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Investing in a new route to DPC - Shell Chemicals Magazine Winter ...

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6 <strong>Shell</strong> <strong>Chemicals</strong> Magaz<strong>in</strong>e W<strong>in</strong>ter/Spr<strong>in</strong>g 2012 DIPHENYL CARBONATEPlans for S<strong>in</strong>gapore demonstration unit <strong>to</strong> produce polycarbonate <strong>in</strong>termediateINVESTING INA NEW ROUTETO <strong>DPC</strong>Paul Hampson, S<strong>in</strong>gapore Venture Manager,who will oversee the <strong>DPC</strong> <strong>in</strong>vestment project.


<strong>Shell</strong> <strong>Chemicals</strong> Magaz<strong>in</strong>e W<strong>in</strong>ter/Spr<strong>in</strong>g 2012 7<strong>Shell</strong> has announced its <strong>in</strong>tention <strong>to</strong> <strong>in</strong>vest <strong>in</strong> the construction of a demonstrationunit <strong>to</strong> manufacture diphenyl carbonate (<strong>DPC</strong>), a key chemical <strong>in</strong>termediate used<strong>in</strong> polycarbonate production. Proprietary process technology developed by <strong>Shell</strong>offers a <strong>new</strong> <strong>route</strong> <strong>to</strong> <strong>DPC</strong> that is expected <strong>to</strong> have significant advantages <strong>in</strong>terms of its cost, safety and CO2 footpr<strong>in</strong>t.Polycarbonate is a versatile and fast grow<strong>in</strong>geng<strong>in</strong>eer<strong>in</strong>g plastic, used <strong>in</strong> a wide variety ofapplications from optical media and householdgoods <strong>to</strong> car parts and glaz<strong>in</strong>g. Demand forpolycarbonate comes ma<strong>in</strong>ly from the largeconstruction, electronics and au<strong>to</strong>motive sec<strong>to</strong>rs,and particularly by the rapid expansion of these<strong>in</strong>dustries <strong>in</strong> Ch<strong>in</strong>a.Healthy demand growth predicted forpolycarbonate has prompted major producers<strong>to</strong> look more closely at the efficiency andsusta<strong>in</strong>ability of their manufactur<strong>in</strong>g supply cha<strong>in</strong>s.Traditionally, polycarbonate has been madewith phosgene, a highly hazardous material thatrequires str<strong>in</strong>gent safety controls and carefulhandl<strong>in</strong>g procedures. The use of phosgeneadds cost and complexity <strong>to</strong> the manufactur<strong>in</strong>gprocess and raises questions over the long termsusta<strong>in</strong>ability of this form of production.The <strong>new</strong> <strong>DPC</strong> process also has potential <strong>to</strong> The reaction conditions <strong>in</strong>volved are mild,provide <strong>Shell</strong> with a susta<strong>in</strong>able platform as while efficient catalysts developed for the processa key supplier of polycarbonate <strong>in</strong>termediates. can achieve 99% selectivity, which translates<strong>Shell</strong>’s process has a number of <strong>in</strong>novative <strong>in</strong><strong>to</strong> high product yields.approaches <strong>in</strong> terms of both the process design The <strong>DPC</strong> technology is a good fit for <strong>Shell</strong>’sand catalysis, and has been piloted at itsportfolio and <strong>in</strong>termediates supply strategy.Technology Centres <strong>in</strong> Hous<strong>to</strong>n and Amsterdam. “The beauty of this chemistry for us is that all theIt is based on a multi-stage reaction <strong>in</strong>volv<strong>in</strong>g raw materials, as well as the co-products, arecarbon dioxide, phenol and either propylene already part of our core portfolio,” says Pauloxide or ethylene oxide, and produces <strong>DPC</strong> Hampson, S<strong>in</strong>gapore Venture Manager, who<strong>to</strong>gether with mono-propylene glycol (MPG) or will oversee the <strong>DPC</strong> <strong>in</strong>vestment project.mono-ethylene glycol (MEG) co-product.Figure 1: Polycarbonate capacity growth by process technology.ALTERNATIVE PROCESSTo address this, the <strong>in</strong>dustry has <strong>in</strong> recent yearsdeveloped a different process <strong>route</strong> that uses thechemical <strong>in</strong>termediate diphenyl carbonate (<strong>DPC</strong>)<strong>in</strong>stead of phosgene as one of the primarypolymer feeds<strong>to</strong>cks. All recent and planned <strong>new</strong>polycarbonate <strong>in</strong>vestments are based on