Bioplastics Road Map

National Roadmap for the Development ofBioplastics Industry(2008 – 2012)In accordance with the policy towards“New Wave Industries”NATIONAL INNOVATION AGECYMINISTRY OF SCIENCE AND TECHNOLOGY

Innovation: as new things derived from the exploitation of knowledge and creativity,leading to enhancement of social and economic value.All rights reserved. No part of this publication may be reproduced,Stored in retrieval system or transmitted, in any form or by any means,Electronics, mechanical, photocopying, recording or otherwise,without written permission of the copyright holders.Design byNational Innovation Agency (NIA)73/1 Rama VI Road, Rajdhevee, Bangkok 10400 ThailandTel. +662-2-644 6000 Fax. +66-2-644 8444http://www.nia.or.th

Table of ContentsPageExecutive Summary 1Chapter 1 Current Situation of Bioplastics in Thailand 91.1 Introduction 91.2 Status of bioplastics in Thailand 91.3 Thailand’s readiness for a bioplastics industry 131.3.1 Raw materials 131.3.2 The plastics industry and market growth in Thailand 181.3.3 Government policy and support measures 23Chapter 2 Strategy, Action Plans & Budget 25Strategy 1 Sufficient Supply of Biomass Feedstock 27Strategy 2 Accelerating Technology Development and30Technology CooperationStrategy 3 Building Industry and Innovative Businesses 38Strategy 4 Establishment of Supportive Infrastructure 42Abbreviations 55

Executive Summary1. RationaleBioplastics, as the biodegradable plastics, are plastics which could be derivedfrom plant-based materials or other renewable resources through fermentationprocess. This process requires low energy input and produces the plastics with theability to degrade when being composted, yielding carbon dioxide and water as endproducts. In fact, bioplastics have become one of the most innovative materials whichanswer to the ever-increasing demand for more environmentally friendly solutions.Around the world, especially in the leading industrialized nations, there is a greatawareness in searching for new raw materials or polymers to improve the quality andfunctionality of bioplastics so that they can replace the conventional plastics thatproduced by petrochemical industries.An awareness in using bioplastics can be witnessed in many developedcountries where a wide range of favorable initiatives are put into action, includinggovernment policies, a research and development, and the industrial promotion. Theseresulted in a rapid growth of bioplastics business in a clearly defined direction. TheUnited States, for example, has stepped forward to become the pioneer in bioplasticsindustry as a result of the success in the industrial-scale bioplastics resin production.NatureWork LLC (USA) has successfully produced lactic acids and polylactic acids(PLAs) from corn feedstock; whereas, Metabolix Inc. has developed the technology toproduce PHAs (Polyhydroxyalkanoates) and is constructing its first productionfacility in the USA.This development has been encouraged by the state policies to increase theproduction of biomass-based products from 5% in 2002 to 12% and 20% in 2010 and2030 respectively. Furthermore, 11 states have declared the policies to promote theenvironmentally friendly packaging market. Green Report I and II have also beenissued to serve as the guidelines for advertising eco-friendly products. With regard tothe plastic waste management, MARPOL convention prohibits the dumping of plasticwaste to the sea. These movements arose from the questioning of the conventionalplastics’ inability to degrade naturally and resulted in the initiation of 17 cent perpiece charged for each plastic bag.On the other continent, the European Union also announced a mandate forautomobile industry that, from 1 January 2006 onward, more than 85% (by weight) ofthe vehicle parts must be made of reusable or recoverable materials. Bioplastics,consequently, stand out as one of most sought-after answers for those regulations. Forexample, Germany has exempted the tax for the compostable packaging, while Francerequires that by 2010 all trash bags must be compostable. In Florence, Italy, all foodpackaging must be made from degradable materials. As another example, Denmarkbans the use of water containers which cannot be recovered. In Norway, the UK andIreland, there is a plan to program to lower the consumption of petrochemical-basedplastic shopping bags as these conventional bags must be bought by consumersinstead of be given freely.

Many more countries in Asia-Pacific also join in enforcing laws and measureswith an aim to reduce environmental loads from the growing demands for packaging.In Japan, Green Procurement policies were imposed along with the Revised RecyclingLaws and the Pollutant Release and Transfer Register to counter this problem. InLadakh, India, it is announced that 1 May of every year is the Plastic Ban Day; while,in Bombay and Himachal Pradesh, there is a strict regulation of plastic bags andStyrofoam production. On the other hand, Bangladesh has issued a more strictregulation of countrywide prohibition of plastic bags since 2002. In Taiwan, R.O.C.,the conventional LDPE plastic bag control scheme called “Plastic Shopping Bag UseRestriction Policy” bans all shops from distribute plastic bags and Styrofoamcontainers to their customers without pay.In some regions, bioplastics have been used as a tool for waste management.Taking Australia for example, during the Sydney Olympics Games, bioplasticscontainers and packaging were used and 75% of these bioplastics was gathered forcompost. This greatly eased the burden of having to separate conventional plasticsbefore compost and proved to be very effective in the management of plastic waste.The growth of bioplastics market has been evident in many developedcountries, e.g. USA, European Union and Japan. In Germany, the advances in thebioplastics compounding technology, the blending process of bioplastics resin andother additives to attend the desired mechanical and physical properties, has resultedin the rapid growth of small and medium enterprises (SMEs). Also, the governmentalagencies both at the national and local levels issue tax deterrent for non-degradableplastics making their price higher and in turns helping the bioplastics to staycompetitive.In Japan, the development of bioplastics product has been substantial andrapid. Many large companies, e.g. Sony, Panasonic and Toshiba, have turned tobioplastics for their product packaging, computer devices and compact discs.Considering the business rationalization of bioplastics in the abovementionedexamples, it is apparent that the market share for bioplastics is on the rise andbioplastics is rapidly replacing the conventional petroleum-based plastics. Theproduction capacity for bioplastics worldwide was 360,000 ton in 2005 orapproximately 1% of the total plastics production of 200 million ton per year. Thedemand for bioplastics in the EU is estimated at 40,000-50,000 ton per year with theprojected growth of 20% each year; whereas the bioplastics consumption in Japan isat 15,000 ton per year and this number is anticipated to double each year. On the otherhand, the demand for bioplastics in USA is estimated at 70,000 – 80,000 ton per yearwith the projected growth of 16% each year. All these figures amount to the globalprojected expansion for bioplastics demand of 30% per year.

2. Opportunity for Thailand to Create Well-EstablishedBioplastics IndustriesThailand is an agricultural country which is endowed with biomass materialsand agricultural products including rice, sugarcane, cassava, corn, cellulose, palm, etc.These products contain abundant composition of either starch (carbohydrates), sugar(glucose), or fibers (cellulose). All of which can be used as feedstock for theproduction of bioplastics. Favored with the price competitiveness and strength in thecultivation techniques, Thailand is clearly standing at the prime spot.Cassava starch, one of the most promising potential feedstock for bioplastics,is priced relatively lower than other kinds of starch in the global market. In fact,Thailand has long been the largest exporter of cassava starch. In 2005, the countryproduced 16.94 million ton of cassava roots and exported approximately 4.6 millionton of cassava-based products amounting to 85.5% of the market share which worthmore than 40,000 million baht.The value chain of the production of bioplastics from these agriculturalproducts is another major propelling factor for the development of bioplastics fromcassava feedstock. At present, the processed products from cassava, in the form ofchips, pellets or starch, are still low in price and subject to unreliable global marketboth in the sense of price and demand. These processed products can raise the valueby 2 folds or about 40,000 million baht. However, if cassava is to be used as thefeedstock for bioplastics, its value will increase 10 folds, valued as high as 200,000million baht.Thailand’s readiness in the downstream industries is yet another importantsupporting factor. Downstream plastics industries are very well-established withcapability to produce wide-ranging products. Therefore, a full cycle of bioplasticsproduct development can be achieved in the country once the upstream production isin place. Majority of plastics producers in Thailand is categorized as SMEs (almost4,000 factories). The largest proportion is the packaging products at 41.9%, followedby household products at 16.9%. The rest includes the compounding enterprisesmaking up 5.1% of the industry.Thailand is regarded as ASEAN’s number one plastics exporter and ranksnumber eight in the global market. Notable exported products are films, foil straps,synthetic fibers, sacks, etc. The key markets for Thailand’s plastics export are Japan,USA, Hong Kong, UK, Australia and ASEAN countries. During 2000 to 2003, theexport value expanded by more than 40% with the total value as high as 51,000million baht in 2003. Considering the whole export sector for the country, the plasticsresin and plastics products actually came fourth with the total value of 140,000million baht.Furthermore, Thailand is equipped with researchers and experts covering theentire cycle of bioplastics production process ranging from the upstream, midstreamto downstream industries. About 100 of these personnel are ready and willing to workactively on the R&D with the industrial sector.

3. Thailand’s Environmental IssuesThailand is currently producing 40,000 ton of waste daily (or about 14 millionton per year). Among this is the plastics waste, making up 20% of the mix, and only22% of this plastics waste can be recycled or transformed into fuel. As a result, theremaining 2.2 million ton of plastics waste needs to be disposed each year (PollutionControl Dept., 2005). However, bioplastics will not create such a problem as they canbe degraded naturally in the suitable condition, leaving no other residues but carbondioxide and water. Therefore, bioplastics can be a potential solution to tackle theproblem of the overwhelming plastics waste.Not only bioplastics can be an effective tool for waste managements, but theyalso help combating with various environmental issues including the air pollution(caused by the global warming from the rising carbon dioxide emission, ozonedepletion and haze from fuel combustion), water pollution (e.g. acidification oreutrophication of natural bodies of water), and soil and water problems (e.g. thedeposition of non-degradable plastics). The fact that bioplastics can be degraded bythe activity of naturally occurring microbes means that this type of plastics will notcause the overwhelming load of waste and needs no other waste management such asburning. As the end products from biodegradation are non-toxic, bioplastics can beused effectively in the separation of organic waste for compost.4. Development of Thailand’s Bioplastics IndustryBioplastics industry can be regarded as the country’s New Wave Industry dueto the fact that there has not yet been the complete value chain of the bioplasticsindustry and the products have not been distributed widely in the local market.However, the initiations from both government and private sectors have been carriedout continuously. Some of the prominent organizations, which have been involvedwith the development of bioplastics in Thailand, are National Innovation Agency(supporting financially and technically to the companies which are eager to invest inbioplastics), Thai Industrial Standards Institute-TISI (developing bioplastics standardfor biodegradability, National Research Council of Thailand-NRCT and NationalMetal and Materials Technology Center-MTEC (supporting and conduct R&D inbioplastics), and Thai Bioplastics Industry Association-TBIA (established from thecooperation of plastics companies which have great interest in creating infrastructureto support the bioplastics industry in the country), Board of Investment- BOI(providing tax privileges for bioplastics investment). By working together as a cluster,TBIA can gain more negotiating power with other trading counterparts and alsosuccessfully kick off various supporting initiatives, e.g. the drafting of standards forbiodegradability of bioplastics products and cooperation with NIA, NRC, MTEC andsome universities to introduce the R&D direction.National Innovation Agency (NIA), being the initiator of this project inThailand, has its major roles to encourage, support and gather information associatedwith bioplastics continuously. The key activities carried out with regard to thedevelopment of Thailand’s bioplastics project are summarized chronologically asfollows:

