Growing commercial scale deployment of HPPO plants to drive global market for Hydrogen Peroxide

Global market for Hydrogen Peroxide is projected to reach 5.2 mln metric tons by 2020, driven by growing commercial scale deployment of hydrogen peroxide to propylene oxide (HPPO) plants, against a backdrop of growing environmental concerns over conventional propylene oxide (PO) production, as per a report by Strategyr.com Hydrogen peroxide (H2O2), a chemical compound of hydrogen and oxygen, plays a pivotal role in the global chemical industry. The chemical is a strong oxidizing agent and is employed predominantly to oxidize organic and inorganic compounds. Owing to its numerous chemical properties, hydrogen peroxide finds usage in a wide array of applications across a broad spectrum of industries, such as pulp & paper mills, pesticides, textiles, wastewater & potable water treatment, biological decontamination of soils, mining, tanneries, cosmetics, oral care, medical, semiconductor and detergents. H2O2 is also used in chemical industries as an oxidizer, bleacher, disinfectant and antichlor. The chemical is used as bleach for hair, ivory, feathers, and delicate fabrics. Rockets and torpedoes use it as a source of oxygen in fuel. Environmental laws and regulations play a vital role in driving the use of hydrogen peroxide, given the chemical’s emission-free and eco-friendly characteristics. Use of hydrogen peroxide in bleaching, for instance, witnessed spectacular growth following the crackdown on the use of halogenated bleaching agents, which was often associated with hazardous emissions and effluents. Hydrogen peroxide is currently being preferred widely in pollution control and water treatment applications, and as a bleaching and neutralizing agent. Increased environmental pressure, particularly in North America and Western Europe, continue to drive demand for hydrogen peroxide in applications such as pulp bleaching, treating process streams, and remediating contaminated soil and water. Pulp & paper represents the largest end-use market, accounting for a major share of hydrogen peroxide consumption worldwide. In the coming years, electronics, mining, disinfection, and water treatment are likely to emerge as lucrative end-use markets. In addition, increasing use of hydrogen peroxide to propylene oxide (HPPO) process in the production of propylene oxide is expected to fuel demand for hydrogen peroxide. HPPO technology, developed and commercialized jointly by BASF and Dow, utilizes large quantities of hydrogen peroxide for the production of propylene oxide in an emission free, environment friendly process. Asia-Pacific represents the largest regional market worldwide. Surging at a CAGR of 6.4% over the analysis period, the region also ranks as the fastest growing market with growth led predominantly by China. Key factors fuelling growth in China include bleach substitution, and strong demand from key end-use markets, such as chemical synthesis and environmental applications. Growth is also expected to come from growing production of Propylene Oxide (PO) where H2O2 is the primary raw material. Pulp & Paper represents the largest end-use sector, while chemical synthesis is projected to emerge as the fastest growing application area. Major players in the global market include AkzoNobel Pulp and Performance Chemicals AB, Arkema S.A., Chang Chun Petrochemical Co. Ltd., Evonik Industries AG, Guangdong Zhongcheng Chemicals Inc. Ltd., Hansol Chemicals, Kemira Oyj, Kingboard Chemical Holdings Ltd., Mitsubishi Gas Chemicals Co. Inc., National Peroxide Limited, Nippon Peroxide Co. Ltd., OCI Company Ltd., and Solvay SA, among others.