:2006 Environmental Management – Life Cycle Assessment Principles and Framework.

Figure 1 illustrates practical steps in LCA study and Figure 2 shows an examples of inventory analysis conducted on the value chain of palm biodiesel.

help in safeguarding the soil health and also the quality of crop products.

In conjunction with the CBP, a site visit was made to Greenearth International Holdings (M) Sdn. Bhd., a subsidiary under the Greenearth Group of Companies which produces value added vermicompost from EFB and POME.

Mr. Kester Chin, Greenearth Intl Holdings (M) Sdn. Bhd. explaining the biofertiliser produciton process to Dr. Anne-Belinda Bjerre, DTI.



Implementing Sustainability Indicators and Economic Instruments in Biomass Policy Framework

As part of the project’s effort to foster continuous dialogue and relationship between Malaysia and the European Union (EU) on matters related to biomass commercialisation, the

European Biomass Industry Association (EUBIA) was invited to participate in the Capacity Building Programme (CBP) on Policy Intervention via Economic Instruments for Enhancement of Local Biomass Industry from 16 to 17 October 2012 at Hotel Equatorial Bangi-Putrajaya.

The CBP was co-organised with the Association of Environmental Consultants and Companies of Malaysia (AECCOM) and attended by 50 officials from ministries and agencies related to promotion of biomass production and utilisation.

Dr. Giuliano Grassi, EUBIA Secretary General, gave an overview on sustainability indicators which can be applied in designing policy tools related to biomass utilization. In particular, The Global Bioenergy Partnership Sustainability Indicators for Bioenergy was introduced to promote sustainable development of bioenergy sector which encompasses environmental, social, and economic pillars.

Meanwhile, Dato’ Ir. Dr. Bakar Jaafar, AECCOM Chairman consequently discussed different types of economic instruments by drawing from specific examples based on his experience working in the Department of Environment (DOE) and municipal solid waste (MSW) management. (see Figure 1)

Figure 1 – Review of available economic instruments in Malaysia related to biomass and green technology industry

Breakout session on sustainability indicators for biomass industry in Malaysia, led by Mr. Tang Kok Mun (Biomass-SP) and Dr. Giuliano Grassi (EUBIA)

Dato’ Ir. Dr. A. Bakar Jaafar, Chairman, Association of Environmental Consultant and Companies of Malaysia (AECCOM) conducting the Workshop on Economic Instruments for Biomass Industry in Malaysia

Figure 1

Figure 2

Dr. Chan Kook Weng, Senior Research Fellow, Malaysian Palm Oil Board was invited to discuss the application of ISO 14040, 14044 (LCA), 14067 DIS2 (CFP), and ISO 14020 series (EL) on environmental declaration and the challenges faced by the SMEs with regards to the relevance in adopting these standards in their business operations.

Sector Case Study Objective/Rationale

Renewable Energy

1. Feed-in-Tariff system for biomass and biogas power

2. 1% levy for RE generation

To encourage production of electricity from renewable resource

To promote development of renewable energy

Green Technology

1. Exemption of 2% interest on loans for green technology

2. Sales of greenhouse gas emission reduction under Clean Development Mechanism (CDM)

3. Eco-labeling of green products and services

To encourage adoption of green technology in businesses

To encourage projects which reduces emission of greenhouse gases

To encourage production and use of green products

Agriculture 1. Environmental levy on waste/Effluent fee

2. Palm oil cess

To discourage improper disposal of waste from palm oil plantation

To encourage R&D on palm oil

Business 1. Tax exemption on manufacturing which uses recycled biomass from palm oil mills

To encourage development of waste to wealth business ventures



Stakeholders Consultation Session with Biomass SMEs

Within the framework of the project to create more enabling environment for development of biomass industry in Malaysia, a stakeholders’ consultation session among

biomass SMEs was organized on 18 July 2012 at Palm Garden Hotel. The objective of the consultation session is to obtain feedback, opinions and suggestions from biomass-based SMEs on actions and measures along the biomass value chain (see Figure 2) to further promote the biomass industry among the SMEs.

