Oils and fatsSustainable growth

Turning Ideas into Reality.

MAN Ferrostaal

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InsightHuge potentials

Vegetable oil and biodiesel are now more sought after than ever

before. They form the basis for food, energy in combined heat and

power plants and fuel for the transport sector. Demand is growing

at a tremendous pace and will keep doing so, matching the world’s

rapid population growth and the rising living standards across wide

sections of the population in emerging markets.

Great potential lies within the market for industrial agriculture and

producers. At the same time, the raw material basis for the manu-

facture of vegetable oil is very varied. The vital ingredient, however,

is assembling the best partners for a project.

MAN Ferrostaal integrates all the relevant market players into one

project and assumes responsibility for its long-term economic

success. That is what we stand for with our Best Partner principle.

With our partners, we rely on a collaboration of trust. The tech-

nology that we choose is the best for the project concerned, and

for the financing we find individual solutions. We develop projects

designed for the future and, as general contractor, ensure smooth

plant construction and operation.

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Oils and fatsMarket with a future

The demand for vegetable oils continues unabated. Driven by the

increasing consumption of high-quality edible oils for everyday

food and the growing demand for alternative fuels in the transport

sector, 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 will have

increased to around 142 million tonnes by 2015. The

trend is constantly growing because demand is rising

out of proportion to the world population. The main

force driving this demand is the enormous population

growth and the rising living standards of wide sections

of the population, particularly in emerging and devel-

oping markets. At the same time, the consumption of

animal products is increasing there. This, in turn, has a

positive effect on the demand for high-protein animal

feed – a by-product of edible oil production.

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Edible oils are a valuable primary material for many products.

The edible oil market is growing – driven by the rising consump-tion of food and the demand for alternative fuels for the transport sector.

World edible oil production from the four most important oilseeds: rape, oil palm, soya and sunflower

© FAPRI

0.0

20.0

40.0

100.0

120.0

140.0

160.0 Sum (million metric tonnes)

80.0

111.2

120.5124.4

128.2131.6

135.2138.8

142.6

60.0

2007 2008 2009 2010 2011 2012 2013 2014 2015

115.5

In addition to the huge demand for high-quality oils

for human consumption, the further processing of

these oils into biodiesel fuel for the transport sector

plays a significant role. Exploding prices for crude oil

and mandatory blending quotas in over 40 countries

around the world will continue to drive this develop-

ment in the future. According to forecasts, the world-

wide production of biodiesel is likely to rise to 15 mil-

lion tonnes by 2015. After all, fuel from renewable raw

materials promises two benefits: energy security and

a reduction of CO2 emissions, which are known to be a

major cause of global warming.

New quality standards, such as energy awareness and

more exacting environmental requirements, also

play an increasingly important role in the production

of vegetable oils – a development which will require

the construction of many new industrial plants.

As an experienced plant constructor, MAN Ferrostaal

has established itself in the edible oil and biodiesel

sectors. We have constructed over 100 edible oil plants

around the world. The range of services we provide

varies from project development to project financing

and management, extending to our expertise as gen-

eral 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.

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Around 40 countries intend to use alternative fuels for transport in future.

The production of biodiesel has exploded in recent years. Blending quotas and record prices for crude oil will accelerate this upward trend in the future.

The consumption of edible oil by the chemical industry will increase greatly in the next ten years.

Biodiesel production of the five largest producer coun-tries (Argentina, Brazil, EU, Indonesia, USA)

2000 2005 2010 2015

Fatty acid and alcohol consumption

8.0 Sum (million metric tonnes)

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0

Alcohol Acid

2007 2008 2009 2010 2011 2012 2013 2014 20150.0

2.0

4.0

10.0

12.0

14.0

16.0 Sum (million metric tonnes)

8.0

6.0

8.3

1.7

2.22.6

3.1

5.1

6.3

7.8

3.9

9.5

12.313.1

13.814.5 15.0 15.5

9.0

© FAPRI

Agricultural sector and producersOpportunity

The global development of supply and demand for oilseed provides

excellent opportunities for a rapid growth of raw material cultiva-

tion and production. Driven by population growth, the rising demand

from emerging markets and the requirement for fuel for transport,

world production of vegetable oil, biodiesel and vegetable fats will

rise continuously in the decade to come.

