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Global 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

Lead Al Salam Bank Bahrain investor

Locations: Hong Kong, Malaysia, Singapore

Production 100,000 tons / year capacity:

Integrated GTW, WWTP and biodiesel Technology: : pretreatment, high FFA esterification, distillation,

Waste , gutter oil (grease trap Feedstock: oil), waste animal , other waste oils.

EN14214/ASTM 6751/ B100 Fuel Quality: standard

3 Biodiesel plant

44 2nd generation biodiesel Feedstock

5 Used Cooking Oil

Potential

• 5kg/person/year

Challenges

• Illegal recycling • applications • Low entry barrier for collectors. Existing network • Reasonably low technology requirements

Outlook

• Limited growth opportunities mature market

6 Grease Trap Waste

Potential

• 2kg/person/year

Challenges

• Hazardous, Basel Convention • High acidity, high polymerization, high sulphur content. • Low yield for illegal operation. Grease Trap Waste Hong Kong • Vehicle, government control: higher entry barrier for service 500 providers 450 • High technology, waste water 400 treatment and government control: high entry barrier for biodiesel 350 producers 300 250

Outlook 200 Tons per day per Tons • High potential limited by 150 deployment of grease traps and 100 local treatment 50 0 Source: http://plasticgreasetrap.com/, EPD: Monitoring of Solid Waste in Hong Kong, 2011. 7 Animal

Potential

• Non food-feed quality: Category Category Category 1kg/person/year 1 2 3

Challenges

• Categorization Animal feed • Distributed generation of bone and meat residue • Sulphur, polyethylene, protein Pet food

Outlook Organic Organic fertilizer fertilizer • Limited potential at competitive , except in very low quality Biogas Biogas streams Energy Energy Energy production production production

Incineration- Incineration- Incineration- Landfill Landfill Landfill

8 Animal fats: case study Spain (47M Hab)

Animal fat category 3: 385,000 tpy

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

Category 1/2 Raw Material (1/2) Ton

Carcass 385,000 18% Carcass SRM 83,800 82% Specified risk Total 468,000 material

Products Products Ton 32% Protein 107,000 Protein Animal fat (cat 1/2) 52,500 (11%) 68% Animal fat Total 158,500

9 Sludges

Potential

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

Challenges

• 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

Outlook

• High potential, if supply chain is rationalized

10 Sources in Hong Kong

Potential

• 3,600 TPD food waste in Hong Kong

Challenges

• Technology development • Efficient segregated sourcing • Variable conent 100% • Valorization of protein and carbohydrate 80% 60% Outlook 40% • High potential, with sufficient scale 20% 0% Bakery Canteen Canteen waste food waste food waste (A) (B) Protein Lipid Carbohydrate

Source: from food waste as feedstock for : Case Hong Kong Sanjib Kumar Karmee and Carol Sze Ki Lin, lipid technology September 2014, Vol. 26, No. 9 11 2nd generation biodiesel Supply Chain

12 Supply chain

Meat and bone Rendering plant Container

residue

Shore tank (bulk) Pond (PO mill) Truck collection Container Grease trap Collector

(restaurant) High Acidity High Grease trap Local process Collector Container (restaurant) (GTO)

UCO Collector

Restaurant plant Biodiesel UCO Collector Depot Container Restaurant Meat and bone

Low acidity Low Rendering plant Container residue

MT 1313 2nd generation biodiesel Process Design

14 Production Process Overview (1) – Input and Outputs

Grease Trap Acids KOH Methanol GTW Waste Treatment

Waste Biodiesel refinery Animal Fat

UCO/Fat Treatment Unit Other Waste Oils

Bioheating UCO Biodiesel Glycerine Fertilizer. OIl

15 Production Process Overview (2) – Input and Outputs

Water and Solids Pre-treatment Bioheating Biodiesel Glycerine OIl Fertilizer.

Non catalytic Esterification Methanol

Acid Based Biodiesel Esterification Acids Distillation

Trans- Biodiesel Glycerine esterification KOH Purification Purification

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

Grease Trap Waste Treatment

Waste Oil Biodiesel refinery UCO/Fat Treatment Oil Unit

Waste Water

Waste Water Bioheating Biodiesel Treatment Plant OIl

Biogas

Energy for biodiesel manufacturing process Environmental and social impacts of 2nd generation biodiesel

18 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. .

- 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 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.

19 Biodiesel from waste has low GHG compared to biodiesel from oils due to reduced emissions from cultivation, processing

Typical disaggregated values (grams CO2eq/MJ)

90 80 70

60

50 40 30 20

(gCO2eq/MJ) 10 0 Oil Waste Oil Diesel

Cultivation Processing Transport and distribution Reference

Source: EU Directive Annex V

20 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

21 Biodiesel from Waste - Towards a Circular Economy

Recovered

Converted to high Waste value product

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

22 2nd generation biodiesel Economic Development

23 Biodiesel and economic development

Since the 2010-2011 policy address of former Chief Executive Donald Tsang -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 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

24 Biodiesel and Energy Security

Hong Kong is particularly subject to fluctuations in the international energy : ranks 99th out of 129 jurisdictions measured by the World Energy Council:

Indigenous energy Primary Energy in Hong Kong biogas 0.0159%

其他 Imported energy 0.0303% 99.9697% Indigenous energy biodiesel 0.0138% Indigenous energy wind 0.0003% Indigenous energy solar 0.0003%

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 Waste based biodiesel Conclusions

26 Profitability

FW GTO

PSO

NE AG

AO/PFAD

Technology AF

UCO

PO

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

Lot Size MT 2727