Biobased Products Value Chain- Feedstocks, Products & Markets -

RRM-Meeting Brussels, 2nd April 2014

Rainer Busch, T+I ConsultingDietrich Wittmeyer, ERRMA

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Update: 25.5.2014

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Bio-based products‘ value chains

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• Value Chain 1: From lignocellulosic feedstock to advanced biofuels, bio-based chemicals and biomaterials: realising the feedstock and technology base for the next generation of fuels, chemicals and materials

• Value Chain 2: The next generation forest-based value chains: utilisation of the full potential of forestry biomass by improved mobilisation and realisation of new added value products and markets

• Value Chain 3: The next generation agro-based value chains: realising the highest sustainability and added value by improved agricultural production, and new added value products and markets

• Value Chain 4: Emergence of new value chains from (organic) waste: from waste problems to economic opportunities by realising sustainable technologies to convert waste into valuable products

• Value Chain 5: The integrated energy, pulp and chemicals biorefineries: realising sustainable bio-energy production, by backwards integration with biorefinery operations isolating higher added value components

Biobased Industries Consortium: Five Value Chains

OIL SEEDS & VEGETABLE OILS

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Feedstock Inter-mediates

Raw Materials

(Platform)Chemicals

Materials,Products

• Oil seeds• Animals

• Oils• Fats

• Surfactants• Fatty acids• Fatty alcohols• Glycerine

Markets

• Paints & Inks• Lubricants• Detergents

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Oilseeds: European Production & TradeEU-27

Source: Fediol

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Plant Oils: European Production & TradeEU-27 Source: Fediol

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Plant Oils: European Consumption per SectorEU-27

Source: Fediol

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Plant Oils: Consumption in other industrial applicationEU-27

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Also available:

• Global production of Palm & Palm Kernel oil• Global production of Soybean oil• Global production of Rapeseed oil• Global production of sunflower oil

Source: FAO

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Plant Oil Derivatives: European ProductionEU-27

Source: EUROSTAT

ANIMAL FATS

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SUGAR

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Sugar: European Sugar Crops ProductionEU-27

Source: FAOSTAT

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Sugar: European Sugar Crops TradeEU-27

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Sugar: European Sugar Production and TradeEU-27

Source: CEFS, FAOSTAT, EU Commssion (DG Agri)

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Sugar: European Sugar Consumption per SectorEU-27

STARCH

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Starch: European Starch Plants Production & TradeEU-27

Source: AAF

Source: EUROSTAT

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Starch: European Starch Production & TradeEU-27

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Starch: European Starch Consumption per SectorEU-27

CELLULOSE

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Cellulose: European Lignocellulose Feedstock ConsumptionEU-27

Source: CEPI

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Cellulose: Production of CelluloseEU-27

Source: CEPI

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Cellulose: European Consumption of CelluloseEU-27

Source: CEPI

PRODUCTS & MARKETS

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Source: FUCHS AG

Lubricants

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Platform Chemicals

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Composites

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Plastics

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Biobased Solvents

2013 bio-based solvents market• Total European solvents market is estimated with 5 million tonnes

yearly.• Different sources (Dechema, Fraunhofer Institute, ESIG) estimate

today’s bio-based solvents volume with 50 to 100 KT (1 to 2%)• JRC Report 2013 (EUR 25743 EN) gives a market of 630 KT bio-

based solvents.• Difference is identified to be related to the ethanol supply chain.

An European market of 630 KT bio-based solvents can be confirmed considering bio-ethanol used directly as a solvent or as a feedstock for other solvents.

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Biobased Solvents

Solvents and the Ethanol case (source NNFCC and industry):• Ethanol global production 2008: 61 million tonnes (> 90% bio-based)• Most applications in fuels and food & beverages• Ca. 6 million tonnes for the industry• Part of ethanol is used directly as a solvent, part blended with other solvents

(e.g. ETOH/ETAC blend for inks), part used for downstream products (solvents like ETAC or non-solvents like ethylene, acetic acid…)

• Applications may switch back and forward considering market conditions• The solvents application of ETOH, being bio-based or not, is very low

compared with biofuel but as well industrial applications considering for example the chain ethanol ethylene polyethylene

• Bio-ethanol from biomass is a mature market being highly impacted by policies and incentives.

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Biobased Solvents

Prediction (what can we reasonably say today)• Main solvents application are ethanol and downstream products or

blends• Development of ethanol will remain highly affected by regional and

local policies• Other bio-based solvents (alcohols, acetates) are mainly oxygenated

solvents and have very low volumes representing no more than 1% of the market

• Their development will depend on competitive production conditions• Today, it is not possible for the solvents industry to give serious

fact based prediction of bio-based solvents market.

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Biobased Solvents

Some additional considerations in the bio-based solvents context• Feedstock availability at competitive conditions• Competitive production process• Pull from downstream users• Long term predictability of legal and incentives conditions• Standardization will give the frame for companies and

downstream users to develop their own bio-based strategies

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Surfactants

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Surfactants