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COLOMBIA

Palm oil potential

OLIVE OIL

Emerging countries develop output

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CONTENTS FEATURES OLEOCHEMICALS/SURFACTANTS

EDITORIAL:

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What next for Unilever after failed bid?

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NEWS

COMMENT

What next for Unilever after failed bid?

A

lthough Kraft Heinz has abandoned its US$143bn bid to buy Unilever in what would have been one of the biggest corporate deals in history (see story, below right), the move has been a wake-up call for Unilever’s management.

The foods industry is generally under pressure to boost margins, address slow growth and find new products that suit consumer desire for healthier foods.

Unilever has admitted that Kraft Heinz’s bid has “highlighted the need to capture more quickly the value we see in Unilever” and has promised a comprehensive review on its options, to be completed by early April.

Various paths face Unilever.

Perhaps it will dispose or spin off its food business or parts of it, such as its declining spreads unit, as several UK newspapers reported recently. It could look at potential acquisitions in the personal care sphere, where margins are higher. Kraft Heinz could even make a renewed bid for Unilever’s food and drinks business.

Unilever’s management will be under pressure to cut costs as its 15% operating margins lag well behind the 25%-30% levels generated by rivals such as Kraft Heinz, Reckitt Benckiser and Colgate-Palmolive, according to investor website The Motley Fool.

Kraft Heinz slashed more than 5,000 jobs following Heinz’s union with Kraft in 2015 (see news, OFI January 2016) and one of its owners – Brazilian investment firm 3G Capital – is known for taking over companies and aggressively cutting costs.

Heathlier image

In the world of big food and drink companies, Nestle is the largest packaged foods business by retail sales, according to Euromonitor International. Other big players include PepsiCo, Coca Cola, Mondelez, Mars, Unilever, Kraft Heinz and Kellogg Company.

These companies are under pressure to find products that have a fresher, healthier appeal or to improve the image of their existing products.

This has led to product reformulation – Nestle announced several years ago that it was reformulating its iconic Kit Kat chocolate bar in the UK and Ireland to reduce its saturated fat content (see News, OFI January 2014). While PepsiCo announced last October that it would significantly reduce the amount of sugar, sodium and fat in many of its products by 2025, saying at least 75% of its food products will have no more than 1.1g of saturated fat per 100 calories and no more than 1.3mg of sodium per calorie.

It has also led to acquisitions of smaller, faster-growing brands, says Associated Press. These include soft drinks giant Coca-Cola’s acquisition of coconut water brand Zico in 2013, and agreements in November by PepsiCo to buy fermented probiotic beverage supplier KeVita and by Dr Pepper to to buy Bai Brands, a maker of antioxidantrich drinks (see Vita Coco story, opposite page).

It means there will be plenty of mergers, acquisitions and deal-making in the near future. w

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Unilever facing fine for collusion S

outh Africa’s Competition Commission has recommended that global consumer goods company Unilever be prosecuted for colluding with Malaysian conglomerate Sime Darby in the manufacture and supply of baking and cooking products.

The commission said on 1 March that it had conducted search-andseizure operations at the offices of Sime Darby in Boksburg and at Unilever’s headquarters in Durban and had referred the two companies to the Competition Tribunal for prosecution, according to South Africa’s Business Report.

Commissioner Thembinkosi Bonakele said that between 2004 and 2013, Unilever and Sime Darby allegedly entered into an agreement not to compete on certain packs of margarine and edible oils.

When Unilever sold its refinery business to Sime Darby in 2004, the two companies concluded a sale-of-business agreement that included an arrangement on how specific goods would be allocated in certain markets, in contravention of the Competition Act. “The two agreed that Sime Darby would not supply industrial customers with packs of margarine that were less than 15kg, nor would it produce or supply 25 litre edible oils in markets where Unilever was active,” Business Report said. “In return, Unilever agreed not to supply industrial customers with its Flora brand of edible oils.”

Unilever could face a fine of 10% of its annual turnover.

Sime Darby had already settled with the commission last year, agreeing to pay a fine of ZAR35M (US$2.7M) for collusion and to invest ZAR135M (US$10.3M) in packaging and warehousing facilities that would compete with Unilever for retail customers, Business Report said.

The case comes in the wake of the Competition Commission raiding five top edible oil firms accused of price fixing (see News, OFI February 2017). These were Wilmar Continental Edible Oils and Fats, DH Brothers Industries (trading as Willowton Oil and Cake Mills), FR Waring Holdings, Africa Sun Oil Refineries and Epic Foods.

Kraft Heinz abandons Unilever bid

A

merican food giant Kraft Heinz has abandoned its takeover attempt of Anglo-Dutch rival Unilever in what would have been one of the biggest corporate deals in history.

Unilever had rejected Kraft Heinz’s US$143bn offer on 17 February, saying it saw “no merit, either financial or strategic”.

Just 48 hours later, Kraft Heinz announced it had “amicably” withdrawn its offer.

Michael Mullen, a Kraft Heinz spokesman, said in a BBC report that “our intention was to proceed on a friendly basis, but it was made clear Unilever did not wish to pursue a transaction.”

Unilever produces some of the best known food and personal care brands around the world, including Becel and Flora spreads

and cooking oils, Ben & Jerry’s and Magnum ice cream, Dove soap and Hellmann’s mayonnaise.

Kraft Heinz’s products include Krispy Kreme and Dunkin’ Donuts, Philadelphia cheese, Frito-Lay and Walkers crisps and Heinz ketchup.

Had the deal gone through, the combined company would have created the world’s second largest packaged foods business after Nestle SA, according to Bloomberg.

Kraft Heinz was formed in 2015 in a deal orchestrated by Heinz’s owners, the Brazilian investment firm 3G Capital, and billionaire investor Warren Buffett’s Berkshire Hathaway (see News, OFI June 2015). According to just-food, 3G typically targets companies where it believes it can improve margins by driving cuts.

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NEWS

Arrested Mafia suspects linked to olive oil export fraud I taly’s anti-mafia police arrested 33 suspects and seized about US$42.8M in assets in an operation targeting the Calabrian mafia’s Piromalli clan, whose illegal activities allegedly included exporting fake extra virgin olive oil, reports Business Standard.

Charges filed against the suspects included mafia association, attempted murder, drug trafficking, money laundering and fraud, the report on 26 January said.

According to Olive Oil Times, the Calabrian mafia or Ndrangheta, is believed to be the

wealthiest and most powerful criminal network in Italy, with the Piromalli believed to be a leading clan within that organisation.

“In addition to drug trafficking, authorities believe they’re major players in agromafia, including an elaborate olive oil scheme,” Olive Oil Times said.

Investigators allege that the Piromalli clan was importing olive pomace oil – extracted from already-pressed olive fruit pulp using chemical solvents – and labelling the cheaper product as extra virgin olive oil and exporting

it to the USA. The clan was able to carry out the fraud through its grip on the right people in the right places, including areas in and around the southern municipality of Gioia Tauro, including the region’s real estate, most of the food and agriculture businesses, and its strategically located port, Business Standard said.

They had also allegedly penetrated the distribution chains in the northern city of Milan and had taken over businesses that exported olive oil to the USA, the report said.

Vita Coco expands with new coconut milk product

T

he world’s largest coconutwater brand is launching a coconut milk product in the UK in March in a bid to become “all things coconut”.

Vita Coco – which already sells coconut water, coconut oil and flavoured coconut juices – was formed 13 years ago and expects to approach US$1bn in sales this year by expanding into new categories, according to a CosmeticsDesign.com report on 15 February.

The global market for coconut water hit US$2.2bn in 2016, up from US$533M five years earlier, according to Euromonitor International.

Vita Coco accounted for 46% of the US$889M market, more than triple the share of Zico, its next closest competitor, the CosmeticsDesign.com report

VITA COCO SELLS COCONUT WATER, JUICES AND OIL

said. The company was targeting consumers shunning soda, traditional juices and regular milk.

“Sales of regular milk declined in the USA between 2011 and 2016 but plant-based alternatives – including coconut milk – have surged 61%,” the report said.

Vita Coco CEO Michael Kirban

said the target audience for Vita Coco Coconut Milk was consumers drinking organic milk who wanted a non-dairy option that did not taste watered down.

The milk is created by mixing coconut water (made from the liquid inside green coconuts) with coconut cream.

Kirban said he expected to eventually sell the company to a strategic buyer.

Coca-Cola had bought stakes in juice company Suja Life, aloewater maker LA Aloe and lactosefree dairy company Fairlife, and acquired Zico in 2013, CosmeticsDesign.com said.

In November, PepsiCo announced the acquisition of KeVita, which makes fermented probiotic and kombucha beverages, and Dr Pepper agreed to buy Bai Brands for US$1.7bn.

China’s COFCO completes takeover of Nidera BV

C

hina’s COFCO International completed its full acquisition of Dutch trader Nidera BV on 28 February.

COFCO bought 51% of Nidera in 2014 and announced in August 2016 that it would acquire the remaining minority stake.

Nidera is a major international agribusiness, trading and originating grains, oilseeds, vegetables oils and oilseed meals. It also sells seeds and provides storage, processing and freight services.

The takeover of Nidera gives COFCO full ownership of two global agribusinesses – Nidera and COFCO Agri. COFCO Agri was formed following COFCO’s buyout of the Noble Group’s agricultural unit in March 2016 and trades and processes a wide range of agricultural products including grains, oilseeds, sugar, cocoa, coffee and cotton.

Jingtao (Johnny) Chi has been appointed the new CEO of Nidera effective immediately, having been

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named CEO of COFCO International and COFCO Agri earlier this year.

“Mr Chi will lead the teams towards the accelerated integration of Nidera and COFCO Agri into COFCO International,” COFCO said.

State-owned COFCO (China National Cereals, Oils and Foodstuffs Corporation) International is China’s largest edible oil producer and processor, with 13 oilseed processing plants and a crush capacity of more than 2M tonnes.

In recent years, COFCO has increased its acquisition of foreign assets in an attempt to create a global giant to rival the international ABCDs (ADM, Bunge, Cargill and Louis Dreyfus) (see ‘COFCO’s Global Expansion’, OFI January 2017). However, COFCO suffered several setbacks, including losing about US$200M due to the actions of a rogue Nidera trader and then discovering a US$150M hole in the accounts of its Brazilian unit.

IN BRIEF EUROPE: The European Commission (EC) has approved global agribusiness firm Bunge’s acquisition of two Cargill oilseed processing facilities with some 2M tonnes/year of capacity, in a deal first announced on 5 August last year (see News, OFI September/October 2016).

The EC concluded that the acquisition would raise no competition concerns because of the presence of several alternative competitors in the soyabean meal and oil markets, including importers, food. navigator said on 7 February.

The deal includes Cargill’s soya and rapeseed crush and soya oil refining facility in the Port of Amsterdam, as well as part of its bulk port terminal assets for the discharge and storage of raw materials for the crush plant. In France, it includes the soya and rapeseed crush facility in the Port of Brest.

INDONESIA: Belgian agroindustrial firm Sipef has agreed to buy 95% of Indonesian oil palm plantation operator PT Dendy Marker Indah Lestari (DMIL), located in Musi Rawas Utara, South Sumatra.

DMIL owns 6,562ha of cleared/planted oil palm, with potential to expand to 9,000ha, and a 25 tonnes/hour extraction mill which is Roundtable on Sustainable Palm Oil (RSPO)certified. Sipef said at the end of 2016, it had secured more than 11,000ha and cleared or planted more than 6,000ha in the Musi Rawas Utara area.

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NEWS

Zen-Noh takes stake in Amaggi-Dreyfus venture

B

razilian soyabean leader Amaggi Group and global trading giant Louis Dreyfus Co are selling a 33% stake in their Brazilian joint venture to Japan’s Zen-Noh Grain Brazil, making Zen-Noh an equal partner in the venture, Global AgInvesting reported on 17 January.

The Amaggi & LD Commodities joint venture was formed in 2009 to originate soyabeans and corn, finance farmers, and sell seeds, fertilisers, and agrochemicals in the Brazilian ‘Matopiba’ area, comprising the states of Bahia, Maranhão, Piauí and Tocantins.

IN BRIEF INDONESIA: The Complaints Panel of the Roundtable on Sustainable Palm Oil (RSPO) has ruled in favour of a complaint against palm oil giant, Wilmar International, finding that it illegally took land from the indigenous Kapa community without their consent, violated its sustainability standard and had not met the requirements of Indonesian law, Forest People’s Programme reported on 1 February. The Kapa community, who live in West Sumatra, filed its formal complaint against Wilmar in October 2014.

CHINA: Chinese corporation New Hope is planning to build its first soya crushing plant in Hebei province in a joint venture with agribusiness giant Cargill, reports Reuters.

New Hope and provincial state companies would own 51% of the 50,000 tonnes/day plant, and Cargill the remaining 49%, the 4 March, the report said.

New Hope is a top animal feed producer in China, with operations in agribusiness and food, chemicals, real estate, and finance and investment.

Reuters said New Hope’s annual sales topped US$13.83bn and it had plans to expand overseas, with a new European headquarters in the Netherlands and a US office.

It would mainly build factories in under-developed countries while focusing on acquisitions and partnerships in developed countries.

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closer to the Panama Canal than Santos – Brazil’s top port – giving it a geographic advantage for grain shipments to Asia.

Zen-Noh Grain Brazil is a subsidiary of Japan’s Zen-Noh Grain Corp, a subsidiary of Zen-Noh, one of the largest agricultural cooperatives in the world.

Zen-Noh exports about 13M tonnes of grain and soyabeans through its elevators in the Gulf region of the USA and has consolidated revenue of more than US$50.5bn through its supplying and marketing of agricultural products, according to Global AgInvesting.

Sime Darby to spin off plantations Ruchi Soya signs

S

ime Darby – one of the largest palm oil producers in the world – will be restructuring before spinning off of its plantations and property businesses.

In an announcement on 27 February, the Malaysian conglomerate said it planned to list two independent companies on the Malaysian stock exchange – Sime Darby Plantation Sdn Bhd and Sime Darby Property Berhad. Its industrial, motors, logistics and healthcare divisions would remain under Sime Darby Berhad (SDB). SDB will not own any stake in Sime Darby Plantation or Sime Darby Property.

Sime Darby is one of the largest companies on the Bursa Malaysia stock exchange with a market capitalisation of RM63bn (US$14bn) as at 24 February 2017.

It has operations in plantations, industrial equipment, motors, property and logistics, with plantations being its largest revenue generator. Its oil palm cultivation, harvesting and milling operations are spread across more than 600,000ha of planted areas in Malaysia, Indonesia, Liberia, Papua New Guinea and Solomon Islands, while its land bank currently stands at one million hectares across these five countries.

It produces around 2.4M tonnes/year or 4% of the world’s crude palm oil (CPO) output and also produces oleochemicals, biodiesel, other palm oil derivatives and renewables.

Sime Darby was formed in January 2007 when the ‘three Malaysian giants’ – Sime Darby, Guthrie and Golden Hope – merged into Synergy Drive, which was renamed Sime Darby in November 2007.

In its statement, Sime Darby said its restructuring would include the group’s borrowings, transfer of certain assets – including land – within the group, and capitalisation of inter-company loans.

Brazil to ease land purchase curbs

B

razil is planning to ease restrictions on foreign purchases of agricultural land in a bid to rekindle economic growth, according to a Reuters report on 2 February.

The bill was part of a series of wider reforms aimed at lifting Brazil out of its worst recession on record and would need to go before Congress, the report said.

Agriculture Minister Blairo Maggi said there was particular appetite from US soya producers

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The companies were aiming to capitalise on Louis Dreyfus’ trading experience with Amaggi’s expertise in production and logistics.

The joint venture also holds a 25% stake in the Tegram grain terminal at the Itaqui port in Maranhão, northern Brazil. The remaining 75% in the terminal, currently under development, is controlled by Switzerland’s Glencore Plc and Brazil’s NovaAgri and CGG Trading, according to Reuters.

The terminal would have a handling capacity of 5M tonnes/year of soyabeans and corn, Global AgInvesting said. It was 2,500 miles

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to buy Brazilian land.

However, the bill would seek to avoid land speculation and foreign investment funds buying vast swathes of territory only to leave it idle if commodity prices fell.

Maggi said reforms would look to support foreign investment in agricultural products with longer production cycles such as oranges, sugarcane and coffee. Restrictions could apply to soya, corn and other annual crops harvested the same year as they were planted.

processing deal

I

ndia’s Ruchi Soya Industries has signed a three-year agreement to process and pack edible oils supplied by consumer goods company Patanjali Ayurved, the Economic Times reported on 13 February.

“We have been looking at opportunities to explore optimal use of capacities for crushing, refining and packaging edible oils with various parties,” Ruchi Soya managing director Dinesh Shahra said. “We will be able to work with Patanjali to enable them to supply refined oils to the Indian market.”

Patanjali Ayurved currently supplies a range of consumer goods including food, health care, personal care and herbal care products and ayurvedic medicines.

Ruchi Soya CEO Satendra Aggarwal said the agreement with Patanjali Ayurved would cover the processing and packing of soya, sunflower and mustard oils at Ruchi’s plant in Baran, Rajasthan.

“In the near future, the processing and packing will be extended to other locations and will include more varieties of edible oils as well,” he said.

The Economic Times said Ruchi Soya had the largest edible oil refining capacity in India of 3.3M tonnes/year across 13 facilities.

The company is the leading manufacturer and marketer of edible oils, soya food, premium table spreads, vanaspati and bakery fats in the country with leading brands including Nutrela, Mahakosh and Ruchi Gold oils.

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BIOFUEL NEWS

IN BRIEF SWEDEN: Swedish carrier BRA says that one of its ATR 72-600 planes flew from StockholmBromma to Umeå on 1 February, fuelled with 45% used cooking oil biofuel, making it the first ATR aircraft flight powered by biofuel. BRA serves 12 Swedish regions from its main hub of Stockholm-Bromma.

