by Sanin Triyanond Thai Biodiesel Producer Associationthaipalmoil.com/paper2011/BIODIESEL IN...

by Sanin Triyanond

Thai Biodiesel Producer Association

Palmex Thailand 2011Impact, Muang Thong Thani

September 8, 2011

Outline

Association Introduction

Biodiesel Thailand Vs Global

Market Situation

Future

Conclusion

BIODIESEL INDUSTRY IN THAILAND: CHALLENEGS AND THE FUTURE


Association Introduction

AI Energy Co., Ltd

Bangchak Biofuel Co., Ltd

B.Grimm Green Power Limited

Bioenergy Plus Co., Ltd

Energy Absolute Plc

New Biodiesel Co., Ltd

Patum Vegetable Oil Co., Ltd

Pure Biodiesel Co., Ltd

Thai Oleochemical Co., Ltd

Verasuwan Co.,Ltd

Established on June 9, 2010

10 Members

Support & develop biodiesel business

Biodiesel info. center

Corroboration with government bodies

Mission

1

5

10

7

6

8

9

3

4

2

OutlineAssociation Introduction

Biodiesel Thailand Vs Global‐ Biodiesel Business Environment

‐ Policy on Biodiesel

Market Situation

Future

Conclusion



Considerably new business

Growing throughout the world

Environment / Energy security / Self sufficient

Only survive by government policy

Biodiesel Thailand VS Global

Biodiesel Business Environment


Source: 1) IEA analysis based on various governmental sources. 2) www.ec.europa.eu 3) www.epa.gov

Biodiesel Thailand VS Global ‐ Global Policy


Biodiesel Thailand VS Global‐ Current Feedstock

REDP Master Plan 2008‐2022: Biodiesel Roadmap


Biodiesel Thailand VS Global ‐ Thai Policy

08 09 10 11 12 13 14 15 16 17 18 19 20 21 22

Biodiesel Market

Biodiesel Production

RawMaterial

R&D

Biodiesel Demand (ML/D)

1.35 1.35 1.35 3.02 3.64 4.50

Research on Fishery Boat B5 Nationwide B10 Alternative

Mandate B2 Mandate B5

Alternative B5 Alternative B10

From palm oil and palm stearinStandardization of quality control system

Promote and develop production process/ community biodiesel

Expand plantation area 2.5 MraiIncrease yield from 2.8 to 3.2 MT/Rai/Y

Demonstration of value‐added glycerine/ extraction of CPO for small millR&D BTL/ BHD/ Algae oil Demonstration / Promote the production of BTL/ BHD/ Algae

Demonstration of Jatropha plantation and usage

Source: http://www.dede.go.th


Notification of the Department of Energy Business

Requirement Blending Ratio High‐ Low

Hi‐SpeedDiesel

Methyl Ester of Fatty Acid, %Vol

Not less than 4

and

Not more than 5

Biodiesel Thailand VS Global ‐ Thai Diesel Spec.

GreenDiesel


Parameter Unit DOEB EN14214 ASTM D67511 Purity % wt. 96.5 min 96.5 min -2 Density @ 15 ºC kg/m3 860-900 860-900 -3 Kinematic Viscosity@ 40 ºC mm2/s 3.5-5.0 3.5-5.0 1.9-6.04 Flash Point, (P.M.) ºC 120 min 120 min 130 min5 Sulphur Content mg/kg 10.0 max 10.0 max 15.0 max6 Carbon Residue % wt. 0.30 max 0.30 max 0.05 max7 Cetane Number - 51 min 51 min 47 min8 Sulphated Ash % wt. 0.02 max 0.02 max 0.02 max9 Water Content % wt. 0.05 max 0.05 max 0.05 max10 Total Contaminate % wt. 0.0024 max 0.0024 max -11 Copper Strip Corrosion 3hrs. @ 50 ºC No.1 max No. 1 max No.3 max12 Oxidation stability @ 110 ºC Hr 10 min 6 min 3 min13 Acid Value mg KOH/g 0.5 max 0.5 max 0.5 max14 Iodine Value g l2/100 g 120 max 120 max -15 Linolenic Acid Methyl Ester % wt. 12.0 max 12.0 max16 Methanol % wt. 0.2 max 0.2 max 0.2 max17 Monoglyceride % wt. 0.80 max 0.8 max -18 Diglyceride % wt. 0.20 max 0.2 max -19 Triglyceride % wt. 0.20 max 0.2 max -20 Free Glycerin % wt. 0.20 max 0.02 max 0.02 max21 Total Glycerin % wt. 0.25 max 0.25 max 0.24 max22 Phosphorus % wt. 0.0010 max 0.00040 max 0.0010 max23 Sodium plus Potassium mg/kg 5.0 max 5.0 max 5.0 max24 Calcium plus Magnesium mg/kg 5.0 max 5.0 max 5.0 max25 Cloud Point ºC - - *Report 26 CFPP ºC - *Country Specific -

