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OPPORTUNITIES AND RISKS FOR PALM OIL COMPANIES
Claire Curry
10 November 2014
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Europe, Middle East & Africa
Asia Pacific Americas
PRODUCT STRUCTURE
Solar Wind Other Renewables
Advanced Transport
Energy Smart Technologies Gas Carbon &
RECs Markets
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2,500 CLIENTS IN OVER 50 COUNTRIES
The logos listed do not represent a full client list. They are illustrative of the organizations we have worked with in the past.
Public Sector & NGOs
Finance & Investment
Supply Chain &Technology
Utilities & Energy
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DRILLING DOWN TO HIGHER VALUE PRODUCTS
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SA
LES
VO
LUM
E IN
CR
EA
SIN
G
PRICE DECREASING
Crude oil
Fuels
Base chemicals
Finished products & specialty chemicals
15-20% of petroleum is used in chemicals, yet up to 50% of the value of the barrel is as a chemical
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PALM OIL: CURRENT SITUATION
MALAYSIAN PALM EXPORTS, 2011
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Source: Bloomberg New Energy Finance, Malaysian Palm Oil Board
Export product $ per tonne (2013/14)
Palm oil $750
Palm kernel oil $960
Renewable diesel
$1,500
PKO fatty acids
Up to $4,000
Palm oil fatty acids
$1,250-1,800
Palm oil fatty alcohols
$1,500-2,000
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Source: Bloomberg New Energy Finance
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PALM OIL CHEMICALS: TRADITIONAL, EMERGING AND THEIR ALTERNATIVES
Palm oil
Base oleochemials
Surfactants Biodiesel Personal care
Renewable diesel Paints, coatings
TRADITIONAL
Polymers
Speciality chemicals Finished oleochemicals
EMERGING
Sugarcane Waste feedstock
Base oleochemials
Finished oleochemicals Speciality chemicals
Olefins Di-functional oleochemicals
Isoalkanes Propane
Surfactants Biodiesel Personal care
Renewable diesel Paints, coatings Polymers
Flavours and fragrances
Base oils
Lubricants
Fibres
Palm fatty acid distillate
Palm mil effluent
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TECHNOLOGY START-UP MODUS OPERANDI
Example: Amyris Small volume, high value products first; partnered with midstream and final consumer companies
Source: Bloomberg New Energy Finance, Amyris
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PARTNERSHIPS ARE FORMING
Wilmar & Elevance: A 50/50 owned plant in Indonesia producing oleochemicals, esters, acids, olefins, bolt-on to existing
Wilmar capcacity.
Neste Oil: Neste is switching away from palm oil use to palm waste and sugars. Also developing higher value products
than renewable diesel.
Versalis & Elevance: Technology partnership to develop pathway from veg oils and ethylene to key chemicals. Co-location/retrofit of petrochemical facility.
Sabic & Segetis: Sabic makes olefins, polymers and speciality chemicals.
Segetis’ tech could replace these with sugar-based biochemicals.
Palm oil plantation owners Petrochemical producers
Renewable fuel companies
Petrochemical producers
Sime Darby & Verdezyne: SD led a $48m investment round in Verdezyne, to
develop bio-fibers from palm wastes.
Palm oil plantation owners
REG & LS9: REG owns biodiesel and renewable diesel capacity. Bought LS9 to
develop sugars to oils platform -higher value products and diversify feedstock.
Renewable fuel companies
Mitsui & Solazyme: Mitsui has a stake in KLK Oleo, but despite this it has invested
$20m in Solazyme to produce oleochemicals from sugars.
Method & Amyris & Segetis: Method makes bio-detergents and has partnered
with Amyris and Segetis to use their chemicals in surfactants and solvents.
Petrochemical producers
Chemical off-takers
P&G, Amyris & LS9: P&G uses oloechemicals in its products and made a
few partnerships over the past years to explore sugar biochemicals.
Chemical off-takers
Source: Bloomberg New Energy Finance
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Source: Bloomberg New Energy Finance.
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THE ROLE OF CELLULOSIC SUGARS
Malaysia had 88m tonnes of palm biomass in 2013
About 30% of the biomass in Malaysia is “mobilisable”, for $20-80 per tonne
Indonesia produced 142m tonnes of palm biomass in 2013
This means Indonesia and Malaysia could have the potential to produce 41m tonnes of cellulosic
sugars
Including a cost of capital of 10%. Cost of biomass of $45 per dry tonne
$ pe
r lb
cellu
losi
c su
gar
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