Vinyl Chloride Monomer/Ethylene Dichloride (VCM/EDC)

Vinyl Chloride Monomer/Ethylene Dichloride (VCM/EDC) December 2013 Report Contents
Vinyl Chloride
Monomer/Ethylene Dichloride
(VCM/EDC)
Table of Contents
A Report by Nexant
Process Evaluation/Research Planning (PERP) Program
PERP Report 2013-6 – Published December 2013
www.nexantthinking.com
Section Page
1 Executive Summary ................................................................................................. 1

1.1 OVERVIEW .................................................................................................. 1
1.2 ACETYLENE-BASED VCM ....................................................................... 2
1.2.1 Acetylene via Calcium Carbide Process ............................................ 2
1.2.2 VCM via Acetylene Process .............................................................. 3
1.3 ETHYLENE-BASED VCM .......................................................................... 4
1.4 BIO-BASED VCM ........................................................................................ 6
1.5 ETHANE BASED VCM ............................................................................... 6
1.6 ECONOMICS ................................................................................................ 6
1.6.1 Capacity ............................................................................................. 6
1.6.2 Economic Comparison ....................................................................... 8
1.6.3 Ethylene Dichloride ........................................................................... 10
1.7 COMMERCIAL ANALYSIS ........................................................................ 12
1.7.1 Global Overview ................................................................................ 13
2 Introduction .............................................................................................................. 16
2.1 VALUE CHAIN AND TECHNOLOGY OVERVIEW ................................ 16
2.2 BUSINESS DEVELOPMENTS .................................................................... 17
2.3 TECHNOLOGY HOLDERS AND LICENSING STATUS ......................... 19
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2.4 STRATEGIC AND BUSINESS CONSIDERATIONS ................................ 19

2.5 PHYSICAL AND THERMODYNAMIC PROPERTIES ............................. 20
2.6 SPECIFICATIONS ........................................................................................ 20
2.7 HEALTH HAZARDS .................................................................................... 21
2.7.1 Safety ................................................................................................. 21
2.7.2 Health ................................................................................................. 23
2.7.3 Environmental .................................................................................... 23
2.8 STORAGE AND TRANSPORTATION ....................................................... 25
3 Commercial Technologies ....................................................................................... 26
3.1 ACETYLENE BASED VCM ........................................................................ 26
3.1.1 Acetylene via Calcium Carbide Process ............................................ 29
3.1.2 VCM via Acetylene Process .............................................................. 37
3.1.3 Developments in Acetylene-Based VCM Technology ...................... 39
3.2 ETHYLENE BASED VCM .......................................................................... 42
3.2.1 Chemistry ........................................................................................... 43
3.2.2 Process ............................................................................................... 44
3.3 INEOS ............................................................................................................ 54
3.3.1 Technology Features .......................................................................... 55
3.3.2 Process Description ............................................................................ 55
3.3.3 Direct Chlorination Unit .................................................................... 57
3.3.4 VCM Production Unit ........................................................................ 58
3.3.5 Oxychlorination Unit ......................................................................... 59
3.3.6 EDC Purification and Washing .......................................................... 60
3.4 MITSUI / LG CHEM ..................................................................................... 61
3.5 OXYVINYLS ................................................................................................ 61
3.6 TOSOH .......................................................................................................... 62
3.7 VINNOLIT .................................................................................................... 62
3.7.1 Process Description ............................................................................ 62
3.7.2 EDC Production Unit ......................................................................... 64
3.7.3 VCM Production Unit ........................................................................ 66
3.7.4 Oxychlorination Unit ......................................................................... 68
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3.7.5 EDC Purification ................................................................................ 69

