oils and fats sustainable growth - ferrostaal · oils and fats market with a future the demand for...
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Oils and fatsSustainable growth
Turning Ideas into Reality.
MAN Ferrostaal
2
InsightHuge potentials
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 manu-
facture 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 tech-
nology 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.
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Oils and fatsMarket 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
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 devel-
oping 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.
4
Edible oils are a valuable primary material for many products.
The edible oil market is growing – driven by the rising consump-tion of food and the demand for alternative fuels for the transport sector.
World edible oil production from the four most important oilseeds: rape, oil palm, soya and sunflower
© FAPRI
0.0
20.0
40.0
100.0
120.0
140.0
160.0 Sum (million metric tonnes)
80.0
111.2
120.5124.4
128.2131.6
135.2138.8
142.6
60.0
2007 2008 2009 2010 2011 2012 2013 2014 2015
115.5
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 develop-
ment in the future. According to forecasts, the world-
wide production of biodiesel is likely to rise to 15 mil-
lion 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.
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.
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 gen-
eral contractor.
Our plants combine a high level of environmental
compatibility with low energy consumption – criteria
which are becoming increasingly important in times
of diminishing resources.
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Around 40 countries intend to use alternative fuels for transport in future.
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.
The consumption of edible oil by the chemical industry will increase greatly in the next ten years.
Biodiesel production of the five largest producer coun-tries (Argentina, Brazil, EU, Indonesia, USA)
2000 2005 2010 2015
Fatty acid and alcohol consumption
8.0 Sum (million metric tonnes)
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Alcohol Acid
2007 2008 2009 2010 2011 2012 2013 2014 20150.0
2.0
4.0
10.0
12.0
14.0
16.0 Sum (million metric tonnes)
8.0
6.0
8.3
1.7
2.22.6
3.1
5.1
6.3
7.8
3.9
9.5
12.313.1
13.814.5 15.0 15.5
9.0
© FAPRI
Agricultural sector and producersOpportunity
The global development of supply and demand for oilseed provides
excellent opportunities for a rapid growth of raw material cultiva-
tion 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.
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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 exist-
ing 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 devel-
opment 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 through-
out 30 countries, including Russia, Brazil, Peru and
Thailand. This has made us into a world-renowned
engineering specialist for vegetable oil plants. In addi-
tion to the planning and financing, we also undertake
the construction and commissioning of the plants.
In each phase, MAN Ferrostaal works with the best partner for the project and also contributes its own refining technologies.
Partners for process phases in major projects
MAN Ferrostaal
Seed reception /seed storage
Seed preparation
Pressing
Extraction
Refinery
Oil storage
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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.
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Edible oilAn all-round talent
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Edible oils are in demand – the rising standard of
living in many countries of the world and the re-
sulting 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 fre-
quently 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 sought-
after product. This is used as a high-protein feed in live-
stock 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, particu-
larly 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 – re-
gardless 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.
Most frequently processed to vegetable oil are the oily seeds of soya and the oil palm.
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.
World production of 17 oils and fats (Total 159.4 million tonnes)2007/2008, million tonnes; PKO = Palm kernel oil; CNO = Coconut oil
Palm oil 41.76
Sunflower oil 9.88
Rape oil 19.13
Soya oil 38.57
Others/animal fats 41.92
PKO & CNO 8.13
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BiodieselSustainable alternative
Biodiesel represents an alternative to diesel fuel
from fossil energy sources with one essential ad-
vantage: 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 pro-
duce biodiesel of a quality above the European stan-
dard. Here too, however, our Best Partner principle
governs our business. We explore the market for the
best solutions – independent of suppliers and technol-
ogy providers.
In the production of biodiesel, we undertake to main-
tain the high standards of sustainability. This includes
certified environmental compatibility of land use, a
verifiable saving of greenhouse emissions and coexis-
tence 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 East-
ern 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 green-
house 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.
108 kg Methanol
Biodiesel plant
Multi-feedstock: Rape oil, soya oil, palm oil
(Example: Rape oil/1.030 kg)
Refining1,000 kg Edible oil
103 kgPharmaceutical glycerine
Biodiesel from plant oil
1,000 kgBiodiesel
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.
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.
Refined technology From the oil mill to the final product
Whether as ingredients in mayonnaise, as an energy source in com-
bined heat and power plants or as a fuel for transport, vegetable oils
serve as an important primary material for countless products. Re-
gardless 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.
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Crude vegetable oil
Edible oil
Fats
Mayonnaise
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.
