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New TECH Report - Linear Alpha Olefins (2024 Program)
Linear Alpha Olefins is one in a series of reports published as part of NexantECA’s 2024 Technoeconomics – Energy & Chemicals (TECH) program.
Overview
Linear alpha olefins (LAOs) are linear hydrocarbons with a single double-bond between the first and second carbon. They are used in a wide range of applications including polyolefin comonomers, synthetic lubricants, and detergent intermediates. The main driver for global demand is the polyolefins industry. Full-range processes make LAOs ranging from C4 to C30+, while on-purpose technologies focus on a single alpha olefin, mainly C4 through C8, which are used as comonomers for the production of polyethylene.
This TECH report provides an updated overview of the technological, economic, and market aspects for LAOs. The following issues are addressed in this report:
- What are the major technologies for LAOs and how do they differ? Who are the major technology holders and licensors?
- What are the recent technology developments for LAO production?
- How do the process economics compare across processes and geographic regions?
- How does carbon intensity change for the different technologies explored for LAO production?
Commercial Technologies
Full-range technologies are based on ethylene oligomerization, which produces a wide distribution of products, ranging from butene-1 (C4) to triacontene (C30) and beyond. In general, the major technology holders are the major producers, and most do not license their technology. Due to the number of products made and the differing applications for each, downstream integration is important for a full-range producer. Technologies developed by Chevron Phillips, INEOS, ExxonMobil among others are explored.
Development of on-purpose technologies (including extraction from byproduct streams) has been driven by higher demand for short-chain LAOs, mainly for polyethylene production. Butene-1 is produced via extraction from mixed C4 streams and ethylene dimerization; hexene-1 via ethylene trimerization and extraction from Fischer Tropsch syngas; octene-1 via extraction from Fischer Tropsch syngas, butadiene
telomerization, and ethylene tetramerization; and decene-1 via a bio-based metathesis process. Technologies developed by Axens, Lummus Technology, Chevron Phillips and Sasol, among others, are explored.
Process Economics
Detailed cost of production estimates for various technologies are presented for different locations, including USGC, Western Europe, Middle East, China, Japan, and South Africa. Estimates are developed for full-range technologies, as well as on-purpose butene-1, hexene-1, and octene-1 technologies, based on ethylene and other feedstocks.
Commercial Overview
Butene-1 is the largest fraction, accounting for 42 percent of demand. The largest end-use for LAOs is for the production of LLDPE, which accounts for over half of global demand, with total polyethylene comonomer demand accounting for over 60 percent of LAO consumption. A breakdown of capacity by producer for butene-1, hexene-1, octene-1, and HAO (decene-1 and higher) on a global and regional (North America, Western Europe, Asia Pacific and Rest of the World) basis is provided in this TECH report.
Contact a member to our Insights & Analytics team to find out more about this report
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