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Extracts from Nandini Chemical Journal, Mar 2014

POLYETHERAMINE MARKET| BIOACETIC ACID MARKET| ORGANIC PEROXIDES MARKET
Highlights of Some of the Articles

TALK OF THE MONTH : WOES OF INDIAN CHEMICAL INDUSTRY LARGELY DUE TO INTERNAL ISSUES
SPOTLIGHT ON SPECIALITY CHEMICAL - POLYETHERAMINE
BIOACETIC ACID –TECHNOLOGY DEVELOPMENT EFFORTS
ORGANIC PEROXIDES – PRODUCT PROFILE
COUNTER PRODUCTIVE MOVE TO DIVERT LAND FOR SALT CULTIVATION FOR INDUSTRIAL PARKS
GLOBAL TREND IN CRUDE OIL PRODUCTION AND PRICE BEHAVIOUR
POWER POTENTIAL OF FUSION ENERGY
SHALE GAS PROJECTS IN UK RECENT DEVELOPMENTS
SHALE GAS INDUSTRY IN USA AT THE CROSS ROADS
RECENT DEVELOPMENTS IN ALGAE PROJECTS
OTHER FEATURES
OTHER ARTICLES

TALK OF THE MONTH

WOES OF INDIAN CHEMICAL INDUSTRY

LARGELY DUE TO INTERNAL ISSUES

Indian chemical industry now faces several issues, which can be well tackled if adequate efforts would be put forth to find appropriate solutions in tune with India’s strength. On the other hand, instead of finding such solution, the problems are often attributed to the monitoring policies of developed countries and competitive threat from China.

A careful study of the issues would clearly highlight the fact India has necessary inherent strength to overcome the problems in quick time and forge ahead in steady and sustained manner.

One problem is that efforts are often made to find solution for problems faced by Indian chemical industries based on global model of development and technologies developed abroad in conditions which are different from that of India.

Such policies in the past have created difficulties, leading to project cost escalation, expensive and continuing import of feedstock from abroad etc.

Of course, the biggest issues faced by Indian chemical industry today is on the energy front. With lack of adequate natural gas and crude oil from indigenous source, the country is heavily dependent on import of fuel source and petrochemical feedstock, which is often subjected to considerable international price fluctuation and threat of cartel formation by global suppliers.

The production cost of essential agro inputs like urea and di ammonium phosphate are subjected to international trends and developments with regard to feedstock, on which India has no control or say. Price of ammonia,which is the essential input for di ammonium phosphate, depend on price of petrochemical feedstock. There is no availability of feedstock in India for potash fertilizer and Indian dependence on potash import are now total.

High level of import of fuel source such as crude oil, natural gas and coal as well as fertilizer inputs such as di ammonium phosphate, urea, potash are causing huge out flow of foreign exchange year after year, which result in serious current account deficit problems. Such dependence on high level of import and associated price fluctuations are contributing to destabilse the over all chemical industry scenario in India to a considerable extent.

It is apparent that without reducing the import dependence to a significant extent, it would not be possible for Indian chemical industry to grow or prosper in globally competitive manner. Obviously, this requirement implies that country has to search for appropriate and indigenous energy source and also should focus on setting up such projects where excessive dependence on import of feedstock would be avoided.

Under the circumstances, much greater attention has to be paid to find the ways and means for exploiting the indigenous energy source such as wind power, solar power, algae biofuel, coal gasification project etc.

In similar way, it is also necessary to set up chemical projects based on cellulosic biomass in a big way, using biomass as substitute for the imported and expensive petroleum feedstock.

The grim ground reality is that research & development efforts in such directions have not been adequate so far in the country. While large and focussed efforts have been putforth in such areas for research & development and investment in the developed countries, Indian initiatives are far too adequate

Political leadership of the country that would take charge of the central government after the next parliamentary poll should seriously think and deliberate on this line. It would be the only way and sure way of putting Indian chemical industry on the growth path in sustainable manner.

SPOTLIGHT ON SPECIALITY CHEMICAL - POLYETHERAMINE

Polyetheramines are intermediate chemicals used in the production of plastics, polyurea coatings, adhesives and reaction injection moulding (RIM). They are also used as curing agents for epoxy resins, in additives that enhance the performance of fuels, concrete and pesticides

Polyetheramines improve the performance of epoxy systems that are used in industrial and decorative coatings and sports equipment such as tennis racquets and hockey sticks.

Following details are discussed in this article.

  • Product type
  • Demand driver
  • Process outline
  • Global producers
  • Indian Import
  • Sample of individual import
BIOACETIC ACID –TECHNOLOGY DEVELOPMENT EFFORTS

Acetic acid is used in various manufacturing industries for the production of film, bottles and fibers among other products. It is used in the production of chemicals such as acetic anhydride, mono chloro acetic acid, vinyl acetate, purified terephthalic acid, diketene derivatives etc.

