6th Oleochemicals Outlook,

05-06 Sep, 2018 - Bali, INDONESIA

Pullman Bali Legian Beach

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"Excel in the challenging world of Oleochemicals" 

Globally, fatty acid capacity has more than doubled between 2004 and 2016, to almost 1.3 m tons. The fatty acid market is now entering a period of consolidation. Can the fatty acid producers find new markets for their product? Which downstream markets merit investment for fatty acids? How quickly are these markets and applications growing? Where can oleo-chemical companies compete with chemical companies?

Unlike fatty acids, fatty alcohol capacity is set to rise, driven by rising synthetic production. Synthetic fatty alcohols will continue to take more market share, with utilization rates rising to 90% by 2020. This will have a negative impact on the utilization rates in the natural alcohol sector, forecasted to fall to 66% in 2019.

The European Parliament and EU member states have agreed to phase out palm oil from motor fuels by 2030, easing back from an initial deadline of 2021. This gives a breather to the palm oil producers in SE Asia, especially Malaysia and Indonesia, the biggest palm oil producers in the world. This extension will give the countries more time to improve palm oil’s production management as well as seek new markets! Could China and India be the alternative markets in time to come? 

Meanwhile, Indonesia’s Energy and Mineral Resources Ministry intends to increase and expand the country’s national biodiesel mandate in order to cut fossil fuel imports and boost the consumption of palm oil. It plans for biodiesel mandate to cover the train sector from May 2018 and the mining sector from July, according to Reuters report.

Brand owners from Unilever, Kao Corp, Colgate Palmolive,  L’Oreal and many more are leading the trend to purchase only sustainably sourced palm oil that is traceable to the plantation. While raising sustainability standards might pose an initial challenge for companies, the opportunities for improving brand impact, increasing transparency and changing consumer behavior are huge. Learn more about sustainable sourcing strategy, Methodologies and update on Kao’s traceability and supply chain risk management at 6th Oleochemicals Outlook conference on 5-6 Sept 2018 in Bali


Key Sessions include: 
  • Analysis of the Global economic outlook by Malaysian Rating Corporation
  • LMC International shares insights on “Can fatty acid producers find new markets for their product?”
  • Guangzhou Liby Enterprise Group discusses the future of detergents & new trends in China
  • Kao Corporation highlights their  sustainability statement and its scope, including the Methodologies and update on their traceability and supply chain risk management
  • Phillip Futures provide analysis of the Palm oil market outlook & trends, including the regulatory uncertainties in the EU/USA and its impact on palm oil demand
  • Indonesia Estate Crop Fund Agency shares sustainable oil palm strategy in Indonesia and APROBI discusses Indonesia biodiesel industry development & challenges
  • Market prospect of castor based oleochemicals & emerging applications by Royal Castor Products while JNJ Oleochemicals shares insights on the Philippines coconut industry & its downstream potential
  • Find out from Godrej Industries the performance of India’s promising oleochemicals & derivatives market
  • Felda Global Ventures (FGV) shed insights on the valorization of crude glycerol into epoxy propanol via a green pathway for the oleochemical industry
  • Learn from ThyssenKrupp Industrial Solutions the Modular delivery strategy for oleochemicals plants
  • Network with industry’s who’s who in the Oleo value chain
Register with your team today at www.cmtevents.com  to enjoy group discount! Contact grace@cmtsp.com.sg for more information.

Comments from 5th Oleochemicals Outlook, 23-24 Aug 2017, Yogyakarta

“Informative & insightful; definitely useful for anyone who wants to get up to speed with the inner workings of the oleochemicals market” - Golden Agri International

“Delegates are very cordial and interactive gathering. Professionally organized” - CavinKare

“The content is insightful for understanding the market” - PT Buana HIjau Abadi

“This is my first time attending the conference and I actually had a very good networking and knowledge for my company further strategy” - Pt Batara Elok

“A lot of information in a good atmosphere” - Buss Chemtech

“It was an informative conference” - Clariant

“Good networking event to meet associates and industrial players” - PT Socimas

Be a Sponsor or Exhibitor!

This event is an excellent platform to promote your organization to influential players and investors in the industry. Sponsorship opportunities available include Corporate, Exclusive luncheon & Cocktail sponsor.

Exhibition / catalogue display can be arranged upon request. Contact fiona@cmtsp.com.sg


News Feed

Indonesia to develop new 100% palm oil-based "green diesel"

Posted on : 03 Aug, 2018


Indonesia already uses a 20 percent biodiesel component blended with petroleum based diesel for land transportation, with the aim to raise the bio content to 30 percent in 2020.


Now the country is encouraging the development of a new 100 percent palm oil-based "green diesel" that can be used to replace petroleum-based diesel used in transportation.


A pilot project to produce the green diesel is underway at a biorefinery (owned by Elevance Renewable Sciences and Wilmar). The government has given them a corporate tax discount to develop full-scale output.


The new green diesel is made of hydrotreated vegetable oil and addresses the problems associated with the current bio portion of biodiesel (which is made with fatty acid methyl esters (FAME) from palm oil. Higher blends of FAME require special handling and equipment as the fuel has a solvent effect that can corrode engine seals and gasket materials, and it can solidify at cold temperatures.


The new green diesel is made completely from palm oil and has "the same specifications as petrol" and is compliant with the Euro IV emissions standard. Moreover, automakers do not have to worry about making modifications to engines and machinery to use the green diesel. The specifications of the green diesel are same as that of the B20 biodiesel.


With EU's plans to phase out the use of palm oil in transport fuels from 2030 owing to deforestation concerns, Indonesia has been looking at increasing domestic consumption of palm oil and the development of green diesel is to meet this target.