this‘melt’ production method (see Figure 1).However, while these processes elim<strong>in</strong>atephosgene from the polymer stage, a significantnumber of producers still have <strong>to</strong> use phosgene<strong>in</strong> the <strong>in</strong>itial manufacture of <strong>DPC</strong>.Although not a producer of phosgene or<strong>DPC</strong> currently, <strong>Shell</strong> is a strategic supplier <strong>to</strong> thepolycarbonate <strong>in</strong>dustry. It is one of the world’slargest producers of phenol and ace<strong>to</strong>ne (seepage 20), the precursors for bisphenol A (BPA),the other ma<strong>in</strong> raw material used <strong>in</strong> ‘melt’polycarbonate production.Some of its process and catalyst technologiesare also closely related <strong>to</strong> <strong>DPC</strong>, and so <strong>Shell</strong>has been look<strong>in</strong>g at the issue of phosgene <strong>in</strong> thepolycarbonate supply cha<strong>in</strong> for more than 10years. As a result of this research, it has developeda <strong>new</strong> a phosgene-free <strong>route</strong> <strong>to</strong> <strong>DPC</strong> that isexpected <strong>to</strong> have significant advantages <strong>in</strong>terms of its cost, safety and CO2 footpr<strong>in</strong>t.ABOUT POLYCARBONATEPolycarbonate is a versatile eng<strong>in</strong>eer<strong>in</strong>g plastic that is used <strong>in</strong> a wide varietyof applications that make the most of its key properties of: impact strengthand <strong>to</strong>ughness; clarity; high mechanical strength; rigidity; and good <strong>in</strong>sulat<strong>in</strong>gcharacteristics. A major application is <strong>in</strong> electronics where cas<strong>in</strong>gs for manyelectronic devices are made of polycarbonate or mixtures of polycarbonateand other polymers such as ABS.Polycarbonate is also the material of choice for CDs and DVDs althoughthis application has begun <strong>to</strong> decl<strong>in</strong>e. Polycarbonate is also used <strong>in</strong> householditems from chairs <strong>to</strong> kitchen utensils. A major growth area is <strong>in</strong> au<strong>to</strong>motiveapplications where polycarbonate has already replaced traditional materials<strong>in</strong> components such as headlamps and is help<strong>in</strong>g <strong>to</strong> make cars lighter.


8 <strong>Shell</strong> <strong>Chemicals</strong> Magaz<strong>in</strong>e W<strong>in</strong>ter/Spr<strong>in</strong>g 2012 DIPHENYL CARBONATETechnical impression of the <strong>DPC</strong>demonstration unit <strong>to</strong> be constructedon Jurong Island <strong>in</strong> S<strong>in</strong>gapore.“WE ARE STRATEGICALLYWELL PLACED TO PROVIDETHIS KEY INTERMEDIATE FORPOLYCARBONATE PLAYERSAND THIS IS A LOGICAL PLACETO SPLIT THE SUPPLY CHAINPaul Hampson, S<strong>in</strong>gapore Venture Manager.““We are us<strong>in</strong>g <strong>in</strong>termediates readily available<strong>to</strong> us <strong>to</strong> make a product that is <strong>in</strong> high demandamong many of our exist<strong>in</strong>g phenol cus<strong>to</strong>mers.We believe we are strategically well placed<strong>to</strong> provide this key <strong>in</strong>termediate for the <strong>in</strong>dustryand that this is a logical place <strong>to</strong> split thepolycarbonate supply cha<strong>in</strong>.“It could also allow <strong>new</strong> players <strong>to</strong> enter thepolycarbonate <strong>in</strong>dustry without the complexityand challenges of manag<strong>in</strong>g phosgene orchlor<strong>in</strong>e used <strong>in</strong> traditional processes.”The efficiency of the catalyst, low energyconsumption and high throughput, plus the factthat it consumes carbon dioxide, are expected <strong>to</strong>make the process world-class <strong>in</strong> terms of cost andcarbon footpr<strong>in</strong>t. “In addition <strong>to</strong> the <strong>in</strong>tellectualproperty <strong>in</strong>volved <strong>in</strong> the <strong>in</strong>dividual elements of the<strong>DPC</strong> process, it is the clever and unique way ourscientists have been able <strong>to</strong> fit them <strong>to</strong>gether thatmakes this process so different,” says Hampson.As the f<strong>in</strong>al step <strong>in</strong> the commercialisation of the<strong>DPC</strong> process, <strong>Shell</strong> has committed <strong>to</strong> build ademonstration plant on Jurong Island, S<strong>in</strong>gapore.When complete this will be able <strong>to</strong> supplysemi-commercial scale quantities of <strong>DPC</strong> <strong>to</strong>selected cus<strong>to</strong>mers <strong>in</strong> the polycarbonate <strong>in</strong>dustryfor test<strong>in</strong>g and acceptance.