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Enzymes to spur US growth
FOCUS ON C A T A L Y S T S A MONTHLY REPORT FROM ALAN E COMYNS NOVEMBER 2002 In this issue
MARKETS AND BUSINESS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS IN THE MANUFACTURE AND USE OF CATALYSTS ISSN 1351–4180
BEWARE THE EUROWOCK, MY SON! 1-2
US enzymes market surging
COMPANY NEWS
2-5
JM really does buy Synetix
NEW PLANTS
5
Alcohol fuel to be made in Sweden
NEW TECHNOLOGY
5-7
Low temperature desulfurization Carbon nanotube mfr scaled up
ENVIRONMENT
7
Visible light photocatalyst
PATENTS
7
Ambient ammonia synthesis
BOOKSHELF
8
EVENTS
8
A dark cloud has hung over the European chemical industry, and parts of the animal kingdom, since February 2001 when the European Union published its white paper “Strategy for a European Chemicals Policy”. This included a proposal for the toxicological testing of all “intermediates”, of which there are about 70,000, regardless of whether they constituted a risk to the general public. To a chemist, a catalyst is not an “intermediate”: to a EU administrator, a catalyst is just another chemical, and catalysts are not in fact specifically mentioned in the Strategy document. So the proposed Strategy would require the comprehensive toxicological testing of all commercial catalysts, the costs to be borne by the catalyst manufacturers and their customers. The debate over the consequences of the proposed legislation has raged ever since it was proposed and is unlikely to be resolved by the time you read this, in November 2002, when the Commission is expected to publish its draft regulations. The timetable thereafter is laid out in the CEFIC website (www.cefic.org). The position of the Chemical Industries Association (CIA) is given in its website (www.cia.org). On 30 Sep the CIA signed a joint agreement with the major UK trades unions, sharing their deep concerns over specific details in the White Paper regarding intermediates, whilst supporting its overall objectives. So the companies and the unions, in the UK at least, are united in opposing the proposals as they now stand.
The monetary value of many of the smaller-volume intermediates and catalysts would not support the cost of testing much beyond what is currently required: if extensive testing were mandatory they would cease to be made in Europe. Readers wishing to review the cost calculations should study John Morris’s paper (Eur Chem News, 4 Feb 2002, 21). The hidden agenda of the EU seems to be the transfer of chemical manufacturing from Europe to Asia. It behoves the European catalyst producers to join and win this debate or be forced to relocate their plants out of Europe, with all that that implies. Let us hope that our politicians get the message and insist that the Commission reconsiders this suicidal strategy. Alan E. Comyns
MARKETS AND BUSINESS Enzymes to spur US growth The US market for enzymes is forecast to surge to $1.6 bn by 2006 with the discovery and commercialization of new, high-value enzymes for applications as biocatalysts and in pharmaceuticals, say the Freedonia Group. The US enzymes market is expected to grow 6.7%/y until 2006, which is slightly higher than the 6.1%/y growth recorded in 1996-2001. Pharmaceuticals will remain the
CATALYSTS CATALYSTS CATALYSTS CATALYSTS CATALYSTS CATALYSTS
F O C U S dominant segment with a 23% share, followed by biotechnology with a share of 20%. Performance Chemicals Europe (PCE), Sep-Oct 2002, 17 (5), 8
Combinatorial chemistry for materials (C-229)
O N
C ATA LY S T S
application in producing high density polyethylene. The catalysts can be utilized in gas phase or slurry processes for producing homopolymers of ethylene as well as copolymers of ethylene and alpha-olefins. The resulting resins feature a medium to broad molecular weight distribution ideal for applications such as blow moulding, pipe extrusion, and film.
Over the past decade, combinatorial methods have become commonplace at pharmaceutical companies developing new drugs. However, these drugs are organic compounds, and use a very restricted palette of elements. Recently, some of this combinatorial methodology has been applied to developing new materials for catalysts, column supports, electronics, and other applications. These applications are not restricted to using organic compounds, and this affects what has been used for drug development. Currently, the materials used in applications such as catalysts, electronics, column supports and others constitute a market worth tens of billions of dollars. Since combinatorial chemistry offers an approach that can shrink the development time and cost for these materials dramatically, there has been enormous interest in this methodology. This report covers this emerging field, and shows the potential markets, both US and globally, from 2000 to 2005 for materials using this technology.
