Click here to subscribe to
Planet-Profit Report, reporting on sustainable development in the Western United States.

Industry interview: Syed Isa Syed Alwi: Part 1

A key player in the Asian algae world

From AlgaeIndustryMagazine.com

When Syed Alwi speaks about the algae industry, you get the feeling that he really has his finger on what’s going on globally. He gets around, and is a bit of a kingpin in the Asian algae world, orchestrating much of the disparate algae talent and intelligence throughout his 12-country region.

Syed Isa Syed Alwi is the CEO of the Algaetech Group of companies, based in Malaysia, and comprised of Bio Herbal Extract, Sasaran Biofuel, and PT Biomac Batam, all algae-based renewable energy and bio-technology companies.

The Algaetech group’s business activities include research, development, consultancy and commercialization of microalgae for biodiesel feedstock production and processing, as well as microalgae for other applications and high value products, such as anti oxidants. Located within the Malaysia Technology Park, Algaetech operates a 17,000 sq. ft. R&D and processing center, with a state-of-the-art microalgae laboratory, and some microalgae ponds.

Algaetech International Sdn. Bhd. was founded in 2004 by Syed to specialize in microalgae research and development, as well as consultancy services, for the Malaysian and Indonesian markets. Algaetech’s consulting services are based on its trademarked Algae Integrated Management System (AIMsys), which provides real-time monitoring of an algae cultivation facility, including computerized automation control system of the process’s conditions, customized reporting and analysis.

We spoke with Syed recently while he was in Seoul, Korea—to sign an MOU with the owners of one of their powerplants—just before he headed back home to Kuala Lumpur..

What was the stimulus that got you involved in algae research and production?

I started with the renewable energy business looking into the cultivation of Jatropha in Indonesia and Malaysia. We purchased a lot of equipments, and on one of those buying trips to the Netherlands, the supplier told us about algae. We started doing a lot of research and eventually received a grant from the Malaysian Government through the Ministry of Science and Technology. The Techno-Fund allowed us to do further research on algae for biodiesel. And, of course, this led us to dedicate more effort and resources on further research into algae.

Tell us about your educational and employment background?

I started off my career in Europe as a chef, and then worked in Malaysia in the hotel industry, and returned to Europe after that to work in the food industry.

We produced meals for KLM, SABENA, and the top supermarket chains in France, Belgium and the Netherlands. When we produced food in Europe, the laws and regulations were very stringent, and there were hundreds of pages of checklists when we do production. That was really good for me as a processing person, and prepared me for the laboratory scenario today. I also worked in a few publically-listed companies in Malaysia—in food processing and food services—which also helped me gain knowledge and experience in those processes.

Describe the operation you currently run in Malaysia, and what your long-term goals are for the company?

The Algaetech operations now have a few offices. Our head office in Kuala Lumpur, Malaysia, runs the operations for our Batam, Jakarta and Guangzhou, China offices. We have started some activities in Korea, and most recently Brunei. The Brunei Government, through its body the Brunei Economic Development Board, are showing us keen interest to have us set up facilities there.

We manage five core activities: R&D for algae in our lab, where we do all tests and fine-tuning work for our ongoing algae projects.

Second, we run a consultancy and project unit, which basically deals with clients that have an interest in looking into algae, such as for CO2 sequestration, wastewater treatment using algae, and algae culturing. Currently we are completing a project in Indonesia that, I would say, is the largest PBR for Nannochloropsis in the world – and comes with a CO2 sequestration model.

We have recently signed an agreement with Pahang Biodiesel Corporation, a Pahang State-owned algae farm in Malaysia, which is planning a US$400 million project that would be one of the largest algae farms for biofuel in the world. It’s still at the planning stage. There will be a global incubator program with other algae experts, in the Malaysia Integrated Algae Valley.

We also created AIMSYS, an integrated algae farming process and system that will assist algae businesses. This system will define and automate the entire set of project parameters—sort of like conducting an orchestra.

