Mr. Sanin Triyanond Chairman of Thai Biodiesel Producer Association Asia Palm Oil Conference (APOC) 2015 CO-OP Suratthani, Thailand 20 August 2015
Outline 1. Current Situation of Palm Oil Industry 2. Current Situation of Biodiesel Industry 3. Potential Palm-Based Biofuel in Thailand
Current Situation of Palm Oil Industry
Current Situation of Palm Oil Industry Global Supply Vegetable Oil Production 61.5 65.2 48.0 50.0 Unit : MMT 2014 2015 27.3 26.5 15.1 15.2 7.3 7.6 5.6 5.7 5.2 5.0 3.4 3.4 2.3 2.9 Source : http://apps.fas.usda.gov/psdonline/circulars/oilseeds.pdf
Current Situation of Palm Oil Industry Global Supply CPO Global production Palm Oil Supply Thailand : Malaysia : Indonesia ( 09 14) 35,000 Indonesia Malaysia Thailand 30,000 25,000 20,000 15,000 10,000 5,000-2009 2010 2011 2012 2013 2014 Source : - http://usda.mannlib.cornell.edu/usda/current/oilseed-trade/oilseed-trade-09-11-2014.pdf - Department of Energy Business
Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Domestic CPO Production Current Situation of Palm Oil Industry Monthly CPO Production, Jan 10 May 15 300,000 Unit : MT/Month 250,000 200,000 150,000 100,000 50,000 0 Source : Department of Internal Trade
Domestic CPO Production Current Situation of Palm Oil Industry CPO Production and Demand, 2010-2015 2,500,000 Edible Oil Demand (MT) Biodiesel / Export (MT) Unit : Tons / Year 2,000,000 1,500,000 1,000,000 500,000 0 2010 2011 2012 2013 2014 2015* Source : Department of Internal Trade *Note : Own prediction
Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Domestic CPO Demand and Supply Current Situation of Palm Oil Industry CPO Stock, Demand, and Supply : Jan 10 May 15 400,000 Demand- Edible Oil Demand- B100 Stock CPO Unit : Tons / Month 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Source : Department of Internal Trade
Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Current Situation of Palm Oil Industry CPO Price Movement : Local vs Global 60.00 50.00 CPO Price-TH CPO Price- MY Unit : Bath/Kg 40.00 30.00 20.00 10.00 Source : Department of Internal Trade
Current Situation of Biodiesel Industry
Current Situation of Biodiesel Industry Global Biodiesel Production Global Biodiesel Production in 2013 USA, 14.3% Other Countries, 48.5% Brazil, 11.3% Germany, 9.4% France, 7.8% Indonesia, 8.6% Source: http://mcgroup.co.uk/researches/biodiesel
Current Situation of Biodiesel Industry Current Situation Southeast Asia Thailand Current : B7 Next Target : B10 Malaysia Current B7 Next target B10 Indonesia Current B10 Next Target B15
Current Situation of Biodiesel Industry Current Situation Southeast Asia Thailand Road Trials 1) Project : B20 Diesel Research Project for Large Trucks Fuel Type : PME Large Trucks : Volvo, Isuzu Total Distance : 100,000 km Parties Involved : DOEB, EPPO, PTT Research & Technology Institute, Thai Parcels, Appa Forwarder, Volvo Group (Thailand) 2) Project : Palm H-FAME B20 on Road Test Fuel Type : Palm H- FAME Large Trucks : Isuzu Total Distance : 50,000 km Parties Involved : JICA, JST, AIST, WASEDA, NSTDA (MTEC), TISTR, KMUTNB Malaysia Road Trial -B10 and B20 biodiesel will be tested on MPOB s vehicles, including those of its research station. - B10 will be tried on 10 vehicles belonging to Alam Flora and 50 belonging to Kuala Lumpur City Hall (DBKL) Indonesia Road Trial Project : B20 Road Test Fuel Type : PME Large Trucks : Toyota Innova (Used), Mitsubishi Pajero (Used, Chevrolet Spin (New) Total Distance : ~40,000 km Parties Involved : EBTKE (Energi Baru Terbarukan dan Konservasi Energi)
Current Situation of Biodiesel Industry Current Situation Automotives comments towards B10 B10 Implementation?? After having initially stated that the B10 biodiesel blend requires further consideration, we are now pleased to inform our customers about the B10 biodiesel blend suitability for all Mercedez-Benz diesel vehicles currently sold by Mercedez- Benz Malaysia. UMW Toyota said its current diesel engines are not rated for B10 use; they can only take up to B7 Volkswagen Malaysia, who told us that running B10 on its diesel engines will produce adverse effects as well as void the warranty. In our tests with B10 biodiesel worldwide, we have found technical challenges, BMW Group Malaysia managing director and chief executive officer Alan Harris said in a statement Isuzu says that the current limit of water content in biodiesel is acceptable up to grade B7, and that further conclusive tests will need to be conducted and proven with consistent results to allow for levels B7 onwards. Note : Automotives in Malaysia
Current Situation of Biodiesel Industry Example : Situation in Indonesia Thousand Barrel/Day 2000 Industry Volume (in K Units) 1400 1800 1600 1400 1200 1000 800 600 Production Consumption Car Industry 1200 1000 Imports 110.000 Barrel/Day`` 800 600 400 200 400 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 0 Source: BP Statistical Review of World Energy & Gaikindo.
