Carbon Footprint & Carbon Market -...

June 5, 2013 BITEC, Bangkok, Thailand

Carbon Footprint & Carbon Market

: A View from the Palm Oil Sector

By

Sanin Triyanond

Director Patum Vegetable Oil co., ltd.

Renewable Energy Asia 2013

- New Opportunities in the ASEAN Community – Focus on Renewable Energy and Energy Efficiency

Today Agenda

1. Oil Palm and Palm Oil Supply Chain

2. Role of GHG to the Industry

3. Foreseen Future

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

1. Oil Palm and Palm Oil Supply Chain

2. Role of GHG to the Industry

3. Foreseen Future

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

Palm Oil and Oil Palm Supply Chain – Seed Oil Global Supply

Current Supply of Major Seed Oil – Year End 2012

Oil Production (MMT)

Palm 55.29

Soybean 42.92

Rapeseed 24.05

Sunflower seed 14.08

Palm Kernel 6.35

Cottonseed 5.28

Peanut 5.25

Coconut 3.75

Olive 2.67

Palm 35%

Soybean 27%

Rapeseed 15%

Sunflower seed 9%

Palm Kernel

4%

Cottonseed

3%

Peanut 3%

Coconut 2%

Olive 2%

Source : http://www.fas.usda.gov

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

Palm Oil and Oil Palm Supply Chain – Palm Oil Supply Growth

Palm Oil Supply – Global (Year 2008 – 2013)

0

10,000

20,000

30,000

40,000

50,000

60,000

2008 2009 2010 2011 2012 2013*

Quantity ('000 tons)

*Estimated data Source : http://www.fas.usda.gov

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

Palm Oil and Oil Palm Supply Chain – Thai Market

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2008 2009 2010 2011 2012 2013*

Quantity ('000 tons)

Indonesia Malaysia Thailand

Palm Oil Supply – Thailand : Malaysia : Indonesia (‘08 – ‘13)

*Estimated data Source : http://www.fas.usda.gov, http://agri.dit.go.th

‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22

Biodiesel Market

Biodiesel Production

Raw Material

R&D

Biodiesel

Demand (ML/D)

1.35 1.35 1.35 3.02 3.64 4.50

Research on Fishery Boat B5 Nationally

B10 Alternative

Mandate B2 Mandate B5

Alternative B5 Alternative B10

From palm oil and palm stearin Standardization of quality control system

Promote and develop production process/ community biodiesel

Expand plantation area 2.5 Mrai Increase yield from 2.8 to 3.2 MT/Rai/Y

Demonstration of value-added glycerine/ extraction of CPO for small mill

R&D BTL/ BHD/ Algae oil Demonstration / Promote the production of BTL/ BHD/ Algae

Demonstration of Jatropha plantation and usage

Renewable Energy Development Plan ‘08 – ‘22

PVO

Gearing Towards the Best

PATUM VEGETABLE OIL CO., LTD.

Source: http://www.dede.go.th

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

Palm Oil and Oil Palm Supply Chain – Government’s Policy

Latest from Renewable Energy Development Plan ‘08 – ‘22

Remark: Algae Picture from futureenergyinvesting.typepad.com / Eucalyptus Picture from siamshop.com

algae oil palm eucalyptus

jatropha

Targeted Feedstock for FAME and BHD Targeted Feedstock for BTL

2013 2014 2017 2022

FAME~2.8 ML/D FAME~3.4 ML/D FAME~4.2 ML/D

BHD~2.0 ML/D

FAME~4.6 ML/D

DS~25 ML/D

DS : Diesel Substitute

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

Palm Oil and Oil Palm Supply Chain – General

Oil Palm

PFAD

RPO

RPS

RPOL FFB PF

EFB

Shell

PK

CPO

Fiber

• Solid Fuel for power generator

• Fertilizer • Animal Feed

• Solid Fuel for power generator • Animal Feed

• Solid Fuel for power generator • Animal Feed

• Fatty Alcohol

• Detergent / Soap • Margarine / Shortening

• Chemical

• Vitamin A, E • Biodiesel

• Shortening / CBS

• Ice Cream • Biodiesel (common grade)

