OFI September/October 2021 by Quartz Business Media

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OILS & FATS INTERNATIONAL SEPT/OCT 2021 ▪ VOL 37 NO 7

SUSTAINABILITY The growth of IP palm

SPECIALITY FATS Bakery on the rise

TRANSPORT

Paraguay rising to the challenge Cover SeptOct 2.indd 1

15/09/2021 10:51:07

CONTENTS

OILS & FATS INTERNATIONAL

IN THIS ISSUE – SEPT/OCT 2021 Plant & Technology

FEATURES

Transport & Logistics

NEWS & EVENTS

Global news digest The latest projects, technology and processing news around the world

Rising to the challenge

Landlocked Paraguay is overcoming logistical obstacles to become an increasingly important soyabean exporter

Pressing matters Suppliers of rendering equipment are focusing on energy efficient plants which meet current safety standards, with the screw press being a central element in the rendering process

Speciality Fats Comment

2 Photo: Adobe Stock

Photo: Adobe Stock

Sustainability

The growth of IP palm Identity Preserved (IP) is the most stringent supply chain model for sustainable palm oil as it provides complete traceability back to the plantation

Photo: Pixabay

Photo: Adobe Stock

Rendering

Vietnam: bakery on the rise

Vietnam’s bakery, cereal products and confectionery markets are expected to grow, with imported palm oil used as an ingredient in these sectors

Climate alarm

News

Hurricane Ida disrupts US Gulf logistics and exports

Biofuel News

EU extends tariffs on US biodiesel for five years

Renewable News

Eni, BASF to make biopropanol from glycerine

Instrumentation

Transport News

Global round-up of news OFI reports on some of the latest instrumentation developments worldwide

US soyabean exporters hit by container squeeze

Biotech News

Bayer to halt residential sales of Roundup in USA

Diary of Events

International events listing

Statistics

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Contents Sept.Oct.indd 1

World statistical data

OFI – SEPTEMBER/OCTOBER 2021

15/09/2021 10:53:49

EDITOR'S COMMENT

OILS & FATS INTERNATIONAL

VOL 37 NO 7 SEPTEMBER/ OCTOBER 2021

EDITORIAL: Editor: Serena Lim serenalim@quartzltd.com +44 (0)1737 855066 Assistant Editor: Gill Langham gilllangham@quartzltd.com +44 (0)1737 855157 SALES: Sales Manager: Mark Winthrop-Wallace markww@quartzltd.com +44 (0)1737 855114 Sales Consultant: Anita Revis anitarevis@quartzltd.com +44 (0)1737 855068 PRODUCTION: Production Editor: Carol Baird carolbaird@quartzltd.com CORPORATE: Managing Director: Tony Crinion tonycrinion@quartzltd.com +44 (0)1737 855164 SUBSCRIPTIONS: Elizabeth Barford subscriptions@quartzltd.com +44 (0)1737 855028 Subscriptions, Quartz House, 20 Clarendon Road, Redhill, Surrey RH1 1QX, UK © 2021, Quartz Business Media ISSN 0267-8853 WWW.OFIMAGAZINE.COM

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2 OFI – SEPTEMBER/OCTOBER 2021

Comment Sept.Oct.indd 1

Climate alarm

With extreme weather events striking us in the space of just a few months – from Hurricane Ida hitting the US Gulf to wildfires raging across southern Europe – the effects of climate change feel very real and are already directly impacting our industry. Hurricane Ida damaged several US agribusiness facilities and is expected to affect US grain and oilseed exports, transport times and costs (see p4).

In South America, the continent’s second largest river – the Paraná – has been drying up, reaching –0.28m at the Port of Rosario on 9 August, the lowest level recorded since 1944. Cities along the river have been running dangerously low on water, vessels have been loading a quarter less cargo than normal for fear of getting stuck and the cost of moving products has risen. The Paraná carries more than 80% of Argentina’s agricultural exports to the Atlantic Ocean, including almost all of its soyabeans. Meanwhile, a new study authored by German climatologist Niklas Boers and published in Nature warns that weakening ocean currents in the Atlantic will result in longer, hotter and drier summers across the Mediterranean basin, with a profound impact on olive growing and olive oil production, particularly in Spain and Italy – the world’s two largest olive oil producers. Climate sceptics would contend that forest fires, hurricanes, droughts, heat waves and storms have always occurred throughout human history. However, as National Geographic explains, while climate change has not been proven to directly cause individual extreme environmental events, it has been shown to make these more destructive and more likely to occur frequently. A broad range of evidence shows that our world has warmed by 10C above pre-industrial levels, due to the burning of fossil fuels increasing greenhouse gas (GHG) emissions, which trap heat within the Earth’s atmosphere. Warmer air holds more water vapour and when this turns to rain, it tends to fall in heavy downpours, potentially leading to more floods and problems like landslides. Higher temperatures also lead to increased evaporation and surface drying, with a new report estimating that Brazil has lost almost a fifth of its surface fresh water in the past decade (see p4). Extreme heat can also lead to more frequent, severe and prolonged heat waves and droughts and can make forest fires worse. The effects of climate change go well beyond oilseed crops and agriculture – it encompasses the world’s freshwater supplies, land degradation, rising sea levels, food security, livelihoods, health and widespread migration, with all the human and economic costs that come with it. We are seeing the effects of 10C of change and the target for a climate-safe world is to keep global warming to below 1.50C. However, on current trends, our GHG emissions will heat the planet’s surface by another 3-40C by 2100. Is it already too late? Some observers are describing the 26th UN Climate Change Conference of the Parties (COP26) due to take place in November in Glasgow as the last chance to make necessary changes. The most recent hurricane and wild fires are the alarms bells sounding yet again for humanity to fundamentally change how we produce, distribute and consume almost everything, starting with energy, as the Intergovernmental Panel on Climate Change warns we must do. Serena Lim serenalim@quartzltd.com www.ofimagazine.com

15/09/2021 10:56:47

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NEWS IN BRIEF INDIA: The government has reduced the import tax on soya and sunflower oils to 7.5% from 15% in a bid to contain surging edible oil prices, Reuters reported on 20 August. The tax cut was introduced for six weeks and would last until 30 September but could be extended if prices remained high. Following the move, soya oil and sunflower oil imports would be subject to an effective tax rate of 30.25%. India fulfilled more than two-thirds of its edible oil demand through imports and had been struggling to contain a rally in local oil prices for the last few months, Reuters wrote. It had already cut the import tax on crude palm oil on 29 June.

Hurricane Ida disrupts US Gulf logistics and exports Global agribusiness and food ingredient companies were assessing damage to facilities after Hurricane Ida disrupted grain and oilseed exports from the US Gulf Coast, which typically handles 60% of US exports, according to a World Grain report on 2 September. Grain facilities in the region were without power and some were inundated with floodwaters after Ida made landfall on 29 August in Port Fourchon, Louisiana, just south of New Orleans. US agribusiness firm Cargill said its terminals in Reserve and Westwego, Louisiana had both sustained damage. Farm cooperative CHS Inc's Myrtle Grove terminal in Louisiana also sustained damage, with a two-to-four week estimate for power being restored, World Grain reported. In preparation for Hurricane Ida’s arrival, Archer-Daniels Midland Company (ADM) had shut down four grain elevators and port operations, according to ADM spokesperson Jackie Anderson.

Daiana Endruweit, global media relations manager at Bunge, told AgriCensus that there had been no significant structural damage to the company’s facilities but that "they are not operating as there is no power". Companies that had sustained damage and were facing a lengthy wait for restored power were looking at other export outlets, a commodities trader was quoted by World Grain as saying, with transport times to destinations and transportation costs expected to increase as a result. The US Gulf Coast is a major fatty alcohol production and import site, as well as a petroleum centre. More than 95% of the Gulf of Mexico’s oil production facilities had been shut down, with a significant impact on the US energy supply, according to an American News Times report. Six petroleum refineries in the New Orleans area – including PBF, Shell, Marathon and two Valero refineries had been affected.

Peels launches CBD oil made from orange peels cyclic terpene assembly (CTA) to produce its CBD oil from orange peel, according to its website. The process combined terpenes from orange peel with olivetol, a naturally occurring organic compound, under heat and pressure. After minimal further processing, the result was a crystalline CBD, the firm said. Organic citrus flavour and organic medium-chain triglycerides from coconut oil were added to the company’s CBD oil to improve its taste and aroma.

Photo: Adobe Stock

US cannabidiol (CBD) company Peels has launched a CBD oil made from orange peels, PR Newswire reported on 3 August. Traditionally, CBD was extracted from the hemp plant but, on its website, Peels said it could reconstruct the same molecular structure from the terpenes naturally present in citrus peels to create a pure, bio-identical CBD molecule. The company said its CBD oil had the same holistic effects as cannabis and hemp-derived CBD, but was

Peels company has used orange peels to create CBD oil

free of tetrahydrocannabinol (THC) the psychoactive con-

stituent of cannabis. Peels uses a process called

Brazil loses water supply from climate change, deforestation A new study has estimated that Brazil lost almost a fifth of its surface fresh water supply between 1991 and 2020 due to climate change and deforestation, AgriCensus reported on 23 August. The study from the MapBiomas project showed that Brazil lost up to 15.7% of its fresh water resources during the period. Low water supplies were a pressing issue in Brazil last year with several crops suffering major losses due to droughts. Low water levels also affected the transporta4 OFI – SEPTEMBER/OCTOBER 2021

General News Sept.Oct.indd 2

tion of commodities through the Paraná River waterway, AgriCensus wrote. The project mapped satellite images from 1985 to 2020 and showed that between 1991 and 2020, the country’s freshwater surface dropped by 3.1M ha – equivalent to about the area of Belgium – to 16.6M ha. The research team believed that the main reasons behind the country’s water surface decline were climate change, with shorter and more concentrated periods of

rain, and deforestation, AgriCensus wrote. The deforestation of the Amazon rainforest had reduced moisture through the evapotranspiration of trees, according to project coordinator Tasso Azevedo. Mato Grosso do Sul and Mato Grosso states, where agriculture and livestock production had significantly increased over the last few decades, had lost the most freshwater surface areas since 1985, with 781,690 and 527,687 ha lost respectively, according to the study. www.ofimagazine.com

13/09/2021 13:33:06

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NEWS

Canada ramp ups WTO case against China The Canadian government has succeeded in its second approach to the World Trade Organization (WTO) to set up a panel to look into China’s restrictions on its canola seed exports, Yahoo News reported on 27 July from a South China Morning Post article. China suspended imports of canola from Richardson International and Viterra in March 2019, while also enhancing inspections on shipments from other Canadian companies, according to the report. Canada’s first attempt to establish a panel had been blocked by China at the

end of June, but Beijing could not gain the consensus to stop the move at a meeting of the WTO Dispute Settlement Body on 26 July in Geneva, Yahoo News wrote. The Canola Council of Canada issued a statement saying it supported the government’s action. “The canola industry had hoped that the bilateral consultations between Canada and China would lead to a resolution, restoring full trade in canola seed and ensuring all Canadian exporters were treated equally by the Chinese administration," it

said. “In the absence of progress, this is the next step to resolve the dispute and preserve rules-based, predictable trade with China. According to the council, Canada exported 11.8M tonnes of canola seeds to all overseas markets in 2020, with China the largest export market at 2.6M tonnes, just ahead of the European Union and Japan. The industry body claimed that the value of Canada’s canola seed exports to China had fallen from US$2.27bn in 2018 to US$650M in 2019 and US$1.13bn in 2020.

