Illovo Sugar - Downstream Products

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Description of Downstream Products

Downstream production is a core activity of Illovo Sugar, fulfilling the group's strategic intent to optimise the return on every stick of cane by adding value to its core commodity products - fibre, sugar and molasses. The group is a material player in most of the world markets in which it participates, and exports furfural, furfuryl alcohol, diacetyl, 2.3-pentanedione, ethyl alcohol and lactulose to 81 countries. In addition, BioMass Sugar, a liquid organic fertiliser derived from sugar cane is being sold to a growing number of international markets. During the year under review, downstream product sales contributed R638.6 million to group revenue.

In the financial year to 31 March 2009, downstream production contributed R639 million to total revenue and 12% to total operating profit of R1 386 million. The majority of earnings from downstream production are US$-based.

Sezela Downstream plant

Product Produced	Process	Uses
1. Furfural	Formed by hydrolosis (water treatment) of pentosans (found in bagasse, a by-product from the sugar milling process) under specific conditions of temperature and pressure.	Furfural is mainly used in lube oil refineries for the purification of oils - as a selective extractive solvent in the lubricating oil sector of the petroleum industry. (For example, the removal from lubricating oils of unwanted compounds such as ring compounds with acidic properties). It is also used to a lesser extent in the polymer industries for specialist applications such as grinding wheels, as well as in brake pads (friction pellets made from furfural are a key component of all brake pads) and crucible manufacture, and to a small extent in the pharmaceutical industry. It is also used as a flavour ingredient in food flavouring.
2. Furfuryl Alcohol	Produced from furfural via a catalytic hydrogenation process.	Is mainly used to produce a resin used in the foundry industry as a polymeric binder for foundry sands. This mixture is then used to form moulds or cores for metal casting purposes. It is also used to produce acid resistant coatings and as a flavour ingredient in food flavouring.
3. Crop Guard® Developed and marketed by Illovo’s “Agriguard” business as an agricultural chemical under the trade names Crop Guard® in South Africa and MultiGuard Protect in the USA.	Is a uniquely formulated emulsifiable concentrate with furfural as the active ingredient.	Used an agricultural nematicide.
4. BioMass Sugar	Derived from sugar cane.	Used as a liquid organic fertiliser.
5. Diacetyl	Produced as a by-product of the manufacture of furfural.	Used as a butter flavouring in the manufacture of products such as margarine.
6. 2,3-Pentanedione	Produced as a by-product of the manufacture of furfural.	Used as a butter flavour and as an intermediate in the manufacture of pyrazines (another flavour).

Merebank Downstream plant

Product Produced

Process

Uses

7. Ethyl alcohol*
Potable grade - 96.4%
Absolute Alcohol - 99.9%
Rectified Spirit - 96.4%

Ethyl alcohol is produced through the fermentation of molasses, producing a “beer foam” which is then distilled to make the final product. (Molasses is a by-product of the sugar manufacturing process.)

Potable (drinking) alcohol -
Applications

High quality potable alcohols used by liquor industries for the production of branded alcoholic drinks (canes, vodkas, gins, rum, liqueurs and aperitifs.).

Absolute alcohol - Applications:

Pharmaceutical industry – pharmaceutical intermediaries and products – for example, in cough mixtures, alcohol is used to dissolve ingredients not able to be dissolved by water. Also used in surgical spirits, medical disinfectants, etc.

Cosmetic industry - cosmetics, personal care products, toiletries, fragrances and perfumes.

Food industry: Spirit vinegar is used in various pickling processes and in the production of condiments, e.g. tomato sauce, chutney, mayonnaise and salad dressings.

Also used in the production of printing inks.

Rectified spirit –
Applications:
Also has pharmaceutical applications but used mainly in the production of solvents and thinners (methylated spirits, etc).

Carbon dioxide is a by-product of the alcohol production process. Carbon dioxide is generally known to produce the “fizz” in carbonated drinks. However, CO2 captured at Merebank (outsourced to a private company) is used for semi-industrial applications such as use in fire extinguishers, etc.

8. Lactulose

Lactulose is manufactured by the isomerisation of lactose using no other solvent than water

Mild, natural laxative

* - Ethyl alcohol is also produced at the Glendale Distillery on the North Coast of KwaZulu-Natal

Furfural

Title	Size
Technical Data Sheet	33.75 KB	Download
Safety Data Sheet	153.81 KB	Download

Furfuryl Alcohol

Title	Size
Safety Data Sheet	146.77 KB	Download
Technical Data Sheet	33.62 KB	Download

Diacetyl

Title	Size
Technical Data Sheet	32.02 KB	Download
Safety Data Sheet	159.44 KB	Download

2,3- Pentanedione

Title	Size
Safety Data Sheet	129.54 KB	Download
Technical Data Sheet	32.60 KB	Download

Ethyl alcohol

Title	Size
Safety Data Sheet	32.32 KB	Download