Material Insights · Understanding the Material World

Fatty alcohols: Feedstocks

Coconut or ethylene: the price ratio that picks the winner

What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.

Oleo alcohols need lauric oils, which are a small and volatile market: palm kernel and coconut oil together are a fraction of palm oil supply. Synthetic alcohols need ethylene. The lauric-oil-to-ethylene price ratio decides which route is cheaper.

Inputs per tonne

InputQuantity per tonneRoleShare of costSource
PO Palm oilabout 1.1-1.2 t per t alcohol (indicative)main lauric feedstockabout 70-80% (indicative)palm_oil tile; indicative
Cnt Coconut oilabout 1.1-1.2 t per tlauric feedstock (Philippines, Indonesia)about 70-80% (indicative)coconut tile
Gas Natural gasabout 0.02-0.03 t per t (indicative)hydrogenation of esters or acidsabout 3-5% (indicative)indicative
Methanolmostly recycled; small net usetransesterificationsmallindicative
Oil Crude oilabout 1 t per t (indicative)Ziegler and oxo alcoholsabout 60-70% for synthetic producers (indicative)ethylene tile; indicative

Who is low-cost, and why

Integrated Indonesian and Malaysian producers with own palm kernel oil are lowest-cost on the oleo side; US Gulf synthetic plants on shale ethane are competitive when lauric oils are expensive. European and Indian producers buy feedstock at market and rely on specialties and proximity.

Raw materials on the commodity table

PO Palm oilCnt Coconut oil

What it is made into

ProductNote
Srf SurfactantsSLES, SLS and alcohol ethoxylates take most fatty alcohol
EO Ethylene oxideethoxylation partner
Amn Specialty amines and ethanolaminesfatty amines and quats