Global agribusiness giant Cargill announced on 12 August that it has partnered with vertical farm company AeroFarms in a research project aimed at improving cocoa bean yields. The partnership would also explore climate-resilient farming practices. “Environmental challenges and growing demand for cocoa products are placing increased pressure on the global cocoa supply chain,” Cargill Cocoa Europe managing director Niels Boetje said. “Through partnerships with research institutes, universities and innovative companies like AeroFarms, we are collaborating to bring greater productivity and resiliency to traditional

IN BRIEF BLACK SEA: Sunflower production in the region could rise by 6M tonnes due to improved weather conditions, AgriCensus reported on 17 August. Trade sources expected this year’s sunflower harvest to total more than 41M-42M tonnes with more than 32M tonnes from Ukraine and Russia. In Ukraine, analysts expected the current sunflower harvest to increase to between 16.5M-17.5M tonnes due to a rise in planted area and an unexpected yield improvement. 6 OFI – SEPTEMBER/OCTOBER 2021

General News Sept.Oct.indd 3

Photo: Pixabay

Cargill project aims to improve cocoa bean yields

Cargill says growing demand and environmental challenges are placing increased pressure on the global cocoa supply chain

cocoa farming operations.” As part of the AeroFarms project, Cargill said they would be experimenting with different indoor growing technologies

(including aeroponics and hydroponics), light, carbon dioxide, irrigation, nutrition, plant space and pruning to identify the optimal conditions

for cocoa tree growth. The research would target factors such as faster tree growth and greater yields, accelerated development of varieties with enhanced pest and disease resistance, and unlocking the cocoa bean’s full flavour and colour potential, the company said. Cargill said initial exploratory work had begun at AeroFarms’ headquarters in New Jersey and would soon expand to its research & development indoor vertical farm in Abu Dhabi, UAE, which was due to open early next year. AeroFarms said its indoor vertical farming technology used up to 95% less water compared with field farming.

Chinese soya import and demand to fall Forecasts for China's soyabean demand and imports have been reduced, AgriCensus reported on 12 August from China’s Agriculture Supply and Demand Estimates (Casde). The reduced forecasts were due to poor crush margins constraining buying interests and a drop in soya meal usage in feed, the report said. China’s soyabean imports for the 2020/21 marketing year were expected to reach 98.6M tonnes, down by 1.84M tonnes from the previous month’s 100.44M tonnes estimate. “The main reason is that crush margins have been decreasing since July. Crush volumes also dropped, while the imported soyabean inventory has increased to the highest level this year,” the Casde report said. “Meanwhile, China’s importers postponed their purchases on an expectation that new crop

prices would fall after the US harvest,” it added. Soyabean consumption was set to fall to 113.26M tonnes and crushing demand was lowered by 3M tonnes to 95M tonnes. “Profits for pig breeders have fallen significantly since March this year, and the usage ratio of soya meal in feedstuff also declined,” Casde said. Meanwhile, China’s Ministry of Agriculture and Rural Affairs cut its edible oil output estimate for 2020/21 to 28.51M tonnes, down by 520,000 tonnes from the previous forecast, as production of sesame had been impacted by July’s flooding in Henan province, AgriCensus wrote. For the new marketing year, China maintained its 2021/22 forecasts for soya output and imports at 18.65M tonnes and 102M tonnes, respectively. www.ofimagazine.com

13/09/2021 13:33:16

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NEWS EU: The region's oilseed harvest is forecast to reach 30.6M tonnes for 2022 due to expectations of bumper soyabean and sunflowerseed crops, according to EU Commission estimates reported by the Union for the Promotion of Oil and Protein Plants (UFOP) on 4 August. The figure would represent an increase of just under 11% over the previous year. Exceptional yields meant the projected increase in sunflowerseed was particularly sharp, with 10.8M tonnes of production forecast. Sunflowerseed was the second most important oilseed crop in the EU27 based on quantity, the report said. Rapeseed, which traditionally accounted for the largest share in EU oilseed output, was also set for a larger harvest due to a 3% expansion in area. The total EU rapeseed harvest in 2021 could amount to 16.9M tonnes, which would be a 4% yearon-year increase, the report said. Soyabeans were the third most important EU oilseed crop. Based on a 3% expansion in planted area and an 8% increase in yield, the EU Commission estimated that the EU soyabean harvest could reach 2.9M tonnes. This would be an 11% rise year-on-year and the largest harvest ever in the EU27.

Unilever warning of price rise for consumer products Consumer goods giant Unilever has warned that the rising cost of edible oils and other commodities would lead to a price increase for its food and cleaning products, according to a report by The Guardian newspaper on 23 July. The maker of household brands including Dove shampoo and Hellmann’s mayonnaise said on 22 July that the surge in the price of commodities such as palm and soyabean oils, as well as higher transportation and packaging costs, was affecting its profitability. “Our first reflex is to look for savings in our own business to offset these costs, but these are of a magnitude that will require us to continue

to make some price increases,” Unilever’s chief executive Alan Jope was quoted as saying. Palm oil is used in the production of soaps and shampoos, while soyabean oil is used to make dressings, including Hellmann’s mayonnaise. Shoppers were likely to see low single-digit price increases when current pricing deals with retailers expired, Jope said. Unilever’s underlying operating profit margin in the first six months of 2021 was one percentage point lower than last year at 18.8%, according to The Guardian report, with the company expecting profit margins to be flat over the full year, having previously forecast a small increase.

New fat stays solid at room temperature

Photo: Adobe Stock

IN BRIEF

Developers of Sterolife say the solid fat can be used in food products such as spreads and bakery products

A newly developed unsaturated fat that stays solid at room temperature could eventually replace the solid saturated fats commonly used by food companies, such as palm oil or coconut oil, Olive Oil Times reported on 29 July.

Developed by researchers in Belgium, 'Sterolife' was “an odourless and colourless fat” according to a press release from KU Leuven University. Food companies could use Sterolife as a solid fat in food products, reducing the

saturated fat content while maintaining the properties of the product. “We believe that Sterolife will become a game-changer in the food industry and in the search for healthy alternatives to existing high-fat products,” Eva Daels, a scientist at the Food & Lipids research group was quoted as saying. The researchers at KU Leuven said the next step was to develop the product with the aim of bringing it to the market. The new research would focus initially on existing products promoted as cholesterol-lowering which still contain a significant amount of saturated fat, Daels said. “Initially, this will involve margarines, spreads and baking products such as biscuits, muffins and cereal bars.”

Sustainability initiative to help Indonesian smallholders Three leading palm oil companies have launched a sustainability initiative to help independent smallholders in Indonesia, the Malaysian Palm Oil Council (MPOC) announced on 4 August. Downstream producer Kao Corporation, exporter and trader Apical Group and upstream producer Asian Agri had joined forces to launch the programme aimed at helping smallholders improve yields, acquire international certification and im8 OFI – SEPTEMBER/OCTOBER 2021

General News Sept.Oct.indd 4

prove profitability by selling certified palm oil, MPOC said. The ‘Smallholder Inclusion for better Livelihood & Empowerment’ programme (SMILE) recognised that smallholders were seeking to increase their yield and productivity but might lack the necessary knowledge or technical expertise to do so. The aim of the 11-year programme was to continue to build a more sustainable palm oil value chain by working with independent smallholders, who contributed

more than 28% to Indonesia's palm oil market, the MPOC said. SMILE would involve a team of experts working with 5,000 independent smallholders that managed approximately 18,000ha of plantations in the provinces of North Sumatra, Riau and Jambi. Global palm oil production totalled 75M tonnes/year and was expected to increase to 111.3M tonnes by 2025, according to the report. www.ofimagazine.com

13/09/2021 13:33:18

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BIOFUEL NEWS SOUTH KOREA: Korean chemical firm LG Chem announced on 2 September that it had signed an agreement with Dansuk Industrial to build a hydrotreated vegetable oil (HVO) plant at Dansuk’s headquarters in Siheung city, Gyeonggi province, with a completed construction date of 2024. HVO production would allow Dansuk to expand its first-generation biodiesel business to supply sustainable jet fuel, while LG Chem would be able to supply raw materials used to produce bio-SAP (high absorbent resin), ABS (high value synthetic resin) and PVC (polyvinyl chloride), LG said. BRAZIL: Global technology firm ICM International announced on 3 August that it had agreed to design a bio-refinery in Mato Grosso do Sul state for energy company Neomille. The plant in Maracaju would produce over 500M litres/year of anhydrous ethanol or 540M/ year of hydrous ethanol, as well as 23M tonnes/year of corn oil. The new plant was due to become operational in the third quarter of 2023. INDONESIA: Plans to increase biodiesel blending from 30% palm oil to 40% (B40) could be delayed due to high palm oil prices, a senior government official told Reuters. Authorities had planned to increase the mix to 40% in July but the timetable was now unclear, Reuters wrote on 26 August.

EU extends tariffs on US biodiesel for five years The European Union (EU) has retained its tariffs on US biodiesel for a further five years after concluding that removing them would lead to a surge in imports at artificially low prices, Reuters reported. Dating back to 2009, the tariffs would be extended until 2026, the EU official journal said on 2 August. In its review of the case, the European Commission (EC) concluded that US producers could increase their capacity and also divert some of their exports from less profitable markets to the EU if the tariffs were removed, Reuters wrote.

US producers, who were benefiting from subsidies including tax credits, grants and loan guarantees, were already selling to third countries at prices below those in the USA, the report said. The anti-dumping duties ranged from zero to €198 (US$235)/tonne, and duties related to subsidies from €211.2 to €237.0/tonne and were not cumulative, with the higher rate of the two duties applied. The initial case was brought by the European Biodiesel Board on behalf of EU producers such as France’s Saipol and Germany’s Verbio, according to the Reuters report.

Steep rise in renewable diesel capacity The US Energy Information Administration (EIA) has forecast a sharp rise in the country’s renewable diesel production capacity by 2024, Biodiesel magazine reported on 22 July. In its This Week in Petroleum report, the EIA said US renewable diesel production would reach 330,000 barrels/day by 2024, up from 38,000 barrels/day in 2020, Biodiesel wrote. The expansion was due to growing targets for state and federal renewable fuel programmes and production incentives, the EIA said. Much of the increase would come from retrofitting idle petroleum refineries, such as Marathon Petroleum’s and Phillips 66’s plants in California. Most current renewable diesel capacity was located on the Gulf Coast near existing oil refineries. Looking ahead, the EIA said the majority of new US renewable diesel capacity would be built on the West Coast to serve nearby low carbon fuel markets, while it was likely the remainder would be built on the Gulf Coast to capitalise on existing refinery infrastructure. The EIA forecast that renewable diesel capacity would account for 5% of total US diesel production in 2024. Meanwhile, US energy giants Exxon Mobil and Chevron are looking into how to process

Photo: Adobe Stock

IN BRIEF

Most current renewable diesel capacity in the USA is located near existing petroleum refineries

bio-based feedstocks like vegetable oils and partially processed biofuels with petroleum distillates to make renewable diesel, gasoline and aviation fuel at existing facilities, Reuters reported on 12 August. Chevron was looking into how to run bio-feedstocks through its fluid catalytic crackers with a goal of co-processing bio-feedstocks by the end of 2021, the report said.