HONG KONG: Cathay Pacific plans to switch to biofuels made from landfill waste on select long-haul flights starting in 2019, the South China Morning Post reported on 30 January.

Cathay flights to Hong Kong from the USA – where the new fuel is produced – would use a combination of conventional jet fuel and biofuels starting in 2019, with the airline hoping to cut emissions on those flights by 80%, the report said.

In 2014, Cathay invested in US-based sustainable biofuel developer Fulcrum BioEnergy, which converts municipal solid waste into aviation fuel.

FINLAND: Petroleum and renewable diesel producer Neste Corp is considering building new capacity in Singapore or the USA as it reports its most profitable year yet, according to a Biodiesel Magazine article on 9 February.

Neste recorded an operating profit of €469M and said its renewable products division had its largest full-year profit contribution.

Neste president and CEO Matti Lievonen said the company planned to debottleneck existing production capacity from 2.6M tonnes to 3M tonnes by 2020, and build new capacity, with locations in the USA and Singapore under reivew.

Neste produces its NEXBTL hydro-treated renewable diesel (HVO) in Finland, Singapore and the Netherlands.

Some 78% of its feedstock was waste and residue in 2016 and the aim was to increase this, aided by acquisition of a new feedstock pretreatment facility in the Netherlands.

Abengoa sells off its remaining four European bioethanol plants

P

rivate equity firm Trilantic Europe has agreed to purchase struggling Spanish renewable energy company Abengoa’s four bioethanol plants in Spain and France.

Included in the sale are the Cartagena, La Coruña and Salamanca locations in Spain and the Lacq plant in France.

The €140M (US$150.6M) deal, including the debt assumed by the buyer and the minority interests, was expected to close once “a number of conditions precedent” had been met, Abengoa said in a statement on 16 March.

The Trilantic agreement,

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assets in 2016 after declaring bankruptcy.

The company’s last US plant was the Hugoton, Kansas, ethanol facility sold to Synata Bio for US$48M, which beat oil juggernaut Royal Dutch Shell’s US$26M offer (see Biofuels News, OFI November/December 2016).

Green Plain Inc bought Abengoa’s Madison, Illinois; Mount Vernon, Indiana; and York, Nebraska, plants for US$237M, while its Ravenna Nebraska was sold to KAAPA Ethanol LLC for US$115M and the Colwich, Nebraska facility to ICM Inc for US$3.15M (see Biofuels News, OFI September/October 2016).

US producers call for action on China’s DDGS tariffs

T

hree US grain and ethanol industry groups have written to US president Donald Trump urging him to address China’s increased tariffs on US ethanol and its by-product – distillers’ dried grains (DDGS) (see Biofuel News, OFI February 2017).

“China’s recent actions are significantly injuring US ethanol producers and farmers,” the Renewable Fuels Association (RFA), Growth Energy and the US Grains Council wrote in a letter on 7 February.

“We respectfully request that your administration place the Chinese government’s injurious trade barriers against US ethanol and DDGS near the top your China trade agenda.”

In January, China announced that anti-dumping duties on DDGS – used for animal feed – would range from 42.2%-53.7%, up from 33.8% in its preliminary decision in September. Anti-subsidy

tariffs would range from 11.2%-12%, up from 10%10.7%. This followed an earlier decision to increase tariffs on imported US ethanol from 5% to 30%.

The three groups wrote that in 2015, China imported 6.5M tonnes of US DDGS worth US$1.6bn, accounting for 51% of total US DDGS exports.

“By the end of 2016, China had also become the US ethanol industry’s third-largest export market, receiving nearly 20% of total exports. Nearly 200M gallons of ethanol worth more than US$300M were shipped to China last year,” they wrote.

The three groups said China’s recent actions had contributed to sharply lower prices for both ethanol and DDGS. “Ethanol prices have plummeted 15% since mid-December 2016, as Chinese buyers have cancelled shipments. Today, DDGS prices are approximately 40% lower than in June 2016.”

Petrobras completes sale of stake in Guarani

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razil’s state-run oil company Petrobras completed the sale of its 45.9% stake in sugar and ethanol producer Guarani to France’s Tereos International for US$202.8M on 3 February as it exits the biofuels sector to reduce its debts (see Biofuel News, OFI February 2017).

Petrobras said the deal was completed after Tereos made the cash payment and fulfilled all the conditions set out in their sales contract signed on 28 December.

Guarani is one of the leading companies in the Brazilian sugar and ethanol market, ranked third among the largest sugar producers in the country.

It has eight industrial units – seven in Brazil (with a combined production capacity of 1.7M tonnes of sugar and 900M litres/year of ethanol) and

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alongside others that the company said were in advanced stages of negotiations, culminates Abengoa’s viability plan to sell all of its European biofuel assets.

In the past months, Abengoa has announced its agreement with Ericsson for the sale of its subsidiary Abentel, its participation in the solar thermal plant Shams-1 in the United Arab Emirates, as well as the Campo Palomas wind farm in Uruguay.

In early March, Spanish energy company Cepsa purchased Abengoa’s San Roque plan in Spain for €8M (US$8.6M) Abengoa also sold off its US

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one in Mozambique.

Petrobras has also agreed to sell its 49% stake in sugar and ethanol joint venture Nova Fronteira Bioenergia SA to its partner São Martinho SA. According to Platts, the Guarani sale was part of five asset sales allowed to move forward by Brazil’s Federal Audit Court (TCU), which was conducting a review of Petrobras’ divestment programme. In December, the TCU prohibited Petrobras from signing any new sales contracts until the review had been completed.

Petrobras said it had sold US$13.6bn of assets in 2015-2016, below the US$15.1bn target set for the two-year period. Its divestment target in 20172018 is US$21bn, up from the original target of US$19.5bn.

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BIOTECH NEWS

EC gives green light to DuPont-Dow merger

T

he European Commission (EC) has granted conditional regulatory clearance in Europe to the proposed merger of US chemical giants DuPont and the Dow Chemical Company.

The EC’s approval took the companies closer towards closing the merger, with the ultimate intention of creating three independent publically traded companies, Dow said in a statement on 27 March.

The transaction was expected to create approximately US$3bn worth of cost synergies, and the companies also expected to see US$1bn in growth synergies.

The EC’s clearance was conditional on DuPont and Dow fulfilling the commitments they had given to it in connection with the

IN BRIEF CHINA: The Supreme People’s Court of China has ruled in Novozymes’ favour in a trial against two competitors accused of infringing its enzyme patent in a “landmark verdict”, the Denmark-based biotech firm reported on 16 February.

The patent dispute began in 2011 when Novozymes found evidence that Shandong Longda Bio-Products Co Ltd and Jiangsu Boli Bioproducts Co Ltd were producing and selling a proprietary Novozymes glucoamylase enzyme for the bioenergy and beverage industries, violating one of Novozymes’ Chinese patents.

In 2012 and 2013, two courts in Tianjin ordered Longda and Boli to stop making and selling the products and pay statutory damages totaling RMB1.7M (US$0.25M).

Longda and Boli appealed, and the case eventually received the Supreme People’s Court of China’s verdict, which was final and could not be appealed.

Novozymes’ general counsel Mikkel Viltoft said the company wished “to commend the Chinese patent and court system for taking an important step towards protecting biotech innovations”.

“This landmark verdict shows that China is serious in its efforts to protect intellectual property rights.”

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division would retain its parents’ crop protection assets, including a portfolio in corn and soya broadleaf and grass control and cereal weed control, alongside DuPont’s position in disease control and Dow AgroScience’s insecticide portfolio.

The companies said their new agriculture division would be “well positioned to accelerate growth, leveraging strong pipelines in both seeds and chemistry”.

DuPont and Dow said they intended to continue working with regulators in the remaining relevant jurisdictions to obtain clearance for the merger, which was first announced in December 2015 (see OFI Biotech News, January 2017).

EU states reject cultivation of three new GM crops

E

U member states have rejected a European Commission (EC) proposal to authorise the first new GM crops for cultivation since the late 1990s, reported FoodIngredientsFirst on 30 January.

The EC had proposed to allow two GM maize types for growing from Syngenta and Dow-Pioneer – BT11 and 1507 – as well as renewing the only GM maize currently approved for cultivation in Europe, Monsanto’s Mon810.

The three crops had been genetically modified to produce insecticide in their cells and the two new maize types could tolerate Bayer’s glufosinate herbicide, FoodIngredientsFirst said.

A majority of national governments rejected the proposal but failed to get the qualified majority (55% of member states representing 65% of the population) necessary to ban the crops outright.

Mute Schimpf, food campaigner for Friends of the Earth Europe, said in the FoodIngredientsFirst report: “President Jean-Claude Juncker promised to

make decisions about GM crops more democratic, and so it is now time for the Commission to reject them once and for all.

“This saga is distracting us from the real debate we need on how we make farming resilient to climate change, save family farms and stop the destruction of nature.”

FoodIngredientsFirst reported that 12 member states voted against and 10 for the renewal of Mon810.

For the authorisation of BT11 and 1507, 13 countries voted against, eight countries voted in favour and seven abstained.

Under EU rules, the EC could now either reject the GM authorisations, change their details and ask governments to vote again, or send them to an appeal committee.

The EC is the EU’s politically independent executive arm and is responsible for drawing up proposals for new European law.

Bayer and Monsanto to sell assets worth $2.5bn

G

erman chemicals giant Bayer AG and US seeds company Monsanto are reportedly selling assets worth some US$2.5bn as they seek regulatory clearance for their US$66bn merger.

A 9 March Reuters report quoted people close to the matter as saying that Bayer’s advisors would be sending out information packages to potential bidders for businesses divided into three bundles of assets.

The businesses potentially included soyabean, cotton and canola seed assets as well as LibertyLink-branded crops

19-20 MAY 2017 OILS & FATS INTERNATIONAL INDIA 2017

approval, according to the statement.

DuPont said it would divest its cereal broadleaf herbicides and chewing insecticides portfolios, along with its crop protection R&D development pipeline and organisation, excluding seed treatment, nematicides, and late-stage R&D programmes.

On 2 February, Dow signed an agreement with SK Global Chemical Co Ltd to divest its global ethylene acrylic acid copolymers and ionomers business.

Both companies’ divestitures were conditioned on them closing their merger transaction, in addition to other prerequisite closing conditions.

The newly merged company’s agricultural

Bombay Convention & Exhibition Centre (BCEC) Mumbai

resistant to Bayer’s glufosinate herbicide, an important alternative to Monsanto’s Roundup Ready seeds, Reuters said.

They comprised different active ingredients in severa global regions.

“Bayer and Monsanto have said in the past that they expect to divest activities with combined sales of up to US$1.6bn,” the report said.

Bayer indicated in February that it expected to complete its takeover by the end of the year. CEO Werner Baumann told journalists in Leverkusen,

Germany, that it would only seek EU approval next quarter after regulators asked for more information, Bloomberg reported.

Bayer was also responding to a second request from the US Department of Justice.

Reuters said the regulatory hurdles were believed to be manageable as Bayer’s main business in agriculture was pesticides as opposed to Monsanto’s genetically modified seeds.

Bayer first announced its purchase of Monsanto on 14 September 2016.

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TRANSPORT & LOGISTICS NEWS

Bahri and Bunge in ocean freight venture lobal agribusiness and food company Bunge and Saudi Arabia’s national shipping arm, Bahri Group, have agreed to form an ocean freight joint supplier for dry bulk import and export flows in and out of the Middle East region, the companies announced on 22 February.

The joint venture between subsidiaries Bahri Dry Bulk Company (BDB) and Koninklijke Bunge BV would operate under the name Bunge Bahri Dry Bulk Ltd and provide exclusive freight transportation services to regional and other international customers.

The company plans to ship over 5M tonnes of cargo in year one, ramping up volume over time to double-digit figures, with BDB and Bunge owning 60/40%, respectively, of the joint venture.

It will charter and commercially operate Supramax, Panamax or other suitably sized dry bulk

IN BRIEF CANADA: Viterra Inc plans to build a new high throughput elevator in Vegreville, Alberta state, after receiving all regulatory approvals, the company announced on 13 February.

Construction on the new facility is expected to begin within the next few months.

Viterra said the elevator would have a storage capacity of 35,000 tonnes, and would be able to load up to 130 railcars through a loop track that would be serviced by CN Rail.

PHOTO: BAHRI GROUP

G

THE BAHRI GROUP CURRENTLY OWNS 84 VESSELS INCLUDING FIVE DRY BULK CARRIERS

vessels, initially from the fleet currently owned or managed by BDB and subsequently from third parties.

“Bunge is excited to partner with BDB to strengthen our presence in the Middle East,” said Brian Thomsen, managing director, Bunge global agribusiness and CEO, Bunge product lines.

“We expect the joint venture to become a carrier of choice for customers importing grains and other agricultural commodities

in the Middle East, as well as for dry bulk exports outside of the region. The joint venture combines Bunge’s expertise in providing freight services and risk management with BDB’s unique knowledge of Middle Eastern customers and their needs.”

“This joint venture is one of BDB’s initiatives to reduce complexity for our customers along the value chain,” said Bahri CEO Ibrahim Al-Omar.

“Working with a leading global

player in commodity trading brings the necessary commercial and market intelligence to dry bulk supply and demand fundamentals, and Bunge brings crucial expertise and scale to the table.”

BDB is a 60/40 joint venture between the Bahri Group and Arabian Agricultural Services Company, a leading bulk carrier in Saudi Arabia specialising in the transport of grain, coal, barley and other dry bulk cargoes.

The Bahri Group operates six business units that include oil, chemicals, logistics, dry bulk, ship management and data. It is the world’s second largest owner of Very Large Crude Carriers (VLCCs), and the largest owner of chemical tankers in the Middle East.

It currently owns 84 vessels, including 37 VLCCs, 36 chemical/ product tankers, six multi-purpose vessels and five dry bulk carriers, with an additional nine VLCCs on order.

Cargill expands storage in Egypt’s Daqahleya port

U

S agribusiness giant Cargill is developing projects in Egypt including investments to expand storage at Daqahleya port and to produce vegetable oils at Borg El-Arab, reports the Daily News Egypt on 12 February.

Minister of Industry and Trade Tarek Kabil had met a Cargill delegation in February and company was currently developing its grain storage projects in Daqahleya port with new investments of US$10M to add storage capacity of 42,000 tonnes, a press release by the ministry said.

The statement added that Cargill was currently implementing new investments to expand production of vegetable oils in Borg El-Arab, an industrial city 45km south-west of Alexandria.

These expansions were to be completed in October.

The press release quoted Roger Johnson, Cargill regional director for Europe and the Middle East, as saying that the company would inject more funds into Egypt to boost current investments of US$300M. Johnson said Egypt had great investment opportunities in agriculture, food and grain storage, and transport logistics.

He said in the press release that Cargill was seeking further cooperation with the government agencies concerned with food safety standards, in order to expand cooperation between the company and the Egyptian government to supply grain and agricultural products to the Egyptian market.

Drone company to track polluting emissions from commercial ships

D

rone company Coptrz has enabled its sister company Martek Marine to win a ship emissions assessment contract from the European Maritime Safety Agency worth £8.5M (€10M).

The company’s drones would be deployed to track commercial ships, measuring the amount of sulphur and CO2 pollution they emit.

Martek Marine fronted the bid, and Coptrz provided expert consultancy, strategies,

19-20 MAY 2017 OILS & FATS INTERNATIONAL INDIA 2017

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hardware and technical support needed to submit and win the tender, Coptrz said in a press release on 2 February.

It was expected that the project would start in the spring.

Coptrz was created by a group of experienced drone operators from the global shipping industry and began trading in May 2016.

The group said it realised the huge potential

of the technology to revolutionise parts of many different sectors.

The global shipping industry currently emits 1,000M tonnes of CO2/year, meaning it is responsible for 2.5% of global greenhouse gas emissions (see ‘Biofuel potential for global shipping’, OFI November/December 2016).

Some 60M tonnes of vegetable oils are shipped around the world as part of global seaborne trade.

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R E N E WA B L E M AT E R I A L S N E W S

CSIRO transforms soya oil into graphene

cientists from Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) have developed a new technology to transform soyabean oil into graphene.

Graphene is a carbon material that is one atom thick. Its thin composition and high conductivity means it is used in applications ranging from miniaturised electronics to biomedical devices. These properties also enable thinner wire connections, providing benefits for computers, solar panels, batteries, sensors and other devices.

“Until now, the high cost of graphene production has been the major roadblock in its commercialisation,” CSIRO said in a press release on 31 January. “Previously, graphene was made in a highly-controlled environment with explosive compressed gases, requiring long hours of operation at high temperatures and extensive vacuum processing.”

CSIRO scientists have developed a new

IN BRIEF ITALY: Process engineering company Desmet Ballestra Group has reached an agreement with Italian financial company Sagittario SpA to acquire Mazzoni LB spa soap and detergent operations.

Desmet said the deal closed on 15 March 2017 and included the detergent industry machinery and plant manufacturer IIT. Mazzoni is a designer and supplier of soap production plants and equipment, developing and providing specialised solutions for the soap industry, as well as for oleochemicals.

IIT, founded in 1976, was recently acquired by Mazzoni, and has know-how in sulphonation plants and relevant critical equipment, which extend the solution range currently offered

by Desmet Ballestra.

De Smet said Mazzoni and IIT would benefit from its strong commercial and marketing resources, as well as its technical support network.

The present Mazzoni management remains unchanged to facilitate the integration of the two companies’ operations.

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CSIRO SCIENTIST DR DONG HAN SEO HOLDING A PIECE OF GRAPHENE FILM

‘GraphAir’ technology that eliminates the need for such a highly-controlled environment. The technology grows graphene film in ambient air with a natural precursor, making its production faster and simpler.

“This ambient-air process for graphene fabrication is fast, simple, safe, potentially scalable, and integration-friendly,” CSIRO

scientist Dr Zhao Jun Han said. “Our unique technology is expected to reduce the cost of graphene production and improve the uptake in new applications.”

CSIRO scientist Dr Dong Han Seo said their GraphAir technology resulted in graphene properties comparable to graphene made by conventional methods.

