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Oil Palm Biomass Industry & The Way Forward
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& The Way Forward
Dato’ Leong Kin Mun
President
Malaysia Biomass Industries Confederation (MBIC)
Presentation Outline
� Introduction to MBIC
� Biomass Value Chain
� Biomass Issues & Challenges
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� The Way Forward
• Formed in 2012 as legacy of the EU-Malaysia Biomass Sustainable Production Initiative (Biomass-SP), a development cooperation programme between the European Union (EU) and Malaysian Government (2010 – 2013)
• Launched by His Royal Highness of NegeriSembilan State, Malaysia.
• Main objective: to promote a growing and sustainable
MBIC Member’s attending Dialogue Session with YBM Yeo Bee
Yin and YBM Teresa Kok.
Main objective: to promote a growing and sustainable biomass industry in Malaysia as well as the ASEAN region
• MBIC members: Over 100 members
• MBIC website: www.biomass.org.my
MBIC Membership Profile include: Biomass stakeholders from various supply/ value chain.
i.e. biofertilizers producers, eco-products manufacturers, technology providers, biomass power
plant, biogas project developers, biomass machinery fabricators, energy pellets producers,
commercialization entrepreneurs, animal feed producers, waste water management, sawmill,
palm oil mill, rice mills and service providers such as certification, green finance, sustainability,
environmental engineering, training and logistics etc.
Malaysia Biomass Industries Seminar 2019
Launching of Malaysia Biomass Industries Reviewby Y.Bhg. Dato' Dr. Tan Yew Chong, Secretary General, Ministry of Primary
Industries & H.E Maria Castillo Fernandez, Ambassador & Head of the
Delegation of the European Union to Malaysia.
Attended by 300
biomass
stakeholders
any form of biologically-derived substance that, if not
utilized would be an economic, environmental and social
liability that needs to be properly disposed.Biomass
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Oil Palm Biomass1) Empty Fruit Bunch
2) Palm Kernel Shell (PKS)
3) Oil Palm Trunks (OPT)
4) Palm Oil Mill Effluent
(POME)
4 Major Directions of Biomass Economic Model
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Biomass Value ChainBiomass Value Chain
FEEDSTOCK: Feedstock availability & Pricing Negotiation
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LOGISTICS: Challenging due to increase of transportation costs and High
Moisture Content
TECHNOLOGY: Viable & affordable technology solutions.
FINANCING: Key enablers to unlock the potentials.
COMPLIANCE: Still slow in taking voluntary initiatives to meet the various
technical and sustainability compliances
MARKETS: Bio-Energy demand locally & internationally; Unlock green
procurement opportunities locally
Approved Green projects with Incentives by the
Malaysian Investment Development Authority (MIDA)
8Source : MIDA
Bio Energy Business Models Comparison
Bio – CNG Venture
Biomass Power Plant
High Hanging Fruits
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Value
Low Hanging Fruits
Fuel Switching / Captive Power
Biomass Pellets /
Bio Gas
Plant
Source: MBIC Stakeholders
Biomass Issues & Challenges
� The Absence of Coal Firing Initiative in Malaysia to boost bio-energy development.
� Feedstock Negotiation vs Right Pricing
� SEDA has highlighted the difficulties of Biomass Power Plant developers to access feedstockon long term basis under FIT initiative.
� Access to Financing
� A used to be friendly financial institutions have blacklisted project financing for biomass powerplant due to the bitter experience for such projects.
10Source: MBIC Stakeholders
plant due to the bitter experience for such projects.
� RE is still a relatively new field to many bankers, especially biomass power plants vis-à-vis tobiogas methane capture projects which are more popular from bankers due to its provenbusiness models.
� Over exposure with TNB for Renewable Energy projects financing (including biogas) alsohinder the project developers to access financing from the banks.
� Lack of integrated business driven studies to cover the whole spectrum of biomasscommercialisation.
� Lack of domestic Green Procurement opportunity for Oil Palm Biomass commercialisation:
� Jaguh Kampung vs World Champion
� VS
� Waste as Commodity: MESTECC Technical Working Group (TWG) on Science,Technology & Innovation (STI) – MEA strategy paper
� Commoditisation of Biomass
� Proposed Malaysia Biomass Taskforce to be championed by MPI; facilitativetaskforce for multi-stakeholders to unlock the potential of biomass as emerging
The Way ForwardThe Way Forward
Niche Products (Bioplastics, 3D Printing Filament etc)
Commoditised Products (Energy Pellets, Bio-Fertiliser etc)
vs
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taskforce for multi-stakeholders to unlock the potential of biomass as emergingcommodity.
� InterUniversity-Industry on Biomass-to-Biofuels & BioMaterials (B2FM) Networkcreated by Dato' Prof Abu Bakar Jaafar, new Chairman of Malaysia Green TechnologyCorporation; MBIC as co-chair.
�� JapaneseJapanese MarketMarket:: GG22GG PalmPalm BiomassBiomass PelletPellet exportexport toto JapanJapan under packaged dealwith Samurai Bond
� The Feed-in-Tariff (FiT) scheme in Japan started in 2012. In order to achieve thetarget share of renewable energy in the energy mix by 2030 (of 22 - 24%), 116.4billion yen (MR 4.28 billion) was allocated to all government ministries andagencies.
�� Develop comprehensive Green Procurement Market for biomass products Develop comprehensive Green Procurement Market for biomass products domestically and links it to SDGs.domestically and links it to SDGs.
(Commodity 2.0 @ Shared Prosperity Vision 2020)
Thank You
Contact Us
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Dato’ Leong Kin Mun
President, MBIC
� Tel : +603 – 8884 8888
� Fax : +603 – 8884 8889
� Website : www.biomass.org.my
� E-mail : [email protected]/ [email protected]
