# OAR Box 1878

Prepped by Charmelle Mathews



# Document

Number: 

# 67 ) 11-1-4 6

Docket Number: 

# A-90-1 9

Printed 11/28/2008 11:47:27

AM 

### Sheet 67 of 68 p. 1

### P. 2 

# A-90-1 9

AUGUS T 198 8

- Pr.viou.IUpo* - Marc h 198 5 ETHYLEN E OXID E

FOCUS....Ethylen e oxid e (EO) , produce d b y th e direc t oxidatio no f ethylene , i s a majo r chemica l intermedi at e primaril y

use d captivel y

t o mak e othe r chemicals , particularl y ethylen e glycol . Man y derivative s o f E O ar e themselve s use d a s intermediates . Ethylen e oxid e i s a ra w materia l in th e ethoxylatio no f glycols , alcohols , fatt y

aci d condensatio nproducts , starches , surfac e activ e agents , an d ammonia . E O i s als o an excellen t fumigan t a s i t i s non-corrosiv e t o metal s an d doe s no t effec t sensitiv e materials . Othe r use s o f ethyleh e oxid e includ e sterilization , gasolin e sweetening , an d aci d stabilization . Al l E O end use s ar e essentiall y captiv e t o E O producer s excep t for the ethoxylates , wher e merchan t buyer s o f E O ar e significant . Nonioni c surfactant s derive d fro m E O hav e ha d increase d usag e i n liqui d detergents . Heav

y duty-liqui d detergent s for househol d lsundry us e hav e grow

nfro m abou t 15 % o f the tota l detergen t marke t i

n197 8 t o 40 % i n1988 . Ethoxylat e producer s hav e had difficult y in supplyin g increase d deman d cause d b

y the swin g t o liquid s whic hus e greate r quantitie s o f nonioni c surfactants * The merchan t marke t for E O for makin g ethoxylates ha s no t bee ngrowin g a s fas t a s the overal l marke t becaus e o f eco nomic s an

d limitations o

n suppl y

o f EO . Becaus e o f the potentia l hazard s o f shippin g bul k quantitie s o f EO , some producer s hav e reportedl y limite d shipment s t o area s immediatel y proximat e o

r withi n5 0 mile s o f th e productio npoint . Reportedly , a t leas t on e produce r ma y dro p ou t o f th e E O merchan t marke t i n 1989 . Merchan t sale s o f E O generall y

accoun t fo r les s tha n15 % o f U S demand . Sale s o f E O for ethoxylatio n end use s probabl y

accoun t fo

r approximatel y

70 % o f the tota l E O merchan t market . A critica l specifi c end us e for ethylen e oxid e in the merchan t marke t i s a s a sterilant/fumigan t i n th e healt hproduc t an d medica l fields . Ethylen e oxid e i s use d t o steriliz e foo d products , surgica l bandages , and othe r hea t sensitiv e material s and , a s such , ma y b e the onl y

efficien t an

d effectiv e sterilan t i n thes e sensitiv e applications . Thi s en d use , whic haccount s for les s tha n5 % o f th e E O merchan t market , i s potentiall y vulnerabl e becaus e o f th e growin g concer nabou t the possibl e toxicit y o f ethylen e oxid e a s wel l a s concern s abou t th e chloro fluorocarbo n(CFC ) propellan t use d wit hEO . E O doe s the sterilizin g an d CF C keep s i t nonflammable . Ther e i s pressur e t o regulat e CFC' s i nmedica l sterilization . A proces s t o recove r CFC-1 2 fro m the E O sterilan t use d i nthe medical-devic e an d spic e industrie s ha s bee nprove ncommerciall y feasible . Thi s reduce s CF C emissions , an

d eventuall y

convert s use d E O t o EG .
OUTtOOK....E O overall (worldwide ) deman d wil l gro w wit hdemand for EG , a t abou t 2-4 % pe r yea r int o th e 1990's. ' Futur e consumptio no f glyco l i n antifreez e i s expecte d t o b e stati c o r decline . Long-ter m U S annua l demand growt hfor ME G use d in polyeste r fiber s wil l probabl y moderat e t o abou t 2% . Futur e signifi can t growt hfo

r E G wil l b

e i nPE T plastics , particularl y in beverag e bottles . PE T plastic s increase d fro m les s tha n5 % o f E

