Policies, progress and direction of the bioplastics industry

The Policies and Direction of the Bioplastics Industry in Thailand Dr. Pipat Weerathaworn President of Thia Bioplastics Industry Association (TBIA) The 3rd International Boutique Green Packaging Conference 2013 21 November 2013 Hall D, room 2, Jakarta International Expo, Kemayoran, Indonesia

Thai Bioplastics Industry Association (TBIA)

Association : สมาคมอุตสาหกรรมพลาสติกชีวภาพไทย (Thai Bioplastics Industry Association)

Found : 2007 (6 years) No.of members: member 46 companies Committee : 17 Vision : Thailand to be a regional leader for the commercial application and development of bioplastics, contributing to environmental protection by better waste and green house gas emission management 2

Outline of Presentation

Overview of Bioplastics Industry Bioplastics Investment & Opportunities in Thailand Bioplastics Policies Support in Thailand Direction of Bioplastics Development in Thailand Conclusion

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Overview of Bioplastics Industry

World Bioplastics business • Market • Product development AMERICA

Supported Policy Feed Market Technology

• • • •

BRAZIL

Supported Policy Feedstock : corn Bioplastics market 40% Technology owner

EUROPE

CHINA

JKT

THAILAND MALAYSIA • cassava/sugar cane • joint venture

• attractive investment policy

• Supported Policy • Bioplastics market 30% • Bioplastics market • Potential technoloty 30% • Potential market with • Technology owner Economic Growth 5 5

Bioplastic Feedstocks Renewable resources are “any natural resources that are capable of being regenerated or replaced by ecological processes on a time scale relevant to their use�.

1st generation 2nd generation Corn Stover

Bagasse1

Cassava

Corn

Grains

Sugarcane

Sugarbeet

Ethanol/ Biopolymers Starch Sugar/ Sucrose

Ferment with Yeast

Cellulose

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Global Applications for Bioplastics in 2020

Packaging Agriculture

26%

Furniture 49%

6% 5% 5% 3% 6%

in 2009 Packaging 16%

Transportation Electric appliances Houseware

Other (fibres and fabrics)

Agriculture

6% 1% 7%

Electric appliances

70%

Houseware Other (fibres and fabrics)

Source: Chemical Market Resources, Inc.

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Global Production Capacity of Bioplastics

by Region in 2011 0.4

18.5

32.8

Europe Asia

in % Total: 1,161,200 t

North America South America

13.7

34.6

Australia

in 2016

0.2 4.9

Europe

45.1

in % Total: 5,778,500 t

Asia

46.3

North America

South America Australia

3.5

Source : European Bioplastics/ Institute for Bioplastics and Biocompositeds (Otober 20012)

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Bioplastics Market Projection

ภาพรวมของพลาสติกชีวภาพในตลาดโลก Unspecified

7% AsiaPasific 1%

S.America

1% Europe 25%

USA 74%

2003 0.10 million tons Source: Biowerkstoff-Report, Edition 7, April 2010

AsiaPasific 29%

Europe 37% USA 33%

S.America 18% Asia-Pasific 19%

Europe 26% USA 30%

2007 0.36 million tons

2020 3.45 million tons

CAGR = 37.74%

(estimated)

(อัตราการเติบโตในแต่ละปี)

CAGR = 18.99%

(อัตราการเติบโตในแต่ละปี) 9

Bioplastics Investment & Opportunities in Thailand

Plastic Industry in Thailand no.of plastic product producers by region • Plastic entrepreneur around 3,000 company in 2008 • Around 81% of entrepreneur is SME business • Most plants are located in the middle of Thailand especially in Bangkok & perimeter 85 %, Eastern part 9% • Employment 360,000 Revenue 370 billion bath (include finished plastic product & semi-finished products ) • Equal to 4% of GDP • Plastic resin utilization around 3.2 million tonnes

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Bioplastic Production Chain Farmer / Feedstock Producer

Monomer Producer

Resin Producer

Compounder

Converter

End-Users

Both sugarcane Foreign producer Now plastics were made from petroleum for production of Utilization of & cassava were produce compound resin as raw produced as plastics results (Monomer) for food material to convert to many environmental exported & export but feedstock more problem & containers & products. there’s no than 80%. It’s waste Production capacity 6 MT production of chance to creat management Converter > 3000 polymer value added.

Total value 250,000 MB 12

Potential Biobased Feedstock in Thailand

Sugarcane

มันสำปะหลัง Cassava

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World Sugarcane Producer & Sugar Exporter Pakistan Colombia Philippines Australia 2% 2% 3% 3% Mexico Thailand 3%

China 8%

5%

Argentina 2%

Sugar cane2010

Brazil 51%

India 21%

EU(27)ex.int.

