Market overview and new applications for oleochemicals in Asia
HYDERABAD 14 APRIL 2016
1. Oleochemical market dimension and main Players;
2. Oleochemical opportunities in India;
3. Single plant versus integrated oleochemical complexes;
4. Conclusions
AGENDA
2
Market perception of Oleochemical
Oleochemical is the sum of the processes which convert the vegetable oil into sustainable products
• Costant growth of raw material availability
• “Green Image”
• Minor toxicity
• Better dermatological compatibility
Advantages of Oleochemical
1. Oleochemical market dimension and main Players
World oleochemical production
6
Fatty Acids production capacity ( 2015) ≈ 11,5 MM Tonn
Fatty Alcohols production capacity ( 2015) ≈ 4,5 MM Tonn
Estimated increase in Oleochemical production 2016 - 2025
7
Kto
n of
Ole
oche
mic
al p
rodu
ct
• SEAremainthemainproduc2onmarketduetorawmaterialavailabilityand consequent upstream integra2on for all major oleochemicalproducers;
• Indiaisamarkettobefollowedcloselyduetotheincreasingconsump2onof oleochemicals products.There is poten,al in India for new installedcapaci,esinoleochemical;
• China remainmainly a consumerofOleoproducts andnot a significantgrowthisforeseeninthenextdecade.Theproduc2onshouldbesensiblylowerthentheinstalledcapacity;
• FaGy Alcohols capacity increase is strongly influenced by the Crude Oilprice(Synthe2cAlcohols).MainFaGyAlcoholsplayerswillremaininSEA.
Estimated increase in Oleochemical production 2016 – 2025
8
Oleochemical route Market utilization of oleo products
9
Glycerine Market
10
M
M T
onn
Gly
cero
l
Production by Region
• Market driven by Biodiesel production; • Oleochemical contribution remain stable;
• Europe and SEA are main production area; • China production is smaller then internal consumption;
Current Production
Glycerine Market Estimated production (2025)
11
MM
Ton
n G
lyce
rol
MAIN OLEOCHEMICAL PLAYERS
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2. Oleochemical opportunities in India
1. High male labour force partecipation rate (age 15+) ≈ 80% (World average ≈ 77 %) (*) 2. High GDP pro capita increase in the last years; (*)
3. High potential opportunities in the following industrial sectors:
• Pharmaceutical; • Automotive components; • Food ; • Soap and Toiletry; • Detergents & Cosmetics; • Manufacturing (Steel, coating, resins, pant, polyol,etc);
(*) Source: World Bank 2014 database
INDIA
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Oleochemical Route
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OleochemicalComplex
Fa8yAcids
Deriva@ves
Fa8yAlcohols
Oleochemical Route Fatty acids
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Fa8yAcids
Pharmac.&
Food
Soap,Detergent
&Cosme@c
Candles,Waxes,
&Lubricant
Rubber,Latex,Paints&Coa@ngs
Oleochemical route Fatty Acids derivatives
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Deriva@ves
Cosme@c,toiletry,slipagent&soNener
Biocides,foodprocessing&paper
Elastomers,biolubricants,polyols
&plas@cs
Oleochemical route Fatty Alcohols
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Fa8yAlcohols
Detergent(AES,ES,AS)
Cosme@c,personalcare
Foodproduct,tex@le
Lubricant,plas@cizer,
Glycerine Route
Glycerol Technical Grade
Pharma grade
Cosmetics
Animal food
Tobacco Industry
Pharmaceutical
Food
Polyurethane
Alkid resins
Propylene Glycol
Epychlorydrin
Green Methanol
Etc…
Glycerine route Propylene Glycol
20
PG
Deicing/An@freez.
Cosme@c&
Personalcare
Foodindustry
Polyesterresyns
Glycerine route Epichlorohydrin
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ECH
Epoxyresins
Pharmac.Industry
tex@leindustry
WTresins
3. Single plant versus integrated oleochemical complex
Single Plant (up to early 2000)
VEGETABLEOIL
FATTYACIDSCOMPLEX
FATTYALCOHOLSPLANT
DETERGENTSANDSURFACTANTS
Integrated Oleochemical Complex multipurpose industrial area
SULPHONATION
MESFATTYACIDS
ESTERIFICATION
METHYLESTERFRACTIONATION
METHYLESTERSMETHYLESTERHYDROGENATION
FATTYALCOHOLS
TRANSESTERIFICATIONFORBIODIESEL
GLYCEROLESTERIFICATION
Fa8yMa8er
CrudeGlycerine
MONO/DI/TRIGLYCERIDES
FAD
FATTYACIDSPLANT
VEGETABLEOILPRETREATMENT
GLYCERINEREFINING
PHARMAGLYCERINE
FATTYACIDS
Single plant vs Integrated Complex Comparison
SINGLE PLANT INTEGRATED COMPLEX • STANDARD FEEDSTOCKS WIDE FEEDSTOCKS RANGE (Lauric Oils & Palm Oil) (Lauric Oils, PO, PST, FAD, Sludge Oils,
Acid Oils, etc) • LOW PRODUCTION FLEXIBILITY HIGH PRODUCTION FLEXIBILITY • STANDARD PRODUCT SPECIFICATIONS TAILOR MADE PRODUCT SPECIFICATIONS • STANDARD PLANT CONFIGURATIONS TAILOR MADE PLANT CONFIGURATIONS • LOW INTEGRATION HIGH INTEGRATION WITH OTHER TECHNOLOGIES WITH OTHER TECHNOLOGIES
( Biodiesel, MES, Fatty Alcohols, etc.)
4. Conclusions
Oleochemical business and India opportunities
• Oleochemical business, perceived as sustainable and green, is growing at constant rate;
• India has big potential in oleochemical, expecially in Personal Care,
Soap, detergents and manufacturing industry;
• The availability of unsaturated oil can also create potential for oleochemical derivatives like polyols and biolubricants;
• the market competition requires the set up of oleochemical complexes, which have to be flexible and able to provide a wide range of products;
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THANK YOU FOR YOUR ATTENTION
Ir.GabrieleBacchiniOleochemicalProductManagerGabriele.bacchini@desmetballestra.com