India's oleochemical industry and its global prospects

F O C U S leading to a likely EO surplus by 2016. According to Rightler, the USA ‘is in a perfect position’ to dominate near-term global growth in the manufacture of commodity EO derivatives such as alcohol ethoxylates. The markets for surfactant intermediates linear alkylbenzene (LAB) and detergent alcohols were covered by Joel Houston of Colin A Houston & Associates. Globally, capacity for LAB stands at about 3.7 M tonnes/y and demand at some 3 M tonnes/y, while for C12+ alcohols (both petro- and oleo-derived) capacity is around 3.3 M tonnes/y and demand about 2.5 M tonnes/y. Asia houses almost 50% of current capacity for both types of intermediate. Alternative, renewable feedstock options for both LAB and C12+ alcohols were also considered. Darrel Webber added to the discussion of renewable feedstocks with his presentation on the work of the Roundtable on Sustainable Palm Oil and the certification scheme it has developed [see also Focus on Surfactants, Dec 2013]. Concluding this section, Nikola Matic of Kline updated and extended his analysis of speciality surfactants in personal care from his presentation at the 1st ICIS European Surfactants Conference [ibid, Jun 2013] to provide the global picture for this sector, and Judith Taylor of ICIS Americas outlined some analysis of the key surfactants and feedstocks that are covered weekly by the company in its pricing reports. The upcoming 4th ICIS World Surfactants Conference, to be held in the USA in May (p 8), will continue this examination of the outlook for the surfactants industry. This time the second day of the meeting is to be devoted to non-detergent and personal care applications for surfactants. Caroline Edser

RAW MATERIALS Oleochemical opportunities In FY 2013, the estimated global market for oleochemicals was 14 M 2

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tonnes. Over the next five years, expected growth is 6%/y to 18 M tonnes in 2018. The market share of the Asia Pacific market, which is expected to expand by 8%/y over the next five years, was 68% in FY 2013. The biggest end-use applications are personal care, home care and surfactants. REACH-like regulations and demand for sustainable and biodegradable products are the main drivers for innovations and growth in the oleochemicals industry. By 2020, the biolubricants and lubricants markets are predicted to increase from 1.2 M tonnes to 4 M tonnes and from 38 M tonnes to 45 M tonnes, respectively. Cargill, for example, has seen this opportunity and has developed a soybean oil-based electrical insulation fluid. The biopolymers market is also projected to grow by 40%/y to about 20 M tonnes by 2020. In surfactants, methyl ether sulfonate (MES), a linear alkylbenzene sulfonate (LABS) substitute, is also projected to grow to 1.2 M tonnes by 2020 and replace a third of the demand for LABS, which is currently around 3 M tonnes. Asia, led by Malaysia and Indonesia, has become both a major producer (60%) and consumer (68%) of oleochemicals. Investments from major firms have poured into Asia as a result. Original Source: Speciality Chemicals, Oct 2013, 33 (10), (Website: http://www.specchemonline.com) © Quartz Business Media Ltd 2013

Crude palm oil to trade at Ringgit 2950 in 2014 According to UOB Kay Hian Malaysia Research, crude palm oil (CPO) is expected to average Ringgit 2950 (€650) per tonne in 2014 due to lower inventory level, tight supply and increased demand. The inventory of palm oil in Malaysia decreased by 24.4% year on year in 2013. The Malaysian Palm Oil Board reports that production of CPO in 2013 increased by 2.3% year on year to 19.2 M tonnes. CPO production in the country is forecast to increase to 19.4-19.5 M tonnes in 2014 due to improvement in yields. Malaysia accounts for some 35% of the worldwide production of palm oil and 43% of total exports. The Malaysian

government adjusted the CPO export duty to 5% in Dec 2013, from the previous level of 4.5% set in Mar 2013. Original Source: The Star, 13 Jan 2014 & 10 Dec 2013, (Website: http://thestar.com.my) © Star Publications (M) Bhd 2014

India’s oleochemical industry and its global prospects The global oleochemical market is projected to increase from 13 M tonnes to 15 M tonnes by 2018, at a compound annual growth rate (CAGR) of 6%. Almost 68% of oleochemicals produced and more than 60% of the worldwide capacity for these chemicals comes from the Asia Pacific region. The global market for fatty acids currently stands at around 6.5 M tonnes, with installed capacities of 8 M tonnes/y. The overall market for fatty alcohols is estimated to be around 3.3 M tonnes and is expected to reach almost 5.2 M tonnes by 2025 at a CAGR of 4.9%. The demand for oleoalcohols currently stands at around 2.2 M tonnes, while the supply of these chemicals is 3.5 M tonnes/y. The refined glycerine market is expected to increase from around $1.4 bn in 2011 to around $2.1 bn by 2018. The Indian market for fatty acids, fatty alcohols and glycerine is outlined. The global market for fatty acids used in three general product applications is compared for 2012 and 2017. The market for fatty acid derivatives from soft oils is expected to expand from $3.3 bn in 2012 to $6.5 bn in 2017. The demand for fatty acids used in personal care, cleansing products, polymers and rubber is also forecast to grow, from $2.9 bn to $5.2 bn. The market for fatty acids used in other industry applications should also increase, from $0.8 bn to $1.3 bn. The soap production industry consumes the largest amount of fatty acids worldwide (37%), followed by derivatives (22%) and polymers (20%). The coatings (27%) and personal/oral care industries (27%) account for the largest shares of the Indian glycerine market, followed by pharmaceuticals (16%) and other end-uses (11%). Skin care products contribute the largest share in the global personal care market (29%), MARCH 2014

