The Global Palm Oil Industry Landscape
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DECEMBER 2019 Application Solutions Guide THE GLOBAL PALM OIL INDUSTRY LANDSCAPE Palm oil producing belt across the equator or 10 degrees north & south Experience In Motion 1 Application Solutions Guide — The Global Palm Oil Industry Landscape TABLE OF CONTENTS THE GLOBAL PALM OIL INDUSTRY Flowserve Products and Capabilities LANDSCAPE . 3 in Palm Oil Refining . 18 A Closer Look at Palm Oil Processing and Overview . 18 Technologies . 5 Flowserve Products and Capabilities Palm Oil Fundamental Processes . 5 in Palm Oil Fractionation . 28 Palm Oil Mill (Oil Extraction) . 6 Overview . 28 Refining Process — Physical Steam Steam and Power Systems . 29 and Alkali Chemical . 11 Products . 30 Fractionation . 12 Aftermarket Opportunities . 31 Physical Properties of CPO . 12 Value Proposition . 32 PALM OIL INDUSTRY PROJECT MODEL . 13 APPENDIX . 33 Route to Market (RTM) . 13 Installations References . 33 Business Model — Fixed EPC Projects . 13 Detailed Schematics of Palm Oil Processes . 34 THE PALM OIL INDUSTRY — Pump Sourcing Guide . 37 FLOWSERVE INTERFACE . 14 Industry Sub-segment Information . 37 Business Impact and Focus Areas . 14 Glossary . 38 The Big Picture . 14 The Flowserve Fit in Palm Oil Industry . 14 Products for the Palm Oil Industry — at a Glance . 15 Pumps . 15 Valves . 15 Seals . 16 FLOWSERVE OPPORTUNITIES IN THE PALM OIL INDUSTRY . 17 Flowserve Products and Capabilities in Palm Oil Mill . 17 Overview . 17 Products . 18 2 Application Solutions Guide — The Global Palm Oil Industry Landscape THE GLOBAL PALM OIL INDUSTRY LANDSCAPE THE GLOBAL PALM OIL INDUSTRY LANDSCAPE Palm oil, one of the world’s most widely produced Commentvolatility, 1 – Fuzzy impacts Text: Page 3 on the environment, and loss of Please use this. and consumed oils, is a tropical oil, growing only critical habitat for endangered species due to land Global Palm Oil Production 2015 - MMT [VALUE]m 0.8% [VALUE]m 0.8% [VALUE]m within 10 degrees north or south of the equator. clearance[VALUE]m activities [VALUE]m for palm oil plantation.5.8% 1.5% 0.8% [VALUE]m 2% These growing regions house vast areas of tropical Indonesia [VALUE]m 3% PalmMalaysia oil is obtained from the reddish pulp of the fruit rainforest rich in biodiversity on the continents of Asia Thailand of a palm oil seed from the oil palm tree. Through Colombia (such as Indonesia and Malaysia, global palm oil Nigeria a series of processes, it can produce[VALUE]m two different Ecuador [VALUE]m 53.3% production countries), Africa and South America due 32% typesGuatemala of oil, i.e., palm oil and palm kernel oil, to their warm temperatures, abundant sunshine, and Papua/New Guinea whichOther are used in products to treat several medical plenty of rain suitable for maximizing plantation yield Data:Oil World June 2016 Database Indonesia & Malaysia = 84% market share conditions such as: vitamin A deficiency; cancer; and production. *****************************************************************************************************************************brain disease; as well as malaria; high blood ******* Comment 2 – Fuzzy Text: Page 3 Pleasepressure; use this. and high cholesterol. Endocarp Kernel Mesocarp • Palm oil, referring to the oil extracted from the fruits of the palm oil tree, is an edible plant oil that is naturally reddish, as it contains high amounts of This cheap, production-efficient and highly stable beta-carotene (antioxidant). oil is used in a wide variety of food, cosmetic and hygiene products. It can also be used as a source • The palm oil tree has an average productive for bio-fuel (or biodiesel), one of the key factors lifespan of about 25 to 30 years. It can reach driving the growth of the palm oil market in the world. a height of up to 30 feet (9 m) and produces Some noteworthy trends such as expanding global fruit bunches from three years of age after field population, growing economy and developments planting. within this industry are increasing demand for • In each productive year, a palm oil tree may sustainable palm and red palm oil. However, the produce between 8 to 12 bunches of fruit. market growth and development are limited by • Each bunch weighs between 10–25 kg (22–55 lb) changing global weather conditions, market price and contains between 1000 and 3000 fruitlets. 