New joint ventures to produce renewable fuel feedstocks US energy firm Chevron and agribusiness giant Bunge announced on 2 September that they had formed a 50/50 joint venture to create renewable fuel feedstocks. Bunge would contribute its soyabean processing facilities in Destrehan, Louisiana, and Cairo, Illinois, and Chevron around US$600M in cash to the venture. The companies expected to approximately double the combined capacity of 10 OFI – SEPTEMBER/OCTOBER 2021

Biofuel news Sept.Oct.indd 2

the facilities from 7,000 tonnes/day of soyabean by the end of 2024, they said. Bunge would operate the facilities, while Chevron would have offtake rights to use the soyabean oil as renewable feedstock to produce low carbon diesel and jet fuel. On 19 August, US refiner Marathon Petroleum Corporation and agribusiness giant Archer Daniels Midland Co (ADM) also announced that they had formed a joint

venture to produce soyabean oil to supply demand for renewable diesel. The venture would own and operate ADM’s soya processing complex in Spiritwood, North Dakota. Expected to begin production in 2023, the complex would produce around 272,155 tonnes/year of refined soyabean oil – enough feedstock for around 283M litres/year of renewable diesel – and supply MPC exclusively. www.ofimagazine.com

15/09/2021 10:58:57

RENEWABLE NEWS

Eni, BASF to make bio-propanol from glycerine Italian oil and gas company Eni has partnered with German chemical and biotech giant BASF to produce bio-propanol from glycerine, the companies announced on 29 July. The aim of the joint R&D project was to produce advanced bio-propanol from glycerine, a by-product of biodiesel production, the companies said. Using a catalytic hydro-treatment process to convert the glycerine, the new technology produced bio-propanol with a high yield and purity while minimising

BRAZIL: Swiss speciality chemicals firm Clariant said on 23 August that it had taken full ownership of Brazilian personal care firm Beraca. Clariant, which has held a 30% stake in the company since 2015, agreed to acquire the remaining 70% from the founding Sabará family. The acquisition is subject to regulatory approvals and is expected to close by the end of the year. Beraca manufactures ingredients for the personal care sector including botanicals, natural vegetable oils and butters sustainably sourced from the Amazon rainforest and other Brazilian biomes. THAILAND: NatureWorks announced on 9 August that it had obtained final authorisation from its parent companies – Cargill and Thai petrochemical firm PTT Global Chemical – to build a polylactic acid (PLA) biopolymer manufacturing complex at the Nakhon Sawan Biocomplex in Nakhon Sawan province. NatureWorks said it would invest more than US$600M to construct the complex, which would include production sites for lactic acid, lactide, and polymer. Construction would begin in second quarter 2022, with an expected opening in 2024. The facility would have 75,000 tonnes/year of biopolymer capacity. 12 OFI – SEPTEMBER/OCTOBER 2021

Renewable news Sept.Oct.indd 2

the biodiesel industry with every tonne of biodiesel producing approximately 10% glycerine, according to the report. Global glycerine production increased from 200,000 tonnes/year in 2003 to approximately 5M tonnes/year in 2020 due to increasing biodiesel production, the companies said. Glycerine is classified as an advanced bio-feedstock due to it being a vegetable residue, according to the European RED II directive (Renewable Energy Directive, Annex IX part A).

CJ Cheiljedang producing PHA plastic South Korean conglomerate CJ Cheiljedang has started the mass production of polyhydroxyalkanoates (PHA) biodegradable plastic, ABC News reported on 24 July. The firm planned to build a 5,000 tonne PHA manufacturing line in Indonesia by the end of this year. PHA could decompose in the ocean and soil in decades compared to more than 500 years with petroleum-based plastics, said SungYeon Hwang, head of the Bio-based Chemistry Research Center at the Korea Research Institute of Chemical Technology. PHA is made by engineering microorganisms and selecting the strongest strains, which are grown in bioreactors and fed with sugar made from feedstocks. Following a

Photo: Adobe Stock

IN BRIEF

by-products, according to the statement. Propanol obtained via this method could be added as a drop-in bio-fuel component to gasoline, the companies said. “This collaboration … is consistent with Eni’s strategy for the development of “advanced generation” biofuels supply chains from feedstocks that do not compete with food supply chains,” Eni’s head of research & technological innovation Luisa Lavagnini said. More than half of the world’s glycerine production originates as a by-product of

PHA can decompose in oceans and soil in decades compared with more than 500 years for petroleum-based plastics

fermentation period, the material is refined and the PHA dehydrated and aggregated before being made into long strands of liquid plastic, which are later dried into solid bio-

degradable plastic materials, according to ABC News. Other PHA producers were US company Danimer and Japanese firm Kaneka, the report said.

Richardson acquires Control Chemical Corp Leading Canadian agribusiness Richardson International announced on 10 August that it had acquired vegetable oil-based drilling fluids manufacturer Control Chemical Corporation. Previously a minority shareholder in Control Chemical, Richardson has been supplying raw ingredients for its products for over 30 years. Control Chemical Corporation retiring principal John MacPhail said Richardson had been its largest supplier of crude canola oil. “With petroleum oil prices increasing, we are in a unique position to reach new and more expansive markets for environmentally-safe downhole, torque-reducing lubricants.” Control Chemical manufactures a full range of proprietary vegetable oil lubricants and drilling

fluids – some marketed under the Matex brand name – from its facility in Calgary, Alberta. The company has a network of distribution partners in North America, South America, Australia, Africa, South East Asia, Mongolia, Scandinavia, the United Kingdom, Turkey and Russia. Richardson said its oilseed crushing plant in Lethbridge, Alberta, would continue to supply crude canola oil for Control Chemical products. Richardson is a leading handler and merchandiser of all major Canadian-grown grains and oilseeds and a vertically-integrated processor and manufacturer of oats and canola-based products. It produces a wide variety of food products and ingredients for the retail, food service and industrial markets. www.ofimagazine.com

13/09/2021 13:42:24

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OFI – SEPTEMBER/OCTOBER 2021

TRANSPORT NEWS USA: Bulk liquid storage and handler International-Matex Tank Terminals LLC (IMTT) announced on 25 August that it would nearly double capacity at its Geismar, Louisiana marine terminal by building six new storage tanks, two pipelines and related dock and loading infrastructure to handle and store biodiesel, renewable diesel and feedstocks. The investment would support Renewable Energy Group (REG)’s nearby biorefinery expansion, set for completion in 2023. “With this project, IMTT expects to be connected via pipeline to nearly one-third of the nation’s renewable diesel production capacity (currently under construction) as of 2023,” IMTT said. UKRAINE: Global agribusiness giant Cargill has increased its stake to 51% in its Ukrainian grain terminal joint venture Neptune in the port of Pivdenny in the Black Sea, World Grain reported on 20 July. The 5M tonnes/year terminal could handle various types of oilseeds, corn, barley cereals and wheat. RUSSIA: Leading Russian transport and logistics firm Delo Group has opened a reconstructed deep water grain terminal in Novorossiysk port, World Grain reported on 21 July. Delo said it had invested some US$68M in the KSK Grain Terminal, which could now receive vessels up to 100,000dwt, increasing its capacity to 7M tonnes/year. The KSK terminal now ranked number two in terms of trans-shipment volumes in Russia. AUSTRALIA: GrainCorp is planning to increase grain storage capacity at several sites by 1M tonnes in anticipation of a larger 2021/22 harvest, World Grain reported on 2 August. 14 OFI – SEPTEMBER/OCTOBER 2021

Transport news Sept.Oct.indd 2

US soyabean exporters hit by container squeeze A global shipping container squeeze is affecting US soyabean exports, Freight Waves reported on 25 July. While soyabeans and other US commodities were experiencing stronger export volumes this year, the global shipping container squeeze was affecting domestic agriculture exports, Soybean Transportation Coalition executive director Mike Steenhoek told Freight Waves. As of 15 July, the cost to move a loaded container from China to the US West Coast had a spot rate of US$6,542, according to the Freightos Baltic Index, while the cost to move loaded containers from the US West Coast back to China was US$1,112. “The container situation has affected us, though only about 7% to 8% of soyabean exports occur

by container,” Steenhoek said. “It is certainly having an impact on bulk exports. Those soyabean exporters who use containers ... we have a supply chain that’s overly subscribed. It really isn’t just felt with containers, but also things like available slots on the vessels themselves.” The US Department of Agriculture’s quarterly trade forecast projected US farm exports in fiscal year 2021 to reach US$164bn, the highest total on record, Freight Waves wrote. China was projected to be the top agricultural export customer at a record US$35bn, due to its demand for soyabeans and corn. Steenhoek said he expected supply chain issues to continue in the foreseeable future, including the squeeze on containers and rail availability, and a nationwide truck driver shortage.

Ship loads on Paraná River may fall 40% Bulk carriers in Argentina may be forced to reduce loads by 40% by the end of September or early October due to low water levels on the Paraná River, the country’s key export waterway, the general manager of the Chamber of Port and Maritime Activity says. If river conditions continued to deteriorate, Handymax ships that normally carried 35,000-40,000 tonnes would load around 17,000 tonnes less, Guillermo Wade was quoted as saying in a 28 July AgriCensus report. For 70,000 tonne Panamax vessels, ships could be loading up to 21,000 tonnes less. Bulk carriers were currently loading 21% less grain at Rosario ports, Wade said. Vessels

Photo: Adobe Stock

IN BRIEF

Paraná River water levels near Rosario in Argentina are around 0.04m against the historical July average of 3.22m

unable to complete their loads had to go to Necochea or Bahia Blanca terminals, in Buenos Aires province, or to ports in southern Brazil. Low water levels on the

Paraná could lead to losses of US$315M for the Argentine agro industrial sector between March and August 2021, according to a study by the Rosario Grain Exchange (BCR).

Rates to remain strong through third quarter Soaring shipping rates are expected to remain strong through to the third quarter of this year, according to a World Grain report on 19 July. Overall demand for bulk shipping in the first four months of 2021 reached a record 1.69bn tonnes, up 6.1% compared with the previous year, according to shipping association Bimco. Capesize earnings in May were running at a daily average of US$36,536, more than nine times higher than at the same point last year.

Panamax earnings stood at US$24,903/day. “The appetite for cargo transport has increased across the board,” Bimco chief shipping analyst Peter Sand told World Grain. In the first four months of this year, Capesize demand rose by 6% and Panamax demand increased by 1.5%. Drewry shipping consultant lead analyst Rahul Sharan expected rates to remain strong through the third quarter due to Brazil’s soya season remaining active over the next two to three months. www.ofimagazine.com

13/09/2021 13:39:00

BIOTECH NEWS INDIA: The Indian government has confirmed it will allow the import of up 1.2M tonnes of genetically modified (GM) soyabean meal to meet a shortage in domestic feed for the livestock, poultry and aquaculture industries, AgriCensus reported on 24 August. The feed industry said a shortage in domestic feed had contributed to surging soya meal prices. Since the start of August, soya meal prices had ranged between INR9,000-9,500/ quintal (US$1,213-1,281/ tonne) before increasing to INR9,700/quintal (US$1,308/tonne) on 24 August, the report said. BRAZIL: Biotech seed producer Corteva Inc said on 24 August that it had launched its genetically modified (GM) Conkesta E3 soyabean in Brazil, which was was tolerant to its Enlist Colex-D and Enlist Duo Colex-D herbicides, as well as glyphosate and glufosinate herbicides. Corteva said Conkesta E3 soyabeans had recently received EU authorisation for food and feed use. This followed its earlier authorisation in several other export markets, including China. The company said it was also planning to launch the product in Argentina and Uruguay.

Bayer to halt residential sales of Roundup in USA

German chemical giant Bayer will stop selling glyphosate-based herbicides for residential use in the USA starting in 2023, Chemical & Engineering News (C&EN) reported on 30 July. The move was “exclusively geared at managing litigation risk and not because of any safety concerns”, Bayer CEO Werner Baumann said during a 29 July call with investors. The company would reformulate its glyphosate-based residential weedkiller, sold under the Roundup brand, but did not say what active ingredient it would use. Bayer has faced more than 125,000 lawsuits in the USA claiming that its glyphosate-based herbicides contributed to their non-Hodgkin’s lymphoma, a type of cancer. The company inher-

ited the litigation with its US$63bn takeover of global agrochemical firm Monsanto in 2018. In its 29 July investor call, Bayer said it would allocate an additional US$4.5bn to deal with the lawsuits connected to its Roundup weedkiller. The allocated funds were in addition to the US$11.6bn that it had previously set aside to fight and settle the Roundup litigation, according to a Bloomberg report on 29 July. The additional funds updated the company’s “five-point” plan, released in May, for handling future litigation. Glyphosate is the world's most widely used weedkiller and is used in conjunction with seeds, such as soyabeans and corn, which are genetically modified to be resistant to it.

