Turning Ideas into Reality.

Oils and fatsMarket with a future

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Vegetable oil and its derivative products are now more sought after than ever. They form

the basis for food, pharmaceutical and chemical products, energy in combined heat and

power plants, and fuel for the transport sector. Demand for this product has been growing

and is likely to continue due to the world’s rapid population growth and rising living

standards across wide sections of the emerging markets.

The processing of raw material offers great potential to benefit from this demand. At the

same time, feed stocks for the manufacture of vegetable oils are very diverse. For oil

producers it is vitally important to identify appropriate partners with whom production

facilities can be built and ensure a successful implementation of this project.

Ferrostaal integrates all the relevant market players into projects and offers efficient

solutions for both new and experienced producers, the agricultural industry and

interested investors. We form consortia in which collaborations of trust form the basis

of our relations with our partners. The technology we choose is the best for the project

concerned. Where needed, individual financing solutions are provided and proj­

ects developed and designed. As an experienced EPC contractor we coordinate the

engineering, procurement and construction for a smooth plant operation.

Agricultural feed stock processingHuge potentials

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Oils and FatsSustainable growth

The demand for vegetable oils and fats continues unabated. Driven by the increasing consumption of high-quality edi-ble oils for everyday food and the growing demands from the pharmaceutical and chemical industry, the market is developing its own momentum.

According to forecasts from the Food and Agricultural Policy Research Institute, global production of vegetable oil from the four most important oil seeds — soya, oil palm, rape and sunflower — will have increased to around 142 million tonnes by 2015. The market for these oils is rising even faster. Besides a growing world population, rising living standards within emerging and developing markets is driving this demand, so that consumption of animal products (feedstuff and the like) and human products (cosmetics and washing soaps, etc.) is also increasing. This, in turn, has a positive effect on the need for high-protein products — a by-product of edible oil production and a field in which Ferrostaal is also engaged.

In addition to the huge demand for high-quality oils for human consumption, the further processing of these oils into oleo-chemical products like detergents, lubricants, cosmetics or bio-diesel fuel is significant. Furthermore, new quality standards, such as energy awareness and more exacting environmental requirements, have stimulated the production of vegetable oils. This trend will, in turn, require the construction of many new industrial plants.

As an experienced plant constructor, Ferrostaal has established itself in the edible oil and oleochemical sectors. During the last 35 years, we have constructed over 100 edible oil and various

oleochemical plants, spread throughout 30 countries, including Russia, Brazil, Peru and Thailand. The range of services we pro-vide varies from project development to project financing and management up to our role as experienced general contractor. Our plants combine a high level of environmental compatibility with low energy consumption — criteria which are becoming increasingly important in times of diminishing resources.

© FAPRI

Worldwide edible oil production from the four most important oilseeds: soya, oil palm, rape and sunflower [from the graphic]

2009 2010 2011 2012 2013 2014 2015

160.0 Sum (million metric tonnes)

140.0

150.0

120.0

130.0

110.0

100.0

0.0

120.5124.4

131.6

142.6

135.2

128.2

138.8

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Seed storage

Reception Pre-cleaning Wet silo Seed dryer Silo storage

Weighing bridge Truck unloading

Weighing bridge Railway unloading

Seed

Oil clarification

Oil screening Oil drying

Decanter

Oil filtration

Meal storage

Meal storage Truck loading Meal

Extraction

Extractor Desolventizer/toaster Meal drier Meal cooler

Distillation Water degumming

Absorption Waste air scrubber

Hexane condensation Hexane recovery Hexane storage

Setting pit

Waste air

Extracted oil

Waste water

Whether as ingredients for food, pharmaceutical or chemical prod-ucts, an energy source in combined heat and power plants or a fuel for transport, vegetable oils serve as an important primary material

for countless products. Regardless of the raw material and the end product, Ferrostaal as project developer and general contractor organises the planning, financing, construction and commissioning of plants in the vegetable oil field.

A wide range of application Most frequently used for further processing into vegetable oil are the oily seeds of soya, the oil palm, canola/rape and sunflowers. Apart from the oil, the meal that remains after production of the oil is also a valuable product used as a high-protein feedstuff in livestock farming. The so-called isolates contained in the meal can also be used as a food additive for human nutrition. Edible oil can be manufactured in different ways. In the case of soft seeds such as those from the sun-flower, the oil is pressed from the oily seeds after treatment,

producing a raw oil. In this case, however, since about eight per cent of the oil is left in the press cake, another process is often used: By means of ‘solvent extraction’, the raw oil is separated from the press cake after the treatment and pre-pressing of the seed, thus increasing the oil yield. The process varies slightly according to the raw material. In the case of soya, for example, the pressing can be completely dispensed with. The oil is extracted by means of solvents directly after the preparatory treatment of the raw material.

Raw oils often contain substances that have a negative effect on the flavour, odour and shelf life of the oil. For this reason, practically all edible oils are nowadays refined. But refining is also important for the production of technical oil — the higher the purity of an oil, the fewer the emissions when it is burnt.

