Raw Material Shortage Restricts Development of Isobutanol Sector   
By Guan Junchao   

Remarkable capacity growth   

Despite the considerable demand for isobutanol in the domestic market, not many new isobutanol units have been constructed in China in recent years. Only BASF-YPC Co., Ltd. constructed a 40 000 t/a unit in 2005. China's capacity to make isobutanol was 81 500 t/a in 2008.
   Due to the brisk demand for butanol/octanol, oxo-alcohol enterprises in China try to produce more n-butyraldehyde through optimizing or readjusting isomer ratio. The output of isobutyraldehyde as raw material for isobutanol production is relatively small. Besides, a considerable proportion of isobutyraldehyde is occupied for production of neopentylglycol. All this brings about serious supply shortage of isobutyraldehyde for isobutanol production.
   Due to its considerable supply gap, some domestic enterprises plan to construct or expand isobutanol units. PetroChina Daqing Petrochemical Co., Ltd. will construct an n-butanol/octanol unit and also a matched 22 000 t/a isobutanol unit. PetroChina Sichuan Petrochemical Co., Ltd. will construct a production line of 81 800 t/a octanol, 211 900 t/a n-butanol and 30 800 t/a isobutanol. The production line is expected to go on stream in September 2010. LP OxoSM SELECTORSM Technology cooperatively offered by Dow Technology Licensing (a business unit of Dow Chemical Company and its consolidated affiliates) and Davy Process Technology Limited was selected by Lihuayi Group on June 18th, 2008 to be technology used in a new 250 000 t/a facility in Dongying of Shandong province. Slated to produce 140 000 t/a 2-ethyl hexanol, 85 000t/a n-butanol and 24 400 t/a isobutanol, the plant will be put into operation in 2010. (CCR2008, No. 19) It is expected that the capacity of iso-butanol in China will reach 158 700 t/a in 2011.

Considerable supply shortage

Isobutanol in China is mainly used for the production of plasticizer DIBP (diisobutyl phthalate) and the consumption in this sector accounts for 50%-62% of the total, the other, is used for production of isobutyl acetate, and as a substitute for butanol, it can be applied to such areas as furniture, spray lacquer for automobiles, plastic coating film, etc.
   China has become a major isobutanol consumer in the world. The apparent consumption of isobutanol in China was around 220 000 tons in 2008. There is a considerable supply shortage and great quantities have to be imported from abroad each year. China imported 142 700 tons of isobutanol in 2008, a drop of 13.5% from 2007. The main reason for the import reduction was the decreased demand for isobutanol in the domestic market due to impacts from the global financial crisis.
   Several oxo-alcohol units will be constructed in China in the next few years. With the completion of these projects, the output of isobutanol will increase remarkably, but still can not satisfy the domestic demand. The market supply shortage will still be quite big.

Raw material competition being a focus

Isobutyraldehyde as raw material for isobutanol production has serious supply shortage. Despite a remarkable growth of the isobutanol capacity, as the butanol/octanol market is brisk the raw material competition between isobutanol and n-butnaol will last for long years.