As well as soyabean oil, the CSIRO team have also transformed other types of renewables, and even waste oils, into graphene films.

CSIRO said graphene had excellent electronic, mechanical, thermal and optical properties. Its uses ranged from improving battery performance in energy devices, to cheaper solar panels. Other potential applications included water filtration and purification, renewable energy, sensors, personalised healthcare and medicine.

CSIRO said it was now looking for an industry partner to find new uses for graphene.

Venture to produce algae-based renewable inks

U

S algae oil producer Cellana Inc has teamed up with Living Ink Technologies, USA, to develop and commercialise inks containing Cellana’s renewable algae biomass.

“Living Ink’s sustainable algae-derived ink will replace conventional ink that uses petroleum products and other finite chemicals, most of which are toxic,” Cellana said in a press release on 7 February.

Under their agreement, Cellana will supply Living Ink with whole algae biomass from its Kona demonstration facility in Hawaii.

“We are excited to find a commercial source of sustainably grown algae to fuel the expansion of our company,” said Scott Fulbright, CEO of Living Ink. “This new commercial relationship will help accelerate Living Ink’s product development and initiatives to produce and sell a

range of different renewable inks and print products containing renewable ink.”

Cellana utilises marine microalgae to produce its ReNew line of Omega-3 EPA and DHA oils, animal feed/food and biofuel feedstocks.

The company said it planned to construct and operate commercial facilities to produce these products as integrated algae-based biorefineries.

Unilever pledges to do more on plastic packaging

G

lobal consumer goods company Unilever announced on 14 January that it would ensure that all of its plastic packaging is fully reusable, recyclable or compostable by 2025 as it called on the entire fast-moving consumer goods industry to accelerate progress towards the circular economy.

“According to the Ellen MacArthur Foundation, just 14% of the plastic packaging used globally makes its way to recycling plants, while 40% ends up in landfill and a third in fragile ecosystems,” Unilever said.

“By 2050, it is estimated there will be more plastic than fish in the world’s oceans.”

To help transform global plastic packaging material flows, Unilever has committed to: t Ensuring all of its plastic packaging is designed to be reusable, recyclable or compostable by 2025. t Publishing a full ‘palette’ of plastics materials used in its packaging by 2020 to help create a plastics

19-20 MAY 2017 OILS & FATS INTERNATIONAL INDIA 2017

PHOTO: CSIRO

S

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protocol for the industry. t Investing in proving and sharing a technical solution to recycle multi-layered sachets, particularly for coastal areas which are most at risk of plastics leaking into the ocean.

Unilever said it had already committed to reduce the weight of its packaging this decade by a third by 2020, and to increase its use of recycled plastic content in its packaging to at least 25% by 2025 against a 2015 baseline.

“Our plastic packaging plays a critical role in making our products appealing, safe and enjoyable,” Unilever CEO Paul Polman said. “Yet it is clear that if we want to continue to reap the benefits of this versatile material, we need to do much more as an industry to help ensure it is managed responsibly and efficiently post consumer-use.”

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Getting the best out of your seeds is our ambition.

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Meet us at Smart Short Courses, April 12-13, 2017, Izmir, Turkey, and OFI India, May 19-20, 2017, Mumbai, India

DIARY OF EVEN TS

26-27 APRIL 2017

31 MAY - 3 JUNE 2017

7th European Algae Industry Summit VENUE: Nice, France CONTACT: Jasmine Okure, ACI, UK Tel: +44 203 141 0647 E-mail: jokure@acieu.net Website: www.wplgroup.com/aci/event/ european-algae-industry-summit/

17th EFPRA Congress 2017 VENUE: Empire Riverside Hotel Hamburg, Germany CONTACT: INTERPLAN Congress, Meeting & Event Management AG, Germany Tel: +49 40 32 50 92 57 Fax: +49 40 32 50 92 44 E-mail: efpra2017@interplan.de Website: www.efprahamburg2017.com

27-28 APRIL 2017 4th Annual Congress and Expo on Biofuels and Bioenergy VENUE: Dubai International Convention and Exhibition Centre, UAE CONTACT: ConferenceSeries LLC, USA E-mail: biofuelsconference@chemseries.com Website: http://biofuels-bioenergy. conferenceseries.com/middleeast/

30 APRIL - 3 MAY 2017 108th AOCS Annual Meeting VENUE: Rosen Shingle Creek, Orlando Florida, USA CONTACT: AOCS Meetings Department, USA Tel: +1 217 6934821 Fax: +1 217 6934865 E-mail: meetings@aocs.org Website: www.annualmeeting.aocs.org

11-12 MAY 2017 OTAI-FSSAI Conference: 1st Summit on Compliance Across Food Value Chain VENUE: Taj Palace, New Delhi, India CONTACT: Ajay Singh, coordinator Tel: +91 9811 1133 85 E-mail: ajay@otaiconference.com Website: www.otaiconference.com

17-19 MAY 2017 7th ICIS World Surfactants Conference VENUE: Hyatt Regency, Jersey City, USA CONTACT: Georgina Shillito, conference producer, ICIS, UK Tel: +44 20 8652 3641 E-mail: georgina.shillito@rbi.co.uk Website: www.icisconference.com/ worldsurfactants

19-20 MAY 2017 OFI India 2017 VENUE: Bombay Convention and Exhibition Centre (BCEC), Mumbai, India CONTACT: Mark Winthrop-Wallace, sales manager, OFI, UK Tel: +44 1737 855 114 E-mail: markww@quartzltd.com Website: www.ofievents.com/india

For a full listing of oils and fats industry events, go to: www.ofimagazine.com

27-30 AUGUST 2017 15th Eurofedlipid Congress VENUE: Uppsala Konsert & Kongress Uppsala, Sweden CONTACT: Eurofedlipid, Germany Tel: +49 69 79 17 533 Fax: +49 69/79 17-564 E-mail: info@eurofedlipid.org Website: www.eurofedlipid.org/meetings/ malmoe2017/index.php

18-21 JUNE 2017 7th International Conference on Algal Biomass, Biofuels and Bioproducts VENUE: Hyatt Regency Hotel, Miami Florida, USA CONTACT: Janet Seabrook, Elsevier Conferences, UK. Tel: +44 1865 843691 E-mail: JM.Seabrook@elsevier.com Website: www.algalbbb.com

18-23 JUNE 2017 FOSFA Middle Managers Course VENUE: Royal Holloway, University of London, UK CONTACT: FOSFA International, UK. Tel: +44 207 374 2346; E-mail: amy.morrell@fosfa.org Website: http://www.fosfa.org/events/ middle-managers-course/

28-29 JUNE 2017 Oleofuels 2017 VENUE: Kraków, Poland CONTACT: Marta Kielerska, ACI, Poland Tel: +48 61 6467058 E-mail: mkielerska@acieu.net Website: www.wplgroup.com/aci/event/ oleofuels/

2-5 JULY 2017 8th European Symposium on Plant Lipids VENUE: Scandic Hotel Triangeln Malmö, Sweden CONTACT: Eurofedlipid, Germany Tel: +49 69 7917 345 Fax: +49 69 7917 564 E-mail: amoneit@eurofedlipid.org Website: www.eurofedlipid.org/meetings/ malmoe2017/index.php

11 JULY 2017 23rd MPOB Transfer of Technology Seminar and Exhibition 2017 VENUE: Malaysian Palm Oil Board (MPOB) Head Office, Bangi, Selangor, Malaysia CONTACT: HRD & Conference Management Unit, MPOB, Malaysia. Rubaah Masri, Tel: +60 3 87694567; E-mail: rubaah@mpob.gov.my or Salmah Hussin, Tel: +60 3 87694873 E-mail: salma@mpob.gov.my Website: www.mpob.gov.my/en/events/ conferences-seminars/28233-23rd-mpobtransfer-of-technology-seminar-2017-11july-2017

3-8 SEPTEMBER 2017 FOSFA Basic Introductory Course VENUE: Royal Holloway, University of London, UK CONTACT: FOSFA International, UK Tel: +44 207 374 2346 E-mail: amy.morrell@fosfa.org Website: http://www.fosfa.org/events/ basic-introductory-course/

5-6 SEPTEMBER 2017 4th High Oleic Oils International Congress VENUE: Bucharest, Romania CONTACT: FAT & Associés, France Tel: +33 567 339 206 Fax: +33 567 339 203 Website: http://higholeicmarket.com/ hoc-2017/

11-14 SEPTEMBER 2017 17th AOCS Latin American Congress and Exhibition on Fats and Oils VENUE: Grand Fiesta Americana Coral Beach Hotel, Cancun, Mexico CONTACT: AOCS Meetings Department, USA Tel: +1 217 6934821 Fax: +1 217 6934865 E-mail: meetings@aocs.org Website: http://annualmeeting.aocs.org

12-14 SEPTEMBER 2017 oils+fats International Trade Fair for Technology and Innovations VENUE: Messe München, Munich, Germany CONTACT: Messe München, Germany Tel: +49 89 94911328 E-mail: info@oils-and-fats.com Website: www.oils-and-fats.com/index-2.html

22-23 SEPTEMBER 2017 1st Indian Surfactants Conference VENUE: Mumbai, India CONTACT: ICIS, UK. Inara Mironova, senior conference producer, ICIS, UK Tel: +44 20 7911 3134 E-mail: inara.mironova@icis.com Website: www.icisconference.com/ indiansurfactants2017

14 OFI – MARCH/APRIL 2017 www.ofimagazine.com

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DI ARY O F E V E NT S

www.dsengineers.com

OFI India 2017 19-20 May 2017, Mumbai

O

FI India 2017 will be held on 19-20 May 2017 at the Bombay Convention and Exhibition Centre in Mumbai and features:

t An international exhibition of suppliers, producers and processors t The OFI India 2017 Business Congress & SOPA Soya Conference: ‘New Strategies, New Approaches’ t A Smart Short Course technical programme: ‘Oilseed and Oil Processing Technology – ‘Focus on Cotton Seed, Mustard Seed, Sunflower Seed and Rice Bran Oil’

For sales & sponsorship, contact:

Mark Winthrop-Wallace, Sales Manager E-mail: markww@quartzltd.com. Tel: +44 (0) 1737 855 114 Anita Revis, Sales Consultant E-mail: anitarevis@quartzltd.com. Tel: +44 (0) 1737 855 068 Nikunj Vishwakarma, India Sales Executive E-mail: nikunj@quartzltd.com. Tel: +91 6735 1022, +93 7351 7070

www.ofievents.com/india 3-5 OCTOBER 2017 PALMEX Indonesia VENUE: Santika Premiere Dyandra Hotel & Convention, North Sumatra, Indonesia CONTACT: PT Fireworks Indonesia. Tel: +62 21 26051028 or +62 21 26051029; E-mail: info@asiafireworks.com Website: www.palmoilexpo.com

23-27 OCTOBER 2017 National Renderers Association 84th Annual Convention VENUE: Ritz-Carlton, San Juan, Puerto Rico CONTACT: Marty Covert, National Renderers Association, USA Tel: +1 703 683 0155; E-mail: co@martycovert.com Website: www.nationalrenderers.org/events/calendar

31 OCTOBER 2017 FOSFA Annual Dinner VENUE: Hilton Antwerp Old Town, Belgium CONTACT: FOSFA International, UK. Tel: +44 (0)207 374 2346 E-mail: gemma.hale@fosfa.org; Website: http://www.fosfa.org/

Serving the Vegetable Oil Industry From Basic Engineering to Full Turnkey Project Single Point Responsibility through EPC or EPCM+® with guaranteed: � Process Performances � Time Schedule � Budget

30-31 OCTOBER 2017 9th International Symposium on Deep-Fat Frying VENUE: Shanghai, China CONTACT: Chinese Cereals and Oils Association (CCOA) Tel: +86 10 68357511; Fax: +86 10 68357511 E-mail: wcf@ccoaonline.com; Website: www.ccoaonline.com www.eurofedlipid.org/meetings/shanghai2017/index.php

14-16 NOVEMBER 2017 PIPOC 2017 VENUE: Kuala Lumpur Convention Centre, Kuala Lumpur, Malaysia CONTACT: Malaysian Palm Oil Board (MPOB) E-mail: pipoc2017@mpob.gov.my; Website: http://pipoc.mpob.gov.my 15 OFI – www.ofimagazine.com

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Engineers & Contractors Brussels • Belgium Tel.: +32 (0)2 634 25 00 Fax: +32 (0)2 634 25 25 info@dsengineers.com

Reliability through Experience

24/03/2017 12:10

I NTE RN ATION AL M ARKET REVIEW

Slowdown expected CHARTS: JOHN BUCKLEY

Overall worldwide vegetable oil prices are turning down amidst a heavily supplied market.

Meanwhile, demand for certain products – such as sunflower oil – is on the rise. John Buckley writes

FIGURE 1: VEGETABLE OIL PRICES, MONTHLY AVERAGES (US$/TONNE)

C

hicago soya futures have held their value remarkably well, given the abundantlysupplied market for the oilseed in the current season and recent forecasts for another record US planting campaign for the 2017/18 crop year that starts in September.

Most of the major vegetable oil markets, on the other hand, now seem to be turning ‘south’ pricewise amid a general picture of adequate supplies.

Much of that trend has been down to the competition inevitably developing between a record large, cheap soya oil supply versus palm oil, its leading rival for the import trade that services over 40% of world vegetable oil consumption.

Demand for palm has also been slowed by second largest importer China’s reduced import needs this season, as it fills more of its oil consumption from domestic crush, albeit from imported soyabeans, and by releases from its huge strategic stockpile of rapeseed oil.

Although top palm oil oil importer India’s domestic oilseed crop is expected to increase quite sharply this season, its demand for palm oil is still expected to grow. However, a steep drop of almost a quarter in imports of Malaysian palm oil by both Asian giants in the past year has kept the Kuala Lumpur futures market for the oil on the defensive.

Prices there have recently dropped to three-month lows. In dollar terms, that market has recently been trading over 10% below its December levels.

Three key fundamental forecasts that were shaping up at the end of 2016 are still dominating market sentiment, contributing to a mixed outlook as this issue goes to press. These are the likelihood of a further – possibly big – expansion in soyabean supplies, palm oil production’s expected major recovery from last season’s El-Niño-linked drought decline, and a probable fourth year of stalled rapeseed production.

The contrasts above are sharpened by the fact that soya’s ample supply is likely to be enhanced by record leftover stocks from this season, whereas stocks of palm and rapeseed oils will be at unusually low levels after a couple of years of drawing these down to meet demand. For the latter markets, that means there will be little to cushion consumers should anything go wrong with this year’s crop weather.

Increasing US soya supply Recent forecasts suggest the USA could increase its 2017 soyabean plantings to at least 36M ha (USDA ‘Outlook Forum’ forecast), or possibly as much as 37M ha this spring from last year’s 33.7M ha. Several studies have pointed out that this does not translate automatically to a rise in production, noting last year’s yields were the latest in a threeyear run of above average results at a new record high of 52.1bu/acre. The odds might be thought

long on the crop getting the mostly ideal weather that delivered this result – but who knows?

Extrapolating 36M hectares (+5.5% on year) and using the past three years’ average planted/ harvest ratio and yield would result in a crop approaching about 116.8M tonnes – just under the past year’s record 117.2M tonnes. If the high yields have become the ‘new normal’ and the top end of hectarage guesses turned out to be correct, the crop would be closer to 127M tonnes. If planted hectares only rise to 34.6M (as earlier forecast) and yields hit the lower end of the three-year average, the crop would be around 109M tonnes – still the second largest ever and well ahead of the recent past average of 94M tonnes.

Even then, adding on carryover stocks currently forecast at 11.4M tonnes (more than double last year’s), still implies a large, possibly huge US soya supply for the coming season – unless the country gets troublesome weather in the planting/ growing season. That is what happened to the Latin American crop last spring, resulting in a decline of total Brazil/Argentine production from 158.6M to 153.3M tonnes. It is not a huge drop, but it is coming in the context of rising world import demand, up by 13M tonnes, mainly from China, over the two seasons 2015-17 that overlapped the southern hemisphere’s marketing year. Soya meal import demand over this same period grew by about four-fold and oil consumption by one million tonnes.

Soya prices lose steam Much of the resilience in Chicago Board of Trade (CBOT) soya futures over recent months has been down to strong import demand shifting from less abundant Latin American to ample US soyabean and product supplies. This has put the seasonal pace of US bean exports well over the forecast (+6%) as well as boosting US domestic crush at a faster than expected rate.

CBOT strength has also reflected some weather concerns in Latin America in the early months of

2017. Floods in Argentina are especially threatening a repeat of last year’s crop losses and, as we go to press, expected to take off about 1.5M tonnes off output potential. Brazil on the other hand – despite its own early concerns about both too dry and too wet weather in different regions – seems to be outpacing initial forecasts. The US Department of Agriculture (USDA) has Brazil heading for 104M tonnes (+7.5M tonnes) but some local sources have been talking the crop up to as much as 106M or even over 107M tonnes.

Despite some recent wet weather interruptions, Brazil’s harvest has been coming in earlier than usual – already a quarter gathered in mid-February – and it has made some impressive early season shipments, almost tripling those of the same period last year.

Although the country has continued to ship more than the USDA expected in recent weeks, US exporters are expecting its strong early season soya sales to start tailing off seasonally now as the full weight of the Latin American harvest starts to arrive on the market. While CBOT soya futures are still over US$10/bu (not just on the spot but on late 2017 months as well), there is a widespread view among US analysts that values could dip to lower levels in coming months (see Figure 2, following page). That might then trigger more sales by farmers keen to avoid getting landed with too much old crop ahead of another possible record harvest, pushing prices lower still.

Soya oil futures prices have already dropped by about 13% since our December market review, although, interestingly, meal values have held up better, possibly influenced more by concerns about the impact of bad weather on the world’s top meal exporter Argentina’s coming crop.