• In 2003, NIA and cassava starch producers carried out a feasibilitystudy for Thailand to establish bioplastics industry and assess thebusiness opportunity.• During 2004 to present, NIA has facilitated Thai companies tonegotiate with the world’s leading bioplastics companies, e.g.NatureWorks LLC (USA), Metabolix Inc. (USA), Unitika (Japan),Mitsui Chemicals (Japan) BASF (Germany), Uhde Inventa-Fischer(Germany) and PURAC(Netherlands) to seek cooperation oninvestment, creation of market opportunities, technology licensingtechnology transfer and research and development.• In 2006, NIA initiated the founding of the Thai Bioplastics IndustryAssociation (TBIA) by inviting plastics leading companies (both largeand medium sized) in the country to join as a business association. Thepioneers included Thantawan Industries Plc., Thai Plastics BagIndustry Co., Ltd, Unity Thai Co., Ltd. and Quality Minerals Plc. Thisinitiative was also supported by National Metal and MaterialsTechnology Center (MTEC) and Petroleum and Petrochemical College(PPC), Chulalongkorn University.• In 2006, the industry standards for bioplastics were firstly drafted bythe cooperation of NIA, TBIA, PPC and MTEC for further developedby the Thai Industrial Standards Institute (TISI)• In 2005, bioplastics testing facility was developed by MTEC.• In 2006, brainstorming sessions, meetings and workshops wereconducted by NIA to assemble all opinions from all stakeholders(business executives from private sectors, researchers, academia andrelated governmental agencies) in order to conclude the operatingdirection for the bioplastics roadmap.• NIA organized 2 international conference-and-exhibitions onbioplastics, i.e. InnoBioPlast 2006 (September 21-24, 2006) andEcoInnovaAsia 2008 (October3-5, 2008). These events aimed atdisseminating knowledge and create understanding related toThailand’s bioplastics development, catching up on the latesttechnology trend delivered by the world experts, providing theplatform for co-investment and cooperation on bioplastics businessesand, most importantly, demonstrating Thailand’s potential to stepforward as a bioplastics hub in the region.• In 2006, NIA was assigned as the responsible agency to coordinatedrafting of a Thailand’s National Roadmap for the development ofBioplastics Industry, according to the national economic restructuringpolicies to prioritize ‘New Wave Industries’.At the same time, the private sector could develop some bioplastics productsfrom with the support from NIA through technology transfer and joint research withuniversities and research institutes. This technology cooperation between private andgovernment sectors has resulted in the import of bioplastics compounds for productsprocessing and of bioplastic resin to blend with starch to produce cost-effectivecompounds. These products, in fact, have made it to the international markets.

On the research and development collaboration, NRCT, NIA and TBIA haveinitiated a targeted research to develop innovative bioplastics products. This has beenNRCT under the project, “Research and Innovation Helix Program on Bioplastics”.Numerous universities and research institutions were the research counterparts in thisproject; among these include Chulalongkorn University, King Mongkut's Institute ofTechnology Ladkrabang, Suranaree University of Technology, Chiengmai Universityand Kasetsart University.Up to present, there are 3 strategic areas for bioplastics R&D in Thailandnamely: (1) Agricultural Raw Materials, (2) Biotechnology, and (3) Chemical andCompounding Technology. Approximately 100 researchers have been activelyconducting studies on these 3 areas ranging from the improvement of plant breeding,the enhancement of crop productivity for industry feedstock, selection of naturalstrains of microbes, improvement of microbe strains, fermentation technology, starchtechnology and polymerization technology.In summary, the development of bioplastics industry in Thailand is still in theearly stage. Therefore, there is a need for a national roadmap in order to propel thisinitiative into the streamlined manner to facilitate all stakeholders (both governmentand private) to work together to induce a favorable environment for investment,establishment of business partnership, establishment of supporting policy, marketdevelopment and development of technology and innovation. This roadmap can, inturn, enable Thailand to secure a competitive edge to position herself on the globalbioplastics market.5. Preparation of National Roadmap for the Development ofBioplastics IndustryRealizing the challenges and opportunities in the development of bioplasticsindustry in Thailand, the National Subcommittee on Economic Restructuringendorsed the plan to include the development of bioplastics industry along with thedevelopment of biomass-based renewable energy in the action plans for the economicrestructuring under “New Wave Industries” on 12 January 2006. The subcommitteeappointed the Ministry of Science and Technology as a core organization and askedthe Ministry of Industry and Board of Investment (BOI) to take part in this project.After the meeting on 14 February 2006, the working committee appointed NIA as akey focal point in this project and a responsible agency to draft the “Bioplastics” NewWave Industries Action Plan as the National Roadmap for the Development ofBioplastics Industry.6. National Strategies and Targets in the National BioplasticsRoadmapTo ensure the most efficient execution of the Roadmap, 4 key strategies werepinpointed and the implementation is planned to last for 5 years. Brief outlines of the4 strategies are as follows:

Strategy One: Sufficient Supply of Biomass Feedstock(Budget: 100 million baht)This strategy targets at preparing sufficient quality and quantity of rawmaterials for the industry without having to interfere with the food supply. Also theacceleration of technology development to enhance the productivity of starchproducingcrops must be carried out to ensure that the bioplastics production canreach the break-even point and to prevent various problems on the crop cultivationincluding the destruction of an ecosystem balance.Strategy Two: Accelerating Technology Development and Technology Cooperation(Budget: 1,000 million baht)This strategy not only focuses on the adoption of overseas technologies, butalso aims at having local researchers and scientists to develop technological advancesand innovation further from those adopted technologies. The goal to create thecountry’s own technologies is at the heart of this strategy.Strategy Three: Building Industry and Innovative Businesses(Budget: 475 million baht)Under this strategy, an investment in bioplastics industries and businessesmust be encouraged from the upstream, midstream right to the downstream stagesboth at the international business and local business levels.Strategy Four: Establishment of Supportive(Budget: 225 million baht)Many supportive infrastructures must be established to facilitate thedevelopment of bioplastics industry in Thailand. These include establishment ofindustrial standards, setting up the laboratory for testing and certifying bioplasticsproducts, raising public awareness for the use of bioplastics products for anenvironmental protection, implementation of pilot project for bioplastics utilization insmall municipals or community and various activities of public relation.7. Expected OutcomesAt the end of this 5-year Roadmap, the cooperation and initiative from bothgovernmental and private sectors under this action plan should create significantimpact on the following 4 areas:7.1 Economic, Industrial and Agricultural AspectsThailand, through the new wave industries and innovative business onbioplastics, can anchor herself on the international bioplastics market and manage totake a considerable proportion of the global market share. Also, this can provide valuecreation and value-added to the agricultural raw materials are anticipated to result inthe value totaling up to 4,500 million baht.7.2 Technological AspectThe development of new technology can lead to the creation of intellectualproperties, technology transfer and integration of technology from abroad resulting inthe growing number of research specialists on bioplastics. This consequently gears the

country toward the integrated and directed R&D process which could produce aneconomic value of 500 million baht.7.3 Environmental AspectAwareness in using bioplastics as a solution for environmental problems canhelp lower the burden caused by the plastics waste. Thus, less money will be allocatedto the management of plastics waste and air pollution created from the burning ofthese non-degradable plastics will be eliminated. This equates with an economicimpact of 500 million baht.7.4 Policy AspectThe execution of the National Bioplastics Roadmap can induce theestablishment of policy, framework and measure to promote and incentives favoringthe investment in the bioplastics industry including the establishment of varioustesting and certification standards on bioplastics products.

Chapter 1: Current Situation of Bioplasticsin Thailand*1.1 IntroductionThe amount of garbage produced in Thailand is constantly increasing, withover 14.4 million tons created in 2003. The main elimination process is landfill- only11% is recycled. With the situation driving research into developing environmentallyfriendly new products, there is an increasing interest in biodegradable plastics as oneof the potential solutions. This chapter focuses on government and private sectoractivities in the area of bioplastics, the potential for Thailand’s materials and plasticindustry, and the current government policy.1.2 Status of bioplastics in ThailandWith increasing concern over the amount of garbage produced, bothgovernment and private organizations are beginning to support the development ofThailand’s bioplastics sector. The National Innovation Agency (NIA) supports theinvestment, technology acquisition and assessment in bioplastics, The PollutionControl Department has enacted laws to alleviate the garbage problem; The NationalMetal and Materials Technology (MTEC) supports testing laboratory forbiodegradable plastics; and the Thai Bioplastics Industry Association (TBIA) - whichwas recently initiated to stimulate development of the sector- serves as a nationalfocal point for negotiations with other industrial countries on issues such ascollaboration on drafting standards for biodegradable plastics.In particular, since 2003 NIA has been active in promoting bioplstics,compiling technology and business information on bioplastics from leading countriesas well as coordinating with all stakeholder organizations to drive the supportinfrastructure and policy for the establishment bioplastics industry in Thailand.The production of bioplastics products from biomass is shown schematicallyin Figure 1.1. Cassava roots are first transformed into cassava starch, which is thenput through a scarification process using enzymes to produce liquid glucose. Theliquid glucose can then be fermented by specialized bacteria or fungi to produce lacticacid monomer, which is then polymerized to produce polylactic acid (PLA), abiodegradable polymer. These polymers undergo a compounding process in which itsbasic properties are modified and enhanced as needed by addition of plasticizers andother ingredients. In the final part of the production process, the material is mouldedor blown into various types of finished product as needed. Thailand currently has twotechnologies at industrial levels - saccharification by using enzymes to produceglucose from starch, and molding into finished products. Other technologies are stillat the research and development stage.* Parts of this material have been translated by GTZ, Thailand, based on the originalThai version of the National Roadmap for the Development of Bioplastics Industry.

Corn starchCassava starchSaccharificationby enzymeLiquid glucoseFermentationby bacteriaPHAsLactic acidWheat flourSuccinic acidPotato starch1,3-Propanediol: PDOBioplastics productsCompoundingMoldingPolymerizationBiodegradable plastics suchas PLA, PBSFigure 1.1 Production process of bioplastics products from biomass(The bold arrows shows industrial level in Thailand)Production of liquid glucose from starch or saccharification by enzymesSyrup glucose or liquid glucose is the starting point in producing monomersfor biodegradable plastics production. It can be prepared from cassava starch bydigestion with amylase and amyloglucosidase enzymes, as shown in Figure 4.2.Cassava roots Sieving Tuber washing machine RaspingNative tapioca starch SeparatorFine stalk extractor Coarse stalk extractorCentrifuge / addenzymeLiquid glucoseFigure 1.2 Liquid glucose production processSources: adapted from liquid glucose production process by PSC Starch Products Co, Ltd.http://www.pscstarch.com/th/process.aspLiquid glucose can be produced from cassava starch and molasses. However,the process is still under development to optimize the use of specific enzymesnecessary for the digestion process. Production of glucose from corn starch is possiblebut different equipment must be used. Since there is only one corn starch factory inThailand and a 60% import tax is levied on, its use as a feedstock is not currentlycost-effective.

