frost & sullivan finds huge potential for lignin as future renewable resource

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growing biodiesel sector threatens the availability of basic raw materials such as beef tallow for the manufacture of cleaning products (p 2). It petitioned the EPA to restrict the use of animal fats for biodiesel manufacturing but its pleas appear to have fallen on deaf ears, at least as far as 2013 quotas are concerned. In Europe, similar issues around biofuels are currently under debate by the European Commission. Caroline Edser RAW MATERIALS Linear alkylbenzene Egypt LAB to expand capacity Egyptian linear alkylbenzene (LAB) maker Egypt LAB Co intends to lift its LAB capacity in Alexandria, Egypt by 40% to 140,000 tonnes/y by end 2014. The firm has chosen to use UOP’s solid-state catalyst process for the expanded capacity. The company closed its existing 100,000 tonne/y LAB facility for maintenance in mid- Dec 2012 with the intention of reopening the unit on 1 Jan 2013. Original Source: ICIS Chemical Business, 17 Dec 2012, (Website: http://icischemicalbusiness.com) © Reed Business Information Limited 2012 Oleochemicals European oleochemicals market to hit $4.5 bn by 2018 The European oleochemicals market earned revenues of $3.9 bn in 2011 and is projected to top $4.5 bn by 2018, corresponding to a CAGR of 1.9% (2011-2018), according to a report by Frost & Sullivan, Analysis of the European Oleochemicals Market. Oleochemicals and their derivatives have gained significance because of their functional efficiency, performance, sustainability and biodegradability, the report says. Oleochemicals are helping consumer product manufacturers adhere to REACH regulations and reduce their carbon footprint. The naturally sourced chemicals also ensure a higher degree of product safety. As a result, they are being increasingly preferred over petrochemicals for use in products such as cosmetics and detergents. Their benefits are also underlining their appeal to an expanding application base ranging from plastics and personal care to soaps and detergents, food, pharma- ceuticals, coatings and rubber. Overcapacity and fluctuating prices of common raw materials (eg tallow, soybean oil, palm and palm kernel oil, coconut oil, and rapeseed oil), used in the manufacture of oleochemicals, are the two major challenges constraining market growth. Original Source: Frost & Sullivan, 2012. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 3 Dec 2012, (Website: http://www.specialchem4cosmetics.com) Oleochemical industry fears loss of key raw material to biodiesel Trade association American Cleaning Institute (ACI) blames the steady growth of the biodiesel industry in the past decade for curtailing supplies and raising the prices of animal fats such as beef tallow used as a source of fatty acids and fatty alcohols to produce cleaning and personal care products. However, federal policies including tax credits and guaranteed markets under the Renewable Fuel Standard have caused the diversion of animal fats to biofuel production. The Environmental Protection Agency (EPA) estimates that roughly 270-280 M gallons of the 1.28 bn gallon biodiesel requirement in 2013 will be produced using recycled cooking oil and animal fats. ACI called on the EPA to restrict the use of animal fats for biodiesel manufacturing. However, the EPA says in its final decision on the 2013 biodiesel requirement that it cannot prevent raw materials that meet the statutory definition of renewable biomass from being utilized in renewable fuel production. Original Source: Chemical and Engineering News, 19 Nov 2012, 90 (47), 32-34 (Website: http://www.cen- online.org) © American Chemical Society 2012 Alkoxylates/other New PO projects for Huntsman/Sinopec & Shell/SABIC but Evonik jv scrapped Huntsman Corp has entered into a joint venture (jv) agreement with Sinopec Jinling Co, a subsidiary of Sinopec. The jv, Nanjing Jinling Huntsman New Materials Co Ltd, will build and operate a world-scale propylene oxide (PO) and methyl tertiary butyl ether (MTBE) facility in Nanjing, China. The facility is expected to be completed by the end of 2014 and will utilize Huntsman’s proprietary PO/MTBE manufacturing technology. Huntsman will own 49% of the jv. The facility will produce 550 M pounds/y (250,000 tonnes/y) of PO and 1.6 bn pounds of MTBE at a capital cost of about $750 M. Elsewhere, Shell and SABIC are to establish a PO plant at the companies’ existing Saudi Petrochemical jv in Jubail Industrial City, Saudi Arabia. However, a proposed joint project between Evonik and India’s Gujarat Alkalis and Chemicals (GACL) for the construction of a unit to make PO from hydrogen peroxide has been abandoned after disagreement about the ownership stakes each partner would hold on the jv. GACL is now looking for a different partner for a similar project. Original Source: Huntsman Corporation, 2012. Found on PR Newswire, 13 Nov 2012, (Website: http://www.prnewswire.com). Original Source: Chemical and Engineering News, 19 Nov 2012, 90 (47), 8 (Website: http://www.cen-online.org) © American Chemical Society 2012. Original Source: Chimie Pharma Hebdo, 3 Dec 2012, (614), 7 (Website: http://www.industrie.com/chimie/) (in French) © ETAI Information 2012 Frost & Sullivan finds huge potential for lignin as future renewable resource Lignin could become the main renewable aromatic resource for the chemical industry in the future, with markets worth more than $130 bn, according to a Frost & Sullivan (F&S) representative. The first opportunity could emerge as early as 2015 from the direct substitution of phenol in most of its industrial applications, including phenolic resins, surfactants, epoxy resins, adhesives and polyester. F&S is exploring several lignin applications in the petrochemical industry, which is said to hold the highest capacity to accelerate the emergence of lignin- based chemicals. According to F&S, one of lignin’s unique strengths is that it can either be used directly as a ‘drop in’ to replace phenols in an existing petrochemical process, or it can be further processed to create polymer building blocks. Moreover, it 2 FEBRUARY 2013 FOCUS ON SURFACTANTS

