1

GlyphosateGlyphosate

PanelPanel

AICAIC

SanSan--Antonio, TXAntonio, TX

2

1. Different manufacturing routes1. Different manufacturing routes

2. New constraints2. New constraints

3

Glossary of AbbreviationsGlossary of AbbreviationsDMHP (DiMethyl Hydrogen Phosphite)

MW= 110.1OCH3

/ H(O)P

\OCH3

PCl3 (Phosphorus Trichloride) ClMW= 137.5 /

Cl P\

Cl

PA (Phosphorus Acid)MW= 82.0

H3PO3

DSIDA (DiSodium Iminodiacetate) CH2CO2NaMW= 177.0 /

HCN\

CH2CO2Na

IDA (Im inodiacetic Acid) CH 2-CO 2HMW = 133.1 /

HN\

CH 2-CO 2H

PMIDA (PhosphonoMethyl Im inoDiacetic Acid)MW = 227.1

CH 2-CO 2H/

(HO )2P(O)-CH 2-N\

CH 2-CO 2H

GlycineMW= 75.1 H

/ HO2C-CH2-N

\H

IDAN (Iminodiacetonitrile) CH2CNMW= 95.0 /

HCN\

CH2CN

GlyphosateMW= 169.1 CH2-CO2H

/ (HO)2P(O)-CH2-N

\H

4

Pick your routePick your route……

IDAN + IDAN + NaOHNaOH + water+ water DEA + DEA + NaOHNaOH

DSIDADSIDA

GlyphosateGlyphosate

PMIDAPMIDA

++PCl3PCl3

DMHP + IDA + DMHP + IDA + FormaldFormald..

Me PMIDAMe PMIDA

+ water+ water

PA + IDA + PA + IDA + FormaldFormald..

i)i) + water+ water

ii)ii) Oxygen / catOxygen / cat

GlycineGlycine + + MeOHMeOH + + HClHCl

Amine HydrochlorideAmine Hydrochloride

GlyphosateGlyphosate

MeMe GlyphosateGlyphosate

+ + FormaldFormald..

+ water+ water

Amine ChlorideAmine Chloride

+ DMHP+ DMHP

5

MonsantoMonsanto’’s original route (IDA)s original route (IDA)

IDANIDAN

+ + NaOH NaOH + water+ water

DSIDADSIDA

+ PCl3+ PCl3

GlyphosateGlyphosate

PMIDAPMIDA

i)i) + water+ water

ii)ii) Oxygen / catOxygen / cat

Ammonia + Ammonia + FormaldeydeFormaldeyde + HCN+ HCN

Advantages:Advantages:-all RM are standard feedstock, readily available

-Simple process simple equipment low maint. / CAPEX

-

on site manufacture of PCl3 possible versus purchasing of DMHP

-Low production costs (cheaper RM and higher process yield)

-Intermediates can easily be isolated or handled

Raw MaterialMt of RM / Mt of glyphosate:IPA

PCl3 0.60 IDA 0.58 Formaldehyde 0.13

6

ChinaChina’’s (so far) preferred route (s (so far) preferred route (glycineglycine))

Advantages:Advantages:-

does not require ammonia (tight and expensive in China) or PCl3 (hazardous)

Drawbacks:Drawbacks:- requires pressure proof vessels

-

more steps required as key intermediates are not as readily available

- intermediates can’t be isolated as easily as PMIDA

Raw MaterialMt of RM / Mt of glyphosate:IPA

DMHP 0.48Glycine 0.33Formaldehyde 0.13MeOH 0.14HCl 0.16

Glycine + MeOH + HCl

Amine Hydrochloride

Glyphosate

Me Glyphosate

+ Formald.

+ water

Amine Chloride

+ DMHP

7

2. New constraints2. New constraints

8

New constraints in China are pushing for consolidation1)1)

HSE / HSE / EcotoxEcotox ::-

Typical free gly. acid content in the effluent streams ~1.4 % -

EPA recommendations for WWT: Heat Effluent and treat with O2 (Cat. Reaction)

-

Very costly because of the catalyst, the heating of significant

volumes and the reaction requires pressurized system (high investment level)

2) 2) Capacity limitations:Capacity limitations:-

Additional capacity is needed WW but investment cost is significant-

Typical level of investment required are10-20M$ for 30 kT

PCl3 plant30-50M$ for 20 kT

PMIDA plant 30-50M$ for 20 kT

gly. acid plant

9

Gly. Acid Producers Tonnage UsageMonsanto (US, Europe, Brazil) > 250 KT Internal/ExternalCheminova (Europe) 50 KT InternalAlbaugh / Atanor (Argentina) 12 KT InternalNortox (Brazil) 13 KT InternalChinese (Multiple producers) 210 KT External

Total > 550 KT

IDA

Glycine

In 2007 only ~ 30% (50-60 Mt) of the Chinese Gly

Acid production is via the IDA route.

NA

China

GlyphosateGlyphosate

Acid production Acid production --

2007 snapshot2007 snapshot

10

Current P4 supply and price situation will Current P4 supply and price situation will easeease……P4 usage is ~ .15 Mt / MT whatever the route…

A major P4 crisis in China affecting all P4 derivatives WW A major P4 crisis in China affecting all P4 derivatives WW ……•

combination of high fertilizer demand (green acid selling for 2,000$/Mt!!!) and power supply shortage WW crisis

•

change in export Tariff for P4 will incentivize local P4 producer to sell locally rather than export new gly. Acid capacity

While Monsanto in NA still cheapest P4 manufacturer WWWhile Monsanto in NA still cheapest P4 manufacturer WW

Overall, oversupply of phosphate rock Overall, oversupply of phosphate rock prices for P4 will come down in prices for P4 will come down in ChinaChina

11

Summary

• Chinese

Glyphosate

industry will consolidate quickly and progressively move to “all-IDA”

• P4 situation is overplayed and long term that won’t cause a major change in the industrial footprint

• Glyphosate

manufacturing is probably at its highest cost (high RM costs and limited capacity)