CPI Lecture 1-5 Merged PDF

Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City,...

Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering BACHELOR OF SCIENCE IN CHEMICAL ENGINEERING Chemical Process Industries (ChE 419) PETROLEUM AND PETROCHEMICALS INDUSTRY 1. Manufacturing of Petrochemicals Introduction to Petrochemical Industry The petrochemicals industry plays a crucial role in the global economy, supplying essential components for 95% of all manufactured products, including pharmaceuticals, building insulation, smartphones, sportswear, and wind turbines. However, the production process is extremely energy-intensive and generates a considerable amount of greenhouse gases. Currently, the industry is dedicated to a substantial shift towards sustainability by striving for climate neutrality, enhancing circularity, embracing digitalization, and executing the Chemical Strategy for Sustainability, all while maintaining global competitiveness (Cefic, 2023). Petrochemicals are organic compounds sourced from petroleum-based materials (known as naphtha) or natural gas, or they can be derivatives created through chemical reactions, such as ammonia, carbon black, and numerous organic chemicals. A major category within the petrochemical product range includes plastics or synthetic resins. Progress in chemistry heavily relies on substances like ethylene, propylene, butadiene, and benzene (Philippine Board of Investments, 2017). Petrochemicals improve product lifecycles and enhance the durability, flexibility, and convenience of various materials, making them more lightweight and efficient. These innovations are present in renewable energy solutions like windmills and solar panels, insulation materials, healthcare, safety and protection, long-lasting construction infrastructures, and many other applications (American Fuel & Petrochemical Manufacturers, 2024). Importance of Petrochemicals The petrochemicals sector is a strategic part of the economy that can drive the country’s industrial development. Due to its extensive connections upstream, midstream, and downstream, this sector has substantial multiplier effects on other key economic sectors, including construction, electronics and computing, medical services, transportation and automotive, Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering packaging, education, telecommunications, electrical and water distribution, agriculture and fishery, and furniture, among others. The main industry association in the petrochemicals sector is the Association of Petrochemical Manufacturers of the Philippines, Inc. (APMP). APMP is affiliated with the Federation of Philippine Industries (FPI) and the Philippine Chamber of Commerce and Industry (PCCI) (Department of Trade and Industry and Board of Investments, n.d.). The establishment of the Philippines' first naphtha cracker facility by JG Summit Olefins Corp. (JGSOC) marks an important step toward the upstream integration of the petrochemicals industry. This facility is set to enable the development of various downstream operations, expanding the range of petrochemical products and enhancing the primary offerings within the country. With the increasing demand for resins in both domestic and international markets, a positive outlook for the domestic economy, and government initiatives to bolster the manufacturing sector, investments in the petrochemicals industry are expected to grow further (JG Summit Petrochemicals Group, 2015). Raw Materials and Feedstocks A feedstock is a raw material used to create useful products in an industrial process. Natural gas and crude distillates, like naphtha from petroleum refining, serve as feedstocks to produce a wide range of petrochemicals, which are utilized in manufacturing consumer goods. Petroleum refineries mainly focus on fuel production, generating products such as LPG (liquefied petroleum gas), gasoline (petrol), kerosene and jet fuel, diesel, fuel oils, and coke. On the other hand, petrochemical plants specialize in converting petroleum-based feedstocks into a variety of chemical products, including plastics, rubber, and numerous industrial chemicals. Petrochemicals are specifically geared towards producing intermediates for both industrial and consumer products (Firdaus, 2023). Examples of Petrochemical Plants ❖ Ethylene Plant Ethylene plants are a prevalent type of petrochemical facility that focuses on producing ethylene, a crucial component for various plastics and chemicals. These plants Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering utilize processes such as steam cracking to break down hydrocarbons and extract ethylene (Firdaus, 2023). ❖ Methanol Plant Methanol plants are dedicated to producing methanol, a versatile chemical used in numerous applications, including as a solvent, fuel, and feedstock for other chemicals. These plants commonly employ processes like steam methane reforming (Firdaus, 2023). ❖ Polyethylene Plant Polyethylene plants specialize in the production of polyethylene, a widely used plastic. Through polymerization processes, these plants convert ethylene into polyethylene, which is then used to manufacture packaging materials, containers, and more (Firdaus, 2023). 2. Key Products from Petrochemicals Petrochemicals form the backbone of modern economies, being integral to a wide range of consumer and industrial products essential for daily use. These highly versatile chemicals are found in everything from synthetic tires to automotive headlamps and lenses. While often associated with plastics, their applications extend far beyond, including household groceries and rocket propulsion (Firdaus, 2023). ❖ Olefins (Alkenes) Olefins are unsaturated hydrocarbons characterized by one or more carbon-carbon double bonds. Key olefins include ethylene (C2H4) and propylene (C3H6). Ethylene is crucial in producing polyethylene, a widely used plastic, while propylene is a precursor for polypropylene, an important polymer used in various applications like packaging materials (Singfield, 2019). ❖ Aromatics Aromatics are cyclic hydrocarbons with alternating single and double bonds. Common aromatic compounds include benzene (C6H6), toluene (C7H8), and xylene (C8H10). Benzene is a fundamental building block for synthesizing numerous chemicals, Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering including styrene, which is vital in manufacturing polymers such as polystyrene (Singfield, 2019). ❖ Synthetic Gas (Syngas) Syngas is a mixture of carbon monoxide (CO) and hydrogen (H2), produced through processes like steam methane reforming. It serves as a versatile intermediate for various chemical syntheses and can be converted into methanol, ammonia, and other chemicals (Singfield, 2019). 