Malaysia To Have Region’s First Biomass Plant

Monday, 05 August 2013 Malaysia will be the first in the region to have a commercial- scale biomass-ethanol plant, a boost to the National Biomass Strategy 2020 that aims to make the country the regional leader in highvalue added biomass-based industries. Malaysian interests led by Hock Lee Group has signed a memorandum of understading (MoU) with a foreign consortium, Beta Renewables, to begin a feasibility study to develop Asean’s first commercial-scale biomass-ethanol plant. Hock Lee Group was represented by CEO Yek Siew Liong while Beta Renewables was represented by its business development director Asia Pacific Peirlugi Picciotti. The setting up of the biomass- ethanol plant is in line with Sabah’s focus on growing its green industries. This initiative will be a catalyst for a biomass-based industry cluster with a wide range of new industries such as biofuels, bio-energy and biochemicals. Suitable locations in Bintulu have been identified for the project. Such a cluster is expected to increase the state’s GDP (gross domestic product) as well as create high-value jobs by attracting high-value partnerships with local companies that will also benefit local SMEs, smallholders and local communities. The group’s major shareholders were involved in oil palm plantations, banking and finance and some are still active in major regional furniture manufacturing, steel fabrication and cable manufacturing business. Over the years, the group ventured into residential & commercial property development and investments, hospitality and owns the “Xcel” petrol retail chain in Sarawak. Beta Renewables is a joint venture between M&G Finanziaria of Italy, Novozymes of Denmark and Texas Pacific Group from the US, and owns the patented PROESA technology for the conversion of nonfood ligno cellulosic biomass to ethanol. Beta Renewables has successfully completed the commissioning and start-up of the world’s first commercial scale (60,000 tonnes of ethanol capacity) biomass-to-ethanol plant in Crescentino, Italy. The feasibility study is a result of the National Biomass Strategy 2020 initiatives by Agensi Inovasi Malaysia (AIM). AIM is in close collaboration with the Sarawak State Planning Unit and other relevant state agencies to facilitate the study which is expected to be completed by the fourthquarter of 2013. AIM’s National Biomass Strategy 2020 team has been working with the industry, academia and government stakeholders since 2011 to achieve the objective of positioning Malaysia as the region’s leader for biomassbased downstream activities globally. The MoU coupled with other significant events in Sabah recently is a sign that the industry is embracing the strategy and its highlighted opportunities. Taylor Scott International