Current Situation of Biodiesel Industry Example : Roadmap of Biodiesel in Indonesia Minister Regulation 2008 2009 2010 2014 2015 2016 2020 2025 No. 51/2006 No percentage Bio content specifically mentioned No. 32/2008 1 1 2.5 2.5 5 5 10 20 No. 25/2013 10 10 20 20 25 No. 20/2014 10 10 20 30 30 No. 12/2015 10 15 20 30 30 Source: Ministry of Energy and Natural Resources
Current Situation of Biodiesel Industry Example : Biodiesel Production in Indonesia Volume (in Thousand KL) 3500 3324 3000 Total Production Export Domestic 2805 2500 2000 1500 1000 500 0 2221 1812 1757 1694 1552 1629 1453 1048 669 359 190 243 223 70 119 20 2009 2010 2011 2012 2013 2014 Source: Ministry of Enery & Natural Resources
B100 Producers Current Situation of Biodiesel Industry Lists of B100 producers & Installed Capacity New Biodiesel 6% Bangchak Biofuel 6% Absolute Power P 6% B.Grimm Green Power 4% AI Energy 11% No. of Producer : 10 Total Cap : 4.7 ML/D Verasuwan 4% Thai Oleochemical 15% Bangchak Petroleum 1% Patum Vegetable Oil 30% Energy Absolute 17% Producers Cap (ML/D) Patum Vegetable Oil 1,400,000 Energy Absolute 800,000 Thai Oleochemical 685,800 AI Energy 500,000 Absolute Power P 300,000 Bangchak Biofuel 300,000 New Biodiesel 260,000 B.Grimm Green Power 200,000 Verasuwan 200,000 Bangchak Petroleum 50,000 XXX??? XXX??? Source : Department of Energy Business, Apr 15
B100 (ML/D) Domestic Biodiesel Consumption Current Situation of Biodiesel Industry Government Mandate B2, B5 B3, B5 B2,B5 B4 B3 B4 B4 B5 B7 B4 B7 B4 B7 2008 B3 B5 2009 2010 2011 2012 2013 2014 2015 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 1.23 B100 Consumption 1.50 1.65 1.72 2008 2009 2010 2011 2012 2013 2014 2015* Source : 2008 2014 Department of Energy Business 2015 Own Prediction 2.45 2.87 3.21 3.85
HSD Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Current Situation of Biodiesel Industry Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Domestic Biodiesel Consumption & Government Mandate Government Mandate B2, B5 B3, B5 B2,B5 B4 B3 B4 B4 B5 B7 B4 B7 B4 B7 2008 B3 B5 2009 2010 2011 2012 2013 2014 2015 65.0 60.0 55.0 50.0 45.0 40.0 35.0 30.0 25.0 20.0 B100 vs Diesel Consumption HSD (ML/D) Unit : ML/D B100 (ML/D) 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 B100 Source : Department of Energy Business
Potential Palm-Based Biofuel in Thailand
Potential Palm-Based Biofuel in Thailand Potential Biofuel FAME Oil Based - CPO/RPO/RPS/RPOL - PFAD - ESTER H-FAME BHD Biomass Based - From Plantation & Mills BTL Cellulosic Ethanol
Potential Palm-Based Biofuel in Thailand Oil Based : H-FAME H-FAME Partially Hydrogenated FAME To improve the properties of palm biodiesel in order to have a higher biodiesel-petro diesel blending ratio Reference : Y.Yoshimura (2015), 9 th AIST-TISTR-NSTDA Annual Conference, 28 April 2015, Tokyo Japan
Potential Palm-Based Biofuel in Thailand Oil Based : H-FAME FAME vs H-FAME Oil or Fat Alcohol Catalyst Transesterification Process Fatty Acid Alcohol Catalyst Esterification Process FAME + Glycerol H-FAME Post Treatment Partial Hydrogenation Reference : Y.Yoshimura (2015), 9 th AIST-TISTR-NSTDA Annual Conference, 28 April 2015, Tokyo Japan
