Biobased Products Value Chain - Feedstocks, Products & Markets Update: 25.5.2014 RRM-Meeting Brussels, 2nd April 2014 Rainer Busch, T+I Consulting Dietrich Wittmeyer, ERRMA 1 Bio-based products‘ value chains Raw Materials Feedstock • • • • • Sugar Crops Starch Crops Wood Oil seeds Animals • Flax • Hemp • etc. • • • • • Sugar Starch Cellulose Oils Fats • Fibres Intermediates • Hydrolysate • • • • Fatty acids Fatty alcohols Glycerine etc. (Platform) Chemicals • • • • • • • Lactic acid Butanediol Propanediol Succinic acid Ethanol Ethylacetate etc. Materials, Products • • • • Poly lactic acid Polyurethanes Polyesters Surfactants • Composites Markets • • • • • • • Packaging Adhesives Paints & Inks Lubricants Solvents Durable Plastics Biodegradable Plastics • Detergents 2 Biobased Industries Consortium: Five Value Chains • Value Chain 1: From lignocellulosic feedstock to advanced biofuels, bio-based chemicals and biomaterials: realising the feedstock and technology base for the next generation of fuels, chemicals and materials • Value Chain 2: The next generation forest-based value chains: utilisation of the full potential of forestry biomass by improved mobilisation and realisation of new added value products and markets • Value Chain 3: The next generation agro-based value chains: realising the highest sustainability and added value by improved agricultural production, and new added value products and markets • Value Chain 4: Emergence of new value chains from (organic) waste: from waste problems to economic opportunities by realising sustainable technologies to convert waste into valuable products • Value Chain 5: The integrated energy, pulp and chemicals biorefineries: realising sustainable bio-energy production, by backwards integration with biorefinery operations isolating higher added value components 3 OIL SEEDS & VEGETABLE OILS 4 Feedstock • Oil seeds • Animals Raw Materials • Oils • Fats Intermediates • Fatty acids • Fatty alcohols • Glycerine (Platform) Chemicals Materials, Products • Surfactants Markets • Paints & Inks • Lubricants • Detergents Oilseeds: European Production & Trade EU-27 Source: Fediol Seeds Soybeans Rapeseeds Sunflower seeds Cottonseeds Linseed Others Seeds Production of Oilseeds (1000 tonnes) 2020 2010 2011 2012 (est. capacity) 1.000 20.305 6.866 385 168 1.213 19.044 8.187 575 161 819 19271 6700 271 125 9 35 0 28.733 29.215 27.186 Seeds Groundnuts Soybeans Rapeseeds Sunflower seeds Cottonseeds Copra Linseed Sesame Consumption of Oilseeds (thousand tonnes) 2010 2011 2012 2020 (est.) Sesame Others 61 14.048 21.765 6.507 411 0 0 677 73 13.306 21.659 7.881 599 0 0 599 61 12.610 22.685 6.661 271 0 2 636 97 97 103 9 35 0 43.575 44.249 43.029 70 13.075 1.702 27 60 0 73 12.141 2.691 394 57 0 61 11860 3536 233 0 0 0 0 2 520 101 15.555 446 101 15.903 533 106 16.331 Palm kernel Seeds Groundnuts Soybeans Rapeseeds Sunflower seeds Cottonseeds Copra Palm kernel Linseed Import of Oilseeds (thousand tons) 2010 2011 2012 Groundnuts Soybeans Rapeseeds Sunflower seeds Cottonseeds Copra Palm kernel Linseed Sesame 2010 2011 2012 9 27 242 386 34 0 0 11 0 48 76 700 33 0 0 8 0 69 122 272 0 0 0 22 4 4 3 713 869 488 6 Plant Oils: European Production & Trade EU-27 Source: Fediol Import of Oils (thousand tons) 2010 2011 2012 Production of Oils (thousand tonnes) 2010 2011 2012 2020 (est.) Groundnut Soya Rape Sunflower Cotton Copra Palm kernel Linseed Castor Sesame Maize germ Grape pips Palm 13 2.368 9.419 2.391 53 0 0 155 0 0 208 17 0 14.624 14 2.277 8.874 2.739 47 0 0 187 0 3 134 26 0 14.301 13 2.343 9.344 2.729 37 0 0 202 0 2 204 22 0 14.896 Groundnut Soya Rape Sunflower Cotton