Description

The last several years have seen some dramatic changes in the global 1,4-butanediol (BDO) industry brought about by the introduction of new world-scale capacity based on technology employing n-butane/maleic anhydride (MAN) as feedstock. The traditional barrier to entry for the BDO business, the ability to safely handle acetylene, has been successfully hurdled. Not unexpectedly, due to the historic relatively high margins typically enjoyed by producers of BDO and derivatives, there has been a rush of new capacity by both new producers and by existing producers striving to maintain their market share. As can be seen, several companies have developed various versions of butane based BDO, THF and derivative processes. While these processes have their own unique modes of operation, each goes through maleic anhydride or a derivative of maleic anhydride as an intermediate on the way to BDO, THF, GBL or NMP. The distinguishing features among these new processes lie in: The methodologies to make maleic anhydride or its derivatives The ability to achieve high selectivities to the desired product or products, be it BDO, THF, GBL or combinations thereof The ability to have process flexibility to switch end products to match market demands The ability to do all these things in as few steps as possible to minimize capital expense. The figure below lays out the historical and future global capacity build-up for BDO by technology. All regions are likely to see significant capacity increases. Most, but not all, new plants are going to be based mainly on butane/MAN. It is particularly interesting that BASF will be operating three different technologies for BDO/THF. This emphasizes the important point that, depending on a company's particular situation, no one technology is necessarily superior. BASF is expanding its Reppe based plant in the U.S., has licensed the butadiene based process from Mitsubishi for a new plant in Korea, and has licensed butane-based technology for a new plant in Malaysia. This new report examines the technology, economics and markets for the global BDO/THF business.