Article on Bio-Based Chemicals

1. Article on Bio-based Chemicals

Bio-based chemical is made from the substances which are extracted from biological entity. It is made from oils and fats, lignin, sugar and proteins. Petrochemical products are obtained from bio-based materials. Different types of petrochemical products are polymers, rubber, plastics. The major constituents of petrochemical industry include raw materials or hydrocarbon feed stocks, intermediate building block synthesis, functional chemical synthesis, value addition and processing and final consumer products.

The first stage is extracting raw materials. It plays a vital role in the entire value chain. Natural gas and crude oils are the primary and basic raw materials in the production of petrochemicals. Natural gas is mixture of some non-hydrocarbon components accompanied by hydrocarbon (light). The raw material is derived from these refinery many product manufacturer have agreement and partnership with these refiners. Further few big companies have their own refiners to procure their raw material essential for producing these chemical.

The product manufacturer attains second stage in this intermediate building block synthesis. It happens through two processes such cracking (cracking through steam, cracking through catalyst for olefins pyrolysis) and partial oxidation and steam reforming. These processes are performed by the petrochemical companies. The third stage of value chain in polymer market is functional chemical synthesis. It is obtained through OXO process to produce oxo alcohol

• Alkylation is used to produce linear alkyl benzene
• Polymerisation process is used to produce polymer, synthetic fibre, elastomers
• For aromatic compound production used aromatic conversion process

After performing these process bio-based chemical is further distributed to end-user industries by various intermediaries. These intermediaries are distribution network owned by these companies, third party distribution channel and supplier. Few companies have their own sales representative through which it sell directly to their clients. The end-user industries use bio–based chemical to implement in final product manufacturing process such as for producing toys, adhesive, disposable cups, plastic bags etc.

The two key operating companies are:

BASF

Overview

BASF SE is German company. It was founded in 1865, one of the highest chemical production company all over in world. BASF SE is a chemical company. It operates by five different segments, such as chemicals, functional materials and solutions, performance products, oil & gas and agricultural solutions. Its chemicals division comprises of the, monomers, intermediates divisions and petrochemicals. Through the performance products it consists of care chemicals, the dispersions and pigments, nutrition & health, and performance chemicals divisions. By functional materials and solutions consists of the construction chemicals, catalysts, coatings and performance materials divisions. The Agricultural solutions segment comprises of the crop protection division. The oil & gas division consist of oil & gas division, which focuses on the exploration and production in oil and gas producing regions in, North Africa, Europe Russia, the Middle East and South America.

Financial Data

BASF SE has accounted to be USD 67.9 billion revenue for the year 2016. The sales revenue is obtained from company’s annual report.

Products

The company is a leading producer in this industry, it manufactures engineering plastics, foams, urethanes, polyurethanes, styrenics, biodegradable plastics, polyamides, intermediates.

SWOT

Dow Chemical

Overview

The company supplies and manufactures products which are used as raw materials across the globe. It is located in midland, Michigan. The company functions through a subsidiary of DowDuPont Inc. It has a collaboration agreement with 1QB information technologies to grow quantum computing tools for the chemicals and materials science technology spaces.