Then we have our primary production: our farm in Thailand, a spirulina farm in Jakarta, Indonesia, and we are currently planning an acquisition of a 70 hectare algae farm in Nakhon Ratchasima, in Thailand. In the pipeline are the farms in Korea and also in Brunei.

Lastly we operate the PREMIA brand, which markets our own brand of consumer goods. The PREMIA ex Spirulina, is already on the market in Malaysia, Indonesia and Pakistan. We are planning to expand into Korea and the Middle East soon, as it goes along with the planning of the primary production in our new farms.

What are the current milestones you are dealing with at Algaetech, and how do you feel about the progress you are making?

Preparation wise, 2011 is when we will liftoff to become a global player for the algae industry. We started in 2004, and it was not an easy ride for us. Literally speaking, at first it was like trying to sell ice to Eskimos. Many people never heard of algae the way we talk about it, and trying to explain to people who had no idea what it’s all about is a big challenge. However, thanks to the huge leap made by a few larger companies, many people are beginning to see algae as the saviors of our world. Many years ago, at an exhibition in London, I saw a postcard that read, “Can algae save the world?” And that little image always pops into my mind. I really and truly believe that it can!

As a company, one of the most important breakthroughs that we made is when we completed the “Algae for Biodiesel” project. Because of that we are now working hand-in-hand with EADS (the x

Progress-wise, I wish we had more money to do more research, but based on what we have done and achieved, I am especially thankful to my wonderful team of young, energetic people. It proves that if we set our minds to it there is nothing we can’t achieve.

As someone who travels the world observing developments in the global algae industry, please share some of your observations about how you see the industry developing around the world?

Everyone in the world that matters is talking about algae—many for energy and biofuel, and some for chemical resources. As the world shies away from chemicals, more and more companies are looking into algae as the source for many products. I once met an Ajinomoto representative who wanted a different alternative to tapioca as the source of monosodium glutamate fermentation. Another time I met a lady from IKEA, and they were looking for alternatives to oil for making candles. It’s amazing—all of the applications that are out there!

What is your view of the algae industry’s development In Asia?

Asia is emerging; I think that South East Asia will be the new Middle East of the world. We have land, water and plenty of sunlight.

It has been a dream of mine to create the Asian Algae Institute; a body that will regulate algae research in the 12 Asian countries, and move on with mega projects of millions of acres of algae—both offshore and onshore. Yes, I must say, Asia is the place to be, and the time is now!

What about algae in Europe?

Weather is a main issue. Clever people are there, and they will try to prove a point, but eventually it will make sense, if we all agree, that we must do it in a place where the land, labor, and other resources are cheap. Europeans are very determined, and from the point of view of technologies, I think that in the long run, the idea to work together will benefit all. Having said that, however, issues such as wastewater and agriculture waste for algae are not bad ideas, and could be something that can be further developed there.

These PBRs, located in Indonesia, are part of a CO2 sequestration project. There are 5 modules, each capable of holding 400,000 liters.”
What about North America?

I think there are a lot of clever people in the USA as well. I think they are going to make some great breakthroughs in algae soon, with Aurora and Sapphire and Exxon Mobile putting millions and millions into algae research. The sad part is, though, that if the same amount of money could be put into Asia, they would be able to do 10 times more here than what can be achieved over there. I think we must create consortia to bridge the algae technologies across the continents. I am glad that we are already doing this with some of our fellow colleagues in the US, Europe, Middle East and other parts of world.

My main concern with American companies is with their eagerness to patent, which means that if a company discovers something, no one else can use it. It’s like creating a monopoly.

I think that algae technology, to a certain extent, should be for all to use—it’s for mankind. It’s something like cooking. Everyone is allowed to cook food, even though not everyone can cook well. These “breakthroughs” in the lab don’t guarantee that an end user will get anywhere near the same results, for so many reasons. So why have such a restrictive system?