MALAYSIAN

BIOMASS
INDUSTRY
CONFEDERATION

Towards Environmental & Economic

Sustainability
in Malaysia
via Biomass Industry
by
TANG KOK MUN
13-FEB-2014

PRESENTATION CONTENTS
Malaysian Biomass Industry Confederation
Status of Biomass in Malaysia
Challenges
Benchmarking of Biomass Utilization
Government Strategies, Policies & Actions
Potential of Biomass to Biochar

Malaysian Biomass Industry Confederation

MBIC is formed in 2012 as legacy of the EU-Malaysia Biomass
Sustainable Production Initiative (biomass-sp.net), a development
cooperation programme between the European Union (EU) and
Malaysian Government (2010 2013)
Main objective of MBIC is to promote a growing and sustainable
biomass industry in Malaysia as well as the ASEAN region
MBIC seeks to represent the industry players in the biomass
industry especially the small & medium companies
Strive to achieve economic and environmental sustainability in
Malaysia via adoption of Sustainable Consumption & Production
principles
MBIC website - www.biomass.org.my

Malaysian Biomass Industry Confederation

ACTIVITIES OF MBIC
Membership Drive
Annual Biomass Asia Conference (upcoming May 2014)
Members Networking Session
Dialogue with Government Agencies
Information Session to Bankers & Investors
Linkages with Universities & Technical Experts
Overseas Promotion of Malaysian Biomass Industry

STATUS OF BIOMASS IN MALAYSIA

Million Metric Tonnes (wet)
(Empty Fruit Bunches)

STATUS OF BIOMASS IN MALAYSIA

Oil Palm Fronds

Oil Palm Trunks

Fruit Bunches
Palm Fruits &
Empty Fruit Bunches

Palm Fruit
Palm Shell

STATUS OF BIOMASS IN MALAYSIA

STATUS OF BIOMASS IN MALAYSIA

STATUS OF BIOMASS IN MALAYSIA

STATUS OF BIOMASS IN MALAYSIA

STATUS OF BIOMASS IN MALAYSIA

CHALLENGES
1. Access to biomass feedstock at - volume & pricing
Current agricultural practice return biomass waste to field
No commodity market for biomass trading
Remote locations of biomass sources - high cost of
transportation
Biomass owners not favorable to long-term supply contract
due to rising demand & pricing of biomass

CHALLENGES
2. Access to financing for biomass ventures
Biomass feedstock supply & pricing risks
Local financiers not familiar with biomass industry
Comparative high investment & long payback period for
biomass ventures

CHALLENGES
3. Lack of support from domestic market
Switch to sustainable production not complemented by
sustainable consumption locally
Most biomass products are for export market to meet
demand for premium green products
Sustainable market initiatives by government slow to be
realized due to lack of commitment from government and
businesses

CHALLENGES
4. Commercialisation of local technologies
Gaps between R&D and commercialization - pilot or demo
plant, lack of market-focused R&D, lack of multi-disciplinary
approach to commercialisation
Local market & financiers risk-averse to local technologies &
products

CHALLENGES
5. Sustainability requirements & certifications
Existing and future requirements on biomass from
sustainable sources esp. contentious issues on exploitation
of primary forests and peatland
Lack of local standards & certifications in biomass feedstock
and products
Low awareness and slow adoption of carbon footprinting to
influence business decisions on sustainability

CHALLENGES
6. Low-value utilization of biomass by local companies
Existing biomass ventures mostly in production of commoditybased products e.g. fibers, compost & fuel pellets
Lack of access technologies to create higher value from
biomass feedstock e.g. eco-products, biochemical & polymers
Lack of technical capacities of local companies esp. small and
medium ones to adopt and apply high technologies in their
ventures

BENCHMARKING OF BIOMASS UTILIZATION

GOVERNMENT STRATEGIES, POLICIES & ACTIONS

GOVERNMENT STRATEGIES, POLICIES & ACTIONS

Feed-in-tariff for
renewable energy
generation

GOVERNMENT STRATEGIES, POLICIES & ACTIONS

Feed-in-tariff for
renewable energy
generation

Investment tax
incentives for green
ventures in Malaysia

GOVERNMENT STRATEGIES, POLICIES & ACTIONS

Feed-in-tariff for
renewable energy
generation

Investment tax
incentives for green
ventures in Malaysia

Green technology
financing scheme
USD1 billion in
subsidized loans

GOVERNMENT STRATEGIES, POLICIES & ACTIONS

Feed-in-tariff for
renewable energy
generation

Investment tax
incentives for green
ventures in Malaysia

Bio-conversion of
biomass into high
value chemicals &
liquid fuels

Green technology
financing scheme
USD1 billion in
subsidized loans

GOVERNMENT STRATEGIES, POLICIES & ACTIONS

Feed-in-tariff for
renewable energy
generation

Bio-conversion of
biomass into high
value chemicals &
liquid fuels
Palm Oil
Industry
Biogas power
generations