Copra Palm kernel Linseed Castor Sesame Maize germ Grape pips Palm Palm 94 2.621 9.671 3.239 54 827 518 139 154 5 186 19 87 2.546 9.236 3.321 50 638 525 166 146 9 121 26 76 739 625 756 3 651 546 3 148 7 17 0 4.930 8.501 62 365 331 1.020 0 649 456 4 144 6 98 0 5.729 8.862 Export of Oils (thousand tons) 2010 2011 2012 Consumption of Oils (thousand tonnes) 2010 2011 2012 2020 (est.) Groundnut Soya Rape Sunflower Cotton Copra Palm kernel Linseed Castor Sesame Maize germ Grape pips 83 690 405 1.001 1 841 529 10 156 6 3 4 5.414 9.143 72 1.813 9.421 3.549 37 634 443 177 142 6 224 22 Groundnut Soya Rape Sunflower Cotton Copra Palm kernel Linseed Castor Sesame Maize germ Grape pips 2 437 153 153 0 14 11 26 2 1 25 2 3 470 263 174 0 13 21 24 2 1 30 0 3 895 254 200 0 15 13 29 2 2 78 0 Palm 140 209 188 966 1.210 1.678 5.274 4.721 5.541 22.801 21.592 22.181 7 Plant Oils: European Consumption per Sector EU-27 Source: Fediol Consumption of oils per sector (thousand tonnes) 2020(est. 2010 * 2011 ** 2012 capacity) Use Food Feed Energy Electricity Fuel Biodiesel Other industrial 13.189 1.000 8.656 800 220 7.636 1.729 24.574 12.918 971 8.280 500 100 7.680 1.571 23.740 * including 2050 tons of olive oil ** including 2045 tons of olive oil 8 Plant Oils: Consumption in other industrial application EU-27 Use Consumption of oils in other industrial applications (1000 tonnes) 2010 2011 2012 2020 (est.) Oleochemistry Fatty acids Fatty alcohols Fatty esters Fatty nitriles Metal soaps Other ind. use 9 Also available: • • • • Global production of Palm & Palm Kernel oil Global production of Soybean oil Global production of Rapeseed oil Global production of sunflower oil Source: FAO 10 Plant Oil Derivatives: European Production EU-27 Source: EUROSTAT Production of Oil Derivatives (thousand tonnes) 2010 2011 2012 2020 (est. capacity) Fatty acids* Fatty alcohols Glycerine** 2.556 447 804 2.735 442 831 *Industrial stearic acid, industrial oleic acid, industrial tall oil fatty acids, Industrial monocarboxylic fatty acids distilled, industrial monocarboxylic fatty acids, palmitic acid, stearic acid, their salts and esters, lauric acid and others, their salts and esters, oleic, linoleic or linolenic acids; their salts and esters ** Crude glycerine; glycerine waters and lyes (av. content 50%) 11 ANIMAL FATS 12 Table 7a (Source: FAOSTAT) Production of Fats (thousand tonnes) 2020 (est. 2010 2011 2012 capacity) Pig Cattle Poultry Fish Others Tallow Table 7d Feedstock Pig Cattle Poultry Fish Others Tallow 743 755 (Source: FAOSTAT) Consumption of Fats (thousand tonnes) 2010 2011 2012 2020 (est.) 752 13 Table 7b (Source: FAOSTAT) Import of Fats (thousand tonnes) 2010 Pig Cattle Poultry Fish Others Tallow Table 7c 2012 2020 (est.) 635 30 9 447 (Source: FAOSTAT) 2010 Pig Cattle Poultry Fish Others Tallow 2011 Export of Fats (thousand tonnes) 2011 2012 2020 (est.) 697 0 5 438 14 Table 7e Sector Food Feed Energy Chemical use (Source: APAG 2012) Consumption of Fats per sector (thousand tonnes) 2010 2011 2012 2020 (est.) 537 501 500 15 SUGAR 16 Sugar: European Sugar Crops Production EU-27 Source: FAOSTAT Feedstock Sugar Beet Sugar Cane Production (thousand tonnes) 2010/2011 2011/2012 2012/2013 105.000 127.400 114.700 5.320 5.200 5200 17 Sugar: European Sugar Crops Trade EU-27 Feedstock Sugar Beet Sugar Cane Import (thousand tonnes) 2010/2011 2011/2012 2012/2013 633 3 Feedstock Sugar Beet Sugar Cane Export (thousand tonnes) 2010/2011 2011/2012 2012/2013 296 2 18 Sugar: European Sugar Production and Trade EU-27 Source: CEFS, FAOSTAT, EU Commssion (DG Agri) from Sugar Beet Sugar Cane Table 3e Feedstock Import Export Sugar