Abstract

Process Economics Program Report 12E

LINEAR ALPHA OLEFINS
(December 2008)
This report updates the Process Economics Program technical and economic appraisal of
linear alpha olefin technologies for Shell, Chevron, Ineos, IFP (Institut Francais du Patrole) and
UOP that were last examined in PEP Report 12D (June 2001). In addition, the following new
technologies are evaluated in detailed fashion as customary in the PEP:

SABIC/Linde LAO technology (alpha-SABLINTM)

DuPont LAO technology (VersipolTM)

Shell uses a liganded nickel catalyst system for ethylene oligomerization compared with
Chevron and Ineos, which employ a Ziegler catalyst. IFPs AlphaSelectTM targets the maximizing
of alpha olefin production in the C4C10 range using zirconium-based catalysts. The UOP/Union
Carbides Linear-1TM technology, like Shell, is founded on liganded nickel compounds and,
although focusing on producing C4C10 alpha olefins, can produce the detergent-grade alpha
olefins as well.
SABIC (Saudi Arabia Basic Industries Corporation) is a new entrant in the field of LAO
production business. It recently commercialized a technology jointly with Linde by commissioning
a 150,000 TPA LAO plant In Saudi Arabia. The SABIC/Linde technology is commercially branded
as alpha-SABLIN technology. Like other three main licensors, the SABIC/Linde technology can
also produce all types of LAO products. Additionally, the technology can be operated under
specific catalytic conditions to produce specific ranges (including narrow-range) of the LAO
product also. The technology is based upon a proprietary zirconium based catalyst used in
conjunction with an aluminium alkyl cocatalyst. The current report presents a detailed technoeconomic evaluation of the alpha-SABLIN technology.
DuPonts LAO technology (offered for licensing) is commercially known as Versipol. The
technology has not yet found an application in the form of a plant. DuPont catalyst is comprised
of an iron complex of a selected diimine of a 2,6-diacylpyridine or 2,6-pyridinedicarboxaldehyde.
The catalyst, which is inert at the ambient conditions of reaction, is activated for oligomerization
by an alkylaluminum compound. This technology has also been analyzed in detail.
This report also presents a detailed technical review of the major LAO technologies (Shell,
Chevron-Phillip, Ineos, IFP, UOP, SABIC/Linde, DuPont and Exxon) based upon their patents
issued in the last seven or eight years.

SRI Consulting

PEP Report 12E

SRI Consulting

Report No. 12E

LINEAR ALPHA OLEFINS

by SYED NAQVI

December 2008

A private report by the

PROCESS ECONOMICS PROGRAM

Menlo Park, California 94025

SRIC agrees to assign professionally qualified personnel to the preparation of the

Process Economics Programs reports and will perform the work in conformance with generally
accepted professional standards. No other warranties expressed or implied are made. Because
the reports are of an advisory nature, neither SRIC nor its employees will assume any liability for
the special or consequential damages arising from the Clients use of the results contained in the
reports. The Client agrees to indemnify, defend, and hold SRIC, its officers, and employees
harmless from any liability to any third party resulting directly or indirectly from the Clients use of
the reports or other deliverables produced by SRIC pursuant to this agreement

For detailed marketing data and information, the reader is referred to one of the SRI
Consulting programs specializing in marketing research. THE CHEMICAL ECONOMICS
HANDBOOK Program covers most major chemicals and chemical products produced in the
United States and the WORLD PETROCHEMICALS PROGRAM covers major hydrocarbons and
their derivatives on a worldwide basis. In addition the SRIC DIRECTORY OF CHEMICAL
PRODUCERS services provide detailed lists of chemical producers by company, product, and
plant for the United States, Western Europe, Canada, and East Asia, South America and Mexico.

CONTENTS

INTRODUCTION ........................................................................................................

1-1

SUMMARY .................................................................................................................

2-1

COMMERCIAL STATUS ............................................................................................

2-1

INDUSTRIAL PRODUCERS/LICENSORS ................................................................

2-2

LINEAR ALPHA OLEFINS TECHNOLOGIES............................................................

2-2

Shell Higher Olefins Process for Linear Alpha and Internal Olefins...........................

2-3

Chevron Linear Alpha Olefins Process ......................................................................

2-4

Ineos Linear Alpha Olefins Process ...........................................................................

2-5

SABIC/Linear Alpha Olefins Technology (alpha-SABLIN) .........................................

2-6

DuPont Linear Alpha Olefins Technology (Versipol)..................................................

2-7

Institut Francais du Petrole (IFP) LAO Technology (AlphaSelect).............................

2-7

UOP/UCC Linear Alpha Olefins Technology (Linear-1) .............................................

2-9

Exxon Linear Alpha Olefins Technology ....................................................................

2-10

PROCESS ECONOMICS...........................................................................................