ADM to buy non-GM soya ingredient firm Global agribusiness giant Archer Daniels Midland Co (ADM) announced on 26 July that it will acquire leading European non-genetically modified (GM) soya ingredient company Sojaprotein. Established in 1977, Serbia-based Sojaprotein is active in 65 countries, offering a range of non-GMO vegetable protein ingredients for European and global customers in the meat alternative, confectionery, protein bar, pharmaceutical, pet food, and animal feed sectors. In 2020, the company had sales of more than US$100M. ADM said the acquisition,

Sojaprotein supplies non-GM soya products such as protein and oil

which was subject to regulatory approvals, would build on its recent investments in alternative proteins, including its soya protein complex in Campo

Photo: Adobe Stock

IN BRIEF

Grande, Mato Grosso do Sul, Calyxt says seedless hemp offered improved yields and quality

Brazil; its new pea protein plant in Enderlin, North Dakota; and its PlantPlus Foods joint venture.

New EFSA report concludes glyphosate is not carcinogenic

A new draft report by the European Food Safety Authority (EFSA) has concluded that the herbicide glyphosate is not carcinogenic, Olive Oil Times reported on 24 August. “Glyphosate cannot be classified as a carcinogen,” the Assessment Group of Glyphosate (AGG), which produced the report on behalf of the European Commission (EC), said. “The drug can cause serious eye damage, but it is not carcinogenic, has no effect on the sex cells and does not affect reproduction.” The findings followed intense lobbying from glyphosate-based herbicide manufacturers, including Bayer, to extend the use of glyphosate beyond 2022 in the Europe16 OFI – SEPTEMBER/OCTOBER 2021

Biotech news Sept.Oct.indd 2

an Union (EU), the report said. One of the most widely used herbicides globally, glyphosate was labelled by the World Health Organization’s International Agency for Research on Cancer (IARC) as “probably carcinogenic to humans” in 2015, which led some European countries to ban it, Olive Oil Times wrote. The EU re-approved the herbicide in 2017 but only for five years. A consortium of eight glyphosate manufacturers – commonly known as the Glyphosate Renewal Group – submitted a request in 2019 to approve a renewal post-2022, the report said. In response, the EC appointed four

member states (Hungary, Sweden, France and the Netherlands) to look into the request and the four states formed the AGG. After evaluating the dossier presented by the glyphosate manufacturers, the AGG ruled there was insufficient evidence to demonstrate chronic or acute consumer risk when crops were treated with glyphosate as long as it was used according to the manufacturer’s instructions, Olive Oil Times wrote. On 15 June, the AGG submitted its findings to the European Food Safety Authority and the European Chemical Agency, which would now begin a peer review process before either approving or denying the renewal, the report said. www.ofimagazine.com

13/09/2021 13:40:37

DIARY OF EVENTS 23-25 September 2021

8-10 November 2021

18-19 May 2022

Globoil India 2021 Taj Convention Centre Goa, India www.globoilindia.com

AOCS Australasian Section Meeting Newcastle, Australia www.aocs.org/attend-meetings/ industry-events

Oleofuels 2022 Marseille France www.wplgroup.com/aci/event/oleofuels

30 September 2021

9-10 November 2021

Middle East Grains and Oils Congress Cairo, Egypt www.apk-inform.com/en/ middleeast2021/about

5th International Symposium ‘Dietary Fat and Health’ Frankfurt, Germany https://veranstaltungen.gdch.de/tms/ frontend/index.cfm?l=9072

EFPRA Congress 2022 Algarve, Portugal https://efpra2020algarve.com/frequentlyasked-questions/

5-6 October 2021 Future of Biofuels 2021 Copenhagen, Denmark https://fortesmedia.com/future-ofbiofuels-2021,4,en,2,1,13.html 12-14 October 2021 Plant Protein Science & Technology Forum Chicago, USA https://plantprotein.aocs.org/attend/savethe-date-for-2021

16-18 November 2021 25th Advanced Oil Processing Short Course (Online) www.smartshortcourses.com/ oilprocess25/index.html 17-20 January 2022 National Biodiesel Conference & Expo Las Vegas, USA www.biodieselconference.org

13-14 October 2021

24-28 January 2022

American Fats & Oils Association Annual Conference https://fatsandoils.org/

Fuels of the Future 2022 Berlin, Germany www.fuels-of-the-future.com/en

18-20 October 2021

15-16 March 2022

GrainCom 21 Event President Wilson Hotel, Geneva Switzerland www.graincomevents.com

13th Biofuels International Conference & Expo Brussels, Belgium https://biofuels-news.com/conference/ biofuels/biofuels_index_2022.php

18-21 October 2021 18th EuroFed Lipid Congress and Expo (Online) https://veranstaltungen.gdch.de/tms/ frontend/index.cfm?l=10713&sp_id=2 18-22 October 2021

27-28 April 2022 10th European Algae Industry Summit Reykjavik, Iceland www.wplgroup.com/aci/event/europeanalgae-industry-summit/ 1-4 May 2022

North American Renderers Association Annual Convention 2021 Greensboro, Georgia, USA https://nara.org/about-us/events

AOCS Annual Meeting & Expo Atlanta, Georgia, USA https://annualmeeting.aocs.org

26-27 October 2021

10-12 May 2022

9th European & Asian Surfactants Conference (Online) https://www.icis.com/explore/event/9theuropean-asian-surfactants-conference/

FENAGRA 2022 – Brazilian Rendering Congress Campinas, São Paulo Brazil www.fenagra.com.br

2-4 November 2021 World Ethanol & Biofuels Brussels, Belgium https://informaconnect.com/worldethanol-biofuels/ 18 OFI – SEPTEMBER/OCTOBER 2021

Diary Sept.Oct.indd 1

1-4 June 2022

13-15 June 2022 2022 International Fuel Ethanol (FEW) Workshop & Expo Minneapolis, USA www.fuelethanolworkshop.com/ema/ DisplayPage.aspx?pageId=Home 20-23 June 2022 20th International Sunflower Conference Novi Sad, Serbia www.isasunflower.org/news-events/ news/article/20th-internationalsunflower-conference-novi-sad-serbia1%EF%BB%BF 27 August-1 September 2022 World Congress on Oleo Science Kushiro, Japan https://jocs.jp/en/internationalconferrence/ 12-16 September 2022 oils+fats Munich 2022 Messe Munich, Germany www.oils-and-fats.com/index.html 20-21 September 2022 Palmex Malaysia 2022 Kuala Lumpur Malaysia http://asiapalmoil.com 25-27 October 2022 Palmex Indonesia 2021 Medan Indonesia http://palmoilexpo.com 24-27 September 2023 16 International Rapeseed Congress Sydney, Australia www.irc2023sydney.com

For a full events list, visit: www.ofimagazine.com Information subject to change www.ofimagazine.com

15/09/2021 11:01:29

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Source: Adobe Stock

TRANSPORT & LOGISTICS

Rising to the challenge Landlocked Paraguay is overcoming logistical obstacles to become an increasingly important player in the soyabean export sector alongside its South American neighbours Argentina and Brazil Gill Langham

20 OFI – SEPTEMBER/OCTOBER 2021

Paraguay+Transport draft Gill.indd 2

Paraguay is emerging as a modest but key player in the soyabean export sector, according to analysts. The country’s soyabean production in 2021/22 is projected at 10.5M tonnes, according to an United States Department of Agriculture (USDA) report, with exports forecast at 6.5M tonnes. Soyabean production in 2020/21 was lowered to 9.9M tonnes due to a delayed harvest preventing farmers from planting second-crop soyabeans, according to the USDA’s Global Agricultural Information Network (GAIN) 8 April report, with exports projected at 6.75M tonnes. In terms of export volumes in a typical year, Paraguay has been moving closer to Argentina, says Darren Cooper, a senior economist at the International Grains Council (IGC). “While Brazil and the USA are the dominant soyabean exporters, a number of relatively modest exporters have seen their respective export volumes expand over the past decade or so as global trade has advanced, led primarily by growing demand in Asia,” he says. “While Argentina has traditionally been an important supplier within this grouping, Paraguay has emerged as a key seller to international markets.”

Shipping primarily to neighbouring Argentina, Paraguay also supplies markets further afield, but its landlocked position in South America creates extra costs compared to its competitors, according to an 8 February World Grain article on the country. Paraguay’s geographical position, sandwiched between Brazil and Argentina, also causes logistical problems. Other factors such as low water levels on the country’s key waterway, the Paraná River, have also impacted activity recently. Last year, Paraguayan exporters faced severe problems due to low water levels on the Paraná River and this has continued to affect the country’s soyabean shipments this year. Reports earlier in the year indicated that sizeable quantities of soyabeans – up to 600,000 tonnes – had been held up at ports in Paraguay, awaiting improved river conditions, Cooper explains. “Given that the bulk of Paraguayan shipments head to Argentina, port difficulties in Argentina will negatively impact the ability of exporters to dispatch fresh cargoes,” Cooper says. While March/April exports of soyabean meal and soyabean oil by Argentina were ahead of the previous year due to strong u

www.ofimagazine.com

13/09/2021 13:46:41

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Source: Adobe Stock

TRANSPORT & LOGISTICS

Low water levels on the Paraná River continue to affect Paraguay’s soyabean shipments

u demand from key buyers and high prices, he adds, some shippers were unable to dispatch cargoes fully-loaded. However, after negligible volumes were exported by Paraguay during the first two months of 2021, the early months of the local Paraguayan marketing year for exports – 1 March 2021 – saw an upswing in volumes, with the total for March-June reaching 3.62M tonnes. This was 20% higher than in the same period in the previous year and the largest amount ever dispatched during this stage of the season, tied particularly to heavy shipments to Argentina. However, with recent reports suggesting that navigability of the Paraná River could be impacted significantly through to the end of the year because of declining water levels, it is unlikely such volumes can be sustained, Cooper adds.

Export destinations

Argentina is currently the principal destination for whole Paraguayan soyabeans, according to the USDA. As the average protein content of Paraguayan soyabeans is higher than Argentine beans, the blending of Paraguayan beans allows Argentine crushers to meet their buyers’ protein specifications, the report says. While exports to Brazil in 2019/20 were largely driven by the scarcity of Brazilian soyabeans, according to the USDA, feed mills and crushers in the Brazilian state of Paraná were reportedly eager to continue importing Paraguayan beans in recognition of their quality and favourable logistics. Exports to the European Union (EU) have fallen in recent years, due to US soyabeans becoming more competitive, 22 OFI – SEPTEMBER/OCTOBER 2021

Paraguay+Transport draft Gill.indd 3

the report adds, but this trend could reverse as more US beans flow to China. Russia, meanwhile, continues to be an important buyer of lower-quality Paraguayan beans, according to the USDA.

Key waterways

Around 80% of Paraguay’s trade moves through inland watercourses, according to a Bloomberg report on the region in April. Paraguayan soyabeans are barged down the Paraguay or Paraná rivers to ports. In normal circumstances, approximately 35-40% of Paraguayan river barge exports are loaded at facilities on the Paraná River with the remainder loaded on the Paraguay River, according to the USDA. Very low rain levels in the Paraná River basin last year made some sections of the river impassable, the GAIN report says, and exporters had to transport soyabeans from storage and processing facilities on the Paraná to ports on the Paraguay River. “When water levels on the Paraná River are normal, soyabeans grown in eastern Paraguay can be loaded onto barges and shipped downriver. However, when low water levels make these shipments impossible or uneconomical, trucking soyabeans to Brazil can make more sense than shipping overland to ports on the Paraguay River,” the GAIN report says. Although rains across the region had raised water levels near the Argentine port complex in Gran Rosario, the river basin that fed the portion of the Paraná River that borders Paraguay had seen less rain, and dam operators in Brazil had sought to retain more water in reservoirs, according to the GAIN report. This meant that low water levels continued to affect port operations on the Paraná River.

The Paraguay River has more stretches of sandy bottom which facilitates dredging operations. However, even on the Paraguay River, loads had to be reduced by 20%-30% to clear specific low points, according to the report. A series of actions have been taken by the Paraguayan government to resolve the situation – including a number of dredging projects and the release of water from Itaipu Dam which is located on the Paraná River on the border between Brazil and Paraguay – but exporters were pushing for further improvements to navigability, particularly across certain chokepoints, and the introduction of new tolls to fund the improvements, according to the report.