3. Applications of Petrochemicals The Global Petrochemical Sector In 2020, the global petrochemical sector was valued at approximately USD 530 billion, with projections indicating growth to over USD 700 billion by 2025 (source: Grand View Research). In 2021, China led as the largest producer and consumer of petrochemicals, accounting for 29% of global production and 28% of consumption. The United States was the largest single producer of ethylene, contributing 19.5% of global production capacity, closely followed by China at 19.3% (Figure 11). Globally, petrochemical products are primarily used in packaging (28% of output), electronics (19%), construction (14%), automobiles (12%), and various other sectors (27%). The demand for petrochemical products generally grows 1-2 times faster than the overall economic growth rate. Figure 1. Global Demand for Petrochemicals Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering ❖ Packaging According to Maple Research (2023), petrochemical packaging involves the use of materials derived from petrochemicals for packaging applications. These chemical compounds, such as polyethylene, polypropylene, and polystyrene, are extracted from petroleum and are highly valued in various industries, particularly for packaging. Their attributes—durability, strength, and resistance to moisture, chemicals, and UV radiation—make them ideal for this purpose. The outlook for the petrochemical packaging market is promising. This growth is driven by the expanding global packaging industry, with rising demand from sectors like food and beverages, pharmaceuticals, personal care, and e-commerce. Consumers increasingly prefer convenient and sustainable packaging solutions, and petrochemical packaging is well-positioned to meet these needs. Petrochemicals play a crucial role in packaging for both food and non-food items. Every year, tonnes of food are wasted because they spoil in our fridges and cupboards. Modern wrapping materials, derived from petrochemicals, help keep our food fresh and safe. Petrochemical-based liners prevent food from coming into contact with packaging materials that could react with the contents. Strong, durable packaging not only protects us but also the environment from hazardous products, such as certain cleaning agents. Additionally, petrochemicals enable the creation of packing materials that are both strong and lightweight, which reduces transport costs and emissions. Additionally, economic growth in emerging markets, urbanization, and increasing disposable incomes are expected to boost the petrochemical packaging market. The rise of e-commerce further drives market growth, as it necessitates efficient packaging for the safe transportation and delivery of goods. Ongoing research and development by petrochemical manufacturers aim to enhance the recyclability and reduce the environmental impact of their packaging materials, creating new opportunities in the market. Moreover, stringent regulations promoting sustainable packaging practices are likely to increase demand for eco-friendly petrochemical packaging solutions. Given these favorable dynamics, the petrochemical packaging market is anticipated to grow at a compound annual growth rate (CAGR) of 14% during the forecast period. Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering Figure 2. Iwatani Corporation (One of the Top 7 Polyethylene Terephthalate (PET) Resin Manufacturers in the World) ❖ Electronics Petrochemicals are the building blocks for electronics’ devices; from smartphones to laptops to gaming system and much more Whether it is the screen, the components or the shell of our mobile phone or tablet, we all rely on petrochemicals to keep us connected. Petrochemicals are being used to develop newer and faster optical circuits and for bright, clear and durable screens, in household appliances, high tech sportswear and all other electronics we use today. The acceleration of Inflation that led to consumers being more cautious over their spending resulted in demand from downstream industries to soften, in particular from producers of electrical appliances, electronics, and auto parts. However, the effect of this on prices was partly offset by the decision by Asian manufacturers to take production capacity offline or to postpone increases in this as they looked to avoid excessive stockholding and to bring this into line with more depressed market conditions. Figure 3. Siemens Styroflex Polystyrene Red Stripe Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering ❖ Construction Petrochemicals have changed the building and construction industry by providing strong, affordable, and energy-saving materials. Plastics and synthetic materials from petrochemicals are used in pipes, insulation, wiring, flooring, and roofing. These materials offer great thermal insulation, resist moisture, and are durable, helping to build sustainable and energy-efficient buildings. Petrochemicals are the hidden heroes behind many products in our modern lives. From transportation and packaging to textiles and electronics, these chemical compounds have transformed industries, giving us convenience, comfort, and efficiency. While efforts are being made to find more sustainable alternatives, petrochemicals are still essential in many areas. As we move forward, it’s important to balance using petrochemicals with promoting sustainability. Modern paints and coatings do not just add colour, they help protect buildings whilst insulation products with unrivalled performance make our buildings more energy efficient. Transparent, yet incredibly strong and long-lasting materials made of petrochemicals contribute to making buildings more sustainable across the world. Although not always visible, the building and construction industry uses petrochemicals for a wide and growing range of applications from insulation to piping, window frames and interior design, paints, coatings, to name but a few. Figure 4. Pacific Paint (Boysen) Philippines, Inc. (Sustainable Company of the Year at the Global Responsible Business Leadership Awards 2018) ❖ Automotive One of the most significant applications of petrochemicals lies in the transportation sector. The automotive industry heavily relies on petrochemicals for the production of fuels, lubricants, and plastics. Gasoline, diesel, and jet fuel are derived from crude oil, while lubricants such as engine oils and transmission fluids ensure the smooth operation of our vehicles. Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering Additionally, lightweight and durable plastics derived from petrochemicals are used in various automotive parts, reducing weight and improving fuel efficiency. Petrochemistry is used in all forms of modern transport. On land, at sea and in the air, petrochemical products play a key role in making transport more efficient and safe, and reduce its impact on the environment. Be it in the fuel, coolant liquid, brake fluids or oils that power engines or in components of cars, planes or ships, petrochemical products keep us on the move. They can also help lower emission by making materials more lightweight and improving fuel performance. They help reduce noise and keep us safe on the road by cleaning dirt thanks to washer fluids. Figure 5. Transportation Vehicles ❖ Medical From design furniture to aircraft de-icing fluids and water desalination systems, petrochemicals are pivotal in a multitude of products. Petrochemicals are key for renewable energy and are used to produce high performance thin-film solar panels and high-performance wind turbines. Several petrochemicals are key elements to the safe and efficient manufacturing of pharmaceuticals, from aspirin, antibiotics, blood thinners and painkillers to the most advanced pharmaceuticals products. They are a key ingredient in cosmetics and water filtrations systems as well as the latest fuel-efficient aircraft and are even used in space. Petrochemicals are commonly found in the personal care products we use every day. Cosmetics, skincare items, soaps, and shampoos often include ingredients derived from petrochemicals, such as parabens, mineral oils, and surfactants. These ingredients provide benefits like preservation, moisturizing, and foaming, which improve the effectiveness and shelf life of these products. Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering Figure 6. Unilab: Trusted Quality Healthcare (League of Corporate Foundation Award 2021) 4. Order of Petrochemical Processing A vast majority of petrochemicals are obtained from fossil fuels, such as natural gas and crude oil. The remaining energy is usually supplied by coal and biomass. A major, if not the most important element of the industry is the petrochemical plant itself. These plants are the powerhouses that convert natural resources into petrochemicals to be used as the building blocks for other processes and products. These facilities can accommodate the growing needs, expectations, and demands of the contemporary global economy because they are progressively more complex, impressive in terms of scale, and engineering marvels. There are five steps in the petrochemical processing sequence that convert raw materials into various products. Table 1. Petrochemical Process Definitions Examples 1 Feedstocks Chemical feedstock refers to any type of Natural Gas unprocessed material used in a manufacturing process as a base material to Ethane be transformed into another end product. Propane The extraction of crude oil and natural gas from underground and offshore sources is Butane the initial stage in the petrochemical process. Refineries receive these raw feedstocks and Condensate use processes like distillation and other techniques to separate them into different Naphtha fractions like heavier oils, lighter gases, and Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering naphtha. The two primary feedstocks used in the production of petrochemicals are naphtha and natural gas liquids. 2 Basic Through a process known as "cracking" of Ethylene Chemicals the separated hydrocarbon fractions, the larger molecules are broken down into Propylene smaller, more usable ones. The primary components of petrochemicals, such as Butylene ethylene and propylene, are produced and are known as olefins. Ethylene and Butadiene propylene are feedstocks for numerous downstream products. Aromatics Basic petrochemicals are the basis of many Ammonia products, including plastic, paper, fibres, adhesives, and detergents. Methanol 3 Chemical Chemical derivatives are more complex Styrene Derivatives versions of primary petrochemicals. They are then used as feedstocks for a wide Ethylene Glycol range of downstream chemical manufacturing processes. Isobutylene These include producing textiles, rubbers, Acrylonitrile polymers (plastics), detergents, solvents, and a host of other important chemicals and Glycerine minerals. This is the stage where the basic building blocks are transformed into the exact chemicals needed for the final products. 4 Manufacturing The petrochemicals are further processed Industrial Chemicals Products and combined to create a vast array of final consumer and industrial products, including Plastics plastics, synthetic fibers, paints, pharmaceuticals, and more. Resin Paints & Coatings Common techniques involve the use of chemical reactions such as hydrogenation, Synthetic Rubbers oxidation, and polymerization, which are specifically engineered to produce desired Explosives products. Foams Dyes Adhesives Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering Synthetic Fibers 5 Consumer The final petrochemical-derived products are Clothing Products then distributed to end-users and incorporated into the everyday items we use, Packaging from packaging and textiles to toiletries and beyond. Appliances & Electronics The petrochemical industry is a crucial part of the global supply chain for Vehicles & Machinery manufacturing. As long as the demand for their products continues to rise due to rising Office & Industrial living standards and an increase in the use of Equipment plastics and synthetic materials, petrochemical companies will play an Pharmaceuticals & increasingly important role in meeting the Personal Care needs of a world that is changing rapidly. Building Materials Furniture 5. Impact of Petrochemical Industries Economic Impact (Positive Impact) ❖ Contributes to a Country’s Economic Growth - The petrochemical industry produces fuels e.g. gasoline, liquified natural gas, etc., which are known to be some of the most valuable products that have existed, which means that there’s a big need for them in the local and global market. - This industry is known to be a major contributor to a country’s GDP. In America, the industry contributes nearly $600 billion per year. ❖ Development of New Infrastructure - Due to the increasing demand for petrochemicals, manufacturers invest in new technology/systems and construction of new manufacturing facilities. Almost $200 billion is spent each year by America for the construction of new plant facilities. ❖ Job Creation - The petrochemical industry generates millions of jobs directly (petrochemical plants) and indirectly (construction, transportation, retail, etc.) Environmental Impact (Negative Impact) Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering ❖ Climate Change - Greenhouse gasses like CH4 and CO2 are often produced during the production of petroleum products. Too much emission of these gasses may worsen the climate change happening on Earth. ❖ Air Pollution - Other pollutants such as SO2, NOx, VOCs, and PMs, are often emitted by refineries. This may result in air pollution, if not prevented immediately. ❖ Toxic Waste Generation - Most undesirable products (HM, residues, filter cakes) by the industry are usually hazardous. Disposal of these wastes is challenging, so expensive complicated treatment systems may be needed. ❖ Water Pollution - Discharging untreated liquid industrial waste and oil spills can harm aquatic life and lead to water pollution/contamination. ❖ Soil Contamination - Pipeline and storage tank leakages, as well as other industrial wastes, may contaminate the soil, affecting agriculture and terrestrial ecosystems. ❖ Resource Depletion - Extraction of petroleum depletes non-renewable natural resources. Mitigating Measures ❖ Stricter Regulations and Compliance - Enforcing stricter implementation of control measures minimizes the probability of accidents happening. - Includes regular environmental monitoring and transparent reporting. ❖ Adapting Sustainable Practices - Industries should invest in cleaner and more efficient technologies for emissions and waste reduction. - Practicing sustainable practices such as switching to renewable materials/energy sources, recycling wastes, etc. ❖ Offer Training Programs - Employees are more prepared to handle accidents effectively, minimizing environmental damage. - Enable employees to be updated on the latest technologies for minimizing environmental impacts. Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering References Department of Trade and Industry and Board of Investments (n.d.). Securing The Future of Philippine Industries. https://industry.gov.ph/industry/petrochemicals/ Firdaus, S. (2024, January 30). Introduction to Petrochemical Plant and Its Function. PetroSync Blog. https://www.petrosync.com/blog/what-is-petrochemical-plant/#How_Does_A_Petrochem ical_Plant_Operate How A Petrochemical Is Produced. (n.d.-b). American Fuel & Petrochemical Manufacturers. https://afpm.org/industries/operations/how-petrochemical-produced JG Summit Petrochemicals Group (2015). JG Summit Olefins Corporation » Our Plant. https://jgspetrochem.com/our-plant/ Petrochemical Packaging Market Size, Share & Trends Analysis Report By Application, Regional Outlook, Competitive Strategies, And Segment Forecast. (n.d.). Www.linkedin.com. Retrieved June 25, 2024, from https://www.linkedin.com/pulse/petrochemical-packaging-market-size-share-amp-trends- analysis/ Petrochemicals and Their Applications in Our Daily Lives: Fuelling Modern Society by JGB UAE - Issuu. (2023, May 23). Issuu.com. https://issuu.com/jgbuae/docs/petrochemicals_and_their_applications_in_our_daily Philippine Board of Investments (2017). THE PHILIPPINE PETROCHEMICAL INDUSTRY PROFILE. https://boi.gov.ph/wp-content/uploads/2018/02/Petrochemicals-March-13-2017.pdf Singfield, A. (2019, November 7). What Are Petrochemicals? These Amazing Chemical Compounds Are Everywhere!. Vista Projects. https://www.vistaprojects.com/what-are-petrochemicals/ Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering The journey of petrochemicals explained: from raw materials to 95% of all manufactured goods - cefic.org. (2023, March 17). cefic.org. https://cefic.org/media-corner/newsroom/the-journey-of-petrochemicals-explained-from-r aw-materials-to-95-of-all-manufactured-goods/ Prepared by: 21-06182 – Adarlo, Hannah Mae M. 21-05344 – Chavez, Katrina M. 21-09729 – Fancubit, Joyze Franchesca N. 21-04026 – Pantoja, Gheerah Mae S. Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering BACHELOR OF SCIENCE IN CHEMICAL ENGINEERING Chemical Process Industries (ChE 419) VEGETABLE OIL AND BIOFUELS INDUSTRY I. Background of the Vegetable Oil and Biofuels Industry A. Vegetable Oils Vegetable oils, also known as vegetable fats, are derived from the seeds or other parts of fruits and consist of mixtures of triglycerides. These oils are typically edible, with popular varieties including sunflower oil, olive oil, canola oil, soybean oil, corn oil, and palm oil. BRIEF HISTORY The use of vegetable oils dates back thousands of years. Some of the earliest evidence of vegetable oil production comes from Ancient Egypt, where olive oil was used for cooking, lighting, and cosmetics. In the 18th century, there were advancements in the understanding of the chemistry of fats and oils, which led to the development of new methods of extraction and processing. The 19th and 20th centuries saw the rise of large-scale industrial production of vegetable oils, driven by the development of new technologies and the increasing demand for these products (Vegetable Oils: A History of Fats Gone Wrong, n.d.). VEGETABLE OIL INDUSTRY Global Edible Oil Industry The vegetable oil sector is a major and vital part of the global food industry, which involves the extraction, processing, and distribution of oil from various oil-producing plants. These oils have a diverse array of uses, encompassing both food and industrial applications. They are commonly used in cooking, as components in processed foods, and in products such as biofuels, lubricants, paints, and soaps (Kumar et al., 2016). In 2017, the global vegetable oil market was valued at approximately $91.4 billion USD. Furthermore, vegetable oil has a production increase of 125% between 2000 and 2020, driven largely by a sharp rise in palm oil production. Moreover, the main oilseeds produced globally are soybeans, which account for over 50% of total oilseed production. Other major oilseeds include sunflower, rapeseed (canola), cottonseed, groundnut, linseed, sesame, olives, soybeans, and moringa (El-Hamidi & Zaher, 2018). Meanwhile, Palm oil holds the largest global market share among vegetable oils. It’s Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering versatile and used in various industries, including food, cosmetics, and biofuels (DataM Intelligence, n.d.). The market for vegetable oils is expanding rapidly, driven by both nutritional and industrial needs. This growth is due to increasing global demand for edible oils and biofuels. As consumers become more health-conscious, they are seeking oils with lower cholesterol and fat content. In 2017, the global vegetable oil market was valued at around $91.4 billion USD. Major markets for edible oils are China and India. (El-Hamidi & Zaher, 2018). Furthermore, palm oil, in particular, holds the largest market share among vegetable oils due to its versatility and use in various industries such as food, cosmetics, and biofuels. Between 2000 and 2020, vegetable oil production rose by 125%, largely due to significant growth in palm oil production. Additionally, soybeans are the most produced oilseed globally, making up over 50% of total oilseed production (DataM Intelligence, n.d.). Local Oil Industry Presented in the picture is the list of the leading companies in vegetable oil market in the Philippines: Figure 1.1. Leading players in Philippines Vegetable Oil Market ECONOMIC IMPACT The vegetable oil industry plays a crucial role in the economies of producing countries by driving export revenues. It creates jobs across agriculture, processing, and distribution sectors. The industry significantly influences global trade, with key exporters such as Indonesia, Malaysia, and the United States leading the market (Stseo, 2020). B. Biofuels Biofuels are renewable energy sources made from biological materials like algae, animal waste, and plants. They provide an alternative to fossil fuels for heating, power generation, and transportation. Biofuels are viewed as more eco-friendly because they can lower greenhouse gas emissions and reduce reliance on limited fossil fuel resources, Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering offering a sustainable solution to our energy requirements (Segovia-Hernández et al., 2022). BRIEF HISTORY The biofuels industry focuses on developing and producing fuels from biological sources. It is a dynamic sector with a long history, gaining increasing importance in the fight against climate change. Early Days (Before 19th Century): Biofuels have been around for millennia. Ancient civilizations used vegetable oils for lamps, indicating an early understanding of their potential as an energy source. Industrial Revolution (19th Century): The rise of industries led to a surge in energy demand. Biofuels, particularly those derived from plants, gained traction as an alternative to limited coal resources. The invention of new processing techniques further propelled the industry forward. 