A number of issues and challenges have been identified along the value chain. Among critical issues raised was the uncertainty of long term biomass supply from palm oil mills, rice mills and saw mills, as well as access to financing.

To address these challenges, the consultation session also came up with a list of recommendations (with rationale and potential impacts) for submission of the biomass action plan for Malaysia to the government on enhancing the participation of SMEs in the biomass value chain as well as a list of biomass projects or specific actions along the biomass value chain with commitment from individual SMEs to participate. These projects or specific actions will be promoted to the relevant government agencies for endorsement and assistance in facilitating them.

REGULATIONS & LAW

TRANSPORT & LOGISTICS

TECHNOLOGY AVAILABILITY

INVESTMENT & FINANCING

MARKETING & BRANDING

LOCAL & EXPORT MARKET

BIOMASS AVAILABILITY

Figure 2 - Biomass Value Chain

Mr. Tang Kok Mun, Technical Expert, Biomass-SP, facilitating stakeholders consultation session on issues and challenges in biomass industry in Malaysia with SMEs

Updates on Biomass-SP’s project website has been kicked up a notch in 2012.

Explore the new interactive section “Biomass-SP in TV” to watch news coverage of the project in Bernama, ASTRO Awani and TV3, as well as the interview by Capital TV.

For latest news and activities by Biomass-SP, you can read the news coverage by print media since the onset of the project in “Biomass-SP News”

Keeping true to our intention of providing enriching content to the target users, we have been continuously updating the website with latest industry and policy news related to biomass, as well as presentations and proceedings from the project’s activities all year round including Capacity Building Programmes (CBPs), the EU-Asia Biomass Best Practices & Business Partnering Conference 2012, and networking sessions.

Visit Biomass-SP’s website at www.biomass-sp.net to get your latest news on biomass industry in Malaysia!

Online Resource



Continue on page 13

EU-Malaysia Biomass Entrepreneurs Nurturing ProgrammeISO 14001:2004 EMS Implementation

On behalf of the EU-Malaysia Biomass Entrepreneurs Nurturing Programme (EUM-BENP), we would like to congratulate two

pioneering SMEs for having successfully implemented the ISO 14001:2004 Environmental Management System (EMS).

They are: ● Builders Biomass Sdn. Bhd.● Rapat Nusantara Sdn. Bhd.

Currently, another 9 biomass SMEs are undergoing the consultation process to implement ISO 14001:2004 EMS under EUM-BENP.

We hope the implementation of ISO 14001:2004 will help the companies better facilitate the uptake of sustainable production principles, in line with the objectives of the SWITCH-Asia Programme.

Inking Collaborations with Research Institutions

In conjunction with the MPOB International Oil Palm Biomass Conference in September, CHE Group Asia also signed a Memorandum of Agreement (MoA) with the Malaysian Palm Oil Board (MPOB) to develop the Oil Palm Biomass Pre-treatment and Power Generation Technologies to produce biochemical feedstock (PALM BIORESIN) and also renewable energy.

Myagri Group of Companies partners with the Danish Technological Institute (DTI) in an EU-funded project, BioWaste4SP. The project will utilise sustainable biotechnological processes for converting biodegradable fractions of identified African and Mediterranean agricul-tural and industrial waste as well as fractions of municipal and animal solid waste into food, feed, value-added products for nutraceuticals and healthcare, biogas and organic based fertilizer.

Malaysian PalmOil Board

Malaysia SMEs and EU Companies Joining Hands

In conjunction with the EU-Asia Biomass Best Practices & Business Partnering Conference 2012, CHE Group Asia inked a Memorandum of Understanding (MoU) with European companies namely ERK

Eckrohrkessel GmBH, the Fitzpatrick Company and Panima Energy LLP at the EU-Asia Biomass Best Practices & Business Partnering Conference 2012 last May.

Vata VM Synergy Sdn. Bhd. also signed MoUs with Minsawi Industries (KK) Sdn. Bhd, as well as Ashmann Industries Sdn. Bhd with Novobio Saintifik (M) Sdn., Bhd. respectively.