Chemical Market Reporter, 9 Sep 2002 (Website: www.chemicalmarketreporter.com) & European Chemical News, 9 Sep 2002, 77 (2020), 22 & Chemical and Engineering News, 9 Sep 2002, 80 (36), 14 & Chemical Week, 11 Sep 2002, 164 (35), 7 & Chemical and Engineering News, 9 Sep 2002, 80 (36), 14 & Plastics and Rubber Weekly, 13 Sep 2002, 3 & Plastics News, 6 Sep 2002 (Website: www.plasticsnews.com)
Business Communications Company Inc, 25 Van Zant Street, Suite 13, Norwalk, CT 06855-1781, USA. Tel: +1 203 853 4266. Fax: +1 203 853 0348. Website: www.buscom.com. Jun 2001. 185 pp. Price: $3850.
BP Chemical commercialises MAN catalyst
EC lists products for US sanctions Enzymes are among the products listed by the European Commission in its $4 bn trade sanctions against the US. The dispute involves US tax treatment of companies under the Foreign Sales Corp regulations. Asian Chemical News, 23 Sep 2002, 8 (372), 4
COMPANY NEWS Basell launches Avant C catalysts Basell has made available Avant C, a new range of chromium catalysts with
2
Performance Chemicals Europe (PCE), Sep-Oct 2002, 17 (5), 14 & European Chemical News, 9 Sep 2002, 77 (2020), 22 & Plastics and Rubber Weekly, 6 Sep 2002, 4 & Chemical Market Reporter, 9 Sep 2002 (Website: www.chemicalmarketreporter.com)
BP and Nova sign catalyst agreement BP is to licence its Innovene metallocene technology for polyethylene production to Nova. Nova will grant BP rights to use and sub-licence its single-site catalyst technology. The two companies are already collaborating on the development of Ziegler-Natta catalysts. Phillip Townsend Associates estimates the world market for LLDPE film at around 10.5 M tons, with 1.1 M tons being produced using metallocene catalysts.
BP Chemical of Naperville, IL, has commercialised BP-5, a new vanadium/phosphorus-based catalyst which enhances the conversion of butane to maleic anhydride (MAN) utilizing a fixed-bed process. The new process is now being used at the company’s fixed-bed MAN production operations. The product provides shorter start-up period, enhances production output, and reduces the formation of off-spec products. A company official states that it can operate under butane concentrations up to 2 mol% and increase output by 15-20% depending on the configuration of the reactor. Chemical Engineering (New York), Sep 2002, 109 (10), 19 & Chemistry and Industry (London), 19 Aug 2002, (16), 6 & Asian Chemical News, 12 Aug 2002, 8 (368), 6
Catalytic Solutions to shake up autocat producers Californian company Catalytic Solutions Inc has developed an autocat which contains 50-80% less platinum group metals than the current commercial ones. They are polyphasic, based on perovskites. Honda has a 10% stake in the company and is using the catalysts in three Japanese car models. Both Ford and General Motors are in joint development work. The three established autocat producers (Engelhard, JM, and OM Group) are dubious of the novelty and utility of these products. Chemical & Engineering News, 26 Aug 2002, 80 (34), 17-19
Celanese, Novolen in metallocene link Novolen and Celanese ventures (a division of Celanese) are to cooperate on the development of metallocene catalysts. Brief details are given. Asian Chemical News, 5 Aug 2002, 8 (367), 4
Codexis announces closing of $25 M private financing Codexis Inc has raised $25 M in a private financing. CMEA Ventures, based in San Francisco, and Pequot Ventures led the round, which also included investments from ChevronTexaco Technology Ventures and Maxygen. Codexis is a biotechnology company focused on commercialising Maxygen’s core directed evolution technologies to create improved biocatalytic and fermentation-based processes for the manufacture of high-value pharmaceutical intermediates and other chemical products. In connection with the financing, Tom Baruch, General Partner of CMEA Ventures and Patrick Enright, Principal of Pequot Ventures will join the Codexis Board of Directors. The funds raised will be used to advance the commercialisation of Codexis’ products, with a primary focus on developing novel biocatalysts and improved manufacturing processes for multi-billion dollar drugs. Codexis Inc, a subsidiary of Maxygen Inc, is a provider of high-value chemical
NOVEMBER 2002
MARKETS AND BUSINESS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS IN THE MANUFACTURE AND USE OF CATALYSTS ISSN 1351–4180
BEWARE THE EUROWOCK, MY SON! 1-2
US enzymes market surging
COMPANY NEWS
2-5
JM really does buy Synetix
