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World Market Analysis of Glycerine

Prepared by F&S Chemicals, Materials & Food Team, 2005
2005 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan.
No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
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Agenda
1. Research Objectives
2. Production Routes
3. Production of Glycerine Market Trends
4. Units & Revenues by Region, 2004
5. Unit Forecasts by Region, 2011
6. World Glycerine Market - Units and Revenues Forecasts (2001 2011)
7. Price Trends & ssues
8. Market Shares of Key ndustry Participants
9. Demand Analysis
10. Key Challenges Facing the Glycerine Market
11. Market Drivers
12. Market Restraints
13. Capacity & Demand Trends Future Scenario
14. Supply, Demand & Price Trends Future Scenario
15. Glycerine Oversupply Problem and Solutions - An Analysis
16. Evolving Biorefinery Concept & New Opportunities for Glycerine
17. Strategic Conclusions
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ntroduction
Frost & Sullivan has undertaken an assessment of World Glycerine Market
This presentation highlights some key findings from this report.
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Production Route Synthetic Glycerine
PropyIene
ChIorine
+
AIIyI chIoride
Sodium hypochIorite
DichIorohydrin
CaIcium
hydroxide
EpichIorohydrin
Demand for synthetic glycerine has declined considerably due to the availability of natural
glycerine at competitive prices.
Synthetic glycerine accounted for less than 5 percentage of the total glycerine production
in 2004.
Synthetic glycerine producers find that converting epichlorohydrin to epoxy resin is more
profitable
+
HydrochIoric Acid
+ CaIcium chIoride
AIkaIine
HydroIysis
GIycerine
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Production Routes Natural Glycerine*
VegetabIe OiIs / AnimaI Fats
Fatty Acids
+
GIycerine
MethyI esters
+
GIycerine
Soap NoodIes
+
GIycerine
HydroIysis
Trans- esterification
Saponification
* GIycerine produced by fermentation methods is not incIuded in this study.
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Glycerine Sourcing - Changing Market Trends
2004
Fatty acids
49%
Fatty
alcohols
12%
Soaps
13%
Biodiesel
18%
Others
4%
Synthetic
4%
1999
Fatty acids
41%
Fatty
alcohols
13%
Soaps
25%
Others
5%
Biodiesel
7%
Synthetic
9%
By 2008, biodiesel glycerine is expected to account for almost 50% of total glycerine supply
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Units and Revenues by Region, 2004
&SA &SA
223,000 tonnes 223,000 tonnes
$230.8 MiII $230.8 MiII
Europe Europe
328,000 tonnes 328,000 tonnes
$201.4 MiII $201.4 MiII
China China
100,000 tonnes 100,000 tonnes
$100 MiII $100 MiII
Japan Japan
91,000 tonnes 91,000 tonnes
$99.6 MiII $99.6 MiII
ROW ROW
196,000 tonnes 196,000 tonnes
$157.2 MiII $157.2 MiII
&nits &nits
Revenues Revenues
WorId consumption WorId consumption
&nits: 971,000 tonnes. &nits: 971,000 tonnes.
Revenues: $816 MiII Revenues: $816 MiII
Southeast Asia Southeast Asia
33,000 tonnes 33,000 tonnes
$27 MiII $27 MiII
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World Glycerine Market: Units Share by Region, 2004
Europe was the largest market
for glycerine followed by the
United States.
The United States and Japan
markets are mature and
showed low growth rates.
China showed largest growth
during the period of study, and
accounted for 10% of world
glycerine consumption in 2004.
China
10%
Japan
9%
SE Asia
3%
ROW
20%
&SA
23%
Europe
35%
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World Glycerine Market: Revenue Share by Region,
2004
Revenue share of Europe
was only 25% compared to
its units share, which was
35%. This was due to the
abundant supply of biodiesel
glycerine in Europe which
lead to a decline in glycerine
prices.
Europe
25%
Japan
12%
China
12%
SE Asia
3%
ROW
19%
&SA
29%
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Units Forecasts by Region - 2011
&SA &SA
1.6% 1.6%
Europe Europe
2.7% 2.7%
Japan Japan
( (- -2.1)% 2.1)%
China China
9.8% 9.8%
ROW ROW
2.9% 2.9%
A rise in consumption of glycerine
is expected in Europe, mainly by
substitution of petroleum based
chemicals by low cost glycerine.
