Ethylene Oxide: Fueling Demand Across the Chemical Industry with its Versatile Applications

Researched by Industrial Info Resources (Sugar Land, Texas)--Ethylene oxide (EO), a flammable, colorless gas with a sweet odor, is used to produce a wide range of other chemicals such as, antifreeze, fabrics, plastics, detergents and adhesives. Although considered hazardous for household use, EO is used in manufacturing a number of consumer and non-consumer chemicals and day-to-day products ranging from shampoos to laundry washing powders.

EO has an important use in the medical and agricultural sectors, working as sterilant and fumigant for a variety of equipment and supplies. The American Chemical Council states that 50 million U.S. medical devices are sterilized everyday by ethylene oxide. EO's role in agriculture, like in herbicides, germicides and fungicides, has also increased its popularity. Ethylene oxide is used as a raw ingredient in the production of Monoethylene glycol (MEG) and Diethylene glycol (DEG). Extensive production of MEG to make polyester fabrics and increasing consumption of DEG through paints, cosmetics and solvents have also meant that the demand for ethylene oxide will remain robust.

Industrial Info is tracking an investment of about US$6 billion across 39 active capital-spending projects worldwide geared toward the production of ethylene oxide. Grassroot projects account for 21% of the spending and 75% of the investment is driven toward unit additions.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a full list of project reports.

About 90% of the spending is being tracked in Asia, with China driving investment worth almost US$5 billion. China has been focusing on EO production for a number of reasons, including producing glycol, meeting the demand for polyether-based superplasticizer and to utilize it in medical equipment and agricultural supplies.

While China is dominating the market for EO with a market share of 80%, countries like Iran, South Korea, India, Poland, Russia, Belgium, Japan, Brazil and Mexico are driving the remaining spending.

The key players in the market are SINOPEC Group (Beijing, China), Hengli Group Company Limited (Suzhou, China) and China National Petroleum Corporation (Beijing, China) with a cumulative value of more than US$2 billion. As the leading investor, SINOPEC Group is adding units to its ethylene oxide plants in three cities in China: Zibo, Luoyang and Maoming. Click here for the related project reports.

Projects worth 40% of the total spending are under construction, while 35% is attributed to projects being planned and 25% to projects in the engineering phase. Most of the projects commenced in 2023 and the rest are expected to commence by 2025, while reaching fruition between 2024 and 2029.

While ethylene oxide poses challenges due to its carcinogenic effects, many industries continue to benefit from it by employing careful handling practices during utilization. Furthermore, advancements in safety protocols aim to mitigate the risks associated with its use, ensuring its ongoing contribution to various sectors including healthcare, agribusiness and chemical manufacturing.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).