In Thailand glucose is produced from cassava starch, most of it destined forthe food industry. The liquid glucose price is approximately 14 baht/kg (August2006). Glucose, as a feedstock for bioplastics, does not need to be purified as for thefood industry. Liquid glucose used for making ethanol is produced directly fromcassava chip, which will generate 20% glucose and can be used directly in themonomer production process without purification. There are many such glucosefactories in Thailand, producing both liquid and powdered glucose, as shown in Table1.1. These factories have the potential to expand their facilities to produce monomerssuch as lactic acid.Table 1.1 Glucose factories in ThailandFactoryMr. Kamol TangkamornsiriHangya Thai 1942Prasertchai Co., Ltd.Thai Sugar Products Co., Ltd.Pure Chem Co., Ltd.Chaokhun Kaset Pheud Phon Co., Ltd.PSC Starch Products Ltd.Thai Wattana PharmaceuticalsDextrose Ltd.Thai Cassava Industry Co., Ltd.Rong Paeng Sin Sahasin Wattana Ltd.Part.Sima Inter Products Co Ltd (Branch2)Corn Products Amadas (Thailand)Co., Ltd.Siam Sorbitol Co., Ltd.Mr Kamol PichitsinghAsia Fructose Co., Ltd.Sin Udom Flour and Foods Co., Ltd.Heng Uy NguanNakorn Luang Glucose Co., Ltd.Thai Glucose Co., Ltd.LocationBangkhuntian, BangkokRatburana, BangkokMuang, Samut PrakarnBangplee, Samut PrakarnBangplee, Samut PrakarnGaengkhoi, SaraburiNongyai, ChonburiBanglamung, ChonburiBankai, RayongPongnamron, ChantaburiPanom, Sarakam, ChachoengsaoMuang, Nakhon RatchasimaMuang, Nakhon RatchasimaSikeo, Nakhon RatchasimaTamoung, KanchanaburiMuang. Nakhon PhatomDontoom, Nakhon PhatomSampran, Nakhon PhatomSampran, Nakhon PhatomSources: http://www2.diw.go.th/cluster/Fac_EIA1.aspProduction of monomer and bioplastics products in ThailandSince there are currently no bioplastics factories in Thailand, many companieshave started importing bioplastics compounds to use the existing plastics processingmachinaery to produce finished bioplastics products as pilot production for bothdomestic and export markets. Moreover, some companies have started developingtheir business to produce relating bioplastics products as shown in Table 1.2.

Table 1.2 Companies carrying on business relating to bioplasticsCompany Location Product Technology1. AdvancePacking Co.,Ltd. (SpecialTech Group)Phranakorn Sri-Ayutthaya Plastic bags forplants2. M.S.V.Trading Ltd.,Part3. Bio GreenWorld Co.,Ltd. (BGW)4. BIOFOAMJazzy CreationCo., Ltd.5. BiodegradablePackaging forEnvironmentCo., Ltd.(BPE)6. KU-GREEN:BiodegradablePackage7. ThantawanIndustryPublicCo., Ltd.8. PURACThailandBangkokSamut PrakarnBangkokBangkokBangkokFood containersuch as plate,bowl, spoon andforkFood containersuch as Plates,bowls, spoonsand cupsHeat-resistantfood packaging(single-use)such asdisposableplates, bowlsand food traysSingle use foodpackaging suchas disposableplates, bowlsand spoonsSingle use foodpackaging suchas disposableplates, bowls,trays andglasses- produced fromcorn starch- import rawplastic fromUSA andprocess inThailand- produced fromPLA or PLA /starch blend- PLA pelletsimported fromTaiwan- Produced fromcassava starch,hot-molded intofinishedproducts- Own proprietarytechnology- Produced frombagasse- Produced fromcassava starch,hot-mouldedinto finishedproducts- Own proprietarytechnologyBangkok Bag, film - Import rawplastic fromUSA andprocess inThailand- DevelopmentcompoundingRayong Lactic acid - Produced frommolasses orcassava

1.3 Thailand’s readiness for a bioplastics industry1.3.1 Raw materialsAs an agricultural country, Thailand has major comparative advantages inproducing bulk commodities such as rice, sugar cane, cassava, cellulose, wheat andoil palm. Such products contain carbohydrates, glucose or cellulose that are suitableas feedstock for producing bioplastics. Considering its competitive prices andabundant growing capacity in Thailand, cassava is the most feasible and appropriatecrop for bioplastics industrial production. Comparing starch prices on the worldmarket, cassava starch has the lowest price, as shown in Figure 1.3. Moreover,Thailand is now the world’s largest cassava exporter.Potato flourPrice (dollars per ton)Corn starchWheat flourCassava starchYearFigure 1.3 Prices of cassava starch, potato flour, corn starchand wheat flour in the world marketIn 2005, Thailand produced 16.94 million tons of fresh cassava roots, equal to8% of world production and ranked No. 4 among fresh cassava producers, behindNigeria, Brazil and Indonesia. 73.5% of fresh cassava roots are exported as pellets,chips or flour, as shown in Figure 1.4. As mentioned, Thailand is ranked as theworld’s top exporter of cassava products, with 4.6 million tons p.a., or 85.5% ofmarket share, valued at more than 30 billion baht. Its exports to China, Taiwan andother emerging markets mean that cassava has now become one of Thailand’s mostimportant industrial crops. The non-exported production (26.5%) is mostly used asfresh starch in various agro-industrial processes such as the monosodium glutamateproduction, as well as the lysine, sweeteners, papers, and weaving industries.However, the export demand for cassava remains the main market driver.

Global production of fresh cassava204 million tonsFresh production- Thailand16.9 million tonsWorld No.4 producer(8.3 %)26.5 % 73.5 %Cassava consumption in Thailand(4.2 m tons fresh roots)Cassava product exportation(12.7 m tons fresh roots)World no.1Ratio 85.5 %1.5 %Chip(0.08 m tons freshroots)25 %Flour1.1 m tons(4.12 m tons freshroots)36 %Chip2.77 m tons(6.2 m tons fresh roots)11,939 million bahtPellets0.26 m tons(0.6 m tons fresh roots)838 million baht3.5% 34%Flour1.61 m tons(5.9 m tons fresh roots)20,150 million bahtFood industry 200,000 tons flourMSG/Lysine 250,000 tons flourSweeteners 380,000 tons flourPaper 120,000 tons flourModified starch 70,000 tons flourSago 50,000 tons flourWeaving 10,000 tons flourOthers 12,859 tons flourFigure 1.4 Cassava utilization ratios between domestic industry and exportation (2005)Source: adapted information from The Thai Tapioca Trade Association Book B.E. 2547 (the detailbased on the Ministry of Agriculture and Cooperatives and Customs Department) From draft report‘Evaluation and Identification for Raw Intervention Ideas for Thailand’s Tapioca Subsector’ byAgriSource Co. Ltd. Figure 3.3, page 28.Notes:Conversion ratio for fresh cassava roots:1 kg cassava chip : 2.2-2.4 kg fresh cassava roots1 kg pellets cassava : 2.5-3.0 kg fresh cassava roots1 kg fresh starch : 3.5-4.0 kg fresh cassava roots

Cassava is cultivated over 6.5 million rai (1 rai: 1,600 square meters),amounting to 14.22% of the total cultivated areas in Thailand. (Source: Ministry ofAgriculture and Cooperatives). Around 52% of the cassava production area is in thenortheastern provinces of Nakorn Ratchasima, Chaiyaphum, Kalasin, Khon Kaen,Buriram, and Sa kaew, and 25% in the eastern provinces of Chacheongsao, Chonburi,Chantaburi and Trat. The northern and central regions have 15% and 8%,respectively. Table 1.3 to 4.6 show statistics on the cultivated area, annualproductivity, productivity per rai, farm gate prices of fresh roots, wholesale prices ofcassava product, and volumes and value of cassava exports.Table 1.3 Primary information on commercial cassava cultivationAverage productProduction costCost of product3.5 tons/rai2,100 baht/rai4,000 baht/raiSource: Agricultural Development Plan, Tambon Kornswan, ChaiyaphumTable 1.4 Cultivated area, product, product per rai, cassava selling price by farmersB.E. 2539-2005YearCultivatedareaHarvestedareaProductionProductionper raiSellingprice byfarmers(1,000 rai) (1,000 rai) (1,000 ton) (kg) (baht/kg)1996 7,885 7,676 17,388 2,265 0.981997 7,907 7,690 18,084 2,352 0.711998 6,694 6,527 15,591 2,388 1.261999 7,200 6,659 16,507 2,479 0.912000 7,406 7,068 19,064 2,697 0.632001 6,918 6,558 18,396 2,805 0.692002 6,224 6,176 16,868 2,731 1.052003 6,435 6,386 19,718 3,087 0.932004 6,757 6,608 21,440 3,244 0.802005 6,524 6,162 16,938 2,749 1.31Source: Department of Agriculture http://www.doa.go.th/fieldcrops/cas/eco/index.HTM

Table 1.5 Cassava product price B.E. 1990-2005Cassava productYear Wholesale price in Bangkok(baht/kg)FOB price (baht/ton)Pellets Chip Flour Pellets Flour1990 2.36 2.03 5.16 3,700 5,7401991 2.62 2.40 5.70 3,860 6,0701992 2.57 2.40 5.59 3,850 5,8931993 2.16 1.94 4.31 2,736 5,0561994 2.43 2.22 4.31 2,736 6,1841995 3.10 3.08 8.48 3,495 8,8691996 2.96 2.70 6.47 3,160 7,3431997 2.21 2.05 6.46 2,479 7,5661998 3.20 3.01 10.64 3,301 11,3061999 2.65 2.43 5.85 2,865 6,8262000 2.00 1.81 5.27 2,210 6,3082001 2.22 2.27 7.29 2,574 7,6482002 2.22 2.69 7.62 2,807 7,8982003 2.57 2.56 6.39 2,911 7,0522004 2.72 2.85 7.60 3,097 7,4732005 3.20 3.99 9.28 3,207 9,495Sources: Office of Agricultural Economics, Ministry of Agriculture and Cooperatives. From draftreport ‘Evaluation and Identification for Raw Intervention - Ideas for Thailand’s Tapioca Subsector’by AgriSource Co. Ltd. Table 4.3Table 1.6 Exports of cassava products 2003-2004 (volumes and value)ProductsAmount(ton)2003 2004Cost Amount(million (ton)baht)Cost(millionbaht)Fresh tubers 127 4.2 75 1.8Cassava chips 1,812,374 5,352.9 2,805,988 8,640.7Cassava starch 1,084,068 7,439.6 1,113,633 8,196.5Cassava pellets 1,859,939 5,096.0 2,212,948 6,391.6Sago 21,684 251.9 26,742 315.5Dextrin and other525,515 8,780.0 492,638 7,500.7modified starchGlue 5,091 161.2 10,231 289.5Cassava stalks 61,594 138.7 194,267 479.2Total of cassava products 5,370,392 27,224.7 6,856,522 31,815.5Sources: Office of Agricultural Economics http://www.doa.go.th/fieldcrops/cas/eco/stat_1.HTM

