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Nandini Chemical Journal, July 2015 Page 1

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Volume 22 Issue 10 July 2015

Dedicated to the cause of chemical industry

* MODI GOVERNMENT’S WELCOME APPROACH TO SOLAR PROJECTS

* GLOBAL CRUDE OIL SCENARIO – RECENT TRENDS

* UPDATE ON BIODIESEL

* 2-ETHYL HEXANOL - INVESTMENT OPPORTUNITY

* EPOXY FATTY ACID METHYL ESTER (EFAME)

* VITAMIN A – INVESTMENT OPPORTUNITY


duct Profile77

VOLUME XXII JULY 2015 ISSUE 10

Publisher:

Nandini Institute of Chemical Industries

Editor - Publisher N.S.Venkataraman

Editorial & Administrative Office:

M 60/1, IV Cross Street, Besant Nagar, Chennai-600 090

India

Phone: 43511945,/43540719/24916037 Fax: (91-44) 24916037

E-mail Address:

[email protected] [email protected]

Website:

www.nandinichemical.com

Annual Subscription Rates: Inland : Rs.1200/- 12 issues Overseas: US $ 100 12 issues US $ 180 24 issues

Subscription Charges payable in advance

in favour of Nandini Institute of Chemical Industries

Views expressed in this journal are not necessarily of the Editor - Publisher

CONTENTS

03 Talk of the month

Modi government‘s welcome approach to solar projects

06 Global crude oil scenario – Recent trends

08 Raageshwari deep gas block

09 World demand for silicones – Findings of the study

10 Indian solvent extraction industry - At the cross roads

12 Update on biodiesel

16 Global biodiesel output – Findings of the study

17 Plant closure

17 Anti dumping page

18 2-ethyl hexanol - Investment opportunity

23 Spotlight on speciality chemical

Epoxy fatty acid methyl ester (EFAME)

25 Vitamin A – Investment opportunity

29 News round up – International

31 Technology development

35 China news

36 News round up – India

39 Agro chemical page

40 Pharma page

41 Energy page

41 Performance of Cairn Energy

42 Price details

42 Spot price of polymers in China – Period June ,2015

51 Tender

54 Chemicals imported at the Chennai port

During the month of April 2015

http://www.nandinichemical.com/


TALK OF THE MONTH

MODI GOVERNMENT’S WELCOME APPROACH TO SOLAR PROJECTS

It is now well recognised that India is facing impending energy crisis due to steadily increasing demand

for crude oil and natural gas and with the production of these two vital feedstock remaining stagnant

for all practical purposes.

Until recently, the Government of India was really groping in the dark on the strategies for tackling the

impending energy crisis. Many suggestions and proposals were made such as tapping wind and solar

power potential, exploring the feasibility of developing shale gas wells, coal bed methane, jatropha

biofuel, algae based biofuel etc. However, most of such suggestions continued to be in discussion stage

with the government setting up some targets for solar power by 2020. However, the progress with

regard to the solar power projects have been dismal and it seemed that the government‘s efforts were

half hearted.

In such circumstances, after Mr. Narendra Modi emerged as the Prime Minister, now we see a

determined and focussed approach to implement the solar power projects with speed and dynamism.

Fall in the price of polycrystalline silicon and solar cells in the global market have considerably helped in

bringing down the cost of solar power project in India and making the cost of solar power somewhat

affordable to the industries and domestic consumers.

The proactive policy of the Modi government in encouraging overseas investments have helped to some

extent, in accelerating implementation of solar power projects , with the global investors and

technology suppliers looking at Indian solar power industry with greater confidence and enthusiasm. The

overseas funds have been steadily coming for the solar projects and several international equipment

suppliers and technology providers are seeking to set up facilities and offices in India. Such developments

are positive signs and they give hope that the government‘s target of achieving 20,000 MW capacity by

2020 may be achieved .

Another move that is being examined by the government now is to encourage the setting up of solar

pumps in agricultural farms , that would significantly reduce the demand for power from the grid for

agriculture operations. Of course, imaginative schemes have to be launched by the government including

farmer education programme and easy loan scheme for the agricultural community to install the solar

pumps.

Those installing roof top solar power projects and solar pumps in agricultural farm have the option to

sell the surplus power they generate to the grid. The government should also remove the

cumbersome producers for installing and utilizing the solar power projects in large residential complex ,

so that the residents can use the power or sell the power without any control from state electricity

board authorities.

What is particularly significant is the importance given by

Government of India to the roof top solar power projects and

the proposal to compel all new building complex to have roof

top solar projects. The government of India has announced a

number of incentives and subsidy schemes to particularly

encourage the roof top solar power projects. While there are

still constraints that have to be overcome, the enthusiasm of

the people towards roof top solar power projects is distinctive

sign of progress.


MODI GOVERNMENT’S WELCOME APPROACH TO SOLAR PROJECTS

India can well become the largest solar power producing country in the world and protect itself from an

impending energy crisis , if the central and state governments, investors and individuals will move in

tandem in making India the solar power hub in the world.

ROOF TOP PROJECTS IN USA – RECENT TREND

In the US, big retail stores have taken the lead and are covering their roofs with solar panels ,

thanks to broad vacant roofs and government incentives. For example, Walmart installed more

solar panel capacity due to ready access to large area unused roofs of their stores. Their stores get

as much as 30% of their power from solar. The panels on Walmart‘s roofs are owned and

operated by third party solar companies, from which the company buys energy through power

purchase agreements. IKEA, known for its massive warehouse style stores, is also putting its empty

roofs to use. It is buying the panels instead of following power purchase agreements to take

advantage of federal subsidies, which grant investment credits to those that invest in renewable

energy.

POTENTIAL FOR SOLAR PUMPS IN AGRI OPERATIONS

Farmers can be provided solar irrigation pumps with power purchase guarantee, similar to

what the large solar power generators get.

A 10 kilowatt solar pump can generate 13,000 units of power per year worth around

Rs. 65,000.

Every solar pump replacing a grid-connected pump saves the utility over 12,000 units of grid

power at generating stations, saving subsidies and freeing up grid capacity for the non farm

sector. In theory, the country can save thousands of crores of rupees crore per year in

subsidies by going solar for all 11 million electric pumps.

Currently, there are around nine million diesel powered irrigation pump sets in the country.

By converting 50 per cent of them, the country can save around 25 billion litres of diesel.

By assessing various State governments‘ initiatives, it is seen that conversion of 100,000 diesel

pump sets in the next five years is possible. At present, many states are working on subsidy to

popularise solar pumps to wean farmers away from grid power usage.

At present, 10,000 solar pump sets have been installed.

Western states especially Maharashtra, Madhya Pradesh, Rajasthan and Gujarat, have taken the

lead in installing solar pumps.

If put under solar PV arrays, one hectare of land can generate more income

for the farmers from solar power compared to income from field crops

alone. This revenue is free of risk from droughts, floods, pests and diseases.

All it needs is land.


ALL INDIA SOLAR AND WIND POWER DIRECTORIES

Nandini Consultancy Centre, a renowned firm of chemical engineers and chemical business consultants

based at Chennai and Singapore (www.nandinichemical.com) has released the following updated

All India Directories:

* All India solar power directory * All India wind power directory

Description

The directories do not contain the name of the contact person of individual organisations. It provides

details of selected and important organizations involved in solar industry along with address details and brief on their activities.

Size

Solar power directory consists of around 150 pages

Wind power directory consists of around 100 pages

The directory would be sent in the form of CD in pdf format and would be sent by speed post.

The directory would be sent within three days from the date of order placement along with the

payment.

Price

Particular Price per copy

(excluding service tax) Service tax @ 14%

Total price

per copy including

service tax

All India solar power

directory

Rs.1,500/-

(Rupees one thousand

five hundred only)

Rs.210/-

(Rupees two hundred

and ten only)

Rs.1,710/-


seven hundred and ten

only)

All India wind power

directory

Rs.1,500/-


five hundred only)

Rs.210/-

(Rupees two hundred

and ten only)

Rs.1,710/-


seven hundred and ten

only)

In case the above directories are required in the form of hard copy, additional payment of Rs.600/-

(Rupees six hundred only) has to be made for both the directories in single book.

Cheque should be drawn in favour of Nandini Consultancy Centre Pvt.Ltd. payable at Chennai and sent

to Nandini Consultancy Centre Pvt.Ltd.M-60/1, IV Cross Street,Besant Nagar, Chennai 600 090, Phone:43511945 / 43540719

Contents of each directory

* Overview of Indian solar power/wind power industry

* Present installed capacity and generation

* Government policies and incentive programmes

* Leading Indian producers along with address, location and

capacity

* New projects under planning/implementation

* Name and address of leading technology/engineering

consultants and equipment suppliers

* Promotional bodies

http://www.nandinichemical.com/


GLOBAL CRUDE OIL SCENARIO – RECENT TRENDS

Production trend in 2014

The United States has overtaken Saudi Arabia as the world's biggest oil producer in 2014 .

