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Ria. 7

SAFETY 8. ENVIRONMENT

Oleo chemistryA traditional by-product utilizer

AbOUI 18 million metric tons(MT) of the 94 million MT ofoils and fats produced world-

wide during) 996 were used in thefeedstuff industry and in oleochem-istry.

These types of oils and fats aremainly "coupled" products, or by-products. Palm kernel oil, for exam-ple, is a 10% by-product of palm oilproduction; tallow is a coupled prod-uct of meal production. Apart fromthese products available in relativelylarge quantities, there are also someby-products, such as (l-carotene, thatcan be obtained in much smallerquantities.

One coupled product thai resultsdirectly from splitting of oils and fatsis glycerine. The market for oleo-chemical raw materials can be affect-ed by different factors, for example,the European Union's subsidizationpolicy for set-aside agricuituralland.

The technology of oleochemistrylies in finding the right mixture of allnaturally available types of materialsto solve each specific applicationproblem. Such management of fattyacids does provide opportunities, butalso involves certain potential risks,such as the current overcapacities foroleochemical basic materials andderivatives. Both the quantity and thequality of plant oils and fats can beincreased through agronomic prac-tices and new varieties. The ecologi-cal behavior of the oleochemicalproducts in the environment after theyhave been used for their intended pur-pose is another reason for a positiveevaluation of the future prospects foroleochemistry.

Oleochemistry differs from petro-chemistry and is the province ofchemically and physically processedoils and fats that have been harvestedfrom nature's garden. These rawmaterials and certain derived productsprovide the environmentally friendlyand renewable building blocks ofoleochemistry.

If "oleochemistry" is considered toinclude all naturally grown raw mate-

rials used in combination with oilsand fats to produce oleochemicals, itwill include starch and other rawmaterials that are so used. A goodexample is the surfactant alkylpolyglucoside CAPG). whose rawmaterial basis is half oils and fats andderived fatty alcohols, and half glu-cose.

HistoryOleochemistry's history stretchesback over 4,500 years. The first oleo-chemical product was soap, which theSumerians manufactured from fat andash.

Modern oleochemistry dates fromthe 1930s when fatty alcohols andtheir derivatives, fatty alcohol sul-fates, fast began to be manufacturedon an industrial scale. These sub-stances had a major effect on thedetergent, rinsing agent, and cleansermarket.

DefinitionThe word "by-product" can cover arange of materials, including inciden-tal products, coupled products, wasteproducts, and secondary products. Allthese terms are relevant in the variousutilization stages of oleocbemistry.

The raw materials of traditionaloleocbemistry are natural oils and fats.The volumes involved are severaldegrees of magnitude smaller thanthose of petrochemical feedstocks. The94 million tons of fats and oils pro-duced in 1996 is equivalent to less than3% of the approximately 3.2 billion

tons of petroleum produced each year.The raw materials and derived

products involved in the manufactureof oleochemicals include:

• Palm kernel oil, which isobtained from the kernel of the palmfruit, is a by-product of palm oil pro-duction and totals about 10-13% ofpalm oil production.

o Soybean oil, which is a co-prod-uct of soybeans that usually are pro-cessed primarily to obtain soybeanmeal, represents about 18% of thesoybean.

• Glycerine, which representsabout 10% of the content of oils andfats.

o Tallow, which is a by-product ofthe meat-packing industry. Significantquantities of inedible tallow are ele-gantly "recycled" into commercialoleochemicals.

When oils and fats are refined,some of the residues contain relative-ly small amounts of valuable tracematerials, including tocopherol (vita-min E), found in soybean oil at levelsof <0.2%, and carotenoids, includingp-caroreoe. which is contained inpalm oil as well as tomatoes, carrots,and other vegetables, but also makesup 10% of the alga Dunaliella salina.

Carbon chain spectrumlflhe concept of a by-product is appliedto the carbon-chain content of triglyc-erides, individual fats and oils can beconsidered potential sources for specif-ic fatty acids for use as oleochemicals.Oils and fats yield chains with even

INFORM. Vol. 9, no. 8 (August 1998)

801

numbers of carbon atoms in the rangeC8-C22, with defined band widths.