Thailand’s cassava exports consist mostly of chips, pellets and starch, whichhave low prices and depend on the foreign commodity market factors leading tounstable prices and demanding conditions. Therefore, in order to increase its value,cassava needs to be adopted as an industrial raw material. Cassava starch in particularcan be used for a number of industrial processes. As shown in Figure 1.5, when rawcassava roots are transformed into secondary products such as pellets, chip or flour,the value added will be only 50%, equal to 30 billion baht. But when furthertransformed into its tertiary products such as bioplastics, modified starch, celluloseproducts or liquid glucose, the added value will be 150% of its original, equal to 76billion baht. For bioplastics alone, the added value would be 44 billion baht.Cost20,000 MB12 MTFresh roots20 MT (1 B/kg)20,000 MB8 MT50 %30,000 MBPellets3 MT9,000 MBChips2 MT6,000 MBFlour2.3 MT (6.5 B/kg)15,000 MB150 %0.2 MTAnimal feed0.7 MTExportedcassava starch1.4 MTStalks1 MT1,000 MB76,000 MBBioplastics(PLA: 120-320 B/kg)44,000 MBModified starch andchemicals(14 B/kg)20,000 MBCellulose10,000 MBLiquidglucose2,000 MBFigure 1.5 Cassava value chainSource: adapted from strategic plan for agriculture and ago- industrial research, according tonational research period in crisis for national revival by Prof. Dr. Theera Sutabutra, KasetsartUniversity. Diagram 2, page 17.

1.3.2 The plastics industry and market growth in ThailandPlastics production and marketsThailand’s plastic industry is a full-cycle mature industry sector with a worldclasspotential. Figure 1.6 shows the industry structure. Plastic granules or resin fromthe tertiary petrochemical industry may either directly enter the plastic industry ormay undergo compounding or polymer blending or poly-alloy production in order toincrease its value and utility. There are various plastic molding processes such as aninjection molding, extrusion, blow molding and extrusion blow film/sheet. Plasticproducts are also extremely diverse, including packaging for household appliances,plastic parts for use in consumer goods, electrical appliances and the electronicsindustry, vehicles, shoes, construction materials etc. Thailand also has an activemolding machinery production sub-sector, including die and mould machinerymanufacture.Tertiary petrochemical industryPlastic granules/resinStrengtheningCompositesSMC, BMCCompoundingBlendingAdditivesPlastic product industryMoldingMould and injectorproductionConsumer marketPackagingSports equipment / toysParts / building materialsDownstream industriesPackagingElectrical partsVehicle parts Construction materialsHousehold appliance Sports equipment / toysSynthetic fibres Shoe parts, othersFigure 1.6 Structure of Thailand’s plastic products industryThailand’s plastic granule and resin production accounts for 4% of worldwideproduction, as shown in Figure 1.7. Annual production amounts to 6.38 milliontons/year, which is 38.7% more than domestic demand. Thus, Thailand has become anexporter of both basic pellets and engineering plastics. Thailand has fewer primary

sources (natural gas from the Gulf of Thailand) than others such as the Middle Easterncountries, Indonesia and Malaysia. Nevertheless, Mabtapud Petrochemical IndustrialEstate is ranked 8 th in the world, and No.1 in the ASEAN region, as the producer ofplastic granules. Thailand produces a diverse range of high quality plastic granules,including thermoplastics and thermoset. Both types are made in both basic andengineering forms. Thailand’s plastic granule exports are destined mainly for Japan,Singapore, USA, South Korea and Taiwan (See Figure 1.7).USA31 . 0 %Thailand4.0%Others47 . 0 %Germany10 . 5 %China6.0%Malaysia1.5%Figure 1.7 Major producers of plastic granules and resins, 2003Plastic production facilities in Thailand are mainly medium and small-sized.80% of them are located in Bangkok and its surroundings, with a concentration in thesouthwestern part of Bangkok- Bangkhuntian, Bangbon, Chomthong, Ratburana andToongkru districts.Table 1.7 The plastics industry in Thailand, 2003DetailThailandNo of factories 4,296SME ratio (%) 88Congested factory areaBangkok andsurroundingsNo of domestic consumer (millions) 62Domestic consumers / factory14,432(people/factory)Ranking (in terms of production quantity) No.1 in ASEANSources: Department of Industrial Works, Ministry of Industry and Department of Trade Negotiation,Ministry of Foreign Affairs

There are 4,296 factories producing plastic products for molding registeredwith Department of Industrial Works, Ministry of Industry (data from the DIW,December 2002). However, it was estimated that the real number of factories could beover 5,000, including 30 plastic granule factories. From 2002 data there are 4,229registered factories categorized into packaging manufacturers (41.9%, the largestmarket), followed by household products (16.9%) and finally, compounding plasticgranules (5.1%). Figure 1.8 below shows the breakdown of plastic product factories inThailand.Vehicle parts2 %Electrical parts4%Home and kitchen utensils17 %Construction materials4%Packaging42 %Toys, sportequipment5%Others16 %Shoes4%Fibre1%Compounding plasticgranules5%Figure 1.8 Categories of plastic product factories in ThailandSource: Department of Industrial Works (2002) and the Federation of Thai Industries.Economic ImportanceAlthough Thailand has always been considered primarily as an agriculturalcountry, over 75 percent of its exports are industrial products, including plasticgranules, which indeed form one of the country’s most important exports. Evenduring the economic downturn in 1997, the export value of plastic granules is listed inthe top 10 in Thailand. Thailand’s export volume and value of plastic granulesbetween the years 1996 – 2003 are shown in Figure 1.9 below.

Volume (m tons)Volume (m tons)3.02.01.00.02539 2540 2541 2542 2543 2544 2545 2546120,000100,00080,00060,00040,00020,0000Value (m baht)3.02.01.00.02539 2540 2541 2542 2543 2544 2545 2546120,000100,00080,00060,00040,00020,0000Figure 1.9 Export volumes and value of plastic granules (1996 – 2003)Source: IT Centre for Economy and Trade, and the Customs DepartmentThailand is now ASEAN’s leading exporter of plastic products and is ranked8 th in the world. The most important exports are films, foil/tape, synthesized fibersand sack bags. As we can see from Figure 1.10, the growth in export value from 1996to 2003 is as high as 25.3 percent. The most important markets are Japan, USA, HongKong, UK, Australia and other ASEAN countries. From 2000, the value of plasticexports grew by more than 40 percent to 51 billion baht in 2003. Moreover, theexport value of plastic granules and plastic products comprises 4 percent of thecountry’s total export value (140 billion baht).

Boxesand luggage2%Fishing nets4%Tableware andkitchenware5%Woven sacks2%Pipes and tubes2%Clothing &accessories3%Rainwear0%Other28%Bags and sacks25%Film, foil and tape29%Figure 1.10 Key plastic exports, by value (2003)Source: Department of Trade Negotiations, Trade Information Centre, and Thai Customs Department.Plastic granules and resin↓Production: 6.38 million tonsNo of factories : 30 factories↓Export volume 2.55 million tonsExport value 89,261 million baht↓Domestic consumption 3.83 million tonsImports: 0.95 million tons↓Domestic consumption of plasticgranules: 4.78 million tons, or 80 kg percapitaPlastic Industry↓↓Plastic product↓Production: 3.91 million tonsCost 157,000 million bahtNo of factories : 4,296 factories↓Export value: 51,446 millionbahtFigure 1.11 Potential of Thai plastics industry (2003) by volume and value.Figure 1.11 indicates the potential for Thailand’s plastic industry, from theproduction of basic intermediates (plastic granules) from the petroleum industry atMaptaphut to midstream technologies (compounding) and downstream (molding) andthe presence of strong market demand both within Thailand and overseas.The potential and competitiveness of the petrochemical-based plastics industrybrings both advantages and possibilities for the production of bioplastics, especiallydownstream technologies that employ similar production processes and machinery.

As shown in Table 1.8, Thailand has many advantages and strengths. With thegovernment policy supports in various areas such as an environment, trades andinvestment as well as an encouragement to build technology, Thailand has thepotential to play a leading role in bioplastics industry development in the region.Table 1.8 Strengths and potential of Thailand’s bioplastic industryIndustry Strength and opportunity Constraints PossibilityPolymer - Ample supplies of lowpricedLack ofModerateIndustrycassava feedstocks technologyandCompoundinggranule industryPlastic productsindustry- Readiness for machines,technology, staff, domesticand foreign market- Ability to importbioplastics in order toblend with abundantcassava starch to reducecosts- Readiness for machines,technology, staff, domesticand foreign marketsexpertiseHigh price ofbioplasticsHigh price ofbioplasticsHighHighest1.3.3 Government policy and support measuresThe government policy and support measures have a direct and major effect indriving the bioplastics industry. Implementing existing policies and establishing newones to create an appropriate enabling regulatory framework to promote thebioplastics sector will be crucial to achieve national objectives. Since there iscurrently no law dealing specifically with bioplastics, laws concerning plastics andfoams packaging are currently applied. New Royal Decrees are needed to amendexisting legislation and ensure an effective enforcement in order to provide aneffective and enabling regulatory framework for a viable bioplastics industry sector inThailand. Some suggestions related to current legislation are offered below.1. Customs Tariff Decree, B.E. 2530 (1987)Increases in import tariffs (collection of special tariffs) for nonbiodegradableraw materials, would help reducing import volumes and encouragingmanufacturers to turn to biodegradable materials or to recycle products domestically.2. The Excise Tax Act, B.E. 2527 (1984)This is an important statute which could be amended to incorporate taxrate reductions, exemptions and other rules and conditions to reduce the use of foamsand plastics. Under this Act imports and exports could be controlled by establishingtax-free policies for importing bioplastics, foam compounds, raw materialsand biodegradable products which can substitute for conventional plastic bags andfoam trays.