US produced 15.9 per cent more oil in 2014 at 11.6 million barrels of oil per day (bpd) to topple Saudi

Arabia's 11.5 million bpd production, according to BP Plc's Statistical Review of World Energy..

Russia with 10.8 million bpd oil production was placed third.

The US surpassed Russia as the world's largest producer of oil and gas, producing 1,250.4 million metric

tonne of oil and oil equivalent natural gas in 2014. This compared with Russia's 1,062 million metric

tonne of oil equivalent.

Consumption trend in 2014

On the consumption side, BP Statistical Review says that the world primary energy consumption

growth slowed markedly, with growth of just 0.9 per cent in 2014, a lower rate than at any time since

the late 1990s (other than in the immediate aftermath of last decade's financial crisis).

Chinese growth in consumption slowed to its lowest level since 1998, as its economy rebalances away

from energy intensive sectors, though China remained the world's largest growth market for energy.

India, however, posted a 7.1 per cent rise in energy consumption, the fastest among major economies

and second only to Algeria's 8.4 per cent expansion. While India's oil production declined 1.3 per cent at

895,000 bpd, consumption rose 3 per cent to 3.8 million bpd.

Though India is heavily dependent on imports to meet its oil needs, it is self sufficient in refining capacity,

housing a total capacity of 4.3 million bpd, fourth largest in the world behind the US (17.79 million bpd),

China (14.09 million bpd) and Russia (6.3 million bpd).

Output from the Eagle Ford in Texas, the second largest oil field in the U.S., will contract by

49,000 barrels a day in July to 1.59 million bpd.. Production in the Bakken shale region of North Dakota

will slip by 29,000 to 1.24 million bpd.

Yield from the Permian Basin in West Texas and New Mexico, the largest U.S. oil field, will rise by

3,000 barrels a day to 2.06 million barrels per day.

U.S. drillers are retreating from oil fields, as OPEC, which accounts for more than a third of the world‘s

oil, continues to resist calls to curb its own supply. The 12 nation OPEC group decided recently to

maintain a combined daily crude production target of 30 million barrels per day.

Oil production forecast in USA

The EIA‘s forecasts for U.S. oil production cover the yield from

major players that together account for 95 percent of US

output growth from 2011 to 2013. The EIA‘s oil production

forecasts are based on the number of rigs drilling in each play

and estimates on how productive they are.


GLOBAL CRUDE OIL SCENARIO – RECENT TRENDS

Crude output from the prolific tight rock formations such as North Dakota‘s Bakken and Texas‘s Eagle

Ford shale will shrink 1.3 percent to 5.58 million barrels a day, based on Energy Information

Administration estimates. It will drop further in July to 5.49 million, the lowest level since January, the

agency said.

Shale oil production has to come down because rigs drilling for oil are down 57 percent this year.

*****

Signs of slow down

With the Organization of Petroleum

Exporting Countries maintaining its own oil

production, U.S. shale is coming under

pressure to rebalance a global supply glut.

The shale oil boom that turned the U.S. into

the world‘s largest fuel exporter appears to

be showing signs of slow down.

REPORT ON “CRUDE OIL PRICE FALL - WILL INDIA’S EUPHORIA CONTINUE “?

Nandini Consultancy Centre, a firm of chemical engineers and chemical business consultants based at Chennai and Singapore, has released well researched report on “Crude oil price fall - Will India’s euphoria continue ? “

CONTENTS OF THE REPORT

* Crude price behaviour - Past trend * Likely Strategies of the producers * Global & regionwise consumption / production analysis * China’s strategies * Why crude price fall now ? * What should be the strategies for India? Author: The report has been prepared by Mr.Swaminathan Venkataraman, a Chemical Engineer and MBA from Indian Institute of Management, Ahmedabad (IIMA), with over fifteen years of experience in multinational organizations abroad.Mr.Swaminathan Venkataraman is Director of Nandini Consultancy (S) Pte Ltd ,Singapore Price & delivery Price of the report is Rs.500/- (Rupees five hundred only) per copy inclusive of courier charges, payable by cheque drawn in favour of Nandini Consultancy Centre Private Ltd., Chennai

Order may be sent to Nandini Consultancy Centre,M-60/1, 4th Cross Street,Besant Nagar, Chennai-90. Phone:43511945 / 43540719 Email:[email protected], web:www.nandinichemical.com

Focus of the report Global crude oil price fall in recent months has surprised even the discerning observers. Now, there is world wide debate as to what has caused the crude price fall and whether the price fall would persist and how long. This research report recommends that India should use this opportunity to work out it’s short term and long term strategies for crude oil sourcing and pricing. A few appropriate strategies have been suggested:


RAAGESHWARI DEEP GAS BLOCK

To implement this, Cairn needs the Rajasthan State Government‘s approval. The gas project depends on

Cairn‘s proposal to get another 10 year extension, as the contract for the Barmer block expire in 2020.

According to the Rajasthan contract, the operator can get unconditional extension for five years if it is

producing oil, and 10 years in case of expected gas production. Barmer is essentially an oil producing

block.

Though the production sharing contract — signed between the Rajasthan government and the

operators to develop and produce hydrocarbons — for the Barmer block ends in May 2020, the joint

venture has prepared a profile till December 2030, indicating cumulative gas production of 358.9 billion

cubic feet with a resultant recovery factor of 46.8 per cent of initial gas.

*****

Proposed plan

ONGC and Cairn have drawn up a $690-million

plan to develop the gas reserves in the

Raageshwari Deep Gas field. Of the total

investment, about $243 million is earmarked for

drilling and completion of new wells, while

$311.20 million is allocated for surface facilities

and laying of pipelines.

According to power industry calculations,

4 mmscmd of gas is needed to generate 1,000

MW of electricity, so 0.452 mmscmd will help

generate about 110 MW.

NANDINI CHEMICAL JOURNAL IS NOW CONSIDERED AS THE

BEST JOURNAL OF IT’S KIND IN INDIA, CARRYING OUT HIGHLY

RELIABLE AND INVESTIGATIVE ARTICLES AND ANALYSIS ON

CHEMICAL INDUSTRY ALL OVER THE WORLD.

AS YOU READ NANDINI CHEMICAL JOURNAL,YOU ARE

FORGING AHEAD.

In fiscal year 2015, average gas production from Raageshwari Deep Gas field in the block was

0.4528 mmscmd (million standard cubic metres a day), which Cairn expects to raise to 0.7075

mmscmd by fiscal 2016.

Cairn and ONGC, partners in the Barmer block, have more than doubled their gas production

estimates from the Raageshwari fields. According to estimates drawn by the partners, the

cumulative gas production till May 2020 will help meet almost 2.5 mmscmd or 90 mmscfd (million

standard cubic feet a day) of gas demand — both sales plus internal.


WORLD DEMAND FOR SILICONES – FINDINGS OF THE STUDY

The Asia/Pacific region will continue to be the strongest source of additional silicone demand,

accounting for 57% of the total increase in global silicone consumption between 2014 and 2019.

The bulk of these gains will be attributable to China, which will represent nearly three fifths of the

Asia/Pacific total in 2019.

According to the report, ―although China‘s silicone market will not maintain the extremely rapid pace of

gains seen in recent years, growth will still continue to be well in excess of the global average.‖Other

developing countries in the Asia/Pacific region, such as India, Indonesia, and Thailand, are also expected

to post strong gains in silicone demand. Electrical and electronic products will remain the largest outlet

for silicones in the Asia/Pacific region, reflecting the region‘s dominance in global electronics

manufacturing.

The outlook for silicone demand in North America and Western Europe is somewhat weaker, reflecting

the maturity of both manufacturing industries in general and the use of silicones.

In the US market, the largest in the world, demand for silicones, will be bolstered by a major

improvement in construction activity.

Demand for silicones in Western Europe will advance slowly, although the region‘s affluence will

continue to support significant demand for silicones in the health and personal care market.

Above average growth is expected in the Africa/Mideast region, aided by urbanization and the

emergence of the middle class in some of the more developed nations.

Gains in silicone demand in Central and South America will be near the world average, benefiting from a

rebound in motor vehicle production from low 2014 levels. Gains in Eastern Europe are expected to be

slightly below the world average, but will still represent a healthy increase through 2019,\ as export

oriented manufacturing activity continues to grow.

World silicone demand (million US$) 2009 2014 2019 YoY growth 2009-2014 YoY growth 2014-2019

Silicone demand 11180 14630 19300 5.5 5.7

North America 3110 3985 5000 5.1 4.6

Western Europe 2835 3095 3620 1.8 3.2

Asia/Pacific 4195 6240 8920 8.3 7.4

Other Regions 1040 1310 1760 4.7 6.1

World demand for silicones is forecast to rise 5.7% per year to US$19.3 billion in 2019.

The pace of growth in value terms will be in line with that seen over the 2009-2014 period,

largely due to an improved outlook for silicone prices.