• Shortening

• Animal Feed • Biodiesel

• Edible Oil especially for deep frying

• Animal Feed • Fatty Acid • ETC

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

Palm Oil and Oil Palm Supply Chain – Biodiesel

Plantation

Biodiesel Producers

Extraction Mill

Input Products By-Products & Waste

Leaf Frond

Trunk

Fresh Fruit Bunch

Crude Palm Oil

Fatty Acid Methyl Ester

Palm Seed

Fertilizer

Pesticide Herbicide

Palm Kernel Shell

Decanter Cake

Waste Water Empty Fruit Bunch

Glycerine

Salt

Waste Water Spent Bleaching Earth

Fresh Fruit Bunch

Water

Crude Palm Oil

Alcohol

Catalyst

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

1. Oil Palm and Palm Oil Supply Chain

2. Role of GHG to the Industry

3. Foreseen Future

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

Plantation

Biodiesel Producers

Extraction Mill

Input Products By-Products & Waste

Frond

Trunk Leaf

Fresh Fruit Bunch

Crude Palm Oil

Fatty Acid Methyl Ester

Palm Seed

Fertilizer Pesticide Herbicide

Palm Kernel Shell

Decanter Cake

Waste Water Empty Fruit Bunch

Glycerine

Salt

Waste Water Spent Bleaching Earth

Fresh Fruit Bunch

Water

Crude Palm Oil

Chemical

Role of Carbon to the Industry – Hot Spots

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

Role of Carbon to the Industry – Practices

Plantation

Biodiesel Producers

Extraction Mill

Hot Spot

: Chemical

(MeOH)

: Fertilizer

(N-Fertilizer) : LUC

: Waste Water (POME)

Solution

: Productivity

: Planting Mat.

: Soil/Leaf analysis

: Biogas

: Bio-alcohol

: Efficiency

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

Role of Carbon to the Industry – Study Result (GIZ Project)

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

Role of Carbon to the Industry – Sustainability Standard & Policy

ISCC

International Sustainability & Carbon Certification

RSPO

Roundtable on Sustainable Palm Oil

RSB

Roundtable on Sustainable Biofuels European Renewable Energy Directive

EU-RED

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

Role of Carbon to the Industry – Sustainability Standard & Policy

Criterion 5.6 : Plans to reduce pollution and

emissions, including greenhouse gases, are developed, implemented and monitored

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

1. Oil Palm and Palm Oil Supply Chain

2. Role of GHG to the Industry

3. Foreseen Future

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

1. GHG reduction will play more important role in palm oil

supply chain

2. GHG criteria will be more intensive in Sustainability

Standards

3. One will keep trying to consolidate standards while the

other will still try to come up with the new one

4. Sustainability will eventually become prerequisite

Foreseen Future

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

My Experience:

2009 : “ Do you know RSPO? ”

2011 : “ Do you have RSPO certificate? ”

2013 : “ If you have it, I’m willing to give you premium. ”

Future (My Guess):

2015 : “ If you don’t have it, I need some discount. ”

2017 : “ If you don’t have it, I can’t buy from you. ”

Foreseen Future

PATUM VEGETABLE OIL CO., LTD. PVO

Gearing Towards the Best

Conclusion

1. Palm Oil market will continue growing

2. Palm Oil is currently the highest potential feedstock for

renewable energy

3. Low carbon production of palm based biofuel can be

achieved through proper management

4. Sustainability standard would have more involvement

5. GHG issues are always included

6. It will become prerequisite / common pratices

June 5, 2013 BITEC, Bangkok, Thailand

THANK YOU

Renewable Energy Asia 2013

- New Opportunities in the ASEAN Community – Focus on Renewable Energy and Energy Efficiency