THE CHEMICAL INDUSTRY

OUTLINE
1. 2. 3. 4. Structure of the Chemical Industry Raw Materials and Energy Base Chemicals Chemical Processes

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STRUCTURE OF THE CHEMICAL INDUSTRY

Raw materials are converted into products for other industries and consumers. Basic raw materials can be divided into:
organic, and inorganic.

Inorganic raw materials include:

air, water and minerals.

Fossil fuels and biomass belong to the class of organic raw materials.
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Structure of the chemical industry

About 85% of chemicals are produced from ~ 20 simple chemicals called base chemicals. Base chemicals produced from ~ 10 raw materials. Base chemicals converted to ~ 300 intermediates. Base chemicals and intermediates classified as bulk chemicals. About 30,000 consumer products are produced from intermediates.
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Structure of the chemical industry

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Where these chemicals go..

12 % of the cost of a car polyurethane seat cushions; neoprene hoses and belts; airbags and nylon seat restraints 10 % of the cost of a house
including the cost of important insulation pipes electrical wiring

10 % of what the average household consumer buys and uses every day food products clothing footwear health and personal care products household cleansers home entertainment equipment.

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Canadian Industry

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Consumer products from raw materials

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Structure of the chemical industry

Coal, oil and natural gas (NG) are the primary raw materials for production of most bulk chemicals. Each stage adds value:
Crude oil Fuel Typical petrochemical Typical consumer product

Relative value 1 2 10 50

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Overview of the petrochemical industry

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Structure of the chemical industry

First step in petrochemical industry is conversion of raw materials into base chemicals. Synthesis gas (H2 and CO) through steam reforming of NG ammonia or methanol. Lower alkenes through steam cracking of ethane or naphtha: ethene, propene, butadiene. Aromatics through steam cracking of ethane or naphtha or the catalytic reforming process: benzene, toluene, xylenes (BTX).
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Structure of the chemical industry

The second step involves a variety of chemical processes often aimed at introducing various hetero-atoms (O, Cl, S etc.) into the molecule. This leads to formation of intermediates such as: acetic acid, formaldehyde, acetaldehyde and monomers like acrylonitrile, terephthalic acid etc. The third step yields consumer products. The chemical industry can be conveniently divided into 7 sectors.
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World chemical market (1989)

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World chemical industry

World output $2.7 trillion
Americas 34% Asia/Pacific/Africa 32% Europe 34%

In 2000, there were 1,200 establishments operating in Canada. They employed approximately 72,500 employees.

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 In the USA, 70,000 chemical products in 12,000 plants, 95% in batch operations. Top five organic chemicals: ethylene, propylene, ethylene dichloride, methyl-tert-butyl-ether (MTBE), and vinyl chloride. Top inorganic chemicals: nitrogen, oxygen, chlorine, and sodium hydroxide.

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USA Petroleum Industry

USA has 163 operating refineries and 15.6 million barrels per day

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USA Chemicals Industry

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Canadian Chemicals Industry

Canadian Chemical Producers Association CCPA is the national trade association of Canadian chemical manufacturers, representing 70 companies (http://www.ccpa.ca/index_e.html)
Canada: $45.9 billion in shipments for 2006 (Stats Can), up 3.6% USA: $580 billion in shipments in 2006 up 5.3%

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C&E News Jan 8, 2007

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Canadian Chemical & Allied Industry Group

Canadian Association of Chemical Distributors (also have a formalized agreement) Canadian Consumer Specialty Products Association (also have a formalized agreement) Canadian Fertilizer Institute Canadian Paints and Coatings Association Canadian Plastics Industry Association CropLife Canada Rubber Association of Canada

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Canadian Chemical Industry Locations

Ontario 51% Alberta 22% Quebec 21% BC 3%

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www2.nrcan.gc.ca/es/es/energypicture/chap4_e.cfm

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www2.nrcan.gc.ca/es/es/energypicture/chap4_e.cfm

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www2.nrcan.gc.ca/es/es/energypicture/chap4_e.cfm

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www2.nrcan.gc.ca/es/es/energypicture/chap4_e.cfm

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RAW MATERIALS AND ENERGY

Raw materials and energy are closely related. Indeed, the main raw materials for the chemical industry are fossil fuels. These are also the most important sources of energy. Major energy source is oil (~40%), Coal (~ 26%), then NG (~ 21%). But reserves show a different picture!
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Total world energy consumption

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Fossil fuel reserves (reserves/production) for 1997

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Petrochemical share of world oil

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Energy and the chemical industry

A lot of energy is used in the chemical industry (~ same order as used for feedstock) About 8% of crude oil demand is used as raw material in the chemical industry: the balance is used for fuel production. 1. Fuels for direct heaters and furnaces:
often same as raw material, e.g. in steam reforming of NG, the NG is used for both feedstock and fuel. Fuel oil (a product of distillation) is often used to preheat feed to the crude oil fractionator.
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Energy and the chemical industry

2. Steam:
Usually most important utility system. Used for process heating, a reactant, & in distillation. It is used saturated, wet or superheated. Steam used is replaced by treated make-up water. Steam used at 3 pressures levels: Operating Conditions Saturation Pressure (bar) Temp (K) Temp (K) HP 40 683 523 MP 10 493 453 LP 3 463 407
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Steam/power generation

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Steam saturation temp. vs pressure

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Energy and the chemical industry

3. Electricity:
Can be generated in-plant or purchased from utility. Reduction of energy costs by generation of power onsite with steam turbines and process heating with exhaust gases. Often economical to drive large compressors with steam. Co-generation (electricity and local/district heating). Integrated coal gasification combined cycle (ICGCC) power generation ( is 41-43% vs 34-35% for PF / steam turbine).
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ICGCC

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BASE CHEMICALS
Most important base chemicals are the lower alkenes (ethene, propene and butadiene), the aromatics (BTX), NH3 and CH3OH. Syngas (a mixture of H2 & CO) can be used as a base chemical feedstock (e.g. Fischer-Tropsch). Most chemicals can be produced directly or indirectly from these building blocks. Feedstock depends on location & production unit.
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Lower Alkenes from oil

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Lower Alkenes from NG

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Aromatics production

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Ammonia and methanol production

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Business-cash flowchart

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CHEMICAL PROCESSES
Various disciplines are integrated in chemical process technology. They can be divided according to their scale: scale independent
Microlevel Mesolevel Macrolevel

Villermaux shows the discipline of ChE in an enlightening way.

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Chemical processes: what we need to know

Which reactions are involved? What are the the phases, thermodynamics, kinetics and operating conditions (T & P)? Is a catalyst used and if so is regeneration needed? Is gas or liquid recycle needed? Do we need to purify the feed? How are the products separated? What are the HSE & sustainability issues? Can different operations be integrated in one piece of equipment (process intensification)? What are the economics (comparison between processes)?
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Petroleum Industry Technologies

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Chemicals Industry Technologies

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Levels of development

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Process development and levels of integration

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Space and time scales

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