3 Application Solutions Guide — The Global Palm Oil Industry Landscape THE GLOBAL PALM OIL INDUSTRY LANDSCAPE • Loose fruits are ripe fruitlets which have fallen from industry standard or rule of yielding 3.74 tons a ripe bunch. They are often used as an indication (8250 lb) of palm oil per hectare, 0.4 tons (880 lb) of to measure bunch ripeness. palm kernel oil and 0.4 tons (880 lb) of palm kernel expeller/cake are also produced from the fresh fruit • These fruits are the ripest in the bunch, and bunches (FFB). therefore contain the highest amount of oil. Palm kernel oil, conversely, is a raw material used in • The palm oil fruit is almost spherical in shape. It the production of non-food products such as soaps, consists of a hard seed (kernel) enclosed in a toiletries and candles. Palm kernel expeller is used shell (endocarp) which is surrounded by fleshy extensively in the energy and animal feed sector. husk (mesocarp). Palm kernel oil is a widely used ingredient in the • Palm oil is extracted from the mesocarp. personal care market. • Palm kernel oil is derived from the kernel after Although a variety of oils remain available apart from being separated from the mesocarp. palm oil, the many advantages palm oil possesses allows it to remain the most consumed oil globally. Comment 3 - ShouldHarvested theyear-round, source palm be oil treesincluded produce here on - and in such large text? What about in an endnote/footnote?: The above introductory section of this application Page 4 average 10 tons (22 050 lb) of fruit per hectare — far more than soya, rapeseed and sunflower crops. This selling guide provides a brief summary of global palm Please remove.is anThis effective source use of information the land, as palm can oil requires be deleted oil production,as it was consumption also stated and its in regional the Reference markets section on page 44. 10 times less land than the other three major oil- for a basic understanding of the palm oil industry. Additionally pleaseproducing use crops. this In sharperaddition to aimage. generally accepted 4 Application Solutions Guide — The Global Palm Oil Industry Landscape ************************************************************************************************************************************ Comment 4 – Fuzzy text: Page 5 Please use this. ************************************************************************************************************************************* Comment 5 – Unnecessary word. Sentence should be "Some control...": Page 6 Please use this. 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THE GLOBAL PALM OIL INDUSTRY LANDSCAPE A***************************************************************************************************************************** Closer Look at Palm Oil Processing and Technologies ******* Comment 4 – Fuzzy text: Page 5 PalmPlease Oiluse this.Fundamental Processes Preparation***************************************************************************************************************************** — Cleaning, cracking and cooking to Modification— Provide the oil with ********the desired get raw oil seed or fruit functionality (hardness, crystallization and oxidative Comment 5 – Unnecessary word. Sentence should be "Some control...": Page 6 stability) SeedlingsPlease use arethis. raised in the nursery for about 12 months prior to transplanting in the field . After 24 to Interesterification (synonym of transesterification) Some control may be exercised over harvesting technique as well as post-harvest transport and handling. 30 months, the oil palm starts to yield fruit in compact — Mixing the methanol with a catalyst to form fatty bunches called fresh fruit bunches (FFB) . Harvesting acid methyl esters (FAME) involves***************************************************************************************************************************** manually cutting ripe bunches using a ******** Fat modification processes provide opportunities to chiselComment or sickle 6 – Remove . Collection arrow andof harvested replace with fruits a colon is eitheror relevant text: Page 8 done manually, sometimes with a wheelbarrow, or offer an array of products, reach out to new customer Please change accordingly. mechanically using a tractor-mounted grabber with groups and provide increased revenue for businesses . trailer . Strategic advantages to be gained from modifying these fats include moving from the basic processing Extraction — Separation of oil from fruit or seed of bulk oils and fats and focusing on a wider market by mechanical, chemical or mechanical/chemical spread and reach . This in turn allows the plant to processes better handle the impact of seasonal demand,