Oleochemical industry fears loss of key raw material to biodiesel

Oleochemical industry fears loss of key raw material to biodiesel

FOCUS growing biodiesel sector threatens the availability of basic raw materials such as beef tallow for the manufacture of cleaning products (p 2). I...

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FOCUS growing biodiesel sector threatens the availability of basic raw materials such as beef tallow for the manufacture of cleaning products (p 2). It petitioned the EPA to restrict the use of animal fats for biodiesel manufacturing but its pleas appear to have fallen on deaf ears, at least as far as 2013 quotas are concerned. In Europe, similar issues around biofuels are currently under debate by the European Commission. Caroline Edser

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result, they are being increasingly preferred over petrochemicals for use in products such as cosmetics and detergents. Their benefits are also underlining their appeal to an expanding application base ranging from plastics and personal care to soaps and detergents, food, pharmaceuticals, coatings and rubber. Overcapacity and fluctuating prices of common raw materials (eg tallow, soybean oil, palm and palm kernel oil, coconut oil, and rapeseed oil), used in the manufacture of oleochemicals, are the two major challenges constraining market growth. Original Source: Frost & Sullivan, 2012. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 3 Dec 2012, (Website: http://www.specialchem4cosmetics.com)

Linear alkylbenzene

Oleochemical industry fears loss of key raw material to biodiesel

Egypt LAB to expand capacity

Trade association American Cleaning Institute (ACI) blames the steady growth of the biodiesel industry in the past decade for curtailing supplies and raising the prices of animal fats such as beef tallow used as a source of fatty acids and fatty alcohols to produce cleaning and personal care products. However, federal policies including tax credits and guaranteed markets under the Renewable Fuel Standard have caused the diversion of animal fats to biofuel production. The Environmental Protection Agency (EPA) estimates that roughly 270-280 M gallons of the 1.28 bn gallon biodiesel requirement in 2013 will be produced using recycled cooking oil and animal fats. ACI called on the EPA to restrict the use of animal fats for biodiesel manufacturing. However, the EPA says in its final decision on the 2013 biodiesel requirement that it cannot prevent raw materials that meet the statutory definition of renewable biomass from being utilized in renewable fuel production.

Egyptian linear alkylbenzene (LAB) maker Egypt LAB Co intends to lift its LAB capacity in Alexandria, Egypt by 40% to 140,000 tonnes/y by end 2014. The firm has chosen to use UOP’s solid-state catalyst process for the expanded capacity. The company closed its existing 100,000 tonne/y LAB facility for maintenance in midDec 2012 with the intention of reopening the unit on 1 Jan 2013. Original Source: ICIS Chemical Business, 17 Dec 2012, (Website: http://icischemicalbusiness.com) © Reed Business Information Limited 2012

Oleochemicals European oleochemicals market to hit $4.5 bn by 2018 The European oleochemicals market earned revenues of $3.9 bn in 2011 and is projected to top $4.5 bn by 2018, corresponding to a CAGR of 1.9% (2011-2018), according to a report by Frost & Sullivan, Analysis of the European Oleochemicals Market. Oleochemicals and their derivatives have gained significance because of their functional efficiency, performance, sustainability and biodegradability, the report says. Oleochemicals are helping consumer product manufacturers adhere to REACH regulations and reduce their carbon footprint. The naturally sourced chemicals also ensure a higher degree of product safety. As a 2

Original Source: Chemical and Engineering News, 19 Nov 2012, 90 (47), 32-34 (Website: http://www.cenonline.org) © American Chemical Society 2012

Alkoxylates/other New PO projects for Huntsman/Sinopec & Shell/SABIC but Evonik jv scrapped Huntsman Corp has entered into a joint venture (jv) agreement with Sinopec Jinling Co, a subsidiary of

Sinopec. The jv, Nanjing Jinling Huntsman New Materials Co Ltd, will build and operate a world-scale propylene oxide (PO) and methyl tertiary butyl ether (MTBE) facility in Nanjing, China. The facility is expected to be completed by the end of 2014 and will utilize Huntsman’s proprietary PO/MTBE manufacturing technology. Huntsman will own 49% of the jv. The facility will produce 550 M pounds/y (250,000 tonnes/y) of PO and 1.6 bn pounds of MTBE at a capital cost of about $750 M. Elsewhere, Shell and SABIC are to establish a PO plant at the companies’ existing Saudi Petrochemical jv in Jubail Industrial City, Saudi Arabia. However, a proposed joint project between Evonik and India’s Gujarat Alkalis and Chemicals (GACL) for the construction of a unit to make PO from hydrogen peroxide has been abandoned after disagreement about the ownership stakes each partner would hold on the jv. GACL is now looking for a different partner for a similar project. Original Source: Huntsman Corporation, 2012. Found on PR Newswire, 13 Nov 2012, (Website: http://www.prnewswire.com). Original Source: Chemical and Engineering News, 19 Nov 2012, 90 (47), 8 (Website: http://www.cen-online.org) © American Chemical Society 2012. Original Source: Chimie Pharma Hebdo, 3 Dec 2012, (614), 7 (Website: http://www.industrie.com/chimie/) (in French) © ETAI Information 2012

Frost & Sullivan finds huge potential for lignin as future renewable resource Lignin could become the main renewable aromatic resource for the chemical industry in the future, with markets worth more than $130 bn, according to a Frost & Sullivan (F&S) representative. The first opportunity could emerge as early as 2015 from the direct substitution of phenol in most of its industrial applications, including phenolic resins, surfactants, epoxy resins, adhesives and polyester. F&S is exploring several lignin applications in the petrochemical industry, which is said to hold the highest capacity to accelerate the emergence of ligninbased chemicals. According to F&S, one of lignin’s unique strengths is that it can either be used directly as a ‘drop in’ to replace phenols in an existing petrochemical process, or it can be further processed to create polymer building blocks. Moreover, it FEBRUARY 2013