Oils and fats Sustainable growth Turning Ideas into Reality. MAN Ferrostaal
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Insight Huge potentials 3 Vegetable oil and biodiesel are now more sought after than ever before. They form the basis for food, energy in combined heat and power plants and fuel for the transport sector. Demand is growing at a tremendous pace and will keep doing so, matching the world s rapid population growth and the rising living standards across wide sections of the population in emerging markets. Great potential lies within the market for industrial agriculture and producers. At the same time, the raw material basis for the manufacture of vegetable oil is very varied. The vital ingredient, however, is assembling the best partners for a project. MAN Ferrostaal integrates all the relevant market players into one project and assumes responsibility for its long-term economic success. That is what we stand for with our Best Partner principle. With our partners, we rely on a collaboration of trust. The technology that we choose is the best for the project concerned, and for the financing we find individual solutions. We develop projects designed for the future and, as general contractor, ensure smooth plant construction and operation.
4 Oils and fats Market with a future The demand for vegetable oils continues unabated. Driven by the increasing consumption of high-quality edible oils for everyday food and the growing demand for alternative fuels in the transport sector, the market is developing its own momentum. According to forecasts from the Food and Agricultural Policy Research Institute, global production of vegetable 160.0 Sum (million metric tonnes) oil from the four most important oil seeds will have increased to around 142 million tonnes by 2015. The trend is constantly growing because demand is rising out of proportion to the world population. The main force driving this demand is the enormous population growth and the rising living standards of wide sections of the population, particularly in emerging and developing markets. At the same time, the consumption of animal products is increasing there. This, in turn, has a positive effect on the demand for high-protein animal feed a by-product of edible oil production. 140.0 120.0 100.0 80.0 60.0 40.0 20.0 111.2 115.5 120.5 124.4 128.2 131.6 135.2 138.8 142.6 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 World edible oil production from the four most important oilseeds: rape, oil palm, soya and sunflower FAPRI The edible oil market is growing driven by the rising consumption of food and the demand for alternative fuels for the transport sector. Edible oils are a valuable primary material for many products.
5 In addition to the huge demand for high-quality oils for human consumption, the further processing of these oils into biodiesel fuel for the transport sector plays a significant role. Exploding prices for crude oil and mandatory blending quotas in over 40 countries around the world will continue to drive this development in the future. According to forecasts, the worldwide production of biodiesel is likely to rise to 15 million tonnes by 2015. After all, fuel from renewable raw materials promises two benefits: energy security and a reduction of CO2 emissions, which are known to be a major cause of global warming. Around 40 countries intend to use alternative fuels for transport in future. New quality standards, such as energy awareness and more exacting environmental requirements, also play an increasingly important role in the production of vegetable oils a development which will require the construction of many new industrial plants. 16.0 Sum (million metric tonnes) 14.0 12.0 10.0 9.5 9.0 8.3 8.0 6.0 12.3 13.1 13.8 14.5 15.0 15.5 As an experienced plant constructor, MAN Ferrostaal has established itself in the edible oil and biodiesel sectors. We have constructed over 100 edible oil plants around the world. The range of services we provide varies from project development to project financing and management, extending to our expertise as general contractor. 4.0 2.0 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 Biodiesel production of the five largest producer countries (Argentina, Brazil, EU, Indonesia, USA) FAPRI The production of biodiesel has exploded in recent years. Blending quotas and record prices for crude oil will accelerate this upward trend in the future. Our plants combine a high level of environmental compatibility with low energy consumption criteria which are becoming increasingly important in times of diminishing resources. 8.0 Sum (million metric tonnes) 7.0 6.0 5.0 5.1 6.3 7.8 4.0 3.0 2.0 1.7 3.9 2.2 2.6 3.1 1.0 0.0 2000 2005 2010 2015 Fatty acid and alcohol consumption Alcohol Acid The consumption of edible oil by the chemical industry will increase greatly in the next ten years.
