Glycerine Market and Downstream Applications of GlycerineRapolo HutabaratChairman

Yogyakarta, 24 March 2022

HEADLINE

APOLIN MILESTONES01

OLEOCHEMICAL EXPORT03

EXPORT DESTINATION04

USERS INDUSTRY05

OLEOCHEMICAL CAPACITY02

BASIS OF GLYCERINE APPLICATIONS06

GLYCERINE MARKET07

01. APOLIN Milestones

2010 2013 2015 2017 2019

PT. Cisadane Raya ChemicalsPT. Ecogreen OleochemicalsPT. Musim MasPT. Soci MasPT. Sumi AsihPT. Nubika Jaya

6 members

1995

PT. Cisadane Raya ChemicalsPT. Ecogreen OleochemicalsPT. Flora Sawita ChemindoPT. Musim MasPT. Soci MasPT. Sumi Asih

Established - 6 members

PT. Cisadane Raya ChemicalsPT. Ecogreen OleochemicalsPT. Musim MasPT. Soci MasPT. Sumi AsihPT. Nubika JayaPT. Wilmar Nabati Indonesia

7 members

PT. Cisadane Raya ChemicalsPT. Ecogreen OleochemicalsPT. Musim MasPT. Soci MasPT. Sumi AsihPT. Nubika JayaPT. Wilmar Nabati IndonesiaPT. Unilever Oleochemical Indonesia

8 members

PT. Cisadane Raya ChemicalsPT. Ecogreen OleochemicalsPT. Musim MasPT. Soci MasPT. Sumi AsihPT. Nubika JayaPT. Wilmar Nabati IndonesiaPT. Unilever Oleochemical IndonesiaPT. Energi Sejahtera Mas

9 members

PT. Cisadane Raya ChemicalsPT. Ecogreen OleochemicalsPT. Musim MasPT. Soci MasPT. Sumi AsihPT. Nubika JayaPT. Wilmar Nabati IndonesiaPT. Unilever Oleochemical IndonesiaPT. Energi Sejahtera MasPT. Apical Kao ChemicalsPT. Domas Agrointi Prima

11 members

2022

12 members

PT. Cisadane Raya ChemicalsPT. Ecogreen OleochemicalsPT. Musim MasPT. Soci MasPT. Sumi AsihPT. Nubika JayaPT. Wilmar Nabati IndonesiaPT. Unilever Oleochemical IndonesiaPT. Energi Sejahtera MasPT. Apical Kao ChemicalsPT. Domas Agrointi PrimaPT. Energi Oleo Persada

02. OLEOCHEMICAL Capacity

2016 2017 2018 2019 2020 2021

19 Company 19 Company 20 Company 21 Company 21 Company 22 Company

Fatty Acid 4.376.000 4.476.000 4.476.000 4.551.600 4.551.600 4.607.600

Fatty Alcohol 1.960.000 2.120.000 2.120.000 2.120.000 2.120.000 2.120.000

Glycerine 863.700 883.700 883.700 883.700 883.700 890.200

Methyl Ester 1.933.000 1.933.000 1.933.000 1.933.000 1.933.000 1.933.000

Soap Noodle 1.838.000 1.838.000 1.838.000 1.838.000 1.838.000 1.838.000

TOTAL INDONESIA 10.970.700 11.250.700 11.250.700 11.326.300 11.326.300 11.388.800

PRODUCT

03. OLEOCHEMICAL Export

2022Estimate

4,708 Million Tonnes

3.27

3.77

4.20

0.32

$2.10

$2.64

$4.42

$0.45

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

2019 2020 2021 2022

OLEOCHEMICAL EXPORT

WEIGHT (Million Tonnes) Value (USD Billion)

175 215

254

448

$241

$328 $292

$317

-

100

200

300

400

500

Jan-19 Jan-20 Jan-21 Jan-22

YoY

WEIGHT (Thousand Tonnes) Value (USD Million)

$239

$288

$563

484

581

662

$-

$100

$200

$300

$400

$500

$600

$700

2019 2020 2021

GLYCERINE EXPORT

Value (USD Million) Weight (Thousand Tonnes)

03. OLEOCHEMICAL Export

04. EXPORT Destination

0.22

1.33

0.40

0.210.13

0.72

0.240.23

1.37

0.55

0.27

0.15

0.89

0.280.29

1.60

0.59

0.27

0.15

1.01

0.26

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Africa China EU India Middle East Other USA

