GLG News by Council Members Knowledgeable about Oleochemicals

Henkel  bought the adhesives and sealants(A&S) business of National Starch and Chemical (from Akzo Nobel) This € 3.7 billion ($5.8 billion) strengthens Henkel’s position in the Asia/Pacific and Eastern European A&S  markets.

The Global agrichemical market is booming because of increased demand from emerging countries and rising biofuel demand. Producers are increasing their earnings forecasts and making investments in capacity expansion.

·Worldwide methanol consumption, 40.34 million m.t. in 2007, is projected to grow ~11% to 44.7 million m.t. by the end of 2008 (according to studies released by PCI- Octerbloom & Co : Methanol and derivatives Global Outlook 2000-2012 and “Methanol Executive ·Overview and Handbook”) The...

·UCLA researchers have engineered (genetically) e.coli to produce high-octane biofuels ·This represents the first viable process to produce isobutanol (and other branched-chain higher alcohols from sugar.

·Elevance Renewable Sciences has been formed by collaboration between Cargill and Materia (a catalyst technology company) to produce bio-based specialty chemicals. ·The company expects to generate over $1 billion/year by 2016 and will “aggressively grow” in the $500 billion specialty chemicals...

·Coskata (a renewable resource technology company) has developed a proprietary process that uses renewable resources (such as household garbage, plant waste, and used tires) to produce ethanol. ·Commercially available ethanol, from the new process, should be available by 2011.

Apollo, assuming its acquisition of Huntsman goes through, plans to sell two of  Huntsman’s businesses. Likely to go are Tioxide (a titanium dioxide business) and two units of Huntsman’s performance products.group. The deal is being carefully scrutinized by the FTC which is likely to require divestment...

Dow will invest over $6.4 million in grants to Cardiff University (Cardiff, UK) and Northwetern University (Evanston, Il) to develop methane based chemical intermediates. Dow hopes to have a commercially usable methane-conversion process in ~10 years.

 .Rising gasoline prices, threats to energy security, and pressure to reduce greenhouse gas (GHG) emissions have focused attention on biofuels.  .Two new studies point out problems in the attempt to achieve sustainability

2007 fourth quarter US specialty chemical earnings were mixed. Sectors dependent on automotive and housing/construction markets declined.