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Page 1: Frost & Sullivan finds huge potential for lignin as future renewable resource

growing biodiesel sector threatens theavailability of basic raw materialssuch as beef tallow for themanufacture of cleaning products (p 2). It petitioned the EPA to restrictthe use of animal fats for biodieselmanufacturing but its pleas appear tohave fallen on deaf ears, at least asfar as 2013 quotas are concerned. InEurope, similar issues aroundbiofuels are currently under debate bythe European Commission.

Caroline Edser

RAWMATERIALS

Linear alkylbenzene

Egypt LAB to expand capacity

Egyptian linear alkylbenzene (LAB)maker Egypt LAB Co intends to lift itsLAB capacity in Alexandria, Egypt by40% to 140,000 tonnes/y by end2014. The firm has chosen to useUOP’s solid-state catalyst process forthe expanded capacity. The companyclosed its existing 100,000 tonne/yLAB facility for maintenance in mid-Dec 2012 with the intention ofreopening the unit on 1 Jan 2013.

Original Source: ICIS Chemical Business, 17 Dec2012, (Website: http://icischemicalbusiness.com) © Reed Business Information Limited 2012

Oleochemicals

European oleochemicals market to hit$4.5 bn by 2018

The European oleochemicals marketearned revenues of $3.9 bn in 2011and is projected to top $4.5 bn by2018, corresponding to a CAGR of1.9% (2011-2018), according to areport by Frost & Sullivan, Analysis ofthe European Oleochemicals Market.Oleochemicals and their derivativeshave gained significance because oftheir functional efficiency,performance, sustainability andbiodegradability, the report says.Oleochemicals are helping consumerproduct manufacturers adhere toREACH regulations and reduce theircarbon footprint. The naturallysourced chemicals also ensure ahigher degree of product safety. As a

result, they are being increasinglypreferred over petrochemicals for usein products such as cosmetics anddetergents. Their benefits are alsounderlining their appeal to anexpanding application base rangingfrom plastics and personal care tosoaps and detergents, food, pharma-ceuticals, coatings and rubber.Overcapacity and fluctuating prices ofcommon raw materials (eg tallow,soybean oil, palm and palm kernel oil,coconut oil, and rapeseed oil), used inthe manufacture of oleochemicals,are the two major challengesconstraining market growth.

Original Source: Frost & Sullivan, 2012. Found onSpecialChem Cosmetics and Personal Care Innovationand Solutions, 3 Dec 2012, (Website:http://www.specialchem4cosmetics.com)

Oleochemical industry fears loss ofkey raw material to biodiesel

Trade association American CleaningInstitute (ACI) blames the steadygrowth of the biodiesel industry in thepast decade for curtailing suppliesand raising the prices of animal fatssuch as beef tallow used as a sourceof fatty acids and fatty alcohols toproduce cleaning and personal careproducts. However, federal policiesincluding tax credits and guaranteedmarkets under the Renewable FuelStandard have caused the diversionof animal fats to biofuel production.The Environmental Protection Agency(EPA) estimates that roughly 270-280M gallons of the 1.28 bn gallonbiodiesel requirement in 2013 will beproduced using recycled cooking oiland animal fats. ACI called on theEPA to restrict the use of animal fatsfor biodiesel manufacturing. However,the EPA says in its final decision onthe 2013 biodiesel requirement that itcannot prevent raw materials thatmeet the statutory definition ofrenewable biomass from beingutilized in renewable fuel production.