In conjunction with the EU-Asia Biomass Best Practices & Business Partnering Conference 2012, a group of Malaysian biomass small and medium enterprises (SMEs) under the

umbrella of EUM-BENP come together and launched the inaugural national biomass association in the country, the Malaysia Biomass Industries Confederation (MBIC).

The MBIC is the first national biomass industry network in Malaysia which aims to contribute towards the development of biomass industry in Malaysia, among others, via promotion of the sustainable production (SP) principles among members of the biomass industries, creation of conducive ecosystem for high value biomass commercialisation, marketing and usage, as well as acting as one-stop reference centre to disseminate industry-relevant information to members and related stakeholders.

The Networking Dinner brought together 300 biomass stakeholders from Malaysia, the EU and Asia Pacific, who are also the delegates at the Conference. This key event, which officially launched the Confederation and oversaw the inauguration of the Executive Committee Members of the

Dato’ Leong Kin Mun presenting a memento of appreciation to DYMM Tuanku Muhriz Ibni Almarhum Tuanku Munawir

Swearing-in ceremony of the MBIC Executive Committee Members, witnessed by Advisors Tan Sri Megat Najmuddin bin Megat Khas and Tan Sri Soong Siew Hoong

Networking Dinner and Launching of the Malaysia Biomass Industries Confederation (MBIC)

Confederation, was graced by Duli Yang Maha Mulia (D.Y.M.M.) Tuanku Muhriz Ibni Almarhum Tuanku Munawir, Yang di-Pertuan Besar Negeri Sembilan Darul Khusus.

Local and international biomass stakeholders at the Networking Dinner & Official Launch of MBIC



Briefing Sessions on Biomass Industry Sectors to Financial Institutions

Malaysia Biomass Industries Confederation (MBIC) kicked-off Inaugural Biomass Industry Networking Seminar

Recognising the need to bridge the gap between financial institutions and entrepreneurs, MBIC together

with the Associations of Banks Malaysia (ABM) organised a 2-day sessions on overview of biomass sectors on 28 and 29 November 2012.

The objective of the briefing sessions is to give an overview to the banking sector on different types of biomass business models and their operation. The session was attended by 13 financial institutions including AmBank, RHB Bank, Hong Leong Bank, etc. in a 2 half-day separate sessions featuring presentation from SMEs involved in biomass utilisation such as:● Pellets (Solid biofuel)● Biofertiliser● Geotextiles/Erosion control● Waste-to-energy projects● Biochemicals

Among pertinent issues highlighted during the session was the need for Green Technology Financing Scheme (GTFS) to

evaluate bankability/financial capacity in addition to technological capacity of green projects. Additionally, according to ABM, Bank Negara is currently leading discussion between financial institutions and the Credit Guarantee Corporation (CGC) to increase the government’s guarantee on green financing from 60 to 80%. The moves are hoped to increase the bank’s likelihood to approve financing application for biomass SMEs.

ABM Executive Director, Ms. Chuah Mei Lin was pleased with the outcome of the sessions and concurred that the dialogue between the banks and entrepreneurs should be encouraged and made sustainable to foster good working relationships in the long run.

YB Dato’ Hamzah Zainudin, Deputy Minister of Plantation Industries and Commodities speaking at the Biomass Industry Networking Seminar

Mr. Danny Ng, MTS Fibromat Sdn. Bhd. sharing his company’s perspective to members of the Association of Banks Malaysia (ABM)

The new Ambassador and Head of Delegation of European Union to Malaysia, H.E. Luc Vandebon receiving tokens of appreciation from MBIC.

On 1 November, the newly launched MBIC organised its inaugural Biomass Industry Networking Seminar (BINS), themed Funding & Business Development Opportunities at

Palm Garden Hotel, Putrajaya.

The seminar received an encouraging participation of more than 130 participants from small and medium enterprises (SMEs), government-linked companies (GLCs), plantation companies, technology providers and commercialization entrepreneurs. It was officiated by YB Dato’ Hamzah Zainudin, Deputy Minister of Plantation Industries & Commodities and jointly graced by H.E. Luc Vandebon, Ambassador & Head of Delegation of the EU to Malaysia.

