Internnational Conference Report
OleochemicalsOutlook Conference(3)
Oleochemical Outlook Conference was opened during August 22-23 at Le Meridian Hotel in
Jakarta, Indonesia. We were invited as a media partner of this conference. So we highlight last
issue of after conference report this time as under.
16:15 DEVELOPMENT IN OLEOCHEMICALS 16:15 DEVELOPMENT IN OLEOCHEMICALS 16:15 DEVELOPMENT IN OLEOCHEMICALS 16:15 DEVELOPMENT IN OLEOCHEMICALS
TECHNOLOGYTECHNOLOGYTECHNOLOGYTECHNOLOGY
Mr.Manfred Hoffmann, Director, Sales & Business Mr.Manfred Hoffmann, Director, Sales & Business Mr.Manfred Hoffmann, Director, Sales & Business Mr.Manfred Hoffmann, Director, Sales & Business
Development Development Development Development ---- Oleochemicals Business Group Oleochemicals Business Group Oleochemicals Business Group Oleochemicals Business Group
Lurgi GmbH Lurgi GmbH Lurgi GmbH Lurgi GmbH
Improvements in Hydrogenation of Methylesters
and Waxesters to Fatty Alcohols
●1992 : Lurgi uses for the first time a “fixed bed
trickle bed reactor” for the hydrogenation of
methylester to Fatty Alcohol. (Batamas Megah)
●Before that, slurry reactors for both continuous
hydrogenation were the standard.
● The basic principles of petro-refinery
hydrogenation processes as catalytic hydrocracking
or hydrotreating like HDS, HNS, HDW,
isomerization,...etc. are widely explored and
published
●Hydrogenation of Esters are less examined
●Lurgi’s Oleochemists adapted the petro-refinery
process for ester hydrogenation
●2002 : the hydrogenation process was modified for
Wax-Ester as feed
●VVF India was the first to implement the
Wax-Ester trickle bed process
●Since then several Wax-Ester Hydrogenation
plants were implemented. Domba Mas (DMG),
Sawit Mas (SMG), Teck Guan, SABIC (start up
planned in end 2013) Sinar Mas (ESM)
●Important design parameters have been upscaled
by maintaining ratios for reactor design and
compressor capacity
Areas of ImprovementAreas of ImprovementAreas of ImprovementAreas of Improvement
●Heat recovery from hydrogenation process
● Temperature control and “hot spot prevention”
in trickle bed reactor
● Sizing of H2-Recycle Compressor
● Utilisation of catalyst filling
Day 2 Day 2 Day 2 Day 2 ---- [23 Aug, 2013 [23 Aug, 2013 [23 Aug, 2013 [23 Aug, 2013 ---- Friday] Friday] Friday] Friday]
09:10 SOAP NOODLE OUTLOOK09:10 SOAP NOODLE OUTLOOK09:10 SOAP NOODLE OUTLOOK09:10 SOAP NOODLE OUTLOOK
Mr.Sovakar Nayak, Vice President Palms Mr.Sovakar Nayak, Vice President Palms Mr.Sovakar Nayak, Vice President Palms Mr.Sovakar Nayak, Vice President Palms
Resources Pte Ltd Resources Pte Ltd Resources Pte Ltd Resources Pte Ltd
【Formation of soap】
Soap Noodles are produced from saponification of
neutral fats & oils, neutralization of fatty acids, and
methyl esters.
Commercially used oils & fats for soap are
1.Coconut, 2.Palm, 3.Cottonseed, 4.Rice bran,
5.Palm kernel, 6.Castor, 7.Neem, 8.Sunflower,
9.Soya bean, 10.Rapeseed, 11.Karanja, 12.Shea oil,
13.Sesame Oil for vegitable fats, and 1.Tallow,
2.Lard, 3.Fish Oil for animal fats.
Selection of raw materials are decided by the
folloiwng elements:
•Fat Charge
•Use of Proprietary Technology
•Control on cost of quality
•Offering specialty and customized
Soap noodles market are composed by Tolling &
Long Term arrangement, Free Merchant market
and Captive Market.
Top 25 global soap brands hold about 80% world
toilet soap market. Growth is concentrated in Asia,
Africa & South America with Asia accounting for
maximum growth. Its Shifted from Tallow to
Vegetable oil. Liquid soaps & shower gels gaining
momentum in developed markets. Soap Noodle
requirements are outsourced by key customers.
Free merchant market likely to grow at lower rate
over tolling / long term contract due to consolidation
of large soap manufacturers.
【Toilet soap growth】
Global growth in Toilet Soap is about 2.0% per year.
Negative growth is in developed World and Positive
growth is in Asia, South America, MENA. Total
Toilet Soap in 2012 was estimated to be 3.77 million
Mt, and is expected to reach to 4.08 Mn Mt in 2016.
Continuously toilet soap is shiftted from Tallow to
Vegetable base. 85% of Tallow Soap Noodles is for
Captive consumption. Re-classification of Tallow as
waste oil for use in biodiesel effected use in soap in
Europe and ROW.
Innovation and flexibility of operation is the key.
