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Higher Alcohols Market Faces Challenges

October 4, 2006

The 1.7-ton higher alcohols market is witnessing one of the first major challenges of petroleum-based chemical economics under the current regime of $60-plus crude oil, according to a new study, Higher Alcohols - Forecast to 2020, by Colin A. Houston and Associated, Inc., a consulting firm in Brewster, NY. New oleo alcohol plants based on renewable raw materials––coconut and palm kernel oils––are scheduled to add close to a million tons of alcohol capacity to the market during the next two years. In 2005, oleo-based alcohols from existing plants already supplied 61% of the higher alcohols market, and their share will increase to at least 65% by 2010.
Little alcohol is used in laundry detergents in Asia now and personal care already uses large volumes of oleo alcohols, so the LAB/alcohol rivalry will be acute as alcohol producers
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