production (000 tonnes) 2010/2011 2011/2012 2012/2013 18.510 17.096 18.270 500 500 19.010 17.596 18.270 (Source: EUROSTAT - COMEXT) Sugar Trade Balance (thousand tonnes) 2010/2011 2011/2012 2012/2013 3.105 4.411 2.166 1.361 939 3.050 19 Sugar: European Sugar Consumption per Sector EU-27 Use Food Feed Energy Other industrial Fermentation (ethanol) Chem. Ind. Consumption of Sugar per sector (1000 2010/2011 2011/2012 2012/2013 19.949 20.646 20 STARCH 21 Starch: European Starch Plants Production & Trade EU-27 Source: AAF Feedstock Wheat Maize Barley Oats Rye Triticale Rice Others Total Cereals Potatoes Production of Cereals (million tonnes) 2010/2011 2011/2012 2012/2013 2020 (est.) 137,2 57,2 52,4 7,4 7,3 10,5 1,8 4,1 277,9 138,8 68,6 51,3 7,7 6,7 9,9 1,9 4,3 289,2 134,1 58,1 54,1 7,8 8,6 9,8 1,9 5,4 279,8 146 73,6 55,5 1,8 30,4 57,5 - - - Source: EUROSTAT Feedstock Wheat Maize Barley Oats Rye Triticale Rice Others Potatoes Import of Cereals (million tons) 2010/2011 2011/2012 2012/2013 2020 (est.) 4,5 7,6 0,2 0,0 0,0 0,0 1,0 0,1 7,1 6,3 0,4 0,0 0,0 0,0 0,9 0,1 5,3 11,0 0,1 0,0 0,1 0,9 0,1 5,7 8,7 0,3 1,4 0,5 - - - - Export of Cereals (million tons) 2010/2011 2011/2012 2012/2013 2020 (est.) Wheat Maize Barley Oats Rye Triticale Rice Others Potatoes 22,2 1,8 7,6 0,1 0,1 0,0 0,2 0,0 15,7 3,9 5,7 0,2 0,1 0,0 0,2 0,0 21,7 1,8 7,8 0,1 0,1 0,0 0,2 0,0 16,3 2,4 3,8 0,1 0,2 - - - - 22 Starch: European Starch Production & Trade EU-27 Table 2b from Wheat Maize Potatoes and others Co-products (est.) (Source: AAF, EUROSTAT, COMEXT) Starches & sweeteners produced (1000 tonnes) 2008 2011 2012 2020 (est.) 3.500 4.400 1.500 9.400 Import Export Total Consumption 3.900 4.700 1.400 5.000 15.000 357 1.002 14.355 3.900 4.800 1.500 5.000 15.200 257 1.245 14.212 Table 2d (Source: EUROSTAT, COMEXT ) Import of Starches & sweeteners (thousand tonnes) 2010 2011 2012 2020 (est.) 236 357 257 Table 2e (Source: EUROSTAT, COMEXT ) Export of Starch (thousand tonnes) 2010 2011 2012 2020 (est.) 1.253 1.002 1.245 23 Starch: European Starch Consumption per Sector EU-27 Table 2c Food & Drinks Feed Energy Other industrial (Source: AAF, CEPI) Consumption of Starch & Seweeteners per sector (thousand tonnes) 2010 2011 2012 2020 (est.) 5.400 5.500 100 100 unknown unknown 3.400 3.300 2.000 2.000 Curragating & Adhesives 500 500 Chemicals & Fermentation Non-food & textiles 500 400 400 400 Paper & Board 1.871 24 CELLULOSE 25 Cellulose: European Lignocellulose Feedstock Consumption EU-27 Source: CEPI Feedstock Softwood Hardwood Straw Flax Hemp Others 2010 71.459 37.091 Consumption (thousand tonnes) 2011 2012 2020 (est. capacity) 71.311 38.529 68.881 36.665 108.550 109.840 105.547 Source: CEPI (note: CEPI represents only 18 MS, but these consume more than 95% of Europe’s paper pulp) 26 Cellulose: Production of Cellulose EU-27 Source: CEPI Feedstock Cellulose produced from Wood (thousand tonnes) 2010 2011 2012 2020 (est. capacity) Softwood Hardwood Others* 38.695 38.491 38.155 258 38.749 211 38.367 * Bagasse, wheat straw, hemp 27 Cellulose: European Consumption of Cellulose EU-27 Source: CEPI Use Food Feed Energy Other industrial Paper Fibres Chemicals Ethanol Others Consumption of Cellulose per sector (thousand tonnes) 2010 2011 2012 2020 (est. ) 43.849 43.586 42.264 28 PRODUCTS & MARKETS 29 Lubricants Source: FUCHS AG Product Group Biolubricants 1) 2) 3) TOTAL Application Area Hydraulic Fluids Chainsaw Lubricants Mould Release Agents Other lubricants Market Volume "Bio" 2008 (in tons) Market Volume "Bio" 2020 (in tons) Market Volume "Bio" 2030 (in tons) * 68.000 29.000 9.000 31.000 230.000 40.000 30.000 120.000 260.000 40.000 60.000 