Markets keeping steady Prices of most oils have eased in the past few months on other ‘barometer’ markets. In Europe, the closely watched euro prices of crude soya and rapeseed oils are down by about 12-13% ex-tank v

16 OFI – MARCH/APRIL 2017 www.ofimagazine.com

John Buckley March.indd 1

24/03/2017 12:20

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I NT E RN ATION AL M ARKET REVIEW

v Rotterdam while the dollar price of crude sunflower oil is about 4-6% cheaper. The monthly average USDA price data used in our long-term chart (in US dollars) had been rising at the tail end of 2016, but has also turned ‘south’ since. Nonetheless, in the ever-strengthening US currency, most of the major oils cost considerably more than at this time last year, if trading well below the highs of the past decade. The notable exception over the past few months is sunflower oil, which is actually cheaper on these terms.

Going forward, prices may be heavily influenced to the bear side by expectations of a major rebound in palm oil supplies running into a probable further big jump in soyabean oil production. The USDA has palm oil output for this season rising by 5.7M tonnes – possibly a little on the generous side as the full recovery from earlier El Niño drought expected in the second half of the 2017 calendar year will likely overlap into the next season (see Figure 3, above). But the USDA also has soya oil production gaining 2.5M tonnes – a figure that could expand considerably, if the crop turns out larger or more of it than expected is crushed, rather than piling up in carryover stocks for next season, which the USDA has increased to a new record high.

Given that these two oils – soya and palm – combined equate to 63% of world total vegetable oil consumption and as much as 75% of exports, their influence will clearly continue to dominate the major price trend in oil markets which – on present supply pointers – looks more likely to be down than up.

While it cannot ignore the general trend, rapeseed’s contribution to the market trend may be less bearish in the year ahead, based on expected static global output, rather tight EU supplies and declining world stocks of both seed and oil. First official forecasts for this year’s Canadian plantings are up by about 19% from last year’s, but yields are expected to ease back from the relatively high 2016 level, leaving the crop at similar levels. Weather at planting time will, as usual, decide to what extent these early forecasts materialise.

The Canadian government body Agriculture and Agri-Food Canada (AAFC) also expects its export trade to hold up at similar levels and crush to be marginally up from this season’s, suggesting that stocks should finish the 2017/18 season at about the same level they started. A recent EU crop forecast for 2017 from the French analyst Strategie Grains cut 500,000 tonnes off its last estimate at 21.56M, but that remains well within the range of estimates circulating late last year. The European market has likely already factored in another tight season with prices aligned accordingly.

Rapeseed down, sunflower up World production of rapeseed for the current season ended up about 3.3% lower than in 2015/16, but output of rapeseed oil has been estimated to fall at only half that pace as crushers draw down rapeseed stocks carried in from the previous marketing year.

These are expected to fall the most in Europe, Canada and China. Rapeseed oil consumption on the other hand, is expected to continue rising this season, resulting in a bigger drawdown – almost a quarter – of product stocks.

The lion’s share of this fall is expected to take place within China, which has long been carrying massive strategic reserves, far more than it needed.

FIGURE 2: CBOT SOYABEAN FUTURES – FIRST POSITION (US CENTS/LB)

FIGURE 3: PALM OIL SUPPLY OUTLOOK (M TONNES)

The drawdown in this stockpile has had less effect on the global rapeseed market than on palm oil, allowing China to reduce imports of the latter item quite sharply over the past year. That said, the shrinkage of global rapeseed and oil stocks – while spread over several key countries – does leave this market more exposed to weather risk than usual.

Canada’s end-2016 stock count released recently was, for example, down 10% on the year and smallest for this date in four years.

Crude sunflower oil prices in Europe have dropped over the past couple of months in response to the general vegetable oil trend and ample supplies of this increasingly popular oil. Global sunflower production is expected to rise almost 11% to a new record 44.8M tonnes this season, with output of the oil increasing at a similar pace and consumption reaching a new peak of 15.7M tonnes – a rise of over 50% in the last decade.

Ukraine has made the biggest contribution to expanding world supplies, raising sunflower oil exports by about 22% in the first four months of this season to some 1.77M tonnes. Its seasonal exports are currently forecast at 5.1M tonnes (against last season’s 4.5M tonnes), while neighbouring Russia

should also expand oil shipments to 1.95M from last season’s 1.54M tonnes.

Sunflower oil consumption has been edging up in Europe, mainly in the food sector, amid tighter supplies and higher prices of rapeseed oil. Strong demand has also been seen from India and Egypt in response to sunflower oil’s cheaper price. India’s imports during its local marketing year to end of January were recently estimated at 558,767 tonnes – a 40% increase on last year’s at this time, when soya oil was offering a discount. Indian full season imports could go as high as 1.75M tonnes versus last season’s 1.2M tonnes. China’s sunflower oil imports were also reported to have risen sharply in the current season to date – up by over 50% on the year at some 228,234 tonnes in fourth quarter 2016, the bulk of these supplied by Ukraine.

If the main producers continue to grow and crush adequate supplies, sunflower oil should continue this growth pattern, exploiting its traditional ‘premium oil’ image and unusually competitive prices versus leading rival food oils, especially in the snack food industries, where it is a preferred oil in w many countries.

John Buckley is OFI’s market correspondent

19 OFI – MARCH/APRIL 2017 www.ofimagazine.com

John Buckley March.indd 2

24/03/2017 12:20

O L E O C H EM IC ALS/ SURFAC TAN TS

The time to innovate is now PHOTO: IGRADESIGN/ ADOBE STOCK

An increasing demand for biobased products is driving growth in the oleochemicals market worldwide, which is estimated to be worth US$20.03bn by 2020.

Rose Hales reports on industry trends and challenges

A

study published by Grand View Research in 2015 estimates the global oleochemicals market will reach US$20.03bn by 2020. According to Spec Chem Online estimations, this market growth is estimated to reach 18M tonnes of oleochemicals by 2018.

The key driving factor for the industry is an increasing demand for bio-based products from end-use industries such as soaps, detergents and personal care. The report references the volatility of petrochemical prices as being behind the shift towards bio-based products. Growth in end-use industries such as personal care, surfactants, polyamide and polyols is also driving demand for oleochemicals.

As well as the volatility of petroleum-based products, oleochemicals are growing in popularity as customers are increasingly preferring naturally sourced products, which Spec Chem Online says “is likely to become more prominent across all regions in the future”.

Asia-Pacific is the largest regional oleochemicals market, according to Grand View Research. It accounted for 41.9% of total market volume in 2013. Spec Chem Online reported that it was also the largest producer of oleochemicals and is responsible for 60% of the market, which is expected to grow at 8% a year over the subsequent five years.

This is due to an abundance of raw materials in countries such as Malaysia, Indonesia, China and Thailand. The majority of installed capacities – 65%

– are also now in Asia.

Historically, between 12% and 14% of the world’s vegetable oil was used for oleochemical production, according to Spec Chem Online. With the emergence of new applications and popularity, an additional 8M tonnes/year of vegetable oil would be required by 2020.

Current industry conditions The overall surfactants industry worldwide is fairly healthy, growing at an average of 3-4% per year, according to Chris De Lavigne, principal advisor at KPMG, speaking at the 6th ICIS Asian Surfactants Conference in Singapore last November. Lavigne unpicked the current conditions and events within the industry, and the challenges he saw the surfactants industry facing. Although growing and stable, the market has been turned on its head recently, Lavigne said. This change has been caused by a combination of logic and opportunism, as synthetic and natural feedstocks compete for market share.

Like most industries, surfactants are affected by any challenges faced by the global economy.

The state of crude petroleum oil prices challenges the competitiveness of oleochemicals. In addition, markets across the world have cooled, with neither the EU and China – two of the world’s largest economies – currently very buoyant.

Any industry is challenged by overcapacity and surfactants are no exception. With new plants opening, the industry is feeling the effect. However, according to Lavigne, there are still opportunities as long as companies employ a strategy which is not simply “me too”. Producers need to stand out from the crowd and not mimic existing production strategies in order to thrive, he said.

Overview of principle compartments There are three principle compartments within the surfactants industry: t LABs – Linear alkylbenzene. Organic compounds

that are used in the production of surfactants for use in detergent.They have been the dominant precursor of biodegradable detergents since the 1960s. t MES – methyl ester sulfonates. MES is an oleochemical substitute for LABS. According to Spec Chem,“MES outscores LABS on multiple counts. It has excellent characteristics, such as high purity and actives levels, and is devoid of any volatile organic compounds. It is also gentle on the skin, has low di-salt content, is white or near-white in colour and is suitable for both liquid and powder detergents.” t AS/AE/AES – alcohol sulfates; alcohol ethoxylates; and alkyl ethoxysulfates.

The MES industry The MES industry is facing huge overcapacity and competition from cheaper synthetics, particularly shale, according to Lavigne.

Around 40% of MES is currently being produced from synthetics. Not only is shale competitively priced, but traditional natural sources for surfactants are currently in decline.

For example, coconut oil, once used a great deal in MES production, is shifting to higher-value food applications. The lingering effects of El Niño have also affected the natural alcohol market, with less availability of feedstock oils such as palm and palm kernel.

This shift from natural to synthetic feedstock will open the door to new global players in the surfactants industry, who have access to large quantities of fossil fuels, Lavigne predicted. This includes Iran, which he emphasises is one to watch – Iran has 10% of the world’s oil reserves and 14% of the world’s natural gas reserves.

A report published in January 2017 by Zion Research titled ‘Global Fatty Methyl Ester Sulfonates (FMES) Market for Household Detergents, Personal Care Products and Other Applications, 2014-2020’ says the biggest challenge for MES is its limitation in liquid detergent applications. However, demand is growing in developing countries for environmentally-friendly heavy-duty laundry powder, which is produced using MES. According to the report, Europe is the leading regional market for MES, with over 40% share in total volume. It was followed by North America and then Asia Pacific in market share. However, the Asia Pacific region is expected to be the fastest growing geographical market for MES in the years to come.

Fatty alcohol market Raw material availability in the fatty alcohol market is affecting production and the competitiveness of natural fatty alcohols. Meezy Park from LMC International, who presented at the 6th ICIS Asian Surfactants Conference in Singapore, explained the reasons for the fall in availability of natural fatty alcohol feedstocks. Palm oil planting rates are reducing in Indonesia and Malaysia due to low crude palm oil (CPO) prices and increasingly stringent sustainability requirements. This supply is predicted to further decrease owing to pressure v

20 OFI – MARCH/APRIL 2017 www.ofimagazine.com

surfactans and oleochemicals.indd 1

24/03/2017 12:28

BIODIESEL Options to purify feedstock } Acid Degumming } Fatty Acid Stripping } Nano Neutralisation Options to utilize high FFA feedstocks } Acid Esterification } Glycerolysis } Esterified Product Neutralization

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Biodiesel Plant } Oil Drying } Transesterification } Glycerine Separation } Methyl Ester Washing } Methyl Ester Drying } Glycerine Purification } Glycerine Concentration } Methanol Rectification Options to further enhance biodiesel quality } Methyl Ester Prewashing } Methyl Ester Clarification } Methyl Ester Distillation Option to further enhance glycerine quality } Glycerine Distillation

OLEOCHEMICALS Fatty Acid Processing Plant } Fat Splitting } Fatty Acid Distillation } Fatty Acid Fractional Distillation } Fatty acid Hydrogenation } Fatty Acid Dry Fractionation } Sweetwater Treatment } Sweetwater Concentration } Glycerine Distillation Fatty Alcohols (Johnson Matthey Davy Technologies) } Fatty Acids Esterification } Methyl Ester Hydrogenation } Fatty Alcohol Refining } Fatty Alcohol Post Hydrogenation } Fatty Alcohol Fractional Distillation Fatty Acids Methyl Ester Process Plants } Methyl Ester Fractional Distillation } Methyl Ester Hydrogenation

Oleochemicals & Biodiesel

Science behind Technology

O L E O C H EM IC ALS/ SURFAC TAN TS

v from NGOs increasing, economic pressure and the difficulty of finding suitable land for growing. The coconut oil market is also tight because of weak supply growth, as well as high demand for coconut products as a health food.

Park said that natural alcohol production became unprofitable in Southeast Asia in 2016, which caused prices of C12 and C14 (fatty alcohols with carbon chain length between 12 and 14, produced from PKO and coconut oil) to rebound, due to restricted supply.

ALL GRAPHS: LMC INTERNATIONAL

FIGURE 1: FATTY ALCOHOL CONSUMPTION BY REGION

FIGURE 2: FATTY ALCOHOL SUPPLY BY SYNTHETIC AND NATURAL

FIGURE 3: PKO AND US ETHYLENE PRICES

Surfactant end uses According to Lavigne, detergents currently make up 43% of surfactant end use. The personal care market is continuing to rise, currently at 16% – this is driven by emerging nations and specifically the movement of people to cities. Finally, surfactant use in cleaning and coatings is currently at 7%.

Surfactant content is higher in liquids than in powders. For this reason, liquids are more expensive and therefore mature markets are typically liquidbased in their choices. In contrast, the Asian markets prefer powder due to its affordability. Asia makes up 40% of the surfactant market, whereas the EU and USA account for 20%.

China’s natural and natural-related surfactants market is experiencing growth, but the rest of Asia will remain a powder market until GDP increases, Lavigne said.

Market spotlight CHINA: The Asian giant, with a population of 1.36bn people, has always been a big and important driver in the surfactants industry. However, in recent times the pace has slowed. According to John Richardson, who delivered a paper on China at the 6th ICIS Asian Surfactants Conference, China has been severely affected by the retirement of the baby boomer generation. Demand has decreased and therefore production has decreased also. This affects China greatly, as the country has always been a superpower of production.

IRAN: As previously mentioned, Iran is one to watch in the surfactants market. It is currently mainly a LABS-based market with two big LABS players, and is largely self-sufficient due to sanctions. Although mainly government-led, there are a few private companies also operating.

AFRICA: Lavigne said there is great potential across the continent, in particular in Kenya and Egypt, as well as increasingly in sub-Saharan countries like Nigeria. Wealth is being created, and with this will come more industry. In addition, there is the opportunity for good margins on the continent, which should fuel production further.

Parts of west Africa such as Sierra Leone and Liberia have the correct climate for palm oil plantations, which will draw oleochemical investment into the region in the future.

INDIA: S Hariharsubramanian, director of VVF Singapore, also spoke at the Asian Surfactants Conference and focused on the opportunities and challenges in the Indian market.

India is a huge and diverse market, with a clear split between urban and rural populations. The rural population is much more price sensitive then the urban population. According to Hariharsubramanian, in the country there are many different skin types and cultural trends, therefore an opportunity has been created for small regional players to tap into niche markets and fashions.

For example, producing hand sanitiser, which provides sanitation without water, is an opportunity particularly within dry, rural communities.

There is also an interest in herbal personal care products in the urban population, with companies as large as Colgate customising their surfactant formulations to include traditional products, such as charcoal, to suit demand and trends.

Hariharsubramanian said home and personal care account for 60% of surfactants in India. This is expected to grow 13% by 2017 to be worth US$3,248M, with personal care up 23%.

Advancement through innovation A key trend reiterated again and again at the surfactants conference in Singapore was the need for advancement and innovation in the industry.

Hope for oleochemicals rests on originality, although according to Lavigne, innovation seems to have disappeared.

The industry must find ways to transform and modernise, even though for the chemical market this does remain a challenge due to the time and effort involved. Asia, in particular, will have to innovate more and more. Personal care is one avenue for innovation, with money to be made in specialities.

This is especially true in developing countries such as India where huge urbanisation is increasing, the middle classes are growing and becoming wealthier, and consumer-led trends and evolving consumer preferences are forcing the industry to change and adapt. This provides opportunities for the oleochemicals industry, if it is willing (and able) to evolve. In particular, it must move to take advantage of consumer preference for greener, sustainable and more environmentally-friendly w products worldwide.

Rose Hales is OFI’s former editorial assistant

22 OFI – MARCH/APRIL 2017 www.ofimagazine.com

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SOU TH AM ERIC A

PHOTO: ADOBE STOCK

Colombia: Palm oil potential

T

With 7.5M ha available for growing oil palm, Colombia – which ranks fourth in global production of palm oil – has huge potential to contribute to world stocks. Charlotte Niemiec writes

oday producing more than 500,000 tonnes of palm oil and palm kernel oil (PKO) on over 150,000ha of land, Colombia is the largest producer of the crop in Latin America and the fourth largest in the world, after Indonesia, Malaysia and Nigeria.

According to the industry’s trade association, the National Federation of Oil Palm Growers (Fedepalma), the oil palm tree was introduced to the country in 1932.

Extensive cultivation and production dates from 1945, with commercial growing beginning in the 1950s under a government scheme to encourage oil-bearing crops. During the 1980s, planted area tripled and PO became an important crop for the country’s economy.

Last year, the Ministry of Agriculture announced it would seek to increase planted area by 150,000ha to reach 8M ha in the next three years and investing almost US$480M into the project.

Colombia’s primarily tropical climate is ideal for growing oil palm. Plantations are found across the country, with 55 production units grouped around

TABLE 1: BIODIESEL USE IN COLOMBIA (MILLION LITRES) Production Imports Total supply

2011

2012

2013

2014

2015

503

557

572

589

583

0

0

0

0

0

503

557

572

589

583

6,547

6,745

6,879

7,056

7,389

Estimated biodiesel required – B8

524

540

550

564

591

Estimated biodiesel required – B10

655

675

688

706

739

Diesel production

Source: Fedebiocombustibles, MME

oil extraction plants. It is the country’s most popular oil, accounting for almost 90% of the production of Colombia’s oils and fats and for around 60% of oil consumption, used widely in snack foods, cosmetic/ personal care products and as a biodiesel.

The link between land and oil Despite its potential, no consideration of Colombia’s palm oil industry would be complete without acknowledging the claims levelled at the industry of land displacement and “greenwashing” by environmental authorities, NGOs and local actors. A 2012 report by Oxfam Novib, an NGO based in the Netherlands, titled ‘Responsibility and Sustainability of the Palm Oil Industry: Are the Principles and Criteria of the RSPO Feasible in Colombia’ notes that, in Colombia – as in all palm oil-producing countries – oil palm cultivation is associated with environmental problems, land and territorial issues and labour rights.