4 Developing Technologies ......................................................................................... 70
4.1 GREEN CHEMISTRY AND BIOTECHNOLOGY ..................................... 70
4.1.1 Ethanol-based Processes .................................................................... 70
4.2 ETHANE BASED PROCESS – PRIMARY HYDROCARBON-BASED
VINYL CHLORIDE ...................................................................................... 76
5 Process Economics ................................................................................................... 85
5.1 COSTING BASIS .......................................................................................... 85
5.1.1 Investment Basis ................................................................................ 85
5.1.2 Pricing Basis ...................................................................................... 85
5.1.3 Cost of Production Basis .................................................................... 87
5.1.4 Capacity ............................................................................................. 87
5.2 COST OF PRODUCING VCM VIA ACETYLENE PROCESS .................. 90
5.3 COST OF PRODUCING EDC VIA INEOS DIRECT CHLORINATION
PROCESS ...................................................................................................... 93
5.4 COST OF PRODUCING EDC VIA VINNOLIT CNC PROCESS .............. 95
5.5 COST OF PRODUCING EDC VIA VINNOLIT OXYCHLORINATION
PROCESS ...................................................................................................... 98
5.6 COST OF PRODUCING EDC VIA GENERIC DIRECT
CHLORINATION PROCESS ....................................................................... 98
5.7 COST OF PRODUCING VCM VIA INEOS BALANCED VINYL
CHLORIDE MONOMER PROCESS ........................................................... 101
5.8 COST OF PRODUCING VCM VIA VINNOLIT BALANCED VINYL
5.9 COST OF PRODUCING VCM VIA GENERIC BALANCED VINYL
5.10 COST OF PRODUCING “GREEN” VCM/PVC .......................................... 107
5.11 REGIONAL COST OF PRODUCTION ESTIMATES ................................ 107
5.12 SPECULATIVE COST OF PRODUCING VCM VIA ETHANE
PROCESS ...................................................................................................... 116
5.13 COMPARISON OF COMMERCIAL AND SPECULATIVE
PROCESSES TO PRODUCE VINYL CHLORIDE MONOMER ............... 119
5.14 SENSITIVITY ANALYSES ......................................................................... 123
5.14.1 Feedstock Type .................................................................................. 123
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5.14.2 Economies of Scale ............................................................................ 127

5.14.3 Capital Investment ............................................................................. 128
5.14.4 Operating Rates .................................................................................. 129
5.14.5 Conclusions ........................................................................................ 130
6 Commercial Applications ........................................................................................ 131
7 Regional Market Analysis ....................................................................................... 132
7.1 GLOBAL OVERVIEW ................................................................................. 132
7.2 NORTH AMERICA ...................................................................................... 135
7.2.1 Demand .............................................................................................. 135
7.2.2 Supply ................................................................................................ 137
7.2.3 Supply, Demand, and Trade............................................................... 140
7.3 WESTERN EUROPE .................................................................................... 142
7.3.1 Demand .............................................................................................. 142
7.3.2 Supply ................................................................................................ 143
7.3.3 Supply, Demand, and Trade............................................................... 146
7.4 ASIA PACIFIC .............................................................................................. 148
7.4.1 Demand .............................................................................................. 148
7.4.2 Supply ................................................................................................ 152
7.4.3 Demand, Supply, and Trade............................................................... 163
7.5 REST OF WORLD ........................................................................................ 166
8 Glossary .................................................................................................................... 170
9 References ................................................................................................................. 172
Appendix Page
A Definitions of Capital Cost Terms Used in Process Economics ........................... A-1

B Definitions of Operating Cost Terms Used in Process Economics ...................... B-1
C PERP Program Title Index (2004 - 2013) .............................................................. C-1
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Figure Page
1.1 Vinyl Chloride Monomer Capacity by Feedstock ..................................................... 1

1.2 Evolution of Average Chinese Vinyl Chloride Monomer Plant Capacity by
Production Process ..................................................................................................... 8
1.3 Vinyl Chloride Production Costs via Petroleum Derived Ethylene, Bio-sourced
Ethylene and Acetylene Based Process ..................................................................... 9
1.4 Vinyl Chloride Production Costs from Ethylene in the USGC and the Middle
East, from Ethane in the USGC, and from Acetylene in China ................................. 10
1.5 Ethylene Dichloride Production Costs for INEOS, Vinnolit, and Generic Process
Technology ................................................................................................................ 11
1.6 Ethylene Dichloride Production Costs for Standalone Plant, Integrated EDC-
VCM Plants, and Oxychlorination Unit..................................................................... 12
1.7 Global EDC Demand - 2013 ...................................................................................... 13
1.8 Global VCM Demand - 2013 ..................................................................................... 15
2.1 Vinyl Chloride Monomer Value Chain...................................................................... 17
2.2 Vinyl Chloride Monomer Capacity by Feedstock ..................................................... 18
3.1 Average Vinyl Chloride Monomer Plant Capacity by Country/Region - 2013......... 28
3.2 Number of Vinyl Chloride Monomer Plants by Country/Region - 2013 .................. 28
3.3 Calcium Carbide Acetylene Process .......................................................................... 31
3.4 VCM via C2H2/HCl.................................................................................................... 38
3.5 VCM via C2H4/Cl2 Chlorination/Oxychlorination Process ........................................ 45
3.6 INEOS Process........................................................................................................... 56
3.7 Vinnolit Process ......................................................................................................... 63
3.8 Vinnolit VCM Process Direct Chlorination: CNC Boiling Reactor Process ............. 65
4.1 Block Flow Diagram for Ethanol Production from Cane Juice or Molasses ............. 70
4.2 Bio-Ethanol to Green Ethylene: Conceptual Process Flow ....................................... 73
4.3 Ethylene from Ethanol (Chematur Route) ................................................................ 74
4.4 Comparison of Ethylene and Ethane based VCM Processes ..................................... 77
4.5 Schematic Representation of Reactions in EVC Oxychlorination and
Hydrogenation Reactors............................................................................................. 79
4.6 EVC’s Novel Concept of Catalytic Oxychlorination of Ethane to VCM .................. 79
4.7 EVC Ethane to VCM Process: Ethane Chlorination Section..................................... 81
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4.8 EVC Ethane to VCM Process: Chlorination, Purification & Hydrogenation