6 Agricultural sector and producers Opportunity The global development of supply and demand for oilseed provides excellent opportunities for a rapid growth of raw material cultivation and production. Driven by population growth, the rising demand from emerging markets and the requirement for fuel for transport, world production of vegetable oil, biodiesel and vegetable fats will rise continuously in the decade to come. MAN Ferrostaal Seed reception /seed storage Seed preparation Pressing Extraction Refinery Oil storage Partners for process phases in major projects In each phase, MAN Ferrostaal works with the best partner for the project and also contributes its own refining technologies. Worldwide the markets are growing. In future, several million more tonnes of vegetable oil and fats will have to be produced every year to cover this vast demand. As raw materials for oil mills, soya and rape will take the largest market share, followed by sunflowers. For production, new plants will be built and existing plants upgraded. MAN Ferrostaal offers concrete solutions for success for both new and experienced producers, the agricultural industry and interested investors. What is more, we combine project development with the services typical of an experienced plant constructor and the financial strength of a large industrial concern. Focus on edible oil For over 35 years, as general contractor, we have been building vegetable oil plants with capacities from 600 tonnes of oilseed per day up to large-scale plants. Worldwide, we have completed over one hundred such plants to date. These plants are spread throughout 30 countries, including Russia, Brazil, Peru and Thailand. This has made us into a world-renowned engineering specialist for vegetable oil plants. In addition to the planning and financing, we also undertake the construction and commissioning of the plants.
7 As project developer and general contractor, in addition to the planning and financing, we also undertake the construction and commissioning of plants. Focus on biodiesel In the biodiesel sector, we concentrate on plants with capacities of between 100,000 and 200,000 tonnes per year. We frequently design these as multi-feedstock plants, so that they can react flexibly to the existing raw material basis and to the fuel market. We have completed a turnkey biodiesel plant in Poland for the customer Lotos Biopaliwa. The total investment volume was 25 million euros. At present, we are constructing a further biodiesel plant for the customer J&S Bio Energy B.V. in Amsterdam, Netherlands. Edible oil plant in Emden, Germany.
8 Edible oil An all-round talent Edible oils are in demand the rising standard of living in many countries of the world and the resulting strong demand for high-quality vegetable oils is driving the edible oil market on at a rapid pace. At 115.5 million tonnes of oil, production reached a new record level in 2008. Edible oil is a collective term for a whole range of different oils used unprocessed or as a constituent in countless foods. A variety of raw materials therefore come into consideration for its manufacture. Most frequently used for further processing into vegetable oil are the oily seeds of sunflowers, canola/rape, soya and the oil palm. Together with our project partners, we select the right raw materials for successful projects according to the region. Apart from the oil, the meal that remains after production of the oil is also a soughtafter product. This is used as a high-protein feed in livestock farming. The so-called isolates contained in the meal can also be used as a food additive for human nutrition. As a result of increasing affluence, particularly in the emerging and developing countries, and the associated growth in the consumption of meat, the demand for high-quality feeds will rise sharply in the future. MAN Ferrostaal offers its customers in the edible oil segment intelligent project development right from the initial idea, in which every detail is thought out in advance for the production of edible oil. What is more, we combine project development with the services typical of an experienced plant constructor and the financial strength of a large industrial concern. This means we are in a position to cover the process all the way along the value added chain, from the raw material to the raw oil through to the refined end product regardless of whether the oil is for human consumption or for technical use. World production of edible oils has more than doubled since the 60s. In addition to rape, soya and oil palm, sunflowers are an important supply source for production of the valuable oil. The largest areas of soya cultivation worldwide are in North and South America. This plant is an important raw material for the production of vegetable oil and biodiesel. Palm oil 41.76 Rape oil 19.13 Sunflower oil 9.88 World production of 17 oils and fats (Total 159.4 million tonnes) 2007/2008, million tonnes; PKO = Palm kernel oil; CNO = Coconut oil Soya oil 38.57 Others/animal fats 41.92 PKO & CNO 8.13 Most frequently processed to vegetable oil are the oily seeds of soya and the oil palm.