Freight benefits

Low water levels on the Paraná River had one positive consequence – an improvement in trucking economics, according to the GAIN report. Outside of the busy harvest season, freight rates for Paraguayan truckers were competitive compared with Brazilian truckers and Mercursor rules allowed soyabeans to cross the border easily and tariff free, according to the USDA.

Future outlook

Exports from Paraguay to Argentina are channelled to its large processing sector, where they are blended with local supplies and crushed and then sold internationally as soyabean products, the IGC’s Cooper explains. “With economic uncertainties meaning that Argentine farmers have been reluctant sellers at times in the current season, this is expected to ensure demand for Paraguayan supplies holds firm,” he says. Paraguay’s domestic processing sector has also grown over the past decade, Cooper adds. However, domestic uptake is relatively small, with the bulk of its supplies of soyabean meal and soyabean oil sold internationally. Rural sectors have also been urging the government to negotiate with Chinese authorities to open up this market for Paraguayan soyabean exports, according to an AgriCensus report last year. With recent reports indicating that there would be increasing difficulties in moving soyabeans due to continuing low water levels, logistical challenges are likely to be the defining issue over the remaining months of the marketing year, according to Cooper. ● Gill Langham is the assistant editor of OFI www.ofimagazine.com

13/09/2021 13:46:45

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OFI – SEPTEMBER/OCTOBER 2021 23

SUSTAINABILITY

With increased scrutiny on the sustainability of palm oil, the identity preserved supply chain model is considered the highest standard Photo: Adobe Stock

The growth of IP palm There are three main supply chain models to follow when it comes to producing certified sustainable palm oil, with Identity Preserved (IP) demanding the most stringent standards as it provides complete traceability back to the plantation Barnaby Patchett

Global businesses are under increasing pressure to improve their sustainability credentials and cut carbon footprints. As the world looks to decarbonise, governments are strengthening legislation and introducing mandatory reporting measures, and organisations are pledging to slash their carbon use and achieve net zero emissions in the coming years. Staying compliant with strengthening legislation and achieving these ambitious targets will be a real challenge. It is no longer enough for businesses to look at their own operations – there is an increasing expectation that sustainability policies must cover the entire supply chain.

Legislative push

For palm oil users, quantifying the impact of their palm oil use can be difficult but Identity Preserved (IP) solutions could prove to be integral to achieving sustainable change. Sustainable palm oil specialist, Judith Murdoch, of Murdoch Associates and Efeca, explains: “Governments across the world are all moving in the same direction on sustainability – towards passing legislation designed to prevent deforestation and protect biodiversity. “There’s a push for more accountability from businesses, who will need to prove they are making the right purchasing decisions. We’re already seeing it in the 24 OFI – SEPTEMBER/OCTOBER 2021

IP palm.indd 2

UK with a proposed new Environment Bill, and the EU is considering similar regulations. “For businesses that use commodities such as palm oil, the message is clear – sustainability is no longer optional. You need to do your due diligence on your supply chains, to ensure that the ingredients you are sourcing are truly sustainable.” The legislative changes could be further influenced by the United Nations (UN) Climate Change Conference (COP26) from 31 October to 12 November later this year in Glasgow. As the world’s governments agree to take action – this is likely to put further pressure on global businesses to move forward with targets to reduce greenhouse emissions.

Ensuring traceability

Palm oil has been controversial as a result of the historic clearance of tropical rainforests, the impact on endangered species and the displacement of indigenous people across Asia. Over the past 15 years, organisations such as the Roundtable on Sustainable Palm Oil (RSPO) and the Rainforest Alliance have helped to transform the industry, setting out clear standards and expectations for sustainable, ethical production. The industry has come a long way over the past decade and today, certified

www.ofimagazine.com

13/09/2021 13:49:45

SUSTAINABILITY sustainable solutions are widely available across the world. “Certified sustainable” is a broad label – it covers any palm oil produced to standards set out by one or more different certifying bodies including the RSPO, and can cover a number of different supply chain models, including: • Mass Balance – sustainable palm oil mixed with non-certified palm oil (with the quantity of sustainable oil sold as certified sustainable). • Segregated – sustainable palm oil from different sources. • Identity Preserved (IP) – sustainable palm oil, fully traceable from a single certified source.

80% or more of the total. Taking steps to reduce these is essential if these businesses are going to cut their carbon footprints or achieve net zero emissions. Purchasing IP palm oil provides businesses with full traceability – so they can effectively quantify the scale of these emissions. Daniel Usifoh, sustainable procurement specialist and founder of sustainability tracking and reporting platform, AXIOM, explains: “Collecting data and tracking metrics is an essential part of any effective sustainability programme – businesses need to know where they stand, where they are heading and what they need to

focus on. When purchasing commodities such as palm oil, this can be challenging. In many cases, businesses are purchasing products from multiple sources, with no dependable data on how these were produced. “Purchasing identity preserved solutions provides clarity and makes collecting essential data easy – whether it’s carbon emissions or social metrics. Instead of estimating or taking an industry average, businesses can get an accurate picture of their supply chain. This is particularly useful for businesses required to report under SECR, those wanting to achieve net zero or those looking to meet pledges u

Of the three models, IP is considered the highest standard of sustainability. The sustainability benefits of choosing IP solutions can be significant as they provide complete traceability back to the plantation – enabling buyers to effectively vet their suppliers to ensure that the production methods, business ethics and sustainability credentials match their own. Astrid Duque of DAABON UK, a global leader in sustainable palm oil, explains what this can mean in practice: “Buying IP provides customers with visibility and control over their supply chains – they know exactly where their palm oil is coming from and how it’s produced. “Customers who buy IP palm oil from DAABON can prove to customers and stakeholders they are getting a truly sustainable, ethical product. “All the palm oil we produce is organic, identity preserved certified sustainable. Our palm operation is deforestation free, and supports more than 500 family smallholders across northern Colombia. The palm operations are net zero, and we export clean methane that provides power for the Colombian national grid. “We hold certification with global bodies including the RSPO, Rainforest Alliance and the Palm Oil Innovation Group (POIG), and we’re consistently rated as a top producer by SPOTT, which tracks the transparency of sustainability programmes.” Choosing IP palm oil also makes gathering accurate data on supply chain emissions and social metrics easier – essential for any business looking to quantify Scope 3 (supply chain) emissions, report on Streamlined Energy & Carbon Reporting (SECR) or track progress towards sustainability/net zero goals. For many businesses, supply chain emissions make up the bulk of their carbon emissions – accounting for up to www.ofimagazine.com

IP palm.indd 3

natural bleach_mini_ofi.indd 1

OFI – SEPTEMBER/OCTOBER07/06/2019 2021 2516:54

13/09/2021 13:49:46

SUSTAINABILITY

Rise of IP palm oil

Buyers are becoming increasingly aware of the potential benefits of IP, although there is still plenty of scope for growth, as there is across all forms of certified sustainable palm oil. Although 17.96M tonnes of palm oil (around 19% of global production) carries some form of sustainability certification, only around half of this is sold as certified sustainable. The first palm oil sold under the RSPO ‘identity preserved’ label was in 2015 – and the quantities sold have increased year-on-year. During the first full year of trading (2016), around 1.2M tonnes of palm oil was sold as identity preserved. By 2019, this figure had grown to more than 2.7M tonnes worldwide. This growth has been mirrored in the palm kernel oil (PKO) market – with volumes of IP PKO up from around 500,000 tonnes in 2016, to more than 1M tonnes in 2019. It is especially impressive when compared to the overall growth in sales

Figure 1: Identity preserved supply chain model 26 OFI – SEPTEMBER/OCTOBER 2021

IP palm.indd 4

Those customers who were already buying segregated palm are beginning to switch to identity preserved. “Going forward, we’re expecting the growth in IP to continue. In 2020, we launched our first IP product for the UK market and, following the success, we’re set to launch a number of new IP solutions, including palm olein and high oleic palm.” IP is also proving to be popular with buyers who have been considering switching from palm oil to another vegetable oil, as Lewis explains: “The big issue with moving from palm is that all of the alternatives are more expensive. Although IP commands a price premium, it’s still more cost effective than palm alternatives. At the same time, it offers far better traceability and higher sustainability credentials.”

of RSPO certified sustainable palm, which grew from around 5.6M tonnes in 2015 to just over 7M tonnes in 2019, with PKO sales moving from around 1.8M tonnes to 2.6M tonnes in the same period. The global COVID pandemic saw growth of IP solutions slowing significantly, with volumes only up marginally year-on-year. Gary Lewis, head of business development for Oils and Fats at KTC Edibles Ltd, and president of the UK National Edible Oil Distributors’ Association (NEODA), explains why: “IP carries a cost premium over other supply chain options. In 2020, priorities changed, and for many businesses, sustainability took a back seat. Customers were focused on survival and responding to the pandemic – many simply didn’t want to take on the additional costs associated with moving to IP. “As restrictions ease, we’re seeing buyers prioritise sustainability again. At KTC, an increasing number of our customers are moving over to RSPO membership. Customers who have been hesitant to buy sustainable palm oil are now ordering segregated sustainable.

Growth potential

Source: RSPO

u made as part of their UN Sustainable Development Goals (SDG).”

Although there is significant potential for growth in the supply of identity preserved solutions, it is unrealistic to expect the global palm oil supply chain to move to 100% IP. The complexities of the production process and supply chains in key producing countries such as Malaysia and Indonesia will ultimately cap the quantities of IP palm oil available worldwide. As things stand, however, there is still an oversupply of IP palm oil – to the point that some of it ends up being sold as segregated. There is plenty of opportunity for businesses that want to get ahead of the curve and make meaningful changes, before they are forced to do so by consumers and legislation. For those who cannot, or for whom IP is prohibitive from a cost perspective, choosing segregated sustainable provides the best compromise. ● Barnaby Patchett is managing director of One Nine Nine Agency, UK www.ofimagazine.com

13/09/2021 13:50:07

PLANT & TECHNOLOGY

Global news digest

New TotalEnergies SAF plant Maire Tecnimont subsidiary NextChem has been awarded a contract to build a sustainable aviation fuel (SAF) plant for TotalEnergies in France, Marie Tecnimont announced on 3 June. The 400,000 tonnes/year facility was part of TotalEnergies’ ‘Projet Galaxie’ plan to convert its Grandpuits refinery into a zero-crude platform, which would include a 100,000 tonnes/year biorefinery to produce compostable and biodegradable plastics, Maire Tecnimont said.

The SAF plant, due to be operational in 2024, would use mainly animal fats from Europe and used cooking oil as feedstock. TotalEnergies is aiming to produce close to 5M tonnes/year of renewable fuels by 2030. It is also investing in low-carbon activities, including bioplastics and renewable fuels production, with the ambition of reaching net zero emissions in Europe by 2050. France has set a target to use 2% of SAF by 2025 and 5% by 2030.

Oils & Fats International reports on some of the latest projects, technology and process developments around the world

Vertex buys Shell refinery to make renewable diesel In its largest ever transaction, speciality refining firm Vertex Energy has acquired Shell’s US Mobile refinery for US$75M. Vertex said on 26 May that it would invest US$85M to convert the Alabama refinery’s hydrocracking unit to produce renewable diesel. On completion of the conversion by the end of 2022, the facility was expected to produce approximately 10,000 barrels/day of renewable diesel and renewable by-products. The unit would be capable of processing a wide range of pre-treated feedstocks, including soyabean and corn oils, meat tallow and waste vegetable oils, Vertex said. By the middle of 2023, the company expected renewable diesel production to increase to 14,000 barrels/day.