New applications for glycerine are
also expected to be developed if
market does not recover from the
chronic oversupply situation
Glycerine demand growth rate in
Europe is expected to be higher
than that in the United States.
Japan is expected to see negative
growth.
China, on the other hand, is
expected to see the highest growth
in line with its overall economic
growth
TotaI Growth : 3% by 2011 TotaI Growth : 3% by 2011
SE Asia SE Asia
1% 1%
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World Glycerine Market Units & Revenues Forecasts
(2001 2011)
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World Glycerine Market Units & Revenues Forecasts
(2001 2011) - Give only the key points
Frost & Sullivan expects the market to grow from 971,000 tonnes in 2004 to 1,194,000
tonnes in 2011 at an estimated CAGR of 3 percentage.
Personal care, food and pharmaceutical sectors are identified as the main growth
sectors for glycerine demand
Demand for low cost glycerine for substituting petroleum based compounds is expected
to rise parallel to the crude oil prices and impact glycerine market positively.
Development of new applications for glycerine are crucial for improving glycerine
consumption on a long term basis.
Revenues are expected to decline at an estimated negative CAGR of (2.1) percentage
between 2004 and 2011. Market size by revenues are estimated at $702 million by
2011.
Glycerine market is facing a chronic oversupply situation leading to price erosion.
Average price of glycerine was estimated at $840 per tonne in 2004 and is expected to
decline to the levels of $590 per tonne or below by 2011.
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Price Trends & ssues Push this slide earlier,
after slide 9
Glycerine prices are average export prices, Malaysia, FOB local ports, for each year.
CPO prices are local delivered. (Price Source: MPOB, Malaysia)
Past Scenario
Source: Frost & Sullivan
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Production Consumption Glycerine Prices CPO prices
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Price Trends & ssues
Glycerine prices are directly influenced by supply demand balances rather than raw material
prices
Prices were low in 1998 due to oversupply but during 1999-2000 period, the market was
supply limited and prices went up by 40%
During 2001-2002 period market observed an oversupply situation due to the new
oleochemical and biodiesel plants which came on stream during this period.
n the year 2003 market became supply limited once again due to plant closures and drop in
capacity utilization rates in oleochemical ndustry and prices showed slight recovery trends.
The glycerine market faced an oversupply situation once again in 2004 followed by drop in
glycerine prices.
Two main seasonal trends which affects glycerine prices are the following:-
- Biodiesel production declines in Europe during winter and glycerine prices show recovery.
- Chinese end-users try to complete bulk purchases in the first month of the year. This
purchasing pattern lead to a slight price recovery during the first quarter. During later
months, market faces oversupply situation and prices decline.
An Analysis of Past Scenario
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Price Trends and ssues- make 2001 2004, left to
right
* Prices mentioned in the table are average spot prices, bulk, Rotterdam
Product $/Tonne $/Tonne $./Tonne $/Tonne Trend
2004 2003 2002 2001
TallowBased (33.S) 603 661 882 323 Declining
vegetable Based (33.S) 624 682 303 3S6 Declining
Kosher 33.7 300 303 1084 124S Declining
Source: Frost & Sullivan
Europe is the leading region promoting biodiesel industry.
Glycerine prices in Europe showed a steady decline during the study period.
Fluctuations in glycerine prices are not as visible in Europe as in other regions due to
oversupply of glycerine from its biodiesel industry.
Glycerine prices in Europe mpact of Biodiesel Projects
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Market Shares of Key ndustry Participants
(give only the top three share, together & biodiesel)
Glycerine market is highly fragmented,
with more than 68 companies having
capacities of 1000 MTPA
or above
Procter &Gamble (P&G) was the
largest world glycerine supplier in
2004, followed by Cognis and
Uniqema
Market consists of many small
industry participants with less than 1%
market share.
Total market share of biodiesel
companies was 19% in 2004. Market
share of this segment is expected to
rise.
