Detergent Alcohols December 2014 Report Contents Detergent Alcohols Table of Contents A Report by NexantThinking™ Process Evaluation/Research Planning (PERP) Program PERP Report 2014S10– Published December 2014 www.nexantthinking.com Section Page 1 Executive Summary ............................................................................................................... 1 1.1 TECHNOLOGY OVERVIEW ..................................................................................... 2 1.1.1 Synthetic Routes .......................................................................................... 2 1.1.2 Natural Routes ............................................................................................. 6 1.2 PROCESS ECONOMICS OVERVIEW ..................................................................... 10 1.3 MARKET OVERVIEW ............................................................................................... 13 1.3.1 Applications of Detergent Range Alcohols ................................................... 13 1.3.2 Demand ........................................................................................................ 14 1.3.3 Supply .......................................................................................................... 15 1.3.4 Supply, Demand, and Trade ........................................................................ 16 1.3.5 Global Trade ................................................................................................. 16 2 Introduction ............................................................................................................................. 18 2.1 THE ROLE OF DETERGENT ALCOHOLS IN THE INDUSTRY .............................. 18 2.2 VALUE CHAIN ANALYSIS ........................................................................................ 20 2.3 TECHNOLOGY OVERVIEW ..................................................................................... 21 2.3.1 Synthetic Route Overview ............................................................................ 21 2.3.2 Natural Route Overview ............................................................................... 22 3 Technologies Based on Synthetic Routes ............................................................................. 24 3.1 OVERVIEW ............................................................................................................... 24 3.2 PROCESS CHEMISTRY ........................................................................................... 24 3.2.1 Hydroformylation .......................................................................................... 24 3.2.2 Ziegler Process ............................................................................................ 27 3.3 ALCOHOLS PRODUCED VIA OLEFIN HYDROFORMYLATION ............................ 28 3.3.1 Conventional Oxo Alcohol Process .............................................................. 28 3.3.2 Shell’s Modified Oxo Process ...................................................................... 33 PERP PROGRAM 1 www.nexantthinking.com PERP 2014S10, Detergent Alcohols A00101.0014.4118 Detergent Alcohols December 2014 Report Contents 3.4 ALCOHOLS PRODUCED VIA ZIEGLER PROCESSES .......................................... 36 3.4.1 Overview ...................................................................................................... 36 3.4.2 Alfol Process ................................................................................................ 36 3.4.3 Epal Process ................................................................................................ 37 3.5 DEVELOPMENTS IN THE SYNTHETIC ROUTES .................................................. 39 4 Technologies Based on Natural Routes ................................................................................. 40 4.1 OVERVIEW ............................................................................................................... 40 4.2 NATURAL OIL FEEDSTOCK .................................................................................... 40 4.2.1 Palm Kernel Oil (PKO) ................................................................................. 41 4.2.2 Coconut Oil (CNO) ....................................................................................... 42 4.3 PROCESS CHEMISTRY ........................................................................................... 42 4.3.1 Methyl Ester Route ....................................................................................... 42 4.3.2 Fatty Acid Route ........................................................................................... 44 4.4 LURGI TECHNOLOGY ............................................................................................. 45 4.4.1 Historical Developments – Direct Hydrogenation of Fatty Acids ................. 45 4.4.2 Production of Fatty Alcohols via Methyl Esters using a Fixed Bed Process ........................................................................................................ 48 4.4.3 Production of Fatty Alcohols via Wax Ester Route ...................................... 53 4.5 DAVY TECHNOLOGY .............................................................................................. 57 4.5.1 Production of Fatty Alcohols via Methyl Esters ............................................ 57 4.5.2 Developments in the Davy Process ............................................................. 61 4.6 OTHER TECHNOLOGIES AND DEVELOPMENTS IN NATURAL ROUTES .......... 62 4.6.1 Variation in the Methyl Ester Route .............................................................. 62 4.6.2 Production of Fatty Alcohols Based on Biosynthesis Route ........................ 64 5 Process Economics ................................................................................................................ 65 5.1 OVERVIEW ............................................................................................................... 65 5.2 COSTING BASIS ...................................................................................................... 65 5.2.1 Investment Basis .......................................................................................... 65 5.2.2 Pricing Basis ................................................................................................. 66 5.2.3 Cost of Production Basis .............................................................................. 66 5.3 PRODUCTION COST ESTIMATES .......................................................................... 67 5.3.1 Synthetic Alcohols ........................................................................................ 67 5.3.2 Natural Alcohols ........................................................................................... 83 5.4 SUMMARY OF COST ESTIMATES ......................................................................... 93 5.5 SENSITIVITY ANALYSIS OF COST OF PRODUCTION ......................................... 96 PERP PROGRAM 2 www.nexantthinking.com PERP 2014S10, Detergent Alcohols A00101.0014.4118 Detergent Alcohols December 2014 Report Contents 5.5.1 Sensitivity to Raw Material Price .................................................................. 96 5.5.2 Sensitivity to Capacity .................................................................................. 97 6 Regional Market Analysis ....................................................................................................... 99 6.1 GLOBAL SUMMARY ................................................................................................. 99 6.1.1 Applications of Detergent Range Alcohols ................................................... 99 6.1.2 Demand ........................................................................................................ 100 6.1.3 Supply .......................................................................................................... 100 6.1.4 Supply, Demand, and Trade ........................................................................ 101 6.1.5 Global Trade ................................................................................................. 102 6.2 NORTH AMERICA .................................................................................................... 103 6.2.1 Demand ........................................................................................................ 103 6.2.2 Supply .......................................................................................................... 103 6.2.3 Supply, Demand, and Trade ........................................................................ 103 6.3 WESTERN EUROPE ................................................................................................ 105 6.3.1 Demand ........................................................................................................ 105 6.3.2 Supply .......................................................................................................... 105 6.3.3 Supply, Demand, and Trade ........................................................................ 106 6.4 SOUTHEAST ASIA ................................................................................................... 106 6.4.1 Demand ........................................................................................................ 106 6.4.2 Supply .........................................................................................................