Processing technologyFrom the seed to the final product

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Biodiesel Pure glycerine Fatty alcohol Hydrogenatedfatty acid

Distilledfatty acid

Pre-pressing

Daily bin Wheighing Cleaning Flaking

Hull pelletizing

Conditioning Pre-pressingCrushing

Dehulling

Hulls

Flakes Press cake Press oil

Oil storage

Tank farm Ship loading Vegetable oilNeutralization

Degumming

Soapstock splitting

Bleaching DeodorizingDeacidification

Refinery

Waxes

Used Bleaching earth

Fatty acid

Dewaxing

Transesterrification

Glycerine water evaporation

Glycerine distillation

Fractionation/distillation

Hydrogenation

Fat splitting

Oil for combined heat and power plants Vegetable oil is also used as an energy source in combined heat and power plants. These are appre-ciably more efficient and more economical in consumption than conventional power plants, using

up to 90 per cent of the primary energy that is largely lost in conventional plants.

BiodieselBiodiesel has already established itself in the market. Ferrostaal has recourse to its own technology for the manufacture of biodiesel and has received a worldwide licence for the Connemann process. This

very economical technology allows fully continuous operation with minimal space requirements producing biodiesel of a quality above European standard.

Edible oilEdible oil is vital for human nutrition. It can be consumed without process-ing, but it is also used as a constituent in food. By means of special hardening processes, vegetable oil can be made into margarine. The meal left over

from the production is used in agriculture as a high-grade feed.

OleochemicalsFor its use in pharmaceutical, chemi-cal or fuel products, vegetable oil is treated in different ways to receive the desired raw material. ‘Splitting’ breaks down the oil into its indi-vidual constituents, such as fatty

acids and, in a further process step, fatty alcohols. From these elements, detergents, cleaning agents, cosmetics and other pharmaceutical products are manufactured. In the so-called transesterification process the structure of the vegetable oil is modified, producing methyl ester (biodiesel) and glycerine.

Gums

Fatty acid destillat

Preparation

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Our decades of experience as an EPC contractor for the construction of large industrial plants all around the world have distinguished Ferrostaal as ideally suited for the design and construction of plants for the production of edible oil and oleochemical products. Our project develop-ment has supported our customers in forging new paths through the entire value chain. As project managers we ensure that plants are profitable on a long-term basis. Our services cover the entire process from planning to financ-ing to turnkey handover.

Development and financingOur services start at an early stage — with the business idea. We put the project on a solid basis with feasibility studies, market analyses, a business plan and the search for strategic investors. In the contract phase we perform the preliminary work and devise strategies for the central questions. We are assisted by technology providers and engineering partners. In the financing phase we develop a customised, efficient and transparent financing strategy. In selected cases we also get involved financially.

Project management Ferrostaal generally takes on overall responsibility for a proj-ect, frequently as the general contractor controlling the engi-neering, procurement and construction (EPC) of the plant right through to its commissioning. Risk management plays a central role here. Our project and quality management is

certified in accordance with international standards. Based on transparency and trust our relationship with customers, suppliers and financial associates forms the basic principle of cooperation.

Coordinating the partnersIn some projects we symbiotically join more than 100 part-ners. Our global sourcing is an important success factor here. We cooperate with the world’s best suppliers of material and services, thereby guaranteeing the best possible cost and qual-ity management. Our staff in over 40 countries systematically monitors the regional markets and thus supports our global sourcing activities. Precise knowledge of the creditworthiness and quality of the local providers ensures a solid basis for selecting the suppliers. As the general contractor we coordinate the work of all these partners, thus ensuring the high quality of the resulting products and services.

Integration of complex systemsPlants for the production of edible oil and oleochemicals are technically complex products. As a service provider acting in partnership, we reduce this complexity for our partners. The partnership does not have to end with the handover of the turnkey plant — we also take on responsibility for main-tenance and service.

FerrostaalManaging industrial plant projects

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Contact

Ferrostaal Industrieanlagen GmbHIndustriestr. 1365366 GeisenheimGermany

Phone +49. 6722. 501-01Fax +49. 6722. 501-654oilsandfats@ferrostaal.com

Ferrostaal locations worldwide

Ferrostaal headquarters

We know all the regions that are suitable for the economically attractive production of oils and fats. Together with our project partners, we select the right raw materials for successful proj-ects according to the region.

We have been at home there for decades. We contribute our market proximity, our experience and our international connec-tions to ensure the success of our projects. This has made us into a world-renowned engineering specialist for vegetable oil plants.

In over 40 countries Ferrostaal has been linked to many of its customers by a long-standing partnership – for 80 years.

www.ferrostaal.com

Ferrostaal Industrieanlagen GmbHIndustriestr. 1365366 GeisenheimGermany

Phone +49. 6722. 501-01Fax +49. 6722. 501-654