Among notable organisations presenting at the seminar is Malaysian Green Technology Corporation, Malaysian Venture Capital and Private Equity Association (MVCA), SME Corporation, Malaysian Investment Development Authority (MIDA) and Agensi Inovasi Malaysia (AIM).

Biomass industry members from the private sector and research institutions were also represented during the networking session, which includes MTS Fibromat (M) Sdn. Bhd., Universiti Teknologi Tun Hussein Onn Malaysia, Panima Energy LLP and Global Green Synergy Sdn. Bhd.



MYBIOMASS shipped 12 Tonne of Oil Palm Biomass to Italy

MYBiomass Sdn Bhd, a unit of the Malaysian Industry-Government Group for High Technology (Might), has shipped 12 tonnes of oil palm biomass to a pilot plant in Italy which converts the raw material into industrial sugar.

The shipment is part of initial cooperation between Might, plantation conglomerates Felda Global Ventures Holdings Bhd (FGVH) and Sime Darby Bhd under the Malaysian Biomass Initiative (MBI), endorsed by Prime Minister Datuk Seri Najib Tun Razak at the second Global Science and Innovation Advisory Council (GSIAC) meeting this month.

The shipment to Italy is intended for preliminary analysis, testing and technology adaptation in the Malaysian market.

The Malaysian feedstock will be tested for its suitability to be converted into industrial sugar commercially which can be fermented into building blocks of high-value green chemicals that can be produced in Malaysia.

If the raw material is found to be adequately scalable at a commercial level there are plans with the three-party venture to build a plant in Malaysia that can help deliver a significant value boost to the current crude palm oil production.

The joint venture is also studying the feasibility of a project to convert the oil palm feedstock into high-value green chemicals.

The intellectual property, gained during the testing phase, has the potential to make Malaysia a world producer of biomass-based green chemicals.

Vyncke Aims to Expand its Biomass Energy Technology Business in Malaysia

Belgium-based Vyncke Company, a global leader in technologies generating energy from combusting various types of waste, is leveraging on its successful projects in producing clean energy in Malaysia as a reference for new assignments in Asia and beyond.

It aims to grow its regional business by showcasing its biomass energy technology and expertise of its Malaysian team in successfully producing energy for a wide range of industries from rubber glove production to electrical power plants.

The company’s Asian operations currently contributes 33 per cent towards its overall revenue with Malaysia accounting for 12 per cent.

Vyncke’s first wood waste power plant in Malaysia was commissioned in 1993. This had led to numerous reference projects to date, including two massive 12 megawatt (MW) power generating facilities in Sandakan, using 100 per cent empty fruit bunch (EFB) waste from the oil palm industry. Both plants generated sufficient electricity to power some 12,000 homes in Sandakan.

The company recently secured another power plant energy project in Teluk Intan, Perak, which would generate 12.5 MW of electricity valued at RM26 million per annum. Vyncke’s palm oil biomass energy plant was the only one in the market which was exclusively powered entirely by EFB.

Gevo to Build World’s First Bio-isobutanol from Biomass in Malaysia

US-based biochemical company Gevo Inc will invest RM1.65bil to build the world’s first bio-isobutanol from biomass manufacturing plant at the Kertih BioPolymer Park in Terengganu.

Slated for full operation by 2015, the 60,000-tonne bio-isobutanol production plant will be constructed in phases on 40ha.

It is expected to generate RM5bil of cumulative gross national Income by 2020, and provide about 200 jobs.

Gevo is a leading renewable and advance biofuels company that is developing bio-based alternatives to petroleum-based products.

The plant will be a breakthrough as bio-isobutanol will be commercially produced from woodchips and oil palm biomass for the first time.

Industry NewsECER Leads The Way For Biomass-Based Feedstock & Green Energy

The East Coast Economic Region (ECER)’s effort to promote the use of cellulosic feedstock from biomass at the Kertih BioPolymer Park (KBP) receives a major boost with the planting of 40,000 seedlings of Leucaena Leucocephala or locally known as “Petai Belalang” here in Marang.

