High Density Polyethylene (HDPE) PERP 09/10-3 January 2011
Luann M. Farrell
CHEMSYSTEMS PERP PROGRAM
www.chemsystems.com
The ChemSystems Process Evaluation/Research Planning (PERP) program is recognized globally as the industry standard source for information relevant to the chemical process and refining industries. PERP reports are available as a subscription program or on a report by report basis.
Nexant, Inc. (www.nexant.com) is a leading management consultancy to the global energy, chemical, and related industries. For over 38 years, ChemSystems has helped clients increase business value through assistance in all aspects of business strategy, including business intelligence, project feasibility and implementation, operational improvement, portfolio planning, and growth through M&A activities. Nexant has its main offices in San Francisco (California), White Plains (New York), and London (UK), and satellite offices worldwide. For further information about these reports, please contact the following: London, Dr. Alexander Coker, Manager PERP Program, phone: + 44-(20)-70950-1570, e-mail:
[email protected]. New York, Dr. Jeffrey S. Plotkin, Vice President, phone: + 1-914-609-0315, e-mail:
[email protected]; or Heidi Junker Coleman, Multi-client Programs Administrator, phone: + 1-914-609-0381, e-mail:
[email protected]. Website: www.chemsystems.com Copyright © by Nexant Inc. 2011. All Rights Reserved.
Contents Section 1
2
Executive Summary .................................................................................................
1
1.1
INTRODUCTION .........................................................................................
1
1.2
TECHNOLOGY REVIEW AND ECONOMICS .........................................
3
1.3
COMMERCIAL OVERVIEW ......................................................................
5
1.3.1
United States ......................................................................................
5
1.3.2
Western Europe ..................................................................................
6
1.3.3
Asia Pacific ........................................................................................
8
Technology Review ..................................................................................................
10
2.1
INTRODUCTION .........................................................................................
10
2.2
ZIEGLER SLURRY PROCESSES ...............................................................
16
2.2.1
LyondellBasell (Equistar-Maruzen)...................................................
16
2.2.2
LyondellBasell (Hostalen ACP) ........................................................
22
2.2.3
Mitsui Chemicals (Mitsui CX)...........................................................
29
SLURRY LOOP PROCESSES .....................................................................
34
2.3.1
Borealis (BORSTAR) ........................................................................
34
2.3.2
Chevron Phillips.................................................................................
42
2.3.3
INEOS (INNOVENE S) ....................................................................
50
GAS PHASE PROCESSES ...........................................................................
55
2.4.1
INEOS (INNOVENE G)....................................................................
55
2.4.2
LyondellBasell (SPHERILENE) .......................................................
61
2.4.3
Univation Technologies (UNIPOL™ PE Process) ............................
71
SOLUTION PROCESSES ............................................................................
84
2.5.1
Dow Chemical (DOWLEX) ..............................................................
84
2.5.2
DSM (COMPACT) ............................................................................
89
2.5.3
NOVA Chemicals (SCLAIRTECH™ and Advanced SCLAIRTECH™) ..............................................................................
94
Economic Analysis ...................................................................................................
104
3.1
RAW MATERIALS AND UTILITIES .........................................................
104
3.2
CAPITAL COSTS .........................................................................................
105
2.3
2.4
2.5
3
Page
www.chemsystems.com
CHEMSYSTEMS PERP PROGRAM PERP 09/10-3, High Density Polyethylene (HDPE) 2011_A00101.0000.4104
1
3.3
ECONOMIC BASIS ......................................................................................
106
3.3.1
Capital and Operating Costs ..............................................................
106
3.3.2
Investment Costs ................................................................................
107
TECHNOLOGY ASSESSMENT..................................................................
116
3.4.1
Bimodal Film Resins..........................................................................
116
3.4.2
Injection Molding Resins ...................................................................
117
3.4.3
Offsites Cost Breakdown ...................................................................
119
Commercial Analysis ...............................................................................................
121
4.1
UNITED STATES .........................................................................................
