"After Hours" EP.1 with Pak Lam Brian Chan
Today on the “After Hours” podcast by Permias Mass, we have Pak Lam Brian Chan, Non-executive Director of ELL Environmental Holdings (1395.HK)
11 October 2024
Permias Massachusetts
Boston
On our first episode of the “After Hours” podcast by Permias Massachusetts, we have the pleasure of speaking with Pak Lam Brian Chan, Non-executive Director of ELL Environmental Holdings (1395.HK). This article is a short preview of the podcast; find the full version on the Permias Massachusetts YouTube channel and social platforms.
ELL Environmental Holdings Limited is a publicly traded investment holding company on the Hong Kong Stock Exchange. ELL designs, constructs, operates, and maintains wastewater treatment facilities in the People’s Republic of China, Hong Kong, and Indonesia.
Pak Lam Brian Chan (left), Oliver Tedja (middle), Eldric Pradjonggo (right)
Meeting with Gobi Partner's Chibo Tang
Introduction
Mr. Chan was born and raised in Hong Kong, though his family has Indonesian roots, as his father was born in North Sumatra. His family moved to China and later to Hong Kong in the 1960s. He studied in Hong Kong, the UK, and the US. After working for a period in the US, he moved to Indonesia in 2013 due to a joint venture with Indonesian companies. Initially, the company focused on nickel smelting, but over time, it diversified into renewable energy, which is now their primary focus.
“Biomass power generation only accounts for 6% of global energy supply. What key opportunities do you see with this energy source, and what makes it attractive to you?”
Indonesia has an abundant supply of biomass, particularly from palm oil plantations, making it more viable compared to countries with colder climates. Unlike in countries with winter, where biomass supply is inconsistent, Indonesia’s biomass is centralized and more accessible. While biomass is challenging to process and manage, its abundance in Indonesia and the lack of competition from larger companies and state owned enterprises focusing on coal create significant opportunities.
“How does ELL Environmental Holdings adapt to global market trends in wastewater treatment and biomass power generation? Are there new markets you are aiming to expand into?”
Mr. Chan explained that the company is primarily focused on expanding within Indonesia and is not yet looking to enter new markets. However, they are closely monitoring trends like carbon credits and ESG-related funding. He noted that Indonesia’s carbon credit market is still developing, and the government’s regulations on carbon trading are unclear.
Mr. Chau On Ta Yuen, Chairman and Executive Director of ELL Environmental (middle), together with other guests and Listing Committee Member of HKEX
“How does ELL Environmental Holdings position itself in the competitive landscape? What makes your products or services unique compared to others in the market?”
The company remains competitive by specializing in biomass power generation rather than trying to cover multiple areas of renewable energy. This focus allows them to develop a deep understanding of the supply chain and processes for biomass fuel processing, giving them a competitive edge. By fully integrating the supply chain, they have created a barrier that makes it difficult for new competitors to enter the space.
What role does tech play in your business operations, have you looked into using AI?
Technology plays a crucial role in the company’s operations, particularly in managing the power plants through centralized control systems. The company also uses ERP systems for administrative tasks and Power BI for production analysis. Regarding AI, it’s a valuable tool for learning and decision-making. Mr. Chan uses AI tools like ChatGPT to accelerate learning and has introduced it to the company’s employees. A notable example of the use of AI in ELL is bridging the language barrier between countless Indonesian and Chinese engineers, translating large amounts of documents so they are understandable by all. While there’s still work to be done in integrating AI fully into their operations, he believes it can enhance productivity.
What do people misunderstand about the industry/ company the most?
Many people have the misconception that renewable energy is an easy and lucrative business. In reality, renewable energy development in Indonesia has been slow, and there is little support for initiatives like carbon credits. While renewable energy may be promising for the future, it is currently a challenging and underdeveloped market in Indonesia.
Mentorship is extremely important for everyone regardless of age. Have you had any impactful mentors, and if so, how have they assisted you in your career?
Mr. Chan reflected on the importance of mentorship, explaining that while he did not have formal mentors, many people have influenced him throughout his career. These mentors include individuals he met in person, as well as those he learned from through books and videos. He believes that mentors help provide new perspectives and uncover things you might not have been aware of, a concept he related to the Johari window. This model helps illustrate how mentors can assist in revealing things that were previously unknown or unnoticed.
What piece of advice would you give a student who would like to work in your industry?
His advice to students is to focus on learning and follow a structured approach, much like adhering to a workout plan at the gym. He stressed the importance of learning as much as possible, following a plan, and iterating from there. In today’s world of information overload, he also emphasized the need to filter good information from bad and to join high-quality groups that can help streamline the learning process.