Utilization of Renewable Resources in the Oleochemical Industry Ulrich Schörken / Stefan Verseck Cognis GmbH DBU Fachgespräch „Stoffliche Nutzung von Abfallstoffen aus der Landwirtschaft“ Osnabrück; 21- 22.10.2008 Cognis in brief • Leading global specialty chemicals company headquartered in Monheim, Germany • 2007 sales: €3,518 million • 2007 operating result (Adjusted EBITDA): €410 million • Approximately 7,600 employees operating production sites and/or service centers in about 30 countries • Over 160 years’ experience in oleochemicals • Owners since Nov. 30, 2001 are private equity funds advised by: Permira, GS Capital Partners, SV Life Sciences 21.10.2008 U. Schörken 2 Our strategic portfolio: business structure Changes 2008: • Hair / Body / Oral Care • Skin Care • Home Care • Industrial & Institutional Cleaning • Food Technology • Polymers, Coatings & Inks • Functional Food • Dietary Supplements • Synlubes Technology • AgroSolutions • Pharmaceuticals & Healthcare • Mining & Ion-Transfer Pulcra Chemicals sold to Fashion Chemicals in 07.2008 Oleochemicals sold to PTT Chemicals in 07.2008 Technology • Skintex® • Silicates 21.10.2008 U. Schörken 3 Oleochemical Raw Materials Vegetable Oils Animal Fats Fish Oils Cognis products are traditionally based on renewable resources ! 21.10.2008 U. Schörken 4 Oleochemical Raw Materials World Production of Oils and Fats 2004 [mil mt] vegetable (approx. 83%) 30.7 30.6 animal (approx. 17%, declining) 21.8 17.1 14.9 9.5 21.10.2008 U. Schörken th er s 16.0 O La ur ic s er Su nf lo w R ap es ee d Fa ts Pa lm al m An i So yb ea n 6.6 5 Oleochemical Raw Materials World Consumption of Oils and Fats 2004 [mil mt] 131.1 106.2 18.4 Total 6.5 Food Chemistry Feed 81% 14% 5% World Consumption of Mineral Oil in 2004: approx. 4 bil mt 21.10.2008 U. Schörken 6 Oleochemical Raw Materials Vegetable Oil consumption in EU 25 Food Consumption of Vegetable Oils Industrial Consumption of Vegetable Oils Sunflower 12 Palm 10 Sunflower 12 Soybean Soybean Palm 10 Rapeseed Total 6 Mio tons Other 8 4 Other 8 Total 6 4 Total Other Rapeseed Palm Soybean Sunflower 21.10.2008 U. Schörken 2006/07 Sunflower 2005/06 2004/05 2003/04 0 2006/07 2005/06 2004/05 2003/04 0 Total Other Rapeseed Palm Soybean 2 2002/03 2 2002/03 Mio tons Rapeseed 7 Oleochemical Processes New Product: Biodiesel Strong increase of Biodiesel production in Germany until 2006; Source: UFOP Structure: Methyl ester Process: Alkaline Transesterification Raw material: Rapeseed, Soy + others Prospects: Worldwide: Strong Growth Germany: Currently: Economic problems 21.10.2008 U. Schörken 8 Oleochemical processes Raw Materials Oleochemicals Sulfo Fatty Acid Esters Fatty Acid Methyl Esters Fatty Alcohols Oils & Fats Specialties Guerbet Alcohols Alkyl Chlorides Fatty Alcohol Ethoxylates Fatty Alcohol Sulfates Technical Esters Alkyl Polyglucosides Conjugated Fatty Acids Alkyl Epoxyesters Dimer Acids Fatty Acids Ethoxylates Azelaic/Pelargonic Acids Fatty Acid Esters Fatty Acids Triacetin Partial Glycerides Glycerine The oleochemical industry is traditionally based on chemical processes. 21.10.2008 U. Schörken 9 Oil based by-product streams & value added products Food industry based by-products: • Soapstocks and other refinement residues • Vegetable oil distillates • Oil press cakes Pulp and Paper by-products: • Crude tall oil and tall oil pitch Other potential by-products: • Wax fractions ? • Glycerol from Biodiesel • … (to be identified) Top Value Added Chemicals From Biomass US Department of Energy Report, 2004: 21.10.2008 U. Schörken 10 Oil based by-product streams & value added products Lipid based value added products from by-product streams: • Lipid soluble vitamins (vitamin A/E) Carotenoid • Sterols and stanols • Polyphenols Squalene • Carotenoids • Squalene • Phospholipids O • Natural waxes Phospholipid O O • Glycerol based derivatives O • Derivatives from “cheap” fatty acids O O P O N+ O- • … 21.10.2008 U. Schörken 11 Oil based by-product streams & value added products Cognis products based on by-product utilization: Oil based by-product baseed Vitamin E HO O Covitol® Covi-ox® Sterols and Sterol esters HO Hydagen® Chitopharm® Non oil based by-product based: Chitosan (manufactured from crab shells) NH2 HO OH O O HO O NH OH OH CH3 12 OH HO O O 21.10.2008 U. Schörken O O O HO OH N H2 HO m NH2 Outlook / For Discussion Principal Cognis interests: • Oil based residues for the production of derivatives • Oil based residues for the extraction of active ingredients • Non oil based residues for the production of value added products for cosmetic and nutritional applications To discuss: • New opportunities in by-product utilization • Identification of new value added products Critical issues: • Comercial accession to by-product streams • Long term security of streams 21.10.2008 U. Schörken 13