2-11

INDUSTRY STATUS..................................................................................................

3-1

CAPACITY, PRODUCTION, AND CONSUMPTION .................................................

3-2

TECHNICAL REVIEW................................................................................................

4-1

TECHNICAL REVIEW ................................................................................................

4-2

Shell Higher Olefins Process for Linear Alpha and Internal Olefins...........................

4-2

Shell Current Research on Oligomerization Catalysts & Process .......................

4-3

Chevron Linear Alpha Olefins Process ......................................................................

4-7

Chevron Current Research on Oligomerization Catalysts & Process..................

4-9

Ineos Linear Alpha Olefins Process ...........................................................................

4-11

Ineos Current Research on Oligomerization Catalysts & Process ......................

4-14

Institut Francais du Petrole (IFP) LAOs Technology (AlphaSelectTM)........................

4-16

IFP Current Research on Oligomerization Catalysts & Process..........................

4-18

SRI Consulting

iii

PEP Report 12E

CONTENTS (Continued)

UOP/UCC Linear Alpha Olefins Technology (Linear-1) .............................................

4-21

UOP/UCC Current Research on Oligomerization Catalysts & Process...............

4-22

SABIC/Linde Linear Alpha Olefins Technology (alpha-Sablin) ..................................

4-25

SABIC/Linde Current Research on Oligomerization Catalysts & Process...........

4-25

DuPont Linear Alpha Olefins Technology (Versipol)..................................................

4-27

Exxon Linear Alpha Olefins Technology ....................................................................

4-28

Exxon Current Research on Oligomerization Catalysts & Process .....................

4-29

SABIC-LINDE LINEAR ALPHA OLEFINS PROCESS .............................................

5-1

PROCESS DESCRIPTION ........................................................................................

5-2

Section 100 - Ethylene Oligomerization .....................................................................

5-2

Section 200 - Alpha Olefins Separation .....................................................................

5-4

PROCESS DISCUSSION...........................................................................................

5-15

Materials of Construction............................................................................................

5-16

Process Waste Effluents ............................................................................................

5-16

COST ESTIMATES ....................................................................................................

5-17

Fixed-Capital Costs ....................................................................................................

5-17

Production Costs ........................................................................................................

5-18

DUPONT LINEAR ALPHA OLEFINS PROCESS .....................................................

6-1

PROCESS DESCRIPTION ........................................................................................

6-2

Section 100 - Ethylene Oligomerization .....................................................................

6-2

Section 200 - Alpha Olefins Separation .....................................................................

6-3

PROCESS DISCUSSION...........................................................................................

6-15

Materials of Construction............................................................................................

6-15

Process Waste Effluents ............................................................................................

6-16

COST ESTIMATES ....................................................................................................

6-16

Fixed-Capital Costs ....................................................................................................

6-16

SRI Consulting

iv

PEP Report 12E

CONTENTS (Concluded)

Production Costs ........................................................................................................

6-17

IFP & UOP LINEAR ALPHA OLEFINS PROCESSES .............................................

7-1

COST ESTIMATES ....................................................................................................

7-8

Fixed-Capital Costs ....................................................................................................

7-8

Production Costs ........................................................................................................

7-8

COST ESTIMATES ....................................................................................................

7-21

Fixed-Capital Costs ....................................................................................................

7-21

Production Costs ........................................................................................................

7-21

PROCESS ECONOMICS OF SHELL, CHEVRON AND INEOS LINEAR ALPHA

OLEFINS TECHNOLOGIES ......................................................................................

8-1

APPENDIX A: PATENT SUMMARY TABLES..................................................................

A-1

APPENDIX B: DESIGN AND COST BASES ....................................................................

B-1

APPENDIX C: CITED REFERENCES...............................................................................

C-1

APPENDIX D: PATENT REFERENCES BY COMPANY..................................................

D-1

APPENDIX E: PROCESS FLOW DIAGRAM ....................................................................

E-1

SRI Consulting

PEP Report 12E

FIGURES

4.1

Ineos Linear Alpha Olefins Process

Poisson Product Distribution for Various Values of X ........................................... 4-13

5.1

SABIC-Linde Linear Alpha-Olefins Process

Flow Diagram ........................................................................................................ E-3

5.2

SABIC-Linde Linear Alpha Olefins Process

Net Production Cost and Product Value as a Function of Ethylene Price ............ 5-23

5.3

SABIC-Linde Linear Alpha Olefins Process

Product Operating Level and Plant Capacity ........................................................ 5-24

6.1

DuPont Linear Alpha-Olefins Process

Flow Diagram ........................................................................................................ E-7

6.2

DuPont Linear Alpha Olefins Process

Net Production Cost and Product Value as a Function of Ethylene Price ............ 6-22

6.3

DuPont Linear Alpha Olefins Process

Product Value as a Function of Plant Operating Level and Plant Capacity.......... 6-23