14%
13%
11%
4%
3%
2% 2% 2%
19%
30%
Procter &Gamble Cognis Uniqema
Acidchem Palm Oleo Unilever
Crompton Kao Biodiesel Companies
Others
Source: Frost & Sullivan
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Demand Analysis
25%
14%
12% 12%
10%
9%
18%
Personal Care & Soaps Food Pharmaceuticals
Polyurethanes Tobacco & Triacetin Alkyd Resins
Others
Demand for personal care and
food applications are expected to
rise in future.
n food segment, glycerine
demand for low-carb food is
showing high growth
Demand for alkyd resin segment
is declining as alkyd resins are
being replaced by water-based
coatings
Glycerine demand for different
applications vary across regions.
n general, developed markets
show high demand for personal
care, food and pharmaceutical
segments whereas China had
maximum demand in
polyurethanes segment.
Source: Frost & Sullivan
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Key Challenges Facing the Glycerine Market Give key
challenges only
Market ChaIIenges
Synthetic
glycerine
segment is
getting wiped out
from the market
Health concerns are
affecting the demand for
tallow-based glycerine
negatively
New oleo capacities
coming on-stream are
contributing further to the
oversupply situation and
lower prices
Declining glycerine
prices affecting the
economics of
oleochemical
industry as a whole
Rising emphasis on
substitution of
petroleum derived
chemicals by glycerine
improves consumption
Biodiesel projects
leading to chronic
oversupply
situation in
glycerine market
Process
modifications
bypassing glycerine
recovery steps
controls the supply
Emphasis on R&D
opens up new
avenues for
glycerine
consumption
ncreasing bargaining
power of end-users
putting price
pressures on
suppliers
Emergence of
China opening up
opportunities for
companies
elsewhere
High mpact Medium mpact Low mpact
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Market Drivers
Market Drivers
Emergence of China
as an important
market provides new
opportunities for
suppliers elsewhere
Upcoming Olympics
2008 spurs demand from
construction industry
related segments in
China
Oversupply leading to
competitive prices and
encouraging
consumption
Rising costs of
petrochemical
products encourage
substitution by
glycerine
Environmental &
health conscious
consumers
promoting usage of
natural glycerine
Rising demand
from cosmetics,
food, and
pharmaceutical
sectors
Highly desirable physical
properties of glycerine makes it
a preferred ingredient in the
formulation of many end-use
products and helps to improve
consumption
Abundant supply of cheap glycerine
and its multi-functional structure
encourages its use as building block
in the manufacture of new products
Emphasis on R&D to
develop new
applications opens up
new avenues for
glycerine
High mpact
Medium mpact
Low mpact
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Market Restraints
Market Restraints
Declining demand
for tallow based
glycerine leading
to further price
erosion
Declining growth of end-use
sectors such as alkyd resins
affecting glycerine demand
Availability of low cost
glycerine in abundance
and excessive
competition leading to
price erosion
Promotion of biodiesel
projects by
governments leading
to a chronic
oversupply situation
Synthetic glycerine segment
getting wiped out as a result
of rising crude oil costs and
oversupply of natural
glycerine
Mature markets in
developed
countries affects
glycerine demand
Global deals between tier 1
companies and plantation
companies reducing the
market shares of other
industry participants
Consolidation and rising
bargaining power of end-users
putting additional price
pressures on the suppliers
New investments in
oleochemical sector
adding to the oversupply
problem
High mpact Medium mpact
Low mpact
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Capacity and Demand Trends Future Scenario
Push it earlier, in place of slide 11
Total glycerine capacity in 2004
was estimated at 1,320,000
tonnes per annum.
Glycerine overcapacity in 2004
was approximately 350,000
tonnes in the world market.
World glycerine capacity and
demand are estimated at 1.6
million MTPA and 1.1 million
MTPA respectively, by 2008.
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Source: Frost & Sullivan
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Supply, Demand and Price Trends Future Scenario
* World average prices estimated based on market trends in USA, Europe, Japan, China, Southeast Asia and ROW
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2000 2001 2002 2003 2004 2005 2006 2007 2008
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Production Consumption World Average price*
Source: Frost & Sullivan
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World Glycerine Market Production, Demand and
Price Trends Future Scenario
World production of glycerine is expected to go up in future as new capacities are
planned in the oleochemical as well as biodiesel sectors.