Coconut oil and palm kernel oilfrom Asia are the main sources ofC12-C14 chains. Smaller amounts ofthe shorter C8-C J a and longerC 16-C 18 also are present in such oils.

In palm oil and tallow, the distri-bution is exactly the reverse. Thedominant product is C 16--C18 and theby-product is CI2-C14.

In traditional rapeseed, which isrich in erucic acid (e22), C 18 is thesmaller component.

PoliticsPolitical decisions help determinewhich oils and fats get processed intoby-products.

Customs duties can be manipulat-ed to favor certain products, so thatothers are disadvantaged. For exam-ple, Malaysia charges duty on theexport of oils and fats as a means topromote the development of its ownoleochemical industry.

Agricultural subsidies in Europe,which support a policy of reducingthe amount of land used to producefood crops, spur production of rape-seed and sunflower for technical(nonedible) use, thus making thesecrops "by-products" of agriculturalpolicy. The "Agenda 2000" proposalin the European Union aims tochange the methods and amount ofagricultural subsidies.

Government decisions on researchand development may encourage ordiscourage specific advances. Geneticengineering is a case in point. In theUnited States, it is being enthusiasti-cally supported; in Germany thedebate on the pros and cons is still infull flow.

EconomyThe prices of natural oils depend onthe production volume of soy andpalm oils, the dominant oils in inter-national trade. Prices for these oilscan be strongly influenced by stock-market listings and speculation.

Technical (nonedible) oils and fatsare also by-products when they arelooked at in terms of quantities. At14% of total production of fats andoils. they have a relatively modestrole in determining prices.

Fats and oils' derivatives present(by percentage) in some typical con-sumer products include oleochemicalemulsifiers in ointments and creams(3%), processing auxiliaries in themanufacture of plastic items(0.5-2%), surfactants in shampoosand bubble baths (10-20%), andanionic and nonionic surfactants indetergents (10-15%).

modifying the carbon-chain spectrum,a plant can be designed to create thedesired products. The new metro is"the perfect plant is the plant," e.g."new" rapeseed and sunflower oilscan yield about 90% oleic acid.

Double-zero rapeseed (canola)varieties yield the more widely utiliz-able oleic acid in place of erucic acid;new sunflower oils with a higher oil

Raw materialsOils and fats are produced worldwide,and are used mainly for food.

They can be obtained from animalfat sources, but most are obtainedfrom oil palms and annuals crops,such as soybeans, cultivated to supplyglobal demand for fats. Diverse oilsand fats are required, for example, 10spread on bread, to fry steaks andhamburgers, to make salad dressings,to supply cream for coffee, and tomanufacture chocolate.

Their use in the oleochemicalindustry is most noticeable in themanufacture of cleaning compounds,including soap.

Of the 94 million metric tons (MT)of natural fats and oils obtained in1996, 77% were of vegetable origin.About 76 million MT were used inthe food industry. Of the remaining18 million MT, 6% were used to man-ufacture animal feed, and more than12 million MT to manufacture oleo-chemical products.

New types of oilNew oilseeds have been devised fornew fields of application and the opti-mal exploitation of oleochemicalbasic substances. The principle is tomake use of nature's strengths. By

In evaluating the utilization oj oleochemicalproducts based on oils and fats obtained through

genetic engineering, it should be remembered thatoil itself does not contain the altered genes.

content also contain more oleic acid,in this case instead of linoleic acid.

New varieties of rapeseed helpedfulfill a long-cherished dream: thecreation of a "coconut palm" of theNorthern Hemisphere. Through use ofgenetic engineering, a rapeseed vari-ety has been created that producesmedium-chain lauric fatty acid chainsinstead of long-chain oleic acidchains.

Key word: genelic engineeringIs "genetic engineering" a blessing ora curse?

