Mr. Sanin Triyanond Chairman of Thai Biodiesel Producer ... Sanin Triyanond... · Mr. Sanin...

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

- Potential Future for Palm-Based Biofuel Industry in Thailand -

Current Situation of Palm Oil Industry


Global Supply – Vegetable Oil Production


61.5

48.0

27.3

15.1

7.3 5.6 5.2 3.4 2.3

65.2

50.0

26.5

15.2 7.6 5.7 5.0 3.4 2.9

2014 2015

Unit : MMT

Source : http://apps.fas.usda.gov/psdonline/circulars/oilseeds.pdf


Global Supply – CPO Global production

Source : - http://usda.mannlib.cornell.edu/usda/current/oilseed-trade/oilseed-trade-09-11-2014.pdf

- Department of Energy Business

Palm Oil Supply – Thailand : Malaysia : Indonesia (‘09 – ‘14)

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2009 2010 2011 2012 2013 2014

Indonesia Malaysia Thailand


Unit : MT/Month

Source : Department of Internal Trade

Domestic CPO Production

Monthly CPO Production , Jan’10 – May’15

0

50,000

100,000

150,000

200,000

250,000

300,000

Jan-1

0

Mar-

10

May-1

0

Jul-

10

Sep-1

0

Nov-1

0

Jan-1

1

Mar-

11

May-1

1

Jul-

11

Sep-1

1

Nov-1

1

Jan-1

2

Mar-

12

May-1

2

Jul-

12

Sep-1

2

Nov-1

2

Jan-1

3

Mar-

13

May-1

3

Jul-

13

Sep-1

3

Nov-1

3

Jan-1

4

Mar-

14

May-1

4

Jul-

14

Sep-1

4

Nov-1

4

Jan-1

5

Mar-

15

May-1

5



0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2010 2011 2012 2013 2014 2015*

Edible Oil Demand (MT) Biodiesel / Export (MT)


*Note : Own prediction

Unit : Tons / Year

Domestic CPO Production

CPO Production and Demand, 2010 - 2015



CPO Stock, Demand, and Supply : Jan’10 – May’15

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Jan-

10

Mar-

10

May-1

0

Jul-10

Sep-1

0

Nov-1

0

Jan-

11

Mar-

11

May-1

1

Jul-11

Sep-1

1

Nov-1

1

Jan-

12

Mar-

12

May-1

2

Jul-12

Sep-1

2

Nov-1

2

Jan-

13

Mar-

13

May-1

3

Jul-13

Sep-1

3

Nov-1

3

Jan-

14

Mar-

14

May-1

4

Jul-14

Sep-1

4

Nov-1

4

Jan-

15

Mar-

15

May-1

5

Demand- Edible Oil Demand- B100 Stock CPO Unit : Tons / Month

Domestic CPO Demand and Supply




CPO Price Movement : Local vs Global

10.00

20.00

30.00

40.00

50.00

60.00

Jan-

10

Ma

r-1

0

May-1

0

Jul-

10

Sep

-10

Nov-

10

Jan-1

1

Ma

r-1

1

May-1

1

Jul-

11

Sep

-11

Nov-

11

Jan-

12

Ma

r-1

2

May-1

2

Jul-

12

Sep

-12

Nov-

12

Jan-

13

Ma

r-1

3

May-1

3

Jul-

13

Sep

-13

Nov-

13

Jan-

14

Ma

r-1

4

May-1

4

Jul-

14

Sep

-14

Nov-

14

Jan-

15

Ma

r-1

5

May-1

5

CPO Price-TH CPO Price- MY


Unit : Bath/Kg



Current Situation of Biodiesel Industry

Global Biodiesel Production

Source: http://mcgroup.co.uk/researches/biodiesel

USA, 14.3%

Brazil, 11.3%

Germany, 9.4%

Indonesia, 8.6%

France, 7.8%

Other Countries,

48.5%


Global Biodiesel Production in 2013



Current Situation – Southeast Asia


Thailand Current : B7

Next Target : B10

Malaysia

Current B7

Next target B10

Indonesia

Current B10

Next Target B15


Current Situation – Southeast Asia


Thailand Malaysia

Indonesia

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

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)

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)

Current Situation – Automotives’ comments towards B10


“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.

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.

“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

Note : Automotives in Malaysia

B10

Implementation??



0

200

400

600

800

1000

1200

1400

400

600

800

1000

1200

1400

1600

1800

2000

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

Production

Consumption

Imports

110.000

Barrel/Day``

Industry Volume

(in K Units) Thousand

Barrel/Day

Car Industry

Example : Situation in Indonesia


Source: BP Statistical Review of World Energy & Gaikindo.

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


190 243

1812

2221

2805

3324

70 20

1453 1552

1757 1629

119 223

359

669

1048

1694

0

500

1000

1500

2000

2500

3000

3500

2009 2010 2011 2012 2013 2014

Total Production Export Domestic

Volume

(in Thousand KL)

Source: Ministry of Enery & Natural Resources


Example : Biodiesel Production in Indonesia


Patum Vegetable Oil

30%

Energy Absolute 17%

Thai Oleochemical

15%

AI Energy 11%

Absolute Power P

6%

Bangchak Biofuel

6%

New Biodiesel 6%

B.Grimm Green Power 4%

Verasuwan 4%

Bangchak Petroleum

1%

No. of Producer : 10

Total Cap : 4.7 ML/D

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 ???

