Yurugi Yoshiko (Chief Representative for Asian Region, New Energy and Industrial Technology Development Organization (NEDO) Bangkok Office)

NEDO is a national research and development agency in Japan established under the umbrella of the Ministry of Economy, Trade and Industry (METI) in 1980 with missions of "Addressing energy and global environmental problems" and "Enhancing industrial technology". The Bangkok office covers 17 countries including 10 ASEAN countries where we conduct projects. In order to maximize the result of R&D activities, we implements projects through the framework of collaboration among industry, academia and government.

There are mainly three support programs for global demonstration projects: (1) International Demonstration Program on Japan's Energy Efficiency Technologies, (2) Program to Facilitate Private-Sector-Led Promotion of Low Carbon Technology Overseas, and (3) International Joint Research and Development Program on Innovative Technology in Clean Energy. Giving the example of utilizing these schemes in the BCG field in Thailand, I would like to introduce the case of energy-saving cellulosic sugars production demonstration project from surplus bagasse. Bagasse, also known as residue, left after extraction of juice from sugarcane, is used as a raw material for bioethanol production, which can also produce high value-added products such as polyphenols and oligosaccharides. With this project, we expected to achieve 50% energy consumption saving, compared to that of a conventional evaporation process.

If you have any questions or suggestions regarding NEDO's support programs, please feel free to contact the NEDO Bangkok office.

Sekiyama Kazuhide (Director and Representative Executive Officer, Spiber Inc.)

Our company is founded in 2007 as a university spin-off, with approximately 260 employees including in Thailand.

By combining 20 types of amino acids, proteins can be designed for diverse kinds of raw materials and a wide range of uses. The first mass production plant was built in Thailand because of the abundant protein raw materials such as sugar cane. Our key technology is a fermentation process to produce a protein-based product so-called “Brewed Protein”. This Brewed Protein is a bio-based material that use no fossil resources with excellent biodegradability causing no negative impact on marine ecosystem. With this strength, there are strong need from global apparel industry which are more environmental-friendly material. In addition, as a kind of lightweight material/fiber, its application for transportation equipment is also promising.

We decided to enter Thailand in 2018 and finally began to operate a mother plant with an annual production capacity of over 100 tons, in March this year. In this regard, we expected to start its full-scale commercial production by the end of this year.

We believe that the BCG economy will be one of the leading global trends in the future. Our company will thus act as a world class player in the field of proteins and push forward this endeavor in Thailand.

Miwa Motokazu (General Manager, Global Planning & Marketing, Green Planet Project, KANEKA CORPORATION)

As a chemical manufacturer, we have developed a wide range of businesses, from food, clothing fiber, and housing to medical care. Amid growing concerns over the plastic waste issues, we would like to contribute it with our biodegradable polymers named “Green Planet”.

Green Planet is material with 100% bio-based and high biodegradability under various conditions. Green Planet is produced by microbial fermentation from plant oils. Green Planet is biodegraded into water and CO2 by micro-organisms, even when leaked into the environment. It biodegrades not only in soil, where microorganisms are abundant, but also in seawater, where biodegradation has been considered difficult. The speed of decomposition varies depending on the product and the environment, for instance, straws using Green Planet were able to be decomposed within 3 months in the seawater around Hyogo Prefecture.

We are obtaining the certifications for biodegradation of Green Planet in major markets. For instance, in Europe where certification standards are well developed, we have obtained four types of biodegradability certifications from soil to marine, as well as the biomass-based and food contact certifications. While in Thailand, we are currently in the process of acquiring FDA certification for food applications.

Green Planet can be easily molded like conventional fossil-based plastics. We utilize it for producing shopping bags, straws, tray, and cutleries etc.

As our business originally started in Japan, followed by the United States and Europe, we also however fully recognize that Southeast Asia is also a major market, which we hope to further strengthen/expand our business activities in the future.

• Mr. Kubota Yasuhiro (Managing Executive Officer, CEO for Asia & Oceania excl. East Asia, Mizuho Financial Group, Inc. / Mizuho Bank, Ltd.)

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  Investment related to the BCG economy from Thai local companies as well as foreign companies including Japan is growing steadily, fueled by the fact that SDGs & ESG are becoming more common, along with stringent regulations on waste plastics and climate change in many countries.

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  Thailand ranks as the 6th global contributor to marine plastic waste, which is also recognized as a social issue. In 2019, Thailand formulated a roadmap on plastic waste management. In January this year, the Thai Prime Minister also announced the BCG economy as a part of Thailand’s National Agenda, implying that Thailand positions the BCG economy not only as an environmental policy but also as a key driver for the country’s growth. Thai companies are involved in a wide range of activities, including chemical recycling, recycled plastics and biomass energy and both government and private sector have seriously worked on the BCG economy, which require us to respond rapidly in terms of investment.

• Mr. Sekiyama (Spiber Inc.)

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  We chose Thailand as our mother plant because of the stable procurement of good quality raw materials.

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  In addition, the supply chains of both apparel and transportation equipment industries, are well established in Thailand as also aligned with our focus.

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  Last but not least, the continued support of Thai government is also major factor for our decision on its factory location and future possible expansion.

• Mr. Miwa (KANEKA CORPORATION)

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  Thailand is an economically developed country with a geographical advantage in Southeast Asia, where exists a great demand for plastics.

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  Furthermore, under Thailand's policy of being a tourism-oriented country, the people cherish the natural environment including the ocean, which well corresponds with our values and biodegradable products.

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  As per our company’s successful products, we establish factories covering worldwide demand in four regions; Japan, the United States, Europe, and Southeast Asia, and in the future, we would like to produce Green Planet in Thailand and other ASEAN countries.