Cost leadership strategy and integration will take it
forward. Global alliance, long-term contracts & joint
developments are helpful. Multi locational and
distribution will in yield higher market share.
Indonesia tax incentives vs. investments wil give
big impact.. Capacity growth is out-stripping
market growth. Due to excessive capacity, it is a
buyers’ market.
09:45 TRENDS IN FABRIC CARE AND 09:45 TRENDS IN FABRIC CARE AND 09:45 TRENDS IN FABRIC CARE AND 09:45 TRENDS IN FABRIC CARE AND
CLEANING MARKETCLEANING MARKETCLEANING MARKETCLEANING MARKET
Mr.Aseem Puri, Marketing Director Unilever Asia Mr.Aseem Puri, Marketing Director Unilever Asia Mr.Aseem Puri, Marketing Director Unilever Asia Mr.Aseem Puri, Marketing Director Unilever Asia
Pte Ltd Pte Ltd Pte Ltd Pte Ltd
We believe in the power of BRANDS to improve
people’s LIVES & We want to be the world’s best
marketing company.
●Dramatic Shift from handwash to machine
wash. Every year 50-100million people buy
machines. Large fabric clean markets still at low
penetration levels. How to win in machines? Move
to specialist products that perform in machines.
Need Clean, Care, BrightnessvSolutions. Partner
with Washing Machine Manufacturers to educate
consumers.
●Transformation From Powders to Liquids
Why & Why Not Liquids? Because, Mild on Hands,
Better Fragrance, Can pre treat stains easily,Too
Expensive, Too Mild.
If we move liquids to 50% of the market…the
opportunity is billions。
Lower Cost, High Foam Solutions, Better General
Cleaning Additives For surface dirt Better
Fragrance Delivery.
●Creating Sustainable Solutions
Effort & Water saving is highly talkable,Did you
know that a you have to wash 7700 clothes in a year.
Did you know that you end us wasting 14400
litresof water on just rinsing clothes every year.
One Rinse –Cutting Foam in a single rinse
The amazing benefits of 1 rinse Fabcon: Water
saving between 3000-4000 litres per annum per
household based on cutting down 2 rinses. Time
saving: Saving of 25-40% of washing time for the
housewife due to cutting rinsing. Effort saving:
Saving of significant physical effort by avoiding the
need to rinse again and again. Saving billions of
litres of water with COMFORT ONE RINSE!
10:45 LATEST INNOVATIONS & 10:45 LATEST INNOVATIONS & 10:45 LATEST INNOVATIONS & 10:45 LATEST INNOVATIONS &
PERFORMANCE OF RENEWABLE PERFORMANCE OF RENEWABLE PERFORMANCE OF RENEWABLE PERFORMANCE OF RENEWABLE
SURFACTANTS FROM BIOREFINERYSURFACTANTS FROM BIOREFINERYSURFACTANTS FROM BIOREFINERYSURFACTANTS FROM BIOREFINERY
Mr.John YS Lim, General Manager Mr.John YS Lim, General Manager Mr.John YS Lim, General Manager Mr.John YS Lim, General Manager ---- Asia Asia Asia Asia
Elevance Renewable Sciences Singapore Pte Ltd Elevance Renewable Sciences Singapore Pte Ltd Elevance Renewable Sciences Singapore Pte Ltd Elevance Renewable Sciences Singapore Pte Ltd
High Performance Specialty and Intermediate
Chemicals from Natural Oils enabling products
addressing critical customer needs. Old way
was Conventional Petroleum‐Based Processes are
energy and capital intensive. New way is natural oil
‐based simple process with efficient energy and
cost footprint. Elevance Advantage is an Elegant
Conversion Process, proprietary metathesis
technology, leveraging the inherent complexity of
plant oils,.superior biorefinery process and
feedstock diversity.
We have a manufacturing footprint, Plant #1:
Gresik, Indonesia Capacity: 180,000 MT
expandable to 360,000 MT, Plant #2: Natchez, MS
Capacity: 310,000 MT, Plant #3: TBD – SE Asia /
South America Status: In discussions with
petrochemical and agricultural processors to
evaluate biorefinery JV and offtake opportunities.
Above Plant #1 is a large‐scale biochemicals
refinery: Gresik, Indonesia Joint Venture
• 50/50 Partnership with Wilmar International
Limited
• Manufacturing and Marketing JV
• Successful Started‐up on 18 July 2013
• Start supply to Customers in 2nd half of 2013
Plant #2 is Natchez, Mississippi Site
• Acquisition of a former lubricant oils and biodiesel
site in North America.
• North American location expands feedstock slate
to canola/rapeseed and soy.
• Emerging oils such as algal oil are viable
feedstocks for the biorefinery.
The next phase of the bio‐ based chemicals
industry is world scale bio‐refineries ……….
supplying novel products ………. arrived this year
……….are you participating?