Potential Palm-Based Biofuel in Thailand Oil Based : H-FAME Properties of Palm H-FAME (Spotted Check) Properties Palm Biodiesel Palm H-FAME Oxidation Stability @ 110 C (h) 23.5 98.2 Monoglyceride (%wt) 0.48 0.18 Saturated monoglyceride (%wt) 0.19 0.09 Diglyceride (%wt) 0.08 0.10 Triglyceride (%wt) 0 0 Free Glycerine (%wt) 0.02 0 Total Glycerine (%wt) 0.20 0.06 Water Content (ppm) 338 479 Reference : Y.Yoshimura (2015), 9 th AIST-TISTR-NSTDA Annual Conference, 28 April 2015, Tokyo Japan
Potential Palm-Based Biofuel in Thailand Oil Based : H-FAME Advantages of Palm H-FAME 1) Lower polyunsaturated FAME content 2) Better Oxidation Stability Reference : Y.Yoshimura (2015), 9 th AIST-TISTR-NSTDA Annual Conference, 28 April 2015, Tokyo Japan
Potential Palm-Based Biofuel in Thailand Oil Based : H-FAME Advantages of Palm H-FAME 3) Lower monoglyceride & saturated monoglyceride MG is converted to SMG during partial hydrogenation SMG increased after partial hydrogenation which promotes the SMG precipitation Minimizing the filter plugging under the cold weather after SMG is properly removed Reference : Y.Yoshimura (2015), 9 th AIST-TISTR-NSTDA Annual Conference, 28 April 2015, Tokyo Japan
Potential Palm-Based Biofuel in Thailand Oil Based : H-FAME Advantages of Palm H-FAME 4) Lower steryl glucoside content Removing SMG Minimizing the formation of precipitates under room temperature storage Reference : Y.Yoshimura (2015), 9 th AIST-TISTR-NSTDA Annual Conference, 28 April 2015, Tokyo Japan
Potential Palm-Based Biofuel in Thailand Oil Based : H-FAME Acknowledgement Project Upgrading of Palm Biodiesel to Palm H-FAME in a Pilot Scale, Y. Yoshimura Presented by Dr.Lalita Attanatho On 9 th AIST-TISTR-NSTDA Annual Conference 28 April, 2015 Tokyo, Japan พระจอมเกล าพระนครเหน อ
Potential Palm-Based Biofuel in Thailand Oil Based : Biohydrogenated Diesel Biohydrogenated Diesel (BHD / HVO / HBD / HDO) : Production of renewable diesel from fat or oil through hydrodeoxygenation reaction at high temperature and pressure in the presence of a catalyst : Two major steps: Hydrogenation / Hydrodeoxygenation : Increasing number of BHD patents filed around the world
Potential Palm-Based Biofuel in Thailand Oil Based : Biohydrogenated Diesel FAME VS BHD Alcohol Catalyst Transesterification Process Operate under low temp & pressure FAME + Glycerol OIL or FAT Hydrogen Catalyst Hydrodeoxygenation Process Operate under high temp & pressure BHD + Propane Water CO 2 / CO
Potential Palm-Based Biofuel in Thailand Oil Based : Biohydrogenated Diesel Key Issues 1. Government Policy 2. Feedstock (availability and consistency) 3. Hydrogen Sourcing (availability and cost) 4. Technology 5. AEC
Potential Palm-Based Biofuel in Thailand Palm Based : FAME vs H-FAME vs BHD Items FAME H-FAME BHD Main Reaction Transesterification Trans + Hydrogenation Hydrodeoxygenation Compound Structure Ester Ester Alkane Oxidation Stability - + ++ Compatibility with based diesel Operating Cost as compared to diesel + ++ (claimed) +++ - -- --- Process Investment Cost 0 - ---
Potential Palm-Based Biofuel in Thailand Biomass : Biomass to Liquid Biomass to Liquid (BTL / BtL / BMtL) : A multi-step process which produces liquid biofuels with diesel-range hydrocarbons from biomass : Two major steps: Gasification / Fischer-Tropsch : On average, about 640 ltr/rai (4,000 ltr/hectares) of BTL can be produced : Potential Feedstock: - Waste ex. rice straw, wood chip from furniture business, etc. - Fast growing plant plantation ex. Eucalyptus, Wattle, etc.