121
4.1.1
Demand ..............................................................................................
121
4.1.2
Supply ................................................................................................
122
4.1.3
Supply/Demand and Trade Balance...................................................
123
WESTERN EUROPE ....................................................................................
125
4.2.1
Demand ..............................................................................................
125
4.2.2
Supply ................................................................................................
126
4.2.3
Supply/Demand and Trade Balance...................................................
128
ASIA PACIFIC ..............................................................................................
130
4.3.1
Demand ..............................................................................................
130
4.3.2
Supply ................................................................................................
131
4.3.3
Supply/Demand and Trade Balance...................................................
135
Glossary ....................................................................................................................
136
3.4
4
4.2
4.3
5
Appendix
Page
A
Cost of Production Estimates for HDPE Bimodal Film .......................................
A-1
B
Cost of Production Estimates for HDPE Injection Molding ................................
B-1
C
PERP Program Title Index .....................................................................................
C-1
www.chemsystems.com
CHEMSYSTEMS PERP PROGRAM PERP 09/10-3, High Density Polyethylene (HDPE) 2011_A00101.0000.4104
2
Figure
Page
1.1
Installed HDPE Capacity by Technology, 2009 ........................................................
1
1.2
Installed HDPE Capacity by Process, 2009 ...............................................................
2
1.3
Comparative Cost of Production Summary for Bimodal HDPE Film .......................
3
1.4
Comparative Cost of Production Summary for Homopolymer Injection Molding HDPE ..........................................................................................................
4
1.5
U.S. HDPE Demand by End-Use, 2009 ....................................................................
5
1.6
U.S. HDPE Supply/Demand and Trade Balance .......................................................
6
1.7
West European HDPE Demand by End-Use, 2009 ...................................................
7
1.8
West European HDPE Supply/Demand and Trade Balance......................................
7
1.9
Asia Pacific HDPE Demand by End-Use, 2009 ........................................................
8
1.10 Asia Pacific HDPE Supply/Demand and Trade Balance ...........................................
9
2.1
HDPE Technology Competition by Process Type.....................................................
12
2.2
Installed HDPE Capacity by Technology, 2009 ........................................................
13
2.3
Installed HDPE Capacity by Process, 2009 ...............................................................
13
2.4
Typical Single-Line Plant Capacity ...........................................................................
14
2.5
Equistar-Maruzen HDPE Process, Reactor System ...................................................
18
2.6
Equistar-Maruzen HDPE Process, Separation Process ..............................................
19
2.7
Equistar-Maruzen HDPE Process, Hexane Recovery ...............................................
20
2.8
Hostalen ACP HDPE Process, Reactor and Separation Sections ..............................
26
2.9
Hostalen HDPE Process, Hexane and Butene-1 Recovery ........................................
27
2.10 Mitsui CX HDPE Process, Reactor and Recovery Systems ......................................
32
2.11 BORSTAR Polyethylene Process, Feed and First Polymerization ............................
38
2.12 BORSTAR Polyethylene Process, Second Reactor and Recovery System ...............
39
2.13 Polymer Solubility and Supercritical Conditions ......................................................
40
2.14 Chevron Phillips Polyethylene Process, Reactor System ..........................................
47
2.15 INNOVENE S Slurry HDPE Process, Reactor System .............................................
53
2.16 INNOVENE G Fluidized Bed Polyethylene Process, Reactor System .....................
60
2.17 SPHERILENE S Fluidized Bed Polyethylene Process, Reactor System ..................
67
2.18 SPHERILENE C Fluidized Bed Polyethylene Process, Reactor System ..................
68
2.19 UNIPOL Fluidized Bed Polyethylene Process, Reactor System ...............................
80
www.chemsystems.com
CHEMSYSTEMS PERP PROGRAM PERP 09/10-3, High Density Polyethylene (HDPE) 2011_A00101.0000.4104
3
2.20 UNIPOL Polyethylene Process, Vent Recovery ........................................................
81
2.21 DOWLEX Solution Polyethylene Process, Reaction and Solvent Recovery ............
87
2.22 COMPACT Solution Polyethylene Process, Reaction and Solvent Recovery ..........
92
2.23 SCLAIRTECH Solution Polyethylene Technology, Reactor System .......................
100
2.24 Control of Molecular Weight Distribution ................................................................
102
3.1
Steel Producer Price Indexes .....................................................................................