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Worldwide the markets are growing. In future, several

million more tonnes of vegetable oil and fats will have

to be produced every year to cover this vast demand.

As raw materials for oil mills, soya and rape will take

the largest market share, followed by sunflowers.

For production, new plants will be built and exist-

ing plants upgraded. MAN Ferrostaal offers concrete

solutions for success for both new and experienced

producers, the agricultural industry and interested

investors. What is more, we combine project devel-

opment with the services typical of an experienced

plant constructor and the financial strength of a large

industrial concern.

Focus on edible oil

For over 35 years, as general contractor, we have been

building vegetable oil plants with capacities from

600 tonnes of oilseed per day up to large-scale plants.

Worldwide, we have completed over one hundred

such plants to date. These plants are spread through-

out 30 countries, including Russia, Brazil, Peru and

Thailand. This has made us into a world-renowned

engineering specialist for vegetable oil plants. In addi-

tion to the planning and financing, we also undertake

the construction and commissioning of the plants.

In each phase, MAN Ferrostaal works with the best partner for the project and also contributes its own refining technologies.

Partners for process phases in major projects

MAN Ferrostaal

Seed reception /seed storage

Seed preparation

Pressing

Extraction

Refinery

Oil storage

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As project developer and general contractor, in addition to the planning and financing, we also undertake the construction and commissioning of plants.

Focus on biodiesel

In the biodiesel sector, we concentrate on plants with

capacities of between 100,000 and 200,000 tonnes

per year. We frequently design these as multi-feedstock

plants, so that they can react flexibly to the existing

raw material basis and to the fuel market. We have

completed a turnkey biodiesel plant in Poland for the

customer Lotos Biopaliwa. The total investment volume

was 25 million euros. At present, we are constructing a

further biodiesel plant for the customer J&S Bio Energy

B.V. in Amsterdam, Netherlands.

Edible oil plant in Emden, Germany.

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Edible oilAn all-round talent

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Edible oils are in demand – the rising standard of

living in many countries of the world and the re-

sulting strong demand for high-quality vegetable

oils is driving the edible oil market on at a rapid

pace. At 115.5 million tonnes of oil, production

reached a new record level in 2008.

Edible oil is a collective term for a whole range of

different oils used unprocessed or as a constituent in

countless foods. A variety of raw materials therefore

come into consideration for its manufacture. Most fre-

quently used for further processing into vegetable oil

are the oily seeds of sunflowers, canola/rape, soya and

the oil palm. Together with our project partners, we

select the right raw materials for successful projects

according to the region. Apart from the oil, the meal

that remains after production of the oil is also a sought-

after product. This is used as a high-protein feed in live-

stock farming. The so-called isolates contained in the

meal can also be used as a food additive for human

nutrition. As a result of increasing affluence, particu-

larly in the emerging and developing countries, and

the associated growth in the consumption of meat,

the demand for high-quality feeds will rise sharply in

the future.

MAN Ferrostaal offers its customers in the edible oil

segment intelligent project development right from

the initial idea, in which every detail is thought out in

advance for the production of edible oil. What is more,

we combine project development with the services

typical of an experienced plant constructor and the

financial strength of a large industrial concern. This

means we are in a position to cover the process all the

way along the value added chain, from the raw material

to the raw oil through to the refined end product – re-

gardless of whether the oil is for human consumption

or for technical use.

World production of edible oils has more than doubled since the ’60s. In addition to rape, soya and oil palm, sunflowers are an important supply source for production of the valuable oil.

Most frequently processed to vegetable oil are the oily seeds of soya and the oil palm.

The largest areas of soya cultivation worldwide are in North and South America. This plant is an important raw material for the production of vegetable oil and biodiesel.

