March 25, 2011 [Port of Rotterdam] - The Noble Group, which owns a 50% share in the Botlek Tank Terminal currently under construction, recently purchased two Brazilian sugar factories in the state of Sao Paulo.
Together with two neighbouring plants, the company can produce 600,000 m3 of ethanol a year. This is in addition to over 1.3 million tonnes of sugar and 750,000 megawatt hours of electricity for the grid system. This requires 17.5 million tonnes of sugar cane. The expanded cluster is providing significant advantages of scale in production and fits into the strategy of supply chain integration as well as the tank terminals of Noble in a/o Rotterdam and Brazil do.
Giant integrates
The Rotterdam terminal is a logical but not exclusive destination for the ethanol. The Noble Group is integrating various links in the chain. It is, for example, the largest Asiatic trader in raw materials, also with interests in pressing plants for grains, coal and iron ore mines, tank terminals, sugar and ethanol plants, ships and (port) infrastructure. In 2010, the group achieved turnover of $56 billion.
German market grows
European demand for ethanol is growing steadily due to the increasing compulsory blend-in percentages. In Germany, the biggest fuel market in Europe, the petrol variant E10 (10% ethanol) will be available everywhere at the end of February/beginning of March. As a result, a minimum energy value of 6.25% biofuels will be achieved. Bioethanol is crucial here, because the percentage of biodiesel is limited to 7% of the total volume of biofuels. Germany is following the EU directive, which stipulates that road transport must use 10% renewable energy in 2020. Germany wants to have reduced carbon emissions by 80% in 2050.
Ninety percent of German cars can run on E10. For the other vehicles, the E5 mix will remain available until 2013.
Shortages on world market
According to a study by Hart Energy Consulting, the world market for biofuels will grow by 133% until 2020. By this time, they predict a production deficit of around 32 million m3. The shortage will be greater for bioethanol than for biodiesel. The agency bases its findings on research carried out for 35 countries in four global key regions. Demand for ethanol is growing strongest in Brazil and the United States, followed by China, Japan, the United Kingdom and Germany. Increased demand for biodiesel is found mainly in Brazil, India, Spain, Argentina, Indonesia, Germany and the United Kingdom.
Rotterdam hub
In virtually all of these countries, but also in Africa, the production capacity is being expanded, often strongly. This process seldom runs completely parallel, in technical terms, with the changes in national and regional demand. Government intervention also contributes to temporary shortages and, even more so, surpluses. The world market seeks a balance through maritime transport via regional hubs with lots of liner services (‘parcel tankers’), jetty capacity for large point to point charter vessels and a lot of, also independent, tank capacity. Rotterdam amply meets these requirements and will increase the facilities even further via the Botlek Tank Terminal, but also other players such as Vopak, ETT, Caldic and Rubis.
Source: Noble Groups and markets: Oils & Fats International, February 2011