3. Industrial Product Standards Act, B.E. 2511 (1968)This Act could be amended to specify standards for biodegradable plastics,including imprinting of the standard assurance logo and use of environmentallyfriendly printing inks.4. Consumer Protection Act (No.1), B.E. 2522 (1979) and ConsumerProtection Act (No.2), B.E. 2541 (1998)The Consumer Protection Acts specify product label requirements. TheAct might be amended to specify that the label for plastic and foam products andpackages must indicate whether the products are made from biodegradable materials,are environment-friendly, and rank their suitability for re-use or recycling. This wouldprovide consumers with alternatives and would influence distributors to take this intoconsideration when choosing products to distribute.5. Public Health Act, B.E. 2535 (1992)This Act authorizes a local government and public health officials tocontrol any business that have the potential to cause damage to public health.Therefore, the Act might be applied to the business relating to plastics and foams, andinclude new measures for collecting, transporting and disposing of plastics and foamssolid wastes. It could also introduce new measures for plastics and foams garbageseparation for households and enterprises in Bangkok and surrounding areas. The Actcould establish different fee rates for collection of separated and non-separatedgarbage categories. Separation of the plastics and foams garbage could be used as amean to reduce costs of municipal garbage separation services.Identifying suitable channels for a waste separation and biodegradable plasticpackaging will provide an impetus for the efficient implementation of the greenplastic pilot project. Under this Act, the authority is given to a local government toprescribe rules, procedures, fees and conditions for collecting, transporting, anddisposing of sewage or solid wastes and the issuance of operating licenses forcollection and disposal of garbage or wastes (pursuant to Articles 20(3), (4) and (5)),could be extended to include provisions for operations which separate plastics andfoams from other categories.Moreover, there are some more Acts which are relevant to the sector, asfollows:• Hazardous Substance Act (2nd Issue), B.E. 2544 (2001)• Enhancement and Conservation of National Environmental Quality Act,B.E. 2535 (1992)• Industrial Estate Authority of Thailand Act, B.E. 2522 (1979)• National Metrological System Development Act, B.E. 2540 (1997)• Investment Promotion Act, B.E 2520 (1977) and Amendment• Factory Act, B.E. 2535 (1992)• Price of Goods and Services Act, B.E. 2542 (1999)

Chapter 2: Strategy, Action Plan and BudgetUpdated information about the industry, technologies, methods and strategiesemployed by leading countries in the field of bioplastics will be crucial to accelerate thedevelopment of bioplastics industry in Thailand and also to attend the status of a regionalhub for bioplastics production.There is an urgent need to establish alliances at national and international levels tosupport technology transfer and accelerate the development of bioplastics innovations andtechnologies. This will facilitate investment in bioplastics industry and further enhancethe international competitiveness for Thailand. Apart from technology transfer, theenhancement of the national technology capacity will be required in order to make bestuse of its comparative advantages in terms of natural resources and existing supportingindustry, proximity to markets etc., and also to aggressively develop Thailand’s R&Dcapacity and ownership of intellectual property rights on bioplastics related technologies.Furthermore, at the policy level, it will be necessary to impose a range ofmeasures to support production and encourage the use of bioplastics, includingprocurement policies, taxation, and public relations, and pilot schemes and compliancewith international standards. Intermediary organizations which have the power tonegotiate on behalf of the industry at regional and international levels will also be needed.The Road Map recognizes the need to ensure stable and adequate supplies of rawfeedstock materials, and therefore contains outline plans for utilizing raw materials whichare readily utilizable by industry as feedstock, and which support growth and stability inthe agricultural sector, as well as creating new cultivation and harvesting technologies.To support the development of bioplastics as the New Wave Industry, a five-yearRoad Map (2008-2012) for bioplastics development in Thailand was proposed. The RoadMap consists of 4 key strategies, and is supported by a budget proposal. These strategieswith relating budget are summarized in the Table 2.1.

Table 2.1 Strategy and budget allocation for the Road Map for the Development ofBioplastics IndustryStrategiesBudget (million baht)Strategy 1 Sufficient Supply of Biomass Feedstock 100Strategy 2 Accelerating Technology Development and TechnologyCooperation2.1 Immediate adoption of available technologies2.2 Further developing / generating indigenous new technologiesStrategy 3 Building Industry and Innovative Businesses3.1 Industry innovative business3.2 Domestic and overseas marketsStrategy 4 Establishment of Supportive Infrastructure4.1 Establishing industry standards for biodegradability and testing4.2 Environment4.2.1 Environmental conservation4.2.2 Public relations and building awareness4.3 Policies (Technology, Industry, Environment)1,000(100)(900)475(445)(30)225(55)(50)(120)Total Budget 1,800Each strategy consists of 6 components: target identification, indicators, actionplans, responsible agency, functions of each agency and a budget for implementation. Therest of this chapter provides specific details for each of the 4 strategies.

Action PlansStrategy 1: Sufficient Supply of Biomass Feedstock (100 million baht)Targets Key Indicators1. To obtain sufficient cassava as raw materials for production feedstock - To have approximately 10,000 tons of cassava annually- To increase the cassava productivity to more than 8 ton per rai ## 1 Hectare = 6.25 Rai or 10,000 sq. m.Action Plans (Total Budget)1. Introduce policies andregulations on supportingcultivation and productivityenhancement(20 million baht)Functions (Budget)- Found contingent loans and alending system for farmers toincrease cassava cultivation andits productivity(20 million baht)- Study and formulate policies forthe use of genetic engineering inthe field of GMO development toimprove cassava variety to beused as feedstock for bioplasticproductionResponsible Agency(* Key Agency)- Ministry of Agricultureand Cooperatives*Sources of Budget FiguresThe total of 10,000 ton increase in cassavaproduction (~20 million baht) with the aidof 20 percent of the capital for five years;total budget 20 million baht.Period/Budget200820092010201120124 4 4 4 4

Action Plans (Total Budget)2. Educate farmers to understandthe use of agricultural productsas feedstocks for bioplasticproduction(22 million baht)- Select high-yield variety anddistribute them to farmerstogether with the transfer ofgood cultivation techniques andother necessary knowledge toensure high productivity3. Encourage improvedmanagement of cultivated areas(5 million baht)Functions (Budget)- Advise and educate farmers on theimportance of using cassava asfeedstock for bioplasticproduction and its impact on theeconomics and environment(2 million baht)- Gather and establish the collectionof crop variety(2 million baht)- Transfer technology anddistribute newly improved varietyto farmers(5 million baht)- Advise cultivation techniques andsecure all necessary supports e.g.good variety of crop, fertilizersand farming equipments(13 million baht)Map the cultivation areas andmanaging those areas foragricultural crops especially cassava(5 million baht)Responsible Agency(* Key Agency)- Ministry of Agricultureand Cooperatives*- Ministry of Agricultureand Cooperatives*- Ministry of IndustrySources of Budget FiguresA 2.5-year project for giving farmers theunderstanding; 4 times a year and 0.2million baht a time, worth 2 million baht.Implementation budget worth 2 millionbahtA 5-year project for outreach program andcultivation techniques transfer; twice a yearand 0.5 million baht each time; worth atotal 5 million bahtFund for procuring all supports for farmerslasting 5 years with 2.6 allotted each year;worth a total 13 million bahtA pilot cultivation project covering thearea of 2,000 rai, worth 5 million baht.Period/Budget200820092010201120120.8 0.8 0.41 11 1 1 1 12.6 2.6 2.6 2.6 2.61 1 1 1 1

Action Plans (Total Budget)4. Support the research anddevelopment, enhancement ofcrop variety, cultivationtechnology, and machinery toreplace manual labor incultivation and harvest process(50 million baht)6. Promote proper management toensure stable supplies to meetdemand e.g. channeling thelow-value cassava products forbioplastic production(3 million baht)Functions (Budget)- Prepare the direction for researchon crop variety enhancement, anddevelopment of cultivation andharvesting technology- Allocate fund to support theresearch and developmentactivities(50 million baht)- Analyze the demand for bioplasticproduction feedstock(3 million baht)- Gather information and acting assource of information on the statusof raw material supply- Allocate the crop for theproduction of bioplasticsResponsible Agency(* Key Agency)- National ResearchCouncil of Thailand*[Working in a form ofcommittee consisting ofrepresentatives fromMinistry of Education,Ministry of Industry, ThaiBioplastics IndustryAssociation, etc.]- Ministry of Agricultureand Cooperatives*- Thai TapiocaDevelopment InstituteSources of Budget FiguresResearch fund for crop improvement anddevelopment of cultivation techniquelasting for 5 years. The fund is allocated to7 projects (worth 3 million baht each) and29 project (worth 1 million baht each)Hosting inter-ministry meeting toformulate plans to manage the cropsupplies for 5 years with the budget of 0.2million baht each time (to be conducted 3times a year)Period/Budget2008200920102011201222 20 80.6 0.6 0.6 0.6 0.6- Analyze all economic factorsconcerned with using cassava forbioplastic production- Ministry of Commerce*Total Budget for STRATEGY 1: Sufficient Supply of Biomass Feedstock 100 million baht 33 31 17.6 9.2 9.2

Strategy 2: Accelerating Technology Development and Technology Cooperation (1,000 million baht)2.1 Immediate adoption of available technologies (100 million baht)Targets Key Indicators1. To gain an access to at least 1 modern technology for fermenting sugar - To have an access to 2 types of technologies in transforming sugar into monomer and/or PHAs, such asfor monomer production and/or PHAs by 2012production of lactic acid, PDO, succinic acid and/or PHAs2. To gain an access to at least 1 modern polymerization technology for- To have an access to 2 types of polymerization technologies such as PLA and PBS productionpolylactic acids (PLAs) by 20123. To gain an access to modern compounding technologies for- To have an access to at least 5 compounding formulae, with an emphasis on the formulae for use inthe preparation of PLA resin for molding products at least 1 technologypackaging applications, thermoforming film and injectionby 2010Action Plans (Total Budget)1. Assess and acquire suitabletechnologies to adopt or coinvest(including the executionof feasibility study)(10 million baht)Functions (Budget)- Conduct all necessary activitiesto acquire suitable technologiesfrom upstream to downstreamindustry(7.5 million baht)- Hire expert(s) to conduct thetechnology assessment (fromupstream to downstream) in orderto recommend the technologywith feasibility to invest in(2.5 million baht)Responsible Agency(* Key Agency)- National InnovationAgency*Sources of Budget FiguresSupporting representatives from privatesector and member of academia to attendseminars and factory visits in countries ofadvanced bioplastics technology; 5 areas oftechnology (upstream, midstream anddownstream); 1.5 million baht for eachtechnology making up the total of 7.5million bahtBudget for hiring expert(s) to assess thetechnologies worth 2.5 million bahtPeriod/Budget20082009201020113 3 1.51 1 0.52012

Action Plans (Total Budget)2. Promote and support the importor investment of technologybetween groups of industryentrepreneurs and enterpriseswhich own overseastechnologies(60 million baht)Functions (Budget)- Identify groups of industryexecutives/ entrepreneurs whohave the potentials and areinterested in bioplastics investment(from upstream, midstream anddownstream)(5 million baht)- Undertake activities to introduceproven technologies to groups ofindustry executives/entrepreneurs(5 million baht)- Allocate partial subsidy funds forbuying licenses of intellectualproperty for groups of industryentrepreneurs(50 million baht)Responsible Agency(* Key Agency)- National InnovationAgency*Sources of Budget Figures- Conducting various activities to identifyand persuade investors lasting 2 years; 2events per year with 2 million bahtallocated annually, making up 4 millionbaht in total- Partial grant support for businessexecutives to attend conference/seminaror have a factory visit to the country ofleading bioplastics technology; 2-yearproject, 0.5 million baht allocatedannually making a total of 1 million bahtSeminars to introduce suitabletechnologies; 10 times with 0.5 millionbaht allotted to each, worth a total of 5million bahtSupport fund for procuring intellectualproperties for 10 technologies worth 50million bahtPeriod/Budget20082009201020112.5 2.51.5 1.5 1.5 0.520 20 102012- Issue investment incentives- Board of Investment(BOI)*