These problems are aggravated in Colombia as a consequence of internal armed conflict and its high level of violence. Today, the report says, violence associated with land occupation is linked with the cultivation of sugarcane and oil palm for the production, most particularly, of biofuel.

Colombia’s great advantage when it comes to growing oil palm, according to Fedepalma, is that there is land available to do so. While the Oxfam report largely agrees, stating that plantations are not directly associated with the clearing of rainforest in Colombia as they are in Malaysia or Indonesia, it notes that plantations have still affected primary forest in some areas.

Furthermore, “many oil palm expansion projects are proposed or planned for systems of special environmental relevance,” the report says.

24 OFI – MARCH/APRIL 2017 www.ofimagazine.com

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SOU TH AM ERIC A

A stagnating biofuel blend mandate In addition to its use as an edible oil, Colombia earmarks palm oil for biodiesel. The country’s export and tourism board, ProColombia, notes that Colombia produced 513,000 tonnes of biodiesel in 2015 (see Table 1, previous page).

Since the early 2000s, production has been underpinned by government support. It has drawn up national development plans providing for direct and indirect investments aimed at promoting ethanol and biodiesel. It passed legislation for ethanol and biodiesel blend mandates in 2001 and 2004, respectively, which today stand at B8 or B10, depending on the region.

The government provides incentives for continuous production: biofuel production facilities receive a special tax designation as an industrial free trade zone and, therefore, pay no taxes on revenues.

Biofuel sales are also excluded from paying a 16% VAT, and ethanol sales are exempt from regional taxes, even though biodiesel sales are levied a tax of US$0.15/gallon.

However, according to a United States Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report published in December 2016, the biofuel mandates remain unchanged, resulting in little incentive to increase production or consumption. The report says this “lack of clarity” from the government on maintaining or adjusting the mandate has “created concern in the biofuels industry.”

in small producers, except when they become involved in producing oil palm. Because of this, the report says, “if they want to be granted land and subsidies … smallholders are faced with the difficulty of continuing with their traditional crops and maintaining their autonomy”, or switching to oil palm.

Creating a dialogue One stumbling block to increasing levels of production in Colombia is a lack of dialogue across the supply chain.

Oxfam notes: “State actors involved in palm sector problems (be it environment, labour or land and territorial rights) have limited impact on the definition of policies. There are no spaces that

permit dialogue between palm oil companies, policy makers and civil society. In the opinion of foreign observers, the two sides simply do not speak the same language and there are no actors to help build bridges and trust.”

Aiming to change this, the industry is spearheaded by Fedepalma. Its mission is to represent growers’ interests, promote palm oil initiatives and liaise with the government on setting policies to further the expansion of the industry.

In addition, it leads work with organisations domestically and abroad, promotes training and alliances along the supply chain and maintains relations with counterpart organisations and research agencies in other countries on the crop and its oil.

In 1990, Fedepalma established a research centre v

Potential for palm oil-based biodiesel Palm oil-based biodiesel production capacity remains at 590M litres/year which, the report says, is slightly below (at a 7.9% average) the level necessary to meet the mandates. But, the report notes: “The expansion of palm area planted and palm oil production in Colombia shows the potential for an increase in palm oil-based biodiesel production.”

ProColombia says the country has the land available – around 7.5M ha are suitable for growing biofuel-producing crops, a figure five times higher than that of Malaysia. Production is also set to increase.

The National Biofuels Federation of Colombia (Fedebiocombustibles) says two new facilities are due to come online this year, adding 110M litres/ year to domestic capacity and increasing biodiesel production to 700M litres/year. Currently, the federation says, there are eight biodiesel plants using palm oil as the primary feedstock, six of which produce around 95% of total production (see Figure 1 and Table 2 following page).

While Colombia exports over 33% of its palm oil – primarily to the European Union (EU) – it does not export its biodiesel. Nevertheless, plans to do so are being promoted on the back of increasing production. An incentive for the government to invest further in the biofuel industry is the growing demand from the EU, which has set a target of 10% biofuels by 2020. The snag, however, is that both the raw material and the resulting biofuel must be certified to qualify in the EU. Furthermore, while tax breaks and subsidies are helpful for biodiesel producers, they are often the opposite for smallholders, the Oxfam report argues.

While the government promotes the cultivation of oil palm to produce biofuel, it fails to invest 25 OFI – MARCH/APRIL 2017 www.ofimagazine.com

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SOU TH AM ERIC A

TABLE 2: BIODIESEL PRODUCTION IN COLOMBIA INCLUDING PRODUCTION CAPACITY AND MARKET PENETRATION (MILLION LITRES) Calendar year

2008

2009

2010

2011

2012

2013

2014

2015

2016

*2017

0

0

5

4

5

6

3

8

6

5

26

185

384

503

557

572

589

583

580

680

0

0

0

0

0

0

0

0

0

0

Beginning stocks Production Imports Exports

0

0

0

0

0

0

0

0

0

0

Consumption

26

180

385

502

556

575

584

585

581

680

Ending stocks

0

5

4

5

6

3

8

6

5

5

Production capacity (million litres) No. of biorefineries

1

2

5

5

6

6

6

6

6

8

Nameplate capacity

68

204

525

525

553

590

590

590

590

700

38%

90.8%

73.1%

95.9%

94.3%

96.9%

99.8%

98.8%

98.3%

97%

163

337

443

450

505

505

510

510

595

26

180

385

502

536

575

584

585

581

630

Diesel, on-road use

5,662

5,909

6,084

6,547

6,745

6,879

7,056

7,389

7,626

7,860

Biodiesel blend rate

0.5%

3.0%

6.3%

7.7%

8.2%

8.4%

8.3%

7.9%

7.6%

8.7%

Capacity use

Feedstock use for fuel (‘000 tonnes) Palm oil use for fuel

41

Market penetration (million litres) Biodiesel, on-road use

Source: United States Department of Agriculture GAIN report, *estimate

v called Cenipalma. Its focus was to look for solutions to technological problems affecting producers and to offer permanent technical assistance in updating crop management and procedures of palm oil mills.

It has since launched programmes on oil palm diseases, management of pests and pollinators, and the physiology and nutrition of the crop. It researches topics such as irrigation, production of varieties adapted to Colombian conditions, the productivity of oil extraction processes and its by-products, the reduction of environmental impact and research on the health benefits of palm oil.

FIGURE 1: BIODIESEL PLANTS AND BLEND MANDATES IN COLOMBIA

Solid certification required One proposed “solution” to the problem of land displacement is to demand certification, which is gradually increasing in the region. While there are no figures for Colombia specifically, a Roundtable on Sustainable Palm Oil (RSPO) impact report notes that the number of certified growers in Latin America has risen from five to 11 in the past two years, while 20 additional mills have been certified.

Certified sustainable palm oil (CSPO) has increased from 270,000 tonnes in January 2015 to 645,080 tonnes at June 2016, representing 19% of the total regional output, putting Latin America on a par with worldwide certification levels.

RSPO certification guarantees that palm oil has not come from recently deforested land and that plantation workers are treated fairly.

But, in a report prepared for the Initiative for Conservation in the Andean Amazon, Juan Luis Dammert argues that even certification is not a perfect system for Colombia. The scheme only protects certain forests and accusations remain that certified companies violate the standard, he argues.

Dammert says: “Cases of greenwash are seen too often [with the RSPO]. It is by no means a sufficient mechanism. If it doesn’t come in addition to strong national policies and the mobilisation of organised social actors, it guarantees nothing.”

Another issue is traceability. Colombia does not have a centralised system that allows information to be obtained on oil palm-growing companies, the groups to which they belong and their shareholders, the Oxfam report states.

It advises that the RSPO principles and criteria should be revised to take account of “the Colombian context” and recommends intensive and ongoing national and international monitoring of the consultation process and also of subsequent certification phases. It proposes creating an observing body composed of Colombian organisations representing stakeholders, who would work closely with the RSPO at an international level.

Source: Fedebiocombustibles

Finally, certification is not always an option for smallholders, who would often pay a higher price per hectare than larger plantations. For Colombian growers, the choice is to invest in pricey certification or join a Strategic Production Alliance (APE).

The APE system, which was adopted by the Ministry of Agriculture towards the end of the 1990s, plays an important role, as 30% of planted land is included in APEs, according to Fedepalma. Small producers with at least 5-10ha of land sign contracts with operators and intermediaries (companies), which guarantee purchase of their output for periods of 20 years or more. In return, companies back small producers by obtaining or providing incentives for planting oil palm, such as offering technical assistance and seeds.

w Charlotte Niemiec is a freelance journalist

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OLIVE OIL

Emerging countries T develop output

While the global olive oil industry has been dominated by key European countries such as Spain, Italy and Greece, output is increasing in emerging producers such as Australia, Croatia, Chile, Uruguay and Saudi Arabia. Barbara Barkhausen, Paul Cochrarne, Charles Newberry, Tom Azzopardi and Zlatko Conkas write

he olive oil industry has traditionally been dominated by some key major European players, notably Spain, Italy and Greece. However, with global consumption rising, production is emerging in countries which have previously relied on imports.

International Oil Council (IOC) statistics show how new production centres are being created.

Australia is starting to be a force to be reckoned with, forecast to produce 21,000 tonnes of olive oil in 2016/17, having increased output from 500 tonnes in 1998.

There has been a similarly solid increase in Croatia, which will produce 4,000 tonnes in 2016/17, according to the IOC, having produced 1,500 tonnes in 1998.

In South America, Chile has become an important supplier with 16,500 tonnes of output forecast for 2016/17, with production up from 5,000 tonnes in 2006. Uruguay is a relatively new player with 1,000 tonnes forecast for 2016/17, up from 500 tonnes in 2013. Finally, Saudi Arabia is perhaps an unexpected new producer, with 3,000 tonnes anticipated for 2016/17, up from 2,500 tonnes in 2006.

Australian brands scope awards In Australia, olives have grown there for almost 200 years since European settlers brought these oil-bearing fruit trees to the continent. But only recently has the industry managed to compete

with Mediterranean countries.

At the 2016 New York International Olive Oil Competition, Australian producers walked away with 11 awards, including four ‘best in class’ awards, out of 17 available – not bad for a country producing just 1% of the world’s olive oil.

“Our pristine growing conditions, efficient harvesting and quick processing mean that 95% of the olive oil grown in Australia is classified extra virgin, the highest grade,” explained Lisa Rowntree, CEO of the Australian Olive Association.

Olive oil production has steadily grown from less than one million litres in 2002 to almost 20M litres in 2015.

Recent years have not been easy though with the “Australian dollar hitting parity with the US dollar in 2011, making exporting just about impossible and resulting in a flood of cheap imported oils hitting our shelves,” said Rowntree, although since 2014, the greenback has recovered some ground against the Australian dollar and the US$ rate is now AUD$1.30.

The export squeeze did promote consolidation in the Australian olive oil sector and overseas sales are rising again, with 40% of production going abroad, mainly to Italy, Spain and the USA, with growing interest from Asian countries.

Victoria-based Boundary Bend Ltd, established in 1998, is Australia’s largest olive farmer and producer of extra virgin olive oil, the company claims. It owns 2.2M producing trees on more than 6,070ha. Its brands – Cobram Estate

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OLIVE OIL

and Red Island – are expected to boost export earnings with the company having launched US operations in 2014.

Other Australian companies recognised internationally include Cape Schanck Olive Estate, L’Uliveto Verde, Gooramadda Olives and ALTO Olives.

Mediterranean climate in Uruguay Another emerging producer with long-standing historic traditions in the olive oil sector is Uruguay, which has had olive groves since the 1780s, but whose olive oil production did not truly take off until 2002.

Rising investment, new technologies and techniques, beneficial growing conditions and added milling capacity are driving increased production, from 600,000 litres in 2015, to a forecast 10M litres by 2020.

Uruguay is on the comparative southern latitude of the Mediterranean, the world’s biggest source of olive oil, and the many plantations on the Atlantic seaboard get a steady ocean breeze.

“These conditions give us a similar quality to the olive oils produced in the Mediterranean,” said Carmen Gomensoro, president of the Uruguayan Olive Oil Association (Asolur Asociación Olivícola Uruguaya), who also helps run a seven-hectare grove near the beach town of José Ignacio; and markets leaders such as Agroland, O’33 and Finca Babieca.

These traits have lured foreign investors, mostly from Argentina and Spain, and locals to plant trees, particularly on coastal lands where poor soils have limited traditional farming and ranching. Planted area is on track to reach 15,000ha in 2020, up from 9,000ha in 2012, according to estimates by the Ministry of Cattle Ranching, Agriculture and Fish.

There are challenges. Most of the 150 plantations are small, with only 20 at more than 50ha. This makes it harder to achieve economies of scale, limiting competitiveness, crop yields and profit potential, according to the ministry. Even so, Uruguay is gaining international attention, with exports rocketing to 130,000 litres in 2015 from 10,000 litres in 2010, mostly to Argentina, Brazil, Japan and the USA, according to ministry data.

Agroland has become a top exporter, fuelled by awards. Its Colinas de Garzón rose to 26th in the world in 2015/16 from 40th in 2014/15, according to the World’s Best Olive Oils, an organisation that tracks major international competitions.

The industry’s immediate focus, however, is boosting domestic sales. Asolur, for example, is bringing in Italian and Spanish experts to teach growers about fertilising, pruning and plantation management to improve quality and yields, Gomensoro said.

Another strategy is raising consumer awareness about buying local extra virgin oils rather than lower-quality imported blends. And a third is promoting health benefits through tastings and a first national contest this October.

“We are trying to gain a stronger foothold in the Uruguay market,” Gomensoro stressed.

Annual consumption is still low. While touching 0.5 litres per capita, up from 0.2 litres only a few years ago, it is far lower than the 10 litres

in Mediterranean countries. “A litre would be wonderful,” said Gomensoro.

Natural advantages in Chile Another South American country with a similar climatic zone – Chile – is also developing a competitive olive oil sector. The Mediterranean climate of Chile’s Central Valley is perfect for olive trees, which thrive in hot dry summer and cold rainy winters. Bound in by the Andes Mountains, the Atacama Desert and the Pacific Ocean, its orchards enjoy a natural barrier against the pests and diseases that can blight crops in the rest of the continent.

These natural advantages, combined with Chile’s stable politics and open trade policy, have aided exports, although is only relatively recently that the country’s farmers have been focusing on olive oil. As recently as 2005, Chile produced just 2,000 tonnes/year, which soared to an estimated 13,000 tonnes by 2015.

With domestic consumption rather limited – Chileans consume just less than half a litre annually – Chilean olive oil producers export around 90% of their production. Major markets include the USA, Brazil and Italy.

The industry has quickly gained a reputation for quality. While exports to the European Union are largely in the form of bulk oil to avoid punishing import tariffs, around two-thirds of Chilean olive oil is shipped already bottled, ready for supermarket shelves.

By 2014, Chilean olive oil producers had won 20 major international prizes for product quality.

Oliva Alonso, produced by Agrícola Pobeña, has been named one of the world’s 20 best olive oils

by Italian industry guide Flos Olei.

“We have the fields, the trees, the plant, the mill. Our aim is to produce high quality olive oil and we think that the only way to that is to control the whole process,” explained the company’s general manager Diego Livingstone.

There certainly is potential to expand. Olive orchards cover just 20,000ha in Chile, compared to more than 141,000ha for wine grapes.

Saudi Arabia emerges as producer While Chile might be regarded as a likely candidate for growing oil production, another emerging player is maybe less expected – Saudi Arabia. Its current production is some 30,000 tonnes/year, with output values at US$128M. The country was not, until recently, an olive oil producer, instead relying on imports from the Levant and Europe. But, since 2007, high density plantations have been established in the northern Al Jouf region, near the Jordanian border.

The sector is dominated by local companies, such as the National Agricultural Development Company (NADEC), the AlJouf Agricultural Development Co (JADCO) and Al Watania.

Saudi Arabia has an estimated 13 to 15M trees, according to Mohammed Odeh, general manager of Agromillora Middle East, which supplies olive trees around the region.

Specific olive tree varieties – Arbequina (produces highly aromatic, dark brown, small fruits), Spanish varieties Arbosana and Oliana, and Koroneiki (a Greek variety) – are used in high density plantations, which consume less

water through better utilisation of unit areas and earlier budding.

Costs are close to €2/kg of oil, according to Odeh, while 80% of production by the larger companies is extra virgin oil.

“Saudi olive oil is mostly consumed locally as the focus is on branding for the domestic market as there is a shortage in production to match local demand,” Odeh said.

The local demand shortfall for this 31.52M population market is offset by imports from Europe, Syria, Tunisia and Turkey, according to the Saudi General Authority of Statistics.

The sector is expected to grow substantially in the coming years. “We expect expansion in 2017 of around 5M trees. The potential is there, with some companies targeting to reach 10M trees within the coming three to five years,” said Odeh.

Croatia focuses on boutique quality Finally, there is also a promising emerging producing country in Europe – Croatia.

Although it is an Adriatic country and olives have grown there for centuries, oil production has traditionally been based on small family businesses with limited output. But the country has been producing steady amounts of quality oil in recent years and has been a member of the European Union since 2013, boosting market access for exporters.

Indeed, 35,352 hectolitres were produced in 2015, 10,640 in 2014, 50,000 in 2013, 55,000 in 2012 and 50,000 in 2011, according to the Croatian Bureau of Statistics.

This has not met demand, so Croatia imported 3,561.58 tonnes of olive oil in 2014, 3,702.44 tonnes in 2015, and 3,596.49 tonnes from January to October 2016.

The quality of local output is high, however.

Nine extra virgin olive oils from Croatia won gold and silver awards at New York International Olive Oil Competition in 2016.

