Presented by Presented by

Dr. Rong YANDr. Rong YAN

(Senior Scientist, (Senior Scientist, DirectorDirector of Advanced Clean Energy Centre)Advanced Clean Energy Centre)

Institute of Environmental Science and Engineering, Institute of Environmental Science and Engineering, NanyangNanyangTechnological University, SingaporeTechnological University, Singapore

(email: (email: ryan@ntu.edu.sgryan@ntu.edu.sg))

Current Status of Current Status of BiodieselBiodieselTechnology Development in Technology Development in

SingaporeSingapore

The APEC Workshop on “Establishment of the Guidelin es for the Development of Biodiesel Standards in the APEC Region”, 16-18 July 2008, Chinese Taipei

Scope of PresentationScope of Presentation

• Introduction to Singapore’s energy situation, including policies and measures

• Recent activities and developments in clean energy, especially biodiesel

• Lessons learnt and recommendations for future practices

• Summary

Singapore: An IntroductionSingapore: An Introduction� Small island state: 25 x 15 miles; Area: 699 sq km

� Population: 4.49 million in 2006

(including 750K expatriates and migrant workers)

� Economy (GDP): US$124 billion (2006 estimate)

� Per-capita GDP: US$28,000� Regional economic hub –

more than 7000 MNCs located in Singapore; rated very highly in competitiveness and globalisation indices

� Major oil & gas hub –

exploration and production support services, refining (>1.3 billion bpd), petrochemical and chemical industries, storage, trading

Energy Situation in SingaporeEnergy Situation in Singapore• Energy needs met almost entirely (> 99%) by imported oil

and gas• Oil and gas are also feedstocks for important refining,

petrochemical and chemical industries• Deregulated electricity market - Power Generation

capacity: 10 GW; Peak Demand: 5.6 GW; Annual Electricity consumption: 35000 GWh; very reliable power system

• Natural gas (imported via pipelines from Malaysia and Indonesia) fuels >70% of power generation output and many industries in western part of Singapore (Jurong); will build LNG terminal soon (US$500 m investment); town gas system being converted to natural gas system

Vietnam4.4%

Oman1.0%

UAE10.5%

Qatar13.5%

Saudi Arabia32.8%

Iran2.9%

Iraq3.2%

Kuwait18.0%

Others5.4%

Australia4.5%

Malaysia3.7%

Energy Security in Singapore: Diversify Energy Energy Security in Singapore: Diversify Energy Supplies from Narrow Supply BaseSupplies from Narrow Supply Base

Crude oil imports (2006)

Source: IE Singapore

Singapore Electricity Fuel Mix (2006)

Source: EMA

Import of LNG by 2012

Natural Gas

77.8%SynGas

0.9%

Orimulsion

6.9%

Fuel Oil11.9%

Diesel0.1%

Refuse2.4%

STRONG AND SUSTAINED ECONOMIC GROWTHSTRONG AND SUSTAINED ECONOMIC GROWTH

Manage Trade

Manage Trade-- Offs

Offs

Exploit C

onve

rgence

Exploit C

onve

rgence

ECONOMICSECONOMICS

ENVIRONMENTENVIRONMENTSECURITYSECURITY

1. Promote Competitive

Markets

2. Diversify Energy Supplies

3. Improve Energy Efficiency

4. Build Energy Industry and Invest in Energy R&D

5. Step Up International Cooperation

6. Develop Whole-of-Government Approach

Framework for Energy Policy

Policies & Measures Related to New Policies & Measures Related to New Energy Technologies (1)Energy Technologies (1)

• Acceded to the Kyoto Protocol in 2006 and actively looking at “climate change strategy” - improving energy efficiency, setting up carbon trading market, offering CDM projects etc. under the National Climate Change Committee (NCCC) and Climate Change Working Group (CCWG).

• Enhancement of policies and measures to promote energy efficiency and conservation (e.g. codes of practice for commercial building energy efficiency –minimum OTTV, energy labelling of air conditioners and cars, green mark for buildings etc.).

• Government has also recently set up an inter-agency Energy Policy Group to formulate and coordinate energy policies and strategies in a more holistic way.