Demand for silicones in developing regions is expected to post strong gains through 2019,

benefiting from economic advancement and increased penetration of silicones in less mature

markets.

These and other trends are presented in World Silicones, a new study from The Freedonia

Group, Inc., a Cleveland-based industry research firm.


INDIAN SOLVENT EXTRACTION INDUSTRY

AT THE CROSS ROADS

Challenge

With the oilseed production remaining stagnant at 27 to 28 million metric tonne per annum,, the

challenge before the Indian solvent extraction industry is how to meet increasing demand from the

domestic market in addition to meeting the export demand.

Import duty on oilcakes and rice bran

The Solvent Extractors Association of India (SEAI) has appealed to the Government of India to permit

the import of all oilcakes and rice bran at nil duty, to increase overall availability of feeds for cattle and

poultry.

According to the association, if the import of edible oilcake is permitted at nil duty, extractors could get

raw material for processing which could be consumed locally and the end product for the feed industry

will also be available for export and the local feed industry in the country could get this at reasonable

prices.

At present, the import duty on oilcakes is to the tune of 15%. India imports around 11 million metric

tonne of edible oil per annum . If import is allowed at nil duty, the country can process for neighbouring

markets as well as local use.

The total industry size is around $20 billion, of which only $ 9 billion is available locally. Of the

400 crushing plants in India, 100 units process soyabean.

The soyabean industry in the country has remained stagnant because the bean prices are high and

crushing has not been supported. The extractors stand to lose around Rs.1,000 per metric tonne as the

imported oil is cheaper.

Solvent extractors in India are concerned about the shortfall in supply of raw material for

processing. Therefore, the capacity utilisation of the units has gone down to 30 to 35%.

The industry has been facing problems, as there have been huge production of soyabean in the

international markets such as Argentina, Brazil and the US and therefore, meal prices have gone

down heavily.

Lesser realization for oil and soyabean meal in export market have resulted in lower crushing and

lesser oil availability in domestic market.

Fall in export

As against FOB price of $600 per metric tonne in India, the soyameal prices

internationally are $ 450 per metric tonne. As a result, exports have dropped

down from 30 lakh metric tonne last year to 6 to 7 lakh metric tonne at present.


INDIAN SOLVENT EXTRACTION INDUSTRY AT THE CROSS ROADS

Moreover, Iran has now begun importing directly from Argentina and Brazil, thus making India lose an

important market. Vietnam has established a couple of 5,000 metric tonne processing units and has

begun locally crushing oilseeds. Japan, another important market for India, has moved to GMO and

reduced imports from India.

Import of vegetable oils

Import of vegetable oils during May 2015

witnessed a record tonnage of

1,371,662 metric tonne since import started

in 1994, compared to 1,033,550 metric

tonne in May 2014, consisting of

1,358,688 metric tonne of edible oils and

12,974 metric tonne of non-edible oils i.e.

up by 33%.

The excessive import during current oil

year has happened as the domestic

production of soyabean and rapeseed is

lower than estimated earlier.

*****

PUBLICATION ON ALGAE BIOFUEL

GLOBAL OVERVIEW AND INDIA’S OPPORTUNITIES

The publication, which has been edited based on extensive study and research, discusses the

various recent developments across the world with regard to algae and its derivative

products. The book also highlights algae and its derivatives as an appropriate investment

opportunity in India.

The book consists of 269 pages and is

available as hard bound copy.

Price: The price is Rs. 3000/-( Rupees three

thousand only) including courier charges.

Cheque should be drawn in favour of

Nandini Consultancy Centre Pvt. Ltd.,

payable at Chennai and sent to the following

address;

Nandini Consultancy Centre Pvt.Ltd.,

M-60/1, IV Cross Street,

Besant Nagar,

Chennai – 600 090

Tel:91-44-43540719, 43511945, 24916037,

E-mail:[email protected],

[email protected]


UPDATE ON BIODIESEL

Comparative properties of diesel and biodiesel fuels

Fuel Property Diesel Biodiesel (B100) Unit

Fuel Standard ASTM D975 ASTM D6751 --

Lower Heating Value ~129,050 ~118,170 Btu/gal

Kinematic Viscosity @ 40 deg. C 1.3 - 4.1 1.9 - 6.0 mm 2/s

Specific Gravity @ 60 deg. C 0.85 0.88 kg/l

Density 7.079 7.328 lb/gal

Water and Sediment 0.05 max 0.05 max % volume

Carbon 87 77 wt. %

Hydrogen 13 12 wt. %

Sulfur 0.0015 max 0.0 to 0.0024 wt. %

Boiling Point 180 to 340 315 to 350 deg. C

Flash Point 60 to 80 130 to 170 deg. C

Cloud Point -15 to 5 -3 to 12 deg.C

Pour Point -35 to -15 -15 to 10 deg. C

Cetane Number 40 to 55 47 to 65 units

Lubricity SLBOCLE(Scuffing Load Ball on Cylinder Lubricity

Evaluator)

2,000 to 5,000 >7,000 grams

Lubricity HFRR(High-Frequency Reciprocating Rig) 300 to 600


UPDATE ON BIODIESEL

Salient features of Biofuel Policy recommended that biofuels should be derived from non food

feedstocks grown on degraded soils or wastelands, which are not otherwise suited to agriculture, thus

avoiding a possible conflict of fuel versus food.

The policy also recommended minimum support price mechanisms for inedible oilseeds to provide fair

prices to oilseed growers (subject to periodic revision).

The above policy initiative is still under consideration.

Government of India had launched the National Biodiesel Mission (NBM) identifying jatropha as the

most suitable inedible oilseed for biodiesel production. But jatropha cropping has not taken place as

expected.

India‘s emphasis on jatropha derived (Jatropha curcus) biodiesel has not fared well, as the production and

commercial viability of jatropha have proven to be economically not viable or there is no thrust from

the government.

While India does not currently maintain a specific mandate for biodiesel usage, any future mandates will

require a more dedicated effort to plant energy crops and/or switch to alternate sources of biodiesel to

include locally available tree borne oilseeds and a variety of other feedstock.

In India, around 80% of the operating cost of biodiesel plant is the cost to acquire feedstock. Securing

own feedstock to insure supply at a fair price and sourcing it locally to avoid long haulage for delivery of

seeds to biodiesel plant are critical factors in controlling profitability for the biodiesel project .

India- Supply and demand

In ‗000 metric tonne

Description 2010 2011 2012 2013

Name plate capacity 394 394 403 407

Production 79 89 101 105

Capacity utilizaiton in percentage 20.0 22.7 25.0 25.8

Petro-diesel consumption 37309 39027 40822 42702

Biodiesel vs petrodiesel consumption in % 0.05 0.06 0.06 0.06

Source USDA Biofuels Annual 2014 (GAIN) report, July 1st 2014

Ministry of New and Renewable Energy, GOI

Biodiesel scenario in India

In India, biodiesel production from

multiple feedstock (Includes non

edible vegetable oil, used cooking

oils, animal fats etc) shows signs of

life, but more groundwork needs

to be done before biodiesel

project becomes economically

viable.


UPDATE ON BIODIESEL

Selected producers of biodiesel in India

Name of the organization Location Feedstock

Universal Biofuels Pvt. Ltd. Kakinada, Crude palm oil

Southern Online Bio tech Ltd. Telangana

Non edible vegetable oil, used cooking oil and animal fat

Bannari Amman Sugars Tamilnadu Non edible vegetable oil (punga seeds)

My Ecoenergy Maharashtra Non edible vegetable oil

Emami Biotech Ltd. West Bengal Stearin , a residue derived from oil palm

A few biodiesel units in India set up to produce from non edible oil and used cooking oil have closed

down due to non viable market price.

Indian initiatives

* Development of high quality jatropha through tissue culture..

* Plantation by National Oilseed and Vegetable Oil Development Board

* Pilot plants for biodiesel production by IITs, IIP-Dehradun, R&D Centre/IOCL, IISc, Indian

Railways, IICT, CSMCRI.

* Trial runs by Indian Railways, Mahindra & Mahindra (Tractors), Haryana Roadways/IOCL, BEST

Buses/HPCL, Daimler Chrysler cars etc.

Indian Oil has worked on establishing the production parameters of transesterified jatropha oil and use

of biodiesel in its R&D Centre at Faridabad.

Standards for higher biofuel usage

Government of India is trying to explore the global standard on bio fuels to adopt them in India.

Government of India will come out with standards for higher utilization of bio diesel in vehicles.

Standard is there for upto 20% of mixing bio fuels. The government is trying to increase the same.

In phases, it will try to reach 100 percentage.

In Maharashtra, some buses are using up to 100% of bio diesel.

The Bureau of Indian standards has been asked to set standards for higher usage of bio diesels

in automobiles, locomotives, heavy engineering machines and generators.

Emami Agro Tech

Emami has a 300- metric tonne per day bio-diesel unit at Haldia.

