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Profile of linear alkylbenzene in the US
FOCUS now of natural origin (the remainder derived from petrochemical and coalbased sources). Fatty alcohol (ether) sulfates and fatty alcohol ethoxylates are major bulk surfactants types all derived from the lauric oils. Demand for fatty alcohol surfactants has grown rapidly since the early 1990s, and growth is forecast to continue. According to Brackmann and Hager, drivers for growth include the general growth in consumer products, the adoption of western hygiene practices by developing countries, the preference for natural-based products in personal care and the increased focus on ‘sustainable development’. While both papers concluded that use of fatty alcohol-based surfactants, whether oleochemical or petrochemical in source, will continue to grow because of their versatile properties, they also highlighted that true sustainable development will only be realized if a balance between economic, social AND environmental aspects is achieved. Whilst ‘sustainable’, ‘renewable’ and ‘natural’ are used as buzzwords to promote oleochemicals, the issues of biodiversity and habitat loss are frequently glossed over. The noted quadrupling in output of natural oils and fats in the past 40 years comes as a result of rapid and frequently uncontrolled deforestation in favour of plantation monocultures, which is seriously affecting the natural habitat in many areas. Until these issues are addressed in a balanced fashion, oleochemicals will not be able to claim a genuine environmental label. Caroline Edser
RAW MATERIALS Linear alkylbenzene Profile of linear alkylbenzene in the US US demand for linear alkylbenzene (LAB) was 585 M lbs in 2002, 530 M lbs in 2003 and is forecast at 540 M lbs for 2007. Demand growth was –0.5%/y from 1998 to 2003, and is forecast at zero through 2007. The 2
ON
S U R FA C TA N T S
four main US LAB plants have combined capacity of 1240 M lbs/y. 99% of LAB is used for the production of linear alkylbenzene sulfonates (detergents). Chemical Market Reporter, 20 Sep 2004 (Website: http://www.chemicalmarketreporter.com)
UJS looks to EU UJS, a manufacturer of LAB in Damascus, Syria, is looking at Europe as a destination for its 30,000 tonnes/y UOP standard output. The company’s LAB plant was commissioned earlier this year [Focus on Surfactants, Apr 2004]. European Chemical News, 20 Sep 2004, 81 (2116), 7
Cepsa to invest €3.6 M during 20042008 Cepsa, headquartered in Spain, will undertake various important projects during 2004-2008, investing a total of €3.6 M. The work will include boosting plant safety and improving product quality at its refining and petrochemicals facilities. The company aims to maintain its position in international LAB markets and to modernize its phenol production in response to rising demand. The company’s Petresa subsidiary has LAB plants in Spain, Canada and Brazil.
Golden Hope facts at a glance Golden Hope employs around 12,000 people and owns 17 palm oil mills. It has refineries in Malaysia, Vietnam, China, Bangladesh and the Netherlands, as well as a distribution centre in Germany. Golden Hope owns 50% of the oleochemicals producer, Cognis, in Malaysia. For the year ending Jun 2003 Golden Hope produced 438,796 tonnes crude palm oil and 108,484 tonnes palm kernel oil. 80% of output is used in Malaysia for cooking oils and shortenings, with the remaining 20% sold on the domestic market or internationally. Overall pre-tax profit for Golden Hope during 2003 amounted to $94.8 M. Golden Hope has established a new Oils & Fats division integrating all of the company’s refining activities, including Netherlands-based Unimills BV. Future growth for Golden Hope is expected to come from Eastern Europe and Russia, as well as China and India, which currently import around 9 M tonnes oils and fats. Golden Hope’s new CEO Sabri Ahmad, appointed in Jan 2004, is intent on developing the company’s downstream activities in marketing, distribution and R&D, to support its upstream plantation and refining business. Oils and Fats International, 1 Sep 2004, 20 (5), 37,39
Oilgas, Jul/Aug 2004, 37 (428), 20 (in Spanish)
Alkoxylates/other
Oleochemicals
BASF and Dow to commercialize innovative HPPO technology
CPO price may ease to Ringgit 1300/tonne
BASF AG and Dow Chemical are ready to jointly commercialize the new innovative hydrogen peroxide to propylene oxide (HPPO) technology. The two firms are proceeding with plans to construct a world-scale HPPO plant at BASF’s Verbund site in Antwerp, Belgium with initial capacity of 300,000 tonnes/y. Construction is scheduled to start in 2006, and the plant is expected to come on stream in 2008. The plant will serve the growing demand for PO derivatives, in particular in the polyurethane industry but also for a variety of applications including the production of textile surfactants. BASF and Dow combined their research efforts in the field of PO manufacturing on the basis of