Policies & Measures Related to Policies & Measures Related to New Energy Technologies (2)New Energy Technologies (2)

• Starting to look into possibilities for promotion/ providing incentives for clean/ renewable energy although main guiding principle is to– allow “market forces” work in a competitive energy market– Only intervene to address market failures or for strategic reasons

• Recent recognition that alternative and new energy technologies may be basis for an important industry cluster for export-oriented economy in future for e.g. in– Biofuels– Hydrogen & fuel cells– Solar PV– Wind and marine renewables– “Intelligent” and micro-grids and energy management systems– Integrated energy systems, including advanced cooling

technoloiges

• Big boost in support of energy R&D in Singapore in 2007, especially for solar PV

Build Energy Industry and Invest in Energy R&D

MARKETS

Transport

Power

Industry

Building

Deliver

Energy Solutions

FossilEnergy

Non FossilEnergy

Oil

Gas

CoalSolarFuel CellsBiomass

Wind Others

Strong technology foundation

SECURITY

CLIMATECHANGE

URBAN-ISATION

ECON GROWTH

Integrate

GridManagement

Test &Integration

Trade(fuels, carbon)

EnergyServices

DRIVERS

• Develop S’pore as a hub for sustainable energy solutions in an urban environment

• A living lab and reference site for energy solutions

Recent activities and developments in Recent activities and developments in clean energy, particularly clean energy, particularly biodieselbiodiesel

– Small plants already in operation (e.g. Biofuel Research Pte Ltd, 1500 tonnes/month, waste cooking oil as feedstock). The company sells only B100 biodiesel to local trucks, no blends.

– Continental Bioenergy (150,000T per year) started running 2006, multi-feedstock (palm/soy/ jatropha).

– Nexsol , joint venture between Germany’s Peter Cremer and Kulim Group from Malaysia, built 100,000 tonne/year biodiesel plant on Jurong Island, using palm oil feedstock. The company plans two additional plants within five years.

– Australia’s Natural Fuel building a S$199.95 million (US$130 million) state-of-the-art biodiesel production facility, with annual production capacity of 600,000 metric tons (700 million litres) of biodiesel in first phase slated for end 2007. (Announced in Oct 07 that it will be looking to use jatropha oil instead of palm oil as feedstock).

- Neste Oil also announced their plans to build a biorefinery that will produce NExBTLrenewable fuel. With a capacity of 800,000 metric tonnes per annum, the plant will be the largest renewable fuel refinery in the world.

Development of Development of BiodieselBiodiesel Production in SingaporeProduction in Singapore

- Due to strategic location, well-developed port and terminallingfacilities, and proximity to abundant feedstock from Indonesia and Malaysia, Singapore is developing a biofuel hub.

- Singapore has negligible local market. The produced biodiesel will be mostly for export.

- Singapore is poised to become Asia’s major biodiesel production center, with a total combined capacity of close to 2 million tonnes/per year.

- Total investment in this sector close to S$2 billion.

Singapore – Building A Biodiesel Production Hub in Asia

Oil & Petrochem byproducts

Energy (Utilities)/ Chemicals

Chem Logistics

•Natural Gas

•Hydrogen

•Steam

•Jetty access

•Storage

Finished products

•Fuel (biodiesel)

•Industrial Gases (CO2)

•Lubes

•Bionaphtha

Biofuel Manufacturing

1G Biomass 1G Biomass –– Leverage existing Leverage existing petrochemical capabilitiespetrochemical capabilities

Integration with existing industry

R&D

Singapore Singapore JurongJurong Island: Island: WellWell--Integrated Petrochemicals Base (1)Integrated Petrochemicals Base (1)

Singapore Island

Jurong Island

Singapore Singapore JurongJurong Island: Island: WellWell--Integrated Petrochemicals Base (2)Integrated Petrochemicals Base (2)

Nylon 6,6(DuPont)

N-Butanol, 2 EH (Eastman)

LPG/Naphtha/ Gasoil

Naphtha/ Reformate

OILREFINERIES

OILREFINERIES

CRACKERCRACKER

PCS I, PCS II, ExxonMobil

ExxonMobil

Cyclohexane(Mobil)

Adipic Acid (Invista)

IPA (Shell)PP (TPC, ExxonMobil)Propylene

Benzene

Toluene

I -Butyraldehyde

SAP (Sumitomo)Acrylic Acid Acrylates (Sumitomo)

Para-Xylene

Ortho-XyleneXylene Meta-Xylene PIA (Lonza)

Ethylene

Benzene

BPA (Mitsui)

SM/PO PS(Atofina, Denka)(Seraya, Ellba)

Acetylene Black (Denka)Acetylene

Esters (Celanese)Acetic Acid(Celanese) PVOH

(Poval Asia)VAM (Celanese)

ButadieneButenes

IsobutyleneMTBE(Tetra)

MBS (Kureha)

C4sm-MMA(Sumitomo)

INA(ExxonMobil)

EO, EG (EGS)LDPE (TPC)

HDPE (CPSC)LLDPE (TPC, ExxonMobil)

Phenol (Mitsui)

EVA (TPC)

NPG, Ester Alcohol (Eastman)

N -Butyraldehyde

PG, Polyols(Seraya)

EPS (Sekisui)

NATURAL GASNATURAL GAS

SembCorp Gas

Synthesis Gas

AROMATICSCOMPLEX

AROMATICSCOMPLEX

IMPORTS

Polyols & PU Systems (COIM)VisbreakerBottoms

EPR, EBR (Mitsui Elastomers)

Next Cracker

PTBP (DIC)

Source: ICES

• Singapore will endeavour to integrate biofuels into its oil industry. A number of new biodiesel plants on Jurong Island are close to commencing operations.