Source: 1) http://www.sentinellab.com, 2) http://www.biofuelsystems.com, 3) http://www.filtertechnik.co.uk, 4) http://ddr.nal.usda.gov., 5) www.dede.go.th

Biodiesel Thailand VS Global ‐ B100 Spec.

Presenter

Presentation Notes

ASTM กำหนด ค่า Cold Soak Filterability ที่ 360 max/ 200 max (-12 °C) EN กำหนด C(x:4) & greater unsaturated esters ที่ 1 max %wt



Market SituationSupply

Installed Production Capacity

Market size

Stock Management

New Generation Biodiesel

Future

Conclusion


Company name Capacity (L/D)

Province

Patum Vegetable Oil Co., Ltd 1,400,000 Patumthani

Siam Gulf Petrochemical Co. ,Ltd 1,200,000 Petchburi

Energy Absolute Plc 800,000 Prajeenburi

Thai Oleochemical Co., Ltd 685,800 Rayong

Bioenergy Plus Co., Ltd 350,000 Ayutthaya

Bangchak Biofuel Co., Ltd 300,000 Ayutthaya

Pure Biodiesel Co., Ltd 300,000 Rayong

AI Energy Co., Ltd 250,000 Samutsakhon

New Biodisel Co., Ltd 220,000 Suratthani

Verasuwan Co., Ltd 200,000 Samusakhon

B.Grimm Green Power Limited 200,000 Chumphon

E‐Ester Co., Ltd 50,000 Chiangrai

Bangchak Petroleum Plc 50,000 Bangkok

Bangkok Produce Plc 4,000 Saraburi

Total 6,009,800

BIODIESEL INDUSTRY IN THAILAND: CHALLENEGS AND THE FUTURE Source: DEDE (updated Jan, 2011)

Bangkok

Market Situation ‐ Installed Capacity


Feedstock Consumption for Biodiesel Production

Source: Energy Policy and Planning Office, Ministry of Energy, Thailand

Market Situation ‐ Current Supply

‐

10,000

20,000

30,000

40,000

50,000

60,000

Qua

ntity usage (M

T)

RPS CPO CPO : RPS = 72 : 28

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

Price (THB/

Kg)

CPO ‐TH CPO‐MY


Crude Palm Oil Price: Thai Vs Malaysia

Source: agri.dit.go.th



Feedstock Price



10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

Price (Bah

t/ Kg)

CPO RPS

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Diesel Volum

e (M

L/Day)

B100

Volum

e (M

L/Day)

Diesel Volume (ML/D) B100 volume (ML/D)

Mandate: B2Voluntary: B5

B3 B4Mandate: B3 Voluntary : B5


Biodiesel and Diesel Consumption [ 2009 ‐ 2011 ]

Source: www.doeb.go.th

B2

Market Situation ‐ Market Size


Biodiesel and Diesel Consumption, Jan‐ July 2011

0.00

10.00

20.00

30.00

40.00

50.00

60.00

0.00

0.50

1.00

1.50

2.00

2.50

Jan‐11 Feb‐11 Mar‐11 Apr‐11 May‐11 Jun‐11 Jul‐11

Diesel Vol. (M

L/D)

Biod

iesel Vol. (ML/D)

Diesel Volume (ML/D) Biodiesel volume (ML/D)

B3/ B5 B2 B3 B4

Market Situation ‐ Market Size

Source: www.doeb.go.th


‐

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

CPO (M

T)

CPO: Production (MT) CPO: Export (MT)


CPO Production and Export

Market Situation ‐ Stock Management

0

50,000

100,000

150,000

200,000

250,000

300,000

Stock CP

O (M

T)

BIODIESEL INDUSTRY IN THAILAND: CHALLENEGS AND THE FUTURE Source: agri.dit.go.th

Stock CPOequivalent

Avg. Demand for edible oil

Avg. Demand for biodiesel

Avg. Total Demand


BIODIESEL INDUSTRY IN THAILAND: CHALLENEGS AND THE FUTURE Source: agri.dit.go.th


Possibilities:

