OLEOCHEMICALS
7
Oils & Fats Conference – London, England
Moving downstream There is a wide range of choices for palm oil operators wishing to move downstream into oleochemical derivatives. What are the most promising products, their applications and the production processes involved? Thomas Blocher The move downstream from basic oleochemicals (oils, fatty acids and glycerine) to derivatives can seem quite alluring. It seems as if almost everyone is doing it these days, either through acquisitions or internal development. Moving into derivatives can lead to new customers, the capturing of additional revenue from existing customers and higher utilisation of raw materials. However, as with any important decision, especially one that impacts on a company’s strategic focus, the 20 OFI – MARCH/APRIL 2020
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ramifications of the decision should be thoroughly investigated to avoid, or properly plan for, possible risks.
Myriad choices
There are myriad choices when it comes to oleochemical derivatives and deciding which to produce can be challenging. An obvious first step might be to move into downstream commodities such as detergent alcohols – these technologies are usually well known and the transition to the new technology may not be such a big leap. The market size is easier to estimate and supply chains can be a little more transparent. But what will your competitive advantage be that will lead customers to buy from you? Higher product quality, lower costs (perhaps due to a more advanced technology) or perhaps superior technical service? Perhaps you can fill demand by being the only manufacturer in your country or region. Moving into specialities is also an option. These include pharmaceutical actives and speciality ingredients for cosmetics, among others. The sales of specialities often yield higher margins.
But while specialities can command higher prices, they can often require a higher level of technology, application experience, safety requirements and new raw materials. Commodities and specialities both have their advantages and disadvantages and moving downstream at all carries risks. With this in mind, Buss ChemTech has developed a simplified road map of oleochemical derivatives including some of the products that can be made from palm fatty acids and their related technologies (see diagram above).
Ethoxylates
Ethoxylates are non-ionic surfactants with applications in numerous markets including personal care, biotechnology, pharmaceuticals, oil-well, food, agriculture, textiles and coatings. They can be used as detergents (in laundry and surface cleaners); emulsifiers (in emulsions, creams and ointments); wetting agents (for adhesives, paints and coatings and electroplating processes); dispersants (for pigments and crop protection and other biocides); stabilisers u (emulsion polymers) and as corrosion
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18/03/2020 14:54:09