G consumptio nbefor e 197 0 t o sbou t 25 % by 1988 . Wit hmatur e market s for use s othe r tha n PE T plastics , n

o significan t growt hca nb e expected . Th e glyco l ether s ar e unde r continua l pressur e fro m a healt ho

r environmenta l standpoin t an d ar e expecte d t o los e market s in solven t applications . The merchan t marke t for E O wil l chang e somewha t i nthe futur e i f some o f th e smalle r merchan t pro ducer s o f ethoxylste s for us e i ndetergent s los e marke t shar e t o integrate d producers . Smalle r companie s purchasin g E O ma y

no t b e abl e t o mee t mor e rigi d oxid e exposur e standards , and ma y giv e thi s busines s u p t o integrate d producer s wit hbette r handlin g capabilitie s an d economics . PRICING....Unti l the shortage s o f 1988/1989 , the lis t pric e fo r E O & E

G ha s bee nalmos t meaningless . AVERAG E PRIC E RANGE - ETHYLEN E OXID E Cent s Pe r Pound - Tank s - FO B - (Merchan t Market )
196 0 196 5 197 0 197 5 198 0 198 4 198 5 198 6 198 7 198 8 198 9 199 1 Trad e Lis t TS j 13] " 9 ~Vi\ ~39 T 3 5 3 5 3 5 3 5 6 0 6 0 4 0 Avg . Sale s 2 6 3 4 2 6 2 1 2 1 2 0

SUPPL YAM ) DEMAND....M i 1 1 ion s o f Poinds....Estimated....Domesti c U S

196 0 196 5 197 0 197 5 198 0 198 4 198 5 198 6 198 7 198 8 198 9 199 1 Capacit y

160 0 245 0 424 0 Productio n137 9 219 0 386 5 Mer . Sale s Import s Export s Deman d 514 0 568 6 539 1 540 5 477 7 515 4 5^0 0 540 0

Insom e recen t years , particularl y 198 7 an

d 1988 , productio no f E 0 a s reporte d b y the USIT C ma y

b e considerabl y

understate d base d onreporte d and estimate d dat a for outpu t o f E 0 derivatives . Trad e source s estimat e tota l U 5 E 0 productio ni nbot h198 7 an d 198 8 wa s probBbl y

in the rang e o f 6. 0 billio npound s instea d o f the 4. 8 an d 5. 1 billio nindicate d in the abov e tabl e base d o n USiT C data . AVAILABILITY....I nth e earl y 1980's , poo r profitabilit y and competitio nfo r derivativ e ethylen e glyco l fro m new plant s i

nCanada , Saud i Arabia , an d the Fa r Eas t force d U S E 0 producer s t o shu t dow ninefficien t o r exces s capacity . Idlin g Nort hAmerica nplants , couple d wit hcapacit y rationalizatio nin the U Kan d Wester nEurope , improve d th e supply/deman d balanc e unti l shortage s develope d in 1987-1988 . In th e U S i n 1988 , 0 1 inand Unio nCarbid e restarte d capacit y whic hha d bee no

n backup . I

n phases , Unio nCarbid e ma y ad d a s muc ha s 1. 2 billio npound s pe r yea r o f E 0 capacity . Th e firs t phas e wil l ad d 15 5 millio npound s b y the en d o f 198 9 throug hdebottleneckin o i nTexa s and Louisiana . Dow Chemica l Canad a ma

y als o increas e E0/EG . Expansion s ar e als o planne d overseas . I nSpain , Shel l Co.' s subsidiar y Industria s Quimica s Asociado s i s expandin g b

y 25 % t o 90,00 0 mt/year . In Venezuela , Oli nwit h25 % o f a join t ventur e i s developin g a 30,00 0 m

t E0/E Gcomple xt o come onstrea m in 1990 . In China , Techni p o f Franc e plan s t o complet e a 50,00 0 to npe r yea r E 0 an

d 40,00 0 to nE G facilit y for Chin a Nationa l Technica l Impor t Corp . 2/8 7 505 9 446 7 

### 40 9 638 5 522 0 

### 53 1 6 8 6 514 0 661 0

569 9 

### 51 2 1 2 2 5 568 6 581 5

543 0 

### 61 5 2 3 6 2 539 1 569 0

543 0 

### 56 8 3 2 8 540 5 643 0

478 5 

### 67 1 2 8 3 6 477 7 678 5 694 0

5140(E ) 32(E ) 

