Oleochemicals Industries in Indonesia
Abun Lie – 19 Nov 2019
Triglycerides
Outlines
Raw Materials andProducts
Industries
Application
Oleochemicals in2020
Q &A
Raw Materials
Elaeis guineensisNative to West Africa
Kernel 0.9-1.5cmFresh Fruit Bunch(FFB) Produce fruits after 30months
Productive for 20-30years
Yield 5 Ton CPO + 0.5 Ton PKO per ha/year
1 fruit contains 30-35%oil
Fruit is harvested every 10days
CO2
H2OTriglycerides
Food
Feed
Chemicals
Biofuel
6
Carbon Description CPO CPKOC6 Caproic 0.3C8 Caprylic 3.9C10 Capric 4.0C12 Lauric 0.3 49.6C14/0 Myristic 1.1 16.0C16/0 Palmitic 45.1 8.0C16/1 Palmitoleic 0.1C18/0 Stearic 4.7 2.4C18/1 Oleic 38.8 13.7C18/2 Linoleic 9.4 2.0C18/3 Linolenic 0.3C20/0 Arachidic 0.2 0.1
Tri glycerides
FATTY ACID
GLYCERIN
FATTYALCOHOL
METHYL ESTER
Hydrolysis Trans-esterification
Hydrogenation Hydrogenation OLEO-CHEMICALS
Esterification
GLYCERIN+ +
Physical properties
Chemical properties
R - XAlkyl group Functional group
Viscosity Solid point Density Pour point
Oleochemicals properties
CH3-
CH3-CH2- -COOH
-OH
-COOCH3
-COONR2
Reactivity Acidity/Basicity Oxidation states Flash point
CH3-(CH2)n
R’-CH=CH-
Characteristics of Oleochemicals
n Carbon Chain length à type of oil, availability, price
Ø Short Chain: C8, C10, C8C10
Ø Mid Cuts: C12, C14, C12C14, C12C16
Ø Long Chain: C16, C18, C16C18
n Degree of saturation / unsaturation
Ø Full hydrogenation
Ø Partial hydrogenation
Ø No hydrogenation or sometime even enrichment of unsaturation
Oleochemicals Industries in Indonesia
Oleochemicals Industries inIndonesiaCompanies Acid Alcohol M. EsterCisadane RayaChemicalsSumi AsihEcogreen OleochemicalsSOCIMasMusim MasWilmarPermata HijauUnilever Oleochemicals Ind.Energi Sejahtera MasApical KaoDomas Agrointi Prima
Application of Oleochemicals
Source: The Changing World of Oleochemicals, Wolfgang Rupilius and SalmiahAhmad
Fatty A c i d s Appl i ca t ions
%
%
S o a p & d e t e r g e n t
Intermediate 1 8 %
Plastic 14%
C o a t i n g & r e s i n 6 %
L u b r i c a n t & g r e a s e 6 %
Paper 6 %
Rubber 6 %
P e r s o n a l c a r e 5 %
F o o d & f e e d 2
Candle 2
Various 5 %
12
Source: Internal
Fat t y A lcohol Appl icat ions
9 %
4 %
3 %
3 %
2 %
2 %
4 %
7 %
7 %
1 1 %
4 8 %D e t e r g e n t & C l e a n e r
A n tio x id a n t
F l a v o r & F r a g r a n c e
P e r s o n a l C a r e
P e tro le u m
F o o d
A g ric u ltu re
F a b r i c S o f t e n e r
P o l y m e r E m u l s i o nT e x tile
O th e rs
13
Source: Internal
F a t t y A l c oho l D e r i v a t i v e s
1 9 .5 %
1 . 1 %
1 .3 %
2 .5 %
3 .1 %
1 4 .8 %
2 2 .0 %
3 5 .7 %
O th e rs
A P G
A m i n e o x i d e
M e t h a c r y l a t e e s t e r s
Q u a t e r n a r y a m m o n i u m
A S
A E
A E S
14
Fatty Alcohols à Surfactants
15
FATTY ALCOHOL
ALCOHOL ETHO-
XYLATES
ALCOHOL ETHOXY SULFATE
ALCOHOL SULFATE
Heavy Duty Powders / Tooth paste
Heavy DutyLiquids
Shampoo / DishwashingLiquid
Ethoxylation
Sulfation
Sulfation
2012 World Consumption of 5 MajorSurfactants (‘000 ton)
16
1,000
0
2,000
3,000
5,000
4,000
ABS +APE AE + AES +AS
APE / AS ABS /AES AE
17
G l y c e r i n e App l i c a t i ons
S o a p , c o s m e t i c , p h a r m . 3 7%
A l k y d r e s i n 1 3%
Food 1 2%
Polyurethanes 1 1%
Tobacco 9 %
Explosive 3 %
Others 1 5%
Source: The Changing World of Oleochemicals, Wolfgang Rupilius and SalmiahAhmad
Oleochemicals in 2020 and Beyond
Situation in >= 2020
n Raw Materials
Ø Availability: plant capacity, competition in usage (e.g. with Food)
Ø Price stability
Ø Flexibility: depends on plant configuration
Situation in >= 2020
n Market
Ø Price stability
Ø Natural growth
Ø New application
Ø Change in life style à consumption per capita
Ø Substitution or inter-changeability
n There are still rooms for growth due to
change in consumption behavior,
increase in income
Basic Raw Mat
Benzene
Linearalpha oleofins
Oil &Fats
Ethylene
Normal Paraffins
Surfactant
Linear Alkylbenzene
Sulfonates
Alpha Olefin
Sulfonates
Secondary Alkene
Sulfonates
FattyAmineOxides
Fatty Alkanol Amides
Alkyl Glyceryl Ether Sulfate
Alcohol Sulfates
Alcohol Ether
Sulfates
Alcohol Ethoxylates
Application
Heavy duty laundrypowdersLight duty liquiddish detergents Heavy duty laundry liquids Specialty Cleansers
Light duty liquid dishdetergents
Light hand soapsLight duty liquiddish detergents Shampoos
Light duty liquid dishdetergentsShampoos SpecialtyCleaners
Light duty liquiddish detergents Shampoos
Toiletsoaps Shampoos
ShampoosHeavy duty laundrypowders
Heavy duty laundry liquidsHeavy duty laundrypowdersSpecialty Cleansers
Light duty liquid dishdetergentsHeavy duty laundry liquids Heavy duty laundrypowders Shampoos
FattyAcids
Detergent RangeAlcohols
Ethylene Oxide
RawMat
LinearAlkylBenzene
VARI
OU
S RA
W M
ATER
IALS
AND
TY
PE O
FSU
RFAC
TANT
S
Situation in >= 2020
n Regulatory and “Sustainability”
Ø Tariff barrier
Ø Non tariff barrier
Ø Certification
Ø Social compliance
Ø Negative campaign
Ø Infrastructure: port, road, system
Ø National or local regulatory: perpajakan, perijinan, LH, SDM
n Is 6% of our land (of 190 Mio ha) or 0.08% of World land
n Contribution to Indonesia economy: 50 Mio MT x > USD 500/MT
= > 25 B USD/year
Q & A