440.000 137.000 420.000 800.000 Figures for 2030 are estimations under the condition that the LMI recommendation #9 will be realized in the next few years, including the mandatory use of biolubricants in dedicated applications & areas by legislation, greening of public procurement, as well as the creation of own CN/PRODCOM numbers for special biobased product groups at EU-level Biodegradable and / or Biobased Lubricants Based on European Biolubricants Markets (Frost& Sullivan, 2007): Forecasts for Europe 2003-2013 Fuchs Europe Schmierstoffe GmbH 30 Platform Chemicals EUROPE Producing companies 2013* Production capacities 2011* (t/a) Production capacities 2013* (t/a) Production capacities 2020* (t/a) 1,4-Butanediol Adipic acid Azelaic acid Epichlorohydrin Isosorbide Lactic acid (L-D-L+D) Monoethylene glycol Natural oil polyols Polyether polyol Propylene Propylene glycol Succinic acid Other building blocks 0 1 0 2 1 2 1 4 3 1 1 4 2 0 0 0 44.000 3.000 36.000 < 50 n.a. n.a. 0 0 3.200 45.000 0 n.a. 0 50.000 3.000 36.000 < 50 n.a. n.a. n.a. 20.000 28.200 45.000 40.000 n.a. n.a. 50.000 3.000 45.000 < 50 n.a. n.a. n.a. 20.000 28.200 45.000 Total 22 131.250 222.250 231.250 Bio-based building blocks *Source: Bio-based Polymers Producer Database, 2013-07 31 Composites Product Group Application Area Market Volume "Bio" 2008 (in tons) Market Volume "Bio" 2020 (in tons) 40.000 100.000 50.000 120.000 100.000 150.000 120.000 5.000 360.000 100.000 315.000 830.000 Market Volume "Bio" 2030 (in tons) * BioCompression moulding Composites 1) - with natural fibres - with cotton fibre - with wood fibre Extrusion and injection moulding - Wood Plastic Composites - with natural fibres TOTAL Under the condtion that the LMI recomendation #11 will be implemented at this time nova Institut 2012 32 Plastics Product Group Bioplastics 1) Application Area Market Volume "Bio" 2008 (in tons) Market Volume "Bio" 2020 (in tons) 110.000 1.280.000 50.000 50.000 50.000 370.000 370.000 530.000 260.000 260.000 2.810.000 Waste & shopping bags 30.000 260.000 Tableware Bio mulch for agriculture 3.000 2.000 33.000 40.000 35.000 333.000 Short-life/ disposable applications - PLA, PHA, Starch Blends, Durable applications - Engineering Polymers - Modified PLA, Cellulosics, - Polyolefines (2012) * ) - Starch based alloys Market Volume "Bio" 2030 (in tons) * Cellulosics,... TOTAL Under the condtion that the LMI recomendations will be implemented at this time horizon” European Bioplasticsand Biodegradable bio-based plastics 1) TOTAL Under the condtion that the LMI recomendations #5, 6, 7 and 8 will be implemented at this time BASF SA 33 Biobased Solvents 2013 bio-based solvents market • Total European solvents market is estimated with 5 million tonnes yearly. • Different sources (Dechema, Fraunhofer Institute, ESIG) estimate today’s bio-based solvents volume with 50 to 100 KT (1 to 2%) • JRC Report 2013 (EUR 25743 EN) gives a market of 630 KT biobased solvents. • Difference is identified to be related to the ethanol supply chain. An European market of 630 KT bio-based solvents can be confirmed considering bio-ethanol used directly as a solvent or as a feedstock for other solvents. 34 Biobased Solvents Solvents and the Ethanol case (source NNFCC and industry): • Ethanol global production 2008: 61 million tonnes (> 90% bio-based) • Most applications in fuels and food & beverages • Ca. 6 million tonnes for the industry • Part of ethanol is used directly as a solvent, part blended with other solvents (e.g. ETOH/ETAC blend for inks), part used for downstream products (solvents like ETAC or non-solvents like ethylene, acetic acid…) • Applications may switch back and forward considering market conditions • The solvents application of ETOH, being bio-based or not, is very low compared with biofuel but as well industrial applications considering for example the chain ethanol ethylene polyethylene • Bio-ethanol from biomass is a mature market being highly impacted by policies and incentives. 