The “Petai Belalang” plant has been identified as a biomass cellulosic feedstock which will be used at the biorefinery complex in KBP. The “Petai Belalang” trees would be processed into wood chips, which will then be converted into advanced carbohydrates. The advanced carbohydrates will be processed further using biotechnology to produce various types of bioderivatives, including bio-isobutanol. Bio-isobutanol is an essential building block to downstream petrochemical industries and is widely used in solvents, paints, coatings, lubricants, rubber, bio-plastics, bio-fibre and other polymers.

For a start, 40,000 “Petai Belalang” seedlings will be planted on a 2-hectare area in the Merchang Forest Reserve in Marang to provide biomass supply for the biotechnology players in KBP. This development is also part of the Terengganu’s State Govenment’s initiative to allocate 30,000 hectares of land dedicated for the feedstock plantation that will produce 10.5 million tonnes of wood chips annually from the “Petai Belalang” plant.

In addition, wood chips derived from the “Petai Belalang” trees can also be used as a green source of renewable energy. The wood chips will be fermented and turned into green energy in the form of syngas to produce steam, hence serving as an alternative to the traditional energy sources such as oil, gas and coal.

In this regard, the Petai Belalang plantation project is expected to benefit some 3,000 smallholders with monthly potential additional income of RM2,500 per smallholder. The plantation of Petai Belalang will also help revitalise 9,300 ha of existing tree plantations in Terengganu, he added.

Slated to be operational by 2014, the biorefinery complex in KBP will utilise renewable energy from biomass as opposed to natural gas. The total project is expected to generate a cumulative GNI of RM 20.4 billion by 2020 and produce 2,500 green-jobs for Malaysia.



Biomass-SP Around the World

Workshop on “How to Enable Access to Finance for SMEs to take up Sustainable

Production and Consumption

Practices” on April 24, 2012, Istanbul,

Turkey

International Conference on Biomass for Biofuels and Value-Added Products (ICBBVAP) 2012, Kuala Lumpur

Clean Power Asia 2012, Bali, Indonesia

Clean Energy Expo Asia 2012, Bangkok,

Thailand

RM1 billion Domestic Investment Strategic Fund

In July 2012, Prime Minister Datuk Seri Najib Tun Razak announced the establishment of RM 1 billion Domestic Investment Strategic Fund.

The fund will function to harness and leverage on outsourcing opportunities created by multinational corporations operating in Malaysia; intensify technology acquisition by Malaysia-owned companies and enable these companies to secure international standards/certifications in strategic industries.

The fund would be managed by MIDA and granted on a negotiable basis, based on the request of the companies and the merits of each case with the objective of enhancing technological capabilities of domestic investors.

Green Technology Financing Scheme (GTFS) extended with RM2 billion until 2015

In conjunction with the recently published Budget 2013 last August, Prime Minister Datuk Seri Najib Tun Razak announced the Green Technology Financing Scheme (GTFS) will be increased by another RM2 billion (US$655 million) and its lifespan extended from end-2012 to end-2015.

Both the top-ups are aimed at boosting production and utilisation of green technology-based products in Malaysia.

MY2GEN: A soft loan scheme to turn biomass from oil palm into high value feedstock

In line with the National Biomass Strategy, BiotechCorp, in collaboration with the Malaysia Debt Ventures Berhad, will implement a pioneer project known as “MY2GEN” to offer a soft loan scheme to eligible oil palm millers to establish a bio-infrastructure aimed to turn biomass from oil palm waste to high value second generation feedstock with the cooperation of selected technology providers.

The statement said 20 oil palm millers involved in the MY2GEN first phase will produce 200,000 metric tonnes of second generation cellulosic.

It said RM200 million has been allocated for the pioneer project.

“With this initiative and the strategic project outlined to increase business capacity and the country’s transition to commercialisation based on bio, Malaysia’s biotechnology industry is poised to contribute four per cent to the nation’s gross domestic product,” it added.