The unit was set up in 2008 at cost of Rs.150 crore. It produces bio-diesel

from stearin, a residue derived from oil palm, while extracting the oil. The

unit will supply the bio diesel to Haldia port. The bio diesel produced from

oil palm residue by Emami is said to be cost effective


UPDATE ON BIODIESEL

The Union Cabinet gave its approval for amending the Motor Spirit (petrol) and High Speed Diesel

(diesel) control order for Regulation of Supply, Distribution and Prevention of Malpractices dated

December 19, 2005.

The amendment will allow private bio diesel manufacturers, their authorised dealers and joint ventures

of oil marketing companies (OMCs) authorised as dealers by the Ministry of Petroleum & Natural Gas

(MoP&NG) and give marketing /distribution functions to them for the limited purpose of supply of

bio diesel to consumers.

The decision would encourage the production of bio diesel in India.Bulk users, such as the Indian

Railways, can now source the fuel directly.

The investment and production conditions (as applicable) specified in the Marketing Resolution dated

08.03.2002 of MoP&NG will also be relaxed and a new clause added to give marketing rights for

bio diesel (B100) to the private biodiesel manufacturers.

The Union Shipping Ministry has decided that 20 percent of its diesel requirement will be met through

bio diesel at 12 major imports.

Regulations on sale of biodiesel

The recent Government decision to allow direct sale of

bio-diesel to consumers for use in vehicles, tractors

and locomotives would expand the market for bio

diesel .

Government of India has allowed private bio diesel

manufacturers to sell directly to consumers.

Earlier, only state run oil firms and private companies

with infrastructure investments of Rs. 2,000 crore

were allowed to market petrol, diesel or bio diesel.

Prospects

India has great potential for production of bio-fuels like

bio-ethanol and biodiesel from non-edible oil seeds.

From about 100 varieties of oil seeds, only 10 to 12

varieties have been tapped so far.

Wild crops cultivated in the wetland also form a source

of biodiesel production in India and according to the

Economic Survey of Government of India, out of the

cultivated land area, about 175 million hectares are

classified as waste and degraded land. Thus, given a

demand-based market, India can tap its potential and

produce biodiesel in a large scale.


GLOBAL BIODIESEL OUTPUT – FINDINGS OF THE STUDY

Device to detect biodiesel contamination

The probability of contamination of diesel fuel is increasing, as biodiesel becomes more popular and as

distribution and supply systems use the same facilities to store and transport the two types of fuels.

A professor and student team at the University of Tennessee, Knoxville, has developed a quick and easy

to use sensor that can detect trace amounts of biodiesel contamination in diesel.

The work of chemistry professor Ziling (Ben) Xue and doctoral student Jonathan Fong has been

published in the journal Chemical Communications.

―The ability to detect biodiesel at various concentrations in diesel is an important goal in several

industries,‖ said Xue. ―There is particular concern over biodiesel contamination in jet fuel, because at

higher levels, it can impact the thermal stability and freezing point of jet fuel leading to deposits in the

fuel system or gelling of the fuel. These issues can result in jet engine operability problems and possible

engine flame out.‖

Xue and Fong tested several dyes and found that the dye Nile blue chloride dissolved in alcohol, can be

made into a thin film with high sensitivity toward biodiesel contamination in jet fuel. They tested small

strips of the sensor and found that it could successfully detect amounts of biodiesel contaminant in

diesel as low as 0.5 ppm ten times below the allowable limit of 5 ppm in the U.S., in less than30 minutes.

With diesel, because it does not displace alcohol in the dye, the sensor remains blue. However,

biodiesel replaces the alcohol, changing the sensor color to pink. This change can be seen with the

naked eye.

The researchers say that the sensor can be deployed for use in the field.The sensor can also be used for

drivers delivering biodiesel diesel to gas stations to quickly verify that the blends are accurate. They are

working with the UT Research Foundation to find partners to commercialize the technology.

An estimated 9.5 million to 9.6 million metric tonne of palm oil will be used to make biodiesel.

Indonesia‘s production of palm oil based biodiesel may increase by 1.2 million metric tonne to

3.8 million metric tonne, Oil World reported.

Soybean oil use for biodiesel production is forecast to rise by 300,000 metric tonne to 7.3 million

metric tonne, according to the report. Soybean based biodiesel output in the U.S. is seen at

2.3 million metric tonne, Brazil may produce 2.1 million to 2.2 million metric tonne and

Argentina 2.05 million metric tonne.

World production of biodiesel is forecast to climb to a record

level, with output in Brazil rising, as the country increases

mandates for incorporation in transportation fuel, Oil World said.

Global biodiesel production may rise by 2 million metric tonnes

or about 8 percent, to 29.1 million metric tonnes in 2015.


PLANT CLOSURE

NBR facility in UK

Zeon plans to close its NBR plant at Barry, UK, by year end. The unit makes 15,000 metric tonne per

year of nitrile butadiene rubber (NBR), about 17% of Zeon‘s NBR capacity. Zeon cites uncertainty over

raw material supplies and market conditions.

*****

The Grafenrheinfeld reactor in Bavaria was taken offline as scheduled. The reactor, which went into

service in 1981, is the first to close since Germany switched off the oldest eight of its 17 nuclear

reactors in 2011, just after Japan‘s Fukushima disaster.

The next to close will be one of two reactors at the Gundremmingen plant in Bavariain late 2017.

The rest will be closed by 2022.

*****

Germany shuts down oldest nuclear plant

Germany‘s oldest remaining nuclear reactor has been shut down, part of a

move initiated four years ago to switch off all its nuclear plants by 2022.

ANTI DUMPING PAGE PTA

The Associated Chamber of Commerce and Industry of India (ASSOCHAM) has opposed

imposition of anti dumping duty on import of Purified Terephthalic Acid (PTA).

In a note submitted to the government, ASSOCHAM has stated that the capacity utilization by

the domestic industry for the past several years has been more than 100% and there still exists a

significant demand and supply gap in India, which has to be necessarily filled by imports.

Currently, PTA is being imported from China, European Union, Korea and Thailand.

ASSOCHAM says that during 2012-13, the total industry production was 34, 76,144 metric

tonne, imports were 6,47,959 metric tonne as against the demand of 41, 24,103 metric tonne

excluding captive consumption by the PTA producers.

ASSOCHAM argues that the imposition of anti-dumping duty on PTA will severely curb the

production of downstream products such as polyester filament yarn, polyester staple fibre and

synthetic textiles. The above products also contribute significantly to total exports from India.

The EU market may soon be closed to Indian exports of the above products due to the anti

subsidy investigation on PSF imports currently being conducted by the authorities there.

PSF exports from India to EU were 63, 241 metric tonne in 2012. There is an absolute as well

as a proportional decline of imports of PTA from China, EU, Korea and Thailand over 2010-11,

2011-12 and 2012-13. In addition, the landed value of PTA from China, EU, Korea and Thailand

has increased consistently and substantially over 2009-10, 2010-11, 2011-12 and 2012-13.

ASSOCHAM has said.


2-ETHYL HEXANOL

INVESTMENT OPPORTUNITY

Appearance Transparent liquid

CAS No. 104-76-7

Molecular Formula C8H18O

Synonyms 1-Hexanol 2'ethyl Octyl alcohol

2-Ethyl hexyl alcohol

Octanol

Odour Characteristic odour

Boiling point 183 to 186 deg C

Solubility Soluble in about 720 parts water,

in many organic solvents.

Dissolves about 2.5% its weight of water

at 25 deg C

Specification

Description Value

Purity 99.5% Min

Colour APHA 10 Max

Sp.Gr. (20/20 Deg.C) 0.832 to 0.834

Water 0.10% Max

Acidity (as acetic acid %) 0.015% Max

Aldehydes 0.10% Max (as EHA)

Sulphuric Acid Colour APHA 50% Max

Application sector

Plasticiser

2-ethyl hexanol is used in the manufacture of plasticisers such as dioctyl phthalate, dioctyl sebacate etc,

which are used as plasticisers in the production of PVC products, to impart flexibility to the product and

thus make it suitable for casting and moulding.

2-Ethyl Hexyl Acrylate

2-ethyl hexanol is used in the manufacture of 2-ethyl hexyl acrylate.

2-ethyl hexyl acrylate produces soft and tacky film with low temperature flexibilities. It is used as

co monomer with vinyl acrylates and other acrylates, to manufacture water based resins for paints,

textiles and paper coatings, leather finishing resins and pressure sensitive adhesives.

It is also used as a co monomer in solvent polymers for industrial metal finishing.

Miscellaneous applications include use as defoamer liquid in natural gas wells, etc.


2-ETHYL HEXANOL - INVESTMENT OPPORTUNITY

Indian producer of oxo alcohol

* Andhra Petrochemicals Ltd., Andhra Pradesh is the only producer in India

Product range of the company:

* Oxo alcohols * Iso butanol

* 2-Ethyl hexanol (Octanol) * n-butyraldehyde

* Normal butanol * Isobutyraldehyde

Andhra Petrochemicals Ltd. signed technology licence and engineering supply agreements with Davy

Process Technology Ltd, London (Davy), for the expansion of Oxo Alcohols Plant at Visakhapatnam.

