THE NEW FEEDSTOCK FOR THE B IOBASED INDUSTRY !

A D V A N C E D

BIOGAS

{ } 1 SNAPSHOT THE NATURAL GAS

INDUSTRY  

ASEAN: ENERGY DEMAND PROJECTION

ASEAN: NATURAL GAS COMSUMPTION vs PRODUCTION BY COUNTRY (2012)

TRANS-ASEAN GAS PIPELINE

8877 KM PIPELINE

4.6 METRE FOR EVERY KM SQUARE

1889 KM PIPELINE

3.7 METRE FOR EVERY KM SQUARE

1889KM PIPELINE

14.4 METRE FOR EVERY KM SQUARE

MALAYSIA: GAS CONSUMPTION

0  

1000  

2000  

3000  

4000  

5000  

6000  

7000  

8000  

9000  

1   2   3   4   5   6   7   8   9   10   11   12   13  2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011   2012  

MALAYSIA: GAS IMPORT & EXPORT VOLUME

IMPORT

EXPORT

Source: Department of Statistics, Energy Commission

KTOE  

NATURAL GAS ALLOCATION IN MALAYSIA

{ } 2 BIOGAS

MARKET SIZE OF THE INDUSTRY

RM 8.3 BILLION

RM 12 BILLION

RM 18 BILLION

RM 6.5 BILLION

RM 45 BILLION

PHILIPPINE MALAYSIA THAILAND INDONESIA SOUTH EAST ASIA

Source: Pike Research (Cleantech management report)

BIOGAS PLANTS

68 1,010 20 BIOGAS PLANTS

BIOGAS PLANTS

TOTAL INSTALLED BIOGAS PLANTS AS OF 2014

PALM OIL MILLS

434 MILLION MT

CPO

20 BILLION M3 METHANE

1

MALAYSIA

RM 2.6 BILLION Installation of anaerobic digesters facility

RM 10.2 BILLION Installation of power generation facility & FiT

RM 4.4 BILLION Installation of compressed biogas facility & sales of CBG

POTENTIAL MARKET SIZE: 2022

MAPPING OUT THE RENEWABLE  

ENERGY  

LANDSCAPE  (POWER GRID) IN PENINSULAR  MALAYSIA  

{ } 2 BIOTECHNOLOGY ADDING VALUE TO

THE BIOGAS INDUSTRY

CONVENTIONAL P R A C T I C E O F B I O G A S I N D U S T R Y

THE

RM 8.3 BILLION INDUSTRY

BIOTECHNOLOGY A P P L I C A T I O N S

THE

METHANOTROPH MICROBE / ENZYME

YIELD AMPLIFICATION 3X MORE BIOGAS

BIOPROCESSING/ BIOREFORMING

PROTEIN FEED

BIOMATERIAL

BIOFUEL BIOGASOLINE

BIOETHYLENE BIOMETHANOL

BIOAMMONIA BIO-DME

RM 20 BILLION INDUSTRY

DIESEL $809B JET FUEL

$309B

PLASTIC ADDITIVES

$37B

INDUSTRIAL LUBRICANT

$24B

SYNTHETIC & NATURAL RUBBER

$13B

BULK POLYMERS

$309B

SURFACTANTS $22B

COSMETICS, FLAVOURS&

FRAGRANCES $32B

AUTOMOTIVE LUBRICANT

$24B

ADDRESSABLE MARKET FOR BIOBASED PRODUCTS

BIOCHEMICALS VALUE

BIOMETHANOL

BIOGASOLINE

BIOETHYLENE

PROTEIN FEED

BIOMATERIAL

USD2,000 / MT

USD1,300 / MT

{ } 3 BIOGAS & BIOTECHNOLOGY

TECHNOLOGY ADOPTION TIMELINE

ANAEROBIC DIGESTERS

UPGRADING TECHNOLOGY

MICROBES / ENZYME

FORTIFICATION

POWER GENERATION

CBG TRANSPORTATION

LIQUEFACTION BIOGAS

OPTIMIZED BIOGAS YIELD (INCREASED EFFICIENCY)

BIO-DME

BIO-METHANOL

BIO-GASOLINE

PROTEIN FEED

BIO-ETHYLENE

BIO-ETHANOL

BIO-AMMONIA

1980’S 1990’S 2000’S 2010 2015 2018 2020

BIOTECHNOLOGY PROCESS CONVENTIONAL PROCESS

ADVANCED BIOGAS INDUSTRY PLAYERS

Investors set up JV for biogas liquefaction co-located at Philippine sugar mill

“ “

In the Philippines, Aboitiz Equity Ventures has set up a JV with Gazasia called Aseagas Corporation and will invest in a 9,000 ton per year biogas liquefaction plant co-located a sugarcane mill in Batangas Province as its first project. The fuel will be used to power buses and trucks. Cryostar will build the liquefaction machinery.