Policy News

MPOB International Oil Palm Biomass Conference

2012, Kuala Lumpur



Site Visits

Site visit to palm pellet producer, Zenith Agrotech Sdn. Bhd. with Ms. Viktorija Kaidalova, Programme Manager, Delegation of the European Union (EU) to Malaysia

Discussion with PZ Bio Energy Sdn. Bhd.

Mr. William Tong, Millennium Partners Sdn. Bhd. explaining his company’s operation to Dr. Anne-Belinda Bjerre of Danish

Technological Institute (DTI)

Dr. Giuliano Grassi, EUBIA attending to explanation of the Plant Manager during site visit to Greenearth Intl Holding Sdn. Bhd.

A meeting between Wuhan Kaidi Holdings, a biomass power plant company with the State Government of Perak

Site visit to Waris Nove Sdn. Bhd., producer of carboxymethylcellulose (CMC) from palm fibre.

Voluntary Carbon Standard (VCS)Validation Audit Meeting for CE Technology Berhad

Dr. Tan Keok Lye, Managing Director, Matrix PLC Manufacturing Sdn. Bhd. explains his company’s saw dust briquette charcoal manufacturing process to Dato’ Leong Kin Mun.



Biomass-SP in the Limelight



Upscaling Case StudiesIn 2012, Biomass-SP was a part of SWITCH-Asia’s Network Facility Upscaling Studies. The objective of the study is to identify good practices which can multiplied, enlarged and spread beyond the intended target group.

● Access to Finance The report presents insights based on project efforts towards

enabling access to (green) finance schemes for SMEs.

● Linking to Policy Makers The report shows how projects can play a role in policy-

making process from problem framing to implementation.

For more information, please visit http://www.switch-asia.eu/switch-learn/scp-tools-and-concepts/up-scaling-case-studies.html.

Office of Biomass-SPNo. 20, Jalan Diplomatik, Presint Diplomatik, 62050 Putrajaya, Malaysia.Tel: +603-8884 8882 Fax: +603-8884 8838 E-mail: [email protected]: www.biomass-sp.net

Biomass-SP Update

Upcoming Activities

Biomass-SP receives special mention in the EU DEVCO Communication Award 2012Biomass-SP recently received a Special Mention

in the Asia category of the European Commission’s Development & Cooperation (DEVCO) Communication Awards 2012. The jury lauded the project’s successful three-year local media campaign which highlighted the EU’s action in the area.

The aim of the award is to identify and reward the best projects in terms of communication. In a highly competitive process – hundreds of projects worldwide that are co-financed by the European Commission’s Directorate General for Development and Cooperation (DEVCO) are potentially eligible – projects will be assessed on the quality, impact and innovation of their communication activities. 37 EU-funded projects from around the world submitted entries this year.

4th SWITCH-Asia Networking Event

Biomass-SP attended the 4th annual SWITCH-Asia Networking Event, held in November in Plaza Athenee, Bangkok, Thailand.

In particular, the project was delighted to make acquaintance with Greener Construction Project, Mongolia which make use of fly ash produced from combustion of coal in the construction sector, as well the Waste to Energy from Rice Milling Sector, Cambodia (http://www.snvworld.org/node/1795) which aims to promote the use of rice husk gasification technology in rice mills to generate energy.

Capacity Building Programme (CBP) on Commercialisation of Sustainable Biochar

March/April 2013, Kuala Lumpur

The CBP will cover an overview of biochar industry e.g. production technologies, application in agriculture and non-agriculture sectors, international biochar standards, and the economics and sustainable business models for biochar.

Capacity Building Programme (CBP) on EU Market Access Opportunities for Biomass Products/Green Procurement Opportunities

June/July 2013, Kuala Lumpur

The CBP will be organized to introduce products and environmental performance standards required by the EU for import of biomass-related products. Relevant EU trade counsellors and Malaysian companies that have successfully exported to the EU will be invited to share their perspectives.

Knowledge Transfer Seminar

October/November 2012, Kuala Lumpur

The seminar will be organised to recognised top performing SMEs under EUM-BENP and to allow SMEs to share their successful stories in the implementation of business and environmental services under EUM-BENP.

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