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