Mr. Sanin Triyanond Chairman, Thai Biodiesel Producer ...3]Mr.Sanin Triyanond- Updates on...

Mr. Sanin Triyanond Chairman, Thai Biodiesel Producer Association

Palmex Thailand 2013 Maritime Park & Spa Resort, Krabi, Thailand

29th August, 2013

2

Contents

- Updates on Thailand’s Biodiesel Industry -

• Biodiesel Background in Thailand 1

• Government Policy 2

• Second - Generation Biodiesel 3

• Market Situation 4

• Conclusion 5

3

Contents


Biodiesel Background in Thailand


2005

2007

2010

2011

2013

B2 , B5

B3 , B5

B5

B7 (Plan)

- In 1985, royal initiative project related biodiesel has been firstly established.

- In 2005, biodiesel has been officially implemented across the country.

- In 2008, Thai government has initially established Renewable Energy Development Plan to promote the use of alternative energy

Conventional Diesel + B5

Biodiesel Background in Thailand

Government Policy

5


Goal : Committed to the development of low-carbon society

Target : 25% of AE in total energy consumption by 2021

AE

Solar & Wind

Hydro Power Plant

Bioenergy New

Energy

Biofuel


Government Policy - AEDP

Alternative Energy Development Plan (AEDP) 2012-2021

Source: Department of Alternative Energy Development and Efficient

Alternative Energy Development Plan (AEDP) 2012-2021

7

Ethanol

Biodiesel

New Fuel for Diesel Substitute

Biofuel

New Fuel for Diesel Substitute

25 ML/D

New Energy Feedstock Development (Jatropha, Algae)

Use of ethanol for blending to substitute diesel (FAEE, ED95, Diesohol)

Development of oil conversion technology (BHD, BTL)

Supply • Promote growing palm trees in appropriate area (non-food crop area)

Biodiesel

6 ML/D

Demand • Manage blending ratio according to domestic CPO production • Pilot project of using B10 or B20 in fleet trucks or proper fishery boats • Develop FAME standard to 7% blending ratio in diesel



Source: Department of Alternative Energy Development and Efficient

Plan Expected Outcome Phase I Phase II

R&D Plan

• Clear and proper information of new biofuel development leading to policy decision making • Preparation on pilot projects & commercialize of new biofuels

Pilot Project & Fleet Test

• Pilot projects • Fleet test on new biofuels • Decision making on investment of new feasible biofuel

Commercialization

• Commercialization with capacity of 2 ML/D in 2018 • Increase the capacity to 25 ML/D in 2021

ED95 Diesohol

FAEE, BHD

Algae, BTL, Jatropha

2014

2015

2016

2014 – 2016 Pilot Project: ED95/ Diesohol/ FAEE

2015 – 2017 Pilot Project: Algae, Jatropha

2015 – 2017 Pilot Project: BioJet, BHD

Commercialization (ML/D)

2018 2019 2020 2021

2 6 15 25

Source: Department of Alternative Energy Development and Efficient 8

Action Plan of New Fuel for Diesel Substitute Thailand’s AEDP, 2012 - 2021



9

Latest from Alternative Energy Development Plan ‘12– ‘21

algae oil palm eucalyptus

jatropha

Targeted Feedstock for FAME and BHD Targeted Feedstock for BTL

2013 2014 2017 2021

FAME ~2.8 ML/D FAME ~3.4 ML/D FAME ~4.2 ML/D

BHD ~2.0 ML/D

FAME ~6 ML/D

NFDS ~3 ML/D ?? NFDS : New Fuel for Diesel Substitute



10


Government Policy – B100 Spec Parameter Unit Current Spec Requested by JAMA

1 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 4 Flash Point, (P.M.) ºC 120 min 120 min 5 Sulphur Content mg/kg 10.0 max 10.0 max 6 Carbon Residue % wt. 0.30 max 0.30 max 7 Cetane Number - 51 min 51 min 8 Sulphated Ash % wt. 0.02 max 0.02 max

9 Water Content % wt. 0.05 max 0.02 max 10 Total Contaminate % wt. 0.0024 max 0.0024 max 11 Copper Strip Corrosion 3hrs. @ 50 ºC No.1 max No. 1 max 12 Oxidation stability @ 110 ºC Hr 10 min 6 min 13 Acid Value mg KOH/g 0.5 max 0.5 max 14 Iodine Value g l2/100 g 120 max 120 max 15 Linolenic Acid Methyl Ester % wt. 12.0 max 12.0 max

16 Polyunsaturated (>= 4 Double bonds) Methylester % wt. - 1.0 max 17 Methanol % wt. 0.2 max 0.2 max

18 Monoglyceride % wt. 0.80 max 0.70 max 19 Diglyceride % wt. 0.20 max 0.20 max 20 Triglyceride % wt. 0.20 max 0.20 max 21 Free Glycerin % wt. 0.20 max 0.02 max 22 Total Glycerin % wt. 0.25 max 0.25 max

23 Phosphorus mg/kg 10 max 4 max 24 Sodium plus Potassium mg/kg 5.0 max 5.0 max 25 Calcium plus Magnesium mg/kg 5.0 max 5.0 max 26 BHT - - Added 27 CFPP ºC - Report

Second-Generation Biodiesel

11


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.