Biodiesel Sustainable alternative 9 Biodiesel represents an alternative to diesel fuel from fossil energy sources with one essential advantage: in contrast to its fossil counterpart, it will not run out but instead continue to grow in fields and plantations. Rape, soya beans, the fruit of the oil palm and even old edible fats are all ideally suited for biodiesel production. The manufacturing process here differs only slightly from that of an oil destined for food use. Together with its partners, MAN Ferrostaal has recourse to its own technology for the manufacture of biodiesel, with a worldwide licence for the Connemann process. This very economical technology makes it possible to produce biodiesel of a quality above the European standard. Here too, however, our Best Partner principle governs our business. We explore the market for the best solutions independent of suppliers and technology providers. Jatropha, also known as the physic nut, is a shrub from the euphorbia family and is set to play a major role in the future production of biodiesel. In the production of biodiesel, we undertake to maintain the high standards of sustainability. This includes certified environmental compatibility of land use, a verifiable saving of greenhouse emissions and coexistence with food production. We therefore concentrate on countries with sufficient area available to permit the production of biodiesel in addition to a secure food supply Latin America, South East Asia and Eastern Europe. Vegetable oils are also suitable for use as an energy source in combined heat and power plants. In this way, power and heat can be generated using vegetable oils with no harmful impact on the environment. A possibility which, against the backdrop of rising energy costs and continuing climate change, will become increasingly important since every gram of greenhouse gas not emitted into the earth s atmosphere helps to protect our environment. Rape is an important primary material for the production of biodiesel. From the crop grown in a one-hectare field, up to 1.6 tonnes of biodiesel can be produced. Multi-feedstock: Rape oil, soya oil, palm oil (Example: Rape oil/1.030 kg) Refining 1,000 kg Biodiesel Biodiesel from plant oil Biodiesel plant 1,000 kg Edible oil 108 kg Methanol 103 kg Pharmaceutical glycerine Highly efficient processes allow MAN Ferrostaal to produce edible oil or biodiesel from a variety of starting materials. In the preparation of biodiesel, the addition of methanol also produces pharma glycerine.
10 Refined technology From the oil mill to the final product Whether as ingredients in mayonnaise, as an energy source in combined heat and power plants or as a fuel for transport, vegetable oils serve as an important primary material for countless products. Regardless of the raw material and the end product, MAN Ferrostaal, as project developer and general contractor in the vegetable oil segment, organises the planning and financing, construction and commissioning of plants. Human consumption Edible oil Fats Mayonnaise Products from vegetable oil Crude vegetable oil Fuel Biodiesel Vegetable oil Industrial processing Detergents Tensides Derivates (e.g. fatty acids, fatty alcohols, enzymes) All-round talent: Vegetable oils are needed for countless products. Apart from the enormous demand for high-quality oils for human consumption, their further processing into biodiesel fuel also has a major role to play for the transport sector. For the chemicals industry, they are an important primary material for the manufacture of a large number of products such as plastics, detergents, lubricants and cosmetics. A wide range of application Edible oil can be manufactured in different ways. In the case of soft seeds such as those from the sunflower, the oil is pressed from the oily seeds after treatment. A raw oil is produced. In this case, however, since about eight percent of the oil is left in the press cake, another process is often used: By means of so-called solvent extraction, the raw oil is separated from the press cake after the treatment and pre-pressing of the seed. The oil yield can be increased in this way. The process varies slightly according to the raw material. In the case of soya, for example, the pressing can be completely dispensed with. The oil is extracted by means of solvents directly after the preparatory treatment of the raw material. Raw oils often contain substances that have a negative effect on the flavour, odour and keeping qualities of the oil. For this reason, practically all edible oils are nowadays refined. But refining is also important for the production of technical oil the higher the purity of an oil, the less emissions are released when it is burnt.