Original Source: Chemical and Engineering News, 19Nov 2012, 90 (47), 32-34 (Website: http://www.cen-online.org) © American Chemical Society 2012

Alkoxylates/other

New PO projects for Huntsman/Sinopec& Shell/SABIC but Evonik jv scrapped

Huntsman Corp has entered into ajoint venture (jv) agreement withSinopec Jinling Co, a subsidiary of

Sinopec. The jv, Nanjing JinlingHuntsman New Materials Co Ltd, willbuild and operate a world-scalepropylene oxide (PO) and methyltertiary butyl ether (MTBE) facility inNanjing, China. The facility isexpected to be completed by the endof 2014 and will utilize Huntsman’sproprietary PO/MTBE manufacturingtechnology. Huntsman will own 49%of the jv. The facility will produce 550M pounds/y (250,000 tonnes/y) of POand 1.6 bn pounds of MTBE at acapital cost of about $750 M.Elsewhere, Shell and SABIC are toestablish a PO plant at the companies’existing Saudi Petrochemical jv inJubail Industrial City, Saudi Arabia.However, a proposed joint projectbetween Evonik and India’s GujaratAlkalis and Chemicals (GACL) for theconstruction of a unit to make POfrom hydrogen peroxide has beenabandoned after disagreement aboutthe ownership stakes each partnerwould hold on the jv. GACL is nowlooking for a different partner for asimilar project.

Original Source: Huntsman Corporation, 2012. Foundon PR Newswire, 13 Nov 2012, (Website:http://www.prnewswire.com). Original Source:Chemical and Engineering News, 19 Nov 2012, 90(47), 8 (Website: http://www.cen-online.org) © American Chemical Society 2012. Original Source:Chimie Pharma Hebdo, 3 Dec 2012, (614), 7(Website: http://www.industrie.com/chimie/) (inFrench) © ETAI Information 2012

Frost & Sullivan finds huge potentialfor lignin as future renewable resource

Lignin could become the mainrenewable aromatic resource for thechemical industry in the future, withmarkets worth more than $130 bn,according to a Frost & Sullivan (F&S)representative. The first opportunitycould emerge as early as 2015 fromthe direct substitution of phenol inmost of its industrial applications,including phenolic resins, surfactants,epoxy resins, adhesives andpolyester. F&S is exploring severallignin applications in thepetrochemical industry, which is saidto hold the highest capacity toaccelerate the emergence of lignin-based chemicals. According to F&S,one of lignin’s unique strengths is thatit can either be used directly as a‘drop in’ to replace phenols in anexisting petrochemical process, or itcan be further processed to createpolymer building blocks. Moreover, it

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F O C U S O N S U R F A C T A N T S

Page 2: Frost & Sullivan finds huge potential for lignin as future renewable resource

is not correlated with the fluctuatingprice of oil. By weight it represents20-35% of wood but until veryrecently lignin was regarded as a low-quality and low-added-value material,with the majority of extracted ligninbeing burnt as a low-value fuel.Overall, the lignin business todayrepresents roughly $300 M. However,developing technologies allow theextraction of high-purity lignin, whichcan be converted into various high-value chemicals and products, amongwhich are BTX (benzene, toluene,xylene), phenol, vanillin or carbonfibre. Lignin represents 30% of all thenon-fossil organic carbon on Earth.Its availability exceeds 300 bn tonnes,increasing by around 20 bn tonnes/y.

Original Source: Frost & Sullivan, 2012. Found onSpecialChem Adhesives and Sealants Formulation, 29 Nov 2012, (Website:http://www.specialchem4adhesives.com)