Action Plans (Total Budget)3. Coordinate groups of industryentrepreneurs with enterpriseswhich own overseastechnologies(5 million baht)4. Develop human capacity totransfer knowledge oftechnology(25 million baht)Functions (Budget)- Undertake activities to providegroups of localexecutives/entrepreneurs with anopportunity to associate withoverseas enterprises which owntechnology(5 million baht)- Create a stimulating environmentfor investment, coordinating andfacilitating groups of localexecutive/entrepreneurs andoverseas technology owners inorder to encourage co-investmentbetween them- Issue incentives to facilitate the coinvestmentof localexecutives/entrepreneurs andoversea technology owners- Conduct seminars and training forpersonnel from private sector tobroaden knowledge of technology(20 million baht)- Support the training of personneloverseas for both government andprivate sectors; in case of theprivate sector, the trainees mustshare the cost incurred during thetraining(5 million baht)Responsible Agency(* Key Agency)- National InnovationAgency*- Ministry of Industry- Board of Investment(BOI)*- National InnovationAgency*Sources of Budget FiguresOrganizing meetings between the local andoverseas counterparts (2-year project, 1meeting per year, 2.5 million baht for eachmeeting, totaling to 5 million baht)- 5-year project of training and personneldevelopment; 4 times a year, 1 millionbaht set for each seminar/training,making up the total of 20 million baht- 5-year project of sending personneloverseas for technology training; 2 timesa year, 0.5 million baht set for eachtrainingPeriod/Budget20082009201020112.5 2.54 4 4 41 1 1 1201241Total Budget for STRATEGY 2.1: Immediate adoption of available technologies 100 million baht 35.5 35.5 18.5 5.5 5

2.2 Further developing / generating indigenous new technologies (900 million baht)Targets Key Indicators1. Further development and generation of new technologies forfermenting sugar for monomer production and/or PHAs (by 2012), inpolymerization (by 2011) and in compounding (by 2010)- To have at least 2 types of technologies for fermenting sugars for monomer production and PHAs,e.g. production of lactic acids, PDO, succinic acids and/or PHAs- To have at least 2 types of technologies in polymer production- To have at least 5 compounding formulae per year for commercial use- To have at least 20 research papers per year published in national academic journals and at least5 papers per year in international academic journals- To have at least 20 research papers presented in national academic conferences and at least 10in international academic conferences- To register at least 10 national patents per year and at least 1 international patent per year(starting from 2011)Action Plans (Total Budget)1. Define research directions andoffer research funds forintegrative research in furtherdevelopment and/orgeneration of technologies forindustrial application(395 million baht)Functions (Budget)- Collect and evaluate a status ofglobal research and state of the arttechnologies which can be appliedto the production of bioplastics atindustrial level(20 million baht)- Collect data on finished/processingresearch projects and researchpersonnel of countries inconnection with technology ofbioplastics production- Define research directions forfurther development and/orgeneration of technologies forindustrial applicationsResponsible Agency(* Key Agency)- National ResearchCouncil*- National InnovationAgencySources of Budget Figures5-year research program; 5 projects with 4million baht allocated for eachPeriod/Budget200820092010201120124 4 4 4 4

Action Plans (Total Budget)(cont.)Functions (Budget)Responsible Agency(* Key Agency)Sources of Budget Figures5-year research funds for target research;2008Period/Budget2009201020112012- Allocate research funds forresearch projects in the followingareas:- Upstream research(100 million baht)- Midstream research(90 million baht)- Downstream research(60 million baht)- Support the instruments anddurable goods to researchinstitutes or research teams alongwith research fund in order tofacilitate the development offurther research or improvementof existing technology(125 million baht)- National ResearchCouncil*[Working in a form ofcommittee consisting ofrepresentatives fromNational InnovationAgency, Bereau of theBudget, Ministry ofEducation, Ministry ofIndustry, ThaiBioplastics IndustryAssociation, etc.]1) 45 one-year small projects, 1 millionbaht per project, worth 45 million bahtin total2) 23 three-year medium projects, 5million baht per project, worth 115million baht in total3) 9 five-year large projects, 10 millionbaht per project, worth 90 million bahtin totalInstruments and durable goods to support:1) Upstream research, 60 million baht2) Midstream research, 30 million baht3) Downstream research, 35 million baht154030603035154030153530

Action Plans (Total Budget)2. Define research directions andallocate research funds fortarget and integrative researchin the generation of thecountry’s own technologies thatmust be both crucial andfeasible(305 million baht)Functions (Budget)- Gather local information onresearch projects and existingtechnology concerned withbioplastics and prioritizeavailable technologies in order todetermine direction for researchwhich aims at producingcountry’s own technology(5 million baht)- Allocate research funds forresearch projects in thedevelopment of crucial andfeasible technologies in thefollowing areas:- Upstream research(90 million baht)- Midstream research(80 million baht)- Downstream research(30 million baht)- Support the durable goods forresearch to institutes or researchteams to ensure the readiness ofthe pilot plant(100 million baht)Responsible Agency(* Key Agency)- National InnovationAgency*- National ResearchCouncil*[Working in a form ofcommittee consisting ofrepresentatives fromNational InnovationAgency, Bureau of theBudget, Ministry ofEducation, Ministry ofIndustry, Thai BioplasticsIndustry Association,etc.]Sources of Budget FiguresConducting meetings to gather projectinformation5-year research funds for target research;1) 50 one-year small projects, 1 millionbaht per project, worth 50 million bahtin total2) 12 three-year medium projects,5 million baht per project, worth 60million baht in total3) 9 five-year large projects, 10 millionbaht per project, worth 90 million bahtin totalInstruments and durable goods to support:1) Upstream research, 50 million baht2) Midstream research, 25 million baht3) Downstream research, 25 million baht2008Period/Budget20092010201120121 1 1 1 1102050502525102040102010 10

Action Plans (Total Budget)Functions (Budget)- Establish a database on researchprojects and researchers whowork on industrial engineeringand production process at themodel or pilot level- Allocate funds for relevantresearch projects which codevelopwith private sector(100 million baht)Responsible Agency(* Key Agency)- National InnovationAgency*- National ResearchCouncil- National ResearchCouncil*Sources of Budget Figures5-year research funds for target research;1) 10 three-year medium projects, 5million baht per project, worth 50million baht in total2) 5 five-year large projects, 10 millionbaht per project, worth 50 million bahtin total20082020Period/Budget20092010201115 1520 1020123. Encourage and support theindustrial engineering andproduction process at model orpilot level for building fullyequippedindustrial factories(150 million baht)- Allocate funds for relevantresearch projects to universitywith research excellence onvarious areas concerned withbioplastics in order to develop tothe industrial scale(20 million baht)- Support the durable goods forresearch to institutes or researchteams to ensure the readiness ofthe pilot plant(30 million baht)- Initiate the cooperation amongindustry sectors to support theindustrial research on the pilotscale and invest with own fund tocarry out R&D activities withlecturers and researchers[Working in a form ofcommittee consisting ofrepresentatives fromNational InnovationAgency, Bureau of theBudget, Ministry ofEducation, Ministry ofIndustry, ThaiBioplastics IndustryAssociation, etc.]- Thai Bioplastics IndustryAssociation*5-year research funds for target research; 4three-year medium projects, 5 million bahtper project, worth 20 million baht in total- Upstream instruments, 10 million baht- Midstream instruments, 10 million baht- Downstream instruments, 10 millionbaht1010101010

Action Plans (Total Budget)4. Encourage and supportresearchers in conductingcollaborative research, and toexchange research data withinand between groups(25 million baht)5. Encourage and supportregistration of patents, selectingfrom research with potential fordevelopment at industry level(20 million baht)7. Establish database of researchin technology and bioplasticsindustry(5 million baht)Functions (Budget)- Conduct meetings, seminars andworkshop training for researchersin relevant fields(25 million baht)- Provide advise and consultationfor the intellectual propertiesregistration procedures- Allocate subsidies for registeringpatents(20 million baht)- Establish database of research,technology and companiesengaged in bioplastics- Allocate subsidy funds forestablishing a database(5 million baht)Responsible Agency(* Key Agency)- National InnovationAgency*- Ministry of Commerce*(Department ofIntellectual Properties)- National InnovationAgency*Sources of Budget Figures5-year project to host meetings andacademic seminars; 2 meetings andseminars a year, 1 million baht per oneevent; total budget 10 million baht.5-year subsidy funds for protectingintellectual property of the country’stechnologies:- 50 national intellectual property, 0.3million baht per case, budget 15 millionbaht, and- 5 international intellectual propertycases, 1 million baht per property; totalbudget 5 million baht- 5-year subsidy funds for establishingdatabase (5 million baht)Period/Budget200820092010201120125 5 5 5 53 3 3 3 31 1 1 1 11 1 1 1 1Total Budget for STRATEGY 2.2: Further developing / generating indigenous new technologies 900 million baht 485 215 150 25 25

Strategy 3: Building industry and innovative businesses (total budget Baht 475 million)3.1 Industry innovative business (445 million baht)Targets Key Indicators- To have 2 starch, sugar or new factories to produce monomer (such as lactic acid, succinic acid, PDO)1. Establish a pilot industrial factory for monomer production (by 2012) from sugars, with capacity of at least 1,500 tons per year and approximate investment value of 1.0billion baht- To have 2 factories for monomer production (such as PLA and PHAs), with capacity of at least 1,0002. Set up a pilot industrial factory for monomer production (by 2012)tons per year and approximate investment value of 1.5 billion baht- To have 5 compounding factories which expand their existing businesses to bioplastics, or set up new3. Set up an industrial factory for compounding (by 2011)factories, with capacity of at least 300 tons per year in productivity and approximate investment valueof 200 million baht- To have 30 molding factories expanding their businesses lines to bioplastics, with capacity of at least4. Set up an industrial factory for molding products (by 2011)100 tons per year and with approximate investment value of 300 million bahtAction Plans (Total Budget)Functions (Budget)Responsible Agency(* Key Agency)Sources of Budget Figures2008Period/Budget20092010201120121. Encourage co-investmentbetween groups ofentrepreneurs and enterpriseswhich own foreign technologiesin order to build pilot industrialfactories for monomer andpolymer production(350 million baht)- Allocate zero-interestcontingency loans for buildingfactories (100 million baht)- Establish co-investment withgroups of entrepreneurs(250 million baht)- Suggest, advise, facilitate andcoordinate relevant sectors forbuilding factories- Issue support incentives- National InnovationAgency*- Board of Investment(BOI)*Zero-interest contingency loans worth 100million bahtFunds for co-investment worth 100million baht30 30 40100 150

