Increase In The Number Of Bio-Based Ethylene Glycol (Meg) Layout Companies Global Capacity Additions Are Concentrated In Europe And The Us

Compared to petroleum-based glycols, bio-based glycols have the advantages of short process flow, high environmental friendliness and high flexibility in raw material selection. In recent years, against the background of increasingly stringent environmental regulations and faster energy conversion, the bio-economy is developing rapidly and bio-based glycols are attracting attention from countries around the world.

Ethylene glycol, also known as glycol, 1,2-ethyleneglycol, etc., is an important basic chemical raw material with a colourless, odourless and sweet-smelling liquid appearance. It is often used as a solvent, antifreeze, surfactant, antifreeze, etc.

It is used in pharmaceutical, coal chemical, automotive, chemical fiber, synthetic polyester and other fields. The market scale of ethylene glycol application is huge. In the context of carbon neutral and carbon daft strategy, the bio-based ethylene glycol market has great room for development.

According to the "China Bio-based Ethylene Glycol (MEG) Industry Market Monitor and Future Development Prospects Research Report 2022-2026" released by the NewSIng Industry Research Center, globally, the market consumption scale of ethylene glycol exceeds 30 million tons and is in a continuous growth trend.

The global ethylene glycol process is almost all based on fossil raw materials such as oil, natural gas and coal, such as the Middle East ethylene glycol is mostly synthesized from ethane and propane in the associated gas of oil fields, and China is a global ethylene glycol production and consumption country, domestic ethylene glycol is mostly coal-based ethylene glycol, naphtha/ethylene process ethylene glycol, etc.

In 2020, the global production of bio-based chemicals industry is around 10.5 million tons, among which the main bulk bio-based chemicals are ethylene, ethylene glycol, propylene glycol, glycerol, etc. Globally, bio-based glycol production capacity is mainly concentrated in North America, Europe and other regions, with related producers such as Braskem, Avantium, UPM UPM and others.

The production of glycols from plant-based industrial sugars is one of Avantium's main businesses and technologies. In 2021, Avantium and Cosun Beet established a joint venture with the goal of becoming a world-class producer of bio-based glycols, which is scheduled to operate in 2025.

China's bio-based glycol industry started late, but in recent years, with the support of the government, the bio-based glycol industry has also made certain achievements, while in 2021, bio-based materials and biodegradable materials into the "14th Five-Year Plan" national key research and development plan, will further promote the development of bio-based glycol industry. Domestic companies engaged in the research of bio-based ethylene glycol include Changchun Meihe Technology Development Company, Dalian Institute of Chemical Technology and so on.

Analysts say that glycol has a wide range of applications, and the current global supply of glycol is almost entirely based on fossil raw materials, including oil, natural gas and coal. In recent years, along with the rapid development of bio-economy, the attention of bio-based ethylene glycol market has increased.

Attracted by the good market prospect, the number of global layout enterprises is growing, and the future bio-based ethylene glycol market market has great potential for development.