“We need <strong>to</strong> establish a specification for <strong>DPC</strong>produced via this <strong>new</strong> <strong>route</strong>, which meets theneeds of the users,” says Hampson. If successful,he says <strong>Shell</strong> <strong>in</strong>tends <strong>to</strong> become a major supplierof <strong>DPC</strong> <strong>to</strong> the polycarbonate <strong>in</strong>dustry.SUPPORTING GROWTH PLANS“We are excited about tak<strong>in</strong>g this important step<strong>to</strong>wards commercialis<strong>in</strong>g <strong>DPC</strong> as a <strong>new</strong> productfor <strong>Shell</strong> and are work<strong>in</strong>g closely with partners <strong>in</strong>the polycarbonate <strong>in</strong>dustry <strong>to</strong> ensure that we meettheir needs,” says Ben van Beurden, ExecutiveVice President, <strong>Shell</strong> <strong>Chemicals</strong>.“All the growth <strong>in</strong> polycarbonate production is<strong>in</strong> Asia, and this and any future <strong>in</strong>vestment willput us <strong>in</strong> a strong position <strong>to</strong> support the growthplans of our partners.”<strong>DPC</strong> production will <strong>in</strong>tegrate neatly with <strong>Shell</strong>’sexist<strong>in</strong>g manufactur<strong>in</strong>g footpr<strong>in</strong>t <strong>in</strong> S<strong>in</strong>gapore,tak<strong>in</strong>g advantage of the huge front end capacityof <strong>Shell</strong>’s <strong>new</strong>est ethylene oxide/glycolsunit on Jurong Island.Sven Royall, Vice President Intermediates, says:“<strong>DPC</strong> is a natural extension <strong>to</strong> our manufactur<strong>in</strong>gportfolio and market<strong>in</strong>g of chemical build<strong>in</strong>gblocks <strong>to</strong> cus<strong>to</strong>mers worldwide.“We are <strong>in</strong> familiar terri<strong>to</strong>ry and so well placed<strong>to</strong> serve polycarbonate producers <strong>in</strong> the sameway as cus<strong>to</strong>mers of other bulk derivatives suchas styrene monomer and mono-ethylene glycol,particularly if they choose <strong>to</strong> co-locate.“We have also developed an <strong>in</strong>novativetransport solution (see box below) that will allowus <strong>to</strong> supply <strong>DPC</strong> <strong>to</strong> cus<strong>to</strong>mers wherever theychoose <strong>to</strong> <strong>in</strong>vest.”Detailed eng<strong>in</strong>eer<strong>in</strong>g work on the <strong>DPC</strong> unitis well underway and a site has been identifiedwith<strong>in</strong> <strong>Shell</strong>’s exist<strong>in</strong>g Seraya <strong>Chemicals</strong> complex.Expected startup is <strong>in</strong> 2013.For more <strong>in</strong>formation visit:www.shell.com/chemicals/dpcELEGANT SUPPLY C HAIN SOLUTIONIn addition <strong>to</strong> the process technology beh<strong>in</strong>d <strong>DPC</strong> <strong>Shell</strong> has also patenteda <strong>new</strong> and potentially elegant solution for supply<strong>in</strong>g this important<strong>in</strong>termediate <strong>to</strong> polycarbonate producers.<strong>DPC</strong> is a high melt<strong>in</strong>g po<strong>in</strong>t solid and its natural crystal flake state (left)would make it more costly and complex <strong>to</strong> transport. Keep<strong>in</strong>g it <strong>in</strong> liquidform makes logistics simpler and could have other supply cha<strong>in</strong> benefitsfor the cus<strong>to</strong>mer.<strong>Shell</strong>’s solution <strong>in</strong>volves dissolv<strong>in</strong>g <strong>DPC</strong> <strong>in</strong> ace<strong>to</strong>ne for easy bulk transport<strong>to</strong> the cus<strong>to</strong>mer’s premises. Once there, the ace<strong>to</strong>ne can be distilled off anddur<strong>in</strong>g process<strong>in</strong>g cus<strong>to</strong>mers can also recover the phenol component for use<strong>in</strong> BPA production. Us<strong>in</strong>g this approach, cus<strong>to</strong>mers can receive both theirnecessary raw materials for polycarbonate production <strong>in</strong> one shipment.

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