• Ms. Yurugi (NEDO)

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  Among the four pillars of the BCG economy introduced earlier by Ms. Duangjai of BOI, we could see the promising businesses especially in the fields of food & agriculture and health & medicine. For example, in Thailand, soybean-based meat, bean-based dairies, special sugars for diabetics, etc. are being developed one after another. In addition, unique developments such as inspection of contaminants in drinking water and water purification via animal bones are being carried out.

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  The Thai government also plans to introduce recyclable biomass-derived plastics by 2030, with prediction of increasing demand for biochemical products in the future.

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  In my opinion, the combination of these technologies for (1) efficiently manufacturing primary processed products, as well as final products from abundant bioresources, (2) stable supply of crops and other materials, and (3) digitalization, will be very promising in Thailand in the future.

• Mr. Miwa (KANEKA CORPORATION)

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  We rather see other companies in the same industry manufacturing biodegradable plastics as our partners to expand the new market together. We sometimes use biodegradable plastics from other companies because each material/product has its own characteristics and different merits/demerits. Among various biodegradable plastics, the strong feature of our Green Planet is the ease of decomposition in seawater.

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  We have also been engaged in fermentation technology as well as plastics production for a long time. Accumulated technologies and know-how in both fields are our core competence enabling us to develop Green Planet.

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  We also focus on being a healthy company and would like to consider a wide range of possibilities for collaboration with various companies.

• Mr. Kubota (Mizuho Financial Group, Inc. / Mizuho Bank, Ltd.)

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  There are four high potential areas that Japanese companies could succeed at ;(1) Biodegradable Plastics, which is a hot topic today. (2) Biotechnology, including the areas of agriculture and healthcare, apparel, cosmetics, fragrances, food additives, and so on. The remaining two are (3) Thermal Recycling and (4) Chemical Recycling. Thermal recycling is a kind of approach which pursues short-term outcome, while chemical recycling aims for realization of a full-scale circular economy in the long-term future.

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  Regarding thermal recycling, currently, final disposal of waste is not properly done in Thailand. This is where Japanese plant engineering companies with technical capabilities and expertise can contribute.

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  Regarding chemical recycling, Thailand's first demonstration plant went into operation this January, and the technology is expected to become widespread. Japanese companies can contribute in such field with gasification technology and the technology that can return raw materials to monomers.

• Mr. Miwa (KANEKA CORPORATION)

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  The cost competitiveness of petroleum-based plastics is very high. As a private company, we will certainly make our efforts to reduce the cost and scale up the biodegradable plastics. We believe that we can accelerate our business if there is a government support measure in terms of cost.

• Mr. Sekiyama (Spiber Inc.)

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  I agree with Mr. Miwa. The society, as a whole, has to bear the cost to some extents because it is related to petrochemical products which however would not be reflected in the consumers’ prices. In this sense, the introduction of plastic tax should be considered which its tax revenue collection could be used for innovation enabling to also accelerate the diffusion of BCG related products.

• Ms. Yurugi (NEDO)

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  I would like to introduce the international demonstration support programs again. As a first step, we provide support for investigation on policy and business environment in a particular country. In addition, NEDO and the local government/counterpart will sign a MOU in order to raise awareness of the project in the local government/counterpart and lay the foundation for cooperation among stakeholders for future dissemination.

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  For example, as the increasing number of used vehicles, also called ELV (end-of-life vehicle), in Thailand along with inefficient dismantling process and system, we thus started the demonstration project of an ELV recycling system. We cooperate with Thai government to establish efficient dismantling process and international resource circulation system as well as institutional design.

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  Under such support framework, NEDO will support Japanese companies to enter the new markets.

• Mr. Kubota (Mizuho Financial Group, Inc. / Mizuho Bank, Ltd.)

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  Green business is not an easy one. Energy consumption and CO2 emissions in the ASEAN region are expected to increase in the future. Amid the increasing energy demand, it is necessary to make a long-term plan to introduce low-carbon and decarbonization technologies.

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  According to “Thailand Power Development Plan 2018-2037”, before 2037, 60% of the newly developed energy sources will be renewable energy and gas-fired power. The number of companies which have declared carbon neutrality in the medium to long term is increasing. We can also see momentum of development in distributed power sources including EVs and smart grids. Thailand is relatively advanced in the green field in SEA.

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  However, for the whole ASEAN region, efforts in the green field are still limited and require more medium- to long-term efforts through international cooperation especially in term of planning and local governments’ measures/incentives on decarbonized projects.

• Mr. Miwa (KANEKA CORPORATION)

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  Realizing economic growth and responding to environmental issues should be pursued hand in hand. From a business perspective, we will do our best to contribute to the protection of beautiful natural environment.

• Mr. Sekiyama (Spiber Inc.)

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  We have been accumulating technologies with the NEDO’s support for many years. We would like to create a larger industry by combining the seed of our technologies with Thailand's abundant bioresources.

• Ms. Yurugi (NEDO)

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  There are many business opportunities in the BCG field in SEA. In the course of accelerating technological innovation, we think that the term “premature” is unnecessary in the process of introducing new RD&D projects. In order to move into next stages, please make full use of NEDO's support programs.

• Kubota (Mizuho Financial Group, Inc. / Mizuho Bank, Ltd.)

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  Most of the Thailand companies have declared the SDGs and the BCG economy as their growth strategies with possible collaboration/partnership with Japanese companies. We thus would like to support the companies interested in the BCG economy especially in the areas of market research, partner referrals, and funding.