20 AUGUST 2014 FOCUS & COMPETITIVE COMPARING MALAYSIAS - PowerPoint PPT Presentation

20 AUGUST 2014

FOCUS & COMPETITIVE

COMPARING MALAYSIA’S BIOECONOMY TO SELECTED ECONOMIES BASED ON CONTRIBUTION TO THE GDP USA USA EUROPE 16% 18% 16% EUROPE CANADA 19% 9% CANADA MALAYSIA 7% 10% DEVELOPED ECONOMY DEVELOPING ECONOMY 2013 2020 BIOECONOMY’S CONTRIBUTION TO THE Russia China 1% NATION’S GDP 2% Thai 2% USD50 BILLION Malaysia India 3% 1% BIOECONOMY’S CONTRIBUTION TO THE NATION’S GDP Business Intelligence & Analytics

THE CHEMICAL INDUSTRY

100 2010 USD 4.0 65 2030 TRILLION 60% 60 55 50 USD 1.2 45 TRILLION 43% 2030 40 35 30 24% 25 21% 20 14% 15 11% 8% 10 7% 7% 5% 5 2010 LATIN REST OF NORTH EUROPE ASIA AMERICA WORLD AMERICA

CONSUMER DRIVEN PRODUCER DRIVEN GOVERNMENT DRIVEN COMPANY SUSTAINABILITY TARGETS COMPANY SUSTAINABILITY TARGETS COMPANY SUSTAINABILITY TARGETS Biobased succinic acid used to 36 billion gallons of biofuels by Source 25% of PET from recycled produce PBS and APG 2022, of which cellulosic fuels or renewable material by 2015 (Alkypolyglucoside) would be 16 billion gallons Reduce manufacturing emissions (2004 levels) 5% by 2015 Cargil/Novozymes partnership to produce acrylic acid Replace 25% of petro-based Biobased, 1,3-PDO, PTT, materials with renewables polytrimethylediol and thermoplastic FQD: relates to the quality of fuels Increase renewable energy use in elastomers, using corn sugar as and the sustainability of the facilities to 30% feedstock feedstock used to produce it in EU nations Increase renewable energy use in facilities to 30% 25% of 2015 net sales from environmentally innovative products Biobased polyethylene production from cane sugar Absolute reduction in GHG by 5% China has a 10% biofuels Biobased polypropylene plant to mandaten by 2020 come online by end of 2013 India has 5% mandate in place; move to 10% expected soon 3 years of experimentation with plant-based plastics launched by Malaysia B5 biodiesel mandate Partnership to commercialize 2 nd four brands generation ethanol using different Philippines E10 ethanol and B2 technologies and feedstock Extensive cooperation initiatives with biodiesel mandate partners to contribute to non-based Biobased succinic acid development renewable materials efforts

BIOCHEMICAL MARKET, 2020: RM 72 BILLION 20% MALAYSIA CHEMICAL MARKET, 2020: RM 288 BILLION

HOW DO WE LEVERAGE ON THE OIL PALM & PETROCHEMICAL INDUSTRIES TO ADVANCE THE BIOBASED INDUSTRY

SPECIALTY FATS MILL REFINERY CONSUMER PRODUCTS OLEOCHEM EDIBLE OILS BIODIESEL FATTY ACIDS SOAPS COSMETICS RBD PALM OIL FATTY ALCOHOLS RBD OLEIN ESTERS FOOD ADDITIVES PFAD GLYCERIN PLASTIC RM80 BILLION 2013

SOLUTIONS THROUGH BIOBASED- TECHNOLOGY

OIL PALM TREE: ‘A MULTI – PURPOSE TREE’ A UNIQUE FEEDSTOCK • • • • • • •

SOLID BIORESOURCES VOLUME BIOMASS CURRENT TYPE USE 33 MILLION MT PER ANNUM COMPOST OIL PALM FRONDS SOLID FUEL 24 MILLION MT PER ANNUM MESOCARP FIBRES SOLID FUEL, 23 MILLION MT PER ANNUM EMPTY FRUIT BUNCHES COMPOST 14 MILLION MT PER ANNUM COMPOST OIL PALM TRUNKS ACTIVATED 5 MILLION MT PER ANNUM PALM KERNEL SHELL CARBON ANIMAL FEED 3 MILLION MT PER ANNUM PALM KERNEL CAKE *Based on 100 million MT FFB production 2013, MPOB

THE BIOCHEMICAL ECOSYSTEM IN MALAYSIA ( SYNERGIZING OLEOCHEMICAL & PETROCHEMICAL INDUSTRIES ) NEW ACTIVITY HIGH VALUE CHEMICALS BIO-CHEMICALS

RM0.5 B POTENTIAL MARKET PER ANNUM SOLID BIORESOURCES RM20 B SUGAR POTENTIAL MARKET PER ANNUM LIGNIN RM100 BILLION

TECHNOLOGY FRONTIER

Adoption of Biobased USD PRICE/MT technology in Downstream Palm Oil Industry (000) 3,000 – 4,000 5 4 3 SPECIALTY BIO CHEMICALS 1,400 – 2,000 2 1,000 – 1,400 800 – 1,000 BASIC 150 OLEO 1 PRODUCTS PALM FRESH CRUDE FRUIT REFINERY PALM OIL BUNCHES PRODUCTS

OVER THE NEXT 5 YEARS

SOLID BIORESOURCES

INFRA & ECOSYSTEM

CHALLENGES

STRENGTHS CHALLENGES LIMITED AREA FOR PLANTATION WORLD CLASS COMPANIES & EXPANSION, CONVINCING PALM CONGLOMERATES i.e. SIME DARBY, GROWERS TO VENTURE FURTHER PETRONAS, FELDA, GENTING, IOI DOWNSTREAM LIMITED TECHNOLOGY KNOW-HOW, READY & WELL-ESTABLISHED WILL REQUIRE STRATEGIC INFRASTRUCTURE, DEDICATED, PARTNERSHIP WITH TECHNOLOGY CUSTOMIZED INDUSTRIAL PARKS PROVIDERS ADVANCED ENGINEERING LIMITED EXPERIENCE IN SCALING UP CAPABILILTIES FROM BOTH PALM BIO-BASED PROJECTS OIL & THE PETROCHEMICAL INDUSTRIES VERY COMPETITIVE REGIONAL PROVIDE OPPORTUNITIES TO INVESTMENT LANDSCAPE COMPLEMENT WITH THE STRATEGIC PROJECTS. i.e. PETRONAS RAPID, JOHOR & PETRONAS GIPC, KUANTAN

THE INCENTIVES

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THANK YOU COMMERCIALIZING INNOVATION READY TO INSPIRE IN BIOTECHNOLOGY