Human consumption
FuelIndustrial
processing
Biodiesel
Vegetable oil
Products from vegetable oil
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 ex-
traction, 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 var-
ies 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 sol-
vents directly after the preparatory treatment of the
raw material.
Raw oils often contain substances that have a nega-
tive 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 con-
sumed 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 agri-
culture as a high-grade feed.
Biodiesel
For the production of biodiesel, a so-called transesteri-
fication 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-prod-
uct glycerine is an important primary material for the
manufacture of cosmetics and plastics.
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 pri-
mary 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.
By means of so-called hardening, edible oil can be processed to produce margarine.
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.
Weighing bridge Railway unloading
Truck unloadingWeighing bridge
Reception Pre-cleaning
Preparation
Seed storage
Oil clarification
Extraction
Sunflower seed
Press cake
Flakes
Setting pit
Hexane storage
Waste air scrubber
Hexane recovery
Absorption
Hexane condensation
Water degummingDistillation
Meal coolerMeal drierDesolventizer/toasterExtractor
Oil filtration
Decanter
Oil dryingOil screening
Waste air
Waste water
Daily bin Weighing Cleaning Crushing
Dehulling
Hull pelletizing
Flaking
Wet silo Seed dryer
Oil storage
Meal storage
Pre-pressing
Refinery
Hulls
Bleaching earth
Wax
Fatty acid
Hydrogenated fatty acid
Distilledfatty acidFatty alcoholPure glycerineBiodiesel
Crude oil
Glycerine distillation
Bleaching
Soapstock splitting
Neutralization
Conditioning
Dewaxing
Hydrogenation
Fractionation/ distillation
Glycerine waterevaporation
Transesterification Splitting
MealTruck loadingMeal storage
Ship loadingTank farm
Deodorizing
Pre-pressing
Silo storage
MAN FerrostaalComprehensive expertise – worldwide
Our decades of experience as a general contractor for the con-
struction 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 feasibil-
ity 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 transpar-
ent financing strategy. In selected cases we also get
involved financially.
Project management
MAN Ferrostaal generally takes on overall responsibil-
ity for a project, frequently as the general contractor
controlling the engineering, purchasing and construc-
tion 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 sup-
pliers 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 en-
suring 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 pro-
vider 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 respon-
sibility for maintenance and service.
12
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.
Project development
EPC
· 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.
Model
Capital
Triple Value
Approach
Risks
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 all-
inclusive charge.
· MAN Ferrostaal participates in the capitalisation of
selected projects on terms individually agreed with
the customer.
· MAN Ferrostaal carries out the engineering, procure-
ment 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.
MAN Ferrostaal will establish partnerships for entering the biofuel market¹ Operation and Maintenance; ² Engineering Procurement Construction; ³ Utilities and Operation; 4 Special Purpose Company
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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 technolo-
gies 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.
EPC2
E, P C U/O3
Local feedstock provider
MAN Ferrostaal(minority
share)
Special purpose company
OfftakerStrategic investor
Local feedstock provider
· Provides land and conducts operations (agro, conversion)
· Gets access to finance/offset
· Provides equity and integrates project
· Provides EPC service
MAN Ferrostaal
· Operation· Provides maintenance
Offtaker
O&M¹
· Provides the en-trepreneurial skills and representation
· Offering offtake agreement
· Outsource project development to partners
Major partners in biofuel production will form a special purpose company
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 SPC4 and involve financing partners early in evaluation process
Define timelines, milestones and budget
Financial close
Strategicinvestor
MAN Ferrostaal – Turning Ideas into Reality.
Markets with good prospects
MAN Ferrostaal locations
MAN Ferrostaal Biofuels Competence Centres
We know all the regions that are suitable for the eco-
nomically attractive production of oils and fats. We
have been at home there for decades. We contribute
our market proximity, our experience and our inter-
national connections to ensure the success of our
projects.
Your contact partner at MAN Ferrostaal:
Geisenheim Competence Centre
MAN Ferrostaal AG
Tel + 49-6722-501-455, Fax + 49-6722-501-654
Contact partner for oils and fats
Tel + 49-6722-501-584, Fax + 49-6722-501-513
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
General e-mail contact for oils and fats:
15
© B
ase
map
: car
togi
s, B
erlin
Biodiesel plant with a capacity of 100,000 tonnes per year.
MAN Ferrostaal AGHohenzollernstrasse 2445128 Essen/GermanyTel +49.201.818-01Fax +49.201.818-2822
www.manferrostaal.com