20th Century and Modern Era: The 20th century saw fluctuations in biofuel interest. Oil discoveries and subsequent low prices led to a decline, but energy crises like the 1970s oil embargo rekindled interest in alternatives. Modern advancements in biofuel technology are crucial. Techniques like enzymatic processes and utilizing microorganisms have improved efficiency and opened doors for new biofuel types. BIOFUELS INDUSTRY Production in the biofuels industry has grown significantly over recent decades, making it a crucial component of the renewable energy sector. This industry includes various types of biofuels, such as ethanol, biodiesel, and advanced biofuels, which are produced from different feedstocks using diverse technological processes (Biofuel Basics, n.d.). LIST OF BIOFUELS The list demonstrates the biodiesel producers in the Philippines based from the Department of Energy: Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering Figure 1.2. List of Biodiesel Producers in the Philippines (DOE, n.d.). KEY ASPECTS OF THE BIOFUELS INDUSTRY: Feedstock: Biofuels are derived from various organic materials like: ○ Energy Crops: Grown specifically for biofuel production (e.g., corn for ethanol, Jatropha for biodiesel). ○ Waste Biomass: It also involves the use of organic waste products like agricultural residue, used cooking oil, and forestry trimmings. Types of Biofuels: Two main categories dominate the market: 1. Ethanol: Ethanol (CH₃CH₂OH) is a renewable fuel made by fermenting plant sugars and starches. It is used as a gasoline additive to boost octane levels and reduce carbon monoxide emissions (Biofuel Basics, n.d.). 2. Biodiesel: Biodiesel is a cleaner-burning alternative to petroleum-based diesel fuel. It is created from renewable resources such as animal fats, recycled cooking oil, and vegetable oils (Biofuels, n.d.). 3. Renewable Hydrocarbon “Drop-In” Fuels: Scientists are developing advanced biofuels from algae, cellulosic biomass, and waste materials. These hydrocarbon biofuels can replace petroleum products in existing infrastructure, including pipelines, refineries, storage tanks, and vehicles (DOE Explains...Biofuels, n.d). Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering ECONOMIC IMPACT Job Creation: Provides employment in agriculture, processing plants, research, and logistics. Rural Development: Brings economic benefits to rural areas involved in cultivating feedstock and producing biofuels. Energy Security: Reduces reliance on imported fossil fuels, enhancing national energy independence. Export Opportunities: Allows biofuel-producing countries to export surplus production, impacting global trade dynamics (Nunez, 2019). ENVIRONMENTAL IMPACT Greenhouse Gas Emissions: Can significantly reduce emissions compared to fossil fuels, depending on the feedstock and production methods used. Land Use and Deforestation: Growing biofuel crops may cause land use changes, biodiversity loss, and deforestation. Water Usage: Some biofuel crops require large amounts of water, raising concerns about water resource management. Soil Health: Sustainable practices can improve soil quality, while poor practices may cause soil degradation (Lehman & Selin, 2024). II. General Overview A. Structure of Vegetable Oils Vegetable oil, any of various fatty oils derived from vegetables, nuts, seeds, fruits, and cereal grains. These are primarily composed of triglycerides and are typically liquid at room temperature. Triglycerides contain a three backbone with 3 long chain fatty acids in which they are attached through ester linkages. Figure 2.1. A triglyceride, overall unsaturated, with the glycerol "backbone" on the left, and saturated palmitic acid, monounsaturated oleic acid, and polyunsaturated alpha-linolenic acid (Libretexts, 2023). Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering Generally, triglycerides with more unsaturated fatty acid substituents are more healthful, but food companies hydrogenate them to make them solid saturated fats, and to reduce the tendency to spoil. Unsaturated fats have kinks in their molecular structures that reduce the tendency for them to cause atherosclerosis (clogged arteries), pretty much for the same reason that kinks reduce the tendency to pack efficiently and form solids. Saturated fats have more linear fatty acid chains that pack well and solidify easily. Vegetable oils are primarily composed of triglycerides and contain a greater variety of fatty acids compared to animal fats. The specific fatty acid composition varies between different oils. For example, olive oil is high in the monounsaturated fatty acid oleic acid (83.26%), which may reduce heart disease risk, while sunflower oil and soybean oil are high in the polyunsaturated fatty acid linoleic acid (60.34% and 62.72% respectively). Linseed oil has the highest level of the omega-3 polyunsaturated fatty acid alpha-linolenic acid of any vegetable oil. Some vegetable oils like coconut, cottonseed, palm and palm kernel oil are high in saturated fatty acids. Coconut oil contains saturated fatty acids like lauric acid that can raise LDL cholesterol and heart disease risk. Partially hydrogenating vegetable oils to make them solid creates trans fats, which are unhealthy and commonly found in fried foods and baked goods. Table 2.1. Composition percentage of fatty acids present in samples of vegetable oils (Souza et al., 2010). B. Biofuel Conversion Biofuels is a type of fuel in which its energy is derived from biological carbon fixation. These include fuels derived from biomass conversion, as well as solid biomass, liquid fuel and various biogases. Biofuel conversion is the process of breaking down biomass feedstocks into simpler compounds that can be processed into liquid transportation fuels like ethanol and biodiesel. There are two main approaches to biofuel conversion - thermochemical and biochemical. Thermochemical conversion methods use heat and limited oxygen to break down biomass. Gasification uses high temperatures (1000-1200°C) to convert biomass into synthesis gas, a mixture of hydrogen and carbon monoxide that can be further processed into fuels. Pyrolysis uses moderate temperatures (500-800°C) in the absence of oxygen to produce bio-oil, which can be upgraded into hydrocarbon fuels. Hydrothermal Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering liquefaction uses high heat and pressure to convert wet biomass like algae directly into bio-crude oil. Biochemical conversion methods use enzymes or microorganisms to break down the cellulose and hemicellulose in biomass. Fermentation uses these biological processes to break down the sugars in biomass into ethanol. Anaerobic digestion uses bacteria to break down organic matter in the absence of oxygen, producing biogas that can be upgraded to methane or other fuels. Second-generation biofuels derived from lignocellulosic biomass like agricultural and forestry residues are a focus of ongoing research, as they avoid the "food versus fuel" debate associated with first-generation biofuels from food crops. Emerging technologies are also exploring the use of microalgae as a feedstock for producing biodiesel and other hydrocarbon biofuels. The choice of conversion process depends on the specific biomass and desired fuel product, and integrating thermochemical and biochemical steps can improve overall