MALAYSIA’S MOVE TOWARDS ZERO SINGLE USE PLASTICS:...

MALAYSIA’S MOVE TOWARDS ZERO SINGLE USE PLASTICS: BIOMASS AS KEY FEEDSTOCK Sabah International Biomass Forum 2019

Somnath Ray, Pöyry Management Consulting 14 October, 2019

COPYRIGHT©PÖYRY SABAH INTERNATIONAL BIOMASS FORUM, MALAYSIA 2 14 OCTOBER 2019

Agenda

• ÅF Pöyry

• The plastic challenge

• Driving forces & key measures to solve the plastic challenge

• Bioplastics scenario

• Key take-aways

• Q & A

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ÅF PÖYRY: QUICK FACTS

SABAH INTERNATIONAL BIOMASS FORUM, MALAYSIA 3 14 OCTOBER 2019

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MANAGEMENT CONSULTING – CONNECTING INDUSTRY INSIGHT

• Industry

• Concept Development

• Operational Services

• Energy

INDUSTRY

• Packaging

• Tissue

• Biorefining

• Virgin & Recovered Paper

• Wood products

• Forestry & biomass

HOT TOPICS

Plastic substitution Food safety Circular economy

Fiber-based packaging

#PlasticsToBio Recycling

Laws & regulations Sustainability

Bio-based plastics Biochemicals Biofuels

14 OCTOBER 2019 SABAH INTERNATIONAL BIOMASS FORUM, MALAYSIA 4

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PLASTIC CHALLENGE: TOP 10 PLASTIC WASTE ITEMS

Ocean Conservancy’s International Coastal Cleanup, 2017


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PLASTIC CHALLENGE: WHAT HAPPENS TO PLASTICS?

Current plastic production amounts to about 400 Mt, of which 3/4 end up as waste. The majority

of this waste ends up in landfills, dumps or in the environment


24 %

14-18 %

58-62 % 20-30 %

* Material collected for recycling. The actual amount of

plastic being transformed into new products is smaller

Source: Pöyry, OECD, Geyer et al. (2017)

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DRIVING FORCES: SOLVING THE PLASTIC CHALLENGE

Governments

Municipalities

Retailers

Brand owners

Consumers

Consumer and

corporate initiatives

concerning plastic

debris and plastic-

free food and

beverage packages

Aiming at

influencing key

players within the

industry to act on

the plastic issue

Sustainability

commitments by

retailers and brand

owners


Influencers

Commitments Laws & regulations Initiatives

Increasing number

of laws and

regulations on

plastic waste

management and

the use of selected

single-use plastics

items

1 2 3

Investors

Producers

Designers

Technology developers

Material scientists

Enablers

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DRIVING FORCES: CONSUMER INITIATIVES

Concerned citizens have been actively pushing industries to join forces in the war against

plastics. Cleaning plastic debris & providing plastic-free packaging alternatives are some recent

concrete actions

The Ocean Cleanup was founded

in 2013 by Boyan Slat

A passive U-shaped system which

collects plastic debris using currents

Aiming at launching 60 of these

floating plastic tubes to remove 50%

of the Great Pacific Garbage Patch

within five years’ time

Other concerned citizens have

started their own initiatives to make

oceans free of plastic

Afroz Shah is a young lawyer from

India who has become synonymous

with the world’s largest beach

clean-up project. Started in late

2015, every weekend since, he has

together with volunteers collected

over 4 000 tons garbage from the

2.5 km beach


A Plastic Planet, is a grassroots

non-profit movement launched in

January 2017

Targeting to reduce using

conventional plastics in food and

beverage packaging

Their first public campaign involves

securing a Plastic Free Aisle in

supermarkets, firstly introduced in

Ekoplaza in Amsterdam

Source: The Ocean Cleanup





In late 2018 it broke apart and was towed to port in Hawaii for repairs.

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DRIVING FORCES: LAWS AND REGULATIONS

Increasing number of laws and regulations have globally targeted at fighting against the plastic

waste problem. Particularly marine litter, single-use plastics and plastic bans have attracted a

great level of media attention


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DRIVING FORCES: BRAND OWNERS’ SUSTAINABILITY COMMITMENTS

Leading brand owners are mainly focusing their sustainability efforts on plastics recycling.

