Takashi Matsumoto, Business Director at AGC Vinythai, talks toIl Bioeconomista. In this exclusive interview with us Mr Matsumoto talks about his company and the future development of bioeconomy in Thailand. “Climate action is urgent in Thailand as we are already living with the effects of climate change including flash floods, heavy rain and extreme temperatures, also in rainy season.“
Interview by Mario Bonaccorso
Mr Matsumoto, could you tell us about AGC Vinythai’s main business?
AGC Vinythai’s main business is chlor-alkali. We also have a biochemicals part to the business as we make epinity, a bio-based Epichlorohydrin (ECH) used primarily in epoxy resins as well as other applications. We have been producing 120,000 MTA bio-based ECH in Thailand since 2012.
As far as you’re concerned, what are the main barriers for the bioeconomy in Thailand and what are the opportunities?
Thailand is an agricultural country and like many Asian countries, it has a wealth of biomass. There are starch crops like sugarcane, cassava and rice, oil crops like palm and coconut and wood and agricultural waste like rice straw and bagasse, as well as byproducts and residues like the vegetable glycerine we use to make epinity. With a total potential of nearly 80 million tons agricultural feedstock per year, the bioeconomy presents a real opportunity for Thailand.
In terms of barriers, I would say that the challenges we face are similar to other regions. Barriers like attracting sufficient investment, needing a coherent policy framework to support the development of the bioeconomy, as well as the need to develop the market across the value chain. Changing weather conditions driven by climate change are a concern in Thailand as they are in all agricultural regions.
In a 2020 biorefining roadmap, the OECD noted that Thailand already has a successful petrochemicals industry and well-developed demand markets for pharmaceuticals, food supplements/nutraceuticals and protein feed.
What role is played by the Bio Circular Green Strategy in the framework of Climate Action?
Climate action is urgent in Thailand as we are already living with the effects of climate change including flash floods, heavy rain and extreme temperatures, also in rainy season.
The Thai government is playing its part in developing the bioeconomy. It introduced the Bio Circular Green (BCG) Strategy to help Thailand recover from the COVID-19 pandemic period. The Bioeconomy pillar of the BCG Strategy focuses on the production of renewable biological resources and their conversion into value-added products. It is a signal that a circular bioeconomy has an important role to play in Thailand’s future.
What are the main differences between the bioeconomy in Asia, USA and Europe, from your point of view?
The USA and Europe may have a head start in the bioeconomy but Asia is not far behind. There are many encouraging case studies in Thailand and other countries, particularly from international companies who have invested in building a bio-based plant or developing collaborations in the region. Asia has a lot to offer, not only in terms of biomass but also skilled workers and a strong higher education system.
How do you see the future of the bioeconomy in Asia?
I believe the bioeconomy can have a real impact on how we make and consume products in Asia, increasing our self-reliance and shortening supply chains. This shift will be driven by the abundance of local biomass and the need to take action on climate change.
There is potential to develop both standalone biorefineries and the integration of bio-based products into existing chemical plants, including petroleum-based chemical plants, as we have done with bio-based ECH production at our plant in the Rayong Province of Thailand since 2012.
In your business, why are sustainability certifications important, also for commodity chemicals?
We believe that sustainability certifications should not only be seen as something for niche “green” products. They are also important for commodity chemicals where the volumes and potential impact are greater.
With epinity, we offer a range of sustainability certifications. Not all our customers need certified material but for those who want to demonstrate their commitment to sustainability, we offer RSPO, ISCC PLUS and USDA BioPreferred, as well as Halal and Kosher certified material.
At a time when many chemical companies have set targets on carbon reduction and going Net Zero, switching to certified bio-based products can help us meet our targets as an industry.
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