Biodiesel Business Environment

Transcription

1 Biodiesel Business Environment By Patum Vegetable Oil co., ltd. February 12, 2008 Innovation on Biofuel in Thailand, Century Park Hotel

2 Agenda Company Profile Biodiesel Technology Country Policy & Regulation Current Situation Final Remarks

3 Company Profile

4 Company Profile Company Name : Patum Vegetable Oil co., ltd. Core Business : Palm Oil refinery / Biodiesel Brand : Gaysorn, Flower, Captain and Deli Cream Biggest : Refinery / Tank / Market share Location : Patumthani province Year of Establishment : Founded in 1975 No. of Employee : 450

5 Biodiesel Technology

6 Biodiesel Technology Biodiesel General Information - All natural oils can be used [vegetable / animal oils & fats] - Fatty Acid Methyl Ester (FAME / POME / RME / SME) - Palm Oil as the cheapest feedstock [exc. Used cooking oil] - CPO price itself, currently, is not feasible - Current B100 market is solely driven by government policy - Thailand s FAME specification : 24 items (EN / ASTM)

7 Biodiesel Technology - Revolution 1 st Generation Biodiesel Esterification Tranesterification Co-solvent etc. 2 nd Generation Biodiesel GTL (Gas-To-Liquid) BTL (Biomass-To-Liquid)

8 Biodiesel Technology Tranesterification Reaction O CH 2 -O-C-R O CH -O-C-R O CH 2 -O-C-R catalyst O + R - OH 3R -O-C-R + CH 2 -OH CH -OH CH 2 -OH Tri-glycerol (Vegetable Oil) Alcohol Alkyl ester (Biodiesel) Glycerol

9 Biodiesel Technology Process Flow Diagram Oil Heating Methanol Mixing Methanol Catalyst Transesterification Operational Practice Separation 1. Reach highest purity of FAME 2. Remove impurity as much as possible MtOH Recovery Crude Glycerine Washing Water Drying Biodiesel

10 Country Policy & Regulation

11 Country Policy & Regulations Policy on Palm Oil - Export yes, Export no - Plantation Promotion (price & productivity) - Edible Oil price limitation Policy on Biodiesel - Palm oil & Fuel oil regulation applied - Specification : 24 parameters - B2 blending regulation - No quota for biodiesel plants - B100 quality is strictly controlled by DOEB

12 Country Policy & Regulations - Government Specification Parameter Unit Limit Test Method Purity > 96.5 EN ºC kg/m ASTM D 4052 Kinematic Viscosity@ 40 ºC mm 2 /s ASTM D 445 Flash Point, (P.M.) ºC > 120 ASTM D93 Sulphur Content ppm by wt < 10 ASTM D2622 Carbon Resudue < 0.30 ASTM D 4530 Cetane Number - > 51 ASTM D 613 Sulphated Ash < 0.02 ASTM D 87 Water Content < EN Total Contaminate < EN Copper Strip Corrosion 50 ºC < no.1 ASTM D 130 Oxidation 110 ºC Hr > 6 EN Acid Value mg KOH/g < 0.5 ASTM D 664 Iodine Value g l 2 /100 g < 120 EN Linolenic Acid Methyl Ester < 12.0 EN Methanol < 0.2 EN Monoglyceride < 0.80 EN Diglyceride < 0.20 EN Triglyceride < 0.20 EN Free Glycerin < 0.20 EN Total Glycerin < 0.25 EN Phosphorus < ASTM D 4951 Sodium plus Potassium mg/kg < 5.0 ASTM D 5185 Calcium plus Magnesium mg/kg < 5.0 ASTM D 5185

13 Current Situation Fly or Fail?

14 Current Situation Feedstock Availability Thailand CPO Production Phase 1 st Phase 2 nd? > but by how much? '000 MT/yr CPO consumption : Edible Palm Oil Market (projected) Year CPO Consumption (phase 2 nd ) Edible Oil Market = 840,000 T/Yr Biodiesel (B100) = 350,000 T/Yr (B2 consumption basis) Surplus Volume = 300, ,000 T/Yr

15 1 Jan 06 1 Jan 07 1 Jan 08 Current Situation CPO Price Movement (Local) Note: CPO Price of 1996 Current (monthly average) 1 Jan 05 1 Jan 04 CPO Price [B/KG] 1 Jan 96 1 Jan 97 1 Jan 98 1 Jan 99 1 Jan 00 1 Jan 01 1 Jan 02 1 Jan 03 Time

16 Current Situation Turning Point of Price Global Price - Biodiesel market - Related commodities price - Demand especially from China & India - Green Policy Local Price - Global price - Demand Supply for edible oil and biodiesel markets - Export situation -etc.

17 Current Situation Four major parties Oil Palm Plantation Current plantation: 2.2 Million Rai (0.9 Acres) Plantation area: Southern & Eastern part Glowers More than 65,000 glowers Seasonal Apr - Oct Extraction Mill Numbers of millers: > 50 Plants Over capacity Refiner Number of refiners: > 10 plants Over capacity Biodiesel Producer Number of producers: > 40 plants Over capacity

18 Current Situation B100 pricing mechanism Official Price by Energy Policy and Planning Office B100 = 0.97 (CPO) MtOH Positive - Raw material cost reflects B100 Price Negative - CPO lower than real market price - MtOH price as imported chemical - Lifting rate cannot be controlled

19 Current Situation Demand VS Supply (Local) B100 Supply Side (> 40 plants) B100 Demand Side ( Mltr/day) TOL (0.68 Mltr/day) Potential Market (0.6 Mltr/day) Note : All figures based on estimations

20 Final Remark Biodiesel Technology 1 st generation : stable 2 nd generation : coming Mostly, tranesterification process Country Policies & Regulations B100 quality is strictly controlled by the government No Import / Yes Export Plantation promotion No quota for biodiesel plant Current Situation Supply a lot over demand B100 producers can only survive by government policy that really cover the whole chain Plantation [area expansion & efficiency] Demand & Supply closely control (edible oil & petroleum markets) Millers / Refiners / B100 Producers Export policy

21 THANK YOU