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New TECH Report - Detergent Alcohols (2024 Program)
Detergent Alcohols is one in a series of reports published as part of NexantECA’s 2024Technoeconomics – Energy & Chemicals (TECH) program.
Overview
Detergent alcohols are long-chain alcohols containing between 12 and 18 carbon atoms produced commercially from both synthetic (mainly olefins) and natural feedstocks (primarily palm kernel oil). Detergent alcohols are typically processed further into cleansing agents used in products such as washing machine liquid, industrial detergent and hair shampoo.
The objective of this TECH report is to address key questions such as:
- What are the major technologies used for detergent alcohol production, and how do they differ?
- What are the current and historical costs of both synthetic and fatty alcohol technologies?
- What is the carbon intensity of production in different regions and for different technologies?
Commercial Technologies
Synthetic alcohol production technology is held in-house by producers such as Shell, ExxonMobil, Sasol and BASF, and not offered through a license to other producers. In contrast, fatty alcohols technology is widely licensed by the two largest detergent alcohols technology licensors: JJ-Lurgi and JM DAVY™. JJ-Lurgi can offer a technology package for the entire production chain from oil/fats to detergent alcohols, whereas JM’s DAVY™ generally collaborates with Desmet, which provides the technology license for the upstream fatty acids production units.
Synthetic processes evaluated in this report include the Ziegler Alfol process, conventional oxo-process and the modified oxo-process. Various fatty alcohol technologies licensed by Air Liquide (JJ-Lurgi) and JM’s Davy are also evaluated. Feedstocks for synthetic processes include ethylene, paraffins and other olefins. Feedstocks for fatty alcohol processes include palm kernel oil, coconut oil, vegetable oils and tallow.
Process Economics
The process economics of the major synthetic and fatty alcohol processes are estimated and compared. Various configurations, such as the Air Liquide “LP3” process improvement, are also evaluated. Detergent alcohol plants produce large quantities of coproducts, and therefore, the value of these coproducts has a massive impact on overall process economics.
Before 2015, fatty alcohol processes were more competitive. This situation reversed following dropping crude oil prices in 2014/2015, whereafter synthetic processes have been favored, particularly in the USGC where increased shale gas production has led to competitive ethylene prices.
The fatty alcohol market was oversupplied until 2021, due to a spate of investment in capacity in 2013 in Southeast Asia and China. However, there have been closures of old uncompetitive plants in China and the market demand has been increasing steadily, leading to higher market prices and margins for producers
Historical Competitiveness of Synthetic and Fatty Alcohols Processes (USGC)
Commercial Overview
The most common fatty alcohols (C12-C14) are mainly used in detergents, lubricants, cosmetics, personal care and pharmaceutical products. Growth tends to follow GDP and demand is relatively resilient to economic cycles as regional consumers develop long term habits of using specific detergents such as dishwashing liquids or hair shampoo.
The quantity and type of surfactants used in detergents are also affected by a wider range of factors and trends,. Formulators frequently change the composition of detergent formulations, particularly for manufacturers such as P&G and Unilever, which invest heavily in R&D to differentiate their products from generics
Contact a member to our Insights & Analytics team to find out more about this report
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