Project Clean Investment Opportunity

Global Biodiesel Focus 2015

Waste oils as resource of biodiesel

Roberto Vazquez

CEO, ASB Biodiesel

2nd generation

biodiesel

ASB Case Model in

Hong Kong

2

Case Model: ASB Biodiesel (Hong Kong) Ltd

3

Lead

investor Al Salam Bank Bahrain

Locations: Hong Kong, Malaysia, Singapore

Production

capacity: 100,000 tons / year

Technology:

Integrated GTW, WWTP and biodiesel

plant: pretreatment, high FFA

esterification, distillation, biogas

Feedstock: Waste cooking oil, gutter oil (grease trap

oil), waste animal fat, other waste oils.

Fuel Quality: EN14214/ASTM 6751/China B100

standard

Biodiesel plant

4 4

2nd generation

biodiesel

Feedstock

5

Used Cooking Oil

6

• 5kg/person/year

Potential

• Illegal food recycling

• Animal feed applications

• Low entry barrier for collectors. Existing network

• Reasonably low technology requirements

Challenges

• Limited growth opportunities mature market

Outlook

Grease Trap Waste

7

Source: http://plasticgreasetrap.com/, EPD:

Monitoring of Solid Waste in Hong Kong, 2011.

0

50

100

150

200

250

300

350

400

450

500

To

ns

pe

r d

ay

Grease Trap Waste Hong Kong

• 2kg/person/year

Potential

• Hazardous, Basel Convention

• High acidity, high polymerization, high sulphur content.

• Low yield for illegal operation.

• Vehicle, government control: higher entry barrier for service providers

• High technology, waste water treatment and government control: high entry barrier for biodiesel producers

Challenges

• High potential limited by deployment of grease traps and local treatment

Outlook

Animal fats

8

• Non food-feed quality: 1kg/person/year

Potential

• Categorization

• Distributed generation of bone and meat residue

• Sulphur, polyethylene, protein

Challenges

• Limited potential at competitive price, except in very low quality streams

Outlook

Category 1

Energy production

Incineration-Landfill

Category 2

Organic fertilizer

Biogas

Energy production

Incineration-Landfill

Category 3

Animal feed

Pet food

Organic fertilizer

Biogas

Energy production

Incineration-Landfill

Animal fats: case study Spain (47M Hab)

9

82%

18%

Category 1/2

Carcass

Specified risk material

68%

32%

Products

Protein

Animal fat

Raw Material (1/2) Ton

Carcass 385,000

SRM 83,800

Total 468,000

Products Ton

Protein 107,000

Animal fat (cat 1/2) 52,500 (11%)

Total 158,500

Animal fat category 3: 385,000 tpy

Animal fat category ½: 52,500 tpy (12%)

Sludges

10

• Mill effluent: 50-100 tons/month of recoverable oil

Potential

• Existing collector network, some with shore tank (bulk delivery), but generally distributed

• High PFAD price has driven other high FFA material cost up

• High technology requirements: FFA, sulphur and oxidized/polymerized

Challenges

• High potential, if supply chain is rationalized

Outlook

Sources in Hong Kong

11

0%

20%

40%

60%

80%

100%

Bakery waste

Canteen food waste

(A)

Canteen food waste

(B)

Protein Lipid Carbohydrate

Source: Lipids from food waste as feedstock for biodiesel production: Case Hong Kong

Sanjib Kumar Karmee and Carol Sze Ki Lin, lipid technology September 2014, Vol. 26, No. 9

• 3,600 TPD food waste in Hong Kong

Potential

• Technology development

• Efficient segregated sourcing

• Variable lipid conent

• Valorization of protein and carbohydrate

Challenges

• High potential, with sufficient scale

Outlook

2nd generation

biodiesel

Supply Chain

12

Supply chain

13 13 MT

Hig

h A

cid

ity

Meat and bone residue

Rendering plant Container

Pond (PO mill) Truck collection

Shore tank (bulk)

Container Grease trap (restaurant)

Collector

Grease trap (restaurant)

