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EU-Asia Biomass Best Practices &

Business Partnering Conference 2012

Supporting Ministries:

Ministry of Science, Technology

& Innovation

explored expanding sectors of biomass industry in

Malaysia and the region

Co-funded by:


European Union

Jointly Promoted by:

Association of Environmental
Consultants and Companies of Malaysia

European Biomass
Industry Association

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
MatchMaking and Exhibition.

In this Issue:

The EU-Asia Biomass Best Practices Page 1

& Business Partnering Conference 12

Exploring Green Market Opportunities Page 6

Wokshop on Economic Instruments

for Biomass Industry

Launching of Malaysia Biomass

Industries Confederation (MBIC)

iomass-SP welcomed over

630 delegates from 29
countries at its inaugural
Biomass Best Practices & Business
Partnering Conference 2012, held
from 7 to 10 May 2012 in Kuala
Lumpur, Malaysia.

Page 7

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.

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

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)

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

highlighted growing key sectors in the
biomass industry i.e. bio-energy, ecoproducts 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
Resources, Lafarge, First Climate,
RWE, Port of Rotterdam, etc.

Page 10

Biomass-SP January 2012 - December 2012

EU-Malaysia Biomass Sustainable Production Initiative

Biomass Industry Development in the EU

he EU vigorously promotes
biomass as an alternative fuel,
and as a resource for ecoproducts. 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.

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

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.
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

sector. Agriculture and fisheries will be the

second source. The third will be waste
the contribution of waste is projected to
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

H.E. Vincent Piket, Ambassador & Head of

Delegation of the EU to Malaysia

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

Malaysias Green Economy

to continuously explore biomass utilisation

in construction industry to increase energy
efficiency and at the same time, cutting

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
governments aim to achieve 2080 MW of
energy from renewable resources by 2020.

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 ecoproducts.

here is tremendous potential for

green technology growth in
Malaysia, especially within our
target sectors - energy, construction,

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.
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

However, support from key industry

players will be of paramount importance to
ensure these initiatives a success. Green
technology market leaders could also

January 2012 - December 2012 Biomass-SP

YB Dato Sri Peter Chin, Minister of Energy,

Green Technology & Water

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
commercialisation of tomorrows gamechanging innovations.

Issue 3 : January 2012 to December 2012

High Value-Added Biomass

ith the Prime Minister of

Malaysia advocating Malaysias
development of a bio-economy,
MIGHT has taken up the mantle of re-gearing
Malaysias biomass marketplace towards
high value green chemicals for local and
pharmaceuticals, materials and energy

Tan Sri Ahmad Tajuddin Ramli, Joint Chairman

(Industry), Malaysian Industry-Government
Group for High Technology (MIGHT)

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
downstream users.

Addressing Energy Security, Global Warming & Climate Change

Issues in Malaysia

owards 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.

Prof. Emeritus Dato Sri Dr.

Zakri Abdul Hamid, Science
Advisor to Prime Minister

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.

Sustainable Bioenergy and the Growing Bioeconomy in EU a Driver

for the Malaysian Biomass Sector

t 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

Dr. Ir. Giuliano Grassi,

Secretary General,
European Biomass Industry
Association (EUBIA)

In 2011 Europes 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
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.
Europes 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 biobased industry in Europe, but also pole of attraction
for industries, research and investors to implement
innovative projects in the country itself.

Biomass-SP January 2012 - December 2012

EU-Malaysia Biomass Sustainable Production Initiative

Commercialisation and Financing

Opportunities for Innovative and
Green Projects

arallel to the conference, a Pre-Conference Seminar on

Biomass Commercialisation and Financing was held to
incentives available for biomass
industry development in Malaysia.
Malaysian Investment Development
Authority (MIDA) and Ministry of
Science, Technology and Innovation
incentives and grants available for
Technology Development Corporation
(MTDC) and Intrasys Sdn. Bhd.
outlined venture capital funding

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

Meeting Place for Collaboration Opportunities

eanwhile, 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.

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

January 2012 - December 2012 Biomass-SP

An Exhibition of biomass technologies, products and services by local

SMEs, technology providers, government agencies and international
concurrently and open to all
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
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
Wangeningen University & Research
as Malaysian Green Technology
Centre, the Netherlands
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).

Issue 3 : January 2012 to December 2012

EU-Asia Biomass Best Practices

& Business Partnering
Conference 2012

YB Dato Sri Peter Chin officiating the Exhibition, witnessed by H.E.