efficiency. III. Production of Vegetable Oils and Biofuels A. Process Flow Diagram 1. Production of Vegetable Oil The production of vegetable oil begins with raw material preparation. Oil-bearing seeds, nuts, or fruits are cleaned, dehulled, and prepared for extraction. These prepared materials are then pressed using an oil press machine, often a screw expeller, to extract the crude vegetable oil. The screw expeller pushes the material into the pressing chamber, allowing the oil to be extracted. The extracted crude oil is filtered to remove impurities and solid particles. After filtration, the crude oil undergoes a refining process. First, the oil goes through degumming, where hot water is added to remove phosphatides or "gums" that can cause cloudiness. The gums are hydrated and separated from the oil. Next, the oil is neutralized by adding sodium hydroxide (caustic soda) to neutralize free fatty acids, creating a soapstock byproduct that is separated. The oil then undergoes bleaching, where bleaching earth (clay) is added to absorb pigments like chlorophyll that affect color. The bleaching earth is then filtered out. Finally, the oil is deodorized by exposing it to high heat and steam in a vacuum to remove volatile compounds that cause odors. After cooling and finishing, the refined vegetable oil is packaged for distribution and sale. The leftover solid material from extraction, known as oil cake or meal, can be used as animal feed, fertilizer, or industrial fuel. Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering Figure 3.1. A process flow chart of the refining process of crude vegetable oil. 2. Production of Biofuels There are two main types of biofuel conversion processes: thermochemical and biological. The specific flow diagram will depend on the type of biofuel and the chosen conversion method. The sample picture depicts the production of ethanol. However, the generalized biofuel production process flow diagram will be discussed. 1. Feedstock Preparation This stage involves gathering the biomass material, like crops, algae, animal fats or waste, or used cooking oil. 2. Pretreatment This stage includes mechanical, chemical, or thermal processing to prepare biomass for conversion like crushing, grinding, and hydrolysis. 3. Conversion This stage is where the biomass is broken down into usable fuels. Here, the paths diverge based on the conversion method: Thermochemical conversion: Processes like gasification, pyrolysis, or liquefaction use high heat to convert biomass into gas, liquid bio-oil, or syngas. Another process is transesterification where the pretreated feedstock is mixed with methanol and a catalyst (typically potassium hydroxide or sodium hydroxide) in a reactor. This transesterification reaction converts the triglycerides in the feedstock into fatty acid methyl esters (biodiesel) and glycerol. Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering Biological conversion: Fermentation uses microorganisms to break down organic matter into fuels like ethanol or biogas (Duti et al., 2016). 4. Separation and Purification The production process may generate byproducts like glycerol (from biodiesel) or digestate (from biogas). In this stage the biodiesel and glycerol are separated. The biofuel may undergo purification steps to remove impurities and meet quality standards. Furthermore, ethanol may undergo distillation and dehydration; whereas, biodiesel may undergo washing and drying. Meanwhile, the byproducts can be treated and utilized for other purposes. 5. Byproduct Treatment Wastewater or solid waste generated during the process will require proper treatment and disposal 6. Storage & Distribution Biofuels are stored in tanks before distribution. Consequently, biofuels are transported to blending facilities, filling stations, or end-users (Ayoola et al., 2021). Figure 3.2. A process flow chart of the ethanol production (Konda et al., 2014) IV. Market Trends, Issues and Drivers A. Vegetable Oils 1. Market Trends - In the global market, vegetable oil is divided by product type and application. This division allows for better analysis of industry growth and provides valuable market Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering overviews and insights, aiding in strategic approaches for core market applications. - Following the onset of the COVID-19 pandemic, more people have become conscious of their health, leading to increased alertness regarding the food they consume. Since vegetable oil contains less animal fat, people are leaning towards using it for household cooking. For these reasons, manufacturers have been influenced to produce various types of products using vegetable oil. Global Vegetable Oil Market - According to Data Bridge Market Research, the vegetable oil market had a value of USD 241.4 billion in 2021. As shown in Table 4.1,it is projected to grow to USD 345.93 billion by 2029, with a compound annual growth rate (CAGR) of 4.60% during the forecast period from 2022 to 2029. - The Asia-Pacific region leads the vegetable oil market, due to greater accessibility for food and beverage manufacturers and significant research and advancements in the food industry. The consumption of vegetable oil per capita is increasing by 3.1 percent per year. In addition, India is considered the world's largest importer of vegetable oil. Figure 4.1. Global Vegetable Oil Market Philippines - According to Fortune Business Insights (2024), the market size of the Philippine vegetable oil industry was valued at $3.39 billion in 2022. It is expected to rise from $3.55 billion in 2023 to $5.07 billion by 2030, at a compound annual growth rate (CAGR) of 5.21%. - In addition, the demand for palm oil to manufacture processed foods, baked goods and such is increasing, making palm oil holds the largest segment of the Philippine vegetable oil market. In 2021, palm oil accounted for more Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering than 60% of the country's total volume of vegetable oils consumed due to its availability, low cost, and other properties. Given these factors, it is expected that vegetable oil will continue to dominate the market in the future. Figure 4.2. Philippines Edible Oils & Fats Market Size, 2019-2030 2. Issues The Philippines is known as one of the largest exporters of coconuts and coconut oil in the world. However, in recent years coconut oil domestic consumption has been declining. According to the Report Linker (n.d.) in "The Philippines Coconut Oil Industry Outlook 2022 - 2026," the demand for coconut oil is expected to decrease by an average value of 4.6% annually, reaching 87,000 metric tons by 2026. The trend that reflects the changing dynamics of the Philippine vegetable oil market are evident in a 5.5% decline since 2017. An example is the coconut oil industry, which has shifted to focus more on exports due to a decrease in domestic consumption. In addition, the consumers are shifting preferences to clean-label, non-GMO and organic vegetable oils. The sustainability concerns and the evolving application of vegetable oil becomes a key issue in the market trends in the vegetable oil industry. 