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Markets and business
FOCUS
ON
C A T A L Y S T S A MONTHLY REPORT FROM ALAN E COMYNS JANUARY 2002
0 TEWIPORA, 0 MORES!
in this issue MARKETS AND BUSINESS
1-2
Japanese catalyst manufacture healthy Global merchant catalyst business mixed COMPANY
NEWS
2-4
Alcoa in Chinese jv BASF going increasingly biological ExxonMobil and Chevron Phillips agree 5
NEW PLANTS
Univation to expand mc catalyst plant GTL projects in Australia, Italy, Nigeria NEW TECHNOLOGY
5-8
Dimethyl ether from natural gas ENVIRONMENT Sulfur removal processes
6-7
Sewage sludge volumes reduced PATENTS
7
-SHELF
8
EVENTS
8
ELSEVIER ADVANCED
TERATOLOGY CATALYSTS
CATALYSTS
At the end of every year I try to encapsulate the industrial catalyst activity during that year in one word. The past six years have been, respectively, inventive, Combjnatoria~~ Litigious, Challenging, Vintage, and Watershed. I regret that 2001 can only be described as Mediocre. Lest 1 be accused of subjectivity, here is my evidence. I keep a current list of all named chemical processes, which will one day be used in the preparation of the third edition of my Di&tiona~*. Most of these processes involve catalysis. In 2001, 14 such processes were announced**. In 2000 there were 38. Numbers of named processes are lagging economic indicators of the intensity of R&D. One could argue that the numbers of named processes do not necessarily mirror the numbers of all processes developed, and there are ambiguities over the timing of inventions and announcements, However, the general decline in innovation which started several years ago, reflected in today’s figures, is not in doubt. There are probably many reasons for the present decline in innovation, including the general industrial recession. t would highlight the continuing reorganisation to which our industry has been and still is being subjected. Large firms which used to compete with each other are merging (Exxon with Mobil, UOP with Union Carbide), and financial companies with no chemical expertise are taking control. Tiddlers (Ineos) are catching whales (ICI commodities) because the whales have lost the will to live. Most
CATALYSTS
CATALYSTS
of the process developers were acquired by a Norwegian shipbuilder (Kvaerner)~ which is now in financial difficulties and is in prospect of being acquired by a Russian oil company, Churning of companies with companies and divisions of companies among the majors is ongoing. The only beneficiaries of all this unproductive pseudo-activi~ are company directors with share options. This industrial ferment is not conducive to innovation. Who is going to stake his or her career on a new process which a new owner of the company is likely to abandon tomorrow? If I were a financial advisor I would recommend my clients to avoid oils and petrochemicats (too mature), avoid drugs (too risky), and avoid biochemicals (poor track record}. But invest in fuel cells - a certain growth market whose time has come. Fortunately, all fuel cells need catalysts. Alan E. Comyns
Encyclopedic Dictionary of Named Processes in Chemical Technology, 2nd edn., 1999, CRC Press, Boca Raton, FL, USA ** a-Sablin, Avada, Biocol, Biolysis, DISTOX, GTCrystPX, GT-DeSulf, MuCell, Naphthamax-LSG~~orsorex, Redar, SELOP, Sulfint HP, Suremax.