In the conventional process, acetic acid is largely produced by methanol carbonylation, in which methanol and carbon monoxide react to produce acetic acid.

Following details are discussed in this article.

  • Bioacetic acid developed by Zeachem
  • Bioacetic acid developed by Wacker Chemie
  • Efforts of LanzaTech / Petronas
ORGANIC PEROXIDES – PRODUCT PROFILE

Organic peroxides and mixtures containing an organic peroxide are used as accelerators, activators, catalysts, cross linking agents, curing agents, hardeners, initiators and promoters.

Organic peroxides are available as solids (usually fine powders), liquids or pastes.

The main hazard related to organic peroxides are their fire and explosion hazards. Organic peroxides may also be toxic or corrosive.

Applications

Organic peroxides are used in the automotive, rubber, packaging and polymer industries, as well as in the construction and consumer product sectors.

Organic peroxides are used to cure resins by enabling synthesis of reactive monomer chains linking unsaturated sites of the polyester.This process provides the desired mechanical properties to achieve the form and appearance of the final product.

Organic peroxides are used as polymerization initiators in the thermoplastic industry.

Methyl ethyl ketone peroxide (also known as 2-butanone peroxide), ethyl methyl ketone peroxide, or MEKP) are used as polymerization catalyst in the manufacture of polyester and acrylic resins and as hardening agent for fiberglass reinforced plastics.

Dicumyl peroxide is used as a cross linking agent for various polymers and copolymers

Following details are discussed in this article.

  • Global producers
  • Indian import
  • Methyl ethyl ketone peroxide
  • Dicumyl peroxide
COUNTER PRODUCTIVE MOVE TO DIVERT LAND FOR SALT CULTIVATION FOR INDUSTRIAL PARKS

It is surprising to note that the Salt Commissionerate of Government of India allotted 1,972 acres of land currently used for salt pans to various public sector companies in Tamil Nadu to put up industrial parks. It has allotted to NTPC (1000 acres), Ennore Port Ltd. (764 acres), HPCL (108 acres) and BPCL (100 acres).

Obviously, this move implies that the Government of India thinks that the salt industry is comparatively of less importance and it’s interests can be sacrificed. This is a counter productive decision with grave implications for the development of salt industry in Tamil Nadu.

India is 3rd largest producer of salt in the world after USA and China with the annual production of around 22.1 million tonnes. Tamil Nadu has around 12 percent of share of the Indian production with Gujarat and Rajasthan contributing to large part of the country’s needs and export market.

The above subject is further discussed in this article.

GLOBAL TRENDS IN CRUDE OIL PRODUCTION AND PRICE BEHAVIOUR

Oil stocks in industrialised countries are at their lowest for five years.

The recent monthly report from the International Energy Agency (IEA), a club of oil-consuming countries, have urged the producers to keep pumping crude oil to replenish them.

Following details are discussed in this article

  • Production of OPEC
  • Production in other regions in Middle East /Africa
  • Impact of US production in the global supply scenario
  • Policy options for OPEC
POWER POTENTIAL OF FUSION ENERGY

Fusion energy has the potential to become a radical alternative power source, with zero carbon emissions during operation and with minimal waste. But the technical difficulties in demonstrating fusion in the lab have so far proved overwhelming. While existing nuclear reactors generate energy by splitting atoms into lighter particles, fusion reactors combine light atomic nuclei into heavier particles.

Scientists have moved a step closer to achieving sustainable nuclear fusion and almost limitless clean energy. US researchers have achieved a world first in an ambitious experiment that aims to recreate the conditions at the heart of the sun and pave the way for nuclear fusion reactors.

Following details are discussed in this article

  • Complex process
  • Research efforts of NIF
  • Research efforts of ITER
  • Efforts in India
SHALE GAS PROJECTS IN UK- RECENT DEVELOPMENTS

UK prime minister, speaking at the 13th January launch of Total’s shale initiative, said that the United Kingdom wants to reap the same benefits from shale gas as North America.

The UK government is eager to encourage shale based industry, despite sporadic local and environmental opposition to fracking.

UK government has announced increased incentives to encourage the development of a shale-based industry. Local councils in the United Kingdom will be able to keep all of the local taxes raised from drilling activities plus 1% of the eventual revenues from the wells under the plan.

Total has acquired 40% interest in two shale gas exploration licenses in the United Kingdom, making the company the first energy company to enter shale gas licenses in the country. The interests are in Petroleum Exploration & Development licenses 139 and 140 in the Gainsborough Trough area of the East Midlands region, which covers an area of 240 sq kilometers.

The above subject is further discussed in this article.

RECENT DEVELOPMENTS IN ALGAE PROJECTS

Reliance Group

Reliance Industrial Investments, placed a $2.4M purchase order for Algae.Tec algae production technology, as a follow up to an initial investment of A$1.5M by Reliance, with additional investments of AU$1.2 million over the next 2 years.