Edible oil Edible oil is vital for human nutrition. It can be consumed without processing, but it is also used as a constituent in food. By means of special hardening processes, vegetable oil can be made into margarine. The meal left over from the production is used in agriculture as a high-grade feed. Biodiesel For the production of biodiesel, a so-called transesterification process modifies the structure of the edible oil. This produces biodiesel and glycerine. Thanks to its outstanding combustion properties, biodiesel has already established itself in the market. The by-product glycerine is an important primary material for the manufacture of cosmetics and plastics. By means of so-called hardening, edible oil can be processed to produce margarine. Oil for combined heat and power plants Edible oil is also used as an energy source in combined heat and power plants. These are appreciably more efficient and more economical in consumption than conventional power plants, using up to 90 percent of the primary energy that is largely lost in conventional plants. Against the backdrop of rising energy costs, the importance of combined heat and power plants will increase in the future. Fatty acids and fatty alcohols The chemical industry already uses edible oil as a primary material for the manufacture of a large number of products. Plastics, detergents, lubricants, cosmetics and printing inks all consist, in part, of fatty acids or fatty alcohols. These fatty acids or fatty alcohols can be produced by means of so-called splitting, in which the refined oil is broken down into its individual constituents. These are mainly used as raw materials for tensides, from which detergents and cleaning agents, cosmetic and pharmaceutical products are manufactured. In combined heat and power plants, up to 90 percent of the primary energy can be utilised. These can also be operated with edible oil. Fatty acids and fatty alcohols are used for the production of tensides for the manufacture of detergents and cleaning agents.
Seed storage Weighing bridge Railway unloading Sunflower seed Reception Pre-cleaning Weighing bridge Truck unloading Preparation Daily bin Weighing Cleaning Crushing Dehulling Oil clarification Oil screening Oil drying Oil filtration Decanter Extraction Press cake Extractor Desolventizer/toaster Meal drier Meal cooler Flakes Distillation Water degumming Absorption Waste air scrubber Waste air Hexane condensation Hexane recovery Hexane storage Setting pit Waste water
Wet silo Seed dryer Silo storage Pre-pressing Flaking Conditioning Pre-pressing Hull pelletizing Hulls Refinery Neutralization Bleaching Deodorizing Soapstock splitting Dewaxing Bleaching earth Wax Fatty acid Oil storage Tank farm Ship loading Crude oil Meal storage Meal storage Truck loading Meal Transesterification Splitting Glycerine water evaporation Fractionation/ distillation Glycerine distillation Hydrogenation Biodiesel Pure glycerine Fatty alcohol Hydrogenated fatty acid Distilled fatty acid
12 MAN Ferrostaal Comprehensive expertise worldwide Our decades of experience as a general contractor for the construction of large industrial plants all around the world mark out MAN Ferrostaal as ideally suited to develop and build plants for the production of edible oil and biodiesel. Our services cover the entire process, from planning to financing to turnkey handover. Development and financing Our services start at an early stage with the business idea. We put the project on a solid basis with feasibility studies, market analyses, a business plan and the search for strategic investors. In the contract phase we do the preliminary work and devise strategies for the central questions. We have technology providers and engineering partners to assist us. In the financing phase we develop a bespoke, efficient and transparent financing strategy. In selected cases we also get involved financially. Project management MAN Ferrostaal generally takes on overall responsibility for a project, frequently as the general contractor controlling the engineering, purchasing and construction of the plant right through to commissioning. Risk management plays a central role here. Our project and quality management is certified in accordance with international standards. A partner-like relationship with customers, suppliers and financial partners which is based on transparency and trust is essential here. Coordinating the partners In some projects we bring together more than 100 partners. Our global sourcing is an important success factor here. We cooperate with the world s best suppliers of material and services, thereby guaranteeing the best possible cost and quality management. Our staff in over 60 countries systematically monitor the regional markets and thus support our global sourcing activities. Precise knowledge of the creditworthiness and quality of the local providers ensures a solid basis for selecting the suppliers. As the general contractor we coordinate the work of all these partners, thus ensuring the high quality of the resulting products and services. Integration of complex systems Plants for the production of edible oil and biodiesel are technically complex products. As a service provider acting in partnership, we reduce this complexity for our partners. The partnership does not end with the handover of the turnkey plant we also take on responsibility for maintenance and service.