World production of 17 oils and fats (Total 159.4 million tonnes)2007/2008, million tonnes; PKO = Palm kernel oil; CNO = Coconut oil

Palm oil 41.76

Sunflower oil 9.88

Rape oil 19.13

Soya oil 38.57

Others/animal fats 41.92

PKO & CNO 8.13

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BiodieselSustainable alternative

Biodiesel represents an alternative to diesel fuel

from fossil energy sources with one essential ad-

vantage: in contrast to its fossil counterpart, it will

not run out but instead continue to grow in fields

and plantations.

Rape, soya beans, the fruit of the oil palm and even old

edible fats are all ideally suited for biodiesel production.

The manufacturing process here differs only slightly

from that of an oil destined for food use. Together

with its partners, MAN Ferrostaal has recourse to its

own technology for the manufacture of biodiesel, with

a worldwide licence for the Connemann process. This

very economical technology makes it possible to pro-

duce biodiesel of a quality above the European stan-

dard. Here too, however, our Best Partner principle

governs our business. We explore the market for the

best solutions – independent of suppliers and technol-

ogy providers.

In the production of biodiesel, we undertake to main-

tain the high standards of sustainability. This includes

certified environmental compatibility of land use, a

verifiable saving of greenhouse emissions and coexis-

tence with food production. We therefore concentrate

on countries with sufficient area available to permit

the production of biodiesel in addition to a secure

food supply – Latin America, South East Asia and East-

ern Europe.

Vegetable oils are also suitable for use as an energy

source in combined heat and power plants. In this

way, power and heat can be generated using vegetable

oils with no harmful impact on the environment. A

possibility which, against the backdrop of rising energy

costs and continuing climate change, will become

increasingly important – since every gram of green-

house gas not emitted into the earth’s atmosphere

helps to protect our environment.

Rape is an important primary material for the production of biodiesel. From the crop grown in a one-hectare field, up to 1.6 tonnes of biodiesel can be produced.

108 kg Methanol

Biodiesel plant

Multi-feedstock: Rape oil, soya oil, palm oil

(Example: Rape oil/1.030 kg)

Refining1,000 kg Edible oil

103 kgPharmaceutical glycerine

Biodiesel from plant oil

1,000 kgBiodiesel

Highly efficient processes allow MAN Ferrostaal to produce edible oil or biodiesel from a variety of starting materials. In the preparation of biodiesel, the addition of methanol also produces pharma glycerine.

Jatropha, also known as the physic nut, is a shrub from the euphorbia family and is set to play a major role in the future production of biodiesel.

Refined technology From the oil mill to the final product

Whether as ingredients in mayonnaise, as an energy source in com-

bined heat and power plants or as a fuel for transport, vegetable oils

serve as an important primary material for countless products. Re-

gardless of the raw material and the end product, MAN Ferrostaal,

as project developer and general contractor in the vegetable oil

segment, organises the planning and financing, construction and

commissioning of plants.

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Crude vegetable oil

Edible oil

Fats

Mayonnaise

Detergents

Tensides

Derivates (e.g. fatty acids, fatty alcohols,

enzymes)

All-round talent: Vegetable oils are needed for countless products. Apart from the enormous demand for high-quality oils for human consumption, their further processing into biodiesel fuel also has a major role to play for the transport sector. For the chemicals industry, they are an important primary material for the manufacture of a large number of products such as plastics, detergents, lubricants and cosmetics.

Human consumption

FuelIndustrial

processing

Biodiesel

Vegetable oil

Products from vegetable oil

A wide range of application

Edible oil can be manufactured in different ways. In

the case of soft seeds such as those from the sunflower,

the oil is pressed from the oily seeds after treatment. A

raw oil is produced. In this case, however, since about

eight percent of the oil is left in the press cake, another

process is often used: By means of so-called solvent ex-

traction, the raw oil is separated from the press cake

after the treatment and pre-pressing of the seed. The

oil yield can be increased in this way. The process var-

ies 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 sol-

vents directly after the preparatory treatment of the

raw material.

Raw oils often contain substances that have a nega-

tive effect on the flavour, odour and keeping qualities

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 less emissions are released when it is burnt.