However, several brands also aim at substituting plastic packaging with bio-based alternatives


“to have 100% of plastic packaging reusable,

recyclable or compostable and increase the recycled

plastic content in packaging to at least 25% by 2025”

“to eliminate plastic

packaging from all own-

brand products by 2023”

“to double the recycled content,

recyclability and compostability

and reusability of cups and

packaging by 2022”

“to eliminate single-use plastic

from all packaging. Sustainable

materials in all packaging by

2025, and products by 2030”

“to remove all single-use plastic

products from the IKEA range and

from restaurants in stores by 2020”

Note: Only a few brand owners and their sustainability commitments as an example.

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SABAH INTERNATIONAL BIOMASS FORUM, MALAYSIA 11

Reduction Recycling Substitution

KEY MEASURES: SOLUTIONS TO PLASTIC WASTE CHALLENGE

• Reduced use of

packaging

• Reduced use of single-

use plastic items

• Improved recycling

technologies, recycling

rates and chemical

recycling

• Recyclability of packaging

• Plastic bottle deposit –

potentially also being

applied to other types of

packages; regional and

cultural differences

• Switch from plastics to

alternative packaging

materials, e.g. fiber

1 4 Re-use

• Most food and beverage

packages are single-use

• Re-use is challenging

due to e.g. purity issues

3 2

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KEY MEASURES: RECYCLING

Improved collection and recycling of plastic waste

is the key to reduce environmental burden and

dependency on fossil feedstock

Recycling rates are estimated to be 14–18% globally

Current recycling is mainly open loop mechanical

recycling of sorted high-quality plastics

Higher recycling rate requires improved collection

and development of chemical recycling of low-quality

mixed plastics (closed loop recycling)

Even with higher plastic recycling rates there is still a

market need for fiber-based solutions

Raw materials

Residual

waste

Circular

economy


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KEY MEASURES: COMBINING RECYCLING & SUBSTITUTION

Current status In the future

Moving from a linear to circular business model offers a green future for plastics – new feed

comes from renewable resources


New feed from bio

Closed loop for fossil and bio

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KEY MEASURES: SUBSTITUTION

Fiber and bio-based plastics solutions can offer improved environmental

performance of food packaging, yet, they do not solve the plastic waste challenge

Fiber-based solutions

Many commercially available fiber-based solutions exist

Generally not 100% fiber-based, degradable in nature and repulpable; yet need for barrier

coatings made of plastics

Technical breakthrough in bio-based barriers not yet achieved; on-going research and

development

Recyclability depends on region and country

Bio-based plastics

Bio-based plastics account for <1% of the total plastic food packaging market

Eco-friendly feedstock alternative; yet not necessarily biodegradable in nature

Mainly 1G feedstock; processes using 2G feedstocks are being developed

Bio-based plastics need to be recycled


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Retailer

(Kesko)

Brand owner

(The Walt Disney Company)

KEY MEASURES: SUBSTITUTION CASE EXAMPLES

Note: Pictures of plastic solutions, drinking straws and coffee cups are general packaging pictures and do not refer to any specific brand owner. Only a few substitution cases as an example.

SABAH INTERNATIONAL BIOMASS FORUM, MALAYSIA 14 OCTOBER 2019

Retailer

(Iceland Foods)

Brand owner

(Järvikylä)

Brand owner

(McDonald’s)

Source: Stora Enso

15

Source: Stora Enso

Source: Järvikylä & Woodly

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KEY MEASURES: BIO- BASED PLASTICS

Bioplastics is a family of alternatives to almost every

conventional plastic material and corresponding application

Bioplastics – plastics that are bio based, biodegradable, or both

– have the same properties as conventional plastics and offer

additional advantages, such as a reduced carbon footprint or

additional waste management options such as composting

In 2018, bioplastics represent about one per cent of the about

335 million tonnes of plastic produced annually

The global market for bioplastics is predicted to grow by

roughly 25 percent over the next five years

Biodegradables are the way forward

Source: Pöyry, European Bioplastics Org.


**

PE (Polyethylene)

PET (Polyethylene terephthalate)

PA (Polyamides)

PTT Polytrimethylene terephthalate,

PLA (Polylactic acid)

PHA (Polyhydroxyalkanoates)

PBS (Polybutylene succinate

PBAT (Polybutylene adipate terephthalate)

PCL (Polycaprolactone)

PS (Polystyrene)

PP (Polypropylene)

PEF (Polyethylene furanoate)

ABS (Acrylonitrile butadiene styrene)

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BIOPLASTICS SCENARIO: CAPACITY & USES

Bio-based and non-biodegradable forms the bulk of the bioplastics (2018) with dominant use in

packaging segment

Source: European Bioplastics Org, nova-Institute (Hürth, Germany.