35 Biobased Solvents Prediction (what can we reasonably say today) • Main solvents application are ethanol and downstream products or blends • Development of ethanol will remain highly affected by regional and local policies • Other bio-based solvents (alcohols, acetates) are mainly oxygenated solvents and have very low volumes representing no more than 1% of the market • Their development will depend on competitive production conditions • Today, it is not possible for the solvents industry to give serious fact based prediction of bio-based solvents market. 36 Biobased Solvents Some additional considerations in the bio-based solvents context • Feedstock availability at competitive conditions • Competitive production process • Pull from downstream users • Long term predictability of legal and incentives conditions • Standardization will give the frame for companies and downstream users to develop their own bio-based strategies 37 Surfactants Western Europe (EU-27+Switzerland and Norway) (Source: CESIO surfactants statistic 2012 and IHS Specialty Chemical Update Programme (August 2013) ) Product Group Western European Surfactants Consumption Western European Surfactants Western European Surfactants Consumption Consumption Volume (t) *) "Bio-based" (t) **) Volume (t) *) 2012 2012 2020 Expected growth rate approx. 1%/a 1.230.000 350.000 700.000 2.280.000 Surfactants - Home care - Personal Care - Ind. & Inst. TOTAL *) **) Note: Share 1.143.000 317.000 628.000 2.088.000 553.000 315.000 221.000 1.089.000 48% 99% 35% 52% Alcohol ethoxylates used as intermediates to produce other surfactants are not included in the figures. The term "bio-based" refers to the origin of the constituents of the surfactant molecule and means that some constituents are derived from bio-mass. A threshold for the bio-mass content is currently being developed in the ERASM Bio-surfactants TF. The replacement of fully petro-chemical based surfactants by bio-based is especially in detergent formulations difficult as other environmental criteria need to be fulfilled also like high bulk density, washing and good solubility at low temperature. For industrial uses tailor-made surfactants can be produced better from petrochemical sources as they allow a greater flexibility in carbon rchain length distribution as well as the degree of branching of the molecule. 38 Surfactants Western Europe versus North America (Source: CESIO surfactants statistic 2012 and IHS Specialty Chemical Update Programme (August 2013) ) Product Group Surfactants - Home care - Personal Care - Ind. & Inst. TOTAL *) **) Western European Surfactants Consumption Volume (t) *) 2012 1.143.000 317.000 628.000 2.088.000 Western European Surfactants Consumption "Bio-based" (t) **) 2012 Share 553.000 48% 315.000 99% 221.000 35% 1.089.000 52% North American Surfactants Consumption Volume (t) *) 2012 Share 479.000 39% 302.000 84% 192.000 22% 974.000 40% Alcohol ethoxylates used as intermediates to produce other surfactants are not included in the figures. The term "bio-based" refers to the origin of the constituents of the surfactant molecule and means TF. that some constituents are derived from bio-mass. A threshold for the bio-mass content is currently being developed in the ERASM Bio-surfactants 39