Section........................................................................................................................ 82
5.1 Evolution of Average Chinese Vinyl Chloride Monomer Plant Capacity by
Production Process ..................................................................................................... 89
5.2 Ethylene Dichloride Production Costs for INEOS, Vinnolit and Generic Process
Technology ................................................................................................................ 119
5.3 Ethylene Dichloride Production Costs for Standalone Plant, Integrated EDC-
VCM Plants, and Oxychlorination Unit..................................................................... 120
5.4 Regional Comparison for VCM based on INEOS, Vinnolit and Generic Process
Technology ................................................................................................................ 121
5.5 Vinyl Chloride Production Costs via Petroleum Derived Ethylene, Bio-sourced
Ethylene and Acetylene Based Process ..................................................................... 122
5.6 Vinyl Chloride Production Costs from Ethylene in the USGC and Middle East,
from Ethane in the USGC, and from Acetylene in China.......................................... 123
5.7 Historical Ethylene Pricing, USGC, North Western Europe, and South East Asia ... 124
5.8 Sensitivity of VCM and EDC Costs to Ethylene Pricing .......................................... 124
5.9 Sensitivity of VCM and EDC costs to Chlorine Pricing............................................ 125
5.10 Sensitivity of Acetylene Costs of Production to Calcium Hydroxide Byproduct
Pricing ........................................................................................................................ 126
5.11 Sensitivity of VCM Costs to Acetylene Pricing ........................................................ 127
5.12 Sensitivity of VCM and EDC Costs to Economy of Scale ........................................ 128
5.13 Sensitivity of VCM and EDC Costs to Capital Investment ....................................... 129
5.14 Sensitivity of VCM Production Costs to Operating Rates......................................... 130
7.1 Global EDC Demand - 2013 ...................................................................................... 132
7.2 Global VCM Demand - 2013 ..................................................................................... 134
7.3 North American EDC Demand - 2013....................................................................... 135
7.4 North American VCM Consumption - 2013 ............................................................. 137
7.5 Western Europe EDC Demand - 2012 ....................................................................... 142
7.6 Western Europe VCM Consumption - 2012.............................................................. 143
7.7 Asia Pacific VCM Consumption - 2013 .................................................................... 152
7.8 Asia Pacific VCM Consumption - 2012 .................................................................... 152
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Table Page
1.1 Average Capacity of VCM Plants by Country/Region .............................................. 7