Although the new green diesel is said to be generating 90 percent fewer emissions than conventional fossil fuels, there are other studies that shows that among vegetable oils, palm and soybean oils generates the highest indirect greenhouse gas emissions because of deforestation and the drainage of peatlands associated with their cultivation.


This year, Indonesia is expected to consume about 3.3 million kilolitres of FAME, according to the Indonesia Estate Crop Fund while the Indonesia Biofuel Producers Association expects unblended biodiesel exports to reach 800,000 kilolitres this year.


Learn more about Indonesia Biodiesel Industry Development & Challenges from Mr. Paulus Tjakrawan, Vice Chairman of Indonesian Association of Biofuel Producers (APROBI) at CMT's 6th Oleochemicals Outlook on 5-6 September 2018 in Bali.


For more information, contact Ms. Grace at grace@cmtsp.com.sg or call +65 6346 9147.




Indonesia mulls to stop Palm Oil Exports to the EU, Looks at New Markets

Posted on : 11 Jun, 2018

In response to Europe’s proposed ban on use of biofuels made from palm oil by 2021, Indonesia is considering to stop trading palm oil to Europe altogether.
Indonesia has commissioned a study on stopping palm oil exports to the European Union – in order to eradicate the risks of export uncertainties once and for all. The study is expected to provide a report by end of this year.
Europe is Indonesia’s second largest palm oil export market, and Indonesia shipped its highest value of palm oil ever in 2017, contributing to the year’s $12 billion trade surplus. EU imports around 5 million tons of palm oil only for making Nutella each year.
The decision on whether the palm oil use ban will be imposed in all EU country members is expected to be made in 2019. If banned, it will be a huge trade blow for Indonesia and Malaysia – the two of the largest palm oil exporters to the EU.
Meanwhile, palm oil production has grown in Indonesia with land used for palm plantation rising from only 4 million hectares in 2000 to 11.9 million hectares in 2017 – as per data from the Central Statistics Agency (BPS). The numbers are expected to increase to 13 million hectares by 2020.
In addition, palm oil exports and its derivative products reached $23 billion, up 26 percent from $18 billion in the previous year. Indonesia is also exporting more palm oil to other regions – with export volume of palm oil to African countries jumping nearly 50 percent to 2.3 million tons in 2017 from 1.5 million, while exports to Middle Eastern countries increased by 7 percent to 2.1 million tons from 1.9 million, the report showed.
China is another big market for Indonesian and Malaysian palm oil, especially after the threats of declining edible oil supply following its trade wars with the US. China is looking elsewhere and plans to increase palm oil imports from Indonesia by up to 500,000 tons per year. Already in 2017, China bought 3.73 million tons of Indonesian CPO compared to 3.23 million tons in 2016.
How will palm oil production and exports shape the biofuels and oleochemicals market? Learn more at CMT’s 6th Oleochemicals Outlook on 5-6 September 2018 in Bali.
For more information, contact Ms. Grace at grace@cmtsp.com.sg or call +65 6346 9147.

Indonesia looks at domestic market to absorb its biodiesel output

Posted on : 11 Jun, 2018

As the European Union plans to limit use of biodiesel fuel for transportation, Indonesia, the world’s largest palm oil producer, plans to expand biodiesel consumption in its domestic market.
Motorized vehicles in Indonesia are already mandated to use biodiesel. In a new development, the country’s Energy and Mineral Resources Ministry plans to now expand the use of biodiesel to 3.5 million kiloliters annually. For this it plans to encourage the country’s mining sector and state-owned railway operator KAI to start using biodiesel.
Once implemented, the mining sector is anticipated to guzzle as much as 90 percent of about 400,000 kiloliters of additional biodiesel use while KAI’s locomotives will consume the remaining 10 percent of the biodiesel. The biodiesel used in the mining industry is expected to be fuelling heavy equipment on mining sites. The government is already in talks with mining companies to implement the conversion to biodiesel.
The government is also conducting tests on the use of B5 or biodiesel 5 percent for train locomotives.
Train locomotives will be using B5 while the heavy equipment in mining will use B10 or 10 percent biodiesel.
Learn more about biodiesel markets and applications at CMT’s 6th Oleochemicals Outlook on 5-6 September 2018 in Bali.
For more information, contact Ms. Grace at grace@cmtsp.com.sg or call +65 6346 9147.

KLK Oleo Starts new Reactor Specialty Ester Plant, R&D Centre in Selangor, Malaysia

Posted on : 10 May, 2018

Leading global oleochemical producer KLK Oleo – has started its fourth Reactor Specialty Ester Plant (EP4), plus research and development (R&D) centre in Klang, Selangor in Malaysia.

There is an increasing demand for specialty esters driving more investments in production as well as research and development. The newly commissioned plant will be producing ingredients for cosmetics and bio-lubricants.

The new R&D centre in Malaysia will serve as KLK Oleo's international research, development and technology arm to service and support its global oleochemical business. The R&D centre will specialise in organic synthesis, advanced analytical support, and creating high-value applications for oleochemical derivatives. Being a centralised R&D centre, it will be able to bring cutting-edge technology and innovation in the development of oleo-based products and solutions.

KLK Oleo's downstream journey began in 1991 with a fatty acid and glycerin plant in Rawang with a production of 45,000 tonnes per year before expanding to the current 3 million tonnes capacity worldwide with presence in Malaysia, China, Indonesia and Europe.

More about oleochemical market in Asia at CMT’s 6th Oleochemicals Outlook on 5-6 September 2018 in Bali.

For more information, contact Ms. Grace at grace@cmtsp.com.sg or call +65 6346 9147.