### 1 8 515 4 5^0 0

### «

a

a



### •PRODUCE R Unite d States : • SftS F Cai n Chemica l 

### Do w PRODUCER S AN D CAPACITIE S

LOCATIO N Geismar , L A Bayport , T X Plaquemine , L A Hoechs t Celanes e Clea r Lake , T X Oli n P D Glyco l Quantu m(US D Canada : 

### Do w Unio n Carbid e Brandenburg , K Y Beaumont , T

X Morris , I L

For t Sask. , Alta

. Montreal , Que

. - ETHYLEN E OXID E - MILLIONS O F

CAPACIT Y 

### 48 0 55 0 50 0 46 0 11 0 52 0 24 0

40 0 16 5 PRODUCE R

Shel l Su n Refinin g Texac o Texa s Eastma n Unio n Carbid e Unio n Carbid e POUND S - 198 B LOCATIO N Geismar , L A Claymont , D E Por t Neches , TX Lon g view , T X Seadrift , T X Taft , L A TOTA L UNITE D STATES :

Unio n Carbid e TOTA L CANADA : Prentiss , Alta

. CAPACIT Y 

### 80 0 10 0 84 5 21 0 67 0 130 0 678 5



### 41 5 98 0 P. 3

US I (no w QuBntutnChemical ) bough t Enro nChemica l i n1986 . I nmi d 198 8 Oli nrestarte d it s E O uni t whic hha d bee nshu t dow nsinc e 1986 . Texac o reportedl y restarte d a 14 5 millio npound uni t a t Por t Neche s inlat e 1988 . Cai nChemical , no w a divisio no f Occidenta l Chemica l Co. , purchase d the EO/E G busines s fro

m IC I America s i n1987 . P D Glyco l wa s a PPG/DuPon t 50/5 0 join t venture . In1987 , Cai n bough t PPG' s interest . Carbid e ha s restarte d abou t 65 0 millio npounds o f E O capacit y a t Taft , L A whic hwa s place d o nbacku p i n198 4 a s a productio nuni t starte d up i nAlberta . A fe w year s ago , Do w ende d productio no f E O a t Freeport , TX . I nadditio nt o Nort hAmerica nE0 , Do w ha s EO/E Gfacilitie s i nth e Netherlands . In1987 , SunRefinin g & Marketin g Co . bough t al l outstandin g shares o f join t ventur e Su nOli nChemica l fro m Olin . Drumme d E 0 i s sol d b y the AR C chemica l divisio no f Balde nCorp . EM ) USES....Ethylen e oxid e (E0 ) i s a highl y reactive , colorless , low-boilin g liqui d o r ga s wit hanether lik e odor . E 0 i s a

nimportan t chemica l intermediat e for the productio no f ethylen e glycols , ethanolamines , an d glyco l ethers , a s wel l e s a broa d rang e o f surfac e activ e agents . I t i s als o use d a s a sterilizin g agen t an

d fumigant . Les s tha nI S o f tota l U S E 0 i s consume d i nthe healt hproduct s an d medica l field . Th e larges t outle t for E 0 i s th e productio no f hydrate d derivative s — th e glycols . Monoethylen e glyco l (MEG ) account s for ove r 60 S o f E 0 consumptio nwit hdi- , tri- , an d polyethylen e glycol s takin g approximatel y 10S . Ethyoxylate d material s ar e use d a s surfactant s an d detergents . Mos t nonioni c surfactant s ar e mad e b y condensin g a hydrophob e and ethylen e oxid e an d the naddin g mor e E 0 molecule s t o giv e a water-solubl e product . Severa l kind s o f hydrophobe s ar e used , suc ha s fatt y alcohol s an

d acids , amines , an d amides . Ethanolamine s ar e use d for detergent s and ga s purification . Glyco l ether s hav e solven t applications . Excep t for ethoxylat e manufacture , chemica l intermediat e use s for E 0 ar e essentiall y captiv e and carrie d out b

y producer s o f oxide . Whil e E O producer s ar e majo r factor s inthe ethoxylat e business , ther e i s als o a substantia l bu t declinin g merchan t marke t for E 0 use d t o mak e ethoxylate s i nNort hAmerica . EN D US E PATTERN