Vincent Piket and Dato Leong Kin Mun

Tan Sri Datuk Dr. Ahmad Zaharudin Idrus, Chairman,

Biomass-SP, delivering the Introductory Remarks

Tan Sri Rainer Althoff, Managing

Director, Jatro Singapore Pte Ltd

Mr. Arild Johannessen, Managing

Director, Bio Protein AS

Ms. Norida Abdul

Rahman of MIGHT
chairing the session on
Bio-Based Economy
Mr. Iqbal Huq,
Managing Director,
Cardia Bioplastics
Malaysia Sdn. Bhd.

Crowds at one of the parallel sessions,

Biomass to High Value Chemicals

H.E. Vincent Piket

exchanging his ideas with
EU participants from
Wangeningen University &
Research Centre (WUR)

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

Biomass samples from exhibition

Biomass-SP January 2012 - December 2012

EU-Malaysia Biomass Sustainable Production Initiative

Exploring Market Access Opportunities in the

European Union (EU) for Malaysian Biofertiliser

n 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
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
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.

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
wholesales - up to 20%

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
Companies which produces value added
vermicompost from EFB and POME.

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
Use of such natural products like
biofertilizers in crop cultivation will
Mr. Kester Chin, Greenearth Intl Holdings (M) Sdn. Bhd.
explaining the biofertiliser produciton process to Dr.
Anne-Belinda Bjerre, DTI.

How Green is Your Business? Understanding Carbon Footprint

& Eco-Labelling

nder the EU-Malaysia Biomass

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
Environmental Technology

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
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 EcoLabelling Programme under the Ministry

January 2012 - December 2012 Biomass-SP

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
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.

Issue 3 : January 2012 to December 2012

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.
Figure 2
Figure 1

Implementing Sustainability
Indicators and Economic Instruments
in Biomass Policy Framework

s part of the projects 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
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.

Breakout session on sustainability indicators for biomass industry in

Malaysia, led by Mr. Tang Kok Mun (Biomass-SP) and Dr. Giuliano
Grassi (EUBIA)


Case Study



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

To encourage
production of electricity
from renewable

2. 1% levy for RE

To promote
development of
renewable energy

1. Exemption of 2%
interest on loans for
green technology
2. Sales of greenhouse
gas emission
reduction under
Clean Development
Mechanism (CDM)

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)

3. Eco-labeling of green
products and services

1. Environmental levy on
waste/Effluent fee
2. Palm oil cess

To encourage adoption
of green technology in
To encourage
projects which
reduces emission of
greenhouse gases
To encourage
production and use of
green products
To discourage
improper disposal of
waste from palm oil
To encourage R&D on
palm oil


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

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

To encourage
development of waste
to wealth business

Figure 1 Review of available economic instruments in Malaysia related to

biomass and green technology industry

Biomass-SP January 2012 - December 2012

EU-Malaysia Biomass Sustainable Production Initiative

Stakeholders Consultation Session with Biomass SMEs

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

ithin 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.






Figure 2 - Biomass Value Chain

Online Resource
Updates on Biomass-SPs project
website has been kicked up a notch in
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

January 2012 - December 2012 Biomass-SP

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 projects activities all year round
Programmes (CBPs), the EU-Asia
Biomass Best Practices & Business
Partnering Conference 2012, and
networking sessions.
Visit Biomass-SPs website at www. to get your latest
news on biomass industry in

Issue 3 : January 2012 to December 2012

EU-Malaysia Biomass Entrepreneurs Nurturing Programme

ISO 14001:2004 EMS Implementation

n behalf of the EU-Malaysia Biomass

Entrepreneurs Nurturing Programme (EUMBENP), 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
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


Malaysian Palm
Oil Board

In conjunction with the MPOB

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
Technologies to produce
(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
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.

Malaysia SMEs and EU Companies Joining Hands

n 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.

Continue on page 13
Biomass-SP January 2012 - December 2012

EU-Malaysia Biomass Sustainable Production Initiative

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)

n 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 industryrelevant 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

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


January 2012 - December 2012 Biomass-SP

Issue 3 : January 2012 to December 2012

Malaysia Biomass Industries Confederation (MBIC) kicked-off

Inaugural Biomass Industry Networking Seminar

n 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), governmentlinked 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.

The new Ambassador and Head of Delegation of European Union to

Malaysia, H.E. Luc Vandebon receiving tokens of appreciation from MBIC.

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).

YB Dato Hamzah Zainudin, Deputy Minister of Plantation

Industries and Commodities speaking at the Biomass Industry
Networking Seminar

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.

Briefing Sessions on Biomass Industry

Sectors to Financial Institutions

Mr. Danny Ng, MTS Fibromat Sdn. Bhd. sharing his

companys perspective to members of the
Association of Banks Malaysia (ABM)

ecognising 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
Pellets (Solid biofuel)
Geotextiles/Erosion control
Waste-to-energy projects
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 governments
guarantee on green financing from 60 to
80%. The moves are hoped to increase
the banks 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.

