Degussa considering catalyst plant in Alabama

March 15, 2007

BY Dave Nilles

Specialty chemicals company Degussa is considering plans to build a 60,000 metric-ton facility at its existing Mobile, Ala., site for the production of alkoxides, which are used to create catalyst solutions in biodiesel production. The project is aimed at supplying the rapidly growing North American biodiesel market.

"With this facility, we are consistently pursuing our strategy of strengthening businesses with leading positions in attractive markets," said Klaus Engel, chairman of Degussa's management board. "The intensive debate on climate protection leads us to expect a growth rate well into double digits for the biodiesel market. This applies particularly well for the (United States)."

The project has been submitted to the company board for approval. A final decision to build the facility is expected in mid-2007. The construction timeline would allow Degussa to supply its North American customers in the second half of 2008.

Degussa currently supplies its worldwide biodiesel catalyst demand through its facility in Lulsdorf, Germany. Degussa is a subsidiary of Essen, Germany-based RAG Aktiengesellschaft. "An additional production facility in North America is desirable in the interests of speed and customer proximity," said Thomas Haeberle, head of Degussa's Building Blocks business unit.

Although alkoxides can be used for numerous applications, the Mobile plant would primarily serve the biodiesel market. The U.S. industry produced an estimated 225 MMgy of biodiesel in 2006. More than 1 billion gallons of production capacity is projected to come on line within the next 12-18 months, according to figures reported to Biodiesel Magazine.

Degussa has previously said that alkoxide catalyst solutions are mainly used in large-scale plants. Alkoxide catalysts are hygroscopic, which lends them well to water-free processes. The catalysts are used in solution rather than solid form. Degussa said alkoxide catalysts are typically used in a 30 percent sodium methylate solution or 32 percent potassium methylate solution.

Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at dnilles@bbibiofuels.com or (701) 373-0636.

Posted: 12:05 p.m. CDT Thursday, March 29, 2007

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