National
Biomass
Strategy

Investment tax
incentives for green
ventures in Malaysia

Biomass
Industry
Strategic
Action Plan

Green technology
financing scheme
USD1 billion in
subsidized loans

GOVERNMENT STRATEGIES, POLICIES & ACTIONS

Feed-in-tariff for
renewable energy
generation
Generation of
power to national
electricity grid via
biogas from
effluent waste

Bio-conversion of
biomass into high
value chemicals &
liquid fuels
Palm Oil
Industry
Biogas power
generations

National
Biomass
Strategy

Investment tax
incentives for green
ventures in Malaysia

Biomass
Industry
Strategic
Action Plan

Green technology
financing scheme
USD1 billion in
subsidized loans

GOVERNMENT STRATEGIES, POLICIES & ACTIONS

Feed-in-tariff for
renewable energy
generation
Generation of
power to national
electricity grid via
biogas from
effluent waste

Bio-conversion of
biomass into high
value chemicals &
liquid fuels
Palm Oil
Industry
Biogas power
generations

National
Biomass
Strategy

Investment tax
incentives for green
ventures in Malaysia

Biomass
Industry
Strategic
Action Plan

Promote high
value utilization
of biomass by
small & medium
companies

Green technology
financing scheme
USD1 billion in
subsidized loans

GOVERNMENT STRATEGIES, POLICIES & ACTIONS

Feed-in-tariff for
renewable energy
generation
Generation of
power to national
electricity grid via
biogas from
effluent waste
Development of
market players &
technologies for
biomass pellets &
biochemicals
Investment tax
incentives for green
ventures in Malaysia

Bio-conversion of
biomass into high
value chemicals &
liquid fuels
Palm Oil
Industry
Biogas power
generations

National
Biomass
Strategy

Biomass
Industry
Strategic
Action Plan

Promote high
value utilization
of biomass by
small & medium
companies

Green technology
financing scheme
USD1 billion in
subsidized loans

POTENTIAL OF BIOMASS TO BIOCHAR

Agricultural practice to return carbon & nutrients back to field
Traditional slash-and-burn
Annual rice straw burning in paddy fields
Mulching in oil palm plantation

POTENTIAL OF BIOMASS TO BIOCHAR

BUSINESS & ENVIRONMENTAL MODEL

CO2

BioChar

Carbon
Sequestration
SUSTAINABLE
FORESTRY (Acacia)

BIOCHAR
PRODUCTION

Energy

EXPORT
MARKET
DOMESTIC
MARKET

POTENTIAL OF BIOMASS TO BIOCHAR

Conversion of biomass to biochar in Malaysia is relatively
untapped opportunity
Issues to be addressed
1. Market demand
2. Pricing
3. Specifications of biochar products
4. Sustainability requirements
5. Conversion technologies
6. Capital investment
Technical & commercial viability

THANK YOU!
Q&A
tang.rapid@gmail.com

ABOUT THE SPEAKER

Mr. Tang Kok Mun is an active member of the Malaysia Biomass Industry
Confederation (MBIC), an industry association established in 2012 to advance the
biomass industry in Malaysia. Previously, he has served as the Technical Consultant
for the Biomass-SP project, a joint initiative between European Union and Malaysia to
promote sustainable utilization of biomass resources in Malaysia.
He is also involved in the drafting of a number of action plans along the theme of
sustainable development agenda such as the recent Malaysia Biomass Industry Action
Plan and the Solid Waste Management Plan in Malaysia.
Mr. Tang runs a consultancy business in technology development and
commercialization, carbon footprinting and management, as well as investment and
financing advisory in technology-based ventures. Mr. Tang holds a degree in Chemical
Engineering and an MBA in International Business from the University of Malaya.
Contact : tang.rapid@gmail.com