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Succinity starts up commercial production facility
F O C U S and Rennovia (p 2); and a round-up of some of the innovations from the recent in-cosmetics 2014 event in Hamburg. Caroline Edser
RAW MATERIALS Strains and weaknesses in the certified palm oil supply system The Roundtable on Sustainable Palm Oil (RSPO) reports that certified sustainable palm oil (CSPO) production is at around 9.6 M tonnes/y, representing 16% of worldwide production of crude palm oil. The RSPO trademark is now carried by 140 products, including soaps, face creams and detergents, across 25 countries. 8.2 M tonnes of CSPO were produced worldwide in 2012, achieving sales of 3.5 M tonnes or 42.5% of production. In Jan-Oct 2013, CSPO production was at 9.5 M tonnes with sales of only 2.9 M tonnes. The lack in demand is expected to affect RSPO producers, leading some to exit the market or reduce production levels. Cosmetics and food companies are urged to pledge to source sustainable palm oil to help the industry. To support the sustainable palm oil industry, a scheme, called GreenPalm, has been set up in the UK to allow cosmetics and other companies to pay for sustainable palm oil production while guaranteeing palm oil supplies. Demand for palm oil is significant in Asia, particularly in India, Indonesia and China, accounting for 38% of total demand, as compared with Europe’s 15%. Unilever has pledged that by 2020, all of its palm oil will come from traceable and certified sources. The company has invested $130 M for a processing plant in Indonesia to source palm oil from known and certified sources. Avon and L’Oreal are among others in the personal care sector to make similar commitments to sustainable palm oil sourcing. Original Source: SPC, Soap, Perfumery and Cosmetics, Feb 2014, 87 (2), 15 (Website: http://www.cosmeticsbusiness.com/) © HPCi Media Ltd 2014
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Asia’s fatty acids sector Asia’s fatty acid supply has surpassed demand due to the strong growth of the oleochemicals industry resulting from the tax incentives on crude palm oil. Regional capacity expansions in 2013 include the expansion of Indonesia-based Wilmar to approximately 700,000 tonnes/y and the expansion of Musim Mas to 600,000 tonnes/y. Some new Indonesian facilities were used for the processing of palm products instead of fatty acid fractionations, including Asian Agri (268,000 tonnes/y), KLK (170,000 tonnes/y) and VVF (117,000 tonnes/y). Pacific Oleochemicals, with capacity of 140,000-150,000 tonnes/y, was down for 2 months for facility upgrading. Asia’s demand for triple pressed stearic acids (TPSA) and mid-cut fatty acids declined due to the industrial slowdown in China, a major consumer of fatty acids. Upstream costs are unpredictable as a result of harsh weather, natural disasters and regional biodiesel feedstock competition. The low supply of palmitic acids (C16) since 4Q 2013 is caused by feedstock competition, poor demand for co-products, and high demand for animal feedstocks and palm stearin for biodiesel productions. Because of the low demand in Asia, regional fatty acid plants operated at close to 6070% in 2013. The price of mid-cut lauric acids (C12) increased by approximately $450/tonne, while myristic acid (C14) prices increased by nearly $485/tonne at the end of Mar 2014 compared to prices prior to typhoon Yolanda in the Philippines. The uptrend was restrained due to the slow demand from China, where buyers resisted the price increases. The supply of fatty acids may be affected by feedstock competition among new start-ups in fatty alcohols and regional biodiesel production. Further expansions and new start-ups in southeast Asia in 2014-2015 will lead to tough profitability and competitive pricing. Original Source: ICIS Chemical Business, 14-20 Apr 2014, 285 (15), (Website: http://www.icis.com) © Reed Business Information Limited 2014
Succinity starts up commercial production facility Succinity GmbH, the joint venture between Corbion Purac and BASF
[Focus on Surfactants, December 2012], has announced the successful start-up of its first commercial production facility. The plant, located at the Corbion Purac site in Montmelo, Spain, has a capacity of 10,000 tonnes/y and is producing commercial quantities of bio-based succinic acid for the global market. In addition to this first facility, Succinity plans a second large-scale facility, dependent on a successful market introduction. The closed-loop Succinity process is based on renewable raw materials and fixes carbon dioxide. The proprietary microorganism Basfia succiniciproducens allows for a flexible usage of different feedstocks. An elaborate downstream processing method ensures the production of high-quality bio-based succinic acid, featuring a significantly improved carbon footprint compared to conventional, fossil-based succinic acid or other dicarboxylic acids. The biobased product has significant market potential in the chemical intermediates market, the company says. Original Source: BASF, 2014. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 6 Mar 2014, (Website: http://www.specialchem4cosmetics.com)
JM Davy and Rennovia develop bio-based glucaric and adipic acids Johnson Matthey Davy Technologies Ltd (JM Davy), a global provider of advanced process technologies, and Rennovia Inc, a development-stage company focused on the production of commodity and speciality chemicals from renewable plantbased feedstocks, are embarking on a collaboration with the goal of developing and jointly licensing a technology package enabling commercial production of bio-based glucaric and adipic acids. The firms will work together to develop and demonstrate the processes based on Rennovia’s non-fermentation technology for the catalytic aerobic oxidation of bio-sourced glucose to glucaric acid, as well as the catalytic hydrogenation of glucaric acid to adipic acid. The partners anticipate delivering technology capable of producing a bio-based adipic acid equivalent to the conventional petroleum-based product, at a lower cost and with a significantly improved JUNE 2014