NEW PLANTS
5
Alcohol fuel to be made in Sweden
NEW TECHNOLOGY
5-7
Low temperature desulfurization Carbon nanotube mfr scaled up
ENVIRONMENT
7
Visible light photocatalyst
PATENTS
7
Ambient ammonia synthesis
BOOKSHELF
8
EVENTS
8
A dark cloud has hung over the European chemical industry, and parts of the animal kingdom, since February 2001 when the European Union published its white paper “Strategy for a European Chemicals Policy”. This included a proposal for the toxicological testing of all “intermediates”, of which there are about 70,000, regardless of whether they constituted a risk to the general public. To a chemist, a catalyst is not an “intermediate”: to a EU administrator, a catalyst is just another chemical, and catalysts are not in fact specifically mentioned in the Strategy document. So the proposed Strategy would require the comprehensive toxicological testing of all commercial catalysts, the costs to be borne by the catalyst manufacturers and their customers. The debate over the consequences of the proposed legislation has raged ever since it was proposed and is unlikely to be resolved by the time you read this, in November 2002, when the Commission is expected to publish its draft regulations. The timetable thereafter is laid out in the CEFIC website (www.cefic.org). The position of the Chemical Industries Association (CIA) is given in its website (www.cia.org). On 30 Sep the CIA signed a joint agreement with the major UK trades unions, sharing their deep concerns over specific details in the White Paper regarding intermediates, whilst supporting its overall objectives. So the companies and the unions, in the UK at least, are united in opposing the proposals as they now stand.
The monetary value of many of the smaller-volume intermediates and catalysts would not support the cost of testing much beyond what is currently required: if extensive testing were mandatory they would cease to be made in Europe. Readers wishing to review the cost calculations should study John Morris’s paper (Eur Chem News, 4 Feb 2002, 21). The hidden agenda of the EU seems to be the transfer of chemical manufacturing from Europe to Asia. It behoves the European catalyst producers to join and win this debate or be forced to relocate their plants out of Europe, with all that that implies. Let us hope that our politicians get the message and insist that the Commission reconsiders this suicidal strategy. Alan E. Comyns
MARKETS AND BUSINESS Enzymes to spur US growth The US market for enzymes is forecast to surge to $1.6 bn by 2006 with the discovery and commercialization of new, high-value enzymes for applications as biocatalysts and in pharmaceuticals, say the Freedonia Group. The US enzymes market is expected to grow 6.7%/y until 2006, which is slightly higher than the 6.1%/y growth recorded in 1996-2001. Pharmaceuticals will remain the
CATALYSTS CATALYSTS CATALYSTS CATALYSTS CATALYSTS CATALYSTS
F O C U S dominant segment with a 23% share, followed by biotechnology with a share of 20%. Performance Chemicals Europe (PCE), Sep-Oct 2002, 17 (5), 8
Combinatorial chemistry for materials (C-229)
O N
C ATA LY S T S
application in producing high density polyethylene. The catalysts can be utilized in gas phase or slurry processes for producing homopolymers of ethylene as well as copolymers of ethylene and alpha-olefins. The resulting resins feature a medium to broad molecular weight distribution ideal for applications such as blow moulding, pipe extrusion, and film.
Over the past decade, combinatorial methods have become commonplace at pharmaceutical companies developing new drugs. However, these drugs are organic compounds, and use a very restricted palette of elements. Recently, some of this combinatorial methodology has been applied to developing new materials for catalysts, column supports, electronics, and other applications. These applications are not restricted to using organic compounds, and this affects what has been used for drug development. Currently, the materials used in applications such as catalysts, electronics, column supports and others constitute a market worth tens of billions of dollars. Since combinatorial chemistry offers an approach that can shrink the development time and cost for these materials dramatically, there has been enormous interest in this methodology. This report covers this emerging field, and shows the potential markets, both US and globally, from 2000 to 2005 for materials using this technology.
