What are Oleochemicals? Oleochemicals are chemicals derived from natural plant and animal fat sources, such as: o Palm oil o Palm kernel oil © Coconut oil © Tallow ° ° ° Sunflower seeds Rapeseed SoyRaw Materials Distribution of Fatty Acids in Triglycerides 9 mo ° wuss, Leo Naty aes Lote Carbon Chain c18 Material 8 10 12 14 16 18 20 22 0 1 2 coconut oil 8 7 48 17 9 10 2 7 1 palm kernel oil 4 5 50 15 7 18 2 #15 1 palm oil 2 42 56 5 41 10 rape oil (old) 2 38 7 51 1 15 15 rape oil (new) 4 909 2 3 1 60 20 sunflower (old) 6 93 4 28 61 sunflower (new) 4 93 1 4 84 5 soy oil 8 91 4 28 53 lard 1 31 65 2 13° 46 «614:0 16:0 16:1 18:0 18:1 18:2 18:3 Cocoa butter - 26 - 34 35 - - Corn - 13 - 3 31 52 1 Cottonseed - 27 - 2 18 51 tr Groundnut = 13 a 3 38 41 tr ms 6 = 3 16 72 2 - 6 - 3 17 14 60 - 10 - 2 78 7 a - 46 - 4 40 10 tr Palm olein = 40 ~ 4 43 11 tr Rape? - 3 - 1 16 14 10 Rape? - 4 - 2 56 26 10 Soybean - 11 - 4 22 53 8 Sunflower 7 6 7 5 20 60 tr Sunola® - 4 - 5 81 8 tr Nusun - 4 - 5 65 26 - Butter? 12 26 3 Lt 28 2 1 Lard 2 27 4 11 44 11 - Beef tallow 3 27 11 7 48 2 - Mutton tallow 6 27 2 32 31 2 - "High erucic (also 20: 1 6% and 22:1 55%). *Low erucic. ‘High oleic sunflower. ‘Also 4:0 (3%), 6:0 (2%), 8:0 (1%), 10:0 (3%) and 12: 0 (4%). tr, trace (<1%).Average Oil Yield 374 (thalyear) Oil ‘Soybean 35.19 ‘Sunflower 11.09 Rapeseed 1834 Ol Palm 36.90 Tatal 102.78" 42.27 10.47 12.45 4.50 219,18" ‘Secres: O4 Worl 2007 cay fe the T majo alsFatty Acid Stearic Oleic Erucic Capric Myristic Linoleic Caprylic Laurie Palmitic Linolenic Lignoceric | Arachjdonic C8 C10 C12 C14 hz > Petroleum ely (Ez) | Heating and cooking fuel Petrochemicals Starting material for plastics, gasoline additives [eating fuel a industrial solvents Liquified petroleum gas Carbon black [Petrochemicals Redisiates )>|Aviation gasoline, Motor gasoline Naphthas, Solvents Petrochemicals Kerosene Gas oil Petrochemicals Heavy furnace ol Diesel fuel ol Lubricating ofl Grease Heavy oils, Wax Cracking stock Petrachemicals Lubricating ol Fuel i Road oil, Asphalt Petroleum cokeOu auwounaron Gas] recor i RES) ¥ chuans sent BEFANG AND FRCTNTION (econo PRCCESEINGY fie) ® weet moet | See ea “— an oo Fro. FRESHFAUT aINCHES FROWOH PALS) o-FROCESSED LUO, ‘crcecaLCE FLO exo: FROCESSAD FALMKERREL OL (mmo CRUDE RAL KERUEL OF (BE CODA BUT EDUIRLENTS ug uo ACTON x5 conga puTeR suestutes eu FeuesS‘Versatility of Palm Oil & Palm Kernel Oil in Food and Non-Food Applications =|Oleochemical Production Methyl Esters Glycerine Fatty AcidsProduction op f Splitting + Refining i Processing | Main types of oleochemicals|Fatty Acid Cuts and Applications ] Applications Caprytic acid | Lubricant ester, cosmetic, PVC stabilizers, (c8) perfume, and fungicides Lubricant ester, surfactants, cosmetics. PVC stabilizers, and fungicides ‘Surfactant raw material, cosmetics, lauryl peroxides. and pharmaceuticals FROST @ SULLIVANEsterification ‘Light fraction Catalytic cracking Cmde bio oil ‘Middle fraction Steam reforming Heavy fraction Hydrodeoxy genation Emulstication | Chemical extractionOleochemicals Fatty Acids - Main Technologies + Splitting + Distillation + Fractionation + Crystallisation (Hydrophilisation) + Hydrogenation (partial or full) + EsterificationFirst Step: Vegetable oil will be hydrolyzed into Fatty acids and Glycerin c8-C10 pats Fatty C12-C18 Acid F: id Acid PKO. LH Hydrolysis |» Fattvacid | Acid’ = dist Crude Glycerin Concentration -———> Refine | WATER rele 99.7% USPOleochemicals Chemical Conversion of Triglycerides + Splitting ° oth OE ° © odin eee on i at eon KR RR Tat © on Bo RO” water . fatty acids TT + > glycerine + alcohol fatty acid estersSecond Step: Fatty acids are converted into methylester and hydrogenated into Fatty Alcohols METHANOL HYDROGEN + | Methy! | Fatty c12-C18 Ester Fatty acid Methylester Alcohol Fatty Alcohol Fatty Acid | esterification Hydrogenation distillation | WATER fe eet be et cos TedBasic Oleochemical Transformations Esterification / Ester Cleavage Reo WK RRR [cat] i ase 8 HELL Sto Transesterification © Ro AAR eee R-OH + 0 [cat] i RRs HydrogenationOleochemicals PCa aa Oleochemicals Cg ‘Acid s Peruri esg Perey Enea) Pere ae Cer) ead renaFatty Acids and Glycerin iz-luavar Veco) te) oiStorage Tanks for Products =e. PenaTota capacity: 95 kt/year of Oleochemical Products Chemical Carbon Chain Capacity Description Length (ton) Lauryl Alcohol Cyo-Cig 47.000 Cetosteary! Alcohol Cre-Cig 23.000 Cetyl Alcohol Cie 5.000 Stearyl Alcohol Cis 2.000 Capric-Caprylic Acid Co-Cip 7.000 Glycerin C3 11.000 Total 95.000Major Asian Oleochemical Producers 2,500,000 2,000,000 1,500,000 4,000,000 500,000 103.00" sonc0n "4.500 eo & £ £ < ra “ € < Fatty Alcohol and Fatty Acid production (MT) Bowe AMG Leseih Mi died astbeelbblacineedMethanol r + NaOH Catalyst ‘Transesterification| Feedstock Preparation Reaction Preparation tyeern 4 sin phase sss Biodiesel A ‘Acid - ‘Separation > Aid Acidfication & i FFA Separation| = Neutralization] Free | Fatty Acids} t tr Water oe pS ee Crude Glycerin (Optional)Value Chain of the Oleochemical Industry Neen een eT e G 50-100% «. - - , oo 3 Profit Margins are higher for Plantation companies due to high price of 2 FFE in 2008/09. z 3 2 g Profit Margins are lower for processing companies due to high raw = material cost, forcing processors to run below capacity in 2008/09. o / _ @ _ Se 3 <— 510% 10-18% bE 38% ‘A (8.15%) a z (10-15% @ <3% & — om en ermal Wee a ee Ce