13 Crucial for the success of edible oil production is assembling the best partners for a project. MAN Ferrostaal practises this Best Partner principle. We develop financially viable projects for long-term profitability. Our services at a glance: MAN Ferrostaal, as an experienced and dependable partner, undertakes project development on behalf of the customer. We provide this service for an allinclusive charge. Approach Project development MAN Ferrostaal participates in the capitalisation of selected projects on terms individually agreed with the customer. EPC Triple Value Capital MAN Ferrostaal carries out the engineering, procurement and construction for a large number of different types of plants. As a successful general contractor, we undertake the construction of turnkey plants with reliable partners. Risks Model Fair risk distribution among all partners Realistic budgets and plans Professional joint risk management Best Partner MAN Ferrostaal offers its partners an attractive business approach.
14 MAN Ferrostaal Your partner for oils and fats For vegetable oil projects, we integrate all the relevant market players into one project company. We offer our customers intelligent project development, in which every detail for the production of edible oil and biodiesel is thought out in advance. We know all the technologies that can be considered, but we can act independently in making our selection. This is another reason why we can develop individual concepts that meet the special requirements of our partners. Strategic investor Provides the entrepreneurial skills and representation Local feedstock provider MAN Ferrostaal Provides land and conducts operations (agro, conversion) Gets access to finance/offset Provides equity and integrates project Provides EPC service Major partners in biofuel production will form a special purpose company Local feedstock provider MAN Ferrostaal (minority share) Offtaker Strategic investor 6 steps of project development Identify and secure feedstock Sign confidentiality agreement with all major partners (core development) Conduct feasibility study technically + commercially (active development) Structure SPC 4 and involve financing partners early in evaluation process Offtaker Offering offtake agreement Outsource project development to partners Special purpose company Define timelines, milestones and budget Financial close EPC 2 O&M¹ Operation Provides maintenance E, P C U/O 3 MAN Ferrostaal will establish partnerships for entering the biofuel market ¹ Operation and Maintenance; ² Engineering Procurement Construction; ³ Utilities and Operation; 4 Special Purpose Company
Base map: cartogis, Berlin 15 Markets with good prospects MAN Ferrostaal locations MAN Ferrostaal Biofuels Competence Centres MAN Ferrostaal Turning Ideas into Reality. Your contact partner at MAN Ferrostaal: We know all the regions that are suitable for the eco- Geisenheim Competence Centre nomically attractive production of oils and fats. We MAN Ferrostaal AG have been at home there for decades. We contribute Tel + 49-6722-501-455, Fax + 49-6722-501-654 our market proximity, our experience and our inter- Contact partner for oils and fats national connections to ensure the success of our Tel + 49-6722-501-584, Fax + 49-6722-501-513 projects. Contact partner for biodiesel Tel +49-6722-501-296, Fax +49-6722-501-513 Contact partner for regions: Eastern Europe Tel + 49-201-818-2311, Fax + 49-201-818-3331 Central and South America Tel + 49-201-818-2480, Fax + 49-201-818-3331 South East Asia Tel + 49-201-818-2618, Fax + 49-201-818-3331 Biodiesel plant with a capacity of 100,000 tonnes per year. General e-mail contact for oils and fats: oilsandfats@manferrostaal.com
www.manferrostaal.com MAN Ferrostaal AG Hohenzollernstrasse 24 45128 Essen/Germany Tel +49.201.818-01 Fax +49.201.818-2822