BiiRKETS AND -.buslNaSs Japanese catalyst production likely to set new record tn 1H 2001, Japanese shipments of catalysts amounted to Yen 130 bn,
CATALYSTS
CATALYSTS
and are expected to amount to Yen 250 bn for the full year. In 1H 2001, production volume was 43,608 tonnes (+5% on the same period in 2000) and the shipped quantity was 44,790 tonnes (+l O%).The main growth areas were: automotive (+45%), refining (+32%), and petrochemicals (+25%). Japan Chemical Week, 25 Ott 2001,42
(2144), 3
Japanese catalyst industry responding to the needs of the times A detailed review of the Japanese catalysts industry in 2000 and 2001. A categorised table shows Japanese catalyst production/deliveries for 1H 2000 and 2001. JapanChemical Week, 22 Nov 2001,42 (2148), 4
Merchant catalyst market mixed but growing The global merchant catalyst business that covers chemical processing, environmental, polymerization, and refining is expected to grow by 3-3.5%/y overall from its current level of $9 bn/y to $11.5 bn/y by 2005. Demand for polymer and emission control catalysts has fallen by 20% since 2000. Stable demand is being experienced by refinery catalysts. Demand for metallocene polyolefin catalysts and chiral catalysts for drug production is rising. Chiral chemistry is now used in the production of 45% of all drugs. Chemical Week, 31 Ott 2001,163
(40), 31
capacity in glycerine and oleochemicals. In the US, Novozyme and Genencor have received over $30 M to finance research into enzymes for biofuel production using wood chip. The EC is expected to inject funding into this research. European ETBE production is about 350,000 ton/y. It accounts for about 10% of the European oxygenates market. European biodiesel capacity has doubled to almost 1 M tons over a three year period. Frost and Sullivan expect production to reach 3 M tons by 2005. Other analysts forecast production to be 10 M tons by 2010. Chemical Market Reporter, 19 Nov 2001 (Website: http://www.chemexpo.com/cmronline)
Enthusiasm for enzymes in dishwashing detergents Research in the use of enzymes for detergent applications has led to innovative products such as dishwashing detergents and specifically automatic dishwashing detergents. Some of the firms that have produced innovative products include Diversa Corp. The firm is utilising DNA extraction techniques to extract genetic materials from uncultured organisms. It has already forged some deals with other firms to develop and commercialise products for industrial enzyme applications. Another firm is Novozymes, which offers a wide range of protease enzymes. The firm’s Esperase product is one of the unique products in the market, which are considered ideal for automatic dishwashing, institutional, and industrial laundry detergent applications. Soap
2
Akzo Nobel 3112001 Results, 24 Ott 2001,2 (Available from: Akzo Nobel nv, Velperweg 76, PO Box 9300,680O SB Arnhem, The Netherlands. Tel: t31 26 366 43 43. Fax: t31 26 366 49 40. Website: http://www.akzonobel.com)
Alcoa and Chalco form strategic alliance Alcoa Inc has announced that it has finalised agreements for a strategic alliance and possible long-term strategic partnership with Aluminium Corp of China Ltd (Chalco). The two companies are forming a 50/50 jv at Chalco’s alumina and aluminium facilities at Pingguo, China. Alcoa will transfer management, operational and technical expertise, and best practices to China. The company believes that the venture will allow it to benefit from China’s aluminium market, the fastest growing one in the world. Chalco is the sole alumina producer largest primary aluminium China.
and the producer
in
Press releasefrom: Alcoa Inc, Pittsburgh,USA. Website: http:/Mww.alcoa.com(6 Nov 2001)
Organotln jv details Growth of 4-6%/y is expected by Atofina and Albemarle in the organotin intermediates market. The company has recently created a jv to produce butyl tin- and octyl tin-based products that are used as polyvinyl chloride heat stabilizers and in paints, glass coatings, and catalysts. Chemical Week, 7 Nov 2001,163
(41), 31
andCosmetics, Ott 2001, 77 (lo), 30-32,34
Increasing biofuels output could reduce glycerin market The European Commission is to encourage the expansion of biofuel activities in the EU. This could have major repercussions on oleochemicals and crop-based raw materials. The EC is to introduce legislation to require EU states to ensure that biofuel accounts for at least 2% of transport fuel sales by 2005. This rises to 5.7% in 2010 and 20% in 2020. Countries will be able to bring in low tax rates for biofuels. The move could result in an excess of
better performance. Catalysts started to benefit from earlier cost-reduction programmes.
Atofina boosts capacity for tin compounds
Akxo Nobel 3Q 2001: Chemicals under pressure The economic weakness affecting the US and Europe impacted most Akzo Nobel’s Chemicals businesses. Sales for 3Q were down 4% compared to 2000. Pulp and Paper Chemicals as well as Salt registered a somewhat
Atofina Chemicals has significantly expanded capacity at Carrollton, KY, for stannous compounds. The expansion mainly increases capacity for stannous octoate, but also raises that for other compounds, such as stannous chloride and oxide. The compounds are mainly used in urethane catalysts. The extra capacity will be in full operation by the end of Nov. Chemical Week, 21 Nov 2001,163
