Material Insights · Understanding the Material World

Propylene oxide: Feedstocks

Why the choice of oxidant decides the cost

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.

PO is made from propylene (from crude oil or propane) plus an oxidant: chlorine (from salt), hydrogen peroxide (from natural gas-derived hydrogen) or a hydroperoxide from ethylbenzene, isobutane or cumene. The route sets co-product exposure and cost.

Inputs per tonne

InputQuantity per tonneRoleShare of costSource
Oil Crude oilabout 0.75-0.8 t per t PO (indicative)main carbon sourceabout 50-60% of cash cost (indicative)indicative
Gas Natural gasabout 0.6 t H2O2 (100%) per t PO in HPPO (indicative)oxidantabout 20-25% in HPPO (indicative)indicative
NaCl Saltabout 1.4 t chlorine per t PO in chlorohydrin (indicative)oxidant routeabout 20-30% in chlorohydrin (indicative)indicative
CaO Limeabout 1 t per t PO (indicative)dehydrochlorinationsmallindicative

Who is low-cost, and why

Large integrated HPPO and PO/SM units in China and the Gulf are low cost. Small chlorohydrin units and older European assets are high cost, especially when environmental compliance is counted.

Raw materials on the commodity table

Oil Crude oil

What it is made into

ProductNote
PU Polyurethanes (MDI, TDI, polyols)about 65% via polyols (indicative)
UPR Unsaturated polyester resinsvia propylene glycol
SM Styreneco-product of PO/SM
MTBE MTBEfrom PO/TBA co-product