The expansion project was completed and the capacity increased to 73000 metric tonne per annum

during 2010-11.

HPCL‘s Visakha Refinery has committed to supply propylene, which is the raw material.

Indian installed capacity / production of oxo alcohol

Period (April to March) Installed capacity Production in metric tonne

2012-13 73000 66,564

2013-14 73000 26,460

Performance during April 2013 to March 2014

During the Financial Year 2013-14, the plant of Andhra Petrochemicals Ltd. produced 26,460 metric

tonne (previous year 66,564 metric tonne), which works out to 36% (approx.) capacity utilisation.

Sales during the year were 29,157 metric tonne (previous year 64,407 metric tonne).

Lower production was due to non supply of propylene by HPCL due to revamp of propylene recovery

unit (PRU) in the 1st quarter to enhance propylene production capacity that resulted in shutdown of the

plant for 58 days and a fire accident on 23rd August, 2013 in HPCL‘s cooling tower that resulted in

shutdown of PRU during most part of the remaining period in the year.

Company had incurred a net loss of Rs.25.67 crores during the Financial Year 2013-14 against profit

after tax of Rs.3.12 crores made during the previous year.

This was mainly due to non availability of propylene for a long period resulting in 212 days production

loss

Trade Analysis

Period (April to March) Import in metric tonne Export in metric tonne

2012-13 58471 47

2013-14 100495 321

2014-15 134894 6390

Source : Ministry of Commerce, Government of India



Demand analysis

Demand drivers

The major areas of application of oxo alcohols are in the production of plasticisers, which include the

following.

* Dioctyl phthalate * Dibutyl phthalate

* Dioctyl adipate * Diisobutyl phthalate

* Dioctyl sebacate * Butyl benzyl phthalate

Oxo alcohols are also used in the production of derivative products such as 2-ethyl hexyl acrylate, .

Growth rate in demand

Overall AAGR in demand for oxo alcohols through 2020: 7% per annum

Indian demand – Period April 2015 to March 2016

Indian demand Around 170,000 metric tonne

Global scenario

Global installed capacity 3.9 million metric tonne per annum

Global production/demand 3.2 million metric tonne

Growth rate 2% per annum

Global plasticizer scenario

Global plasticizer consumption has increased from 6.1 million metric tonne to 6.7 million metric tonne

over the last five years.

General purpose (GP) phthalates represent 85% of the global plasticiser consumption .

Among these GP phthalates, di octyl phthalate (DOP) share is 50% and di isononyl phthalate (DINP) and

di iso dodecyl phthalate (DIDP) account for more than 33% of the world demand. Other phthalates

market share is 17%.

Regulations

The plasticiser industry is seeing considerable changes internationally, stemming from concerns over the

safety of the ‗low‘ phthalates, in general, and DOP in particular.

There is now a fair body of scientific evidence that weighs against DOP‘s use, especially in food contact

applications and in products for children such as toys. They are now on the watch list of

environmentalists, regulators, retail companies and even consumers.

In many parts of the developed world and especially in Europe, voluntary initiatives have led to a phase

out of phthalates in some applications, even before chemical regulations placed restrictions and outright

bans.



Low molecular weight phthalates like DEHP, benzyl butyl phthalate (BBP), di isohexyl phthalate (DIHP)

and di isobutyl phthalate (DIBP) are restricted product by the EU legislation, REACH.

However, there are no restrictions in the use of phthalate plasticizers in other regions such as China

and India.

Global trade of 2-ethyl hexanol (Import) Period (January to December) Import in metric tonne

2012 878772

2013 1154723

2014 1182220

Global outlook

Demand for 2-ethyl hexanol is predicted to grow in China at an average 7% per annum.

No growth or even some decline is forecast for the US, Europe and Notheast Asia (Japan, South Korea

and Taiwan) as legislation in most major industrial countries to ban DOP in certain applications, spurs

end users to switch to alternative phthalates, particularly di isobutyl phthalate and di propylheptyl

phthalate.

2-ethyl hexanol is produced from propylene

The conventional method, mostly adopted all over the world, for the production of n-butanol and

2-ethyl hexanol starts with propylene as the starting material.

This is the preferred technology in many countries, starting with natural gas as feed stock, which is

converted into oxo synthesis gas and pure hydrogen. The propylene feed stock with the synthesis gas

would be converted to butyraldehyde.

Butyraldehyde would then be hydrogenated to butanol or can be condensed to a C6 aldehyde before

hydrogenation to 2-ethyl hexanol.

Process outline

The industrial production of 2-ethylhexanol is by a three step process involving the aldol self

condensation of n-butyraldehyde followed by dehydration and hydrogenation.

The n-butyraldehyde was originally obtained from acetaldehyde via ethylene but this has been

superseded by the oxo process from propylene.

Process description of Davy process technology

Hydroformylation

Butyraldehyde is produced by reacting propylene with carbon monoxide and hydrogen. The major

product is the straight chain normal butyraldehyde, with smaller amount of branched chain

iso-butyraldehyde. The reactions are carried out at mild temperature (< 100 deg. C) and low

pressure (< 20 bara) in the presence of a homogeneous rhodium based catalyst with a phosphine ligand.

http://www.icis.com/v2/chemicals/9075774/ethylene.htmlhttp://www.icis.com/v2/chemicals/9076453/propylene.htmlhttp://www.davyprotech.com/what-we-do/licensed-processes-and-core-technologies/licensed-processes/oxo-alcohols/specification/



Aldolisation

2-ethyl hexanol is produced from normal butyraldehyde in two reaction steps.The first step is the

aldolisation of normal butyraldehyde to butyraldol and dehydration of butyraldol to produce 2-ethyl 3-

propyl acrolein (EPA).

The aldolisation and dehydration reactions are conducted in the presence of aqueous caustic soda at

120 deg. C:

Hydrogenation

In the LP Oxo Alcohols process, alcohols are produced by low pressure rhodium catalysed

hydroformylation of an olefin with syngas (CO and H2), followed by hydrogenation of the intermediate

aldehyde.

For example, propylene is hydroformylated to produce normal butyraldehyde and iso butyraldehyde

which are then hydrogenated to produce normal butanol and iso butanol respectively:

Application of oxo LP SELECTOR LM TECHNOLOGY

.

Prognosis

The demand for oxo alcohols is likely to go up steadily in India .

Substantial quantity of Indian requirement of oxo alcohol is presently met by imports.

Considering the growth in demand for oxo alcohols, strong case exists for capacity creation in India .

Firm supply source for propylene for the project is important. It would be appropriate if the project can

be set up near the source of availability of propylene, with participation in the project by the propylene

producer also to ensure steady availability of propylene for the project.


SPOTLIGHT ON SPECIALITY CHEMICAL

EPOXY FATTY ACID METHYL ESTER (EFAME)

General details

CAS No: 72480-50-3

Appearance: Light yellow oily liquid

Application:

EFAME is an eco friendly plasticizer

Epoxy fatty acid methyl ester (EFAME) is a plasticizer that is used to partly replace phthalate plasticizers

like DOP..

It is used as plasticizer in the production of PVC products like PVC leather, hoses, sheets films, canvas,

etc.

Packaging

200 litre iron drum, 1000 litre IBC drums, 24000 litre flexitank

Producer‘s specification

Name of the producer: FuJian ZhiShang Biomass Materials Co. Ltd., China

Description Value

Appearance ≤ 60

Acid value ≤ 0.6

Density (g / cc) 0.91 – 0.92

Heat Loss ≤ 0.5

Flash point (deg. C) 180 – 185

Freezing point (deg. C) ≤ 8

Epoxy value ≥ 4.0

Iodine value

(gl2/100 g) ≤ 6.0

Process for the production of EFAME

Fatty acid methyl ester -------------- > Epoxy fatty acid methyl ester (EFAME)

EFAME can be produced by epoxidation of fatty acid methyl ester.

Epoxidation is carried out by reacting fatty acid methyl ester with peracid like acetic acid / formic acid

and hydrogen peroxide in presence of catalyst like benzyl triethylammonium chloride.