7.1-A

IFP Linear Alpha Olefins Process

Net Production Cost and Product Value as a Function of Ethylene Price ............ 7-14

7.1-B

UOP Linear Alpha Olefins Process

Net Production Cost and Product Value as a Function of Ethylene Price ............ 7-27

SRI Consulting

vi

PEP Report 12E

TABLES

2.1

Major World Producers of Linear Alpha Olefins .................................................... 2-2

2.2

Commercial Linear Alpha Olefins Technologies

Total Capital Investment........................................................................................ 2-12

2.3

Linear Alpha Olefins Technologies (In Ready-State for Commercialization)

Total Capital Investment........................................................................................ 2-13

2.4

Commerical Linear Alpha Olefins Technologies

Production Costs ................................................................................................... 2-15

2.5

Linear Alpha Olefins Technologies (In Ready-State for Commercialization)

Production Costs ................................................................................................... 2-16

3.1

World Supply/Demand for Linear Alpha Olefins by Region .................................. 3-2

3.2

World Producers of Linear Alpha Olefins .............................................................. 3-3

3.3

Major World Producers of Linear Alpha Olefins .................................................... 3-4

3.4

Linear Alpha Olefins Consumption Breakdown in Major Areas ............................ 3-4

5.1

SABIC-Linde Linear Alpha Olefins Process

Design Bases ........................................................................................................ 5-5

5.2

SABIC-Linde Linear Alpha Olefins Process

Stream Flows......................................................................................................... 5-7

5.3

SABIC-Linde Linear Alpha Olefins Process

Major Equipment ................................................................................................... 5-11

5.4

SABIC-Linde Linear Alpha Olefins Process

Utilities Summary................................................................................................... 5-14

5.5

SABIC-Linde Linear Alpha Olefins Process

Total Capital Investment........................................................................................ 5-19

5.6

SABIC-Linde Linear Alpha Olefins Process

Capital Investment by Section ............................................................................... 5-20

5.7

SABIC-Linde Linear Alpha Olefins Process

Production Costs ................................................................................................... 5-21

6.1

DuPont Linear Alpha Olefins Process

Design Bases ........................................................................................................ 6-5

6.2

DuPont Linear Alpha Olefins Process

Stream Flows......................................................................................................... 6-7

6.3

DuPont Linear Alpha Olefins Process

Major Equipment ................................................................................................... 6-11

SRI Consulting

vii

PEP Report 12E

TABLES (Continued)

6.4

DuPont Linear Alpha Olefins Process

Utilities Summary................................................................................................... 6-14

6.5

DuPont Linear Alpha Olefins Process

Total Captial Investment........................................................................................ 6-18

6.6

DuPont Linear Alpha Olefins Process

Capital Investment by Section ............................................................................... 6-19

6.7

DuPont Linear Alpha Olefins Process

Production Costs ................................................................................................... 6-20

7.1-A

IFP Linear Alpha Olefins Process

Design Bases ........................................................................................................ 7-2

7.2-A

IFP Linear Alpha Olefins Process

Major Equipment ................................................................................................... 7-4

7.3-A

IFP Linear Alpha Olefins Process

Utilities Summary................................................................................................... 7-7

7.4-A

IFP Linear Alpha Olefins Process

Total Capital Investment........................................................................................ 7-10

7.5-A

IFP Linear Alpha Olefins Process

Capital Investment by Section ............................................................................... 7-11

7.6-A

IFP Linear Alpha Olefins Process

Production Costs ................................................................................................... 7-12

7.1-B

UOP Linear Alpha Olefins Process

Design Bases ........................................................................................................ 7-15

7.2-B

UOP Linear Alpha Olefins Process

Major Equipment ................................................................................................... 7-17

7.3-B

UOP Linear Alpha Olefins Process

Utilities Summary................................................................................................... 7-20

7.4-B

UOP Linear Alpha Olefins Process

Total Capital Investment........................................................................................ 7-23

7.5-B

UOP Linear Alpha Olefins Process

Capital Investment by Section ............................................................................... 7-24

7.6-B

UOP Linear Alpha Olefins Process

Production Costs ................................................................................................... 7-25

8.1

Commercial Linear Alpha Olefins Technologies

Total Capital Investment........................................................................................ 8-2

SRI Consulting

viii

PEP Report 12E

TABLES (Concluded)

8.2

Linear Alpha Olefins Technologies (In Ready-State for Commercialization)

Total Capital Investment........................................................................................ 8-3

8.3

Commercial Linear Alpha Olefins Technologies

Production Costs ................................................................................................... 8-4

8.4

Linear Alpha Olefins Technologies (In Ready-State for Commercialization)

Production Costs ................................................................................................... 8-5

SRI Consulting

ix

PEP Report 12E