“We need to concentrate on the highest possible quality and, with such olive oil products, to go ‘boutique’ with sales in limited editions”, said Branko Jud, from producer OPG Branko Jud, based on the island of Krk. OPG Branko Jud makes the Plominka by Utla brand, which won a gold award at New York.

The Croatian coast and islands have small olive plots, because there is limited space geographically, which will limit the industry’s export potential, said Davor Karninčić, director of family-run producer Trenton, from Split.

“Even if we had 25% higher production than currently, I believe all would be sold [domestically].” But Jud said Croatia should take advantage of its small plots and “build its image on the high quality of olive growing.”

OPG Branko Jud produces 500 tonnes of olive oil annually, using the indigenous variety Plominka as a base, blending with Drobnica, Levantinka, Pendolino, Leccino, Buza, Rosinjola, Casaliva and Coratina varieties. Trenton produces about 800 tonnes annually, based largely in the Oblica variety.

w Barbara Barkhausen in Australia; Paul Cochrane in Lebanon; Charles Newberry in Argentina, Tom Azzopardi in Chile and Zlatko Conkas in Novi Serbia are freelance writers

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TEC H N OL0GY/ BIOFUELS

IMAGE: ADOBE STOCK

Promoting biofuels in Austria

Fossil fuels make up 92% of transport fuels in Austria, with biofuels accounting for the remaining 8%. Biofuels are the single most effective measure for decarbonisation of Austria’s transport sector. Dina Bacovsky and Andrea Sonnleitner of bioenergy2020+ look at the biofuel technology providers in Austria and the latest R&D

T

he market for transportation fuels in Austria is dominated by fossil fuels (92%), of which diesel fuels make up 73% , petrol 20% and biofuels around 8% (see Figure 1 below and Table 1, below).

Domestic fatty acid methyl ester (FAME) production in 2014 was 292,009 tonnes, based on rapeseed (72%), used cooking oil (19%), animal fat (8%) and fatty acids (1%). The feedstock was sourced mainly from the Czech Republic and Austria. In 2014, domestic bioethanol production was 182,305 tonnes, with 56% from maize and 44% from wheat.

The feedstock was sourced mainly from Austria, the Czech Republic, Hungary and Slovakia. Only about half of the biofuel produced in Austria is used

TABLE 1: TOTAL FUELS MARKETED IN AUSTRIA, 2014 Road transport fuel use 2014

Tonnes

GWh

Petrol

1,535,217

18,285

Diesel

5,694,250

68,018

FAME blended

433,547

4,456

FAME other (66% sustainable)

142,986

1,470

Bioethanol & ETBE blended

87,688

731

HVO (hydrotreated vegetable oil)

41,145

503

PVO

16,028

165

601

8

Total of biofuels blended

521,235

5,187

Total of biofuels high blends/pure

200,760

2,145

Methane

Source: Environemental Agency Austria, 2014 reporting year

within the country, with exports occuring mainly within the European Union (EU). Production, import and export volumes are depicted in Figure 2 (following page).

The International Sustainability & Carbon Certification (ISCC) system is the main certification scheme used to certify the sustainability of marketed biofuels and their feedstocks from Austria. For fatty acid methyl esters (FAME), approximately 45% comply with ISCC EU and 22% with ISCC DE. For bioethanol, approximately 10% comply with ISCC FIGURE 1: RELATIVE SHARES OF FUELS IN AUSTRIA (2014)

Source: Environmental Agency Austria, 2014 reporting year

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T EC H N OLOGY/ BIOFUELS

EU and 50% with ISCC DE, and for hydro-treated vegetable oil (HVO), 92% is ISCC EU compliant.

The CO2 and greenhouse gas (GHG) savings of biofuels in 2014 in Austria was approximately 2M tonnes, at an energy substitution of 9.3%. The introduction of biofuels is the single most effective measure for decarbonisation of Austria’s transport sector, and Austria is on track to reach its 2020 GHG emission reduction goals in the biofuels and bioenergy sector.

Technology providers Vogelbusch Biocommodities is widely known for its conventional bioethanol technology, for which it offers all services, from feedstock to end product.

In the production of advanced bioethanol, the company’s focus is on downstream processes. Two interesting pathways are being followed: fermentation of lignocellulosic biomass, and gasification of lignocellulosic biomass and municipal solid waste (MSW).

Vogelbusch has been involved in the INBICON second generation demonstration plant, and delivered downstream technology for this facility (fermentation and distillation). A variety of lignocellulosic feedstocks were tested (straw, bagasse, palm empty fruit bunches and corn stover). Vogelbusch has also been involved in the INEOS Bio facility that uses MSW as feedstock for gasification and then ferments the syngas to bioethanol. INEOS Bio’s second generation commercial syngas fermentation demonstration plant was commissioned in 2013, and technology upgrades were undertaken in 2014. However, to date there has been no confirmed bioethanol production and the facility is now up for sale.

Repotec (Renewable Power Technologies) views biomass gasification as a key technology for the production of biofuels. The combined heat and power (CHP) plant in Güssing has been operational since 2002, using a steam blown fluidised bed gasifier, and producing high quality syngas for production of biofuels.

Methanation of the syngas is performed in a 1MW BioSNG demoplant at 300°C and 1-5 bar using a nickel catalyst. This was the reference project for the GoBiGas BioSNG plant in Sweden), which has been operational since 2013.

The GoBiGas facility was started up using wood pellets as a feedstock, producing 20MW of synthetic natural gas and 6MW of thermal power for district heating, achieving a total efficiency of 81%. The facility has recently switched to using wood chips as feedstock.

Repotec, along with its partners, also develops technologies for the production of Fischer-Tropsch (FT)-diesel and biohydrogen. Their FT-pilot plant uses syngas, cleaned to completely remove any sulphur contaminants, followed by FT synthesis. The capacity of the pilot plant is one barrel/day of FT-diesel. There is another pilot plant focused on the production of hydrogen. For this process, the H2 content in the syngas is increased by a CO-shift-reaction, followed by a CO2-separation step, and through pressure swing adsorption, clean hydrogen is produced, which can be used in industrial plants or directly in fuel cells. Based on this pilot plant, a demonstration plant with capacity of 30MW H2 and 10MW heat was developed.

Other technology providers in Austria include BDI and Andritz. BDI develops technologies for energy generation from by- and waste products. It provides customised turnkey biodiesel and biogas plants using technologies that were developed in-house.

Andritz, with long years of experience in the pulp and paper industry, offers v pre-treatment equipment for lignocellulosic ethanol facilities.

FIGURE 2: BIOFUELS IN AUSTRIA – MARKET OVERVIEW

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T EC H N OLOGY/ BIOFUELS

v

Biofuels R&D

FIGURE 3: FLOW CHART OF FT-FUEL PRODUCTION FROM LIGNOCELLULOSIC BIOMASS

Researchers at Joanneum Research have been assessing life cycles of biofuels and bioenergy chains since the start of biodiesel production in Austria.

During the course of a recent, EU-funded project, ‘Improving the Sustainability of Fatty Acid Methyl Esters (FAME – Biodiesel)’, 10 options for the improvement of the GHG balances of FAME were identified.

The assessment used the GHG standard values as given in Annex V of the EU’s Renewable Energy Directive (RED) to define the base cases.

Technology improvements were applied to the base cases and analysed with respect to their effect on costs and GHG emissions.

The most important results for each improvement option were summarised in fact sheets.

Recommendations for the future development of the RED GHG-calculation methodology were derived and are stated in the report.

Key findings of the assessment include that a significant GHG reduction compared to the RED values is possible, if best available technology is applied, and that the GHG reduction potential is relatively high in the agricultural production steps and relatively low in the processing steps.

The University of Applied Sciences in Upper Austria in Wels has been active in research on conventional and advanced bioethanol production since 2004, with a focus on steam explosion, process and yeast optimisation. Other projects have dealt with the combination of different feedstocks and the social aspects and sustainability

Source: Technical University of Vienna

of advanced bioethanol. Since 2016, the research group has focused on biorefinery research including microalgae.

One of the technologies researched and developed at the Technical University of Vienna is the FT-route for the production of synthetic biofuels. Wood chips are gasified with steam, the raw syngas is cleaned and conditioned, and then used for FT-synthesis.

About half of the resulting FT-products are already in the diesel range, and from the resulting

FT-waxes a large share can be further processed through a hydro-(co)-processing step into HPFTFuels (diesel and kerosene), waxes and purge gas (see Figure 3, above.).

Its FT lab-scale plant has been in operation since 2005, producing 5-10kg/day of FT raw product in a slurry reactor. This plant has just been scaled up to a one barrel/day facility. In the future, the expansion to a wider variety of feedstocks including MSW and residues is planned.

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TEC H N OLOGY/ BIOFUELS

In the Research Studios Austria project ‘OptFuel’, researchers at the Energy Institute at the Johannes Keppler University in Linz worked on a combination of a two-stage anaerobic biowaste digestion process with a power-to-gas (PtG). The goal was to increase the useable carbon production out of biomass and its conversion into a storable energy carrier.

A pilot plant was established with two-stage fermentation (first stage hydrogen production, second stage biogas production) followed by a methanation step and membrane gas separation and cleaning to increase the methane content to more than 96% (see Figure 4, right).

The assessments showed that the operation of the overall system was possible with fluctuating biogas composition. H2 or CH4 from PtG can count towards fulfilling the renewables target in the fuel sector as these are considered advanced biofuels.

As an alternative to PtG, a research group at Bioenergy 2020+ proposed a power-to-liquid concept. Homoacetogenic bacteria can produce acetate, either for sale as a bulk chemical or for further conversion into fuels. In the hydrorefinery project, in the first step, H2 and CO2 are used to produce acetate which is then used in a second step either for acetone-butanol-ethanol (ABE) fermentation or biomethane production.

The challenges in this technology are acetate yields, slow growth rates and lag phases.

Immobilisation of cells is necessary and various materials for this were tested in the project, with the best performance found using linen as the immobilisation material.

A research group at the ACIB Austrian Centre of Industrial Biotechnology works on the bioelectrochemical reduction of CO2 to alternative fuels. Microbial electrochemical technologies link microbial metabolism to an electrochemical system with an interaction between biocatalysts and electrodes. Microorganisms are attached on the electrode surface and serve as ‘catalysts’ for reactions on electrodes. For CO2 conversion, methanogenic and acetogenic cultures can be used.

Biofilms on electrodes for three different carbon materials were investigated. It was shown that microbial electrolysis cells (MECS) are a promising tool for the reduction of CO2 to liquid and gaseous energy carriers.

w This feature was written by Dina Bacovsky and Andrea Sonnleitner of Bioenergy 2020+ and republished with the permission from the IEA Bioenergy Task 39 December 2016 Newsletter.

See www.task39.org for more information

www.sepigel.es

sepilosa_quarter horiz strip-mar17.indd 1

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FIGURE 4: FLOW CHART OF THE PILOT PLANT FOR THE OPT FUEL PTG PROJECT

Source: Energy Institute, Johannes Keppler University, Linz

BDI RepCAT – technology for waste-based biodiesel production

P

olitical demand for biofuel technologies with high greenhouse gas (GHG) saving potential has led to a preference for using waste materials as feedstock. The treatment of this material requires special process technology as feedstock quality can vary from day to day and impurity levels are high.

One such process technology is the BDI-RepCat process, which is specially designed for high free fatty acid (FFA) feedstocks such as trap grease, used cooking oil, animal fat and palm sludge oil.

The BDI-RepCat process is a continuous one- or two-stage reactor system, operated at a pressure above 50 bar and a temperature above 200°C. This ensures a stable and robust process able to handle fluctuating feedstock quality without time-consuming settling processes or expensive separators. The number of stages is defined by the FFA-content in the feedstock, with a limit of 15% for a single-stage system and up to 100% for two stages.

In the RepCat reactors, esterification and transesterification with methanol take place simultaneously.

The key in making the reaction as efficient as possible is the use of a heterogeneous catalyst which is reused within the process. This special catalyst is not sensitive to feedstock impurities and the usual problems when using waste with heterogeneous catalysts, such as catalyst poisoning (partial or total deactivation of a catalyst caused by exposure to a range of chemical compounds).

After flashing off methanol and water, methyl ester and glycerine are distilled simultaneously in the BDI distillation system. Gentle distillation in a multi-stage rectification column at low pressure avoids product degeneration and unwanted back reactions. The bottom product is ‘squeezed out’ in a short path evaporator for maximum product yield. Monoglyceride below 0.1% and sulphur reduction from 100ppm down to below 10ppm are guaranteed.

Since there are no salts generated in the whole RepCat process and glycerine is distilled over the top, the glycerine quality achieved is salt-free with a concentration above 96%. Consequently, the by-product treatment is reduced to a simple methanol-recycling column.

Austria’s Biodiesel Kärnten opted for BDI’s RepCat when it installed a new process line to double its capacity. “Varying feedstock qualities are our daily business,” says Werner Stulier, plant manager of Biodiesel Kärnten. “With BDI’s RepCat process, we achieve the best results due to its simple and stable operation and high product quality on the other side.”

By Hermann Stockinger, vice president of global sales, BDI – Bioenergy International AG

www.sepiolsa.com

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STATISTIC S

EXTRA VIRGIN OLIVE OIL PRICES, EUROPE (€/KG)

STATISTICAL NEWS FROM MINTEC Olive oil

SOYABEAN AND SOYABEAN OIL PRICES (US$/M TONNES)

Prices for extra virgin olive oil have risen in Italy since October 2016 on expectations that domestic production will drop 50% year-on-year to 243,000 tonnes in 2016/17 due to wet weather conditions last summer. In addition, the hot and muggy weather in September that could attract olive fruit flies forced Italian growers to start the harvest earlier than usual, further reducing yields. Extra virgin olive prices in Spain have risen, pressured by strong export demand that is dragging down stocks. Production in Spain is also expected to decline in 2016/17, down 6% year-on-year to 1.31M tonnes due to floods in the major growing region, Andalusia. Prices in Greece have also increased on expectations that production for 2016/17 will fall 26% year-on-year.

Soyabean oil Soyabean prices generally rose through Q4 2016 and at the start of 2017 due to concerns over production in South America as a result of unfavourable weather conditions. However, concerns have eased recently following the start of the harvest in Brazil in January with signs of a bumper crop due to high yields. As a result, the forecast for production in Brazil was revised to a record 104.0M tonnes, up 8%. In Argentina, crop losses attributed to adverse weather were less severe than expected. However, production is forecast down 2% at 55.5M tonnes due to lower planted area.

SUNFLOWER OIL PRICES, EUROPE (US$/M TONNES)

Sunflower oil Prices for sunflower oil fell below rapeseed and soyabean oils in the second half of 2016. Sunflower oil was also the only one of the four major vegetable oils to close the year down year-on-year. Prices have continued to decline due to an increase in global production for 2016/17, which is forecast up 10% at 17.1M tonnes. Record harvests of sunflower seeds in Ukraine and Russia saw increased crushing in both countries. Exports from these two markets increased 22% to 2.1M tonnes in Q4 2016.

PRICES OF SELECTED OILS (US$/TONNE) 2015 Soyabean Crude Palm Palm Olein Coconut Rapeseed Sunflower Palm Kernel

Average price INDEX

Oct 16

747 849 637 706 602 671 1,099 1,443 773 893 846 821 901 1,290 801 190

953 226

Nov 16

Dec 16

Jan 17

Feb 17

858 879 853 809 739 778 760 734 698 738 716 695 1,523 1,649 1,756 1,657 866 901 911 862 823 837 822 810 1,426 1,590 1,696 1,537 990 235

1,053 250

1,073 254

1,015 240

Mintec works in partnership with sales, purchasing and supply chain professionals to deliver valuable insight into worldwide commodity and raw materials markets using innovative technology and a knowledgeable team of specialists. We provide independent insight and trusted data to help the world’s most prestigious brands to make informed commercial decisions.

Tel: +44 (0) 1628 851313 E-mail: sales@mintecglobal.com Website: www.mintecglobal.com

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International Conference:

Compliance in India across Food Value Chain ‑ Challenges & Future Road Map 11th- 12th May 2017 | Taj Palace, New Delhi | INDIA

Organisers

EFPRA Congress 2017 31 May – 3 June 2017 Hamburg | Germany Online Registration: www.efprahamburg2017.com

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OFI INDIA 2017 Bombay Convention & Exhibition Centre (BCEC) Mumbai, India 19-20 May 2017

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EXHIBITION CATALOGUE BOMBAY CONVENTION & EXHIBITION CENTRE | INDIA | 19-20 MAY 2017

HYDERABAD INTERNATIONAL 14-15M tonnes – some 70% of the CONVENTION CENTRE | INDIA country’s requirements – valued at | 1314 APRIL 2016 over US$12bn. The country’s edible oil imports have soared by almost 50% in the last five years, with imports of palm oil growing by 25% and soya oil jumping by 300%.

We wish to extend our warmest thanks to all our supporters including the Solvent Extractors’ Association of India (SEA), Soybean Processors Association of India (SOPA), Oil Technologists’ Association of India (OTAI), CSIR-Indian Institute of Chemical Technology (IICT) and the Federation of Oils, Seeds and Fats Associations Ltd (FOSFA).

We also hope everyone at OFI India 2017 will have a beneficial and enjoyable show and leave with new information, contacts and perspectives.

W

elcome to the second OFI India exhibition and conference, being hosted on 19-20 May at the Bombay Convention & Exhibition Centre (BCEC), Mumbai.

India 2017 follows on from the first successful OFI India 2016, which atttracted over 600 attendees in Hyderabad.

This year, the event is being held in India’s commercial and financial headquarters and will feature an international exhibition of suppliers, producers and processors; the OFI India 2017 Business Congress & SOPA Soya Conference: ‘New Strategies, New Approaches’; and a Smart Short Course technical programme: ‘Advanced Extraction, Processing and Use of Sunflowerseed,

Cottonseed, Soybean, Canola and Palm Oil.’ A market of challenges and opportunities The edible oils market in India offers both challenges and opportunities for players in our industry. The country is a US$2tr economy, with GDP growing at more than 7% and a population of over 1.2bn people. It is the world’s largest edible oil importer, with an oil and oilseed turnover of US$25bn and import-export turnover of some US$13bn.