EU(25)ex.int. 8% Australia 8% 8%

Thailand 12%

Brazil 64%

Sugar Exporter 2006 - 2010 Source : FAOSTAT

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World Cassava Producer & Cassava Starch Exporter

Angola 8%

Cassava Producer 2010

Mozambique Viet Nam India 3% Nigeria Ghana5% 4% 22% 8%

Democratic Republic of the Congo 9%

Brazil 14% Thailand 13%

Indonesia 14%

China, Hong Kona SAR 3%

Indonesia 1%

Paraguay 1%

Brazil 1%

Thailand 94%

Cassava Starch Exportor 2006 - 2010 Source : FAOSTAT

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PTT, MCC forms bio-PBS JV PTT, MCC forms bio-PBS JV

MCC is marketing PBS and PBSA under GS PlaTM (Green Sustainable Plastics)

Established in 2011 To be the world first producer of bio-based PBS and PBSA from raw sugar Capacity 20,000 ton/year Holds strong patents of bio-based PBS

3,000 ton/yr PBS 20,000 ton/yr PBS

Source: PTT MCC Biochem Company Limited

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PTT GC invests in NatureWorks PTT Chemical invests in NatureWorks

The leading chemicals company with the broadest expertise in downstream derivatives

 World’s leading biopolymer player  Proprietary PLA biopolymer marketed under the Ingeo TM

,

PTTGC invested in Natureworks in 2011 To be the world producer of PLA

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NatureWorks launch 1st Asia-Pacific Regional Headquarter NatureWorks AP regional HQ in Bangkok NatureWorks announced that the company has located its first Asia Pacific regional headquarters in Bangkok and has expanded its team of senior commercial, managerial and technical personnel to enhance support of Ingeo customers throughout the region and to expand business.

Marc Verbruggen, president and CEO, NatureWorks, stated, “The opening of our first Asian headquarters is an important move as we add support for current customers and introduce Ingeo to many more.

Source: http://www.biofuelsdigest.com/bdigest/2013/01/24/natureworks-selects-bangkok-for-its-first-asia-pacific-headquarters/

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Example of Bioplastics Products in Thailand

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Bioplastics Project at Samet Island Samet Island Famous tourist attraction and national park Area: 3145 rai Population & tourist: around 15,000 Garbage: 6 tonnes/day (organic waste 3 tonnes/day)

Project Objectives To launch campaign & support the use of bioplastics bags in Sorting out organic garbage to produce fertilizer to preserve Environmental and establish sustainable “Green Island�

To reduce environmental problem resulted from plastic garbage in tourist atttraction and national park.

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Bioplastics Utilization in BOI fair 2012

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Eco-wedding Jan 4th 2013

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Zero Waste Home Coming Day; Assumption College Feb 16th 2013

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Bioplastics Policies Support in Thailand

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Government Support

On January 21, 2013, Thai cabinet announced bioplastics support Support Assigned the Ministry of energy as a major agency in cooperation with the Ministry of Agricultural and cooperatives Ministry of Industry, Ministry of Science and Technology, Ministry of Commerce and related parties to consider and set up a mechanism to develop bioplastics industry integrating with private sector from policy formulation, the supply of proper raw materials, promotional measures, and selection of a province as a pilot province which is appropriate to zoning Support Assigned the Ministry of Finance as a major agency in cooperation with the Ministry of Energy, Ministry of Industry, Ministry of Science and Technology, and private sector to come up with the fiscal measures to properly promote the bioplastics industry.

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Roadmap for the Development of Bioplastic Industry

Strategy 1

Strategy 2 Feedstock preparation

Technology creation 1.Support technology movement 2.Technology development

Strategy 3

Strategy 4

Industry and business innovation

Infrastructure construction

1.Industrial business 2.Internal & external marketing

1.Bioplastic standard 2.Environmental conservation, education & public relations

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Specifications for Compostable Plastics

Specifications for Compostable Plastics

มอก. 17088-2555

Thai Industrial Standards Institute Ministry of Industry

24 July 2012

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Direction of Bioplastics Development in Thailand

Bioplastics Standard testing in Thailand

DINCERTCO

ASTM 6400 DIN EN 13432

MTEC

 Biodegradability  Ecotoxicity

TISTR

 Disintegration

DSS

ISO 14855-1 Effect on the quality of the resulting compost; ecotoxicity OECD 208 Disintegration during biological treatment; ISO 16929-scale disintegration test

 Chemical Analysis Effect on the biological treatment process; chemical characterization

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Certificate of Approval

Thailand has developed international certification system for compostable plastics according to DIN CERTCO. Recently, there’s a ceremony to award the certificate of approval for The National Metal and Materials Technology Center (MTEC).

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Compostable Logo Future Worldwide DIN CERTCO

Biodegradable Product Institute

ASTM 6400, DIN EN 13432

ASTM 6400, ASTM 6868

Biodegradable Plastic Society

AIB Vincotte Thai Bioplastics Industry Association EN 13432:2000

OECD301C JIS K 6950 (ISO 14851), JIS K 6951 (ISO 14852), JIS K 6953 (ISO 14855)

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Conclusion

Thailand To be Bio Hub in Asia

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Thailand can take this opportunity by

Short term  Improve cultural practices to increase yield  Transfer appropriate technology to farmers  Reduce losses during harvest and postharvest  Reduce losses during sugar process  Bioplastics Application 34

Medium-Long term  Fermentation technology  R&D: 2nd generation

Bio-based Chemicals hubs  Strategic partners  Market growth-size study

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Thank you!

Questions & Answers

Dr. Pipat Weerathaworn President of TBIA Expert, External Affairs PTT Global Chemical Public Company Limited

E-mail: pipat.we@pttgcgroup.com