- Weight (Million Tonnes) -

OLEOCHEMICAL

2019 2020 2021

04. EXPORT Destination

$0.12

$0.68

$0.32

$0.17 $0.08

$0.50

$0.21 $0.14

$0.80

$0.43

$0.21 $0.11

$0.68

$0.25 $0.22

$1.51

$0.71

$0.31

$0.15

$1.14

$0.35

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

Africa China EU India Middle East Other USA

- Value (USD Billion) -

OLEOCHEMICAL

2019 2020 2021

04. EXPORT Destination

298

151

79

3052

3512

246

123

4831

5634

15

187

117

5239 36 26 19

China Other USA MiddleEast

EU India Africa

GLYCERINE - Weight (Thousand Tonnes) -

2021 2020 2019

$249

$133

$73

$23 $33 $36

$10

$110

$68

$29 $16

$27 $16

$8

$86

$63

$28 $20 $15 $13 $10

China Other USA MiddleEast

EU India Africa

GLYCERINE- Value (USD Million) -

2021 2020 2019

Detergent & Cleaner

52%

Antioxidant12%

Flavour & fragerance

8%

Food4%

Petroleum4%

Softener4%

Agricultural3%

Textil2%

Emulsifier2%

Etc.9%

Percentage

05. USERS Industry

12

Foods

◼ Solvent for preparation of concentrated flavor extracts from

natural products

◼ Texture improver and emulsifier in ice-cream

◼ Conditioner for wine gums, fondants, soft creams

◼ Emulsifiers in bread production (glycerol esters of acetic and

tartaric acids)

Cosmetics

◼ Emulsifier, moisturizer, and conditioning agent

◼ Creams, lotions, tooth pastes and dental mouthwashes, and

skin & hair care products

06. BASIS OF GLYCERINE Applications

13

Pharmaceuticals ◼ Cough syrup, expectorant, ointments

◼ Mild laxative in suppositories

◼ Softener in gelatin capsules

◼ Glycerol trinitrate → treatment for heart disease

Plastics, resins,

and cellophane

◼ Production of phthalic and maleic alkyd resins

◼ Moisturizer and plasticizer in cellulose films

◼ Polyether polyols of glycerol are polymerized

with diisocyanates to form flexible or rigid

polyurethane foams

06. BASIS OF GLYCERINE Applications

14

Tobacco ◼ Solvent, humidifier, and plasticizer in

tobacco

◼ Glycerol triacetate (triacetin) →

softener for cigarette filters

Others ◼ Hydraulic fluid formulations

◼ Inks and printing colors → to prolong

the self-life

◼ Humidifier, plasticizer, and lubricant

in paper industry

06. BASIS OF GLYCERINE Applications

15

Propylene

glycol

◼ Traditionally produced by propylene oxide

hydration

◼ Has similar properties with EG, but less toxic

◼ Colorless, odorless, tasteless

◼ Has humectant properties → moisturizer in

medicines, cosmetics, toothpastes, foods, and

tobacco products

◼ Has antibacterial properties → hand sanitizers,

antibacterial lotions, etc

Epichlorohydrin ◼ Traditionally synthesized from epoxidation of

allyl chloride

◼ As building block in the manufacture of epoxy

resins, elastomers, and synthetic glycerol

Glycerin’s Future Application

06. BASIS OF GLYCERINE Applications

16

Acrolein ◼ Lab scale → reaction of potassium bisulfate with

glycerin, dehydration of glycerin at 280 oC

◼ Preparation of acrylic acid, polyester resin,

polyurethane, propylene glycol, acrylonitrile

Renewable fuel & H2

production

◼ Renewable fuel → by cracking process to hydrocarbon

◼ Hydrogen → by reforming process

Eicosapentaenoic

acid (EPA); omega-3

fatty acid

◼ Common source: fish oil, microalgae, human breast

milk

◼ Can be synthesized from crude glycerin by enzymatic

process using Pythium irregulare (new research at

Virginia Polytechnic Institute)

Glycerin’s Future Application

06. BASIS OF GLYCERINE Applications

17

Glycerine Applications

15%

3%

9%

11%

12%

13%

37%

Others

Explosive

Tobacco

Polyurethanes

Food

Alkyd resin

Soap, cosmetic, pharm.

Source: The Changing World of Oleochemicals, Wolfgang Rupilius and Salmiah Ahmad

06. BASIS OF GLYCERINE Applications

Usage Percentage

44.7

5.6

3.23.6

4.2

0

1

2

3

4

5

6

2016-2017 2019-2020 2022-2023

GLYCERINE MARKET

SUPPLY CONSUMPTION

07. GLYCERINE Market

2021 reach U$ 3,2 Billion

2030 projected US 7,2 Billion

a. Supply and Consumption (Million Ton)

b. Market Value

Thank You