Higher soyoil production in the US and a rise in global vegetable oil stocks are likely to reduce the crude palm oil (CPO) price to about Ringgit 1300/tonne during 1Q 2005 compared to over Ringgit 1500/tonne at present. However, the huge 20042005 soybean harvest forecast in the US and rapeseed production in Europe are expected to reduce soyoil price more than that of CPO. In 2004, Malaysia is planning to produce about 13.5-13.6 M tonnes of CPO, which is slightly higher than 13.4 M tonnes produced in 2003. The Star, 1 Oct 2004, (Website: http://www.thestar.com.my)
NOVEMBER 2004
RAW MATERIALS Linear alkylbenzene Profile of linear alkylbenzene in the US US demand for linear alkylbenzene (LAB) was 585 M lbs in 2002, 530 M lbs in 2003 and is forecast at 540 M lbs for 2007. Demand growth was –0.5%/y from 1998 to 2003, and is forecast at zero through 2007. The 2
ON
S U R FA C TA N T S
four main US LAB plants have combined capacity of 1240 M lbs/y. 99% of LAB is used for the production of linear alkylbenzene sulfonates (detergents). Chemical Market Reporter, 20 Sep 2004 (Website: http://www.chemicalmarketreporter.com)
UJS looks to EU UJS, a manufacturer of LAB in Damascus, Syria, is looking at Europe as a destination for its 30,000 tonnes/y UOP standard output. The company’s LAB plant was commissioned earlier this year [Focus on Surfactants, Apr 2004]. European Chemical News, 20 Sep 2004, 81 (2116), 7
Cepsa to invest €3.6 M during 20042008 Cepsa, headquartered in Spain, will undertake various important projects during 2004-2008, investing a total of €3.6 M. The work will include boosting plant safety and improving product quality at its refining and petrochemicals facilities. The company aims to maintain its position in international LAB markets and to modernize its phenol production in response to rising demand. The company’s Petresa subsidiary has LAB plants in Spain, Canada and Brazil.
Golden Hope facts at a glance Golden Hope employs around 12,000 people and owns 17 palm oil mills. It has refineries in Malaysia, Vietnam, China, Bangladesh and the Netherlands, as well as a distribution centre in Germany. Golden Hope owns 50% of the oleochemicals producer, Cognis, in Malaysia. For the year ending Jun 2003 Golden Hope produced 438,796 tonnes crude palm oil and 108,484 tonnes palm kernel oil. 80% of output is used in Malaysia for cooking oils and shortenings, with the remaining 20% sold on the domestic market or internationally. Overall pre-tax profit for Golden Hope during 2003 amounted to $94.8 M. Golden Hope has established a new Oils & Fats division integrating all of the company’s refining activities, including Netherlands-based Unimills BV. Future growth for Golden Hope is expected to come from Eastern Europe and Russia, as well as China and India, which currently import around 9 M tonnes oils and fats. Golden Hope’s new CEO Sabri Ahmad, appointed in Jan 2004, is intent on developing the company’s downstream activities in marketing, distribution and R&D, to support its upstream plantation and refining business. Oils and Fats International, 1 Sep 2004, 20 (5), 37,39
Oilgas, Jul/Aug 2004, 37 (428), 20 (in Spanish)
Alkoxylates/other
Oleochemicals
BASF and Dow to commercialize innovative HPPO technology
CPO price may ease to Ringgit 1300/tonne
BASF AG and Dow Chemical are ready to jointly commercialize the new innovative hydrogen peroxide to propylene oxide (HPPO) technology. The two firms are proceeding with plans to construct a world-scale HPPO plant at BASF’s Verbund site in Antwerp, Belgium with initial capacity of 300,000 tonnes/y. Construction is scheduled to start in 2006, and the plant is expected to come on stream in 2008. The plant will serve the growing demand for PO derivatives, in particular in the polyurethane industry but also for a variety of applications including the production of textile surfactants. BASF and Dow combined their research efforts in the field of PO manufacturing on the basis of
Higher soyoil production in the US and a rise in global vegetable oil stocks are likely to reduce the crude palm oil (CPO) price to about Ringgit 1300/tonne during 1Q 2005 compared to over Ringgit 1500/tonne at present. However, the huge 20042005 soybean harvest forecast in the US and rapeseed production in Europe are expected to reduce soyoil price more than that of CPO. In 2004, Malaysia is planning to produce about 13.5-13.6 M tonnes of CPO, which is slightly higher than 13.4 M tonnes produced in 2003. The Star, 1 Oct 2004, (Website: http://www.thestar.com.my)
NOVEMBER 2004