Source: FuJian ZhiShang Biomass Materials Co. Ltd., China

Chinese Patent No: CN 201210141149 dated 19 Sep, 2012


EPOXY FATTY ACID METHYL ESTER (EFAME)

Feedstock:

* Fatty acid methyl ester

* Hydrogen peroxide

* Acetic acid

Manufacturers include the following

* Hebei Jingu Plasticizer Co. Ltd., China

* FuJian ZhiShang Biomass Materials Co. Ltd., China

Indian import

Date Origin Country Port of Discharge Unit Quantity

10-Dec-14 China Nhava Sheva Sea KGS 760

10-Sep-14 China Patparganj KGS 950

4-Jul-14 China Nhava Sheva Sea KGS 380

26-May-14 China Delhi Air Cargo KGS 12

13-May-14 China Nhava Sheva Sea KGS 20,000

27-Mar-14 China Nhava Sheva Sea KGS 20,000

3-Mar-14 China Nhava Sheva Sea KGS 40,000

13-Feb-14 China Nhava Sheva Sea KGS 83,970

16-Sep-13 China Nhava Sheva Sea KGS 83,740



11-Jul-13 China Nhava Sheva Sea KGS 18,210

11-Jul-13 China Nhava Sheva Sea KGS 20,090

CIF Price of imported product

72

74

76

78

80

82

84

86

88

90

92

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Period


VITAMIN A – INVESTMENT OPPORTUNITY

Derivatives

Vitamin A has a few derivatives or chemical variations technically such as the following:

* Vitamin A1 (retinol)

* Vitamin A2 (retinol)

* Vitamin aldehyde (retinal)

* Vitamin A acid (retinoic acid)

* Vitamin A acetate (retinyl acetate)

* Vitamin A palimitate (retinyl palmitate)

* Vitamin A propionate (retinyl propionate)

Synthetic Vitamin A actetate and Vitamin A palmitate are the derivatives most generally used.

Product Specification

Vitamin A acetate (dry powder) 0.5 miu per gram

Vitamin A acetate (oily liquid) 1.0 miu per gram

Vitamin A palmitate (oily liquid) 1.0 to 1.7 miu per gram

* miu – million international unit

Application sector

Vitamin A is an essential nutrient which plays an important role in vision, embryos genesis, normal

reproduction and immune competence.

CAS Number 68-26-8

Synonym Retinol

EINECS Number:201-228-5

Chemical Formula

Vitamin A acetate dry powder C31H52O3

Vitamin A palmitate oily liquid C36H60O2

Appearance Pale yellow crystalline solid

Odour Faint odour

Solubility Insoluble in water but

dissolves in most

organic solvents

Toxicity

Acute oral, mouse (LD50) 1510 mg per kg

Acute oral, rat (LD50) 2000 mg per kg



Vitamin A is used for the treatment of the conditions such as the following

* Night blindness;

* Conjunctival xerosis (dryness and wrinkling of the conjunctiva)

* Corneal xerosis. (dryness and wrinkling of the cornea)

* Bitot's spots (these are gray plaques which form over the conjunctiva)

* Keratomalacia (the cornea is damaged and ulcers form on the cornea)

* Growth retardation;

* Chest infection

* Follicular hyperkeratosis

Form Application

Vitamin A1

(retinol)

Acne is one of the main uses for retinol.

Retinol is used to treat Xerophthalmia and Bitot's spot, disorders caused by a

Vitamin A deficiency.

Used to combat the signs of aging

Vitamin A2(retinol) Functions similar to that of vitamin A1

Vitamin aldehyde

(retinal)

A component of the visual pigments in the eye

Vision begins with the photoisomerization of retinal.

Vitamin A acid

(retinoic acid)

Is an important signaling molecule and hormone in vertebrate animals

Helps cells to grow and develop, especially in the embryo.

To treat acute promyelocytic leukemia

Vitamin A acetate

(retinyl acetate)

Used in nutritional supplements.

As cosmetics to alter skin composition

VitaminA palmitate

(retinyl palmitate)

Treatment of eye disorders such as Bitot's spot

Used as an antioxidant and to fortify foods such as dairy products

As cosmetics to treat skin problems including acne and wrinkles.

Vitamin A

propionate

(retinyl propionate)

Retinyl propionate is effective for reducing the appearance of lines and wrinkles .

Retinyl propionate is used for acne treatment

Forms and formulation:

Oral or parental preparations are usually water dispersed, oil free Vitamin A, utilizing a non ionic

dispersing agent.

Tablets and capsules for oral use generally contain finely dispersed Vitamin A in gelatine or sugar.

Stable gelatinized powder is also used.

Margarines, cooking oil and milk are fortified using oil concentrates of Vitamin A.

http://www.news-medical.net/health/What-is-Leukemia.aspxhttp://en.wikipedia.org/wiki/Antioxidant



Import in India of Vitamin A, Vitamin A acetate , Vitamin A palmitate and Vitamin AD3

Period

(April to March)

Vitamin A Vitamin A

acetate

Vitamin A

palmitate

Vitamin AD3 Total

Quantity in kg

2011-12 9875 79260 39304 115984 244423 2012-13 15601 92936 18495 87145 214177 2013-14 9500 107890 15420 155898 288708 2014-15 1100 48460 8475 57100 115135

Indian producer

Piramal Healthcare Ltd is the only producer of Vitamin A in India .

Demand drivers:

Vitamin A deficiency has been recognized to be a major controllable public health and nutritional

problem.

Indian demand of Vitamin A would be driven by the following factors:

* Government‘s public health promotional schemes and its envisaged health expenditure.

* Performance of the food processing industry

* Growth of the per capita income and GDP of the country

Need for Vitamin A supplements

Vitamin A is found in animal foods (especially liver and

milk). Vitamin A precursors, found primarily in plant

products (generally leafy green vegetables, yellow and

red fruits and vegetables, and red palm oil), can be

converted into Vitamin A in a ratio estimated as 6:1.

However, Vitamin A intake is often inadequate because

of the seasonality of food sources, the early

abandonment of breastfeeding and the practice of not

giving Vitamin A rich foods to young children. Vitamin

A is also destroyed by improper processing and

storage because it decomposes in light.

Vitamin A absorption may also be impaired, where the

diet is very low in fat or where intestinal parasites are

prevalent.

Therefore, Vitamin A supplement has become

necessary.



Indian demand for Vitamin A

Phone:43511945 / 43540719 Around 300 metric tonne per annum in pharmaceutical and food processing sector.

Global scenario for Vitamin A

For Vitamin A, DSM dominates with 48% of global market share and BASF dominates 30% of global

market.

Other producers of vitamin A include Zhejiang NHU Company Limited (NHU), China

Global market for Vitamin A Around USD 60 million

Vitamin A AAGR (2011 through 2016) 3% per annum

An estimated 250 million preschool children in the world are Vitamin A deficient and it is likely that in

Vitamin A deficient areas, a substantial proportion of pregnant women is Vitamin A deficient.

Vitamin A deficiency is a public health problem in most of the world including Africa and South East Asia.

In view of the above Vitamin A deficiency issues in several developing countries, there would be

sustained demand for Vitamin A in the global market.

Manufacturing process

Although it is possible to isolate Vitamin A from natural sources, practically all the Vitamin A used today

is obtained by synthesis.

Prognosis

Consumer demand for synthetic Vitamin A is steadily increasing in tune with the growth in the

per capita income and government‘s public health expenditure programmes. This trend is likely to

continue.

Since adequate capacity has not been built for Vitamin A in India to meet the increasing demand, there is

supply gap which is being met by imports.

Considering the present supply gap and the steady growth in demand, strong case exists for capacity

creation for Vitamin A in the country.

READ NANDINI CHEMICAL JOURNAL AND FORGE AHEAD


NEWS ROUND UP – INTERNATIONAL

Styrene butadiene rubber (S-SBR)

Zeon (Tokyo) will build a solution styrene butadiene rubber (S-SBR) line in Singapore by the beginning

of 2016, doubling capacity there, to 70,000–80,000 metric tonne per year . The company is spending

¥7 billion ($57.8 million) on the project, which will use Zeon technology. Zeon‘s other S-SBR plant, at

Tokuyama, Japan, makes 55,000 metric tonne per year .

*****

PO-polyols complex in Thailand

PTT Global Chemical (PTTGC; Bangkok), Thailand‘s largest petrochemical company will invest about

$1 billion to build a propylene oxide (PO)–polyols complex in Thailand.

PTTGC will build a 200,000 metric tonne per year PO and 100,000 to 150,000 metric tonne per year

polyols complex at Rayong.

The polyols unit will be based on technology provided by Vencorex, a joint venture with Perstorp.

PTTGC has raised its stake in Vencorex, a producer of polyurethane intermediates, to 85%.

The investment is slated to be completed in 2019.

******

PE plant in Thailand

PTTGC is converting a 400,000 metric tonne per year linear low density polyethylene (PE) plant to

metallocene technology with completion due in 2018.

*****

Rare Earth scenario

Until the 1990s, the United States was the dominant producer of rare earths and China mined almost

none. That scenario changed when the largest U.S. mine was shut and Chinese producers took

advantage of cheap labour and more relaxed environmental regulations. By the early 2000s, China

supplied 97 per cent of the global market.

The decision by China in 2010 to suddenly restrict exports, sent users scrambling for supplies of

lanthanum, neodymium, cerium and other rare earths.

Concerned by the reliance on Chinese supplies, the U.S. Department of Defence and other government

agencies began studying the issue. In July, 2010, just months after their report was published, the fears

began to be realized when China cut export quotas by 72 per cent to ensure domestic supply.