3. Drivers Expansion of the food sector and product innovations- - The global expansion of the food industry is driving the demand for vegetable oils, as they are essential in a wide range of culinary applications. The development of healthier vegetable oils becomes the trend since the evolving consumer preferences for healthier and more sustainable products boost market growth. Sustainable approaches by the manufacturers and growing application from various industries - The consumer demand for sustainable and versatile products is one of the reasons why the vegetable oil market is constantly growing. They are being Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering utilized in a variety of applications, such as household goods and for personal care. B. Biofuels 1. Market Trends - In the global market, biofuels are divided by fuel type, form, and feedstock type. This division allows for better analysis of industry growth and provides valuable market overviews and insights, aiding in strategic approaches for core market applications. Global - Fossil fuels are non-renewable energy sources, and with growing awareness about curbing carbon emissions, the development and utilization of biofuels are increasing, which contributes to the growth of the global biofuel market. Additionally, there is a rising demand for environmentally friendly fuel in transportation, greater awareness about renewable resources, and a focus on controlling greenhouse gas emissions. - According to Data Bridge Market Research, the biofuel market was valued at USD 2,862.25 million in 2022 and is expected to rise to USD 4,917.88 million by 2030, with a compound annual growth rate (CAGR) of 7.0% during the forecast period, as shown in Table 4.3. - In the report, the countries covered in the biofuels market are “U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, rest of Asia-Pacific, Saudi Arabia, U.A.E, South Africa, Egypt, Israel, rest of Middle East and Africa, Brazil, Argentina, and rest of South America”. - In terms of dominance, North America ranks first in market share and revenue and is expected to maintain its dominance from 2022 to 2029. Meanwhile, the Asia-Pacific region is projected to experience profitable growth due to rapid economic development and continuous research and development. Figure 4.3. Global Biofuels Market Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering Philippines - According to Danessa Rivera (2023), in her report on The Philippine Star, the consumption of biofuel will continue to increase due to higher demand as stated in the report of the United States Department of Agriculture (USDA). In 2023, the ethanol demand grew by 8% to 693 million liters. While biodiesel demand has increased by 14 percent to 230 million liters. - Ethanol is made from biomass, and it mainly acts as a gasoline additive. In the Philippines there is a mandate of Biofuels Act of 2006 which states that all liquid fuels sold in the Philippines shall be blended with biofuels. Since 2012 the ethanol blend for gasoline has stayed at 10%. - The table 4.4 shows the total volume of ethanol fuel imported to the Philippines from 2016 to 2023, with forecasts for 2024 by Statista. As can be seen, the Philippines has a total of 246 million liters of ethanol fuel imported in 2023 and is expected to rise to 280 million liters in the following year (2024). Figure 4.4. Total Volume of Ethanol Fuel Imported to the Philippines from 2016 to 2023 with Forecasts for 2024 2. Issues Costs of Production and Competitiveness - The production of biofuels is expensive, costing twice as much as conventional fossil fuels, with only ethanol from sugarcane being cost-effective. Competitiveness also depends on crude oil prices and stable feedstock prices. Fuel vs. Food - The use of agricultural land for biofuel crops instead of food crops can elevate food prices, especially in developing countries. Environmental Challenges - If not done sustainably, biofuel production can lead to deforestation, biodiversity loss, and soil erosion. Additionally, the cultivation of biofuel crops often requires more fertilizers and pesticides, which harm the environment. Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering 3. Drivers The primary factors driving the biofuel market are the need for cleaner energy, favorable policies, and innovations. Biofuels are leading in environmentally friendly energy sources as they help reduce oil dependence and meet renewable targets for sustainability. Increased demand and the use of vegetable oils in biofuel production also support the expansion of both the vegetable oil and biofuel industries. V. Uses and Innovations and Researches within the Vegetable Oil and Biofuel Industry Uses of Vegetable Oil 1. Culinary Vegetable oils are derived from a variety of seeds, fruits, nuts, and grains. The most popular oils include olive, sunflower, palm, canola, coconut, safflower, corn, peanut, cottonseed, palm-kernel, and soybean, and they are all extensively used in a variety of cooking methods such as frying, producing spreads and dressings, and baking. In terms of frying, vegetable oil is an excellent choice because of its high smoke point, which allows it to withstand high temperatures without breaking down or creating hazardous compounds. This makes it ideal for frying, as it can withstand the searing heat of your frying pan. Furthermore, vegetable oil adds moisture to food, particularly baked items, which is significantly more reliable because oil remains liquid at room temperature whereas butter solidifies. Because liquid contributes to the impression of moistness, oil-based cakes are frequently more moist than butter-based cakes. 2. Chemical Processing Industries A. Biofuel Production a. Straight Vegetable Oil (SVO) This biofuel is utilized directly as fuel in some diesel engines with limited modifications. However, because vegetable oil is more viscous than standard diesel, it frequently requires preheating to reduce viscosity for optimal combustion. b. Via Transesterification Process The production of biodiesel involves reacting vegetable oil with an alcohol, often methanol, in the presence of a catalyst such as sodium or potassium hydroxide, resulting in the formation of biodiesel (methyl esters) as the primary product and glycerin as a byproduct of the transesterification process. c. Biodiesel Blends Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering Biodiesel produced from vegetable oil can be blended with petroleum diesel in various proportions. Common blends include B5 (5% biodiesel, 95% petroleum diesel), B20 (20% biodiesel), and up to B100 (100% biodiesel). B. Lubricants Although less common, some automotive lubricants and greases are formulated with vegetable oils.Vegetable oils are used as base fluids in environmentally friendly hydraulic systems, providing the necessary lubrication and pressure transfer. C. Paints and Coatings Vegetable oils such as linseed oil, tung oil, and soybean oil are commonly used as drying oils in paint and coating formulations. These oils contain polyunsaturated fatty acids that can polymerize upon exposure to oxygen, creating a tough, protective layer. D. Plasticizers Vegetable oil is utilized as a plasticizer because it is biodegradable, environmentally friendly, and nontoxic, making it a safer