India’s demand for edible oils is some 21M tonnes/year. It meets this with domestic production of some 7-8M tonnes and imports of

ABOUT THE ORGANISER Oils & Fats International is the market-leading magazine dedicated to commercial issues within the oils and fats industry.

Since 1985, the magazine has gained a reputation for presenting key issues with a business focus and continues to provide an authoritative and objective source of information for everyone involved in this multi-billion dollar industry.

Oils & Fats International is part of Quartz Business Media, UK, a leading international exhibition and publishing company.

Paul Michael CEO Quartz Business Media Ltd

CONTENTS

Welcome C1

OFI India 2017 cover

C2

Paul Michael welcomes visitors to OFI India 2017

Show Guide C3

OFI India 2017 Business Congress & SOPA Soya Conference programme

C4

Smart Short Course programme

C5

Floorplan and listings

C6-8

Exhibitor profiles

OFI INDIA 2017 EXHIBITION CATALOGUE C2 India show intro.indd 1

23/03/2017 12:15

VISIT US AT

OILS & FATS INTERNATIONAL INDIA 2017

STAND B22

EXPERTS IN THE FIELD OF SOLVENT EXTRACTION, EDIBLE OIL REFINERY, OLEOCHEMICALS AND BIOFUEL TECHNOLOGIES TAKING CARE OF CUSTOMERS WORLDWIDE SINCE 1950

By Bernardini

By Bernardini

EXTRACTION

OIL REFINING

By Bernardini

By Bernardini

By Bernardini

OLEOCHEMICALS

BIODIESEL

Dott. MARIO BERNARDINI CEO Cell.: +39.335.369348 mario.bernardini@technoilogy.it

ANDREA BERNARDINI Commercial Director Cell.: +39.366.6269752 andrea.bernardini@technoilogy.it

WWW.TECHNOILOGY.IT info@technoilogy.it

LEONARDO BERNARDINI Financing & Administration Dpt Cell.: +39. 348.4439783 leonardo.bernardini@technoilogy.it

2017 DATES HAVE CHANGED – N EW DAT ES A N N OU N C ED

19 - 20 MAY 2017

Bombay Convention & Exhibition Centre (BCEC), Mumbai, India

FEATURING The international exhibition of suppliers, producers and processors (free to attend) Business Congress & SOPA Soya Conference: New Strategies, New Approaches Smart Short Course: Advanced Extraction, Processing and use of Sunflower, Cottonseed, Soyabean, Canola and Palm Oil

YOUR MUST ATTEND, BUSINESS, TECHNICAL AND INTERNATIONAL EVENT FOR THE OILS AND FATS MARKET

WWW.OFIEVENTS.COM/INDIA SUPPORTERS:

ORGANISED BY:

OFI BUSINESS CONGRESS & SOPA SOYA CONFERENCE BOMBAY CONVENTION & EXHIBITION CENTRE | INDIA | 19-20 MAY 2017

New Strategies – New Approaches 2.00-2.30 Rice bran oil – growth story Biprabuddha Chatterjee, Head of R&D, Adani Wilmar Ltd, India Q&A

FRIDAY 19 MAY 9.00-10.00: Arrival and registration 10.00-10.05: Welcome address Serena Lim, Editor, Oils & Fats International, UK Module 1: World Supply and Demand – 2017/18 Price Forecast and Outlook 10.05-10.35 Global oils and fats overview – the political and economic scenario ahead G Chandrashekhar, Economic Advisor, Indian Merchants’ Chamber Q&A 10.40-11.10 Future direction of oils and oilseeds trade flows Sumit Gupta, Business Manager, McDonald & Pelz Global Commodities Q&A 11.15-11.45: BREAK/VISIT OFI INDIA 2017 EXHIBITION 11.45-12.15 World palm oil supply and demand factors – where are prices heading in 2017/2018?

Fadhil Hasan, Executive Director, Indonesian Palm Oil Association (GAPKI) Q&A Module 2: The Indian Market – Challenges and Opportunities Chair: G Chandrashekhar, Economic Advisor, Indian Merchants’ Chamber 12.20-12.50 Keynote address: Future of the edible oils and oilseeds economy in India Vijay Sardana, International Commodity Trade & Food Policy Expert; Head of Food Security & Agribusinesses, UPL Limited Q&A 12.55-2.00: LUNCH/VISIT OFI INDIA 2017 EXHIBITION

2.35-3.05 Castor oil derivatives – current status and future possibilities for India Narasimhan Santhanam, Director, CastorOil.in, India Q&A 3.10-3.40: BREAK/VISIT OFI INDIA 2017 EXHIBITION 3.40-4.10 India’s current and future palm oil demand Bhavna Shah, Country Representative – India/Sri Lanka, Malaysian Palm Oil Council (MPOC) Q&A 4.15-4.45 Currrent regulatory framework for oils and fats in India Dr Rakesh Trivedi, Professor & Head, Department of Chemical Technology-Oil Technology, Harcourt Butler Technical University, India Q&A

SATURDAY 20 MAY 9.00-10.00: Arrival and registration Module 3: Soybean Processors Association of India (SOPA) Soya Conference Chair: G Chandrashekhar, Economic Advisor, Indian Merchants’ Chamber 10.00-10.30 Soyabean’s role in the eradication of global malnutrition Dr Davish Jain, Chairman, Soybean Processors Association of India (SOPA); President and Managing Director, Prestige Group of Industries, India Q&A

10.35-11.05 Soyabean productivity in India – issues and solutions D N Pathak, Executive Director, Soybean Processors Association of India (SOPA) Q&A 11.10-11.40: BREAK/VISIT OFI INDIA 2017 EXHIBITION 11.40-12.10 Indian soyabean meal – demand/ supply projections for the next five years Dr. Pawan Kumar, Consultant, United States Soy Export Council Q&A 12.15-12.45 Role of biotechnology in Indian oilseed productivity. Speaker to be confirmed Q&A 12.50-1.45: LUNCH/VISIT OFI INDIA 2017 EXHIBITION Module 4: Feedstocks and Applications Chair: D N Pathak, Executive Director, Soybean Processors Association of India (SOPA) 1.45-2.15 Global sunflower seed and oil production, trade & prices and India’s role in world imports Sergey Feofilov, General Director, UkrAgroConsult, Ukraine Q&A 2.20-2.50 Sustainable palm oil production in India and Asia Dr Suresh Motwani, Programme Head, Palm Oil and Soya, Solidaridad South & South East Asia Q&A 2.55-3.25 Implementation of the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme Harnarinder Singh, CEO, Malaysian Palm Oil Certification Council (MPOCC) Q&A

OFI INDIA 2017 EXHIBITION CATALOGUE C3 India show conference.indd 1

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SMART SHORT COURSE BOMBAY CONVENTION & EXHIBITION CENTRE | INDIA | 19-20 MAY 2017

Oilseed and Oil Processing Technology - Focus on Cotton Seed, Mustard Seed, Sunflower Seed and Rice Bran Oil FRIDAY 19 MAY 8.50-9.00: Opening remarks 9.00-9.30: Chemistry and Fundamentals of Oils and Fats Dr Roland Verhé, Ghent University – Bio Base Europe Pilot Plant, Belgium Session 1: Oilseed Processing 9.30-10.00: Optimal Oil Seed Dehulling Dirk Heinrich, Buhler Group, Switzerland 10.00-10.30: Energy Recovery Optimisation in Preparation Plants Farah Sköld, Solex Thermal Science Inc, Canada 10.30-11.00: BREAK 11.00-11.30: Solvent Extraction Fundamentals Direct Extraction of Palm Kernel Oil Richard Ozer, CPM Crown Iron Works, USA 11.30-12.00: Soybean Meal and White Flake Desolventisation: Balancing Quality with Solvent Recovery Richard Ozer, CPM Crown Iron Works, USA Session 2: Mustard, Sunflower Seed, and Palm Processing 12.00-12.30: Full-Pressing of Canola and Sunflower Seed with the Two-step Pressing Process Bernd Rosner, HF Press+LipidTech HF Group, Germany 12.30-13.30: LUNCH 13.30-14.00: Chemical Refining of Oils in Solvent Phase Birger Horns, GEA Mechanical Equipment, Germany 14.00-14.30: Innovative Bleaching

Sarika Wahi, HF Press+LipidTech, HF Group, Germany

during Oil Processing Satish Khadke, Sharplex Filters, India

14.30-15.00: Comparison With Cold Refining Winterising Using Centrifuges And Classical Filtration System In Sunflower Oil Dr Mario Bernardini, CMB Italy Technoilogy, Italy

11.30-12.00: Methods to Reduce 3MCPD and GE Content Marco Muraca, CM Bernardini International, Italy

15.00-15.30: BREAK 15.30-16.00: Advantages of using Membrane Filter Presses in Palm Oil and PKO Processing T Manoharan, Adhithana Engineering Corporation, India Session 3: Fundamentals of Edible Oil Refining 16.00-16.30: Review of Degumming and Refining Technologies Ling Hua, Food & Water Division, Alfa Laval, Denmark 17.30: END OF DAY ONE

SATURDAY 20 MAY 9.00-9.30: Optimising Deodorisation for Quality and Energy Atul Joshi, Desmet Ballestra Group, India 9.30-10.00: Enzyme Solutions Improve Process Yield and Final Product Qualities Aindrila Dasgupta, Novozymes South Asia, India 10.00-10.30: Deodorisation Technology and Automation to Produce High Quality, Low Trans Refined Oil Aarti Chame, DVC Process Technologist, India 10.30-11.00: BREAK 11.00-11.30: Latest Developments in Filtration of Edible Oils and Fats and Biodiesel

12.00-12.30: Critical Issues in Rice Bran Oil Processing Dr Rakesh K Trivedi, HBTU – Harcourt Butler Technical University, India 12.30-13.30: LUNCH Session 4: Specialty Processing 13.30-14.00: Fat Modification Processes: Dry Fractionation, Chemical and Enzymatic Interesterification and Hydrogenation Marc Hendrix, Desmet Ballestra Group, Belgium 14.00-14.30: Improved Enzyme Degumming Process with Far Better Degumming Results Dr Sambasivarao Javvadi, SAI Consulting for AB Enzymes, India 14.30-15.00: Castor Oil as a Feedstock for Oleochemicals Dr Rakesh K Trivedi, HBTU - Harcourt Butler Technical University, India 15.00-15.30: BREAK 15.30-16.00: Protein Concentrate Plant Design for Food and Aquafeed Applications Richard Ozer, CPM Crown Iron Works, USA 16.00-16:30: Sustainability and Ingredient Applications in Line with New Indian Food Regulations Kaustuv Bhattacharya, DuPont Nutrition & Health, Denmark 16.30: END OF PROGRAMME

OFI INDIA 2017 EXHIBITION CATALOGUE C4 India show smart short course.indd 1

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FLOORPLAN & LISTINGS BOMBAY CONVENTION & EXHIBITION CENTRE | INDIA | 19-20 MAY 2017

COMPANY

A

STAND NO

AB ENZYMES GMBH

B24

ADVANCED ENZYME TECHNOLOGIES

C02

ANDREOTTI IMPIANTI SPA

COMPANY

F

STAND NO

COMPANY

FAMSUN OILS & FATS ENGINEERING CO B14 LTD

STAND NO

MECTECH PROCESS ENGINEERS PVT

B18

B03

O

OILS & FATS INTERNATIONAL

D06

B06

FENIX PROCESS TECHNOLOGIES PVT LTD

ARISDYNE SYSTEMS INC

A06

FERRO OILTEK PVT LTD

B04

P

PALL INDIA PVT LTD

C08

B

BÜHLER (INDIA) PVT LTD

B02

FINEPAC STRUCTURES PVT LTD

A05

S

SAP FILTER PVT LTD

B23

B17

HF PRESS+LIPIDTECH

B15

SERVIZI INDUSTRIALI SRL

B04

C

CANTRELL WORLDWIDE INDIA PVT LTD CHEMPRO TECHNOVATION PVT LTD

B29

HRS PROCESS SYSTEMS LTD

B30

SHARPLEX FILTERS (INDIA) PVT LTD

A01

CM BERNARDINI INTERNATIONAL SPA

A02

HYDRO PRESS INDUSTRIES

C03

D05

CMB ITALY - TECHNOILOGY

B22

I

ISOTEX CORPORATION

B16

SOLVENT EXTRACTORS’ ASSOCIATION OF INDIA

C06

COTTOR PLANTS (INDIA) PVT LTD

B17

K

KELTECH ENERGIES LTD

B11

SPEC ENGINEERS AND CONSULTANTS PVT LTD

DESMET BALLESTRA INDIA PVT

B09

KUMAR METAL INDUSTRIES PVT LTD

B07

SUNDEX PROCESS ENGINEERS PVT LTD

B19

DVC PROCESS TECHNOLOGISTS

C04

D10

T

TINTOMETER INDIA PVT LTD

B21

EUROPA CROWN LTD

B07

MALAYSIAN PALM OIL CERTIFICATION COUNCIL MAZDA LIMITED

D01

U

UNITED ENGINEERING (EASTERN) CORPORATION

B12

D E

H

M

OFI INDIA 2017 EXHIBITION CATALOGUE C5 India show floorplan.indd 1

29/03/2017 15:25

EXHIBITOR PROFILES

BOMBAY CONVENTION & EXHIBITION CENTRE | INDIA | 19-20 MAY 2017 HYDERABAD INTERNATIONAL CONVENTION CENTRE | INDIA | 13-14 APRIL 2016

B24

A06

AB ENZYMES GMBH 501B Vaswani Pinnacle, Whitefield Main Road Bengaluru, Karnataka 560066, India Tel: +91 98 45211473 Email: hanumant.bhoite@abenzymes.com Website: www.abenzymes.com Stand contact: Hanumant Bhoite

ARISDYNE SYSTEMS INC 17909 Cleveland Parkway SW, Suite 100, Cleveland Ohio 44135, USA Tel: +1 216 458 1991; Email: dlitle@arisdyne.com Website: www.arisdyne.com Stand contact: Darren Litle

AB Enzymes offers Rohalase Plxtra, an enzyme that delivers superior results in vegetable oil degumming, including rice bran oil, with enhanced oil yiels. Even better results are obtained when the product is combined with Rohalas F – a lysophospholipase.

C02

ADVANCED ENZYME TECHNOLOGIES LTD Sun Magnetica, 5th floor, LIC Service Road, Loiuswadi Thane (West), Maharashtra 400604, India Tel: +91 22 41703200 Fax: +91 22 25835159 Email: rohit@advancedenzymes.com Website: www.advancedenzymes.com Stand contact: Rohit Bangera Advanced Enzymes is a research-driven company with global leadership in the manufacturing of enzymes. It provides enzymatic solutions to various industries, such as human healthcare and nutrition, animal nutrition, baking, fruit and vegetable, brewing and malting, dairy, textile, leather, paper and pulp, oils and fats, biofuels, biomass and biocatalysis, among others.

Arisdyne designs and installs industrial-scale cavitation systems for multiple industries and applications where reducing ingredients/ chemical inputs, increasing reaction rates, mixing and/or reducing/standardising particle size are valued process benefits. Its edible oil refining and biodiesel applications lead to significant reductions in oil loss, energy, chemical, water, silica and/or bleaching earth consumption.

B02

BÜHLER (INDIA) PVT LTD 13D KIADB Industrial Area, Attibele, Bengaluru 562107, India Tel: +91 80 6777 0000; Fax: +91 80 2289 0001 Email: buhler.bangalore@buhlergoup.com Website: www. buhlergroup.com Stand contact: Sandeep K C When it comes to oilseed preparation, Bühler is the natural partner for processing soyabeans, rapeseed, sunflower and corn. The company offers high-availability, low-downtime technology for the preparation of oilseeds prior to extraction.

B17

B06

ANDREOTTI IMPIANTI SPA Via Di Le Prata 148, Calenzano, Florence 50041, Italy Tel: +39 05544870 Fax: +39 0554491735 Email: tommaso.tori@andreottiimpianti.com Website: http://andreottiimpianti.com Stand contact: Tommaso Tori Andreotti Impianti is a world leader in the design, manufacture and supply of state-of theart plants for the edible oils (crushing, solvent extraction and refining) and oleochemicals (fatty acids, glycerine and biodiesel) industries.

The presence of the company extends worldwide to over 60 countries.

CANTRELL WORLDWIDE INDIA PVT LTD 706 Acme Plaza, opposite Sangam Theatre Andheri Kurla Road, Andheri East, Mumbai, Maharashtra 400059, India Tel: +91 22 28346161 Email: cantrellworldwide@vsnl.net Website: www.cantrellworldwide.net Stand contact: R D Bohra Cantrell Worldwide India Pvt Ltd has expertise in the design and manufacture of high capacity turnkey plants and projects for cotton seed and sunflower seed ranging from 300 tonnes/ day up to 3,000 tonnes/day. It manufactures the latest design cotton seed delinter, decorticator, and seed processing equipment for free flowing seeds, nuts and grains.

B29

CHEMPRO TECHNOVATION PVT LTD 802 Astron Tech Park Satellite Road, Iskcon Cross Roads, Ahmedabad, Gujarat 380015, India Tel: +91 98 25005649 Email: ramesh@chempro.in Website: www.chempro.in Stand contact: Ramesh Ahuja Chempro Technovation is a turn-key supplier of edible oil refineries, continuous neutralisation and bleaching, continuous deodorisation, dewaxing/winterisatin, dry fractionation, hydrogenation, chemical and enzymatic interesterification, short path distillation, herbal extraction plants and piecemeal equipment, such as steam jet vacuum systems, membrane filter press, pressure leaf filters, agitated nutsche filters/dryers and high shear mixers.