Action Plans (Total Budget)2. Encourage compoundingindustry and product moldingby having manufacturersexpand their business lines toinclude bioplastics, or buildingnew factory facilities to fullysupport bioplastic production(70 million baht)Functions (Budget)- Subsidize loans to expand orconstruct new factories withoutinterest(15 million baht)- Initiate joint ventures withprospective investors(50 million baht)- Support via subsidy fund forimporting bioplastics granulesfor compounding trial run in thepilot project(5 million baht)Responsible Agency(* Key Agency)- National InnovationAgency*Sources of Budget FiguresSubsidized loan without interest of 15million bahtJoint venture subsidy fund of 50 millionbaht5-year subsidy for importing a total of 25tons of granules worth 5 million bahtPeriod/Budget200820092010201120123 3 3 3 325 251 1 1 1 1- Issue supportincentives/measures- Board of Investment(BOI)*3. Support establishment of fullcycleindustrial estatesspecifically for bioplastics(10 million baht)4. Support various activities tohelp strengthening Thailand’sbioplastics industries(15 million baht)- Determine the area of theindustrial estate includingprovision of public utilities andservices and infrastructure(10 million baht)- Support activities and initiativesconductive to the strengtheningof bioplastics industries(15 million baht)- Ministry of Industry*- National InnovationAgency- Ministry of Commerce- Board of Investment(BOI)- National InnovationAgency*Budget for conducting study on the zoningfor bioplastics industrial estate lasting for2 years; worth 5 million baht per yearSupport funding of 3 million bahtannually5 53 3 3 3 3Total Budget for STRATEGY 3.1: Industry innovative business 445 million baht 167 217 47 7 7

3.2 Building domestic and overseas markets (30 million baht)Targets Key Indicators1. Establish a domestic business on bioplastics compounding and - To sell 4,500 tons per year of compounding granules, valued at 300 million baht per yearbioplastics products- To sell 800 million baht of bioplastic products per year2. Establish overseas markets for bioplastics compounding and- To export 1,500 ton per year of compound granules and bioplastic products worth 400 million baht perbioplastics productsyear.Action Plans (Total Budget)1. Encourage manufacturers toparticipate in domestic productexhibition shows(10 million baht)Functions (Budget)- Subsidize participation inexhibitions for manufacturers(10 million baht)- Collect data of annual productexhibitions and disseminate newsto manufacturers and consumersResponsible Agency(* Key Agency)- National InnovationAgency*- Ministry of CommerceSources of Budget FiguresSubsidy on exhibition participation for100 manufacturers during the 5-yearperiod, 0.1 million baht per company - atotal of 10 million bahtPeriod/Budget200820092010201120122 2 2 2 2

Action Plans (Total Budget)2. Encourage manufacturers toparticipate in productexhibitions and major tradeevents abroad(20 million baht)Functions (Budget)- Subsidize participation ofmanufacturers at exhibitions andtrade shows(20 million baht)- Collect data and publicizeproduct exhibition event abroadto manufacturers.- Coordinate cooperation betweenThai companies and foreigncounterparts- Coordinate cooperation withforeign companiesResponsible Agency(* Key Agency)- National InnovationAgency*- Ministry of Commerce- National InnovationAgency*- German TechnicalCooperation (GTZ)Sources of Budget FiguresSubsidy on participation in productexhibitions and trade promotion events forthe period of 5 years; granted to 100companies, 0.2 million baht each – a totalof 20 million bahtPeriod/Budget200820092010201120124 4 4 4 4Total Budget for STRATEGY 3.2: Building domestic and overseas markets 30 million baht 6 6 6 6 6

Strategy 4: Establishment of Supportive Infrastructure (225 million baht)4.1 Building industry standards for biodegradability and testing (55 million baht)Targets Key Indicators1. Set national biodegradability standards for bioplastics- To set up certification standards for biodegradation for domestic products, including assurance logofor certification2. Establish a Degradability Testing Center for bioplastics - To establish at least 2 functioning centersAction Plans (Total Budget)1. Establish a committee to setnational standards forbioplastics, including assurancelogo and render these standardseffective through publicannouncementFunctions (Budget)- Conduct preliminary study,define national standards, andsubmit for approval(5 million baht)- Execute these national standards(5 million baht) - Conduct public hearing onbiodegradability standardsResponsible Agency(* Key Agency)- National InnovationAgency*- Ministry of Industry*(Thai IndustrialStandards Institute)- Ministry of Industry*(Thai IndustrialStandards Institute)- National InnovationAgencySources of Budget Figures- Standards establishment –4 million baht.- 2 public hearings over 2-year period –1 million bahtPeriod/Budget20082009201020112 20.5 0.52012

Action Plans (Total Budget)2. Establish a DegradabilityTesting Center for bioplastics(50 million baht)Functions (Budget)- Support via subsidy fund forestablishing DegradabilityTesting Center of bioplastics(40 million baht)- Personnel development(10 million baht)- Provide information on testingtechniques and equipment.- Participate in development of theTesting Center- Support information and adviseon the model of Testing CenterResponsible Agency(* Key Agency)- National Science andTechnologyDevelopment Agency(NSTDA) *- Thailand Institute ofScientific andTechnological Research(TISTR)*- Department of ScienceService- Thai BioplasticsIndustry Association(TBIA)- German TechnicalCooperation (GTZ)Sources of Budget FiguresPurchase of equipments for 5 tests (40million baht):(1) Measureing carbon content beforetesting(2) Weighing(3) Measuring CO 2 by the DIC method(dissolved in organic solution) ortitration with Ba(OH) 2(4) Measuring O 2 through BOD test(5) Measuring CH 4 by using GCStaff training (10 million baht):- 5 million baht for domestic training- 5 million baht for on-the-job trainingabroad20084010Period/Budget2009201020112012Total Budget for STRATEGY 4.1: Building industry standards for biodegradability and testing 55 million baht 52.5 2.5 - - -

4.2 Environnent4.2.1 Environnemental conservation (50 million baht)TargetIndicators1. Implement government measures or policies to encourage andfacilitate the production and utilization of bioplastics- To establish at least 2 government measures/policies to encourage manufacturing and use ofbioplastics2. Establish pilot bioplastic project for environmental protection - To launch at least 2 projects/campaigns such as the Green Airline and Compost Bag for OrganicWaste3. Reduce the volume of waste in Bangkok - To reduce waste in Bangkok by at least 12 percent (equivalent to 1,000 tons per day)Action Plans (Total Budget)1. Study the available measuresand policies addressing theenvironmental issues in order tosupport the development ofbioplastics industry and theutilization of bioplastic product(10 million baht)2. Propose measures or policies toreduce greenhouse gases,reducing use of energy andchemicals from industrialsources.Functions (Budget)- Analyze the regulations, policiesand measures concerned withenvironmental issues in order tosupport the development ofbioplastics industry and theutilization of bioplastic product(10 million baht)- Propose regulatory control andpolicies or environmentalstandards, e.g. control of aerialdischarge from factories andgaseous ejection from biohazardincineratorResponsible Agency(* Key Agency)- National InnovationAgency*- Ministry of NaturalResource andEnvironment*(Department ofPollution Control)- Ministry of Science andTechnologySources of Budget FiguresThe analysis and research study onregulations, policies and standards onenvironment for the bioplasticsdevelopment worth 10 millionPeriod/Budget20082009201020115 52012

Action Plans (Total Budget)3. Propose measures or policiesfor local waste management4. Propose measures to promotethe use of bioplastics as meansto protect the environmentFunctions (Budget)- Propose waste managementmeasures with emphasis onhousehold waste separation- Participate in initiatives forpractical waste separation (e.g.supporting the Livable City,Livable Community Project)- Participate in generatingregulations for hospital wastemanagement- Propose incentives formanufacturers and consumersResponsible Agency(* Key Agency)- Ministry of NaturalResource andEnvironment* (Departmentof Pollution Control)- Ministry of Interior*(District Administration)- Ministry of Public Health*(Department of Health)- Ministry of NaturalResource andEnvironment*(Department ofEnvironmental QualityPromotion)Sources of Budget Figures2008Period/Budget2009201020112012- Propose incentives formanufacturers and consumers- Ministry of Commerce*5. Establish an efficientbiodegradable wastemanagement model(20 million baht)- Support measures for efficientwaste management.- Support measures for efficientwaste management.(10 million baht)- Encourage the waste separation(dry and wet) to enable the wasterecovery(10 million baht)- Ministry of NaturalResource andEnvironment* (Departmentof Pollution Control)- Ministry of Interior*(District Administration)- National InnovationAgency*Project funding of 10 million baht for5-year implementation period2 2 2 2 22 2 2 2 2

Action Plans (Total Budget)6. Conduct Life Cycle Assessment(LCA) for bioplastics andcompare with result fromconventional plastics(10 million baht)7. Green Airport Project forSuvarnbhumi InternationalAirport8. Pilot community project forbioplastic bags and organicwaste for biogas production; tobe implemented in 2 selecteddistricts(10 million baht)Functions (Budget)- Support the LCA analysis ofbioplastics- Appoint researcher(s) to study,gather information, analyze andconduct LCA for bioplastics(10 million baht)- Promote the use of bioplastics inthe airport compound- Create understanding aboutwaste separation to people in thecommunity- Distribute garbage bags withinthe target community(10 million baht)- Coordinate and createunderstanding with communityin the pilot areas.Responsible Agency(* Key Agency)- Ministry of NaturalResource andEnvironment*(Department of PollutionControl)- National Science andTechnology DevelopmentAgency (NSTDA)*- Ministry of Transport*- Ministry of Interior*(District Administration)- Thailand EnvironmentalInstitute (TEI)*Sources of Budget FiguresFunding for the LCA study worth 10million bahtFunding for the provision of bioplasticgarbage bags for the duration of 5years; 1 year for 1 locality withestimated 5,000 bag/day, worth 10million baht in totalPeriod/Budget200820092010201120125 52 2 2 2 2Total Budget for STRATEGY 4.2.1: Environnemental conservation 50 million baht 16 16 6 6 6