Chemical Market Reporter, 9 Sep 2002 (Website: www.chemicalmarketreporter.com) & European Chemical News, 9 Sep 2002, 77 (2020), 22 & Chemical and Engineering News, 9 Sep 2002, 80 (36), 14 & Chemical Week, 11 Sep 2002, 164 (35), 7 & Chemical and Engineering News, 9 Sep 2002, 80 (36), 14 & Plastics and Rubber Weekly, 13 Sep 2002, 3 & Plastics News, 6 Sep 2002 (Website: www.plasticsnews.com)
Business Communications Company Inc, 25 Van Zant Street, Suite 13, Norwalk, CT 06855-1781, USA. Tel: +1 203 853 4266. Fax: +1 203 853 0348. Website: www.buscom.com. Jun 2001. 185 pp. Price: $3850.
BP Chemical commercialises MAN catalyst
EC lists products for US sanctions Enzymes are among the products listed by the European Commission in its $4 bn trade sanctions against the US. The dispute involves US tax treatment of companies under the Foreign Sales Corp regulations. Asian Chemical News, 23 Sep 2002, 8 (372), 4
COMPANY NEWS Basell launches Avant C catalysts Basell has made available Avant C, a new range of chromium catalysts with
2
Performance Chemicals Europe (PCE), Sep-Oct 2002, 17 (5), 14 & European Chemical News, 9 Sep 2002, 77 (2020), 22 & Plastics and Rubber Weekly, 6 Sep 2002, 4 & Chemical Market Reporter, 9 Sep 2002 (Website: www.chemicalmarketreporter.com)
BP and Nova sign catalyst agreement BP is to licence its Innovene metallocene technology for polyethylene production to Nova. Nova will grant BP rights to use and sub-licence its single-site catalyst technology. The two companies are already collaborating on the development of Ziegler-Natta catalysts. Phillip Townsend Associates estimates the world market for LLDPE film at around 10.5 M tons, with 1.1 M tons being produced using metallocene catalysts.
BP Chemical of Naperville, IL, has commercialised BP-5, a new vanadium/phosphorus-based catalyst which enhances the conversion of butane to maleic anhydride (MAN) utilizing a fixed-bed process. The new process is now being used at the company’s fixed-bed MAN production operations. The product provides shorter start-up period, enhances production output, and reduces the formation of off-spec products. A company official states that it can operate under butane concentrations up to 2 mol% and increase output by 15-20% depending on the configuration of the reactor. Chemical Engineering (New York), Sep 2002, 109 (10), 19 & Chemistry and Industry (London), 19 Aug 2002, (16), 6 & Asian Chemical News, 12 Aug 2002, 8 (368), 6
Catalytic Solutions to shake up autocat producers Californian company Catalytic Solutions Inc has developed an autocat which contains 50-80% less platinum group metals than the current commercial ones. They are polyphasic, based on perovskites. Honda has a 10% stake in the company and is using the catalysts in three Japanese car models. Both Ford and General Motors are in joint development work. The three established autocat producers (Engelhard, JM, and OM Group) are dubious of the novelty and utility of these products. Chemical & Engineering News, 26 Aug 2002, 80 (34), 17-19
Celanese, Novolen in metallocene link Novolen and Celanese ventures (a division of Celanese) are to cooperate on the development of metallocene catalysts. Brief details are given. Asian Chemical News, 5 Aug 2002, 8 (367), 4
Codexis announces closing of $25 M private financing Codexis Inc has raised $25 M in a private financing. CMEA Ventures, based in San Francisco, and Pequot Ventures led the round, which also included investments from ChevronTexaco Technology Ventures and Maxygen. Codexis is a biotechnology company focused on commercialising Maxygen’s core directed evolution technologies to create improved biocatalytic and fermentation-based processes for the manufacture of high-value pharmaceutical intermediates and other chemical products. In connection with the financing, Tom Baruch, General Partner of CMEA Ventures and Patrick Enright, Principal of Pequot Ventures will join the Codexis Board of Directors. The funds raised will be used to advance the commercialisation of Codexis’ products, with a primary focus on developing novel biocatalysts and improved manufacturing processes for multi-billion dollar drugs. Codexis Inc, a subsidiary of Maxygen Inc, is a provider of high-value chemical
NOVEMBER 2002