1.2 Number of VCM Plants by Country/Region ............................................................. 7
1.3 Global EDC Supply, Demand, and Trade - 2012 ...................................................... 14
1.4 Global VCM Supply, Demand, and Trade - 2012 ..................................................... 15
2.1 VCM Licensors and Technology Holders ................................................................. 19
2.2 Key Physical and Thermodynamic Properties ........................................................... 20
2.3 Commercial Specification .......................................................................................... 20
2.4 Commercial Specification .......................................................................................... 21
3.1 Analysis of Illinois No. 6 Coal, as Received ............................................................. 30
3.2 Limestone Feed Composition, Dry Basis .................................................................. 30
3.3 Lime Feed Composition to Carbide Furnace, Dry Basis ........................................... 32
3.4 Coke Composition, Dry Basis.................................................................................... 33
3.5 Purified Coke Oven Gas, Dry Basis .......................................................................... 34
3.6 Carbide Furnace Offgas, Dry Basis ........................................................................... 34
3.7 Impurities in Carbide Acetylene Subtitle ................................................................... 36
5.1 Prices of Raw Materials, Products, Utilities, and Labor ............................................ 86
5.2 Average Capacity of VCM Plants by Country/Region .............................................. 88
5.3 Number of VCM Plants by Country/Region ............................................................. 88
5.4 Cost of Production Estimate for: Acetylene
Process: Calcium Carbide, China First Quarter 2013 ................................................ 91
5.5 Cost of Production Estimate for: Vinyl Chloride Monomer
Process: Acetylene based VCM Process, China, First Quarter 2013 ........................ 92
5.6 Cost of Production Estimate for: Ethylene Dichloride
Process: INEOS High Temperature Chlorination, China, First Quarter 2013 ........... 94
Process: Vinnolit Compact Natural Circulation Reactor for Direct Chlorination,
China, First Quarter 2013 .......................................................................................... 96
Process: Vinnolit EDC as part of an Integrated VCM Operation, China, First
Quarter 2013 .............................................................................................................. 97
Process: Vinnolit Oxychlorination Unit, China, First Quarter 2013 ......................... 99
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Process: Direct Chlorination, China, First Quarter 2013 ........................................... 100
Process: INEOS Balanced VCM Process, China, First Quarter 2013 ....................... 102
Process: Vinnolit Balanced VCM Process, China, First Quarter 2013...................... 104
Process: Conventional Balanced VCM Process, China, First Quarter 2013 ............. 106
5.14 Cost of Production Estimate for: Bioethylene
Process: Ethanol Dehydration (Fixed-Bed) ............................................................... 108
5.15 Cost of Production Estimate for: Vinyl Chloride
Process: Balanced VCM process from Bioethanol-based Ethylene, China First
Quarter 2013 .............................................................................................................. 109
Process: INEOS High Temperature Chlorination, Middle East, First Quarter
2013............................................................................................................................ 110
Process: Vinnolit Compact Natural Circulation Reactor for Direct Chlorination,
Middle East, First Quarter 2013................................................................................. 111
Process: Direct Chlorination, Middle East, First Quarter 2013 ................................. 112
Process: INEOS Balanced VCM Process, Middle East, First Quarter 2013 ............. 113
Process: Vinnolit Balanced VCM Process, Middle East, First Quarter 2013 ............ 114
Process: Conventional Balanced VCM Process, Middle East, First Quarter 2013 ... 115
5.22 Cost of Production Estimate for: Vinyl Chloride
Process: VCM from Ethane ....................................................................................... 117
Process: Generic Balanced VCM Process, USGC, First Quarter 2013 ..................... 118
7.1 Global EDC Supply, Demand, and Trade - 2012 ...................................................... 133
7.2 Global VCM Supply, Demand, and Trade - 2012 ..................................................... 134
7.3 EDC Capacity in North America - 2013 .................................................................... 138
7.4 VCM Capacity in North America - 2013 ................................................................... 140
7.5 North America EDC Supply, Demand, and Trade .................................................... 140
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7.6 North America VCM Supply, Demand, and Trade ................................................... 141
7.7 EDC Capacity in Western Europe - 2013 .................................................................. 144
7.8 VCM Capacity in Western Europe - 2013 ................................................................. 146
7.9 Western Europe EDC Supply, Demand, and Trade ................................................... 147
7.10 West European VCM Supply, Demand, and Trade ................................................... 148
7.11 Asia Pacific EDC Capacity - 2013............................................................................. 155
7.12 Asia Pacific VCM Capacity - 2013 ........................................................................... 159
7.13 Asia Pacific EDC Supply, Demand, and Trade ......................................................... 164
7.14 Asia Pacific VCM Supply, Demand, and Trade ........................................................ 166
7.15 Rest of World EDC Capacity - 2013 ......................................................................... 167
7.16 Rest of World VCM Capacity - 2013 ........................................................................ 169
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Vinyl Chloride Monomer/Ethylene Dichloride (VCM/EDC) December 2013 Report Contents

1 Executive Summary ................................................................................................. 1

2.4 STRATEGIC AND BUSINESS CONSIDERATIONS ................................ 19

3.7.5 EDC Purification ................................................................................ 69

5.14.2 Economies of Scale ............................................................................ 127

A Definitions of Capital Cost Terms Used in Process Economics ........................... A-1

1.1 Vinyl Chloride Monomer Capacity by Feedstock ..................................................... 1

4.8 EVC Ethane to VCM Process: Chlorination, Purification & Hydrogenation

1.1 Average Capacity of VCM Plants by Country/Region .............................................. 7

5.10 Cost of Production Estimate for: Ethylene Dichloride

The NexantThinking’s Process Evaluation/Research Planning (PERP) program is

New York: Heidi Junker Coleman, Global Programs Support Manager

Copyright © by Nexant Inc. 2014. All Rights Reserved.

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