- 198 8 ESTIMAT E

DERIVATIV E Monoethylen e Glyco l Highe r Glycol s Ethoxylate s PERCEN T 6 5 1 0 1 0 DERIVATIV E Ethanolamine s Glyco l Ether s Miscellaneou s PERCEN T 5 5 5 MANUFACTURING....Ethylen e oxid e (E0 ) i s produce d fro m ethylen e usin g eithe r ai r or oxyge na s the oxidizin g agent . Th e E 0 proces s currentl y practice d b

y al l majo r technologie s involve s the direc t vapo r phas e oxida tio no f ethylen e ove r a silve r catalyst . Carbo ndioxid e an d wate r ar e th e onl y significan t by-products . B y selectin g appropriat e operatin g conditions , moder nreactio nsystem s maintai nselectivitie s (mol s ethylen e oxid e forme d pe r 10 0 mol s ethylen e reacted ) inthe rang e o f 65 S t o 7555 for air-base d an d 70 S t o 80 S for oxygen-base d processes . Hig hreactio nefficiencie s ar e achieve d b y operatin g wit hlo

w ethylen e conversion s pe r pas s an

d a moderate d reaction . The recover y an d refinin g system s ar e the same for ai r an d oxygen . Ethylen e oxid e i s recovere d a s a crud e aqueou s solutio nwhic hca nbe sen t directl y to a glyco l plan t t o produc e specificatio nethylen e glyco l b y hydration , o

r fractionate d t o produc e pur e E0 . Excep t for smalle r plants o

r specia l ra

w materia l an

d cos t situations , mos t moder nplant s employ oxyge nrathe r tha nai r oxi dation . Oxyge nbase d plants ca nyiel d 1. 2 pounds o f E 0 pe r pound o f ethylen e feed . The origina l commercia l E 0 technology wa s the chlorohydrinproces s usin g stoichiometri c amount s o f chlorin e an

d a nalkali . Al l earl y E 0 manufacturer s wer e i nthe chlor-alkal i business . Whe ndirec t oxida tio nbecam e commercialized , some chlorohydri ncapacit y wa s converte d t o propylen e oxid e production . Do w currentl y

make s P 0 vi a chlorohydrin . Are o employ s a direc t oxidatio nrout e fo r P0 . A variet y

o f ne w proces s concept s fo r EO/E Gar e bein g develope d base d o nsuc hra

w material s a s synthe si s ga s and ethanol . Thes e coul d become feasibl e dependin g o nfutur e relativ e ethylen e values . ENVIRONMENTA L ASPECTS...,E 0 ga s i s highl y flammable . Prolonge d contac t causes ski nan d ey e irritatio nan d inhalatio no f hig hconcentration s ca ncaus e nausea , vomiting , lung edema , an d genera l anestheti c effects . I nadditio nt o short-term effects , investigation s inrecen t year s sugges t tha t E 0 may be a potentia l huma n mutage nor carcinoge nand may caus e leukemi a a t lo w airborn e vapo r concentrations . Th e majo r concer nabou t toxicit y o f E 0 center s o

nthe relativel y

mino r quantit y

consumed a s a steril an t i nhealt hcar e an d medica l products . I nsterilizatio napplications , E 0 concentration s nea r malfunc tionin g an

d poorl y

designe d equipmen t ma y reac hexcessiv e transitor y levels . O

nth e othe r hand , ther e i s onl y limite d concer nabou t exposur e incommercia l chemica l synthesis . Du e t o th e explosiv e and reactiv e natur e o f EO , the system s involve d i nit s manufacture , storag e o r derivativ e manufactur e ar e tightl y close d and kee p concentration s inthe atmospher e at lo w levels . I n1984 , the U S Occupationa l Safet y & Healt hAdministratio nse t a standar d o f on e par t E 0 fo r eac hon e millio npart s o f air , for a neight-hou r workday , compare d wit hthe existin g limi t o f 5 0 pp m se t in1971 . In1988 , OSHA se t a shor t ter

m exposur e limi t o f 5 pp

m ove r a 1 5 minut e period-To r worker s i nth e chemical , healt hcar e and spic e industries . To the bes t o f ou r knowledge , the informatio ncontaine d herei ni s accurate . However , w e do no t assume an

y liabilit y

whatsoeve r for the completenes s or accurac y o f thi s report .