Europe is expected to be the main glycerine production centre where Frost &
Sullivan forecasts high biodiesel market growth rates
Biodiesel initiatives in other regions depend upon government policies and are
difficult to predict at this stage.
World average prices are weighted average prices estimated based on the key
market trends in all the important regions.
World production forecasts are based on the following factors:
- New investments planned in the oleochemical sector
- Glycerine supply forecasts from biodiesel sector are based on diesel
consumption, Kyoto protocol requirements and biodiesel demand forecasts in
Europe
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GIycerine OversuppIy
Threat or Opportunity??
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Glycerine Oversupply Problem and Solutions -
An Analysis
Abundant supply of low cost glycerine is providing the market with new opportunities
New outlets are being identified for this valuable byproduct
New strategies adopted by the industry to increase glycerine consumption can be
broadly classified into three types:
Substitutions
AIternate Processes / Modified Products
New AppIications
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Glycerine Oversupply Problem and Solutions -
An Analysis
Glycerine is complementary to, and sometimes competitive with, many other polyols
such as :
Sorbitol
Pentaerythritol
Polyglycols
Trimethylol propane
Substitution polyols by glycerine is mainly based on economic advantages. Petroleum
derived polyols are good candidates for substitution as crude oil prices are on the rise.
Substitution of pentaerythritol, trimethylol propane, and propylene glycol by glycerine are
being considered in many end use sectors such as alkyd resins, polyurethanes, heavy
duty detergents, and antifreeze segments.
Extra consumption of glycerine in Europe by substitution of competing polyols was
estimated at 20,000 tonnes in 2004. This was mainly in anti-freeze and heavy duty
detergents segments. However, there was no significant substitutions in other regions in
2004.
ncreasing Consumption by Substitution
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Glycerine Oversupply Problem and Solutions -
An Analysis
Using triglycerides as feedstock
Glycerine supply can be controlled by avoiding splitting of triglycerides and leaving
glycerine produced in the process as such in the final product.
Epoxidation of vegetable oils
Commercial usage of vegetable oil epoxides (EVO) as raw materials for
polyurethanes is another new area which can help to reduce glycerine supply.
Usage of glycerine as crosslinker
Dr. Andrew Guo of Kansas Polymer Research Centre, Pittsburg University,
received Glycerine nnovation Award from Soaps and Detergents Association
(SDA) in 2005. He has used glycerine as a crosslinker to boost the rigidity of soy-
based polyurethane materials.
The production of the soy poIyoIs couId Iead to the usage of one biIIion pounds of
gIycerine annuaIIy in the &.S. - and three biIIion pounds worIdwide" - Dr. Guo
Adoption of Alternate Processes & Modified Products Leading to
Reduced Glycerine Supply
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Glycerine Oversupply Problem and Solutions -
An Analysis
A promising solution for long term; but not an immediate solution to fix the
oversupply problem
From a technical point of view, glycerine's multifunctional structure can be
exploited to derive a very large number of products and product classes.
Currently, glycerine is used as an advanced intermediate or as a chemical end
product. However, as the price drops and availability rises, new outlets for
glycerine opens up where it can be used as a starting material for different
compounds.
Glycerine has been recognized as one of the key building blocks in the evolving
biorefinery concept based on vegetable oil platform.
ncreasing Consumption by Developing New Applications
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GIycerine as a BuiIding BIock - PossibiIities*
Evolving Biorefinery Concept and New Opportunities for
Glycerine
* K. S. Tyson, Montana Biodiesel Workshop, 8
th
October, 2003
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Evolving Biorefinery Concept and New Opportunities for
Glycerine
Oil Seeds
(Renewable)
PetrochemicaI Refinery Biorefinery
Crude Oil / Gas
(Non-renewable)
Refining
Naphtha, Gas
Cracking
Ethylene, Propylene, Butadiene etc
Acrylic, Acetic, Propionic, Maleic,
Propylene oxide etc
Chemical conversion
Extraction, Refining
Oil
ndustrial Products for Various End-use Segments
Splitting / Transesterification
Fatty Acids, Biodiesel, Glycerine
Polyols, ntermediates
Epoxidation
Chemical/Biological conversion
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Strategic Conclusions
The overall global consumption of glycerine is estimated at 971,000 tonnes per
annum worth $816 million in 2004.