F O C U S followed by the hair care (21%), make-up (15%) and toiletries (15%) sectors. Original Source: Chemical Weekly, 17 Dec 2013, 183186 (Website: http://www.chemicalweekly.com) © Sevak Publications & Chemical Weekly Database P Ltd 2013

Codexis withdraws from detergent alcohols In its 3Q 2013 earnings report, Codexis revealed that it had stopped further development of its CodeXol detergent alcohols franchise earlier in the year and had now also decided to drop its CodeXyme cellulase enzyme business. As recently as Jun 2013, the company reported the successful scale-up of CodeXol detergent alcohols production at partner Chemtex’s demonstration facility in Italy [Focus on Surfactants, Aug 2013]. However, Codexis subsequently ran into problems with enzymes producer Dyadic over an alleged breach of its licensing agreement. The company also cited difficulties in finding a partnership for the cellulase enzymes business. Codexis will now focus on its biocatalysis business, which aims to develop enzymes that make pharmaceutical and chemical manufacturing more cost-effective and efficient. Original Source: Codexis Inc, Redwood City, CA, USA, website: http://www.codexis.com (12 Nov 2013) © Codexis, Inc 2013

Solazyme and Sasol finalize algal oil deal In Aug 2013, US-based Solazyme finalized commercial terms for supplying an algal oil rich in erucic acid (C22:1ω9) to Sasol Olefin & Surfactants GmbH. The oil is being developed at Solazyme for the production of downstream derivatives, such as behenyl alcohol for various applications including paper, water treatment, personal care, lubricants, oil and gas, paints, inks, coatings and adhesives. The multi-year agreement covers binding minimums and increasing supply quantities of tailored algal oil for products being developed at Solazyme’s manufacturing facility at Clinton, IA, USA, or at Solazyme’s partner facilities, including Brazil-based Solazyme Bunge Renewable Oils. MARCH 2014

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Pricing will be competitive and based on Solazyme’s raw material costs. Sasol and Solazyme are also seeking to explore a broad collaboration into the so-called tailored oils, including joint manufacturing and marketing of certain products. Meanwhile, in early 2013, Solazyme formed a partnership with Mitsui to develop algae-based special triglyceride oils for oleochemical applications [Focus on Surfactants, Apr 2013]. Solazyme is also collaborating with AkzoNobel for the development of algae-based advanced tailored oils for the global surfactants and paints & coatings industries, which are expected to enter the market in 2014 [ibid, Jul 2013]. Moreover, Solazyme dissolved its food ingredients joint venture with Roquette Freres which started in Nov 2010. Original Source: Oils and Fats International, Oct-Nov 2013, 29 (8), 12 (Website: http://www.oilsandfatsinternational.com) © Quartz Business Media Ltd 2013. Original Source: SPC, Soap, Perfumery and Cosmetics, Oct 2013, 86 (10), 81 (Website: http://www.cosmeticsbusiness.com/) © HPCi Media Ltd 2013

hazardous air pollutants (HAPs), alkylphenol ethoxylates (APEs) or volatile organic compounds (VOCs). Original Source: Air Products, website: http://www.airproducts.com/ (3 Dec 2013) © Air Products and Chemicals Inc 2013

BRCS announces partnership with EOC Surfactants to distribute DSS in the coatings & inks market Barentz Ravago Chemical Specialist (BRCS Group) has announced a distribution partnership with Belgium’s EOC Surfactants for their range of diethylhexyl sodium sulfosuccinate surfactants for the coatings and inks market. This collaboration covers the following territories: Belgium, the Netherlands, Luxembourg, Switzerland, Austria, France, Germany, Poland, Czech Republic, Slovak Republic, Bulgaria, Romania, Spain and Portugal. Original Source: BRCS Group, 2013. Found on SpecialChem Coatings and Inks Formulation, 30 Dec 2013, (Website: http://www.specialchem4coatings.com)

SURFACTANTS Air Products introduces highperformance surfactants and defoamer for waterborne formulations at China Coat 2013 Air Products launched two new premium siloxane superwetting surfactants and a new defoamer at the China Coat Show 2013 held on 20-22 Nov 2013 in Shanghai, China, to help formulators meet increasingly stringent environmental standards and improve product performance in waterborne formulations. Designed to maximize wetting of difficult-to-wet substrates for a wide range of aqueous formulations, Dynol 960 and Dynol 980 superwetting surfactants provide a superior balance of properties including equilibrium and dynamic wetting, system compati bility and low foam, compared to traditional siloxane surfactants. Air Products also launched its Airase 4500 defoamer which is a proprietary organic oil-based defoamer designed to eliminate foam and reduce pinholes and entrapped air in waterborne formulations. The new products contain no added

Colonial Chemical breaks ground on production expansion US speciality surfactants company Colonial Chemical, Inc has broken ground on a 15,000 ft2 expansion of its manufacturing facilities in New Hope, TN, USA. The company moved to Marion County in 1996, which allowed it to combine its management, manufacturing and research laboratories under one roof. Colonial says that the move also afforded it the ability to grow as a novel chemical manufacturer; it has expanded its facilities several times since its initial construction at the site. The latest expansion marks the largest single additional investment in Colonial’s production facilities, and comes in response to the growth it has experienced in its primary markets in the past few years, the company reports. “We see continued demand for our products, particularly our ‘green’ surfactants derived from natural resources, and we’re taking steps to ensure we stay ahead of that demand,” states David Anderson, president of Colonial Chemical. The company also recently introduced 3