Rare Earth prices began to climb as consumers built up inventories. Price of lanthanum, used in hybrid

car batteries, and neodymium, for powerful magnets, both jumped five fold during 2011. Price of cerium,

for glass polishing, soared sixfold.

Yet grave predictions of a shortage of these critically important materials proved to be flawed.

Rare Earth consumers such as Toyota Motor Corp. simply switched to cheaper alternatives. The glass

polishers started recycling cerium. Toyota Motor Corp. went one step further, developing motors for

hybrid and electric vehicles that do not need rare earths. Oil refiners substituted Rare Earths from the

catalysts used in refining.


NEWS ROUND UP – INTERNATIONAL

Rare Earths would soon assume geopolitical significance. The minerals are used in smart bombs,

Tomahawk cruise missiles and F-35 fighter jets.

*****

Proposed off the Gulf ethylene projects

Company Location Cost

estimate

Products (capacities,

1,000s metric tonne per year )

Status Start-

up

Braskem Idesa Coatzacoalcos,

Mexico

$4.5 billion Ethylene (1,050);

HDPE (400, 350);

LDPE (300)

Construction 2016

Appalachian Resins Monroe County,

OH

1.3 billion Eethylene/PE (230) Development 2018

Odebrecht/Braskem Parkersburg, WV 3.8 billion Ethylene (world scale);

PE (three plants)

Reevaluating 2020+

PTTGC/Marubeni Dilles Bottom,

OH

5.7 billion Ethylene (1,000);

HDPE (700);

EG (500);

EO (100)

FID in 2016 2020

Shell Chemicals Monaca, PA NA Ethylene (1,500);

HDPE (2x500);

LLDPE (500)

FID ―soon‖ NA

Badlands NGL North Dakota 4 billion Ethylene/PE (1,500) Development NA

Aither Chemical West Virginia NA Ethylene NA NA

NA: Not available; FID: Final investment decision. Source: Companies, IHS Chemical Week.

*****

DUPONT FINED FOR

LA PORTE MERCAPTAN RELEASE

OSHA has cited DuPont for 11 safety violations and fined the company $99,000, after investigating

a methyl mercaptan leak that killed four employees at DuPont‘s La Porte, TX, facility in November

2014.

OSHA says that DuPont has been cited for one repeat, nine serious, and one ―other than serious‖

violation. The repeat violation has been assessed for not training employees on using the building‘s

ventilation system and other safety procedures. DuPont was cited for a similar violation in

July 2010.

DIRECTORY OF

GLOBAL LICENSORS OF TECHNOLOGY, CONSULTANTS

AND

DESIGN AND DETAILED ENGINEERING ORGANISATIONS

FOR CHEMICAL PROJECTS

PUBLICATION AVAILABLE IN CD & HARD COPY

CONTACT :NANDINI CONSULTANCY CENTRE,CHENNAI – 600 090

Tel: 044- 43511945,43540719,24916037

E-mail: [email protected], [email protected]


TECHNOLOGY DEVELOPMENT

Tannery waste into activated carbon

In an initiative that would not only help reduce the industrial carbon footprint, but also successfully

embrace the waste to wealth concept, a group of scientists at the Council of Scientific and Industrial

Research and Central Leather Research Institute (CLRI), Chennai have developed a technology to make

environment friendly shoe soles.

Scientists have developed a process to convert fleshing, the soft tissue of animal muscle and fat, one of

the effluents produced in tanneries, into activated carbon. This compound is one of the major

components in shoe manufacture.

Fleshing, which is usually disposed in landfills leading to contamination of groundwater, has become a

viable alternative to carbon black, widely used in making soles of high end leather shoes. This activated

carbon not only adds colour but is also used as a reinforcing material in soles. Apart from being cost

effective and lightweight, the compound reinforces strength, is flexible, and abrasive resistant.

Patented by CLRI, technology is a result of the Zero Emission Research Initiatives for Solid Waste, a

network project under CSIR.

The conventional activated carbon does not contain cross linking agent like calcium oxide, therefore,

cannot be used as filler in rubber manufacturing. However, the activated carbon converted from

fleshing waste contains calcium and can be used effectively as a filler in rubber manufacturing.

Scientists says that the activated carbon matches the properties of conventional rubber soles. It is light

weight and leaves no imprint on carpets, one of the drawbacks in conventional soles.

Carbon black derived from heavy petroleum products was once widely used to make soles. However

after scientists realised its carcinogenic qualities, it was banned and replaced by silica. However, silica is

not only expensive but fails to give the intended colour tone.

Researchers are also working towards using the technology to manufacture tyres, where carbon black is

still extensively used.

This new technology will help in internalising the challenges of solid waste as fleshing generated in

tanneries is reused by the leather industry.

*****

Ozonolysis of renewable raw materials

Renewable chemicals firm P2 Science has received a patent on its process for the scalable, cost effective

ozonolysis of renewable raw materials, to create ingredients for the flavors and fragrances and

cosmetics markets and intermediates for lubricant additives and polymers.

*****

Alkene monomer technology

Sirrus (Cincinnati), a company focusing on the growth and commercialization of product platforms based

on 1,1-disubstituted alkene monomers, has announced partnership with Elmer‘s Glue, Sun Chemical, and

General Motors, with the last also an investor in the company.



Products based on the alkene monomer technology can cure at room temperature—a key advantage,

since curing is an energy- and cost intensive process for many consumers of adhesives and coatings, such

as the automotive sector. The technology also has low viscosity and can reduce solvent use, leading to

lower volatile organic compound emissions.

The key focus now is demonstrating the commercial viability of the technology. The company is

developing a capital plan, including building its first dedicated production facility, which will be a priority

over the next two to three years,

The plant is expected to have a capacity of about 2,000–3,000 metric tonne per year.

*****

Aramco‘s global research programme encompasses facilities in Houston, Detroit and Boston in North

America, as well as European facilities in Aberdeen in the UK,Paris in France, and Delft in the

Netherlands.

The Beijing center extends the company‘s research network in Asia, joining the CO2 Management

Center at the Korea Advanced Institute of Science and Technology (KAIST) in Daejeon, South Korea.

These facilities complement Saudi Aramco‘s EXPEC Advanced Research Center (EXPEC ARC) and the

Research and Development Center (R&DC) activities in Dhahran and another key Saudi research center

in Thuwal at King Abdullah University of Science and Technology.

*****

Hydro-fracturing for gas exploration

The Tripura unit of Oil and Natural Gas Corporation (ONGC) has introduced Hydro fracturing (HF)

job procedure to intensify exploration of natural gas, for supply in different projects of the state.

*****

Beijing Research Center

Saudi Aramco opened the Beijing Research Center in Beijing, China on

April 29.

The 4 400 square meter center makes it the latest addition to Saudi

Aramco‘s global research and development network.

Fuel made from algae

Researchers have developed a new method to convert

squalene, which is produced by microalgae, to gasoline or

jet fuel.

The study was part of a project by Japanese researchers

that attempts to make use of oil-producing algae in waste

water treatment. The new method developed by Professor

Keiichi Tomishige and Dr Yoshinao Nakagawa from

Tohoku University and Dr Hideo Watanabe from the

University of Tsukuba uses a catalyst with cerium oxide

support and ruthenium metal particles.



Squalane was treated with this catalyst and hydrogen to produce smaller hydrocarbons. The carbon–

carbon bonds located between the methyl branches were selectively dissociated and branched alkanes

were produced without the loss of branches.

Branched hydrocarbons are good components for gasoline and jet fuel because of the high octane

number, low freezing point and good stability. The conventional catalyst, the combination of platinum

and strong solid acid, produces a very complex mixture of products and is reusable four times without

loss of performance.

*****

Synthetic gas to ethylene glycol technology

On June 9, Wison Engineering Services Co., Ltd., China announced that Wison Engineering Ltd., its

indirect nonwholly owned subsidiary, has signed a strategic cooperative agreement with Guizhou Xinxin

Chemical Engineering Co., Ltd. (Xinxin Group) and Tianjin University.

According to the agreement, Wison Engineering, Tianjin University and Xinxin Group will give full play

to their respective advantages to enhance the development of their proprietary synthetic ga -to ethylene

glycol technology and to promote its commercialization.

Tianjin University will provide the process design package (PDP) of synthetic gas to ethylene glycol

technology, Wison Engineering will work on PDP conversion and offer engineering design and project

management services.

Xinxin Group will invest in the construction of a 10 000 metric tonne per annum ethylene glycol

demonstration unit for the yellow phosphorus tail gas to 70 000 metric tonne per annum oxalic acid and

10 000 metric tonne per annum ethylene glycol project as a pilot plant for further technology

optimization.

Wison Engineering is responsible for the basic and detailed design, procurement construction

management, and commissioning of the demonstration unit. It will take the lead to adopt advanced plant

design software,including Smart Plant 3D and Smart Plant P&ID, to process the digitalized engineering

work, which can improve efficiency and the design progress.

