oxiteno starts expansion; p&g puts project on hold

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were adopted at the 3rd RSPO roundtable meeting held in Nov 2005. They encompass all facets of sustainability ensuring that production is economically viable, legal, environmentally appropriate and socially beneficial (full details are available from website: http://www.rspo.org). About 10 oil plantation companies are currently mid-way through a two-year testing period for the implementation of the principles and criteria (P&C); preliminary results will be presented at the forthcoming 4th roundtable meeting in late November this year. The meeting will also review progress on interpretation of the P&Cs in various producer countries according to their laws and standards, as well as efforts to tackle the applicability of P&Cs for smallholders, who account for anywhere between 10% and 90% of palm oil production in different countries. RSPO is also currently looking at models for verification of sustainable palm oil as well as mechanisms for tracing the product from plantation to end user. It is an ironic fact, however, that the November RSPO meeting in Singapore is likely to take place under the regional dry season’s annual pall of haze from forest and land fires in neighbouring Indonesia – haze that is at times thick enough to reduce visibility to 50 m, causing significant pollution problems and even forcing airports to cancel flights. And the chief cause of the fires? The illegal burning of forest on central Borneo’s peaty soils, which is widely blamed on farmers and logging companies clearing land for oil palm plantations. So, while RSPO members talk, the forest burns... a practice totally opposed by RSPO’s P&C. ‘Slash and burn’ is also officially banned by Indonesia’s government but in the remote central areas it seem powerless (or unwilling) to enforce this. RSPO’s remit at this stage of its life is to promote best practices in palm oil production rather than to enforce them. So we must hope its example can inspire governments to fulfil their obligations. If not, we face the bleak future scenario where vast swathes of our planet’s most biodiverse habitats are irreversibly replaced, with consequent loss of indigenous cultures and the consignment of a few select representatives of this rich flora and fauna to botanical gardens and zoos. However, if RSPO is allowed to achieve its objectives, we can avoid this and obtain all the benefits of a secure supply of a renewable resource. Caroline Edser RAW MATERIALS Linear alkylbenzene Russian oil firm plans to establish itself in petchems Russian oil producer Tatneft aims to strengthen its petrochemicals business by making a $3.2 bn investment in a refining and petrochemical complex in Nizhnekamsk, Tatarstan. The complex will be built in a 400 ha site located next to plants run by Nizhenekamskneftekhim, a firm operated by OAO Tataro-American Investments and Finance. The proposed complex will be managed by a Tatneft affiliate, ZAO Nizhnekamsk Oil Refinery. Construction will be undertaken in three phases. Phase 1, scheduled to be finished at the end of 2008, will include a 7 M tonne/y oil refinery. Phase II, which is expected to begin in 2009, will include a 3.5 M tonne/y fuel oil plant. Phase III, which will be constructed by 2010, will include plants for producing 39,000 tonnes/y of benzene, 80,000 tonnes/y of linear alkylbenzene and a variety of other petrochemical products. Foster Wheeler and BNP Paribas have been designated as consultant and financial adviser, respectively, for the project. Chemical Week, 30 Aug 2006, (Website: http://www.chemweek.com) Oleochemicals Oxiteno starts expansion; P&G puts project on hold Oxiteno, a Sao Paolo-based subsidiary of Ultrapar, has started construction work for its fatty alcohols facility at Camacari, Brazil, which has a capacity of approximately 100,000 tonnes/y [Focus on Surfactants, Apr 2005]. The facility, which will be built for $120 M, could also produce fatty alcohol co-products fatty acid and glycerine. It will start operating in 1H 2007 and will use lauric vegetable oil as its main raw material. The fatty alcohols will be utilized in manufacturing processes of powder and liquid laundry detergents, and fabric softeners. Oxiteno intends to set aside 30% of the facility’s output for captive use, with the rest to be marketed on the merchant market in South America and other countries. The company expects to increase its sales by $80 M with the help of the facility. Brazil’s consumption of fatty alcohols stands at around 90% of the 50,000 tonnes/y imported by South America. The fatty alcohols facility is part of Oxiteno’s $320 M expansion project at Camacari. Meanwhile, the plan of Procter & Gamble Chemicals for its FPG Oleochemicals jv for the construction of a 120,000 tonnes/y fatty acids plant at Kuantan, Malaysia [ibid, May 2005] has been put on hold. Chemical Week, 30 Aug 2006, (Website: http://www.chemweek.com) Taiko oleochemical project on stream in Jiangsu Taiko Palm-Oleo (Zhangjiagang) Co Ltd has successfully commissioned a 150,000 tonne/y integrated facility for fatty acids, glycerine and soap bases in Jiangsu province, China. The $70 M project is a joint venture between two Malaysian firms, Kuala Lumpur Kepong Bhd (KLK) and Taiko Marketing Sdn Bhd [Focus on Surfactants, Mar 2005]. KLK is planning further oleochemical investments at Yangzijiang International Chemical Industry Park in the Zhiajiagang Bonded Area. Products will be used in the surfactant, polymer, coatings, pharmaceutical and agrochemical sectors. China Chemical Reporter, 16 Jul 2006, 17 (20), 12 Major supermarkets sign up to take action on palm oil On 2 Aug 2006 Morrisons was the last of the major supermarkets in the UK to announce its intention to join international efforts to tackle the problems caused by palm oil, following a campaign to highlight the 2 OCTOBER 2006 FOCUS ON SURFACTANTS

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Page 1: Oxiteno starts expansion; P&G puts project on hold

were adopted at the 3rd RSPOroundtable meeting held in Nov 2005.They encompass all facets ofsustainability ensuring that productionis economically viable, legal,environmentally appropriate andsocially beneficial (full details areavailable from website:http://www.rspo.org). About 10 oilplantation companies are currentlymid-way through a two-year testingperiod for the implementation of theprinciples and criteria (P&C);preliminary results will be presentedat the forthcoming 4th roundtablemeeting in late November this year.The meeting will also review progresson interpretation of the P&Cs invarious producer countries accordingto their laws and standards, as wellas efforts to tackle the applicability ofP&Cs for smallholders, who accountfor anywhere between 10% and 90%of palm oil production in differentcountries. RSPO is also currentlylooking at models for verification ofsustainable palm oil as well asmechanisms for tracing the productfrom plantation to end user.