The purchase order for Algae.Tec modules will be supplied and completed over approximately the next nine months. The Algae.Tec solution is less than one tenth the land footprint of pond growth options, while its enclosed module system is designed to deliver the highest yield of algae per hectare and solves the problem of food-producing land being turned over for biofuel production.

Overall, it is Reliance’s third algae investment. A Credit Suisse report on the company, revealed last year that Reliance has invested a total of $116 million (Rs.6.2 billion). $93.5 million (Rs5.0 billion) in Algenol and 22.5 million (Rs.1.2 billion) in Aurora Algae.

Following details are discussed in this article.

  • Sapphire Energy / Phillips 66
  • Synthetic Genomics / ExxonMobil
  • Commercial production of Renewable Algal Oils at lowa facilities
SHALE GAS INDUSTRY IN USA AT THE CROSS ROADS

The path toward U.S. energy independence, made possible by a boom in shale oil, will be much harder than it seems.

Drillers are pushing to maintain the pace of the unprecedented 39 percent gain in U.S. oil production since the end of 2011. Yet achieving U.S. energy self sufficiency depends on easy credit and oil prices high enough to cover well costs. Even with crude above $100 a barrel, shale producers are spending money faster than they make it.

The US oil industry must spend simply to stay in place. US drillers are expected to spend more than $2.8 trillion by 2035 even though production will peak a decade earlier, the IEA said. The Middle East will spend less than a third of that for three times more crude.

Independent producers in USA will spend $1.50 drilling this year for every dollar they get back. Shale output drops faster than production from conventional methods. It will take 2,500 new wells a year just to sustain output of 1 million barrels a day in North Dakota's Bakken shale, according to the Paris-based International Energy Agency.

The above subject is further discussed in this article.

SHALE GAS INDUSTRY IN USA AT THE CROSS ROADS

The path toward U.S. energy independence, made possible by a boom in shale oil, will be much harder than it seems.

Drillers are pushing to maintain the pace of the unprecedented 39 percent gain in U.S. oil production since the end of 2011. Yet achieving U.S. energy self sufficiency depends on easy credit and oil prices high enough to cover well costs. Even with crude above $100 a barrel, shale producers are spending money faster than they make it.

The US oil industry must spend simply to stay in place. US drillers are expected to spend more than $2.8 trillion by 2035 even though production will peak a decade earlier, the IEA said. The Middle East will spend less than a third of that for three times more crude.

Independent producers in USA will spend $1.50 drilling this year for every dollar they get back. Shale output drops faster than production from conventional methods. It will take 2,500 new wells a year just to sustain output of 1 million barrels a day in North Dakota's Bakken shale, according to the Paris-based International Energy Agency.

The above subject is further discussed in this article.

SHALE GAS INDUSTRY IN USA AT THE CROSS ROADS

The path toward U.S. energy independence, made possible by a boom in shale oil, will be much harder than it seems.

Drillers are pushing to maintain the pace of the unprecedented 39 percent gain in U.S. oil production since the end of 2011. Yet achieving U.S. energy self sufficiency depends on easy credit and oil prices high enough to cover well costs. Even with crude above $100 a barrel, shale producers are spending money faster than they make it.

The US oil industry must spend simply to stay in place. US drillers are expected to spend more than $2.8 trillion by 2035 even though production will peak a decade earlier, the IEA said. The Middle East will spend less than a third of that for three times more crude.

Independent producers in USA will spend $1.50 drilling this year for every dollar they get back. Shale output drops faster than production from conventional methods. It will take 2,500 new wells a year just to sustain output of 1 million barrels a day in North Dakota's Bakken shale, according to the Paris-based International Energy Agency.

The above subject is further discussed in this article.

OTHER FEATURES

PLANT CLOSURES

The following articles discuss about the closure of plants

  • Pellet units facing closure in odisha
  • Cellulosic fuel producer KiOR halts Plant
  • Koppers closes distillation facility
  • Shell shuts key Nigeria pipeline

ANTI DUMPING PAGE

The antidumping measures introduced in the last few weeks on the following products are discussed

  • EU slaps solar duties
  • China slaps antidumping duties on polysilicon from South Korea, US

NEWS ROUND UP - INTERNATIONAL

The recent developments on the following products/events are discussed

  • Bioinsecticide - Grandevo
  • Formic acid
  • Cementitious powder products
  • Methanol projects in USA
  • Acrylic acid
  • Methacrylates
  • Urea plant in Mexico
  • Proppants facility in Louisiana
  • Phenol unit in Blue Island ,USA

CHINA NEWS

The recent developments on the following products are discussed

  • Rare earth projects in China
  • Coal to olefins JV in China

TECHNOLOGY DEVELOPMENTS

USE OF CRUDE OIL DIRECTLY AS FEED STOCK FOR CHEMICALS

ExxonMobil Chemical says that its recently started ethylene plant in Singapore can crack crude oil as feedstock, eliminating the refining steps needed to produce naphtha. ExxonMobil opened its expanded Singapore chemical complex on 8 January,2014.

