BIODIESEL PRODUCTION FROM AFRICAN PALM IN COLOMBIA

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1 CORPORATION FOR THE INDUSTRIAL DEVELOPMENT OF BIOTECHNOLOGY AND CLEAN PRODUCTION DAVID F. CALA - HEDERICH EJECUTIVE DIRECTOR AVENIDA 15 No , Of. 401 Telefax: Bogotá,, Colombia 2003 INTERNATIONAL BIOENERGY FORUM PRODUCTION FROM AFRICAN PALM IN COLOMBIA Guangzhou, CHINA SEPTEMBER, 2003

2 COLOMBIA, SOUTH AMERICA CARIBBEAN SEA ASIA SOUTH AMERICA PACIFIC OCEAN ATLANTIC OCEAN AFRICA INDIAN OCEAN CHINA OIL PALM CONDITIONS Nowadays, there are five million hectares of palm in world, which represent 16 million tons of production per year, which is equivalent to a consumption of 1,7 kilo per capita. Colombia is the fourth producer (2%) of oil palm in world, after Malaysia (46%), Indonesia (31.3%) and Nigeria (5.1%). Oil palm growings in the country have had a very important development. Nowadays, there are hectares and palm crude oil production increases up to tons/year.

3 PALM OIL WORLD PRODUCTION, 2001 (TONS/YEAR) Colombia Thailand 2% 2% Nigeria 3% Indonesia Malaysia 52% 31% Others (46 countries) 10% OIL PALM GROWINGS AGROINDUSTRIAL COMPLEXES PRODUCTION ATLANTIC OCEAN Riohacha Santa Marta Barranquilla Cartagena Valledupar Sincelejo Monteria Cúcuta PANAMÁ PACIFIC OCEAN Medellín B/manga Manizales Tunja Quibdó Pereira Yopal Bogotá Armenia Cali Ibagué Villavicencio Neiva Pasto Popayán Mocoa Río Magdalena Florencia VENEZUELA Arauca San José del Guaviare Mitú Puerto Carreño Puerto Inírida GROWING: Ton/year Hect. TRANSESTERIFICATION PLANT: Ton/year OIL REFINERY ECUADOR PERÚ BRAZIL z African palm growings. ESCALA: 1: Leticia

4 OBTENTION FROM VEGETABLE OILS Vegetable oils Alcohol Catalyst Catalyst preparation preparation Catalyst Warming Warming Neutralization Neutralization Filtration Filtration Washing waters Transesterification Transesterification and and phases phases separation separation Purified Biodiesel Washing Washing (S) (S) Water Light phase Biodiesel Glycerin Glycerin treatment treatment Heavy phase Alcohol + glycerin VEGETABLE OIL + ETHANOL CATALYZER ESTERS + GLYCERIN 1 TON TON 1.05 TON TON Glycerin REGULATORY FRAME Colombia counts on Fuel Alcohol Law (693 de 2001) and on a wide government support in the use of renewable fuels. From 2005, Colombian gasolines should be oxigenated with sugar cane alcohol and others(law 693 of 2001). Wide government support to energy agriculture: sugar cane, yuca, African Palm. African palm is the best raw material for Biodiesel production in Colombia. B10 (10% biodiesel in markets) requires BPD of biodiesel ( Ton/year)

5 ECONOMIC TECHNICAL STUDY Colombia produces about barrels/day of Diesel fuel oil for vehicles. Upon using a 10% of esterified vegetable oil, it will be equals to barrels/day, approximately tons/year of palm oil, figure near to 50% of the year national production generating Hectares grown in African palm and more than direct and indirect employments. TECHNICAL ECONOMIC STUDY Due to during last years Diesel fuel oil price has been lower than gasoline price, the country has become to use Diesel, so the maximum possible Diesel fuel oil production of Ecopetrol is getting close to demand, which means that if there are not new oil refineries, the country will have to import Diesel fuel oil during next years. Biodiesel will avoid said import with meaningful currency savings.

6 vs. PETRODIESEL EMISSIONS REDUCTION. (B20) CO HC Nox SMOG CO2 Sox University of Idaho and the German company Mercedes Benz TECHNOLOGIES COMPANY NAME HENKEL ESTERFIP ESTERECO COUNTRY GERMANY OIL FRENCH INSTITUTE ITALY BALLESTRA OCEAN AIR ENVIRONMENTAL PACIFIC ITALY UNITED STATES UNITED STATES

7 PROJECT IN COLOMBIA PLANT CAPACITY INVESTMENT LOCATION OPERATIONS BEGINNING RAW MATERIAL PRICE TON/YEAR OF (5% of Biodiesel in Diesel) 16 MUSD BARRANCABERMEJA USD/TON PALM OIL TIR > 20% PRICE 1.25 USD / GALLON A 4% INCREASING IN DIESEL PRICES IS REQUIRED (2002) PRODUCTION IN EUROPE IN RELATION TO COUNTRY AND COMPANY, MARKET DIVISION COUNTRY AND PRODUCTION COMPANY (TECNOLOGY) PLACE CAPACITY SIZE USED OIL OLEOCHEMIST RY MIXT URE 2/5/30% PRODUCTION STARTING Henkel Dusseldorf ? C onneman Leer /93/95 Oelmuhle Hbg/ADM Hamburg /00 Bio-diesel Wittenberge GERMANY VN R Ochsenfurt /00 LUT Rudisleben /00 H allentauer/agrana Mainburg ADIBAPV H enningsleben Vogtlander Grossfriesen Robbe/Diéster Compiegne /96 (Esterfip) FRANCE Diéster Rouen Dobre-nnov a Boussens /95 N ov aol/ic I Ver dun Bakelite Solbiate Novaol + otros Livorno ITALY Oleifici Italiani Bari Distillerie palma Neapel Focus Petroli Sas +Diverse Milano

8 PRODUCTION IN EUROPE IN RELATION TO COUNTRY AND COMPANY, COUNTRY AND PRODUCTION BELGIUM COMPANY MARKET DIVISION PRODUCTION PLACE CAPACITY SIZE USED OIL (TECNOLOGY) STARTING OLEOCHEMISTRY MIXTURE2/5/30% Sas Feluy Olefina Ertvelde FINLAND ? NORWAY ? GREAT BRITAIN United oil seeds / Cargill Liverpool, Hull AUSTRIA RME Bruck Bruck STEEG + otros Mureck /94 SPAIN Biocat SWEDEN Ecobransle Skive Others CZECH REPUBLIC M ilo Oloumuc Olmutz Others /94 HUNGARY Babolna TOTAL CAPACITY 1,270, Source: Biodiesel Processing Technologies and Future Market Development. Germany, Thanks!

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