It is an ironic fact, however, thatthe November RSPO meeting inSingapore is likely to take place underthe regional dry season’s annual pallof haze from forest and land fires inneighbouring Indonesia – haze that isat times thick enough to reducevisibility to 50 m, causing significantpollution problems and even forcingairports to cancel flights. And thechief cause of the fires? The illegalburning of forest on central Borneo’speaty soils, which is widely blamed onfarmers and logging companiesclearing land for oil palm plantations.So, while RSPO members talk, theforest burns... a practice totallyopposed by RSPO’s P&C. ‘Slash andburn’ is also officially banned byIndonesia’s government but in theremote central areas it seempowerless (or unwilling) to enforcethis.

RSPO’s remit at this stage of itslife is to promote best practices inpalm oil production rather than toenforce them. So we must hope itsexample can inspire governments tofulfil their obligations. If not, we facethe bleak future scenario where vastswathes of our planet’s mostbiodiverse habitats are irreversiblyreplaced, with consequent loss ofindigenous cultures and the

consignment of a few selectrepresentatives of this rich flora andfauna to botanical gardens and zoos.However, if RSPO is allowed toachieve its objectives, we can avoidthis and obtain all the benefits of asecure supply of a renewable resource.

Caroline Edser

RAWMATERIALS

Linear alkylbenzene

Russian oil firm plans to establishitself in petchems

Russian oil producer Tatneft aims tostrengthen its petrochemicalsbusiness by making a $3.2 bninvestment in a refining andpetrochemical complex inNizhnekamsk, Tatarstan. The complexwill be built in a 400 ha site locatednext to plants run byNizhenekamskneftekhim, a firmoperated by OAO Tataro-AmericanInvestments and Finance. Theproposed complex will be managed bya Tatneft affiliate, ZAO NizhnekamskOil Refinery. Construction will beundertaken in three phases. Phase 1,scheduled to be finished at the end of2008, will include a 7 M tonne/y oilrefinery. Phase II, which is expectedto begin in 2009, will include a 3.5 Mtonne/y fuel oil plant. Phase III, whichwill be constructed by 2010, willinclude plants for producing 39,000tonnes/y of benzene, 80,000 tonnes/yof linear alkylbenzene and a variety ofother petrochemical products. FosterWheeler and BNP Paribas have beendesignated as consultant andfinancial adviser, respectively, for theproject.

Chemical Week, 30 Aug 2006, (Website:http://www.chemweek.com)

Oleochemicals

Oxiteno starts expansion; P&G putsproject on hold

Oxiteno, a Sao Paolo-basedsubsidiary of Ultrapar, has startedconstruction work for its fatty alcoholsfacility at Camacari, Brazil, which hasa capacity of approximately 100,000

tonnes/y [Focus on Surfactants, Apr2005]. The facility, which will be builtfor $120 M, could also produce fattyalcohol co-products fatty acid andglycerine. It will start operating in 1H2007 and will use lauric vegetable oilas its main raw material. The fattyalcohols will be utilized inmanufacturing processes of powderand liquid laundry detergents, andfabric softeners. Oxiteno intends toset aside 30% of the facility’s outputfor captive use, with the rest to bemarketed on the merchant market inSouth America and other countries.The company expects to increase itssales by $80 M with the help of thefacility. Brazil’s consumption of fattyalcohols stands at around 90% of the50,000 tonnes/y imported by SouthAmerica. The fatty alcohols facility ispart of Oxiteno’s $320 M expansionproject at Camacari. Meanwhile, theplan of Procter & Gamble Chemicalsfor its FPG Oleochemicals jv for theconstruction of a 120,000 tonnes/yfatty acids plant at Kuantan, Malaysia[ibid, May 2005] has been put on hold.

Chemical Week, 30 Aug 2006, (Website:http://www.chemweek.com)

Taiko oleochemical project on streamin Jiangsu

Taiko Palm-Oleo (Zhangjiagang) CoLtd has successfully commissioned a150,000 tonne/y integrated facility forfatty acids, glycerine and soap basesin Jiangsu province, China. The $70M project is a joint venture betweentwo Malaysian firms, Kuala LumpurKepong Bhd (KLK) and TaikoMarketing Sdn Bhd [Focus onSurfactants, Mar 2005]. KLK isplanning further oleochemicalinvestments at YangzijiangInternational Chemical Industry Parkin the Zhiajiagang Bonded Area.Products will be used in the surfactant,polymer, coatings, pharmaceutical andagrochemical sectors.

China Chemical Reporter, 16 Jul 2006, 17 (20), 12

Major supermarkets sign up to takeaction on palm oil

On 2 Aug 2006 Morrisons was thelast of the major supermarkets in theUK to announce its intention to joininternational efforts to tackle theproblems caused by palm oil,following a campaign to highlight the

2 OCTOBER 2006

F O C U S O N S U R F A C T A N T S