Alcohols heady with new capacities

FOCUS (CAGR) of about 3.4%. Sulfonates/sulfonic acid-based products accounted for 62.5% of revenues in 2005 (or 58.7% of volumes used), sulfates 33.7% (38.3%) and sulfosuccinates 3.8% (4.0%), according to the study. In addition to the challenges facing manufacturers outlined above, F&S highlights the problems of sulfonation overcapacity in Europe, the trend towards substitution by nonionics, shifting customer manufacturing and the additional cost pressures represented by REACH and other EU legislation. REACH is indeed likely to cause the withdrawal of some anionic surfactants (branched alkylbenzene sulfonates for one) as companies decide the cost of supporting them through the registration and evaluation process is not worthwhile. (However, it could be argued that, once the registration is complete, the value of the product will effectively be protected in the EU against cheaper imports from competitors outside the EU that have not fulfilled the registration requirements.) Competition in the European anionic surfactants market is intense with about 30 recognized manufacturers. Current major participants are identified by F&S as multinationals Sasol, Huntsman, Stepan, Cognis and Kao and Norwegian anionics specialist Unger Fabrikker. The study comments that the pressures besetting this segment may result in the future exit of some of the leading companies from this market. Indeed we already have evidence of that with Huntsman’s rationalization of the former Albright & Wilson operations leading to cessation of surfactant manufacturing in the UK [Focus on Surfactants, Dec 2004], and Sasol’s ongoing plan to divest its O&S unit [ibid, Nov 2006]. The divestment of Cognis was also under consideration this year though that has now been decided against [ibid, Oct 2006]. However, for those European anionics manufacturers that stay the course, the F&S study provides a reasonably optimistic medium-term outlook. Market value is forecast to grow to €1,677 M by 2012, a CAGR of 4.5% in revenue terms, with a corresponding CAGR of 2.3% in volume terms. While warning that a much more focused effort will be required by manufacturers of 2

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sulfonated anionic surfactants in order to sustain their business in Europe, F&S sees opportunities in further consolidation, in the expansion of the EU and in product portfolio development. In particular, with supplies of oleo alcohols increasing (see p 2), and prices for crude oilbased feedstocks as well as regulatory pressure continuing to rise, it suggests that a shift to oleochemical-based products would offer solutions to many of the problems faced by the segment. Alkyl sulfates derived from natural oils provided early commercial success for anionic surfactants; now it seems that refocusing on oleochemicals may be the best way forward for this class of surfactants. And now, before I head out to do my bit to boost seasonal sales of surfactant-based gifts, it just remains for me to wish you all a happy Christmas and a successful New Year! Caroline Edser

RAW MATERIALS

Alkoxylates/Other Trio unite on propylene oxide technology roll-out Partners BASF and Dow Chemical have officially commenced construction of their 300,000 tonne/y propylene oxide (PO) project in Antwerp, Belgium, with start up slated in 2008 [Focus on Surfactants, Nov 2004]. The facility will employ a technology jointly developed by the two companies that is based on hydrogen peroxide feedstock. Solvay has stepped up its production of hydrogen peroxide to satisfy the demands of the new PO plant. By optimizing the AQ and ATQ quinones blend in the process, output was 42% higher. All three companies are investing in a proposed 230,000 tonne/y hydrogen peroxide unit, currently being built next to the PO plant. The cost- and energy-efficient PO process, whose only products are water and PO, utilizes propylene and hydrogen peroxide feedstocks and a titanium zeolite catalyst. The use of the technology reduces waste water generation by 70-80%, thereby cutting environmental impact. ICIS Chemical Business, 16 Oct 2006, (Website: http://icischemicalbusiness.com)

Linear alkylbenzene Future LAB feedstock in pipeline According to the global manager of Shell’s alcohol and alcohol derivatives business, normal paraffin (n-paraffin) from gas-to-liquid (GTL) units will soon be able to replace kerosenebased n-paraffin. This will provide a more cost-effective feedstock for linear alkylbenzene (LAB) producers. Shell is currently producing several thousand tonnes of GTL n-paraffin at Bintulu, Malaysia. Most of the output has been used for wax production but some of the n-paraffin has been marketed to Asian LAB producers. The company, in cooperation with Qatar Petroleum, is to produce 260,000 tonnes/y of GTL n-paraffin at the Pearl project in Qatar’s Ras Laffan Industrial City. The first phase of output (130,000 tonnes/y) will be available to LAB producers by 2010. ICIS Chemical Business Americas, 16 Oct 2006, (Website: http://www.icbamericas.com)

Alcohols heady with new capacities A detailed discussion of the fatty alcohols market is given. Expansions will add about 1 M tonnes/y of extra capacity by 2008, and the market share of higher alcohols will increase from the current level of 61% (c 1.7 M tonnes/y) to 65% by 2010. Supply is increasing in particular from Asia. The increase may have a negative impact on the market for linear alkylbenzenes (LAB), for which demand is currently 2.6 M tonnes/y and global capacity 3.44 M tonnes/y. Fatty alcohols are used as feedstocks for the production of alcohol sulfate and alcohol ethoxylate surfactants. New developments are also discussed, such as ethoxylates from methyl esters and vegetable oils. ICIS Chemical Business Americas, 9 Oct 2006, (Website: http://www.icbamericas.com)

DECEMBER 2006