Lists of B100 producers & Installed Capacity

Source : Department of Energy Business, Apr’15

B100 Producers



Government Mandate

Domestic Biodiesel Consumption

1.23 1.50

1.65 1.72

2.45

2.87

3.21

3.85

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2008 2009 2010 2011 2012 2013 2014 2015*

B1

00

(M

L/D

)

Source : 2008 – 2014 Department of Energy Business

2015 Own Prediction

B100 Consumption

2009 2010 2012 2011 2013 2014 2015 2008

B2, B5 B3, B5 B2,B5

B3

B4 B3 B4

B5

B4 B5 B7 B4 B7 B4 B7



0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

60.0

65.0

Jan-

09

Ap

r-0

9

Jul-

09

Oct

-09

Jan-

10

Ap

r-1

0

Jul-

10

Oct

-10

Jan-

11

Ap

r-1

1

Jul-

11

Oct

-11

Jan-

12

Ap

r-1

2

Jul-

12

Oct

-12

Jan-

13

Ap

r-1

3

Jul-

13

Oct

-13

Jan-

14

Ap

r-1

4

Jul-

14

Oct

-14

Jan-

15

Ap

r-1

5

B100 H

SD

HSD (ML/D) B100 (ML/D)

Unit : ML/D

Government Mandate

Domestic Biodiesel Consumption & Government Mandate

Source : Department of Energy Business

2009 2010 2012 2011 2013 2014 2015 2008

B2, B5 B3, B5 B2,B5

B3

B4 B3 B4

B5

B4 B5 B7 B4 B7 B4

B100 vs Diesel Consumption

B7



Potential Palm-Based Biofuel in Thailand


Potential Biofuel

Oil Based

Biomass Based

H-FAME

BHD

BTL

Cellulosic Ethanol

FAME

- CPO/RPO/RPS/RPOL

- PFAD

- ESTER

- From Plantation & Mills


“Partially Hydrogenated FAME”

To improve the properties of palm

biodiesel in order to have a higher

biodiesel-petro diesel blending ratio


Oil Based : H-FAME

H-FAME

Reference : Y.Yoshimura (2015), 9th AIST-TISTR-NSTDA Annual Conference, 28 April 2015, Tokyo Japan




Oil Based : H-FAME

FAME vs H-FAME

Fatty Acid Esterification

Process FAME + Glycerol

Alcohol

Catalyst

Partial

Hydrogenation Post Treatment H-FAME

Oil or Fat Transesterification

Process

Alcohol

Catalyst




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




Oil Based : H-FAME

Advantages of Palm H-FAME

1) Lower polyunsaturated FAME content

2) Better Oxidation Stability



Oil Based : 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




Oil Based : H-FAME


4) Lower steryl glucoside content

• Removing SMG

• Minimizing the formation of precipitates under room temperature storage




Oil Based : H-FAME

Project “Upgrading of Palm Biodiesel to Palm H-FAME

in a Pilot Scale” , Y. Yoshimura

Presented by Dr.Lalita Attanatho

On 9th AIST-TISTR-NSTDA Annual Conference

28 April, 2015

Tokyo, Japan

Acknowledgement

พระจอมเกล้าพระนครเหนือ




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



FAME VS BHD

OIL or FAT

Transesterification

Process

Hydrodeoxygenation

Process

FAME

BHD

Glycerol

Propane

Water

CO2 / CO

+

+Alcohol

Catalyst

Hydrogen

Catalyst

Operate under low temp & pressure

Operate under high temp & pressure



1. Government Policy

2. Feedstock (availability and consistency)

3. Hydrogen Sourcing (availability and cost)

4. Technology

5. AEC

Key Issues




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

+ ++

(claimed)

+++

Operating Cost

as compared to diesel

- -- ---

Process Investment Cost 0 - ---




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.



Source: http://newenergyandfuel.com/wp-content/uploads/2008/04/choren-gasification-to-fuel-process.jpg

Sample of BTL process by former Choren

Biomass : Biomass to Liquid


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




Source : http://www.timaras.com/research/biofuels/Slide18.PNG




Source : http://mff.dsisd.net/biomass/2-woodenergy.htm




Ethanol Demand in Thailand

0.0

5.0

10.0

15.0

2009 2010 2011 2012 2013 2014 2015

Gasohol Consumption from 2009 to 2015

E10 (Gasohol 91)

E10 (Gasohol 95)

E20

E85

Unit : ML/D

Source : Department of Energy Business

1.25 1.24 1.23 1.39

2.60

3.25 3.50

2009 2010 2011 2012 2013 2014 2015

Ethanol Consumption from 2009 to 2015

Note : Ethanol consumption was calculated based on minimum blending ratio of ethanol in each type of gasohol



Examples of On-Going Researches in Thailand

Source : Agricultural Research Development Agency

R&D Strategic Framework on Sustainable Production of Oil Palm and Products, Year 2013 - 2017

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 by-product and value-

added product R&D Strategic

Framework

2013 - 2017

1

2

3 4

5



Examples of On-Going Researches in Thailand

Source : Agricultural Research Development Agency

Examples of R&D Projects, Fiscal Year 2013

Policy on

systematic

management

of palm oil

1

R&D on oil palm varieties and

production technology

2

Environmental Impact Assessment

3

Establishing quality standard and proper

handling

4

R&D on technology development of by-product and value-

added product

5

- 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

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-energy-

plan/?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


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