1,4-Butanediol (BDO) is a highly versatile, water-soluble polymer used in various personal care and pharmaceutical applications. It is mainly produced by using fossil-based feedstock. However, now a days more emphasis is being placed on producing biobased BDO. It is a key chemical building block of products including polyurethanes, polybutylene terephthalate (PBT), polytetramethylene ether glycol (PTMEG), polybutylene adipate terephthalate (PBAT), polyvinyl pyrrolidone (PVP), gamma butyrolactone (GBL) and tetrahydrofuran which further has wide range of applications. The following derivatives of 1,4-Butanediol are shown in Figure 1.

APPLICATIONS OF BDO:

1,4 BDO has a wide range of applications in several end-use industries including automotive, medical & pharmaceuticals, textile, footwear, electronics, plastics, among others. Major part of BDO is being used to produce Tetrahydrofuran and approximately 80% of it is used for the production of polytetramethylene ether glycol (PTMEG), which in turn is used in the manufacturing of thermoplastic urethane elastomers and polyurethane fibers (spandex) and the rest is consumed either as a reaction solvent in the production of pharmaceuticals or as solvent in the manufacturing of polyvinyl chloride cement and coatings.

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BDO PRODUCTION TECHNOLOGIES AND COMMERCIALIZATION:

The various conventional methods used by the industries to produce 1,4-butanediol are Reppe method developed by BASF based on acetylene, maleic anhydride method (Davy-McKee), butadiene-acetic acid method (Mitsubishi Chemical), propylene oxide method (Lyondell) etc. Among these methods, the Reppe process is utilized by 70% of the industries. Other than these, the newly emerged Bio-Route technology that uses plant-based feedstocks rather than petroleum-based sources is growing rapidly. Succinic Acid (Bio-Route) licensed by Davy Process Technology and Sugar (Bio-Route) licensed by Genomatica are being used by the industries like BioAmber Inc., Novamont and Cargill & Helm to produce green BDO.

With consumers demanding more sustainable green products that are biodegradable, manufacturers are now looking forward to produce more innovative, environment friendly solutions. Genomatica and Myriant are pioneers in bio-based technologies and have invested heavily in sustainable production processes that consequently impels the leading industries to license these technologies to create biobased chemicals which are in global demand and therefore drive the growth of the market.

1,4-BD business has transitioned through numerous changes at different periods of time coupled with many ups and downs. However, the new technology offered by Genomatica to make green biobased BDO not only gives a new boost to its market growth but also to the new approach of creating more environmentally responsible future.

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MILESTONE IN THE PRODUCTION OF BIOBASED BDO:

Cargill has formed a joint venture with Helm to build USD300 million biobased 1,4-butanediol plant to produce 65,000 metric tons of 1,4-butanediol per year, at Cargill’s corn-refining facility in Eddyville, Iowa. The technology has been licensed by California-based Genomatica, which developed engineered Escherichia coli that produces butanediol from sugar. A bio-based 1,4- butanediol (BDO) saves upto 93% of greenhouse gas emissions compared to the use of conventional BDO, revealed by the joint venture. Genomatica had given the license to Novamont S.p.A to build a plant of 30 thousand tons per year green BDO.

BASF is the largest global producer of petroleum-derived butanediol. Genomatica and BASF have expanded their license agreement to produce 1,4-butanediol based on renewable feedstock using technology patented by Genomatica. The license allows BASF to build a plant using Genomatica’s technology with the capacity to produce 75,000 tons of BDO per year. Its portfolio has been extended by BASF to manufacture Polytetrahydrofuran (PolyTHF) made from renewable BDO. It also added Southeast Asia as a potential location for the plant, in addition to North America which will offer great opportunities for the investors and upsurge the growth of BDO market in the APAC region.

1,4 ISOBUTYLENE MARKET

Globally, there is a huge demand for 1,4-BDO, especially in the developed and developing economies owing to its wide range of application in different industrial sectors. However, Asia-Pacific region is dominating the market due to the growing demand from industries involved in businesses related to automotive, electronics, leather, and plastics among others. China is the largest automotive and electronics manufacturer in the world and is now focusing on the development of electric vehicles, which is giving a push to BDO demand in the region. Global automobile manufacturers are also investing in this region to set up their manufacturing plants which is likely to boost the demand for BDO. In India, government initiatives, such as a Phased Manufacturing Programme (PMP) have also been promoting the growth of the electronics industry. Besides, with the increasing population, the demand for consumer appliances has also increased, thereby accelerating the growth of 1,4 butanediol market. Additionally, electronics industry is predicted to have a growth of 7% with the increase in usage of remote technologies in 2021, as per Japan Electronics and Information Technology Industries (JEITA).

Leading players in the global 1,4-butanediol market include BASF SE, Dairen Chemical corporation, LyondellBasell Chemicals, Exxon Mobil Corporation, Shanxi Sanwei Group, International Specialty Products, Invista, Mitsubishi Chemical corporation and SABIC, among others.

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CONCLUSION:

The increasing demand for BDO and its derivatives such as tetrahydrofuran (THF) polybutylene terephthalate (PBT) from different industries is driving the growth of the 1,4 Butanediol market. There is volatility in the price of traditional fossil-fuel based raw materials and the change in preference in the direction of environment friendly goods to reduce the carbon footprint. Moreover, research into the production of biobased BDO is rising, which is likely to provide prospects for the growth of the market in the upcoming years.

FAQ:

What are the different segments of 1, 4 butanediol market based on end-user industry?

On the basis of end use industries, the market has been divided into different segments like automotive, pharmaceutical, leather, electrical and electronics, agricultural chemicals & others.

Which region dominates the 1,4 butanediol market globally?

1, 4 butanediol market has a largest share in Asia Pacific region, due to increasing demand from various industries including electronics, automotive and consumer appliances, among others. Moreover, global automakers, like Hyundai Motors, BMW and Honda are investing into the automotive industry in this region. This, in turn, would be likely to surge the demand for 1,4 butanediol.



Who are the key players in the global 1,4-butanediol market?

BASF SE (Germany), Dairen Chemical corporation (Singapore), LyondellBasell Chemicals (The Netherlands), Shanxi Sanwei Group (China), International Specialty Products (U.S.), Invista (U.S.), and Mitsubishi Chemical corporation (Japan) are some of the key players in BDO global market, among others.

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