ExxonMobil Chemical can process range of feedstocks from light gases to heavy liquids. ExxonMobil says that the Singapore unit is the first steam cracker that can use crude as feedstock.

The above subject is further discussed in this article.

The recent technology developments on the following products are discussed

  • Biobased Durabio (Engineering plastic)
  • Plastics to oil technologies
  • Methane to ethylene demonstration plant
  • Shopping bags make fine fuel, says scientist
  • Bio digester technology for toilets
  • High altitude waste disposal technology

NEWS ROUND UP – INDIA

The recent developments on the following products/events are discussed

  • Ammonium nitrate
  • Procurement of ethanol for blending
  • Regulation for manufacturers of Ayurveda, Siddha and Unani Drugs

AGRO CHEMICAL PAGE

VALUE ADDITION IN PALM OIL INDUSTRY

Asian palm oil companies are moving further down the value chain into specialty derivatives.

Indonesian and Malaysian palm plantations expanded rapidly to support the growing biodiesel market, driving a second wave of capacity investment in the region beginning in 2008.

Southeast Asia is the fourth nlargest consumer of detergent alcohols, but it has become the biggest producer by leveraging plentiful fatty acid feedstocks from palm oils. Southeast Asia produced 30% of the world’s supply in 2012, almost three times its own requirements, while every other region fell shorter, with Western Europe at 25%, North America at 20%, and China at 11%.

Following details are discussed in this article.

  • Detergent alcohol
  • Oleo derivatives
  • Projects in Europe

HERBICIDE TOLERANT TRAIT TO SUBSTITUTE GLYPHOSATE

USDA’s Animal and Plant Health Inspection Service (Aphis) says that, based on preliminary findings, three genetically modified seeds developed by Dow Chemical “do not pose a plant pest risk to agricultural crops or other plants in the United States,” moving the potential blockbuster technology closer to approval.

The herbicide-tolerance trait is part of the Enlist weed management product line.

Dow expects it to yield half a billion dollars in annual sales at maturity and challenge the nearly 20-year market dominance held by Monsanto’s Roundup Ready glyphosate-tolerance technology. The product is needed in the marketplace because of an increase in glyphosate-resistant weeds.

Following details are discussed in this article

  • Increasing fertiliser subsidy in India
  • Surging fertilizer subsidy

PHARMA PAGE

Following details is dicussed in this article.

  • Breakthrough in malaria research claimed

ENERGY PAGE

PLAN FOR WORLD’S LARGEST POWER GENERATING LAGOON IN UK

The first stage of a £12-billion scheme to build a series of tidal energy plants in Britain started. as a planning application is submitted for the world’s largest power generating lagoon in south Wales.

The promoters want to follow up an initial £850m project for Swansea Bay with four even larger lagoons with capacity of 7,300MW — enough to meet 10 per cent of Britain’s electricity needs.

Tidal Lagoon Power has put in a development consent order under the Planning Act 2008, but must persuade the government to provide subsidies of £156 per MW/h — even more than that going to offshore wind farms.

The project must also overcome scepticism about tidal power following the collapse of the much larger Severn Barrage power generator in the same region.

The above subject is further discussed in this article.

Following details are dicussed in this article.

  • Government of India deallocates 10 captive coal blocks
  • The largest solar thermal unit in the world
  • Progress of phase-II of National Solar Mission
  • Slowdown in power sector
  • 1000 MW solar park in Andhra Pradesh

PRICE DETAILS

NATURAL GAS PRICE

Natural gas prices are a function of production sharing contract (PSC) norms that have legal sanctity and demand-supply dynamics. Cost of production of gas varies from country to country.

The various types of gas resources available in India including onshore,offshore shallow, offshore deep and offshore ultra deep have distinct commercial thresholds.

Niko Resources sells gas from its onshore fields in Bangladesh at $2.34 per million metric British thermal units (mmBtu).

The gas from Bangladesh available at $2.34 per mmBtu is produced from onshore fields west of Dhaka that have a significantly lower cost of production compared with deepwater blocks like the KG-D6 fields (where Reliance Industries and Niko are partners).

The above subject is further discussed in this article.

Following details are discussed in this article

  • Price fixing for S-PVC fines
  • Asia ethylene price
  • Potash price
  • Methanol
  • Revision of coal price In india
OTHER ARTICLES
  • Ex factory price of chemicals in China in Januray 2014
  • Tenders
  • Chemicals imported at Tuticorin port during month of December 2013
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