Xinxin Group, is an integrated chemical group and focuses on the mining, phosphorous and coal

chemicals, and carbon 1-chemicals .

*****

CLRI lab develops diabetic footwear

More than 50% of lower leg amputations are estimated to be linked to diabetes. A therapeutic open

footwear developed by scientists at Central Leather Research Institute (CLRI) now promises to reduce

foot complications in diabetic patients by reducing abnormal distribution of foot pressure.

CLRI developed the footwear in collaboration with MV Hospital for Diabetes and Diabetes Research

Centre and Novo Nordisk Education Foundation.



CLRI labs have worked on features like rigid counter stiffener that can support the back of the feet and

limit joint mobility and prevent shear stresses as well as fasteners, that can be adjustable according to

the foot volume. Such comfort factor was not there in the MCR and MCP footwear that have been

available in the market for many years.

NANDINI CONSULTANCY (S) PTE.LTD.,SINGAPORE

Nandini Consultancy (S) Pte. Ltd., Singapore provides services to chemical and allied industries all over the

world in market research, export trade promotion,technology appraisal, identification of project

opportunities for investment and data base services.

Nandini Consultancy,Singapore is the overseas arm of Nandini Consultancy Centre,India, a renowned firm

of chemical engineers and project consultants based at Chennai, serving the chemical industry for over

20 years.

Consultancy (S) Pte.Ltd

The sole is made of polyurethane, with

extra depth to provide a larger area for

more effective pressure distribution, an

outsole with special tread for better grip

and traction and an insole bed with layers

of foam to provide added comfort and

shock absorption for the wearer.

Scientists at the shoe design and

development centre in CLRI said that in

addition, they have provided a specially

derived angle of slant in the sole to give

the 'rocker' effect, which is essential to

offload pressure from the sole of the feet.

*****

Based in Singapore, a global trading hub and

regional headquarters to over a thousand MNCs,

Nandini Consultancy is well positioned to provide

services to Indian chemical industries in global

market research, technology sourcing, export

promotion of products and in formulating

international marketing strategies. NANDINI‗s

clients include several leading Indian and

multinational companies in the chemical and allied

industry sector.

Nandini Consultancy (S) Pte. Ltd.

05, Cecil Street, 0601, The Octagon,

Singapore – 069534

Office: +65-6827 4510,

Mobile : +65-9112 2166,Fax : +65-6827 9601,

E-mail: [email protected]


CHINA NEWS

Microfibre material project

Microfibre synthetic leather products are widely used in the areas of footwear, sofa,luggage, ball, glove,

garments, automotive interior and military products.

The company‘s capacity to make microfibre synthetic leather currently reaches 36 million square meters

a year. The launching of the phase one – the 37.50 million meter per annum project will help the

company to improve product quality,stimulate scale advantage, reduce operating costs, optimize product

structure, enhance profitability and cement its leading position within the industry.

China‘s demand for microfibre synthetic leather has been growing stably in recent years. By the end of

2014, the domestic capacity was 130 million square meters and the output for the year reached 116

million square meters, while the consumption was 208 million square meters.

.*****

Butyrrolactone

Jaewon Paiersen Fine Chemical Co., Ltd. announced on May 7 that its new 20 000 metric tonne per

annum γ-butyrrolactone (GBL) and 1-methyl-2-pyrrolidinone (NMP) production facility operates steadily.

The company spent RMB210 million to construct this plant , which uses 1,4-butanediol as raw material

to make GBL and NMP.

The NMP production line is composed of the distillation and purification technology and equipment.

The raw material 1,4-butanediol is supplied by the 130 000 metric tonne per annum plant of Shaanxi

Coal and Chemical Industry Group Co., Ltd.

GBL produced at the new capacity can reach a purity of 99.98% and water content less than 39 ppm;

the purity of NMP is 99.87% with water content less than 80 ppm. The company is trying to run the

production line of electronic grade NMP.

Jaewon Paiersen Fine Chemical Co.,Ltd. is a joint venture invested by Shaanxi Paiersen Chemical

Company Limited and Korean Jaewon Company. The JV is located at Hua County Industry Park, Guapo

town, Hua county, Shaanxi province and occupies a land of 8.9 hectares.

*****

On May 28, Huafon Microfibre (Shanghai) Co., Ltd. announced the

first phase (37.50 million meter per annum) of the 75 million meter

per annum industrial nonwovens microfibre project.The first phase

project will cost total of RMB2.28 billion.

The whole project includes two phases.The first phase is planned to

kick off in May 2015 and is scheduled to be put into operation in June

2016, while the second phase will start in July 2016 and begin

production in March 2017.


NEWS ROUND UP – INDIA

Bitumen is the first layer even in concrete roads and a step up in construction activity is bound to reflect

in the consumption of the commodity. Although the government is making efforts to switch to concrete

and other new materials for road construction, bitumen is still consumed. For highways, especially,

construction continues to be largely reliant on bitumen.

According to Petroleum Planning and Analysis Cell, import of bitumen went up to about 4.5 lakh metric

tonne in 2014-15 from nearly 2.3 lakh metric tonne in the previous fiscal. The domestic production of

bitumen has remained flat at 47 lakh metric tonne per annum for the last two years ,as it is considered a

low value product while most refineries focus on high value products.

The Government of India is expected to award about 10,000 km of road construction over the next

few weeks as part of its plan to rebuild the country's creaky road infrastructure to boost growth. Of the

16 projects awarded during 2013-14, work has began on 12 projects. The road transport ministry has

set a target of achieving 30 km per day of highway construction by 2017.

*****

Animal feed industry poised to double – Findings of the study

India‘s animal feed industry, which is currently at $15 billion, is poised to double and touch $ 30 billion in

the next five years to cater to the growing protein requirements of the country, a report published by

Yes Bank says.

Animal feed industry in India will have to increase their capacities keeping in mind the quality issues to

leverage on the growing demand for compound feed. India‘s feed industry is growing at CAGR of 8%

with poultry, cattle and aqua feed sectors emerging as major growth drivers. The demand for animal

protein and dairy products in India will increase the compound feed consumption volume to 28 million

metric tonne by 2017-18.

In India, at present, cattle accounts for consumption of 7.5 million metric tonne, aqua industry consumes

one million metric tonne, while the poultry industry consumes around 13 million metric tonne of the

feed, with soy meal and corn being the prime consumables.

In volume terms, at present, an estimated 22 million metric tonne of feed is required in the country.

Policy measures are needed to be taken to improve milk productivity of cattle, which stood at

5 to 10 litres against 15 to 20 litres globally. Good feed is one of the ways of achieving this.

Bitumen imports

A sharp pickup in road construction led to 93% surge in bitumen imports in

2014-15, when 13 km of roads were built every day on an average.

The government awarded 7,980 km of projects in 2014-15, more than

double the 3,962 km awarded in the previous year.

The per capita meat and milk consumption is growing, especially

in China and India and is projected to remain high in the

European Union, North America, Brazil and Russia. With changing

income levels and more people eating fish, meat and chicken,

there will be a higher requirement of processed dairy, aqua and

poultry products, which in turn will result in higher feed

requirement, the report says.


NEWS ROUND UP – INDIA

The feed sector in India is at an inflection point with the emergence of modern dairies ranging from

50 animals to upwards of 500 animals, increasing exports of aqua product

*****

Phenol-acetone project

Deepak Nitrite has established a wholly owned subsidiary to manage a project to build a phenol-

acetone plant at Dahej, in Gujarat.

The capacity of the phenol unit will be 200,000 metric tonne per year and that of the acetone unit will

be 120,000 metric tonne per year .

The plant is expected to start operations over 2017–18, and it will need about 263,000 metric tonne

per year of cumene feedstock.

Kellogg, Brown & Root International has been selected for technology and engineering services, and

ThyssenKrupp Industrial Solutions has been selected as the engineering, procurement and construction

management contractor.

******

The project, which aims to meet growing demand for polyols, will be carried out in phases. The first

phase will be completed in 2016 and will increase capacity to 75,000 metric tonne per year .

The subsequent phases will each add 25,000 metric tonne per year and be commissioned every

12 months.

*****

Plans of ONGC

ONGC has set an ambitious target of drilling about 1.74 million metric tonne incremental crude oil and

2.98 billion cubic metres (bcm) of additional natural gas in FY16. It produced 22.26 million metric tonne

crude in FY15, marginally higher from the previous year‘s 22.25 million metric tonne. Gas output was

22.02 bcm, less than 23.28 bcm in the previous year.

The chunk of production is coming from Western offshore. It is a tough job to take out hydrocarbon

from offshore assets, which ONGC has been doing for decades. In future, incremental oil and gas would

come from the same region.

Currently, 34.5% of ONGC‘s crude production comes from improved and enhanced oil recovery

schemes.

Polyols capacity

Manali Petrochemicals, Chennai, a producer of propylene

oxide, propylene glycols, and polyols, plans to expand

polyols production capacity from 50,000 metric tonne per

year to 150,000 metric tonne pe

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