May 29, 2014

{ } 4 MALAYSIA: ECONOMIC ANALYSIS

MALAYSIA: ECONOMIC ANALYSIS

POWER GENERATION (within 10km radius from grid)

COMPRESSED BIOGAS (within 250km radius from

nearest offtaker)

INVESTMENT

OPEX

PROFIT

RM18 MILL RM25 MILL

RM720,000 RM2.7 MILL

RM1.20 MILL/YR RM1.8 MILL/YR

*Based on 60 MT/Hr FFB Processing Capacity Palm Oil Mill

MALAYSIA: IMPLEMENTATION STRATEGY

PHASE 1 (2015-2020)

PHASE 2 (2015-2020)

PHASE 3 (2016-2024)

PHASE 4 (2018-2028)

PHASE 5 (2020-2030)

BIOGAS All palm oil

mills equipped

with biogas facility by

2020

POWER 30% of palm

oil mills located

within 10km radius from

grid

CBG 70% off-grid

mills, equipped

with upgrading facility for

CBG

LIQUEFACTION & GRID INJECTION

Reduces logistics cost by 4X compared to CBG transportation

cost

BIOTECH Those located beyond 250km

radius from nearest offtaker

to adopt downstream production

{ } 5 ECONOMIC IMPACT

BIOGAS INDUSTRY

BIOECONOMY RM 150 BILLION

Biogas contribution: RM20.2 B (15%)

BIOGAS CONTRIBUTION BIOECONOMY MALAYSIA

GNI BY 2020: RM2.4 BILLION

EMPLOYMENT: 27,000

{ } 6 MALAYSIA: INCENTIVES

INCENTIVES FOR BIOGAS INDUSTRY

GREEN TECH

FINANCING SCHEME

BIONEXUS STATUS: HOW IT WORKS?

GREEN TECH

FINANCING SCHEME

{ } 7 BIOGAS MALAYSIA

WAY FORWARD

THE TARGET:

10% OF DOMESTIC NATURAL GAS REQUIREMENT OR 50MMSCF/D IS SUPPLIED FROM BIOGAS BY 2030

250MW OF OUR NATIONAL ELECTRICITY REQUIREMENT IS SUPPLIED USING BIOGAS BY 2025

ALL 434 PALM OIL MILLS ARE EQUIPPED WITH BIOGAS FACILITY BY 2020, THUS ACHIEVING 50% OF OUR COP-15 COMMITMENT

STRENGTHS CHALLENGES WORLD CLASS COMPANIES & CONGLOMERATES i.e. SIME DARBY, PETRONAS, FELDA, GENTING, IOI

LIMITED AREA FOR PLANTATION EXPANSION, FORCING PALM GROWERS TO VENTURE FURTHER DOWNSTREAM

READY & WELL-ESTABLISHED INFRASTRUCTURE, DEDICATED, CUSTOMIZED INDUSTRIAL PARKS

LIMITED TECHNOLOGY KNOW-HOW, WILL REQUIRE STRATEGIC PARTNERSHIP WITH TECHNOLOGY PROVIDERS

ADVANCED ENGINEERING CAPABILILTIES FROM BOTH PALM OIL & THE PETROCHEMICAL INDUSTRIES

LIMITED EXPERIENCE IN SCALING UP BIO-BASED PROJECTS

PROVIDE OPPORTUNITIES TO COMPLEMENT WITH THE STRATEGIC PROJECTS. i.e. PETRONAS RAPID, JOHOR & PETRONAS GIPC, KUANTAN

VERY COMPETITIVE REGIONAL INVESTMENT LANDSCAPE

To ensure seamless implementation of the biogas applications: •  Work closely with industry players to strategize on the grid connection strategy

•  Enhance awareness within the palm oil industry players on the economics potential of biogas

•  Appropriation of infrastructure grant from the renewable energy fee collected

by SEDA for biogas to electricity grid connection)

•  Economic Corridors Agency to provide biogas storage tank facility within their park for downstream consumers

BIOTECHCORP NURTURE AND ACCELERATE GROWTH OF MALAYSIAN BIOTECHNOLOGY INDUSTRY

BIOTECHCORP’S ROLE IN BIOGAS INDUSTRY

•  To take the initiative to consolidate with the myriad agencies and

stakeholders in the industry to create a commercial path for the development of biogas in the country.

•  To support the national strategy to emphasis on research and

development in biogas industry and to turn biogas into higher value products.

•  Using Biotechnology as the game changer of the Bioeconomy of the

country.

SEE YOU

THANK YOU