Edible oil

Edible oil is vital for human nutrition. It can be con-

sumed without processing, 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 agri-

culture as a high-grade feed.

Biodiesel

For the production of biodiesel, a so-called transesteri-

fication process modifies the structure of the edible

oil. This produces biodiesel and glycerine. Thanks to

its outstanding combustion properties, biodiesel has

already established itself in the market. The by-prod-

uct glycerine is an important primary material for the

manufacture of cosmetics and plastics.

Oil for combined heat and power plants

Edible oil is also used as an energy source in combined

heat and power plants. These are appreciably more

efficient and more economical in consumption than

conventional power plants, using up to 90 percent of

the primary energy that is largely lost in conventional

plants. Against the backdrop of rising energy costs, the

importance of combined heat and power plants will

increase in the future.

Fatty acids and fatty alcohols

The chemical industry already uses edible oil as a pri-

mary material for the manufacture of a large number

of products. Plastics, detergents, lubricants, cosmetics

and printing inks all consist, in part, of fatty acids or

fatty alcohols. These fatty acids or fatty alcohols can

be produced by means of so-called splitting, in which

the refined oil is broken down into its individual

constituents. These are mainly used as raw materials

for tensides, from which detergents and cleaning

agents, cosmetic and pharmaceutical products are

manufactured.

By means of so-called hardening, edible oil can be processed to produce margarine.

In combined heat and power plants, up to 90 percent of the primary energy can be utilised. These can also be operated with edible oil.

Fatty acids and fatty alcohols are used for the production of tensides for the manufacture of detergents and cleaning agents.

Weighing bridge Railway unloading

Truck unloadingWeighing bridge

Reception Pre-cleaning

Preparation

Seed storage

Oil clarification

Extraction

Sunflower seed

Press cake

Flakes

Setting pit

Hexane storage

Waste air scrubber

Hexane recovery

Absorption

Hexane condensation

Water degummingDistillation

Meal coolerMeal drierDesolventizer/toasterExtractor

Oil filtration

Decanter

Oil dryingOil screening

Waste air

Waste water

Daily bin Weighing Cleaning Crushing

Dehulling

Hull pelletizing

Flaking

Wet silo Seed dryer

Oil storage

Meal storage

Pre-pressing

Refinery

Hulls

Bleaching earth

Wax

Fatty acid

Hydrogenated fatty acid

Distilledfatty acidFatty alcoholPure glycerineBiodiesel

Crude oil

Glycerine distillation

Bleaching

Soapstock splitting

Neutralization

Conditioning

Dewaxing

Hydrogenation

Fractionation/ distillation

Glycerine waterevaporation

Transesterification Splitting

MealTruck loadingMeal storage

Ship loadingTank farm

Deodorizing

Pre-pressing

Silo storage

MAN FerrostaalComprehensive expertise – worldwide

Our decades of experience as a general contractor for the con-

struction of large industrial plants all around the world mark out

MAN Ferrostaal as ideally suited to develop and build plants for the

production of edible oil and biodiesel. Our services cover the entire

process, from planning to financing to turnkey handover.

Development and financing

Our services start at an early stage – with the business

idea. We put the project on a solid basis with feasibil-

ity studies, market analyses, a business plan and the

search for strategic investors. In the contract phase

we do the preliminary work and devise strategies for

the central questions. We have technology providers

and engineering partners to assist us. In the financing

phase we develop a bespoke, efficient and transpar-

ent financing strategy. In selected cases we also get

involved financially.

Project management

MAN Ferrostaal generally takes on overall responsibil-

ity for a project, frequently as the general contractor

controlling the engineering, purchasing and construc-

tion of the plant right through to commissioning. Risk

management plays a central role here. Our project and

quality management is certified in accordance with

international standards. A partner-like relationship

with customers, suppliers and financial partners which

is based on transparency and trust is essential here.

Coordinating the partners

In some projects we bring together more than 100

partners. Our global sourcing is an important success

factor here. We cooperate with the world’s best sup-

pliers of material and services, thereby guaranteeing

the best possible cost and quality management. Our

staff in over 60 countries systematically monitor the

regional markets and thus support 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 en-

suring the high quality of the resulting products and

services.