105
3.2
Typical Pelletizing Process ........................................................................................
108
3.3
Typical Pellet Storage, Packaging, and Handling .....................................................
111
3.4
Comparative Cost of Production Summary for Bimodal HDPE Film .......................
117
3.5
Comparative Cost of Production Summary for Homopolymer Injection Molding HDPE ..........................................................................................................
119
4.1
U.S. HDPE Demand by End-Use, 2009 ....................................................................
121
4.2
U.S. HDPE Supply/Demand and Trade Balance, 2005-2014 ....................................
124
4.3
West European HDPE Demand by End-Use, 2009 ...................................................
125
4.4
West European HDPE Supply/Demand and Trade Balance, 2005-2014 ..................
129
4.5
Asia Pacific HDPE Demand by End-Use, 2009 ........................................................
130
4.6
Asia Pacific HDPE Supply/Demand and Trade Balance, 2005-2014 .......................
135
www.chemsystems.com
CHEMSYSTEMS PERP PROGRAM PERP 09/10-3, High Density Polyethylene (HDPE) 2011_A00101.0000.4104
4
Table
Page
2.1
Equistar-Maruzen HDPE Plants ................................................................................
16
2.2
Hostalen HDPE Plants ...............................................................................................
24
2.3
Mitsui CX HDPE Plants ............................................................................................
30
2.4
BORSTAR HDPE Plants ...........................................................................................
36
2.5
Chevron Phillips HDPE Plants ..................................................................................
44
2.6
INNOVENE S HDPE Plants .....................................................................................
51
2.7
INNOVENE G Polyethylene Plants ..........................................................................
56
2.8
SPHERILENE Polyethylene Plants ...........................................................................
63
2.9
UNIPOL PE Polyethylene Plants...............................................................................
75
2.10 DOWLEX Polyethylene Plants..................................................................................
85
2.11 COMPACT Polyethylene Plants................................................................................
90
2.12 SCLAIRTECH Polyethylene Plants ..........................................................................
96
2.13 Film Performance Comparison of SURPASS FPs117-C and Competitive Gas Phase mLLDPE ....................................................................................................................
98
2.14 Advantages of Bimodal Polymers from Advanced SCLAIRTECH Technology ......
102
3.1
Raw Material and Utility Prices and Labor Rates .....................................................
104
3.2
Indirect Construction Costs........................................................................................
110
3.3
Estimates for OSBL-S&P (Product Blending, Storage, Packaging, and Warehouse) .........................................................................................................
112
3.4
OSBL Investment Cost Basis.....................................................................................
113
3.5
Cost of Production Summary for Bimodal HDPE Film Resins .................................
116
3.6
Cost of Production Summary for Homopolymer HDPE Injection Molding Resins ..
118
3.7
Summary of HDPE Offsites Costs .............................................................................
120
4.1
U.S. HDPE Capacity, 2009 ........................................................................................
123
4.2
U.S. HDPE Supply/Demand and Trade Balance, 2005-2014 ....................................
124
4.3
West European HDPE Capacity, 2009 ......................................................................
127
4.4
West European HDPE Supply/Demand and Trade Balance, 2005-2014 ..................
129
4.5
Asia Pacific HDPE Capacity, 2009 ...........................................................................
132
4.6
Asia Pacific HDPE Supply/Demand and Trade Balance, 2005-2014 .......................
135
www.chemsystems.com
CHEMSYSTEMS PERP PROGRAM PERP 09/10-3, High Density Polyethylene (HDPE) 2011_A00101.0000.4104
5