Collector Local process

(GTO) Container

Low

acid

ity UCO

Restaurant Collector

UCO Restaurant

Collector Depot Container

Meat and bone residue

Rendering plant Container

Bio

die

sel pla

nt

2nd generation

biodiesel

Process Design

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Production Process Overview (1) – Input and Outputs

Waste

Animal Fat

Other

Waste Oils

UCO

Methanol KOH Acids

GTW

Bioheating

OIl Fertilizer. Glycerine Biodiesel

15

Grease Trap

Waste

Treatment

UCO/Fat

Treatment

Unit

Biodiesel refinery

Production Process Overview (2) – Input and Outputs

Methanol

KOH

Acids

Bioheating

OIl Fertilizer. Glycerine Biodiesel

16

Water and Solids

Pre-treatment

Non catalytic

Esterification

Acid Based

Esterification

Trans-

esterification Biodiesel

Purification

Biodiesel

Distillation

Glycerine

Purification

Production Process Overview (3) - Re-use of By-products for energy

Bioheating

OIl

Waste Oil

Energy for biodiesel manufacturing process

Biodiesel

Biogas

Grease Trap

Waste

Treatment

Biodiesel refinery

UCO/Fat

Treatment

Unit

Waste Water

Treatment Plant

Waste Water

Oil

Environmental and

social impacts of

2nd generation

biodiesel

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Food safety

At best, poured down the drains or dumped in the trash for already-packed landfills.

At worst reprocessed, and are channeled back into the food supply.

.

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- December 2012:, a dozen Hong Kong

restaurants were found to be using cooking oil

made from “gutter oil” containing carcinogen

benzo(a)pyrene.

- September 2014: Another gutter oil scandal: non

edible lard from Hong Kong into bakery that was

subsequently distributed in Taiwan and Hong

Kong.

Reprocessed cooking oil can increase changes

of heart disease and diabetes, has implications

for Alzheimer Disease and can have adverse

impacts on children development.

0

10

20

30

40

50

60

70

80

90

Rapeseed Soybean

Oil Palm Oil

Waste Oil Diesel

(gC

O2

eq

/MJ

)

Typical disaggregated values (grams CO2eq/MJ)

Cultivation Processing Transport and distribution Reference

Biodiesel from waste has low GHG compared to biodiesel from

crop oils due to reduced emissions from cultivation, processing

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Source: EU Renewable Energy Directive Annex V

Sustainability management system

ASB has a sophisticated sustainability management system:

Keeps trace of the kind of waste and the country of origin

Allows actual calculations of carbon footprint based on real feedstock/transport/conversion

inputs

Strict mass balance

Externally audited

Recognized in Europe (Renewable Energy Directive) by all oil companies

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Biodiesel from Waste - Towards a Circular Economy

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Waste

Recovered

Converted to high

value product

Re-used as Biodiesel Reduced emissions (roadside and GHG)

2nd generation

biodiesel

Economic

Development

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Biodiesel and economic development

Since the 2010-2011 policy address of former Chief Executive Donald Tsang Yam-kuen, New

Energy Technology has been a target for development.

Key infrastructure in HK:

- Sludge Incinerator

- Organic waste treatment facilities

- MSW waste to energy

The biodiesel plants in Hong Kong:

- Are integrated in the community, with important value remaining in HKSAR through

payments to restaurants and collectors

- Technology platform for future environmental developments

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Biodiesel and Energy Security

Hong Kong is particularly subject to fluctuations in the international energy prices: ranks

99th out of 129 jurisdictions measured by the World Energy Council:

ASB Biodiesel alone can supply every diesel vehicle on Hong Kong’s roads with enough

biodiesel to replace 10 percent of the fossil diesel used in every diesel vehicle on the

roads. 25

Imported energy 99.9697%

Indigenous energy biogas

0.0159%

Indigenous energy biodiesel 0.0138%

Indigenous energy wind

0.0003%

Indigenous energy solar

0.0003%

其他

0.0303%

Primary Energy in Hong Kong

Waste based

biodiesel

Conclusions

26

Profitability

27 27 Lot Size MT

FW GTO

PSO

NE AG

AO/PFAD

AF

UCO

PO

Tech

no

log

y

1E-3 1E-2 1E-1 1E0 1E1 1E2 1E3 1E4 1E5