Glycerine consumption is estimated to grow at 3 percent per annum globally.
Glycerine oversupply is the main challenge being faced by the industry. t is
estimated that by 2008, market will have an oversupply of at least 300,000
tonnes.
Average price of glycerine has declined from $1003 to $840 per tonne during
2001 2004 period. Prices are expected to drop further as new capacities are
coming on-stream in biodiesel and oleochemical industries.
Availability of cheap glycerine in abundance is providing new opportunities for
consumption. Substitution of competing polyols and development of new
applications are the two main areas which are being pursued aggressively.
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Thank you
Contact DetaiIs
Don Lee
Account Manager
F&S
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For further information, please contact
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Background Information
(For Reference)
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Price Trends & ssues Contd.
Glycerine prices depend on supply demand balances rather than raw material prices
Prices were low in 1998 due to oversupply but during 1999-2000 period, the market was
supply limited and prices went up by 40%
2001-2002 period an extra 300,000 tpa of fatty acid capacity came on stream in Southeast
Asia. n addition to that, Europe's biodiesel consumption went up by approximately 200,000
MTPA during the same period. mpact of oversupply of glycerine can be seen from the
average annual export prices of glycerine (Malaysia) which dropped from $1034 per tonne in
2000 to $740 per tonne in 2002.
Glycerine prices recovered slightly in 2003 when the market became supply limited once
again as some oleochemical capacities in developed markets were closed down. Dow
started reducing synthetic glycerine production as it could not compete with natural glycerine
prices. Another market trend observed was the drop in capacity utilization of oleochemical
plants when palm oil prices rose drastically in 2003.
n 2004, glycerine market faced an oversupply situation once again thanks to European
biodiesel industry, improved capacity utilization of oleochemical plants and new fatty acid
capacities which came on stream in Southeast Asia. Glycerine prices continues to show
downward trends in 2005.
Glycerine prices show seasonal trends as biodiesel production declines in winter in Europe
and glycerine prices show recovery. Another factor that influences sesonal price trends is
China's purchasing patterns. Chinese end-users complete bulk purchases in the first month
of every year, leading to a tighter supply, and an increase in prices. During later months,
supply recovers and Southeast Asian suppliers focus on other export markets and prices
decline.
An Analysis of Past Scenario
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Capacity and Demand Trends Future
Scenario - Contd.
n 2004, there was an overcapacity of 349,000 MTPA in the world glycerine market
Frost & Sullivan expects the market to have an overcapacity of 523,000 MTPA by 2008. This figure excludes
potential glycerine from new biodiesel projects being planned in different regions other than Europe.
Approximately 50% of the additional capacities planned by 2008 are from the biodiesel sector while the remaining
50% constitute that from other oleochemicals sectors such as fatty acids, fatty alcohols, fatty esters etc

Europe's total biodiesel requirement is expected to be 6.61 million MTPA by 2008. Total capacity in Europe is
estimated to be 3.67 million MTPA by 2008. Hence, Europe will have an import demand of 2.94million MTPA of
biodiesel, which could come from Asian countries. This translates to approximately 300,000 MTPA of glycerine
supply from Asia by 2008 just to support Europe's biodiesel demand!!!
Many other countries are also considering promotion of biodiesel projects to meet their energy demands. However,
it is difficult to forecast the amount of glycerine that might enter the market from the biodiesel projects in these
regions as it depends upon government policies of individual countries
Two main regions where glycerine demand is expected to grow are Europe and china. Europe consumption rise is
expected from substitution of competing polyols in the short term and new application developments in the long
term. Demand in China is expected to show high growth in parallel to its economic growth as well as due to shift of
manufacturing base to China by many end-users
Dow Chemical has stopped supply of synthetic glycerine as conversion of epichlorohydrin to epoxy resin makes
better commercial sense. Dow has started procuring natural glycerine for its captive consumption too.
European diesel consumption was around 175 million tonnes in 2004. n order to meet the 2005 EU Directive
target of 2 percent, 3.5 million tonnes of biodiesel will be required. To meet the 2010 target of 5.75 percent, 10.1
million tonnes of biodiesel are required based on consumption figures for 2004.