Genetic modification (or geneticmanipulation, as it sometimes is morenegatively tenned) of a plant often isa way to reduce the number of culti-vation cycles required by traditionalplant-breeding methods. For the pur-pose of shortening the developmentand selection process, researchers uti-lize the principles that nature has fol-lowed over many generations. It iscertainly conceivable that selectivedevelopment could create an "indus-trial plant," just like the above-men-tioned variety of rapeseed.

The risks are calculable. Naturehas always had to deal with aberrantdevelopments. Thus, spontaneousnonviable and nonresistant varieties

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SAFETY Be ENVIRONMENT

The technology, and therefore the strength,of oleochemistry lies in the correct choice

of raw materialsto satisfy all combinations of criteria.

have arisen and then disappearedfrom the diversity of species.

The risk of human beings sufferingdirect bodily harm as a consequenceof. for example. microorganisms

acquiring resistance to certain antibi-otics-the genetic modifications mayinvolve such selections-is calcula-ble.

In evaluating the utilization ofoleochemical products based on oilsand fats obtained through geneticengineering, it should be rememberedthat oil itself does not contain thealtered genes but is simply the bio-chemical product of the seed of amodified plant.Enzymes that have been produced

by genetically altered bacteria are"state of the an" in tcday's consumerlaundry detergents. The residual riskthat the enzymes may affect humansis estimated as extremely low. As aconsequence of the wash temperature,the high level of dilution, the otherdetergent ingredients, and the temper-ature during the drying stage, theenzymes lose their potency. More-over, contact with humans is onlyexternal.It is understandable that the man

on the street reacts skeptically tothings which, at first sight, seem inex-plicable. Terms such as atomic ener-gy, BSE (bovine spongiformencephalopathy), electro-smog, andAIDS (acquired immune deficiencysyndrome) represent just some of themany debated areas of controversy.Much more educational effort isneeded to raise public debate to amore rational level.

Processing: the derivativesOlcochemical raw materials are pro-duced via nature's regular cycles.

They are renewable resources that arecontinuously regenerated.

The list of basic oleochemicalsincludes fatty acids, glycerine, fattyacid methyl esters, and fatty alcohols,

LimitsThe oleochemical raw materials andderivatives sector in 1997 was char-acterized by considerable over-capacity.

Some recent investments were nota result of increased demand, butwere undenaken on political and mis-

pie is to satisfy the ultimate cus-tomer, only products that conform tothe market will be developed, andthen creative and innovative waysmust be sought to dispose of the by-products.

Creative oleochemistry can beconsidered an art, such as music.Before a musical score can be playedperfectly on the piano, a number offactors have to be synchronizedexactly: with a piano that is perfectlyin tune, the pianist must know thenotes of the individual keys, must beable to distinguish between major andminor tones, must strike each key atthe right moment with exactly theright pressure, must be able to varythe tempo, must use the pedals at theright moment, and must be able tokeep time.

Similar skills are needed to playthe "piano" of oleochemistry.

• The economics of the productionlines must be optimally synchronized.

• Consumer, product, and marketdata must be accessible with a singlekeystroke.

• The positive and negative fluctu-ations in the raw material prices mustbe moderated.

• Marketing activities must becarried out at the right time with thenecessary pressure (e.g., timing andquantity of raw material purchases,or size and site of new productionlines). Market activities must con-form to market conditions withrespect to both customers and com-petitors.

The current interplay between cap-ital investment and consolidation isalmost an art form by itself, because anew, economic state-of-the-art pro-duction plant can account for up to10% of total world output.

The tempo required is dictated bythe demands of the market and aboveall the customer. This requires a con-ductor's touch.

from which a wide runge of deriva-tives can be obtained.

U"The customer is king. But who is thecustomer in the oleochemical busi-ness?

Is it the processor of oils and fats,the manufacturer of basic materials orof derivatives, or perhaps the manu-facturer who uses oleochemicalderivatives to make finished prod-ucts?

In fact, it is none of these: it is theconsumer.

Due to the consequences of chang-ing components of Iormulaticns inmany fields of application, variousdemands are rrmde on oleochemicalfeedstocks.