A02

CM BERNARDINI INTERNATIONAL SPA Via Appia KM 55,900, Cisterna di Latina, LT 04012 Italy Tel: +39 06 96871028 Email: marco.muraca@cmbernardini.it Website: http://www.cmbernardini.com Stand contact: Marco Muraca C.M. Bernardini International is an internationally recognised company providing technologies and plants for the vegetable oil and oleochemical industries. The company owns in-house technologies covering the complete range of vegetable oil and oleochemical processing. More than 1,400 process units have been supplied in around 80 different countries.

B22

CMB ITALY – TECHNOILOGY Via Domenico Federici 12, Cisterna di Latina, LT 04012, Italy Tel: +39 335 369348 Fax: +39 06 9696181 Email: mario.bernardini@technoilogy.it Website: www.technoilogy.it Stand contact: Mario Bernardini CMB Italy – Technoilogy is an international engineering company specialised in the design and manufacture of plants in the field of solvent extraction, edible oil refinery,

OFI INDIA 2017 EXHIBITION CATALOGUE C6 India show exhibitor profiles.indd 1

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EXHIBITOR PROFILES BOMBAY CONVENTION & EXHIBITION CENTRE | INDIA | 19-20 MAY 2017

oleochemicals and biofuel – glycerine technologies. The company is owned by the Bernardini family, active in the field since 1948.

B17

high capacity delinters, twin roll hullers, seven stage lint cleaners and automatic saw filers.

B09

DESMET BALLESTRA INDIA Niton, Block B, 1st Floor No. 11, Palace Road Bangalore, Karnataka 560 052, India Tel: +91 80 66598200 Fax: +91 80 22352492 Email: nsshetty@desmetindia.com Website: www.desmetballestra.com Stand contact: N Srinath Shetty

COTTOR PLANTS (INDIA) PVT LTD 706 Acme Plaza, opposite Sangam Theatre Andheri Kurla Road, Andheri East Mumbai, Maharashtra 400059India Tel: +91 22 28264201 Fax: +91 730 3178240 Email: cottor@vsnl.com Website: www.cottor.com Stand contact: Bharatt Chandda Cantrell USA sets the world standard in seed processing and licenses Cottor Plants (India) Pvt Ltd for the manufacture of cotton seed and sunflower seed processing equipment.

Its promoters have 40 years’ experience in the design and technology for seed cleaners,

Desmet Ballestra is the world leader in the fields of engineering and supply of plants and equipment for oil and fat, the oleochemical and biodiesel industries. The group has 70 years of experience, strong R&D capacity and the most extensive customer references in the industry. The group has 17 local subsidiaries throughout the world and has set up more than 7,000 units in 152 countries.

C04

DVC PROCESS TECHNOLOGISTS DVC House, Survey No. 111/11/1 Opp. to Mercedes Benz Showroom Pune Bangalore Hwy Service Road Behind Sadanand Resorts, Baner Pune, Maharashtra 411045 India Tel: +91 20 65601532 Email: ashish@dvcprocesstech.com Website: www.dvcprocesstech.com Stand contact: Ashish Topale DVC Process Technologists, since its founding in 2001, has a strong presence in the edible oils industry, not by virtue of time but by excellence. It designs, manufactures and supplies various process technologies, along with equipment and turnkey solutions for edible oil refining, oilseed extraction and value added processes for by-products.

OFI INDIA 2017 EXHIBITION CATALOGUE C7 India show exhibitor profiles.indd 2

30/03/2017 10:26

EXHIBITOR PROFILES BOMBAY CONVENTION & EXHIBITION CENTRE | INDIA | 19-20 MAY 2017

B07

EUROPA CROWN LIMITED Waterside Park, Livingstone Road, Hessle, HU13 0EG United Kingdom Tel: +44 1482 640099 Fax: +44 1482 649194 Email: PSmith@europacrown.com Website: www.europacrown.com Stand contact: Paul Smith Europa Crown Ltd is a global supplier of oilseed extraction technology, refining plants and equipment. Established in 1989, it has developed into a global company delivering solutions that surpass all expectations. This common goal and a proactive attitude have made Europa Crown the prominent force within the industry.

B14

FAMSUN OILS & FATS ENGINEERING CO LTD No. 1 Huasheng Road, Yangzhou 225127, Jiangsu China Tel: +86 514 8777 0799/+86 139 5105 6892 Fax: +86 514 8777 0733 Email: maniqian@muyang.com Website: www.muyang.com Stand contact: Mani Qian Famsun Oils & Fats is one of Famsun’s core industries. It has a professional R&D team consisting of internationally and domestically well-known experts, committed to machinery engineering research and development of oilseed pretreatment, solvent extraction, oils and fats refining, and industrial automation.

Famsun oils & fats is an integrated solution provider of engineering and services in oils and fats processing.

absorption, extraction), mixing, solid-liquid separation, edible oil refining and biodiesel production. Fenix’s products include structured and random packings, column internals, trays and processing equipment for oil and gas.

B04

FERRO OILTEK PVT LTD A-98, Addl. MIDC, Anand Nagar MIDC, Ambernath East, Thane, Maharashtra 421506, India Tel: +91 25 12621362 Email: jenendra@ferrooiltek.com Website: www.ferrooiltek.com Stand contact: Jenendra Bohra Ferro Oiltek is a worldwide leader in cotton seed processing machinery. With huge manufacturing facilities, the company also caters to other oilseed and extraction industries. Ferro Oiltek collaborates with Servizi Industriali Srl on centrifuge separator technology.

A05

FINEPAC STRUCTURES PVT LTD J-25, S Block Midc Bhosari, Pune, Maharashtra, India Tel: +91 20 66120665 Fax: +91 20 2711 9512 Email: sunilnaikwadi@finepacindia.inWebsite: www. finepacindia.in Stand contact: Sunil Naikwadi Finepac Structures Pvt Ltd can provide an answer to all mass-transfer related needs, from distillation and absorption to extraction and mixing.

B15

B03

FENIX PROCESS TECHNOLOGIES PVT LTD K-6/1, Malini, Erandewane CHS, near Deenanath Mangeshkar Hospital, Pune, Maharashtra 411004 India Tel: +91 20 65008772/73 Fax: +91 20 25458454 Email: info@fenix.in Website: www. fenix.in Stand contact: M V Rao Fenix provides solutions on equipment and technology on mass transfer (distillation,

HF PRESS+LIPIDTECH Seevestrasse 1, Hamburg 21079, Germany Tel: +49 40 77179 122 Fax: +49 40 77179 644 Email: sarika.wahi@hf-group.com bernd.rosner@hf-group.com Website: www.hf-press-lipidtech.com Stand contact: Sarika Wahi, Bernd Rosner The HF Press+LipidTech portfolio ranges from individual machines to complete systems for oilseed preparation, oilseed pressing and crude oil refining. The company also

supplies special screw presses for animal waste products or special applications in the dewatering sector. HF Press+LipidTech’s crude oil refining technology (degumming/ neutralisation, bleaching and deodorisation) is trend-setting.

B30

HRS PROCESS SYSTEMS LTD 201/201 Karan Selene, 851 Bhandarkar Institute Road, Pune, Maharashtra 411004, India Tel: +91 20 2566 3581, +91 6604 7894/95 Fax: +91 20 2566 3583 Email: info@hrsasia.co.in Website: www.hrsasia.co.in Stand contact: Naresh Agarwal HRS Process Systems’ product range includes ECOFLUX corrugated tube and smooth tube heat exchangers, HRS Funke plate heat exchangers, UNICUS scrapped surface heat exchangers, HRS hot water systems, heat exchanger and food processing systems.

C03

HYDRO PRESS INDUSTRIES 3/170, A-4, Sivasakthi Colony, Industrial Estate (P.O.), Coimbatore 641021, India Tel: + 91 93 44835880 Email: nisha@hydropressindustries.com Website: www.hydropressindustries.com Stand contact: Nisha Kuttan Hydro Press Industries is a leading filter press manufacturer in India. Its products include various types of filter presses, such as recessed chamber and membrane filter presses. The company works mainly in the edible oils sector.

B16

ISOTEX CORPORATION PVT LTD 1st Floor, Energy Center, 178/1/C, GIDC Industrial Estate, Naroda, Ahmedabad, Gujarat 382330, India Tel: +91 96 01749878 Email: janmejay@isotexcorp.com Website: www.isotexcorp.com Stand contact: Janmejay Pandya Isotex Corporation provides a one-stop solution for steam boilers, thermic fluid

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heaters, hot water generators, thermo siphons and power boilers. The company is a turn-key solution provider.

B11

KELTECH ENERGIES LTD 7th floor, Embassy Icon No. 3, Infantry Road Bangalore, Karnataka 560001, India Tel: +91 80 2225145 / +91 98 80925131 Fax: +91 80 222 53857 Email: devan@perlite.in Website: www.keltechenergies.com Stand contact: Devan Menon

D01

Keltech Energies Ltd produces the TopKEL/ Radiolite filter aid, used to improve the filtration process of edible oils by removing undesirable components. TopKEL perlite filter aid is manufactured by Keltec with Japanese technology in the company’s new state-ofthe-art plant, while radiolite is imported and distributed by Showa Chemical Industries.

B07

KUMAR METAL INDUSTRIES PVT LTD Plot No 7, Mira Industrial Estate Western Express Highway, Mumbai, Maharastra 401104, India Tel: +91 22 28459100 Fax: +91 22 28456263 Email: info@kumarmetal.com Website: www.kumarmetal.com Stand contact: Rushin Shah Kumar Metal Industries is a 77-year-old Indiabased, globally established engineering and manufacturing organisation specialised in providing turnkey solutions for the oils and fats industry, from oil mill and solvent extraction to refinery plants. It has a presence in more than 35 countries with around 500 installations.

D10

MALAYSIAN PALM OIL CERTIFICATION COUNCIL 15th floor, Bangunan Getah Asli (Menara), 148 Jalan Ampang, 50450 Kuala Lumpur, Malaysia Tel: +603 2181 0192 / +6019 397 1248 Email: geerija@mpocc.org.my Website: www.mpocc.org.my Stand contact: Geerija Manon MPOCC is an independent non-profit

organisation established in December 2014 to develop and operate the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme. MSPO is a national initiative and scheme developed for palm oil plantations, independent and organised smallholders, and palm oil processing facilities to be certified against the requirements of the MSPO standard.

MAZDA LIMITED Mazda House, 650/1 Panchwaty 2nd Lane Ambawadi, Ahmedabad, Gujarat 380006, India Tel: +91 79 40007000 Fax: +91 79 26565605 Email: vacuum@mazdalimited.com Website: www.mazdalimited.com Stand contact: Prashant Desai Mazda Limited, situated in Ahmedabad, is a leading supplier of steam jet boosters, ejector systems for deodoriser/bleacher/shortmix applications, ejectors for SEPs, vacuum water chillers, VAMs, two-stage water ring vacuum pumps, and falling film evaporators for fresh water plants.

B18

MECTECH PROCESS ENGINEERS PVT LTD 366 Udyog Vihar, Phase 2, Gurgaon, Haryana 122016, India Tel: +91 124 4700800 Fax: +91 124 4700801 Email: anik.roy@mectech.co.in Website: www.mectech.co.in Stand contact: Anik Roy Mectech Process Engineers Pvt Ltd is a leading manufacturer of plants and machinery and turnkey projects for edible oil refineries.

It has been serving the industry since 1980.

Mectech’s product range includes solvent extraction plants, projects for vegetable oil refineries, filters and projects for value addition.

D06

OILS & FATS INTERNATIONAL Quartz House, 20 Clarendon Road, Redhill, Surrey RH1 1QX, UK

Tel: +44 1737 855000 Fax: +44 1737 855 034 Email: markww@quartzltd.com, nikunj@quartzltd.com Website: www.oilsandfatsinternational.com Stand contact: Mark Winthrop-Wallace and Nikunj Vishwakarma Oils & Fats International (OFI) produces the market-leading Oils & Fats International magazine, dedicated to addressing key issues within the oils and fats industry. It is an important piece of communication read by decision-makers throughout the industry. OFI is part of Quartz Business Media.

C08

PALL INDIA PVT LTD No 1., Sarakki Industrial Layout Ring Road, Nager 6th Phase, Bengaluru, Karnataka 560078, India Tel: +91 97 39977876 Email: anand_varadarajan@ap.pall.com Website: www.food-beverage.pall.com Stand contact: Anand Varadarajan Pall Corporation is a global filtration, separation and purification leader providing solutions to meet critical fluid management needs. Pall Food and Beverage provides products and services to ensure product quality, maintain process reliability in beverage and food production and assist in consumer protection and reduction of operating costs.

B23

SAP FILTER PVT LTD Plot No. A-5, Sector 1, Vasai Taluka Industrial Estate Goraipada, Vasai (East) District, Plaghar Maharashtra 401208, India Tel: +91 250 2458962 Fax: +91 250 2458982 Email: info@sapfilter.com Website: www.sapfilter.com Stand contact: Pradeep Pankan Since its founding in 1996, SAP Filter Pvt Ltd has made a mark in manufacturing and exporting a spectrum of filtration equipment.

Its product range is renowned for its quality and durability. The company’s filtration equipment finds applications in various industries, such as vegetable oil refineries.

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EXHIBITOR PROFILES BOMBAY CONVENTION & EXHIBITION CENTRE | INDIA | 19-20 MAY 2017

B04

SERVIZI INDUSTRIALI SRL Via Marie Curie, 19 – Zona Industriale Ponte Rizzoli Bologna, Ozzano dell’Emilia 40064, Italy Tel: +39 051 795080 Fax: +39 051 799337 Email: chiarapoggi@macfuge.com Website: www.macfuge.com Stand contact: Chiara Poggi Macfuge is the leading provider of advanced technologies, as well as development, manufacturing and services for the separation and clarification industries worldwide. It invests in separation technology to carry out progress, transformation and realisation of high quality engineering products.

C06

SPEC ENGINEERS AND CONSULTANTS PVT LTD 2/86 W.H.S Kirti Nagar, near Saraswati Garden New Delhi 110015, India Tel: +91 11 41420206 Fax: +91 11 25193715 Email: rajvinder@specengineers.com Website: www.specengineers.com Stand contact: Rajvinder Singh SPEC Engineers & Consultants Pvt Ltd has been serving the vegetable oil and biodiesel industry worldwide since 1994 in the capacity of a consultant, turn-key supplier, EPC and PMC, and upgrading with innovative ideas through deep knowledge. SPEC’s strength is the trust and confidence of clients.

B19

A01

SHARPLEX FILTERS (INDIA) PVT LTD R-664,Rabale MIDC, Navi Mumbai, Maharashtra State 400701, India Tel: +91 22 6940 9850 Fax: +91 22 27696325 Email: sales@sharplexfilters.com Website: www.sharplex.com Stand contact: Satish Khadke Sharplex is a leading manufacturer of process filtration equipment to the edible oil industry, having supplied 2,000 filters to more than 60 countries in the last 20 years. Sharplex is an ISO 9001:2004/14001/18001 company. Its manufacturing facilities are approved by Lloyds Registers for PED inspection. Sharplex is a CRISIL highest rating company.

SUNDEX PROCESS ENGINEERS PVT LTD 201 Omex Chambers, Rajarshi Shahu Maharaj Marg Andheri (East), Mumbai, India Tel: +91 22 26820336 Fax: +91 22 26824830 Email: rohan@sundexindia.com Website: www.sundexindia.com Stand contact: Rohan Gulati

a leading manufacturer of innovative technologies for colour measurement water analysis under the name Lovibond & Tintometer.

B12

UNITED ENGINEERING (EASTERN) CORPORATION Plot 75, Sector 3 IMT Manesar, Gurgaon, Haryana 122051, India Tel: +91 124 4273011 Email: sales@uec-india.com Website: www.uec-india.com Stand contact: Rabindra Gandhi United Engineering (Eastern) Corporation offers design, manufacture and supply of individual machines to complete plants for edible oilseed preparation and pressing, including screw presses from 25 tonnes/day to 500 tonnes/day capacity. It has proven technology for high capacity cold pressing of oilseeds.

United Engineering (Eastern) Corporation has a global presence with installations in Europe, Australia, Asia and Africa.

Sundex Process Engineers Pvt Ltd supplies the complete turnkey solution for edible oil requirements, right from design to manufacture and supply. The company’s project engineering competence is special as it leverages the strength from in-house expertise, tied up with specialists to ensure best output.

B21

D05

SOLVENT EXTRACTORS’ ASSOCIATION OF INDIA 142 Jolly Maker Chambers No. 2, 14th Floor, 225 Nariman Point, Mumbai 400021, India Tel: +91 22 22021475 Fax: +91 22 22021692 Email: solvent@mtnl.net.in Website: www.seaofindia.com The Solvent Extractors’ Association of India was formed in 1963 to foster the development and growth of the solvent extraction industry and overall development of the vegetable oil industry in India to increase the country’s selfreliance in vegetable oils.

TINTOMETER INDIA PVT LTD B-91, APIE, Sanathnagar Hyderabad, Telangana 500018 India Tel: +91 93 22443433 Fax: +91 40 46479922 Email: k.kantawala@tintometer.com Website: www.lovibond.com Stand contact: Kamini Kantawala Tintometer India Pvt Ltd, a wholly-owned subsidiary of Tintometer Ltd UK, started operations in 2015 in Hyderabad, India.

The Tintometer Group, with its 130+ years of knowledge, experience and technical innovation, has been acknowledged as

Visit stand D06 to collect your complimentary copy of the Oils & Fats International magazine and register for our free weekly newsletter.

For more information, contact editor Serena Lim at serenalim@quartzltd.com or sales manager Mark Winthrop-Wallace at markww@quartzltd.com.

Oils & Fats International would like to thank all our exhibitors, speakers and supporting associations (SEA, OTAI, SOPA, CSIR-IICT and FOSFA).

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OILS & FATS INTERNATIONAL

INDIA 2017

VISIT US ON STAND B06

The best way to treat your oilseeds.

Flaking Mill OLFB. The flaking mill opens a new dimension when processing soy, rapeseed, sunflower and corn, among others.

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