Biomass is the main source that fuels a circular bioeconomy – a concept that hinges on using renewable natural “capital” to manage land, food, health, biodiversity and industrial systems. Its fundamental components are derived from renewable biological resources.
Arham Abdul Rahman, chief executive officer of Mida, said as resources are becoming increasingly scarce, the ability to maximise and optimise the use of biomass resources not only creates circularity in the bioeconomy, but also contributes immensely to the overall circular economy agenda for the country.
While circularity addresses environmental aspects and climate action, implemented projects must be anchored in all facets of Environmental, Social and Governance (ESG) pillars alongside economic feasibility, to be truly sustainable in the long-term.
“Some of us are looking to other countries when it comes to developing a climate solution, but unknowingly, other countries are looking at Malaysia as a new source of bioresources and a location to scale up these frontier biotechnologies,” he said, adding that Malaysia has drawn the attention of notable bio-based companies from around the world.
As most giant oil and gas companies are aggressively undergoing energy transition, Malaysia needs to position itself as the new base for energy transition locations. It has the potential to become a major producer of green hydrogen and other sought-after biofuels such as Sustainable Aviation Fuel (SAF) by utilising sustainable biomass resources.
Although Malaysia has the building blocks to succeed, it is imperative that it converts resource availability into actual feedstock while also creating a conducive ecosystem for the industry to flourish. Biomass feedstock in the country will need to address areas such as certification and transparency as it positions itself to capture potential business opportunities in this emerging industry.
Malaysia boasts robust agricultural activities that produce sustainable biomass and other by-products. It is also one of the top producers of fossil fuel plastic products, with sales of RM48.46 billion and exports of RM13.3 billion two years ago.
Arham said Malaysia is focused on moving into producing higher-value bio-based products rather than just exporting the raw feedstock or materials in line with the National Investment Aspirations (NIA).
“Hence, thinking circular will help remodel operations and increase competitiveness for the local value chain and future-proof our economy,” he said.
Given the current market trend, going circular is the only viable option moving forward for the business.
He said Mida was open to collaborating with the right partners to make Malaysia their next investment destination to leverage this opportunity.
Presently, Mida facilitates the BioHub Port Project in Sarawak as well as the Sarawak Economic Development Corporation (SEDC), Bintulu Port Holdings, the Port of Rotterdam – Europe’s largest port – and other consortium partners.
The intention is to build a fully bio-based symbiotic industrial complex and integrated seaport in Bintulu. The project, which was announced at the end of 2020, is now in the detailed master-planning stages.
The project aims to not only become a regional nucleus for integrated bio-based investments, but also to enable existing industries in the state to accelerate energy transition goals and climate action by leveraging common infrastructure and resources.
Aside from the economic benefits, Arham said circular and advanced bioeconomy augured well for the environment.
This is especially so when it comes to addressing the waste issue, as it aligns with the demand for more environmentally-friendly products.
“Circular bioeconomy is an area worth looking into when it comes to addressing this issue. A bio-based economy will be a reasonable solution to the world’s problem of climate change and help with rural development,” he said.