RAW MATERIALS Strains and weaknesses in the certified palm oil supply system The Roundtable on Sustainable Palm Oil (RSPO) reports that certified sustainable palm oil (CSPO) production is at around 9.6 M tonnes/y, representing 16% of worldwide production of crude palm oil. The RSPO trademark is now carried by 140 products, including soaps, face creams and detergents, across 25 countries. 8.2 M tonnes of CSPO were produced worldwide in 2012, achieving sales of 3.5 M tonnes or 42.5% of production. In Jan-Oct 2013, CSPO production was at 9.5 M tonnes with sales of only 2.9 M tonnes. The lack in demand is expected to affect RSPO producers, leading some to exit the market or reduce production levels. Cosmetics and food companies are urged to pledge to source sustainable palm oil to help the industry. To support the sustainable palm oil industry, a scheme, called GreenPalm, has been set up in the UK to allow cosmetics and other companies to pay for sustainable palm oil production while guaranteeing palm oil supplies. Demand for palm oil is significant in Asia, particularly in India, Indonesia and China, accounting for 38% of total demand, as compared with Europe’s 15%. Unilever has pledged that by 2020, all of its palm oil will come from traceable and certified sources. The company has invested $130 M for a processing plant in Indonesia to source palm oil from known and certified sources. Avon and L’Oreal are among others in the personal care sector to make similar commitments to sustainable palm oil sourcing. Original Source: SPC, Soap, Perfumery and Cosmetics, Feb 2014, 87 (2), 15 (Website: http://www.cosmeticsbusiness.com/) © HPCi Media Ltd 2014
2
O N
S U R FA C TA N T S
Asia’s fatty acids sector Asia’s fatty acid supply has surpassed demand due to the strong growth of the oleochemicals industry resulting from the tax incentives on crude palm oil. Regional capacity expansions in 2013 include the expansion of Indonesia-based Wilmar to approximately 700,000 tonnes/y and the expansion of Musim Mas to 600,000 tonnes/y. Some new Indonesian facilities were used for the processing of palm products instead of fatty acid fractionations, including Asian Agri (268,000 tonnes/y), KLK (170,000 tonnes/y) and VVF (117,000 tonnes/y). Pacific Oleochemicals, with capacity of 140,000-150,000 tonnes/y, was down for 2 months for facility upgrading. Asia’s demand for triple pressed stearic acids (TPSA) and mid-cut fatty acids declined due to the industrial slowdown in China, a major consumer of fatty acids. Upstream costs are unpredictable as a result of harsh weather, natural disasters and regional biodiesel feedstock competition. The low supply of palmitic acids (C16) since 4Q 2013 is caused by feedstock competition, poor demand for co-products, and high demand for animal feedstocks and palm stearin for biodiesel productions. Because of the low demand in Asia, regional fatty acid plants operated at close to 6070% in 2013. The price of mid-cut lauric acids (C12) increased by approximately $450/tonne, while myristic acid (C14) prices increased by nearly $485/tonne at the end of Mar 2014 compared to prices prior to typhoon Yolanda in the Philippines. The uptrend was restrained due to the slow demand from China, where buyers resisted the price increases. The supply of fatty acids may be affected by feedstock competition among new start-ups in fatty alcohols and regional biodiesel production. Further expansions and new start-ups in southeast Asia in 2014-2015 will lead to tough profitability and competitive pricing. Original Source: ICIS Chemical Business, 14-20 Apr 2014, 285 (15), (Website: http://www.icis.com) © Reed Business Information Limited 2014
Succinity starts up commercial production facility Succinity GmbH, the joint venture between Corbion Purac and BASF
[Focus on Surfactants, December 2012], has announced the successful start-up of its first commercial production facility. The plant, located at the Corbion Purac site in Montmelo, Spain, has a capacity of 10,000 tonnes/y and is producing commercial quantities of bio-based succinic acid for the global market. In addition to this first facility, Succinity plans a second large-scale facility, dependent on a successful market introduction. The closed-loop Succinity process is based on renewable raw materials and fixes carbon dioxide. The proprietary microorganism Basfia succiniciproducens allows for a flexible usage of different feedstocks. An elaborate downstream processing method ensures the production of high-quality bio-based succinic acid, featuring a significantly improved carbon footprint compared to conventional, fossil-based succinic acid or other dicarboxylic acids. The biobased product has significant market potential in the chemical intermediates market, the company says. Original Source: BASF, 2014. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 6 Mar 2014, (Website: http://www.specialchem4cosmetics.com)
JM Davy and Rennovia develop bio-based glucaric and adipic acids Johnson Matthey Davy Technologies Ltd (JM Davy), a global provider of advanced process technologies, and Rennovia Inc, a development-stage company focused on the production of commodity and speciality chemicals from renewable plantbased feedstocks, are embarking on a collaboration with the goal of developing and jointly licensing a technology package enabling commercial production of bio-based glucaric and adipic acids. The firms will work together to develop and demonstrate the processes based on Rennovia’s non-fermentation technology for the catalytic aerobic oxidation of bio-sourced glucose to glucaric acid, as well as the catalytic hydrogenation of glucaric acid to adipic acid. The partners anticipate delivering technology capable of producing a bio-based adipic acid equivalent to the conventional petroleum-based product, at a lower cost and with a significantly improved JUNE 2014