• Singapore’s biodiesel production output is expected to exceed one million tons per annum by 2010, and reach three million tons per annum by 2015.

• Next phase - biofuel trading: Platts’ upcoming plans to commence price assessment for biodiesel loaded out of Singapore.

• Singapore's well-established, stable, transparent and reputable trading market, coupled with the robust price assessment processes of companies such as Platt’s, would provide investors with a reliable benchmark for the price of biodiesel.

Mr. S. Iswaran, the Minister of State for Trade & Industry, in a speech given at the 23rd Asia-Pacific Petroleum Conference in Singapore (11th September 2007)

Trend of Trend of BiofuelBiofuel Development in SingaporeDevelopment in Singapore

Roadmap of Roadmap of BiofuelBiofuelDevelopment in SingaporeDevelopment in Singapore

VA

/ C

apab

ilitie

s

Past 3 years

Sustainability & Differentiation

- 2G biofuels

- Petrochem

1G Mfg

TechnologyTrading

2007 Industry Development

timeline

Next 5-10 years2010

Basic Strategies in Biomass/Bio-fuel R&D

• Leverage on existing strengths in RI’s and experiences in working with refining, petrochemicals, chemicals and pharmaceutical companies

• Whenever possible, adopt holistic, “bio-refinery” approach and environmentally benign processes to process and convert biomass feedstocks to produce fuels, drugs, chemicals and materials

• Also considering looking at bio-based carbon capture and sequestration

Fuel/Fuel/BiodieselBiodiesel Standards in SingaporeStandards in Singapore

• Singapore does not have any National Standards for biodiesel. There is currently negligible biodiesel market in Singapore. Only three commenced biodiesel producers - Continental Bioenergy, Peter Cremer and Natural Fuel, and their products are for export. International standards are followed by biodiesel producers: European EN14214 and/or ASTM 6751 specifications, depending on the buyer.

• The National Environment Agency (NEA) of Singapore is in charge of promoting clean air and setting vehicular emissions standards. NEA allows the use of bio-diesel for vehicles so long as the vehicle operators can demonstrate via certification by reputable independent testing bodies that vehicles using such fuel will be able to meet the prevailing vehicle emission standards.

• There is no government mandate to regulate the use of biofuel in Singapore and therefore the adoption of bio-diesel is highly dependent on free market forces.

Emission standards currently adopted in Singapore for new and in-use motor vehicles

1 Jul 200397/24/ECMotorcycles/scooters

1 Oct 2006EURO IVDiesel vehicles

1 Jan 2001EURO IIPetrol vehicles

Implementation Date

Emission Standard

New Vehicle Type

With effect from 1 Aug 2000, all off-road diesel engines would be required to comply with either Japan, US or EU off-road diesel exhaust emission standards. All in-use vehicles are subject to mandatory inspections periodically to ensure that they comply with the prescribed standards as follows:(a) Petrol-driven vehicles:Carbon Monoxide (CO)- 6% by vol (registered before Oct 1986)- 4.5% by vol (registered between Oct 1986 and Jul 1992)- 3.5% by vol (registered on or after Jul 1992)(b) Diesel-driven vehicles: Smoke Opacity Limit: 50 HSU(c) Motorcycles/scooters:CO - 6% by vol (registered before Oct 1986)

- 4.5% by vol (registered on or after Oct 1986)

Biodiesel Trial in Singapore with diesel cars:

- Bosch-led project, involving major European car manufacturers VW and Daimler, in collaboration with EDB, NEA, Kuok Oils, Shell, Nexsol, Diesel Tech.

- To start soon (Nov 2007) with B5 biodiesel blends made at a designated pump (not to sale for the public).

- The trial involves a total of 13 new diesel cars which include models such as Volkswagen Touareg SUV, Touran MPV, and Passat sedans; and Mercedes-Benz S-Class and an ML320 CDI SUV.

- These test cars comply with the prevailing stringent Euro 4 emission standard in Singapore.

- The project is to evaluate and demonstrate the use of B5 biodieselfuel blend in modern diesel cars in tropical climatic conditions.