The oJeochemicaJ industry has asolution for almost all problem situa-tions, and generally the right combi-nation of oils and fats can be found toproduce the required properties.

The technology, and therefore thestrength, of oleochemistry lies in thecorrect choice of raw materials to sat-isfy all combinations of criteria. Onthe one hand are the requirements ofthe market, and on the other is theneed to ensure that the over-all eco-nomical picture is soundly based.What benefit is there in being able toutilize 75% of an attractively pricedoil if nothing can be done with theother 25%1

Nature supplies a multitude ofdifferent raw materials and analmost infinite number of possiblecombinations. If the guiding princi-

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perceived financial grounds, andthese have created an unbalanced sit-uation.

There is still competition frompetrochemical-derived fatty alcoholsand glycerine.

Raw material prices are subject 10more than the laws of nature,although climatic factors influenceproduction quantities. Speculativeinvestors exert a major influence onraw material prices through com-modities exchanges. By contrast,nature's limitation of production toeven-numbered carbon chains in therange C6-C22 is a minor problem forthe oleochemical industry.

Political decisions. such as thesubsidization of the cultivation ofrapeseed in Europe for the purposeof producing biodiesel fuel, can gen-erate large amounts of glycerine, forwhich a market first has to be creat-ed if the biodiesel industry is to sue-ceed.

Global annual production of fatsand oils is limited. It was only 94 mil-lion MT in 1996. Optimization of cul-tivation methods should increase thisfigure, but only somewhat modestly.

Life-cycle analysisFatty alcohol sulfate (FAS) is pro-duced from both native and petro-chemical raw materials.

For the purposes of comparison,all of the intermediate stages in thelife-cycle of FAS derived from plantshave been analyzed, starting with theoil palm. These included the carbondioxide cycle, fertilization, energyconsumption for harvesting, process-ing, and production.

A similar calculation was carriedout for petrochemical-based FAS,from which it appeared that oleo-chemical-based FAS is environmen-tally superior in a number ofrespects: (a) 70% less consumptionof energy from fossil fuels, (b) up to50% less air pollution during pro-duction, and (c) up to 15% less wastematerial.

Naturally this is only a part ofthe whole picture, but it confirmsthat the emotional appeal to con-sumers of a product associated witha natural cycle is not without foun-dation.

OutlookIn the past, the available quantity ofoils and fats per capita steadilyincreased over time. This does notmean, however, that a global satura-tion level has been reached. Althoughmost nutritional problems generallyreflect a lack of dietary protein, thereis still room for expansion in fats andoils consumption as well.

The main problem of oil and fatproduction is structural. Of the threeclassical production factors, i.e., cap-ital, labor and soil, one cannot beaugmented: the soil. The buffer ofstill-unutilized production acreage issmall, equal to about 13% of the cur-rent area under cultivation globally.Only by increasing the yield of theplants can this disadvantage be off-set.

Can something be economicallyadvantageous and ecologically bene-ficial? Perhaps, unexpectedly, it can.

If the chemical industry utilizesrenewable raw materials sensibly, itcan create innovative products thatcan be produced economically, whilesimultaneously reinforcing the trendtoward ecologically better prod-ucts-without being more expensive.The agricultural sector is finding newareas of activity, and is able to changecultivation methods to produce moreadded-value through tailor-madeproducts.

Nature's potential is being moreeffectively put 10 use. Its products canbe influenced by selective growingmethods, and in the future they willbe utilized in more rapid successionto satisfy the expected supply prob-lems.

Oleochemicals produced fromrenewable raw materials reduce theburden on the environment. The natu-ral origin of these chemicals echoesthe spirit of the times. Ecologicalresponsibility has become a moreurgent priority.

AcknowledgmentsThe detailed information included inthis commentary was discussed withnumerous experts. Special thanks aredue to Messrs. Fochem, Hill, Wenkeand Hirsinger; all of Henkel, as wellas to lSTA Mielke of Hamburg, Ger-many. •

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INFORM VOl. 9. no. 8 (August 1998)