Biobased Products Value Chain- Feedstocks, Products & Markets -

Rainer Busch, T+I Consulting

Dietrich Wittmeyer, ERRMA

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Update: 4.3.2015

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Bio-based products‘ value chains

OIL SEEDS & VEGETABLE OILS

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FeedstockInter-

mediatesRaw

Materials(Platform)Chemicals

Materials,Products

• Oil seeds• Animals

• Oils• Fats

• Surfactants• Fatty acids• Fatty alcohols• Glycerine

Markets

• Paints & Inks• Lubricants• Detergents

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Oilseeds: European Production & TradeEU-27

Source: Fediol

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Vegetable Oils: European Production & TradeEU-27 Source: Fediol

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Vegetable Oils: European Consumption per SectorEU-27

Source: Fediol

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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

ANIMAL FATS

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Animal Fats

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SALES of VEGETABLE AND ANIMAL OILS AND FATS

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SALES of VEGETABLE AND ANIMAL OILS AND FATS

SUGAR

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Sugar: European Sugar Crops Production & TradeEU-27

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Sugar: European Sugar Production and TradeEU-27

Source: CEFS, FAOSTAT, EU Commssion (DG Agri), EUROSTAT

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Sugar: European Sugar Consumption per SectorEU-27

STARCHES & SWEETENERS

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Starch: European Starch Plants Production & TradeEU-27

Source: DG Agri, provided by Starch Europe, EUROSTAT

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Starch: European Starch Production & TradeEU-27

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Starch: European Starch Consumption per SectorEU-27

CELLULOSE (PULP)

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Cellulose: European Lignocellulose Feedstock ConsumptionEU-27

Source: CEPI

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Cellulose: Production of CelluloseEU-27

Source: CEPI

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Cellulose: European Consumption of CelluloseEU-27

Source: CEPI

PRODUCTS & MARKETS

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Platform Chemicals

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Polymers

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Surfactants - not updated in 2015

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Surfactants - not updated in 2015

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Source: FUCHS AG

Lubricants – not updated in 2015

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Composites – not updated in 2015

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Solvents – not updated in 2015

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 bio-based 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.

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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.

Solvents – not updated in 2015

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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.

Solvents – not updated in 2015

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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

Solvents – not updated in 2015