Haldor Topsøe chosen for new Covenant plant Green fuel producer Covenant Energy will use Haldor Topsøe technology for its new renewable diesel plant in Canada. Covenant’s stand-alone hydrogenation-derived renewable diesel refinery in Saskatchewan would use renewable feedstocks, including Canadian canola oil, Haldor Topsøe said on 17 June. The 6,500 barrels/day unit was scheduled to become operational in early 2024. 2 OFI – MONTH 2018 www.ofimagazine.com

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PLANT & TECHNOLOGY u

CLG and ARA to supply new plant in Iowa Chevron Lummus Global (CLG) and Applied Research Associates (ARA) are supplying technology for ReadiFuels-Iowa’s renewable diesel and sustainable aviation fuel (SAF) project, the companies announced on 3 June. ReadiFuels-Iowa will use the jointly developed CLG and ARA Biofuels ISOCONVERSION technology to produce SAF, renewable diesel, and renewable naphtha. The plant would process used cooking oil (UCO) and distiller’s corn oil to produce approximately 136M litres/year (36M gallons) of renewable fuels, the companies said.

IN BRIEF TURKEY: Özmirioğlu Pamuk Yag Kuspe San ve Tic AS recently signed a contract with China’s Myande group to supply a 1,000 tonnes/day multiple oilseeds crushing project, Asia Palm Oil reported on 17 June. Myande would provide engineering, equipment and an automation control system for the oilseeds crushing line, which would be the largest cottonseed crushing plant in Turkey, the report said. Özmirioğlu operates in the edible oil, feed and grain sectors in Turkey supplying cottonseed oil, cotton pulp as a feed ingredient, and linter cotton paper. Myande is a leading supplier of integrated systems to the oils and fats industry. “The largest oilseeds crushing facility in China – a 6,000 tonnes/day soyabean crushing facilty, 3,000 tonnes/ day canola crushing facility, 700 tonnes/day corn germ crushing facilities, and 1,000 tonnes/day soyabean white flake processing facility, one single line, are all designed and supplied by Myande,” the Chinese firm said. Myande added that it had provided more than 500 projects around the world and established strategic partnerships with leading agribusinesses such as ADM, Bunge, Cargill, COFCO, Louis Dreyfus and Wilmar.

Biofuels ISOCONVERSION technology to process yellow grease, brown grease, animal fats, non-food energy crop oils and algal oil in the future, the two firms said. A joint venture between Chevron USA and Lummus Technology, CLG is a process technology licensor for refining hydroprocessing technologies and alternative source fuels, and a global catalyst system supplier. Founded in Albuquerque, New Mexico, in 1979, ARA offers water-based pre-treatment, conversion and separation technologies for renewable fuels and petroleum refining.

Oil palm biomass unit in Côte d’Ivoire Spanish engineering and construction firm TSK announced on 22 June that it will build a €156M oil palm biomass plant in Côte d’Ivoire, which will generate enough electricity to supply 1.7M people. The project was awarded to TSK by BIOVEA Energie, a joint venture between France’s utility multinational EDF, French investment firm Meridiam and Biokala, part of the SIFCA African agribusiness group. The 46MW biomass plant in Aboisso, 100km east of Abidjan, would be the largest plant in West Africa fuelled by leaf waste from oil palms, TSK said. “This project is part of the Ivory Coast’s National Renewable Energy Action Plan for 2014-2030, which aims to achieve a 42% share of renewable energy in the energy mix by 2030. The aim of this project is

A planned biomass plant in Abidjan, Côte d’Ivoire will be fuelled by leaf waste from oil palms Photo: Pixabay

to support Ivory Coast’s agro-industrial sector and contribute to the objectives set by the country at the time of COP21 [2015 United Nations Climate Change Conference],” TSK said.

“Over the duration of the concession contract, this biomass power plant will enable Ivory Coast to reduce its carbon dioxide emissions by more than 4.5M tonnes.”

AlgaeCytes to build commercial EPA plant Biotechnology firm AlgaeCytes is planning to build its first commercial algal eicosapentaenoic acid (EPA) plant in Germany, the company announced on 24 May. The plant in Dessau, Saxon-Anhalt, Germany, would be owned and operated by the company’s German subsidiary, AlgaeCytes Germany, according to the statement. AlgaeCytes said its algae-based technology would be used at the facility to produce natural, vegetarian, traceable, high-potency algal EPA, beta carotene and agricultural crop biostimulant from sustainable sources for the nutraceutical, pharmaceutical and food sectors.

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“In a booming industry that is anticipating feedstock supply challenges, ReadiFuels-Iowa has chosen a solution that will efficiently pre-treat and convert abundant, highly-contaminated, low carbon intensity, waste fats, oils and greases into renewable diesel and sustainable aviation fuel that perform like petroleum with greatly reduced emissions,” ARA vice president Chuck Red said. The project includes the technology license, basic engineering, catalyst supply and proprietary equipment. ReadiFuels-Iowa also planned to use the

“Our expectation is that this will be the first of many operations for us planned over the next five years across Europe, the USA, the UK and the Middle East,” AlgaeCytes executive chairman Adrian Neilan said. Total investment in the Dessau project was expected to exceed US$60.8M (€50M) and the plant’s design was based on the company’s UK facility in Discovery Park, Kent, which would remain its headquarters. Construction was due to begin in the fourth quarter of this year and the new plant was due to become operational by the third quarter of u next year, the company said. www.ofimagazine.com

15/09/2021 11:04:10

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PLANT & TECHNOLOGY IN BRIEF THE NETHERLANDS: Dutch storage company Eurotank Amsterdam (ETA) – part of VTTI – is converting gas oil tanks into storage for biofuels, mixed biofuels and hydrotreated vegetable oil, VTTI announced on 22 May. The conversion would create capacity of 75,000m³, with the first phase set to be commissioned at the end of this year. ETA would also upgrade jetties and loading arms and build a new truck loading station. USA: International energy company ExxonMobil has expanded its five-year renewable fuels agreement with biofuel developer Global Clean Energy Holdings (GCEH), the companies announced on 22 April. ExxonMobil would be the exclusive buyer of renewable diesel from GCEH’s California biorefinery and increase its purchases from 2.5M to 5M barrels/year. The biorefinery was expected to begin production early next year. It would process up to 15,000 barrels/ day of renewable feedstocks, including GCEH’s patented camelina. A range of other non-petroleum feedstocks, including used cooking oil, soyabean oil and distillers’ corn oil would also be used, the companies said. USA: Swedish fluid handling company Alfa Laval has won a record order for renewable diesel conversion, Markets Insider reported on 31 May. The US$50M order involves the supply of processing systems and equipment for feedstock pre-treatment to a US refinery converting from petroleum refining to renewable biodiesel production, the report said. Alfa Laval would be providing systems for pre-treating oils and fats and handling wastewater at the biofuel plant, with delivery scheduled for next year.

Velocys selects Koch Project Solutions for Natchez plant

Sustainable fuels technology company Velocys announced on 30 June that it will award Koch Project Solutions (KPS) a contract for its Bayou Fuels biorefinery project in Natchez, Mississippi, USA, subject to due diligence and integrated licensor work. The project is expected to produce approximately 125M litres/year of sustainable aviation fuel (SAF) and naphtha made from woody biomass from pine plantations in the counties surrounding Natchez. Upon successful execution of a turnkey engineering, procurement and construction (EPC) contract, KPS would be responsible for constructing and commissioning the facility, which would use renewable power with carbon capture and storage of the plant’s by-product CO2.

Microalgae for next-generation fuels Global energy company TotalEnergies announced on 6 July that it is working on a four-year biodiesel research project at its La Mède biorefinery in France with water, waste and energy management firm Veolia. The project would accelerate the development of microalgae cultivation using CO2, TotalEnergies said. Using photosynthesis, microalgae used sunlight and CO2 from the atmosphere or from industrial processes to grow and, when mature, could be transformed into next-generation biofuels. As part of the project, a test platform would be set up to compare different systems for growing microalgae and identify the most efficient ones, the company said.

TotalEnergies and Veolia are working together to evaluate the best microalgae for next-generation biofuels

TotalEnergies said it would bring its expertise in the cultivation and refining of biomass to produce advanced biofuels and in CO2 capture and utilisation technologies to

the joint project. Veolia, meanwhile, contributed its expertise in the water sector to optimise management of microalgae’s aquatic environment.

Sevita to build soya processing plant in Ontario Canadian soyabean company Sevita International is building a new soyabean processing plant in Ontario, World Grain reported on 9 August. The new C$3.6M (US$2.9M) facility in Inkerman would process and package both seed and food-grade soyabeans in the same plant. Sevita was planning to expand its seed business in Eastern Ontario by about 50%, the report said, and the new facility was expected to lead to

4 OFI 2018 30 OFI––MONTH SEPTEMBER/OCTOBER 2021

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The conversion process from gasification of wood chips to FT synthesis generated a significant volume of CO2 as a by-product, Velocys said. “This CO2 can be used for commercial purposes, replacing fossil-based CO2, or permanently sequestered. The fuels produced from the facility will meet all requirements and regulations in the USA and generate federal and state credits. Velocys CEO Henrik Wareborn said: “The project will deliver SAF with a carbon intensity of –144g CO2e/MJ through the combination of biogenic feedstock, renewable power and carbon capture and storage. Such fuels significantly contribute to improved air quality, by reducing particulate emissions by up to 90%, lower nitrogen oxides and 99% lower sulphur emissions compared to fossil fuels and standard jet fuel.”

Photo: Adobe Stock

lower production costs and improve quality. The facility was expected to feature equipment that warmed seeds to extend the seed processing and treating season, World Grain wrote. Sevita’s website said it provided growers with exclusive varieties through its breeding division, Sevita Genetics, and it also sourced multiple suppliers to obtain varieties and hybrids with prominent biotechnological characteristics. www.ofimagazine.com www.ofimagazine.com

15/09/2021 11:04:18

PLANT & TECHNOLOGY

Chevron and Gevo to build SAF plants Global energy company Chevron and renewable chemicals and advanced biofuels firm Gevo are planning to build one or more new plants to produce sustainable aviation fuel (SAF) from inedible corn oil, Chevron announced on 9 September. Chevron USA, a subsidiary of Chevron Corporation, and Gevo had signed a letter of intent for the joint project, which

would also produce proteins and corn oil, according to the announcement. Through the joint project, Gevo would operate its proprietary technology to produce SAF and renewable blending components for fuel, while Chevron would co-invest in one or more projects and would also have the right to offtake approximately 567M

litres (150M gallons)/year. “This potential investment leverages Gevo’s innovative approach to producing sustainable aviation fuel, complementing other renewable fuels investments we are making as part of our higher returns, lower carbon strategy,” Chevron’s executive vice president of downstream & chemicals Mark Nelson said.

CRC invests extra US$20M to produce soyabean oil for biodiesel in Kentucky US refining company Continental Refining Company (CRC) announced earlier this year that it was investing a further US$20M at its existing oil refinery in Somerset, Kentucky. CRC said its plans included a soyabean crushing, biodiesel refining and blending facility. The crushing facility would process almost four 4M bushels/year of soyabean (84,000 tonnes) while the biodiesel refining division would generate up to 18.9M litres/year (5M gallons). Products produced at the facility would in-

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clude soya meal, soya oil, soya hulls, B100, crude glycerine, biodiesel, gasoline and other products. The refinery was purchased in 2011 by Hemisphere Limited CEO Demetrios Haseotes, who had since invested over US$60M improving the facility’s crude oil refining capabilities. CRC said the refinery’s focus would now shift to soyabeans as a feedstock in biodiesel production. The refinery was expected to start production in the final quarter of this year with soyabean processing due to start in first quarter 2022.

IN BRIEF UAE: Biofuel producer BioD Technology (BioD) has commissioned a biodiesel refinery in Dubai, Yahoo Finance reported on 7 September. The 30,000 tonnes/year facility in the Jebel-Ali Free Zone followed the company’s first operation in northern India in early 2019 and would utilise used cooking oil, animal tallow, palm oil mill effluent waste and acid oils, as feedstocks. According to its website, Dubai-based BioD has a current biodiesel capacity of around 60,000 tonnes/year. OMAN: A biodiesel plant which converts used cooking oil (UCO) into fuel is in the final stages of construction, the Oman Observer reported on 31 July. Once completed, the plant in the Barka Industrial Area would process 3M litres/year.