(43), 13
JANUARY
2002
ON
C A T A L Y S T S A MONTHLY REPORT FROM ALAN E COMYNS JANUARY 2002
0 TEWIPORA, 0 MORES!
in this issue MARKETS AND BUSINESS
1-2
Japanese catalyst manufacture healthy Global merchant catalyst business mixed COMPANY
NEWS
2-4
Alcoa in Chinese jv BASF going increasingly biological ExxonMobil and Chevron Phillips agree 5
NEW PLANTS
Univation to expand mc catalyst plant GTL projects in Australia, Italy, Nigeria NEW TECHNOLOGY
5-8
Dimethyl ether from natural gas ENVIRONMENT Sulfur removal processes
6-7
Sewage sludge volumes reduced PATENTS
7
-SHELF
8
EVENTS
8
ELSEVIER ADVANCED
TERATOLOGY CATALYSTS
CATALYSTS
At the end of every year I try to encapsulate the industrial catalyst activity during that year in one word. The past six years have been, respectively, inventive, Combjnatoria~~ Litigious, Challenging, Vintage, and Watershed. I regret that 2001 can only be described as Mediocre. Lest 1 be accused of subjectivity, here is my evidence. I keep a current list of all named chemical processes, which will one day be used in the preparation of the third edition of my Di&tiona~*. Most of these processes involve catalysis. In 2001, 14 such processes were announced**. In 2000 there were 38. Numbers of named processes are lagging economic indicators of the intensity of R&D. One could argue that the numbers of named processes do not necessarily mirror the numbers of all processes developed, and there are ambiguities over the timing of inventions and announcements, However, the general decline in innovation which started several years ago, reflected in today’s figures, is not in doubt. There are probably many reasons for the present decline in innovation, including the general industrial recession. t would highlight the continuing reorganisation to which our industry has been and still is being subjected. Large firms which used to compete with each other are merging (Exxon with Mobil, UOP with Union Carbide), and financial companies with no chemical expertise are taking control. Tiddlers (Ineos) are catching whales (ICI commodities) because the whales have lost the will to live. Most
CATALYSTS
CATALYSTS
of the process developers were acquired by a Norwegian shipbuilder (Kvaerner)~ which is now in financial difficulties and is in prospect of being acquired by a Russian oil company, Churning of companies with companies and divisions of companies among the majors is ongoing. The only beneficiaries of all this unproductive pseudo-activi~ are company directors with share options. This industrial ferment is not conducive to innovation. Who is going to stake his or her career on a new process which a new owner of the company is likely to abandon tomorrow? If I were a financial advisor I would recommend my clients to avoid oils and petrochemicats (too mature), avoid drugs (too risky), and avoid biochemicals (poor track record}. But invest in fuel cells - a certain growth market whose time has come. Fortunately, all fuel cells need catalysts. Alan E. Comyns
Encyclopedic Dictionary of Named Processes in Chemical Technology, 2nd edn., 1999, CRC Press, Boca Raton, FL, USA ** a-Sablin, Avada, Biocol, Biolysis, DISTOX, GTCrystPX, GT-DeSulf, MuCell, Naphthamax-LSG~~orsorex, Redar, SELOP, Sulfint HP, Suremax.
