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The market for POGEs has grown steadily over the past three to five years, consistently outstripping global GDP. One of the main drivers has been the substitution of other, less environmentally acceptable chemicals. Tighter environmental regulations, as well as a general increased environmental awareness, has led major solvent users such as the paint and coatings industry to shift towards more benign raw materials.

"With their low toxicity and low volatility, combined with high solvency and other performance attributes, POGEs offer an attractive combination of environmental and technical properties," says Product Manager Danny Eyckmans.

"They have both an alcohol and an ether functionality in their chemical structure, which means they can mix with water as well as other solvents," he explains. "This offers a lot of formulation flexibility and is particularly attractive to the coatings industry, where there has been a major shift to waterborne systems." Other outlets for POGEs include printing inks, cleaners, cosmetics and pharmaceutical.

The substitution of certain ethylene-based glycol ethers, known as the 'dirty four', has been one of the major reasons for the recent growth of POGEs in the regulated markets of Europe and North America. "While that effect is levelling out, a similar trend is starting in the developing markets of Asia, as environmental awareness increases and the regulatory framework develops," says Eyckmans.

Growth in Asia is already outpacing other regions and even though the volumes involved are still relatively small, this has led to some supply issues. "What was until recently a balanced market has already become a little tight," he says.

There has been no new investment in global POGE production since Shell's world scale plant at Pernis in the Netherlands came onstream in 2001. Since then Shell Chemicals have grown their presence in the key global markets due to its strong integrated manufacturing position in both the propylene oxide (PO) feedstock and its derivatives.

"Although POGEs are solvents they are actually part of our PO-Derivatives business because of the manufacturing synergies Shell has as both a major player in PO and a producer of its derivatives."

Rising demand

It is estimated that at least three world scale POGE plants will be required in the next ten years if supply is to keep pace with rising demand from Asia.

"While growth in the developed markets continues at around four percent per annum, in Asia it is closer to six and is expected to continue at that rate for at least the next 15 years," says Sally Pang, POGE Marketing Manager for Asia-Pacific. "We have seen steadily rising demand from the coatings sector as environmental considerations become increasingly important in product selection, as well as growing interest from new sectors such as the electronics industry."

Globally, coatings account for 75 percent of POGE consumption, but in Asia the electronics industry is an increasingly important, and fastest growing, outlet with around 25 percent of the market. "The high purity of POGEs makes them ideal in the preparation of electronics components, an area where Asia leads the world," says Pang. "The major users in these applications are the traditional strongholds of consumer electronics manufacturing – Taiwan, Japan and Korea."

An example of the new type of customer is E Kay Technology Company Ltd, a specialist chemicals supplier to the Taiwanese electronics industry. Among its own customers are some of the largest producers of semiconductors and LCD (liquid crystal display) panels in the world.

E Kay's President, Jerry Lu, says demand for POGEs is a result of their suitability for critical steps in the manufacturing of electronics components. "POGEs have the necessary high purity, and particularly low metal content, required in these sensitive manufacturing processes." (See 'One in a billion purity' section below).

He says environmental considerations have become increasingly important in the selection of chemicals. "Glycol ethers not only have the low volatility and toxicity but are also easily recycled or re-used in a secondary process. This will be a major factor in the future selection of products such as solvents."

Cutting edge

Quality and reliability are critical to E Kay customers. "The electronics industry is at the cutting edge of new technology and manufacturing facilities require massive investment, running into billions of dollars.

"Chemicals such as POGEs are vitally important to their production and have to be delivered on a just-in-time basis. If we fail to deliver just one litre of a chemical when it's needed, or the product is off-spec, the customer's entire operation has to shut down."

Naturally, E Kay places similar importance on the selection of its own suppliers. "We are looking for long term partners rather than short term suppliers, and those with the strong raw material integration to enable us to deliver the supply security our customers demand.

"When we choose a supplier we are also looking at those with international presence and reputations, and who share our vision of corporate and environmental responsibility. Since the relationship with Shell Chemicals began at the start of 2006 things have gone well, but one of our concerns is the future availability of additional capacity in the region."

Feedstock availability

While a number of POGE producers are planning on bringing new capacity onstream in Asia towards the end of the decade, the major issue for the industry is the availability of PO feedstock.

As some of the world's leading PO producers Shell companies have that important backward integration. "Our growth strategy for glycol ethers is tied into both our leadership in PO and the overall development of our derivatives portfolio, which we are committed to grow in line with the markets," says Kalyan Ram, PO & Derivatives Business Manager.

"Having successfully loaded our world scale POGE plant in The Netherlands, we are looking carefully at the next stage in the expansion of our capacity." He says that all the necessary building blocks are already in place in Asia. "Our existing PO capacity in Singapore as well as China could be ideally positioned to provide us with a new growth platform but we are looking at all the options. Whatever form it takes, it will certainly be in Asia, close to the source of demand growth."

One in a billion purity

E Kay Technology Company Ltd supplies around 100,000 tonnes per year of specialist chemicals to the Taiwanese electronics industry. Along with Japan and Korea, Taiwan has become a centre of production for components essential to ever more sophisticated electronic products.

The main applications for POGEs is in the production and cleaning of semiconductors and integrated circuit boards, which are at the heart of most electronics goods, and Thin Film Transistor (TFT) LCD panels used in computer monitors, automotive displays and televisions.

POGEs are used for the etching or depositing of conductive lines, as well as the removal of contaminant deposits and final cleaning of components. Their high purity is a major advantage as acceptable contaminant levels in these processes are as low as one part per billion. The slightest impurity could cause a short circuit on these highly sophisticated components.

To ensure the quality and purity of the chemicals it supplies, E Kay carries out performance tests on its own small-scale production line, which duplicates those of its customers. It also conducts extensive analytical tests and quality checks under 'clean room' conditions.

Propylene oxide glycol ethers web content
Propylene oxide web content

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