OFI – SEPTEMBER/OCTOBER 2021

15/09/2021 11:04:18

Photo: Adobe Stock

RENDERING

Diverse raw materials from different meat industries are just one of the external factors renderers have to deal with during processing

Pressing matters Suppliers of rendering equipment are focusing on energy efficient plants which meet current safety standards, while yielding the highest amount of raw materials, with the screw press being a central element in the rendering process Lennard Münch

32 OFI – SEPTEMBER/OCTOBER 2021

Rendering.indd 2

The rendering industry has recovered from the bovine spongiform encephalopathy (BSE) or so-called mad cow disease crisis of the 1980s and 1990s, in which the main affected nation – the UK – had to slaughter four million head of cattle to contain the outbreak. During the crisis, 177 people died in the UK after contracting the human equivalent of the brain disease – Creutzfeldt–Jakob disease (vCJD) – and British beef was banned from export to numerous countries around the world, with some bans remaining in place until as late as 2019. The BSE crisis led to new regulations including the removal of specified risk material from the food supply chain and the separation of fallen stock and animal by-products into different risk categories. Since then, stricter regulations have challenged the rendering industry to adapt its processes. From today’s perspective, it is even more important to operate an energy efficient plant which meets safety

standards but also yields the highest amount of raw materials. Suppliers of rendering equipment have focused on how to arrange the best setups of conventional machinery and their reliability. A second step in this ongoing development is the automation of plants and how to steer them towards greater energy efficiency. There is no perfect process or automisation system because external factors such as constantly changing raw material, temperatures and handling issues are so diverse. Therefore, constant monitoring and correct planning of service intervals are very important. Yields increase when servicing is scheduled regularly, according to press and spare parts manufacturers and service providers Rosedowns and Serptec, part of the Desmet Ballestra group.

Focus on screw press

The screw press is a central element in the rendering processing as it takes a

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Source: Serptec GmbH

RENDERING

Figure 1: Pressure curve theory u semi-finished product and separates it into solids and fats. Crucial factors such as the mix of material (bone/soft parts), temperature and moisture have to be adjusted to receive a good separation with a high yield of oil. Currently, there are two main pressing methods which are widely used in the rendering industry. The first method uses a relatively short screw-cage configuration using a choke at the end of the press. Material is conveyed through the press with a small intensity of volume decrease in a relatively short strainer cage. A choke at the end regulates the back force so that material is compressed inside the strainer cage. Due to the increase in counter pressure, separation of fat takes place and free oil flows out of the strainer cage. The solids exit on the sides of the choke, staying mainly inside until the outlet of the strainer cage. This method is easy to control but does not give optimal results and consumes more energy. The process usually requires a fresher bone/soft material mix. Otherwise, pressing is mostly inefficient, with high residuals of oil content in the cake. The second method uses a screw press with a relatively long screw-cage configuration without a choke. It has a higher intensity of volume decrease inside the strainer basket. The press geometry compresses the cake either with a constant increase of pressure or with special pressure elements which separate the material in different compression zones inside the strainer basket. 34 OFI – SEPTEMBER/OCTOBER 2021

Rendering.indd 3

The Rosedowns SR4.000 rendering screw press has a new strainer cage which provides greater opportunities to recover oil from rendered material

The outcome is usually a better defatting value than with screw presses with a choke. The retention time inside the strainer cage is longer so the oil has more time to drain. But the operation, especially on start-up, must be monitored more carefully.

‘Multivalent’ approach

A ‘multivalent compression’ approach is, in theory, the most effective pressing method as it combines both radial and axial compression intensity levels (see Figure 1, above). The volume decreasing curve is very steady if the compression levels are coordinated, allowing for oil yield out of the capillary structure of the material. This achieves a better oil flow. In addition, this pressing method is more energy efficient due to the effectiveness of the compression method. Material with a low structure

level can be forwarded into the press and the multivalent compression transforms it into a cake so that the separation process can start immediately and oil can flow off more quickly through the strainer cage. Conventional screw geometries only use radial compression on each part, while axial compression varies only from part to part. Conventional pressing also takes longer and another disadvantage is that when conventional parts wear out, the oil in cake level will rise. Combining radial and axial compression addresses these issues, maintaining efficient pressing for a longer time period. Another problem with conventional pressing is free oil being separated from the solids while compressed inside the strainer cage. In several trials, Rosedowns Serptec observed that not all of the separated oil will flow through the drainage of the strainer cage. Instead, it flows inside along the strainer cage and is absorbed from the cake as soon as the pressure level drops, usually when the cake leaves the strainer cage. Measured results have shown that up to 3% of residual oil content could be reclaimed. The Rosedowns SR4.000 rendering screw press addresses some of the issues of conventional presses. The main development lies in the strainer cage. The diameter and length of the cage have been optimised, taking into account the drawbacks of conventional pressing, and a 360° drainage zone provides the maximum opportunity to recover some of the 3% residual oil content in the cake. The screw press’ clamping bars are CNC manufactured, providing an additional screening area. This provides new drainage possibilities by opening the upper and lower sides where free oil usually collects without a chance to drain. The screw press is one example of suppliers developing new, more efficient machinery for the rendering industry. An automisation process which can adapt to constantly changing materials in rendering production is still to be developed, although Rosedowns Serptec has filed a patent for a new type of technology in this area. Trials will start within the next few years, continuing the process to develop a complete process which will adapt to diverse materials and other external factors. ● Lennard Münch is the managing director of Serptec GmbH, which became part of the Desmet Ballestra group in 2020

www.ofimagazine.com

13/09/2021 13:54:33

Photo: Adobe Stock

SPECIALITY FATS

A growing number of high-end shops, restaurants and hotels is expected to contribute to the growth of the bakery sectory in Vietnam

Vietnam: bakery on the rise Vietnam’s bakery, cereal products and confectionery markets are expected to grow, with imported palm oil used as an ingredient in these sectors Muhammad Kharibi, Rina Mariati Vietnam’s bakery, cereal products and confectionery market is one of the most robust in the Asia Pacific region. According to Statista, revenue in the country’s bread and cereal products sector reached US$6,838M in 2020, surging by 34.4% from US$5,088M in 2019. In terms of volume, the sector registered 3,848M kg in 2020, an increase of 31.1% from the 2019 figure of 2,934M kg. The COVID-19 pandemic was the main reason behind the huge increase in the sector’s revenue and volume. The normal annual average growth for the segment’s revenue and volume is 3.3% and 2.5% respectively. However, during the pandemic, the Vietnamese preferred to dine at home and, due to their convenience, bakery products became a popular choice. www.ofimagazine.com

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The country’s bread and cereal products segment is expected to grow in the future, although not at the pace of 2020. The projected revenue and volume in 2021 are US$6,885M and 3,779M kg respectively.

Palm oil imports

With a population of 97.3M people, Vietnam’s consumption of oils and fats stood at 1.6M tonnes in 2020, a rise of 8.6% or 130,000 tonnes compared with 2019. The country is one of the most important markets for palm oil in the Association of Southeast Asian Nations (ASEAN) region and palm is the main oil consumed in Vietnam, with a share of 61.2% or 976,000 tonnes out of the country’s total oils and fats consumption last year. The demand for palm oil is expected to show an upward trend in the future with the food industry and the hotel, restaurant and catering (HORECA) sector representing major consumers. The bakery and confectionery sector is one area of the food industry which offers growth potential for palm oil. Most of the finished palm products imported by Vietnam are used in the bakery and confectionery sectors (see Table 2, following page). The country imports palm oil from both Indonesia and Malaysia, with imports

recording strong growth in the past five years at an average annual growth of 7.3%. In 2020, Vietnam imported 1.04M tonnes of palm oil, a 9.4% or 89,000 tonnes increase compared with 2019. The country is the second largest importer of Malaysian palm oil in the ASEAN region after the Philippines. However, Malaysian palm oil imports into Vietnam registered a decline of 158,427 tonnes or 26.61% in 2020, mainly due to an increase in imports from Indonesia and a high volume of soyabean coming from the USA. Competitive pricing led to Vietnam increasing its Indonesian palm oil imports in 2020 by 259,000 tonnes or 75.7% compared to 2019. Last year, the country’s soyabean imports also rose as its pig herd began to recover from the 2019 African swine fever (ASF) outbreak, leading to increased demand for feed. According to Oil World data, US soyabean exports to Vietnam rose by 330,200 tonnes or 58.42% to total 895,400 tonnes for the January to November 2020 period, compared with the same period in 2019. The surge in domestic crushing also led to increased availability of soyabean oil for local consumption, translating into slower u imports of palm oil into Vietnam. OFI – SEPTEMBER/OCTOBER 2021

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Source: Malaysian Palm Oil Council (MPOC)

Figure 2: Refining process of crude palm kernel oil (CPKO) and finished products PKO products

2016

2017

2018

2019

2020

HRBD palm kernel olein

3,034

3,398

5,653

8,371

11,124

1,635

1,117

1,295

5,487

3,871

415

1,217

1,304

1,996

2,026

459

419

406

312

355

Others

2,482

2,447

445

226

600

TOTAL

8,024

8,598

9,102

16,393

17,977

HRBD palm kernel oil HRBD palm kernel stearin RBD palm kernel oil

Table 1: Import of Malaysian palm kernel (PKO) products by Vietnam (tonnes) Finished products

2016

2017

2018

2019

2020

Vegetable fat

1,110

352

1,914

2,725

3,285

2,443

2,410

4,102

3,906

2,956

1,587

1,827

1,813

2,066

1,299

900

809

496

131

509

1,678

1,819

1,687

1,561

1,034

7,718

7,217

10,013

10,390

9,083

Butter oil substitute Shortening Cocoa butter replacer Others TOTAL

Table 2: Import of Malaysian finished palm products by Vietnam (tonnes) 36 OFI – SEPTEMBER/OCTOBER 2021

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Source: Malaysian Palm Oil Board

Source: Malaysian Palm Oil Council (MPOC)

Figure 1: Refining process of crude palm oil (CPO) and finished products

Source: Malaysian Palm Oil Board

Photo: Adobe Stock

SPECIALITY FATS Palm products for confectionery

Refined, bleached and deodorised (RBD) palm olein, RBD palm oil and RBD palm stearin are the main imported palm oil products into Vietnam, with a share of 75.5%, 18.6% and 5.1% respectively. Fractionation of RBD palm olein produces palm mid-fractions and super olein (see Figure 1, left). The palm midfraction can be used as a frying oil, and for biscuit and confectionery fillings, whereas super olein usages are for snacks and frying oil. Fractionation of RBD palm stearin produces mid-stearin and super-stearin (see Figure 1, left). Mid stearin can be used as a hard stock for margarine and super stearin can be used to produce dry soup mixes and dry cake mixes. The import of palm kernel oil (PKO) products shows positive growth with a CAGR of 17.5% from 2016. Hydrogenated, refined, bleached and deodorised (HRBD) palm kernel olein imports rose significantly by 266.7% or 8,091 tonnes to reach 11,124 tonnes in 2020 compared to 2016 (see Table 1, left). It is widely used for coffee whiteners and margarine. There was also an increase in the import of HRBD palm kernel stearin, which is mainly used for confectionery, cream biscuits and chocolate coatings. The increase in the import of these products shows the positive development of the bakery and confectionery sector in Vietnam, with the government recognising the bakery sector as one of the important GDP contributors to the country. The demand drivers which contribute to the growth of this sector include: • A growing youth and middle-class population with rapid urbanisation leading to more demand for bakery products. • Growing numbers of high-end shops, restaurants, hotels, resorts and shopping malls that offer a wide selection of bakery products. • Rising numbers of food chains serving bakery products. • Increased interest and demand for organic and healthy foods, with bakery products considered a healthy food in Vietnam. Based on data and projections, the bakery and confectionery sector promises strong growth for the future in Vietnam. This growth will spur demand for palm oil in the country, with Vietnam continuing to depend on imported palm oil from Malaysia and Indonesia. ● This article is based on a Malaysian Palm Oil Council (MPOC) report by Muhammad Kharibi and Rina Mariati

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15/09/2021 11:07:36

INSTRUMENTATION

Global round-up of news Oils & Fats International reports on some of the latest instrumentation news and developments around the world

JAPAN: A research team from Kumamoto University has developed a system to measure antioxidant properties in food, Electronics 360 reported. Evaluating antioxidants typically required complex analysis, with fat soluble antioxidants in colourful and cloudy food samples difficult to measure, the report said. However, the new electrochemical system simplified the method by using a gel form called bio-continuous microemulsion (BME), integrated with a sheet-type electrode, Electronics 360 wrote. With the new system, a gel membrane was attached to the electrodes and then dipped into a sample, the report said. Analysis could also be done by placing a drop of the sample onto the electrode. The new system also allowed oily substances, which were not soluble, to be analysed in their original state. As a proof of concept, the research team used the device to measure the vitamin E content in commercial olive oil, Electronics 360 wrote. A paper on the new system was published in Analytical Chemistry.

