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production of wax esters in crambe

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• Vegetable oil has very good lubrication properties but needs improvement to<br />

be considered for bulk market lubricants.<br />

• Wax <strong>esters</strong> is a target oil that <strong>in</strong> itself can function as an excellent lubricant<br />

for many applications but also function as an additive <strong>in</strong> vegetable-base oils<br />

and improve their stability.<br />

• The current price and availability <strong>of</strong> <strong>wax</strong> <strong>esters</strong> make them unsuitable for<br />

widespread use for the lubricant market.<br />

• To make <strong>wax</strong> ester available <strong>in</strong> the volume required and at an acceptable<br />

price this report has considered <strong>production</strong> <strong>of</strong> this target oil <strong>in</strong> the crop<br />

Crambe.<br />

• The <strong>production</strong> <strong>of</strong> plant-derived <strong>wax</strong> <strong>esters</strong> <strong>in</strong> Europe will necessitate the use<br />

<strong>of</strong> a genetically modified crop.<br />

• As stated above the importance <strong>of</strong> us<strong>in</strong>g a non-food oil crop for the feedstock<br />

<strong>production</strong> disqualifies e.g. rapeseed, even though it is a higher yield<strong>in</strong>g crop<br />

compared to Crambe.<br />

• The calculations take no account <strong>of</strong> either the cost <strong>of</strong> develop<strong>in</strong>g a GM<br />

variety or the regulatory cost associated with approval <strong>of</strong> the GM variety.<br />

Neither does the calculation <strong>in</strong>clude a set-aside payment (subsidy) for<br />

Crambe.<br />

The <strong>production</strong> costs calculated for Crambe crude oil are based on 2005 German<br />

prices and the real output <strong>of</strong> a 1996 through 1999 test study (Troegel, 2000) <strong>of</strong> non-<br />

GM Crambe grown <strong>in</strong> different parts <strong>of</strong> Germany. It assumes that the yield <strong>of</strong> oil for<br />

a GM Crambe will be the same as for the non-GM Crambe. The case <strong>in</strong>cludes three<br />

different harvest scenarios and the use <strong>of</strong> two differently sized <strong>production</strong> facilities<br />

i.e. oilseed crush<strong>in</strong>g plants, one small with a conversion capacity <strong>of</strong> 30,000 t/year<br />

and one larger at 100,000 t/year. The <strong>production</strong> facilities are assumed to be<br />

situated <strong>in</strong> the centre <strong>of</strong> the Crambe cultivation area. Depreciation time has been set<br />

to 20 years and the <strong>in</strong>terest rates are assumed to be 6% 1 .<br />

Be<strong>in</strong>g a crucifer, Crambe is grown <strong>in</strong> a four-year crop rotation scheme. For an<br />

arable area <strong>of</strong> 1,000 ha this means that a maximum <strong>of</strong> 250 ha will be available each<br />

1<br />

Today’s call money rate <strong>in</strong> Germany (Oct 2006)<br />

28

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