Chemicals Business Area of Evonik and Sibur Review New Plant Options

A JV feasibility study is underway regarding the construction of a chemicals plant for propylene oxide and hydrogen peroxide in the Russian Federation.

Essen, Germany-based Evonik Industries AG, a global leader in specialty chemicals, and the Russian JSC Sibur Holding, based in Moscow, have agreed to start an exclusive feasibility study regarding the possible construction of a facility to produce propylene oxide (PO), together with hydrogen peroxide, for use in the Russian Federation. The study is to be completed in the coming months and will determine possible locations and capacities.

Sibur is considering the construction of a PO plant that uses the new HPPO process, which produces propylene oxide from hydrogen peroxide (H2O2) and propylene in a low-cost and ecologically sound manner. Evonik and the engineering company Uhde, Dortmund, Germany, jointly developed this HPPO process and are now licensing it to other companies that manufacture chemicals.

Dmitry Konov, President of Sibur, commented: “Possible partnership with Evonik will allow to serve the quickly expanding market for propylene oxide in Russia with this innovative process.” Propylene oxide is a precursor material for polyurethane, which is used, for example, in cushioning and instrument panels for cars. Dr. Klaus Engel, Member of Evonik’s Executive Board and responsible for the Chemicals Business Area, explained: “We want to expand our presence with hydrogen peroxide in the region of Eastern Europe. With Sibur, we are co-operating with a reliable and experienced partner who is intimately familiar with this high-growth region.”

Evonik is the only company that can provide the process technology for the HPPO process to produce propylene oxide, the necessary special catalyst, and the raw material, hydrogen peroxide, from a single source. If it receives approval Evonik and Sibur will review the establishment of a joint venture for the production of hydrogen peroxide with Evonik’s own technology to supply a potential HPPO plant with the hydrogen peroxide. The H2O2 plant, to be constructed at the same location as the HPPO plant in the Russian Federation, would supply the planned PO production of Sibur with hydrogen peroxide. Furthermore, the estimated capacity is to be sufficiently large that the joint venture would supply the growing chemicals market in the Russian Federation and the Commonwealth of Independent States (CIS) with H2O2 for conventional applications, primarily in paper and pulp bleaching processes.

In mid-January, Evonik had started the operation of a significantly expanded hydrogen peroxide facility in Ulsan, Korea, in conjunction with its American joint venture partner, Headwaters of South Jordan, Utah. This facility will supply the Korean H2O2 market, while providing the Korean company SKC in Seoul with hydrogen peroxide, directly “over the fence” from the Ulsan site. In the coming months, SKC will begin operating one of the first global facilities for producing propylene oxide to use the new HPPO process under license from Evonik and Uhde.

Information on Sibur
SIBUR is the largest vertically-integrated petrochemical group in Russia. It incorporates 34 enterprises processing most of Russia’s hydrocarbon feedstock in an integrated production chain, from primary processing to manufacture of consumer products. The sole executive powers are exercised by management company SIBUR LLC. In 2006 earnings of the company comprised 121.9 billion roubles and a net profit was 21.4 billion roubles.

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