Dow and BASF to Pursue Joint Development of Process Technology for Propylene Oxide
MIDLAND, Mich., Aug. 1 - The Dow Chemical Company and BASF announced today plans to join forces in the development of technology for the manufacture of propylene oxide (PO) utilizing hydrogen peroxide (HP) as a key raw material.
Both companies have significant patent portfolios as well as extensive pilot plant experience with the hydrogen peroxide route to PO (HP-PO process).
The HP-PO technology owned by Dow was acquired with the company's acquisition of EniChem's polyurethanes business in May 2001. EniChem was a pioneer in the development of the hydrogen peroxide process technology, holding a portfolio of patents dating from the early 1980s. BASF has been developing the HP-PO technology since 1995 and is now in the final stage of its development.
"Producing propylene oxide via the HP-PO process represents a significant improvement in cost-effectiveness when compared to existing processes, and eliminates the complications of handling co-products," said Bob Wood, Business Group President of Dow Thermosets, which includes Dow's Propylene Oxide and Propylene Glycol business unit, along with Polyurethanes, Polyurethanes Systems and Epoxy Products & Intermediates.
"We believe that combining the research and development strengths of both companies, through this joint development effort, will improve and accelerate commercialization of the HP-PO process technology," said John Feldmann, member of BASF's Board of Executive Directors with responsibility for BASF's Plastics & Fibers segment, which includes BASF's global Polyurethanes division. "A straightforward design without co-products will allow flexible investment decisions with respect to timing and location," Feldmann said.
"Both companies have made tremendous steps in the development of this technology in recent years, and we expect additional value in a joint development," said Jean-Pierre Dhanis, President of BASF's Polyurethanes division. "Should the technology meet our mutual expectations, we could have the basic design of a commercial world-scale PO plant available in time for start up as early as 2006," Dhanis said.
"As a leading PO manufacturer with a broad process technology portfolio -- chlorohydrin, propylene oxide/styrene monomer (PO/SM) and now HP-PO -- Dow is enhancing its ability to cost-effectively serve customers according to their individual needs and geographic locations," said David Pashalidis, global business director for Dow's propylene oxide and propylene glycol business.
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