BiodieselBiodiesel Car Trial Using B5 Blend in SingaporeCar Trial Using B5 Blend in Singapore

Lessons learnt and recommendations

However…Nov 14, 2007 The Straits Times

S'pore biofuels industry may hit snag as palm oil prices rise

By Jessica Cheam

SINGAPORE'S fledgling biofuels industry - singled out as a strong area of growth by the Government - is set to hit a temporary snag, as palm oil prices hit record highs.

Prices of crude palm oil, used in the production of biodiesel, recently hit record highs of RM2,900 (S$1,257) per tonne on the back of a surge in crude oil prices, which have reached almost US$100 a barrel.

With prices unlikely to soften in the short term, Singapore's new biodieselplants may have to scale back production.

One affected firm is Australia's Natural Fuel, which is slated to begin production during the first phase of its US$130 million project on JurongIsland - one of the world's largest.

Natural Fuel Singapore's chief executive, Mr Larry Tan, told The Straits Times that the company's first biodiesel train of 200,000 tonnes a year will go ahead, but future production will depend on palm oil prices.

Palm Oil Price Versus Crude Oil in Years 2006 - 2008

Palm oil based biodieselproduction is not sustainable !

Jatropha oil — as the main source of alternate feedstock in biodiesel production

Growth Studies of Jatropha Curcas L.

Jatropha – The next generation biodiesel crop:

- Jatropha does NOT compete with food resources

- Can be cultivated in semi-arid land and does NOT compete with arable land

- Resistant to drought, grows quickly and is hardy

- Produce fruits within one year

- Has no inspect pests and is not browsed by cattle or sheep

- Oil yield per hectare is among the highest of tree borne oil seeds

- The meal after extraction is an excellent fertilizer and soil conditioner

JatrophaJatropha –– The Answer of The Answer of BiodieselBiodiesel SustainabilitySustainability

Algae Algae –– The 3The 3rdrd Generation Generation BiodieselBiodiesel FeedstockFeedstock

BiofuelBiofuel Sustainability Sustainability -- 11

Issues of biofuel sustainability are from ecological , economic, technological, political, social aspects

BiofuelBiofuel Sustainability Sustainability -- 22

Critical Role of Sustainable Biofuel Technology

� We DO need fuel security, lower greenhouse gas, carbon sequestration, and so on…

� Emerging biofuel technologies can help. But, it depends on how and where it’s done.

� Sustainability issue is critical –

- replace an unsustainable system with another unsustainable one?

- true sustainability is not easy to achieve?

- feedstock, yield and process

- track and trace certification

� Energy balance and carbon balance analysis is a least.

� Feedstock and conversion technology tightly linked; sustainable 2nd

gen. and 3rd gen. biofuel technologies are highly encouraged.

New Feedstock and Process New Challenges in Biodiesel Quality Control

Biodiesel analysis and standardization:

(1) Jatropha oil – high FFA, toxins transformation, organic phosphorus (phosphatides), and other impurities …

(2) Algae oil – oil extraction from single cell

(3) Enzymatic process – difference in oil components

(4) FAME varies from different feedstock and process

(5) Engine performance and emission concern?

A sponsored research program was launched in IESE in June 2008 to explore new analytical methods for feedstock evaluation and biofuel quality control.

IESE and Dionex Signing Ceremony

Current Bio-fuel R&D Focuses in Singapore

Focused in 2nd or 3rd generation biofuel production and eventually biorefinerytechnology/process:

• Lignocellulosic biomass processing/pretreatment for bioethanol

• Developing enzymatic catalyst for biodiesel production

• Biomass wastes pyrolysis to generate biocrude followed by quality upgrading

• Biomass wastes gasification and GTL for biofuel production

• Enhanced lipid production in marine algae for biodiesel production

• Quality evaluation of biodiesel from different feedstock and processes

• Jatropha plantation with niche tissue culture for high oil seeds

• Glycerol upgrading and new product development from biodiesel production process

• and so on…

1. In the current context of high and volatile oil prices, instabilities in supply and growing environmental concern, Singapore’s focus is on:• diversification of energy supply• conservation and efficiency in energy use• promotion of renewable energy• environmental impact of energy use.

2. Singapore is developing itself a regional hub for biodiesel production. There are increased levels of support of R&D on renewable energyincluding biofuel, in terms of resources and funding from the Singapore government.

3. Biofuel sustainability is a critical issue; 2nd and 3rd generation of biofuelfeedstock and technology development is essential.

4. New feedstock and production process bring new challenges in biodiesel quality control.

Concluding Remarks

Thank You !Thank You !