BASF/Dow/Solvay HPPO Plant, Belgium

During October 2006, German-based BASF, along with US company Dow and Belgium's Solvay, broke ground for a plant producing propylene oxide (PO) by a new, direct process.

The PO will be produced at the world's first commercial-scale hydrogen peroxide to propylene oxide (HPPO) plant. The plant is being built at BASF's site in Antwerp, Belgium, and is scheduled to become operational in early 2008.

PO is used to produce a wide range of raw materials such as polyurethane, propylene glycol and glycol ethers, which are used in many industrial and commercial products.

HYDROGEN PEROXIDE PRODUCTION

During February 2006 Solvay and BASF established a joint venture to construct a 230,000tpa hydrogen peroxide plant at BASF's Antwerp, Belgium site. The facility will be based on Solvay's high-productivity hydrogen peroxide technology. A partnership was subsequently set up by this joint venture and Dow for financing the plant. It is said that when complete the plant will be the largest single hydrogen peroxide plant in the world.

PROPYLENE OXIDE (PO) PRODUCTION

In February 2006 Dow and BASF signed a manufacturing joint venture agreement to build and operate a 300,000tpa PO production facility using their jointly developed HPPO process technology. Both companies have equal rights to the technology and will receive half of the capacity from the new plant.

HPPO PROCESS TECHNOLOGY

PO plants based on the HPPO process are said to be more economical as they require 25% less capital to build. The process produces only water and PO, without the other products associated with the traditional processes. Raw materials required for the process are simpler. In addition, the process is said to be more environmentally friendly.

CONSTRUCTION OF HYDROGEN PEROXIDE PLANT

During April 2006 Finland-based Poyry announced that it had been awarded a contract to supply project management, engineering, procurement and site services for the hydrogen peroxide plant. The value of the contract, awarded by Solvay, was not disclosed.

HYDROGEN CAPACITY

Air Liquide is to build a hydrogen production facility at BASF's site in Antwerp, Belgium. The hydrogen plant will provide the extra capacity BASF and Solvay will need for the 230,000tpa hydrogen peroxide plant.

PLATE HEAT EXCHANGERS

During March 2006 Alfa Laval, a Sweden-based global provider of specialised products and engineering solutions, announced that it was to supply plate heat exchangers to BASF and Dow's joint venture propylene oxide plant. The contract was valued at SEK45m and delivery will take place during 2007. Plate heat exchangers form part of the plant's central cooling system.

BACKGROUND

During 2003 Dow and BASF began a joint research programme to develop and commercialise an HPPO process. Dow and BASF are considering the development of additional HPPO projects in other regions including Asia.