# Fatty alcohols: Production route

Natural versus synthetic: two routes to almost the same molecule

Source page: https://www.materialinsights.org/chemicals/fatty_alcohols/routes/

What this tab covers How it is made: the main production routes or, for product families, the main product types and technologies, compared on share of supply, inputs per tonne, plant scale, yield, co-products and unit cost.

Two families compete. Oleochemical (natural) alcohols come from hydrogenating methyl esters or fatty acids of palm kernel and coconut oil, giving even-numbered linear chains. Synthetic alcohols come from ethylene: Ziegler chain growth gives linear alcohols similar to natural ones, while oxo (hydroformylation) of olefins gives partly branched alcohols. Which route wins depends on the lauric oil price against ethylene: when palm kernel oil spikes, synthetic producers gain share.

#### Routes compared

| Route | Share of supply | Inputs per tonne | Typical scale | Yield | Co-products | Unit cost |
|---|---|---|---|---|---|---|
| **Methyl ester hydrogenation (oleo)** | majority of oleo alcohol, about two-thirds of world capacity together with acid hydrogenation (indicative, basis: GlobalData company shares) | about 1.1-1.2 t lauric oil, about 0.02-0.03 t hydrogen per t alcohol (indicative) | 60-200 kt a year (Apical Dumai 130 kt, Unilever Sei Mangkei 120 kt, 2025) | high on chain (indicative) | glycerine about 0.1 t per t oil; C8-C10 and C16-C18 co-cuts | lauric oil is 70-80% of cost (indicative); fatty alcohol about $2,500-3,000/t in 2025-26 |
| **Fatty acid hydrogenation (oleo)** | smaller share of oleo alcohol (indicative) | about 1.1 t fatty acids per t (indicative) | 30-100 kt a year | high | water | similar to ester route (indicative) |
| **Ziegler alcohols (synthetic, linear)** | part of Sasol's 14% share (indicative) | about 1 t ethylene per t alcohol plus aluminium (indicative) | 100-300 kt a year | broad chain distribution | alumina (high-purity) | tracks ethylene (indicative) |
| **Oxo and SHOP alcohols (synthetic, partly branched)** | Shell 11% plus part of Sasol (indicative) | about 0.9 t olefins and syngas per t (indicative) | 100-500 kt a year | high | heavy ends | tracks ethylene and gas (indicative) |

#### How each route works
**Methyl ester hydrogenation (oleo)**

Palm kernel or coconut oil is converted to methyl esters, fractionated, then hydrogenated in fixed-bed reactors; methanol is recycled.

renewable carbon; exposed to lauric oil swings and deforestation risk
 GlobalData presentation, Fedepalma International Conference, Aug 2025; surfactants tile; indicative **Fatty acid hydrogenation (oleo)**

Distilled fatty acids are hydrogenated directly, often in slurry reactors.

uses split acids from integrated plants; harsher catalyst conditions
 indicative **Ziegler alcohols (synthetic, linear)**

Ethylene grows chains on triethylaluminium; oxidation and hydrolysis give linear even-numbered alcohols (Sasol Lake Charles, indicative).

independent of palm; fossil carbon
 GlobalData presentation, Fedepalma International Conference, Aug 2025; indicative **Oxo and SHOP alcohols (synthetic, partly branched)**

Linear olefins (from Shell's SHOP process or Fischer-Tropsch) are hydroformylated with syngas to detergent-range alcohols (Shell Neodol, Sasol, indicative).

low cost in the US Gulf; branched chains change biodegradation and performance
 GlobalData presentation, Fedepalma International Conference, Aug 2025; indicative Unit economics are indicative ranges from the sources named; costs move with feedstock and energy prices, plant size and region.

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/fatty_alcohols/index.md)
- [Overview](https://www.materialinsights.org/chemicals/fatty_alcohols/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/fatty_alcohols/correlation/index.md)
- [Production](https://www.materialinsights.org/chemicals/fatty_alcohols/production/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/fatty_alcohols/feedstocks/index.md)
- [Cycles](https://www.materialinsights.org/chemicals/fatty_alcohols/cycles/index.md)
- [Trading](https://www.materialinsights.org/chemicals/fatty_alcohols/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/fatty_alcohols/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/fatty_alcohols/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/fatty_alcohols/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/fatty_alcohols/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/fatty_alcohols/links/index.md)