WE WILL SERVE TURKEY WITH A CAPACITY IF 50 THOUSAND TONS
Oktay Öztürk/Kocaeli
Could you give brief information about the capacity and importance of the facility?
Our facility has the capability to process crude oils with a capacity of 50 thousand tons and turn them into biodiesel with advanced technology and full automation. While we were building this facility, our aim was to implement an environmentally friendly project. I think we have achieved this goal. With our project, we will both meet the demand for biodiesel and provide high-quality service to the petroleum industry. At this point, we will carry out an activity to evaluate a product that is more environmentally friendly than diesel, but also environmentally friendly by recycling plant oils in the raw material. In addition to the biodiesel production that will meet the product specifications in accordance with the quality standards, we will also obtain 99,8 percent pure glycerine as a by-product from this facility. With this glycerine, we will obtain a product that will be used in the cosmetics and pharmaceutical industries. When we put our entire facility into good use, we realized a very environmentally sensitive project with input-output material. Another feature of our facility is that it is located in the right place as a region. Our facility is in an area close to both raw materials and our customers.
“We worked day and night with our experience in the sector”
How was the facility built in a short time like 1 year?
We started this project in November 2013. At the beginning of our project, we evaluated our investment in three stages. First of all, we carried out pre-feasibility studies such as how much capacity, where, and with what budget the project should be built. After that, we determined this place as the place. The Kocaeli Kartepe region we found is at a point where it is rich in raw materials and provides for many regions. After we determined the location of our project, we started the engineering work. We carried out the engineering work of our project together with the Italians for 3 months. When we started the project, we started with 5 people, now 20 people are working here. We carefully selected each employee and paid great attention to the fact that they were from the sector. Our investor supported us in every way and did not compromise on anything. Otherwise, this project would not have been completed in such a short time.
In this project, we demonstrated our technical know-how and made the right project. With the dedication of our financial resources, we worked day and night with our experience in the oil sector. Apart from these, we had permit processes for our facility. Since our facility is an incentive investment, it received incentives from the Ministry of Economy. Since our capacity is high, we got an EIA permit within a period of 5 months.
Where are we when we compare Türkiye with Europe in terms of biodiesel production and regulations?
When we compare Türkiye with Europe, we are far behind in terms of production and usage. In many countries in Europe, there is a mandatory application of up to 5,75%. In addition, biodiesel production from waste oils has exceeded the annual figure of 400 thousand tons in many countries such as Belgium, Italy, Germany, France, Japan, and the USA. The requirements in Europe are applied purely for environmental purposes. Countries, where there is no agricultural obligation, produce biodiesel by bringing oil from different parts of the world.
In the USA, the rate of biodiesel can reach up to 20 percent on a state basis. 100% biodiesel is sold in Germany.
The starting point of biodiesel in Türkiye was actually for environmental purposes. In fact, it started with a 2 percent requirement as a blending ratio in Türkiye. Later, this rate was reduced and later canceled. When we look at the situation in terms of legislation, there is only incentive in Türkiye. In Europe, it is mandatory. Since there is neither a manufacturer nor an obligation in Türkiye, companies enter this business voluntarily. In fact, we will exist with the formation of the market. In fact, the fact that it is a necessity in the sector makes this work a little more disciplined.
“Biodiesel should be mandatory”
What should be done for the dissemination of biodiesel studies in Türkiye?
There is currently a 2 percent incentive in Türkiye, but this rate is around 20 percent in the world, and there are even 100 percent usage rates in many countries. In order for biodiesel to become widespread, the legislation must first be changed and expanded. Standards need to be implemented and incentive rates need to be reviewed. The incentive rate should be higher for recycling products obtained from waste plantal oils. There is a waste of oil waste in Türkiye. At this point, wastage should be avoided. Waste oil awareness should be increased at the community level. This is possible with the support of the state.
“We will operate the facility at the maximum level”
What kind of regulations do you want from the competent authorities on biodiesel?
Companies that can do this work should be authorized. There is a very serious effort and investment in this facility of ours. This product can only be produced from such a disciplined facility. Authorities know this. At this point, controls need to be increased. Biodiesel should be mandatory. Of course, with this necessity, many investors will want to enter this business. At this stage, I think that it is necessary to pay attention to the fact that there are companies that are capable of producing high-quality products. For this reason, it is necessary to bring the standard within the scope of the National marker.
How is your facility received in the industry? What are your sales forecasts as a result of your interviews?
Our facility is very well received in the industry. We are in talks with almost all big companies, we get tender offers. Our customers, whom we interviewed, said, "It is very pleasing for us to have a second facility". There will be a competitive environment with our facility, which is a positive development for the industry. At this point, we will never compromise on our quality and operation. We look at this business as a fuel production facility. Since our team has experience in the fuel sector, we have a grasp of very fine details, which makes us advantageous in the sector. I think this advantageous situation will reflect positively on our sales. In terms of sales, we have two separate plans for the Turkish market and abroad. First, we will focus on the Turkish market. Our capacity of 50 thousand tons comes up to a monthly production of 4 thousand 500 tons. We have to run this facility constantly. That's why we're going to run this facility to its maximum from the start.