SURFACTANTSGlobal surfactant market worth $36.5bn by 2017

The report Surfactants Market byProduct Types [Anionic, Non-Ionic,Cationic, Amphoteric], Substrates[Synthetic/Petrochemical, Bio-Based/Natural/Green], Geography &Applications – Global Industry Trendsand Forecasts to 2017 fromMarketsandMarkets defines andsegments the surfactant market withanalysis and forecasting of the globalvolume and revenue. The globalsurfactant consumption revenue isexpected to grow from $27,040 M in2012 to $36,518 M by 2017, anestimated CAGR of 6.19%. In termsof volume, surfactant consumption isforecast to grow at a CAGR of 6.01%between 2012 and 2017. Syntheticsurfactants are expected to occupythe major share when compared tobio-based surfactants during the nextfive years. However, consumption ofbio-based surfactants is predicted toshow a significant growth by 2017.Currently, the European region is thelargest consumer of surfactants, withNorth America second and the Asia-Pacific third. While Europe isexpected to remain the top consumerby 2017, the second and thirdpositions are expected to reverse by2017. In terms of product type,anionic and nonionic surfactants are

estimated to constitute the largestshare in 2012 and are expected toremain so through 2017. Byapplication, the soap and detergentmarket is expected to constitute thelargest consuming segment throughoutthe 2012-2017 study period.

Original Source: MarketsandMarkets, 2012. Found on PR Newswire, 26 Nov 2012, (Website:http://www.prnewswire.com)

Russian surfactant firm increasingproduction

Zavod Sintanalov has commissioneda new ethoxylation plant inDzerzhinsk, Russia. The company,the leading surfactant producer inRussia, has invested Roubles 500 M(c €12.4 M). The new plant willincrease output by up to 20%, or10,000 tonnes of ethoxylates.

Original Source: Chemie Aktuell, 28 Nov 2012,(Website: http://www.maerkte-weltweit.de) (in German)© MBM Martin Brueckner Medien GmbH 2012

KPR Fertilisers plans manufacturingproject

KPR Fertilisers, a KPR Groupcompany, is planning to set up a Rup200 M (€2.8 M) chemicalsmanufacturing project in Biccavolu,Andhra Pradesh, India. The proposedplant will have manufacturing capacityof 4 tonnes/day of linear alkylbenzenesulfonic acid (LABS) and 50 tonnes/dayof chlorosulfonic acid, among others.The company is planning to start theproject in Jan 2013 with completionscheduled by Dec 2013.

Original Source: Chemical Engineering World, Nov2012, 47 (11), 79 (Website:http://www.cewindia.com/) © Jasubhai Group 2012

Cytec receives FDA clearance forAerosol EF-800 and EF-810 surfactants

Cytec Industries Inc announced thattwo of its newest APE-free Aerosolsurfactants, EF-800 and EF-810[Focus on Surfactants, Feb & Jun2009], have been cleared by the USFDA via Food Contact NotificationsNo 1182 and 1205, respectively.Aerosol EF-800 and EF-810 may nowbe used in food-contact applicationscorresponding to those described in21 Code of Federal Regulations(CFR) Sections 178 3400(‘Emulsifiers and/or surface-activeagents’), 176 170 (‘Components of

paper and paperboard in contact withaqueous and fatty foods’), 176 180(‘Components of paper and paperboard in contact with dry food’), and175 105 (‘Adhesives’), provided that itis used at a level not exceeding 5%by weight of total monomers used inadhesive formulations.

Original Source: Cytec, 2012. Found on SpecialChemAdhesives and Sealants Formulation, 16 Nov 2012,(Website: http://www.specialchem4adhesives.com)

Oxiteno acquires American Chemical tofortify its surfactants market position

Oxiteno has completed theacquisition of 100% of the shares ofthe Uruguayan surfactants andspeciality chemicals companyAmerican Chemical ICSA [see also,Focus on Surfactants, Aug 2012]. Thecompany has an industrial site closeto the Montevideo port thatmanufactures anionic surfactants forthe personal care, home care, I&I andagrochemicals markets, as well asproducts for the leather industry.

Original Source: Oxiteno; BIOEFFECT Canada, 2012.Found on SpecialChem Cosmetics and Personal CareInnovation and Solutions, 15 Nov 2012, (Website:http://www.specialchem4cosmetics.com)

ASSOCIATEDPRODUCTS

Builders

Thermphos declared bankrupt

Netherlands-based Thermphos,Europe’s last phosphorus (P)producer, and one of the world’slargest producers of phosphates andother P derivatives, has beendeclared bankrupt. It has around1100 employees throughout theworld, around half of whom are basedat Vlissingen, Netherlands. In recentmonths Thermphos has encounteredmajor financial problems because ofthe economic recession and importsof cheap P from Kazakhstan. It hasalso been fined for environmentalpollution, with its plant threatenedwith closure if the environmentalsituation does not improve.

Original Source: Het Financieele Dagblad, 22 Nov2012, 11 (Website: http://www.fd.nl/) (in Dutch) © Het Financieele Dagblad 2012

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F O C U S O N S U R F A C T A N T S