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World Glycerine Market Production, Demand and
Price Trends Future Scenario
World production of glycerine is expected to go up in future as new capacities are planned in the
oleochemical as well as biodiesel sectors.
Europe is expected to be the main glycerine production centre where Frost & Sullivan forecasts
high biodiesel market growth rates
Even though some of the old oleochemical plants in developed markets might close down, but that
may not make much difference in glycerine supply as biodiesel glycerine from Europe as well as
other parts of the world will be very high
Production forecasts are based on the new oleochemcial capacities announced in the market as
well as biodiesel demand growth forecasts in Europe. Back up information based on which
production forecast are based, are summarized as below:
Additional fatty acid capacity planned by 2007 could be approximately 1,180,000 MTPA
Additional fatty alcohol capacities can be expected to be more than 360,000 MTPA by 2008
Europe's biodiesel demand is expected to show very high growth rate. t is estimated that CAGR
(2001-2011) for Europe's biodiesel market will be 27% . By 2008, total biodiesel capacity in Europe
is expected to be 3,670,000 MTPA. (Additional 1,420,000 MTPA biodiesel capacity)
Page 38
Substitutions
Pentaerythritol
Pentaerythritol's largest use sector, 60 percent, is alkyd resins, nearly all of which are used in alkyd surface coatings. These comprise
architectural coatings, OEM product finishes, and specialty coatings. Manufacturers of alkyd coatings, blend pentaerythritol to balance
a coating's properties with cost. Pentaerythritol competes with glycerin here, but has been loosing share as glycerin's price has fallen in
recent years. Also in recent years, there has been a declining market for alkyd-based coatings, which are being replaced by
waterborne and other coating technologies. This is in response to environmental regulations concerning volatile organic compound
(VOC) emissions. And most recently, the slowed economy has softened demand for alkyd coatings. Over the forecast period, alkyd
resin demand for pentaerythritol is predicted to decline by 0.5 percent per year.
O&TLOOK
Glycerine cannot replace pentaerythritol in all segments. Only in alkyd resins substitution is possible. Pentaerythritol's largest
application, alkyd resin modification, is mature and slowly declining with price competition from alternative ployols, like glycerin, and
soft economic conditions. The other applications are growing at the GDP rate, except for neopolyol esters as noted above.
Consequently, overall growth is forecasted to be 0.9 percent annually for the next four years.
Prices (USA), 2004 $ 2500/ MT
Propylene Glycol
Polyurethane segment
Polyurethanes:- Prepared from a polyol and diisocyanate. Usually, different gases - chloroflurocarbons- are used for their expansion. As
these gases are not environment friendly, NOVANCE (an oleochemical company at COMPEGNE, France, developed formulations
using water as expansion agent. For this, the polyol need to be more hydrophilic so that chemical contact between the polyol and water
will be better. Hence, NOVANCE chemists used glycerol instead of diols, and the resulting polyol was more hydrophilic that that from
diol. This study was supported by EEU.
Price (USA) :- $1300/ MT
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World Glycerine Market Future Trends
ncreasing Consumption by Substitutions
Rising crude oil prices are affecting the profitability of petrochemical industry.
Petrochemical based polyols such as propylene glycol, pentaerythritol etc are good
candidates for cost effective substitutions. World demand for these competing polyols is
estimated to be appoximately 10 million tonnes. f at least 10% of this demand gets
substituted by glycerine, additional glycerine demand could be 1 million MTPA!!!
Traditionally, sorbitol and glycerine have been used interchangeably based on price
advantages in many application segments except food, tobacco etc where substitution
of ingredients take time as it involves development of customer acceptance
Europe is leading this trend. Extra consumption of glycerine in Europe in 2004 was
20,000 MT mainly in anti-freeze and heavy duty detergents segments
There was no significant substitutions in USA in 2004. Potential volumes from
substitutions in USA is estimated to be 500,000 MTPA. This is, after excluding sorbitol
consumption as sorbitol prices are lower than that of glycerine
Total demand for polyols which are competicompeting poly
Page 40
MAN&FACT&RING COST OF ESTERQ&ATS (without raw
materiaIs)
FROM PALM STEARINE VIA FATTY ACIDS
Splitting 0.04 Euro/Kg
Distillation 0.07 Euro/Kg
Esterification 0.10 Euro/Kg
Quarternization 0.10 Euro/Kg
Glycerine credit -0.06 Euro/Kg
TOTAL 0.25 Euro/Kg
FROM PALM STEARIN VIA TRANSESTERIFICATION
Transesterification 0.05 Euro/Kg
Quarternization 0.10 Euro/Kg
TOTAL 0.15 Euro/Kg
Page 41
RAW MATERIAL FOR POLYMERS FROM PALM OIL
PALM OL
EPOXIDATION
EPOXY PALM OL
EPOXY RING OPENING WITH
Alcohols
Polyols
Acrylic acids
Dimer acids
Etc.