11:15 BIODIESEL INDUSTRY OUTLOOK 11:15 BIODIESEL INDUSTRY OUTLOOK 11:15 BIODIESEL INDUSTRY OUTLOOK 11:15 BIODIESEL INDUSTRY OUTLOOK ----
MALAYSIA EXPERIENCEMALAYSIA EXPERIENCEMALAYSIA EXPERIENCEMALAYSIA EXPERIENCE
Ir.Samsudeen Ganny, Chief Operating OfficerIr.Samsudeen Ganny, Chief Operating OfficerIr.Samsudeen Ganny, Chief Operating OfficerIr.Samsudeen Ganny, Chief Operating Officer
Mission Biotechnologies Sdn Bhd Mission Biotechnologies Sdn Bhd Mission Biotechnologies Sdn Bhd Mission Biotechnologies Sdn Bhd
●MALAYSIA BIODIESEL OUTLOOK
Malaysia Biodiesel Association represents 22
producers. Total installed capacities 2.7 Mil tons
with below 18% utilization. Presently B5 moving
towards B10 mandate. Effective date June 2012
and nationwide Mid July 2014. Mandate
requirement 500,000 tons at B5. MPOB grants
USD 323,000 to each Petcos. Establishment of
Malaysia BiodieselSdn Bhd – NEAC. CPO stock
inventory, CPO tax structure, reviving biodiesel
sector, stabilize downtrend CPO price, support, and
divide. Opportunity for integrated player, such as
Sime Darby, KLK, FGV & IOI. Government pay 4-6
cents per liter for B5 mandate. Challenges,
European regulations, US RSF 2, Major market?
high imports, high feedstock price, limited increase
mandate ?
●MALAYSIA BIODIESEL PROGRESS
10 biodiesel plants using palm oil as feedstock.
Averaged just under 18% production capacities.
Installed capacities is 1.7 Million Tons. The
government will pay 4cents -6 cents per liter. B5
will require 7.6 Mil liters per month palm oil. B5
will reduce almost 91.2 Million liters diesel use
( annually is central region). Central region 1150
petrol stations estimated use 6587 Tons or 7.6
Million liters of palm oil biodiesel. B5 full
implementation 570,000 tons CPO consumed. The
tax structure for CPO favourable in Indonesia.
The production in Indonesia ( *2013 estimate) is
moving as under:
2010 675,000MT
2011 1,300,000MT
2012 1,560,000MT
2013* 1,870,000MT
. The capacities utilization was above 40%.. The EU
will impose anti dumping penalty to Indonesia.
●MALAYSIA BIODIESEL-CHALLENGES
1. Japan Automotive Manufacturers Association
(JAMA)
2. warranties to only up to B7.
3. B10 for industrial applications
4. European regulations ( ILUC, GHG & etc)
5. Renewable Fuel Standards 2 ( US)
6. Edible to non-edible debate
7. Logistics in East Malaysia
8. Applications to oleochemical sector
9. Unclear role of Malaysia Biotechnologies Sdn.
Bhd.
10. Subsidy prolongation for the mandate
11. Winter grade and summer window for export
Overcapacity position and utilization
11:45 LATEST ADVANCEMENT11:45 LATEST ADVANCEMENT11:45 LATEST ADVANCEMENT11:45 LATEST ADVANCEMENT / / / /
DEVELOPMENT OF OLEO APPLICATION IN DEVELOPMENT OF OLEO APPLICATION IN DEVELOPMENT OF OLEO APPLICATION IN DEVELOPMENT OF OLEO APPLICATION IN
INDUSTRIAL SECTORINDUSTRIAL SECTORINDUSTRIAL SECTORINDUSTRIAL SECTOR
Dr .Zainab Idris, Head of Process Engineering and Dr .Zainab Idris, Head of Process Engineering and Dr .Zainab Idris, Head of Process Engineering and Dr .Zainab Idris, Head of Process Engineering and
Designs Malaysian Palm Oil Board (MPOB) Designs Malaysian Palm Oil Board (MPOB) Designs Malaysian Palm Oil Board (MPOB) Designs Malaysian Palm Oil Board (MPOB)
●BIOPOLYOLS
•Recent trends
•Driven by demand for renewable content
Castor oil-based polyols:•Well established as high
performance raw materials and has been used since
1937. Its naturally occurring. Soybean-based polyols
and Palm oil-based polyols: It require chemical
modification.
Manufacturers for Soybean-based Polyols in the US
BioBased Technologies by Agrol polyols with
functionalities from 1.8 to 7.0. Urethane Soy
System Soyol polyols with functionalities of 2 and 3
Cargill BiOH polyols with functionalities ~1.7 and
4.4.
●BIOPOLYOLS by MPOB
•Raw materials : oils, esters
•Process : epoxidation and alcoholysis
•Specifications : wide range of viscosities
• hydroxyl numbers
• functionalities
•Applications : for a wide range of PolyUrethane
field.
●Palm-based Acrylated Epoxidized Oil
The leading raw materials for radcure products
are : i)Oligomers ii) monomers iii) photoinitiators.
acrylated materials
•In 2011 - 120,000 tonnes of oligomer & 130,000
tonnes of monomer
•consumed globally for radcure coatings, inks and
adhesives.
Potential application of Acrylated Epoxidized Palm
Oil (AEPO) are Automotive coatings, Plastic
coatings, Wood coatings, Architectural coatings.
Paper coatings and Can coating.
13:45 End of Conference