4.2.2 Public relations and building awareness (120 million baht)TargetIndex1. Arrange campaigns to introduce bioplastics to consumers - To hold regional exhibition on bioplastics once a year during the 5-year period2. Create positive attitudes towards using bioplastics, including social - To create advertising media including, but not limited to, radio and television spotsand environmental consciousnessAction Plans (Total Budget)1. Hold the exhibition introducingbioplastics.(5 million baht)2. Integrate the content onbioplastics into EnvironmentStudies in the educationcurricula.3. Establish and/or purchasedocumentary on bioplastics, anddistribute to school andinstitutions of higher education(30 million baht)4. Environment Innovation Award(5 million baht)5. Produce television and radiopromotional media(30 million baht)Functions (Budget)- Enhance public understanding onbioplastics, from manufacturingprocesses, degradation andenvironmental impacts(5 million baht)- Submit the content to be added tothe curricula- Produce or purchasedocumentaries(30 million baht)- Distribute documentary toeducation institutes- Determine conditions andaward prizes(5 million baht)- Produce advertising media tocreate positive attitudes towardsbioplastics(30 million baht)Responsible Agency(* Key Agency)- National InnovationAgency*- Ministry of Education*(Schools, colleges anduniversities)- National Science andTechnology DevelopmentAgency (NSTDA)*- Ministry of Education*(Schools, colleges anduniversities)- National InnovationAgency*- National InnovationAgency*Sources of Budget Figures5 exhibitions over the 5-year period;total budget of 5 million bahtSubsidy fund of 5 million baht topurchase a documentary from overseas(e.g. BBC or NHK from Japan, or toproduce locallyPrize money and event support of 1million baht per yearSubsidy fund of 30 million baht for theduration of 5 years – 1 event per year,max 6 million baht per promotionaleventPeriod/Budget200820092010201120121 1 1 1 16 6 6 6 61 1 1 1 16 6 6 6 6

Action Plans (Total Budget)6. Convene an internationalexhibition in Thailand(50 million baht)Functions (Budget)- Organize exhibitions andpublicize the events(50 million baht)Responsible Agency(* Key Agency)- National InnovationAgency*Sources of Budget FiguresHosting 1 exhibition per year;10 million baht set for each eventPeriod/Budget2008200920102011201210 10 10 10 10Total Budget for STRATEGY 4.2.2: Public relations and building awareness 120 million baht 24 24 24 24 24

4.3 Policies (Technology, Industry, Environment)TargetKey Indicators1. Establish supportive technology policies - Technology policies created and implemented2. Establish supportive policies for bioplastics industry business - Industry business policies created and implemented3. Establish supportive policies to stimulate domestic and exportmarkets- Market stimulation policies created and implementedAction Plans (Total Budget)1. Propose policies and measuresto accelerate growth andtechnology transferFunctions (Budget)- Issue policies and measures fortax, inducement, privileges andexemptions (such as the privilegefor tax exemptions forinvestment in technology R&D)- Issue policies and measures toaccelerate technology R&DResponsible Agency(* Key Agency)- Ministry of Finance*(Thai Customs Department,Revenue Department)- National InnovationAgency*- National Research Council- Ministry of Education(education institutes,Commission on HigherEducation, Institute for thePromotion of TeachingScience and Technology)- Thailand Research FundSources of Budget Figures2008Period/Budget2009201020112012

Action Plans (Total Budget)2. Propose policies and measuressupporting bioplastic industrydevelopment3. Propose policies and measuresfacilitating import and export ofcompounding granules andbioplastic productsFunctions (Budget)- Issue policies to supportestablishment of bioplasticsproduction facilities (e.g. taxprivileges for investment)- Issue policies to enforce somelocally produced plastic parts,e.g. electrical parts, to bereplaced by bioplastics- Issue policies, measures, taxprivileges, trade privileges andinternational measuresfacilitating imports and exportsof bioplastics- Issue biodegradation standardsResponsible Agency(* Key Agency)- Ministry of Industry*(Dept. of IndustrialPromotion, Board ofInvestment, Office ofIndustrial Economics,Office of SME Promotion,Industrial Estate Authority)- Ministry of Finance- Ministry of NaturalResource andEnvironment*- Ministry of Industry(Board of Investment)- National InnovationAgency- Ministry of Finance*(Thai Customs Department,Revenue Department)- Ministry of Commerce(Dept. of Foreign Trade,Dept. of Interior Trade,Dept. of Trade Promotion,Dept. of Export Promotion)- National InnovationAgency- Ministry of Industry*(Office of SME Promotion,Industrial StandardsInstitute)- National InnovationAgencySources of Budget2008Period/Budget2009201020112012

Table 2.2 Summary of Annual Budget AllocationOrganizationYear/Budget (million baht)2008 2009 2010 2011 2012Total1. Ministry of Agriculture and Cooperatives 11.0 11.0 9.6 9.2 9.2 50.02. Ministry of Industry 5.0 5.0 - - - 10.03. National Research Council of Thailand 496.0 224.0 147.0 14.0 14.0 895.04. National Science and Technology Development Agency 36.0 11.0 6.0 6.0 6.0 65.05. Thailand Institute of Scientific and Technological Research 25.0 - - - - 25.06. National Innovation Agency 238.0 288.0 98.5 45.5 45.0 715.07. Ministry of Commerce 4.0 4.0 4.0 4.0 4.0 20.08. Ministry of Interior (District Administration Organizations andBangkok Metropolitan Administration)4.0 4.0 4.0 4.0 4.0 20.0Total 819.0 547.0 269.1 82.7 82.2 1,800.0

Table 2.3 Annual budget allocation for Strategy 1OrganizationYear/Budget (million baht)2008 2009 2010 2011 2012Total1. Ministry of Agriculture and Cooperatives 11.0 11.0 9.6 9.2 9.2 50.02. Ministry of Industry - - - - - -3. National Research Council of Thailand 22.0 20.0 8.0 - - 50.04. National Science and Technology DevelopmentAgency5. Thailand Institute of Scientific and TechnologicalResearch- - - - - -- - - - - -6. National Innovation Agency - - - - - -7. Ministry of Commerce - - - - - -8. Ministry of Interior - - - - - -Total 33.0 31.0 17.6 9.2 9.2 100.0Table 2.4 Annual budget allocation for Strategy 2OrganizationYear/Budget (million baht)2008 2009 2010 2011 2012Total1. Ministry of Agriculture and Cooperatives - - - - - -2. Ministry of Industry - - - - - -3. National Research Council of Thailand 474.0 204.0 139.0 14.0 14.0 845.04. National Science and Technology DevelopmentAgency5. Thailand Institute of Scientific and TechnologicalResearch- - - - - -- - - - - -6. National Innovation Agency 42.5 42.5 25.5 12.5 12.0 135.07. Ministry of Commerce 4.0 4.0 4.0 4.0 4.0 20.08. Ministry of Interior - - - - - -Total 520.5 250.5 168.5 30.5 30.0 1,000.0

Table 2.5 Annual budget allocation for Strategy 3OrganizationYear/Budget (million baht)2008 2009 2010 2011 2012Total1. Ministry of Agriculture and Cooperatives - - - - - -2. Ministry of Industry 5.0 5.0 - - - 10.03. National Research Council of Thailand - - - - - -4. National Science and Technology DevelopmentAgency5. Thailand Institute of Scientific and TechnologicalResearch- - - - - -- - - - - -6. National Innovation Agency 168.0 218.0 53.0 13.0 13.0 465.07. Ministry of Commerce - - - - - -8. Ministry of Interior - - - - - -Total 173.0 223.0 53.0 13.0 13.0 475.0Table 2.6 Annual budget allocation for Strategy 4OrganizationYear/Budget (million baht)2008 2009 2010 2011 2012Total1. Ministry of Agriculture and Cooperatives - - - - - -2. Ministry of Industry - - - - - -3. National Research Council of Thailand - - - - - -4. National Science and Technology DevelopmentAgency5. Thailand Institute of Scientific and TechnologicalResearch36.0 11.0 6.0 6.0 6.0 65.025.0 - - - - 25.06. National Innovation Agency 27.5 27.5 20.0 20.0 20.0 115.07. Ministry of Commerce - - - - - -8. Ministry of Interior 4.0 4.0 4.0 4.0 4.0 20.0Total 92.5 42.5 30.0 30.0 30.0 225.0

Expected Outputs from the Implementation ofthe National Road Map for the Development of Bioplastics IndustryEconomic, industrial and agricultural aspect (valued 4.5 billion baht)• Establishment of new wave industry and a complete range of innovativebioplastics business (from the upstream to downstream) with an investment valueof 3,000 million baht.• An ability to reach 1 percent of the market share (by value) of plastic productsproduced, worth 1.5 billion baht.• New value creation and value-added which will increase a price stability foragricultural crops used as feedstockTechnological aspect (valued 500 million baht)• New technology for the country, leading to at least 50 items of the intellectualproperty, worth 300 million baht.• Technology transfer and business integration between foreign technology ownersand local partners, making use of Thailand’s supplies of biomass. The economicvalue of this contribution to the country’s technology base is valued at 100 millionbaht.• Creation of national core expertise in specialized fields, leading to integrated andtargeted R&D which will create the industrial innovation research work valued at100 million baht.Environmental aspect (valued 500 million baht)• Budget reduction of 400 million baht (currently allocated to dispose of theconventional plastic wastes).• Awareness and consciousness of the environment preservation throughoutThailand’s population.• Use of biodegradable plastic products to help enhance quality of life andcontribute to environmental protection.• Pilot demonstration areas with the complete range of system of biodegradableplastic use, with an environment value of 100 million baht.Policy aspect• Establishment of effective policies and measures which will promote and facilitateinvestment in the bioplastics industry.• Establishment of effective policies and measures to accelerate, R&D andtechnology transfer for manufacturing of bioplastics.• Measures and environmental regulations supporting the use of biodegradableplastics.• Bioplastics industry measures.

AbbreviationsOrganizationASEANMTECNIANRCTPPCR&DSMETBIAAssociation of South East Asian NationNational Metal and Materials Technology CenterNational Innovation AgencyNational Research Council of ThailandPetroleum and Petrochemical CollegeResearch and DevelopmentSmall and Medium EnterpriseThai Bioplastics Industry AssociationChemical reagentsAACBDOBODCODDMTDOADOPHDPEHDTLDPEPBAPBATPBSPBSAPBTPCLPDLAPDOPEPEGPESPETPGAPGLAPHAsPHBPHBVPLAPLLAaliphatic-aromatic polyester1,4-butane diolbiological oxygen demandchemical oxygen demanddimethyl terephthalatedioctyl adipatedioctyl phthalatehigh density polyethyleneheat distortion temperaturelow density polyethylenepoly(butylene adipate)poly(butylene adipate terephthalate)poly(butylene succinate)poly(butylenes succinate adipate)poly(butylene terephthalate)poly(carprolactone)poly(d-lactic acid) or poly(d-lactide)1,3-propane diolpolyethylenepoly(ethylene glycol)poly(ethylene succinate)poly(ethylene terephthalate)poly(glycolic acid)poly(glycolic-co-lactic acid)poly(hydroxyalkanoate)spoly(hydroxybutyrate)poly(hydroxybutyrate-hydroxyvalerate)poly(lactic acid) or polylactidepoly(l-lactic acid) or poly(l-lactide)

PPPSPTTPVAPVAcPVCTgTmTPATPSpolypropylenepolystyrenepoly(trimethylene terephthalate)poly(vinyl alcohol)poly(vinyl acetate)poly(vinyl chloride)glass transition temperaturemelting temperatureterephthalic acidthermoplastic starch