Potential Palm-Based Biofuel in Thailand Biomass : Biomass to Liquid Sample of BTL process by former Choren Source: http://newenergyandfuel.com/wp-content/uploads/2008/04/choren-gasification-to-fuel-process.jpg
Potential Palm-Based Biofuel in Thailand Biomass : Cellulosic Ethanol Cellulosic ethanol is - Exactly the same as bioethanol in terms of physical & chemical properties - Produced from biomass such as wood, grasses, or the inedible parts of plants. - A type of biofuel produced from lignocellulose, a structural material that comprises much of the mass of plants. - Claimed to be one of the best option for fuel in terms of CO2 emissions
Potential Palm-Based Biofuel in Thailand Biomass : Cellulosic Ethanol Source : http://www.timaras.com/research/biofuels/slide18.png
Potential Palm-Based Biofuel in Thailand Biomass : Cellulosic Ethanol Source : http://mff.dsisd.net/biomass/2-woodenergy.htm
Potential Palm-Based Biofuel in Thailand Ethanol Demand in Thailand Gasohol Consumption from 2009 to 2015 15.0 10.0 5.0 0.0 Unit : ML/D 2009 2010 2011 2012 2013 2014 2015 E10 (Gasohol 91) E10 (Gasohol 95) E20 E85 Ethanol Consumption from 2009 to 2015 2.60 3.25 3.50 1.25 1.24 1.23 1.39 2009 2010 2011 2012 2013 2014 2015 Note : Ethanol consumption was calculated based on minimum blending ratio of ethanol in each type of gasohol Source : Department of Energy Business
Potential Palm-Based Biofuel in Thailand Examples of On-Going Researches in Thailand R&D Strategic Framework on Sustainable Production of Oil Palm and Products, Year 2013-2017 5 1 R&D on technology development of byproduct and valueadded product Policy on systematic management of palm oil R&D Strategic Framework 2013-2017 2 R&D on oil palm varieties and production technology 4 Establishing quality standard and proper handling 3 Environmental Impact Assessment Source : Agricultural Research Development Agency
Potential Palm-Based Biofuel in Thailand Examples of On-Going Researches in Thailand 1 2 3 4 5 Examples of R&D Projects, Fiscal Year 2013 Policy on systematic management of palm oil R&D on oil palm varieties and production technology Environmental Impact Assessment Establishing quality standard and proper handling R&D on technology development of byproduct and valueadded product - Research Study on the Restructuring of Thailand's Oil Palm and Palm Oil Industry, The Federation of Thai Industries - A Study of Factors Affecting to Fruit Bunch Price and Palm Oil Price Stability, King Mongkut s University of Technology North Bangkok - A Study for Guidelines on Sustainable Management of the Palm Oil and its Related Products, National Metal and Materials Technology Center -Yield potential and the population of dura and pisifera from oil palm clones, Elaeis oleifera X Elaeis guineensis hybrids and Elaeis oleifera, Maejo University - Testing on Rat Pest Control Technology of New Oil Palm Plantations in the Area of the Upper South, Department of Agriculture - Enhancement of Efficiency for Wastewater Utilization from Palm Oil Mill Industry, Prince of Songkla University - The Engineering Properties of Lateritic Soil Improved by Portland Cement Type I and Palm Oil Fuel Ash for Compacted Soil Wall Purpose, Rajamangala University of Technology - An Economic analysis and assessment of standard implementation, Prince of Songkla University - Development of smallholder farmers group through participation for sustainable oil palm production towards GAP and RSPO standards, Prince of Songkla University - Sustainably Participative Management System for Palm Oil Production in the Preparation of the GAP and RSPO Standards, Khon Kaen University - Utilization of Palm Oil Industrial Wastes for Production of CoSubstrates and Starter Cultures to Increase Biogas Production Efficiency and Value-Added Products, Prince of Songkla University - Chemical-Free Paper from Oil Palm Biomass Residues, Kasetsart University - Development of a mechanical property of palm oil wood using microwave for construction building, Rajamangala University of Technology Source : Agricultural Research Development Agency
Conclusion 1. Global supply of CPO has been and still increasing 2. Thailand is still finding proper solution to manage CPO stock 3. Gap between local & global price is a huge barrier to stop local investment towards downstream 4. TH/MY/IND governments are supporting biodiesel 5. OEM for automotive engines are reluctant to go for higher FAME blending ratio
Conclusion 6. Local FAME demand has been increasing due to TH government policy 7. There are potential for Oil & Biomass based biofuels with many success factors to be considered 8. Many researches are being conducted to add more value for palm industries
Thank You By Mr. Sanin Triyanond Chairman of Thai Biodiesel Producer Association
References 1) http://www.malaysiandigest.com/business/559998-mercedez-benz-changes-tune-now-says-b10-biodiesel-is-okay.html 2) http://paultan.org/2015/06/18/mercedes-toyota-vw-malaysia-b10- biodiesel/?utm_source=feedburner&utm_medium=feed&utm_campaign=feed%3a+paultanorg+%28paultan.org+- +The+Automotive+Industry%3A+Cars%2C+News%2CTechnology%2C+Test+Drive+Reports%29 3) http://www.thestar.com.my/business/business-news/2015/06/10/bmw-drops-wrench-into-palm-energyplan/?style=biz 4) http://paultan.org/2015/01/19/b7-biodiesel-east-malaysia/ 5) http://nusantarainitiative.com/wp-content/uploads/2015/02/gaikindo_bio-diesel-b20-movement-17-feb-2015.pdf