2nd-Generation Biodiesel - BTL

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

Sample of BTL process by former Choren



BTL : Sample – Choren Industrietechnik GmbH

- Location: Freiberg, Germany

- Installed Capacity: 15,000 TPA

- Technology: Carbo-V®

- Investment: EUR 800 Million (for 200 kTPA)

Choren’s Milestone

1998: Pilot plant completed

2003: Scale-up plant started

2005: Shell FT dropped in

2009: Shell sold share to Volkswagen, Diamler and some investors

2011: Filed for bankruptcy

2012: Sold to Linde Engineering Dresden



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


2nd-Generation Biodiesel - BHD

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



BHD : Sample – Neste Oil Singapore PTE

- Location: Singapore (one out of 4 sites)

- Installed Capacity: 800,000 TPA

- Technology: NExBTL

- Investment: EUR 500 Million




2nd-Generation Biodiesel – BHD vs Diesel Spec No Parameters Units NExBTL EN590 Thailand Diesel Spec. 1 Density at 15°C g/cm³ 0.77 – 0.79 0.82 - 0.845 - 2 Specific gravity at 15.6 °C g/cm³ - - 0.81 - 0.87 3 Cetane number - 70 min 51 min 50 min 4 Viscosity at 40°C cSt 2.0 – 4.0 2.0 - 4.5 1.8 - 4.1 5 Sulphur content mg/kg 5 max 10 max 50 max 6 Copper strip corrosion (3h/50°C) rating Class 1 Class 1 Class 1 7 Oxidation stability (hrs;110°C) g/m3 25 max 25 max 25 max 8 Carbon residue %wt - - 0.05 max

Carbon residue (on 10% distillation residue) %wt 0.10 max 0.30 max - 9 Water and Sediment %vol - - 0.05 max 10 Water content mg/kg 200 max 200 max - 11 Total contamination mg/kg 10 max 24 max - 12 Ash %wt 0.001 max 0.01 max 0.01 max 13 Flash point °C 61 min 55 min 52 min 14 Distillation Temperature

- 90%v/v recovered °C - - 357 max - 95%v/v recovered °C 320 360 max -

15 Polycyclic Aromatic Hydrocarbon (PAHs) %wt 0.1 max 8.0 max 11.0 max 16 Lubricity, Wear Scar Diameter (wsd 1.4) at 60 °C m 650 460 max 460 max

17 Cloud Point and CFPP °C -5 / - 15/ -22 /-34

CP as agreed, report only for CFPP

- -

Source : Neste Oil : NExBTL Renewable Diesel Product Information, - Department of Energy Business, - http://en.wikipedia.org/wiki/EN_590



1. Government Policy

2. Feedstock (availability and consistency)

3. Hydrogen Sourcing (availability and cost)

4. Technology

5. AEC

Key Issues

Market Situation

20


-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Quantity (Ton/Y)

CPO Production : 2008 - 2021

Source : 2008 – 2012 : http://agri.dit.go.th , 2013 – 2021 : Forecasted by Office of Agricultural Economics from a meeting of working committee on BHD 2/2013


Market Situation – CPO Production

Prediction Actual

CPO Stock vs. Domestic Demand, Jan 2010 – May 2013

Source: Department of Internal Trade 22

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Quan

tity

(MT)

Demand for Edible Oil (MT/M)

Demand for Biodiesel (MT/M)

Stock CPOequivalent (MT/M)


Market Situation – Stock Management


Market Situation – Diesel Demand

Hi Speed Diesel Consumption, 2009 – 2013

44.0

46.0

48.0

50.0

52.0

54.0

56.0

58.0

2009 2010 2011 2012 2013

Dies

el V

ol (M

L/D)

49.7

51.4

54.7

57.8*

49.6

Note : *Forecasted by EPPO

Source: Department of Energy Business 24

0.00

0.50

1.00

1.50

2.00

2.50

3.00

B100

Con

sum

ptio

n (M

L/D)

B5

B4

B3

B2

B100 Consumption, Jan 2009 – Mar 2013

1.5 ML/D 2.4 ML/D 1.7 ML/D 1.6 ML/D

1st May 2011, Single Grade Biodiesel

2.8 ML/D


Market Situation – B100 Demand

Assumption B100 consumption based on data of diesel consumption predicted by EPPO and B7 policy implemented from Jan 2014 onwards

B100 Consumption (Prediction) ’13 – ’21

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

B100 Volume (ML/D)


Market Situation – B100 Demand


Market Situation – Brent Crude Oil Price Vs Domestic B100 Price

20

40

60

80

100

120

140 Price

Brent Crude Oil Price (USD/Barrel)

B100 Price (THB/Litre)

Brent Crude Oil Price Vs Domestic B100 Price

Source : http://www.eia.gov/dnav/pet/pet_pri_spt_s1_d.htm, http://www.eppo.go.th/petro/

Biodiesel Feedstock Consumption 2010 - 2021

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Cons

umpt

ion

(T/Y

)

CPO

RPS

PFAD

Prediction Actual

Source : Figures in 2010 - 2012 from Department of Internal Trade


Market Situation – Feedstock Consumption

28

Contents


Conclusion

1. Biodiesel has been around for years

2. Government has and will push biodiesel policy consistently

3. Solid development plan (AEDP) has been set

4. New generation of biofuels especially BHD/BTL is hope

5. Apparently, big investment for BHD/BTL is required

6. CPO production and diesel/biodiesel consumption are growing


Conclusion

THANK YOU

30

http://www.energytrendsinsider.com/2011/07/08/what-happened-at-choren/ http://newenergyandfuel.com/wp-content/uploads/2008/04/choren-gasification-to-fuel-process http://www.biofuelstp.eu/btl.html www.bioenergywiki.net/Biomass-to-liquids http://bta.excise.go.th/admin/upload_km/3020.pdf http://naldc.nal.usda.gov/download/39385/PDF http://www.nesteoil.com/default.asp?path=1,41,537,2397,14090


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