Integration of complex systems

Plants for the production of edible oil and biodiesel

are technically complex products. As a service pro-

vider acting in partnership, we reduce this complexity

for our partners. The partnership does not end with the

handover of the turnkey plant – we also take on respon-

sibility for maintenance and service.

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Crucial for the success of edible oil production is assembling the best partners for a project. MAN Ferrostaal practises this Best Partner principle. We develop financially viable projects for long-term profitability.

Project development

EPC

· Fair risk distribution among all partners· Realistic budgets and plans· Professional joint risk management

Best Partner

MAN Ferrostaal offers its partners an attractive business approach.

Model

Capital

Triple Value

Approach

Risks

Our services at a glance:

· MAN Ferrostaal, as an experienced and dependable

partner, undertakes project development on behalf

of the customer. We provide this service for an all-

inclusive charge.

· MAN Ferrostaal participates in the capitalisation of

selected projects on terms individually agreed with

the customer.

· MAN Ferrostaal carries out the engineering, procure-

ment and construction for a large number of different

types of plants. As a successful general contractor, we

undertake the construction of turnkey plants with

reliable partners.

MAN Ferrostaal will establish partnerships for entering the biofuel market¹ Operation and Maintenance; ² Engineering Procurement Construction; ³ Utilities and Operation; 4 Special Purpose Company

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MAN Ferrostaal Your partner for oils and fats

For vegetable oil projects, we integrate all the relevant market players

into one project company. We offer our customers intelligent project

development, in which every detail for the production of edible oil

and biodiesel is thought out in advance. We know all the technolo-

gies that can be considered, but we can act independently in making

our selection. This is another reason why we can develop individual

concepts that meet the special requirements of our partners.

EPC2

E, P C U/O3

Local feedstock provider

MAN Ferrostaal(minority

share)

Special purpose company

OfftakerStrategic investor

Local feedstock provider

· Provides land and conducts operations (agro, conversion)

· Gets access to finance/offset

· Provides equity and integrates project

· Provides EPC service

MAN Ferrostaal

· Operation· Provides maintenance

Offtaker

O&M¹

· Provides the en-trepreneurial skills and representation

· Offering offtake agreement

· Outsource project development to partners

Major partners in biofuel production will form a special purpose company

6 steps of project development

Identify and secure feedstock

Sign confidentiality agreement with all major partners (core development)

Conduct feasibility study technically + commercially (active development)

Structure SPC4 and involve financing partners early in evaluation process

Define timelines, milestones and budget

Financial close

Strategicinvestor

MAN Ferrostaal – Turning Ideas into Reality.

Markets with good prospects

MAN Ferrostaal locations

MAN Ferrostaal Biofuels Competence Centres

We know all the regions that are suitable for the eco-

nomically attractive production of oils and fats. We

have been at home there for decades. We contribute

our market proximity, our experience and our inter-

national connections to ensure the success of our

projects.

Your contact partner at MAN Ferrostaal:

Geisenheim Competence Centre

MAN Ferrostaal AG

Tel + 49-6722-501-455, Fax + 49-6722-501-654

Contact partner for oils and fats

Tel + 49-6722-501-584, Fax + 49-6722-501-513

Contact partner for biodiesel

Tel +49-6722-501-296, Fax +49-6722-501-513

Contact partner for regions:

Eastern Europe

Tel + 49-201-818-2311, Fax + 49-201-818-3331

Central and South America

Tel + 49-201-818-2480, Fax + 49-201-818-3331

South East Asia

Tel + 49-201-818-2618, Fax + 49-201-818-3331

General e-mail contact for oils and fats:

oilsandfats@manferrostaal.com

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© B

ase

map

: car

togi

s, B

erlin

Biodiesel plant with a capacity of 100,000 tonnes per year.

MAN Ferrostaal AGHohenzollernstrasse 2445128 Essen/GermanyTel +49.201.818-01Fax +49.201.818-2822

www.manferrostaal.com