Chemical major Gujarat Alkalies and Chemicals Limited (GACL) has entered into an agreement with a Germany-based specialty chemicals maker, Evonik Industries for setting up a multi-million hydrogen peroxide and propylene oxide (HPPO) project at Dahej in Gujarat. The aim is to produce propylene oxide using the environment-friendly HPPO process developed jointly by Evonik, Essen (Germany), and Uhde, Dortmund (Germany). Representatives of Evonik and GACL have now signed a Memorandum of Understanding on the proposed project in Dahej in the state of Gujurat (India). The project is contingent upon the approval of the Executive Board and Supervisory Board of Evonik Industries AG.

"India is one of the world?s most important growth markets and we want to increase our presence there. The government of Gujarat has created the right conditions in the chemical industry to welcome foreign investors. The proposed joint project with GACL could become a real landmark in Evonik's presence in India," stressed Dr. Thomas Haeberle of the Board of Management of Evonik Degussa GmbH.

The Memorandum of Understanding is expected to mark the start of a close and lasting collaboration between Evonik and GACL, which intends to acquire a license from Evonik and Uhde to use the HPPO process to produce propylene oxide. Evonik will produce and supply the hydrogen peroxide required for the planned new propylene plant at an over-the-fence facility. Experts are predicting a sharp rise in global demand for propylene oxide in the coming years.

The model for this alliance in India is the world?s first industrial-scale HPPO production facility, which has capacity 100,000 metric tonnes per annum. This plant was started up in 2008 by the Korean company SKC in Ulsan (Korea) and has operated continuously at maximum capacity since it came into service.

"The new project in India is further evidence that we are moving in the right direction with our innovative, environment-friendly HPPO technology. Our strategic objective is to gain access to new markets for hydrogen peroxide in addition to the conventional applications," according to Dr. Thomas Haeberle.

Traditionally, hydrogen peroxide has been supplied to the paper and pulp industry. Evonik is the world's second-largest producer of this environment-friendly bleaching and oxidation agent, with capacity of around 600,000 metric tons p.a. at production facilities in Europe, North America, South America, New Zealand, Asia, South Africa and Indonesia. The HPPO process developed with Uhde is an innovative route for the production of propylene oxide from hydrogen peroxide.

This route has clear advantages compared with the conventional production process for propylene oxide. Investment in the HPPO process is far lower, making it more economical. Moreover, the process is extremely environment-friendly: High yields are achieved and there are no significant amounts of by-products apart from water. "That decreases the environmental impact and at the same time ensures economically sustainable production. In other words, the process is an example of practical resource efficiency," explains Van den Bergh, who heads Evonik's Industrial Chemicals Business Unit. It therefore supports GACL's aim of promoting green technology.

Evonik is the only single-source supplier of HPPO process technology, the necessary catalyst and the starting product, hydrogen peroxide. Propylene oxide produced by this process is used in the manufacture of polyurethane foams, for example, for energy-saving insulation of refrigerators and buildings. In the automotive sector, foams are used in seat cushioning, dashboards and bumpers that reduce vehicle weight and thus cut fuel consumption.