**

PE (polyethylene)

PET (polyethylene terephthalate)

PA (polyamides)


PLA (polylactic acid)

PHA (polyhydroxyalkanoates)

PBS Polybutylene succinate

PBAT polybutylene adipate terephthalate

PCL Polycaprolactone

PS (polystyrene)

PP (polypropylene)

PEF (polyethylene furanoate)

ABS (acrylonitrile butadiene styrene)

Production Capacity 2018 Market Segment 2018

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BIOPLASTICS SCENARIO: CAPACITY GROWTH

The global bioplastics production capacity is

set to increase from around 2.1 million tonnes

in 2018 to 2.6 million tonnes in 2023

Innovative biopolymers such as PLA

(Polylactic acid) and PHAs

(Polyhydroxyalkanoates) are driving this

growth

Bio-based PE (Polyethylene), bio-based PET

(Polyethylene terephthalate) and bio-based

PA (Polyamides), currently make up for

around 50 percent (1 million tonnes) of the

global bioplastics production capacities

Asia remains a major production hub with 55

percent of bioplastics production, followed by

Europe with 19%

More growth in all grades

Source: European Bioplastics Org, nova-Institute (Hürth, Germany.


**

PE (polyethylene)

PET (polyethylene terephthalate)

PA (polyamides)


PLA (polylactic acid)

PHA (polyhydroxyalkanoates)

PBS Polybutylene succinate

PBAT polybutylene adipate terephthalate

PCL Polycaprolactone

PS (polystyrene)

PP (polypropylene)

PEF (polyethylene furanoate)

ABS (acrylonitrile butadiene styrene)

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SABAH PERSPECTIVE: BIOMASS SUPPLY POTENTIAL

Most of the biomass supply comes from residues of oil palm while wood product residues have competing uses


Biomass supply

Million tonnes/year Existing/planned

end-uses

% Volume

mobilised

Currently not mobilised 0% Large, consistent volume but

one-third could be mobilised

Currently not mobilised 0% Inconsistent supply, depending

on replanting cycle

Mulching, power plant,

refinery energy 40% Surplus, currently used for low-

value products

Export, CPO mill

energy, refinery energy 100% High price driven by

competition from export market

CPO mill energy 100% No surplus, all biomass

consumed internally

Bioethanol, pellets 10% Declining forest resource, but

large potential with plantations

WP mill energy,

particleboard, charcoal 100% No surplus, all residues

consumed internally

Description

EFB

1.1

22.8

1.9

OPF

OPT 4.1

PKS

1.9 MF

0.7 Harvest

Residues

0.5 WP

Residues

23.5 0.7 Total

13.2

Palm Oil Plantation WP

COPYRIGHT©PÖYRY SABAH INTERNATIONAL BIOMASS FORUM, MALAYSIA 21 14 OCTOBER 2019

• The solution to the plastic challenge is circular and bio economy at extraordinary scale

• Consumers, brands and governments participation needed

• Reduction and re-use are primary measures, followed by recycling and substitution

• Fiber-based food packaging solutions exist; yet plastics are needed for barrier

• Substitution with bio-based and biodegradable plastics are way forward

KEY TAKE-AWAYS

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Disclaimer

Pöyry reserves all rights to this material. No part of this material may be reproduced or used in any

form without the prior written consent of Pöyry. This material is partly based on information that is not

within Pöyry’s control. Pöyry does not make any representation or warranty, expressed or implied, as

to the accuracy or completeness of the information contained in this material. Pöyry expressly

disclaims any and all liability arising out of or relating to the use of this material. This material may

contain projections which are based on assumptions subjected to uncertainties and contingencies.

Because of the subjective judgments and inherent uncertainties of projections, and because events

frequently do not occur as expected, there can be no assurance that the projections contained herein

will be realized and actual results may be different from projected results. Hence the projections

supplied are not to be regarded as firm predictions of the future, but rather as illustrations of what

might happen.


MALAYSIA’S MOVE TOWARDS ZERO SINGLE USE PLASTICS:...

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