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IN BRIEF

New blockchain study in biofuels traceability The Roundtable on Sustainable Biomaterials (RSB) has partnered with software development company Bioledger to launch a biofuels blockchain case study. Designed to combat fraud, the blockchain database would enable verifiable proof of origin, secure consignment creation, process simplification, audit efficiency, data integrity, and central governance, the RSB said. A prototype of the database had been trialled with four project partners involved in the production of used cooking oil (UCO) to process a total of 1.9 litres of feedstock, the organisation said. The partners were waste-based biodiesel producer Greenergy, UK; UCO exporter Rexon Energy, Singapore); UCO collector Bensons Products, UK; and UCO collector and exporter Valley Proteins, USA.

Bioledger would use the lessons from the pilot project to provide a new blockchain database for the sector, RSB said. “Transparent and credible supply chain data is key to giving confidence in biofuels and low carbon fuels,” RSB executive director Rolf Hogan said. Other key stakeholders who supported the project included the Dutch Oils and Fats Industry (MVO), the European Waste-to-Advanced Biofuels Association (EWABA), the European Biodiesel Board (EBB), the European Commission, Peterson Control Union, SCS Global Services and Oracle Consulting Services. The RSB is an international organisation that supports the development of the global bioeconomy through sustainability solutions, certification and partnerships.

SGS system to safeguard stored crops

Antioxidants are man-made or natural substances that may prevent or delay some types of cell damage. Diets high in vegetables and fruits are said to be good sources of antioxidants. Photo: Adobe Stock www.ofimagazine.com

Instrumentation Sept.Oct.indd 2

Global testing and inspection firm SGS has launched new technology to protect stored grains, oilseeds and other agricultural commodities from moisture, heat and insects. The Smart Warehouse used Internet of Things (IoT) technology and wireless sensor networks to detect fluctuations in temperature and moisture inside a stockpile, SGS said. Cables and sensors were installed deep into the commodity using pneumatic deep probe equipment, with sensors placed at different levels to monitor relative humidity, temperature and carbon dioxide levels. The CO₂ sensor system detected potential spoilage in stored commodities at an early stage, by detecting the CO₂ resulting from the biological activity of any insects or fungus in the stockpile. Data collected by the sensors was transmitted via mobile networks and the system could also be set up to communicate u with software controlling warehouse ventilation systems, SGS said. OFI – SEPTEMBER/OCTOBER 2021

14/09/2021 11:20:37

Alfa Laval centre tests marine biofuels

Swedish fluid handling, centrifugal and heat transfer company Alfa Laval announced earlier this year that it would start testing two new marine fuels – biofuels from waste and methanol – at its test and training centre in Denmark. “The International Maritime Organization (IMO) targets a 50% reduction of vesselrelated greenhouse gas emissions by 2050. To achieve the long-term target of decarbonisation, the industry must shift to new fuel types and technologies,” Alfa Laval said in March. The company said its 2,800m2 testing space in Aalborg – already equipped for oil and gas fuels – would test new fuels to

Device to test FAME content UK firm Spectrolytic has developed a portable analyser to measure the fatty acid methyl ester (FAME) content in biodiesel blends. The FAME% Analyser, using ATR Spectroscopy based on the ASTM D7371 standard, could provide results within minutes, with up to 500 measurements between battey charges, making it suitable for remote or portable tests, the firm said. Calibration files could be supplied for screening of blends up to B100 (100% FAME) samples, targeting specific FAME ranges. In Europe, the company said it had a calibration file suitable for a 7% upper limit of FAME content in biodiesel.

adapt and develop equipment for vessels. “A number of fuel pathways are on the table in the transition towards zero carbon shipping but the knowledge about their impact on marine equipment solutions is limited, said Sameer Kalra, president of the marine division. “We want to extend that knowledge through testing.” Test and training centre manager Lars Bo Andersen said that as biofuels were produced from many different sources using a wide range of production methods, the end product varied. “Even though producers aim to fulfil the ISO 8217 standard, fuel users may experience undesirable fuel behaviours,

such as corrosion of the fuel system.” Other issues included the fact that the relationship between heat and viscosity was hard to predict for biofuels, which meant the existing curves for heavy fuel oil (HFO) and low sulphur heavy fuel oil (LSHFO) did not apply. Alfa Laval said that since ships had a lifetime of 20 years or more, zero-emission vessels must begin entering the global fleet by 2030 for a 50% emissions reduction to be achieved by 2050. “It is predicted that in 2023, the world’s first carbon neutral liner vessel will be launched and that methanol-fuelled vessel will be ready for delivery in two years’ time.”

Romer launches on-site mycotoxin tests US diagnostic company Romer Labs has launched on-site tests for four commonly regulated mycotoxins in agricultural commodities. Mycotoxins were secondary metabolites of moulds, contaminating a wide range of crops and fruits, according to Romer Labs. Contaminated crops were toxic to humans and animals and more than 100 countries had established regulations for mycotoxins in food and feed to ensure safety. Romer Labs’ website said its AgraStrip Pro WATEX kits were available to test for total aflatoxin (B1, B2, G1, G2), deoxynivalenol, total fumonisin (B1, B2, B3) and zearalenone. The

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INSTRUMENTATION

company’s new AgraVision Pro reader automated timing, temperature and flow and allowed up to four samples to be tested simultaneously. Data management and reporting was facilitated by blockchain-enabled test strips.

All the mycotoxin kits shared a common, waterbased extraction and dilution procedure, eliminating the need for organic solvents that could harm both the user and the environment, according to the company.

New method used to simplify extra virgin olive oil analysis A team of researchers in Italy has developed a new method to identify 45 different chemicals in extra virgin olive oil (EVOO), Olive Oil Times reports. The researchers identified the best way to analyse each element while reducing the risk of faulty analysis due to dilution and sample manipulation – the physical movement of samples from one container to another, according to a paper which was published in Food Chemistry. The research evaluated how different sample pre-treatment methods could be applied to distinct elements, which was the best to use for each element and which 38 OFI – SEPTEMBER/OCTOBER 2021

Instrumentation Sept.Oct.indd 3

outcome could be expected. “We focused our research on looking for a very high number of elements within extra virgin olive oil,” said Maria Luisa Astolfi, a researcher at the Sapienza University of Rome’s chemistry department and one of the study’s authors. “Forty-five is a number that derives from traditional content analysis. To those elements, we added the search for traces no one has ever looked for.” The researchers used ICP-MS (inductively coupled plasma mass spectrometry), a technique which reduced sample dilution and manipulation, the May

Olive Oil Times report said. While normal quantities of arsenic, copper, iron and lead – all of which were commonly screened for – were detected in the samples, trace amounts of calcium, cobalt, copper, magnesium, manganese and nickel were also found. These six elements, along with iron, were known to impact the taste and oxidative stability of EVOO. The research opened up the possibility of studying specific characteristics of each analysed EVOO, such as geographical origin and could also help crackdown on EVOO adulteration and counterfeits, Olive Oil Times wrote.

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14/09/2021 11:20:48

STATISTICS STATISTICAL NEWS Palm oil fundamentals

The Mintec Benchmark Prices (MBP) for EU palm oil rose 10% month-on-month to €983/tonne on 31 August. The market continues to recover from price volatility in June due to continued uncertainty over resurgence of COVID-19, as fluctuations in the wider vegetable oils market shook confidence in the palm oil market. The market fell to €783/tonne on 14 June, the lowest level since mid-April. Market participants expect a decent upside for the palm oil market in August as production is likely to be affected by a continued labour shortage at palm oil plantations due to the ongoing coronavirus situation in Malaysia and Indonesia and a strengthening in the vegetable oil market, particularly soyabean oil. Additionally, end of July data from the Malaysian Palm Oil Board (MPOB) showed Malaysian palm oil inventories at 1.49M tonnes, down 7.3% month-on-month and against the market’s expectations of flat to marginally higher stocks. However, production in the 2021/22 marketing year is expected to be higher year-on-year, which will significantly cap price increases. The main drivers on the demand side continue to be pandemic recovery-related, while labour shortages and inventory levels drive the market on the supply side.

Palm oil production, consumption, stocks (million tonnes)

Tallow prices

Tallow and grease prices (US$/tonne)

The US tallow price spot price rose 6.15% month-onmonth to reach US$1,521/tonne on 31 August. The US white grease price also climbed 7.81% to US$1,521.2/ tonne over the same period. Prices have been supported during second quarter 2021 by strong export demand from China, which has exacerbated tighter supply in the current marketing year. With the ongoing recovery in the wider vegetable oils sector, demand is likely to remain firm, with prices accordingly supported over the coming months.

Sunflower oil prices

Sunflower oil prices (€/tonne)

Prices of selected oils (US$/tonne) Mar 21

Apr 21

May 21

Jun 21

Soyabean

1,220.0

1,369.2

1,427.1

Crude palm

1045.5

1,000.1

1,129.0

Palm olein

Jul 21

Aug 21

1,352.6

1,414.4

1,389.9

1,021.8

1,053.0

1,118.4

985.5

921.6

1,046.6

943.8

990.1

1,069.2

Coconut

1,527.8

1,554.0

1,633.9

1,580.5

1,522.5

1,456.6

Rapeseed

1,218.2

1,339.1

1,386.6

1,302.0

1,367.3

1,425.2

Sunflower

1,637.6

1,589.4

1,595.0

1314.5

1,213.0

1,297.7

Palm kernel

1,434.2

1,430.4

1,464.1

1,355.0

1,236.1

1,299.0

Average

1,296.0

1,315.0

1,383.0

1,267

1,257.0

1,294.0

307.0

312.0

328.0

300.0

298.0

307.0

Index

40 OFI – SEPTEMBER/OCTOBER 2021

Stats Sept.Oct.indd 1

The Mintec Benchmark Prices (MBP) for EU sunflower oil rose 1.35% to €1,085/tonne on 31 August. The market recovered slightly after falling almost 35% between midMarch and mid-June. With the significant price fall, EU sunflower products have become more attractive and their relative competitiveness against soyabean oil and rapeseed oil has increased. EU sunflower oil consumption for energy purposes is also expected to rise in the coming marketing year, adding to upward pressure on prices. However, an increase in expected production in the 2021/22 still poses a downside risk, with record sowing levels in both Ukraine and Russia during the 2021 planting period. Mintec provides independent insight and data to help companies make informed commercial decisions. Tel: +44 (0)1628 851313 E-mail: sales@mintecglobal.com Website: www.mintecglobal.com

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15/09/2021 09:20:53

OFI September/October 2021

Articles inside

World statistical data

Vietnam: bakery on the rise

Pressing matters

The growth of IP palm

Hurricane Ida disrupts

US soyabean exporters hit by

Bayer to halt residential sales

Eni, BASF to make bio propanol from glycerine

EU extends tariffs on US

Rising to the challenge

Climate alarm