BiiRKETS AND -.buslNaSs Japanese catalyst production likely to set new record tn 1H 2001, Japanese shipments of catalysts amounted to Yen 130 bn,
CATALYSTS
CATALYSTS
and are expected to amount to Yen 250 bn for the full year. In 1H 2001, production volume was 43,608 tonnes (+5% on the same period in 2000) and the shipped quantity was 44,790 tonnes (+l O%).The main growth areas were: automotive (+45%), refining (+32%), and petrochemicals (+25%). Japan Chemical Week, 25 Ott 2001,42
(2144), 3
Japanese catalyst industry responding to the needs of the times A detailed review of the Japanese catalysts industry in 2000 and 2001. A categorised table shows Japanese catalyst production/deliveries for 1H 2000 and 2001. JapanChemical Week, 22 Nov 2001,42 (2148), 4
Merchant catalyst market mixed but growing The global merchant catalyst business that covers chemical processing, environmental, polymerization, and refining is expected to grow by 3-3.5%/y overall from its current level of $9 bn/y to $11.5 bn/y by 2005. Demand for polymer and emission control catalysts has fallen by 20% since 2000. Stable demand is being experienced by refinery catalysts. Demand for metallocene polyolefin catalysts and chiral catalysts for drug production is rising. Chiral chemistry is now used in the production of 45% of all drugs. Chemical Week, 31 Ott 2001,163
(40), 31
capacity in glycerine and oleochemicals. In the US, Novozyme and Genencor have received over $30 M to finance research into enzymes for biofuel production using wood chip. The EC is expected to inject funding into this research. European ETBE production is about 350,000 ton/y. It accounts for about 10% of the European oxygenates market. European biodiesel capacity has doubled to almost 1 M tons over a three year period. Frost and Sullivan expect production to reach 3 M tons by 2005. Other analysts forecast production to be 10 M tons by 2010. Chemical Market Reporter, 19 Nov 2001 (Website: http://www.chemexpo.com/cmronline)
Enthusiasm for enzymes in dishwashing detergents Research in the use of enzymes for detergent applications has led to innovative products such as dishwashing detergents and specifically automatic dishwashing detergents. Some of the firms that have produced innovative products include Diversa Corp. The firm is utilising DNA extraction techniques to extract genetic materials from uncultured organisms. It has already forged some deals with other firms to develop and commercialise products for industrial enzyme applications. Another firm is Novozymes, which offers a wide range of protease enzymes. The firm’s Esperase product is one of the unique products in the market, which are considered ideal for automatic dishwashing, institutional, and industrial laundry detergent applications. Soap
2
Akzo Nobel 3112001 Results, 24 Ott 2001,2 (Available from: Akzo Nobel nv, Velperweg 76, PO Box 9300,680O SB Arnhem, The Netherlands. Tel: t31 26 366 43 43. Fax: t31 26 366 49 40. Website: http://www.akzonobel.com)
Alcoa and Chalco form strategic alliance Alcoa Inc has announced that it has finalised agreements for a strategic alliance and possible long-term strategic partnership with Aluminium Corp of China Ltd (Chalco). The two companies are forming a 50/50 jv at Chalco’s alumina and aluminium facilities at Pingguo, China. Alcoa will transfer management, operational and technical expertise, and best practices to China. The company believes that the venture will allow it to benefit from China’s aluminium market, the fastest growing one in the world. Chalco is the sole alumina producer largest primary aluminium China.
and the producer
in
Press releasefrom: Alcoa Inc, Pittsburgh,USA. Website: http:/Mww.alcoa.com(6 Nov 2001)
Organotln jv details Growth of 4-6%/y is expected by Atofina and Albemarle in the organotin intermediates market. The company has recently created a jv to produce butyl tin- and octyl tin-based products that are used as polyvinyl chloride heat stabilizers and in paints, glass coatings, and catalysts. Chemical Week, 7 Nov 2001,163
(41), 31
andCosmetics, Ott 2001, 77 (lo), 30-32,34
Increasing biofuels output could reduce glycerin market The European Commission is to encourage the expansion of biofuel activities in the EU. This could have major repercussions on oleochemicals and crop-based raw materials. The EC is to introduce legislation to require EU states to ensure that biofuel accounts for at least 2% of transport fuel sales by 2005. This rises to 5.7% in 2010 and 20% in 2020. Countries will be able to bring in low tax rates for biofuels. The move could result in an excess of
better performance. Catalysts started to benefit from earlier cost-reduction programmes.
Atofina boosts capacity for tin compounds
Akxo Nobel 3Q 2001: Chemicals under pressure The economic weakness affecting the US and Europe impacted most Akzo Nobel’s Chemicals businesses. Sales for 3Q were down 4% compared to 2000. Pulp and Paper Chemicals as well as Salt registered a somewhat
Atofina Chemicals has significantly expanded capacity at Carrollton, KY, for stannous compounds. The expansion mainly increases capacity for stannous octoate, but also raises that for other compounds, such as stannous chloride and oxide. The compounds are mainly used in urethane catalysts. The extra capacity will be in full operation by the end of Nov. Chemical Week, 21 Nov 2001,163
(43), 13
JANUARY
2002