and more sustainable alternative to typical petroleum-based plasticizers. Its chemical structure, which includes long-chain fatty acids, interacts nicely with polymer chains, increasing flexibility and softness. Furthermore, vegetable oils are inexpensive, compatible with a wide variety of polymers, and have good thermal stability. These features increase the material's resilience and resistance to brittleness, making vegetable oil an excellent plasticizer for use in PVC products, biodegradable plastics, medical gadgets, and children's toys. E. Skin and Hair Care Products Vegetable oils are used in skin and hair care products because of their hydrating, nourishing, and protecting qualities. They are found in moisturizers, cleansers, conditioners, and treatments, and they provide a natural and effective way to keep the skin and hair healthy. Innovations and Researches in Vegetable Oil Production a. Manufacturing of environment friendly biolubricants from vegetable oils Commercially available palm oil and Jatropha oil are used to produce biolubricants through a two-step transesterification process: first, methanol is reacted with potassium hydroxide to produce biodiesel, and then the biodiesel is further reacted with trimethylolpropane using sodium methoxide as a catalyst to create palm oil or Jatropha oil-based trimethylolpropane esters, which are the final biolubricant products. b. Novel Epoxidized Vegetable Oil from Chia Seed Oil for Biodegradable Polymers and Plastics Production A novel epoxidized vegetable oil (EVO) has been developed from chia seed oil (CSO) with the aim of using it as a plasticizer and compatibilizer in various eco-friendly polymeric materials. This epoxidized chia seed oil (ECO) Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering can serve as a non-toxic, biodegradable substitute for phthalates, which are commonly used as plasticizers and stabilizers in PVC and other polymers. The use of ECO in polymer formulations can enhance their flexibility and thermal properties while promoting sustainability. c. Hydrotreated Vegetable Oil (HVO) as Biofuel HVO, or hydrotreated vegetable oil, is a fully renewable diesel fuel that meets the EN 15940 standards for paraffinic diesel fuels. For this application, the HVO is generated from waste and residues, which avoids competing with food or animal feed production, making it a sustainable alternative to conventional diesel. Uses of Biofuels 1. Heating and Power Generation A. Residential Heating Biofuels such as biodiesel and bio-oil can be used in heating systems to provide a renewable alternative to fossil fuels for home heating. B. Industrial Heating a. Biofuels are used in industrial boilers and furnaces to generate heat for manufacturing processes, reducing reliance on coal and natural gas. b. Biogas produced from organic waste through anaerobic digestion can be used as a fuel in boilers and furnaces for industrial heating. Biogas is primarily composed of methane and carbon dioxide and can replace natural gas or propane C. Electricity Generation Biofuels are burned in power plants to generate electricity, providing a renewable source of energy for the grid. i. Biodiesel or Bioethanol can be burned directly in boilers to produce steam, which is then used to drive turbines connected to generators. The rotation of turbines generates electricity, similar to the process in traditional fossil fuel power plants. 2. Transportation Biofuels such as biodiesel and ethanol are commonly used in cars, trucks, and buses as well as aviation and marine transport vehicles They can be used in pure form or blended with conventional fuels (e.g., E10, E85, B20, B100). On the other hand, bioethanol, typically made from crops like corn, sugarcane, or cellulosic biomass, is blended with gasoline to produce fuels such as E10 (10% ethanol, 90% gasoline) or E85 (up to 85% ethanol). 3. Chemical Industry Biofuels serve as feedstocks for producing bio-based chemicals and materials, such as bioplastics, solvents, and lubricants, offering sustainable alternatives to petroleum-derived products. A. Polylactic Acid (PLA) Bioethanol derived from crops like corn or sugarcane can be fermented and chemically processed to produce lactic acid, which is then Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering polymerized to form PLA, a biodegradable plastic used in packaging and consumer goods. B. Bioethylene and Bioethylene Glycol Ethanol obtained from biofuels can be used to produce bioethylene, a precursor for bio-based plastics and polymers. Bioethylene glycol is used in the manufacture of PET bottles. C. Glycerol A byproduct of biodiesel production, glycerol is used as a feedstock in the synthesis of solvents and surfactants. It can be chemically transformed into products like glycerol ethers, which are used as solvents in industrial applications. Innovations and Researches in Biofuel Production a. Novel Biofuel Cell Using Hydrogen Generation of Photosynthesis Developing a novel biofuel cell leveraging hydrogen generated from photosynthesis involves harnessing organisms like algae or cyanobacteria that naturally produce hydrogen as a byproduct. This approach integrates biological processes with electrochemical principles, utilizing enzymes like hydrogenases to catalyze hydrogen oxidation at the anode and oxygen evolution at the cathode. b. CO2 bio-mitigation using genetically modified algae and biofuel production The review highlights that biological CO2 sequestration, particularly through micro-algal systems, offers a promising method for capturing excess carbon and generating biomass for various applications. It explores the role of genetically modified algae in enhancing CO2 fixation and biofuel production, suggesting a potentially effective approach for carbon mitigation and sustainable energy generation. c. Microbial pathways for advanced biofuel production Mycodiesel is a form of biodiesel made from oils generated from fungus, notably those that may accumulate large amounts of lipids. This idea takes advantage of the capacity of certain fungi to generate oils that may be transformed into biodiesel via transesterification, similar to how biodiesel is conventionally produced from plant oils such as soybean or canola oil. Leading Innovations, Transforming Lives, Building the Nation  Republic of the Philippines BATANGAS STATE UNIVERSITY The National Engineering University Alangilan Campus Golden Country Homes, Alangilan Batangas City, Batangas, Philippines 4200 Tel Nos.: (+63 43) 425-0139 local 2121 / 2221 E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph College of Engineering - Department of Chemical Engineering References: Alarcon, R., Malagon-Romero, D., & Ladino, A. (2017). Biodiesel Production from Waste Frying Oil and Palm Oil Mixtures. Chemical Engineering Transactions, 57, 571–576. https://doi.org/10.3303/cet1757096 Altın, R., Çetinkaya, S., & Yücesu, H. S. (2001). The potential of using vegetable oil fuels as fuel for diesel engines. Energy Conversion and Management, 42(5), 529–538. https://doi.org/10.1016/s0196-8904(00)00080-7 Ayoola, A., Alagbe, E., Agboola, O., Ayeni, O., Adeyemi, G., Nnabuko, D., & Makinwa, T. (2021). 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