RAW MATERALS FOR POLYMERS
Page 42
Glycerine as cross linker in Veg. oil-based
polyurethanes
Dr. Andrew Guo has invented and commercialised soy polyols discovered
at Kansas Polymer Research Centre, Pittsburg State University. Now
working at Cargill nc., Minneapolis, Minnesota. Soy polyol has passsed
the pilot plant scale, and shows potential as replacement for petroleum
based polyols. Dr. Guo is using glycerine in his research as crosslinker,
to boost the rigidity of soy polyols. The production of soy polyols could
lead to the usage of one billion pounds (around 500,000 MT) of
glycerine annually in US; and 3 billion pounds (1.36 million MT)
worldwide.
research papers exloring the search t has been reported that Vegetable
oil-based polyols derived from the above mentioned epoxides help to
improve the rigidity of these polyurethanes and also helps to improve
glycerine consumption. t has been
t is estimated that if the above mentioned vegetable oil based
polyurethanes get commercial acceptability, global demand for
glycerine as a crosslinker for these products could be over 1 million
tonnes!!!
Page 43
Washington , D.C. , May 2, 2005 A synthetic chemist at Kansas' Pittsburg State University is
the recipient of The Soap and Detergent Association (SDA) 2005 Glycerine nnovation
Award.
The honor was presented to Dr. Andrew Guo at the Annual Meeting & Expo of the American Oil
Chemists' Society (AOCS) held in Salt Lake City, Utah. The award consists of a plaque and
a $3,000 honorarium.
Dr. Guo was honored for his innovative research involving glycerine applications in the use of
renewable materials as feedstocks for high-performance plastic materials. Dr. Guo was
instrumental both to the invention and the commercialization of the soy polyol discovered at
the Kansas Polymer Research Center at Pittsburg State University. Working with Cargill, nc.
of Minneapolis, Minnesota, Dr. Guo has seen the soy polyol pass the pilot-plant stage and
shows potential as a replacement of petroleum-based polyols.
t is in this research where glycerine is used in large quantity as a crosslinker, a material to
boast the rigidity of soy-based polyurethane materials . This further enhances the use of
renewables. The production of the soy polyols could lead to the usage of one billion pounds
of glycerine annually in the U.S. and three billion pounds worldwide, according to Dr. Guo.
Trained as an organic chemist, Dr. Guo joined the Kansas Polymer Research Center in 1997. He
has spent the last eight years in applied research, focusing on utilization of vegetable oils as
building blocks for high performance plastics. Dr Guo serves as Senior Research Scientist
and Adjunct Professor of Chemistry at Pittsburg State.
The SDA Glycerine nnovation Award recognizes outstanding achievement for research into new
applications for glycerine with particular emphasis on commercial viability. The third annual
award was presented at a dinner meeting of the AOCS ndustrial Oil Products (OP) Division.
The award review panel consists of members of the OP Division and SDA's Oleochemical
Committee.
Page 44
Glycerine Sourcing - Changing Market Trends
Globally, synthetic glycerine production is declining as low cost natural
glycerine is flooding the market.
Tallow-based glycerine manufacturers are looking for new outlets as
consumer preferences are shifting in favor of vegetable oil-based glycerine
due to health reasons.
Declining glycerine prices are leading to changes in the production routes
and formulation of some of its end-use products. For example,
- Glycerine recovery steps are being avoided in a number of cases as
glycerine prices cannot justify the recovery costs.
- Due to its non-toxic nature and physical properties, presence of extra
glycerine does not affect the performance of many end-use products, and
is highly preferred in some products.