Tall Oil Production By Pine, Spruce, and Birch Tree

This report entails a detailed cost evaluation of tall oil production by pine, birch, or spruce trees. Tall oil is an organic oil variety produced by processing the wood of pine, spruce, or birch trees through a kraft pulping process. It leads to the formation of a resinous substance that reacts with the chemicals used for treating the wood pulp, i.e., black liquor (including lignin, hemicellulose, etc.), and produces calcium soap as an intermediate. It is then separated from the pulping mixture, washed, and treated with a strong acid (such as sulfuric acid) to produce tall oil at the end.

Top Producers of Tall Oil

• Kraton Corporation
• Metsa
• Torgoviy Dom Lesokhimik
• Citec Group Oy Ab
• Eastman

Feedstocks for Tall Oil

Tall oil is produced from birch, pine, or spruce trees that are used as the major feedstock. The procurement of tall oil is influenced by several prominent factors. Some of the factors include the availability of its primary feedstock (including pine and spruce trees, etc.) in specific regions (including North America and Scandinavia), harvesting period and cost (for the woods from spruce, pine, or birch trees), stability in its supply chain, stability in its market prices, and logistics directly govern its procurement process. Moreover, other factors, including the demand for tall oil in the chemical industry (for detergents, adhesives, sealants, coating, and dyestuff materials), transportation and trading activities, as well as financial and governmental policies, have a significant impact on its procurement across the globe.

The project economic analysis provided in the report discusses a Germany-based plant:

• Manufacturing Process
  • Process Flow
  • Material Flow
  • Material Balance
• Raw Material and Product's Specifications
  • Raw Material Consumption
  • Product and Co-Product Generation
  • Capital Investment
• Land and Site Cost
  • Offsites/Civil Works
  • Equipment Cost
  • Auxiliary Equipment Cost
  • Contingency
  • Engineering and Consulting Charges
  • Working Capital
• Variable Cost
  • Raw Material
  • Utilities
• Fixed Cost
  • Labor Requirement & Wages
  • Overhead Expenses
  • Maintenance Charges
• Financing Costs
  • Interest on Working Capital
  • Interest on Loans
• Depreciation Charges
• General Sales and Admin Costs
• Production Cost Summary