1. No control policy:• Require closely stock monitoring• B100 blending ratio is a key• Possibility for import

2. Export control policy:• Control export • B100 blending ratio could be fixed• Should be self sufficient

3. Buffer stock policy:• Government keeps surplus CPO as buffer stock• B100 blending ratio could be fixed

Biofuel Group Specific Biofuel Feedstock ProductionProcess

1st Generation

Biodiesel FAME Vegetable oils, and animal fats

TransesterificationEsterification

2nd or 3rd Generations

Biodiesel(hybrid of 1st and 2nd)

Bio‐ Hydrogenated Diesel (BHD)

Green pyrolysis dieselAlgae Oil

Vegetable oils and animal fatsNon‐food cropsAlgae

Hydrogenation

* PyrolysisCultivation

Synthetic Biofuels Biomass‐to‐liquids(BTL)Fischer‐Tropsch diesel (FT)Synthetic diesel

Non‐food crops * Gasification and synthesis

* Thermo‐chemical route: indirect liquefaction methods requires the biomass to be first pyrolysed to bio‐oil, or gasified and the product gas cleaned and processed to form synthesis gas (mainly CO and H2). This gaseous mixture can then be used in a commercial chemical process to synthesize a range of liquid biofuels

Source: 1) From 1st‐ to 2nd –Generation Biofuel Technologies (IEA, 2008A)2) ASEAN and Development Direction for 2nd Generation Technologies, (PTT‐RTI, 2009)


Market Situation ‐ New Generation Biodiesel



Market Situation

FutureBusiness Challenges

Export Opportunities

Sustainability

Conclusion



Fly ?

Fed ?

Future – Business Challenges

• Capacity way over demand

• Availability of feedstock

• Food VS fuel

• FAME has its limitation

• New break through technologies

• Sustainability

Biodiesel(new baby business)


1.6 ML/D

4.4 ML/D

4. 5ML/D

1.5 ML/D

Utilization (ML/D) Idle (ML/D)

2011 2022

08 09 10 11 12 13 14 15 16 17 18 19 20 21 22

Current Mandate: B4Avg. Demand: 1.6 ML/D

Mandate: B5, Optional: B10Expected Demand: 4.5 ML/D

Source: http://www.dede.go.th

Future – Capacity Utilization VS Idle


1.6 ML/D

4.4 ML/D

Utilization (ML/D) Idle (ML/D)

Future – Export ??

Global Market


Future – Export Opportunity

• Price

• Must be very competitive

• Against giant Malaysian and Indonesian

• Volume

• Supposedly big bulk

• Proper facilities required

• Sustainability

• Becoming prerequisite


Future – Sustainability Requirement

Source: http://europa.eu/rapid/pressReleasesAction.do?reference=IP/11/901

1. ISCC : German (government financed) scheme covering all types of biofuels

2. Bonsucro EU :Roundtable initiative for sugarcane based biofuels, focus on Brazil

3. RTRS EU RED : Roundtable initiative for soy based biofuels, focus on Argentina and Brazil

4. RSB EU RED : Roundtable initiative covering all types of biofuels

5. 2BSvs :French industry scheme covering all types of biofuels

6. RSBA :Industry scheme for Abengoa covering their supply chain

7. Greenergy : Industry scheme for sugarcane ethanol from Brazil

BIODIESEL INDUSTRY IN THAILAND: CHALLENEGS AND THE FUTURE Source: http://europa.eu/rapid/pressReleasesAction.do?reference=IP/11/901

Future – 7 schemes recognized by EU


Future – Foreseen Possibilities

In general• Overall, biofuels businesses will keep growing

• Existing players will be suffering

• New investors are still definitely coming

• New generation biofuels will be more active

• Sustainability will take the lead


Future – Foreseen Possibilities

For Thai Biodiesel Business• The business future is mainly up to government’s policy

• Local market is not an ultimate answer for the whole industries

• To meet global market requirement is not easy at all

• Sustainability is one of key success factors

(not only biodiesel business but the whole chain)


Conclusion

Biodiesel Thailand VS Global

• Biodiesel business has been growing all over the world

• Thailand has a solid plan to go

Market Situation

• Our local feedstock is enough for domestic consumption

• Blending ratio has not been stable

• CPO stock needs to be managed

Future• Many challenges to be overcome

• Export market is an opportunity

• Sustainability as key of success


Thai Biodiesel Producer Association

Thank you

AndWish us Luck!

by Sanin Triyanond Thai Biodiesel Producer Associationthaipalmoil.com/paper2011/BIODIESEL IN...

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