Biomass-SP January 2012 - December 2012


EU-Malaysia Biomass Sustainable Production Initiative

Industry News
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
technology adaptation in the Malaysian
The Malaysian feedstock will be tested for
its suitability to be converted into industrial
sugar commercially which can be
fermented into building blocks of highvalue 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
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
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


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 companys Asian operations currently
contributes 33 per cent towards its overall
revenue with Malaysia accounting for 12
per cent.
Vynckes 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
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. Vynckes palm oil biomass energy
plant was the only one in the market which
was exclusively powered entirely by EFB.
Gevo to Build Worlds First Bioisobutanol from Biomass in Malaysia
US-based biochemical company Gevo Inc
will invest RM1.65bil to build the worlds
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
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 biobased alternatives to petroleum-based
The plant will be a breakthrough as bioisobutanol will be commercially produced
from woodchips and oil palm biomass for
the first time.

January 2012 - December 2012 Biomass-SP

ECER Leads The Way For BiomassBased 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
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 Terengganus State Govenments
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
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.

Issue 3 : January 2012 to December 2012

Policy News

Biomass-SP Around the World

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
companies and enable these companies to secure
international standards/certifications in strategic

Workshop on How
to Enable Access to
Finance for SMEs to
take up Sustainable
Production and
Practices on April
24, 2012, Istanbul,

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.

Clean Power
Asia 2012, Bali,

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 bioinfrastructure aimed to turn biomass from oil palm
waste to high value second generation feedstock
with the cooperation of selected technology

Clean Energy Expo

Asia 2012, Bangkok,

MPOB International Oil

Palm Biomass Conference
2012, Kuala Lumpur

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 countrys
transition to commercialisation based on bio,
Malaysias biotechnology industry is poised to
contribute four per cent to the nations gross
domestic product, it added.

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

Biomass-SP January 2012 - December 2012


EU-Malaysia Biomass Sustainable Production Initiative

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

Voluntary Carbon Standard (VCS)Validation Audit Meeting for CE

Technology Berhad

Dr. Tan Keok Lye, Managing Director, Matrix PLC

Manufacturing Sdn. Bhd. explains his companys
saw dust briquette charcoal manufacturing
process to Dato Leong Kin Mun.

Site visit to Waris Nove Sdn. Bhd., producer of

carboxymethylcellulose (CMC) from palm fibre.

Discussion with PZ Bio Energy Sdn. Bhd.

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

Dr. Giuliano Grassi, EUBIA

attending to explanation of
the Plant Manager during
site visit to Greenearth Intl
Holding Sdn. Bhd.

Mr. William Tong, Millennium

Partners Sdn. Bhd. explaining
his companys operation to Dr.
Anne-Belinda Bjerre of Danish
Technological Institute (DTI)


January 2012 - December 2012 Biomass-SP

Issue 3 : January 2012 to December 2012

Biomass-SP in the Limelight

Biomass-SP January 2012 - December 2012


EU-Malaysia Biomass Sustainable Production Initiative

Biomass-SP Update
Biomass-SP receives special mention in the
EU DEVCO Communication Award 2012
Biomass-SP recently received a Special Mention
in the Asia category of the European Commissions Development
& Cooperation (DEVCO) Communication Awards 2012. The jury
lauded the projects successful three-year local media campaign
which highlighted the EUs 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 Commissions 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.

Upscaling Case Studies

In 2012, Biomass-SP was a part of SWITCH-Asias 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 policymaking process from problem framing to implementation.
For more information, please visit

4th SWITCH-Asia
Networking Event
Biomass-SP attended the 4th annual
SWITCH-Asia Networking Event, held in
November in Plaza Athenee, Bangkok,
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
aims to promote the use of rice husk
gasification technology in rice mills to
generate energy.

Upcoming Activities
Capacity Building Programme (CBP) on
Commercialisation of Sustainable
March/April 2013, Kuala Lumpur
The CBP will cover an overview of biochar
industry e.g. production technologies,
application in agriculture and nonagriculture sectors, international biochar
standards, and the economics and
sustainable business models for biochar.

Contact Us

Capacity Building Programme (CBP) on

EU Market Access Opportunities for
Biomass Products/Green Procurement
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
exported to the EU will be invited to share
their perspectives.

Office of Biomass-SP

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
environmental services under EUM-BENP.

No. 20, Jalan Diplomatik, Presint Diplomatik, 62050 Putrajaya, Malaysia.

Tel: +603-8884 8882 Fax: +603-8884 8838 E-mail:

January 2012 - December 2012 Biomass-SP