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Why Does Grease Turn
White When It Cools?
You're in the kitchen and just finished
frying your favorite food. You grab the used
coffee can on the counter to discard the hot
oil. When you open the lid, you notice that
the congealed grease is thick, not thin, and
not the yellowish-gold color of the frying
oil you put in before, but whitish, the
color of glazed doughnut frosting. Why is
the fat more transparent when it is an oil
than when it is grease?
When oil cools, it changes its physical
state, just as transparent water changes
into more opaque ice when it freezes.
Technically, when the grease cools, it
changes from a liquid to a solid. Because of
its molecular structure, it cannot quite
form a crystalline solid. Instead, it forms
"amorphous regions" and "partial crystals."
These irregular areas scatter white light
and make the grease appear cloudy.
If grease were to solidify into a pure
crystal, it would be much clearer, maybe
like glass. Interestingly, paraffins like
candle wax behave just like grease: they are
clear in the liquid form and cloudy in the
solid form. You have no doubt noticed this
when your candle burns as the melted wax is
clear but the solid candle is opaque.
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Global PVC Market
Looks Fairly Stable, but Faces Some Issues
Overall supply of Vinyl chloride monomer (VCM)
and Polyvinyl chloride (PVC) should keep up
with demand through 2020, according to
Nexant ChemSystems. Global supply and demand
of VCM are predicted to reach 55 million
tonnes in 2020, up from 38 million tonnes in
2007, while supply and demand of PVC will
increase from 35 million tonnes in 2007 to
52 million tonnes in 2020. Production is
shifting, though, with Asia and the Middle
East becoming exporters of these products
rather than importers of material from the
U.S. Crude prices will affect geographic
regions differently, as well. As a result,
the supply/demand relationship will not
always be in balance for individual areas of
the world.
In Europe, PVC producers and consumers
continue to await legislation restricting
the use of the material as non-governmental
organizations (NGOs) call for the phase out
of PVC in various applications. No official
policy has been issued by the European
Union, and the continued uncertainty is
impacting the market. In China, the use of
coal rather than Ethylene as a feedstock for
PVC production could have a significant
effect. The low cost of coal in China,
compared to crude oil prices, may lead to
very competitive VCM production and could
make China the world's low cost supplier of
PVC. The Chinese government is supporting
such production facilities in order to
reduce the country's dependence on foreign
oil.
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Iran Moves Forward
with Petrochemical Projects Despite
Sanctions
Despite the withdrawal by western nations of
investment monies and raw material supplies
in response to economic sanctions placed
against Iran for its continued nuclear
energy programs, the country continues to
move forward with plans for refineries and
downstream petrochemical plants. Iran's
large oil reserves are a large attraction to
countries not interested in the sanctions.
Partners such as Venezuela and China are
providing both investment dollars and
process technologies for varying facilities
including plants to produce Methanol, Acetic
acid, Vinyl acetate monomer (VAM), Polyvinyl
alcohol (PVA), Phenol and Acetone.
Iran's private sector has developed an
interest in the industry in response to the
shortage of western participation. Projects
that are proposed or underway include units
to produce Carbon black, Ethylene propylene
diene monomer (EPDM), Polystyrene (PS),
Phthalic anhydride (PA), Fatty acid and
Glycerine.
NPC is expected to start up new olefins and
aromatics plants in Iran in 2007 and garner
even greater interest from domestic
investors as a result. According to Iran's
Minister of Petroleum, the country's output
of petrochemicals will total $20 billion
(Euro 15.6 billion) when all planned
projects come on stream. By 2015 he said
Iran plans to produce 12 million tonnes of
Ethylene, 10 million tonnes of polymer, 8.5
million tonnes of Urea, 7.5 million tonnes
of Methanol and 4 million tonnes of
aromatics.
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Saltigo reported that its percent of raw materials
sourced from Asia has increased dramatically since
2004, when nearly 90 percent of purchases were made
in Europe, and will rise significantly in 2007 as
well. The company does not use suppliers from the
region for sensitive projects, but does source
catalog materials through local organizations it has
developed in Shanghai and Mumbai, and obtains some
key intermediates from secondary suppliers. Asian
sourcing now accounts for more than 20 percent of
Saltigo's purchasing activity and is expected to
increase to over 50 percent in 2007. Cost savings
have been measured at greater than 20 percent. The
one downside, according to a key Saltigo official,
is that the company must carefully oversee its Asian
suppliers, which carries additional costs. Finding
qualified custom manufacturers for projects with
intellectual property issues remains a challenge.
BASF announced that it has finished
integrating the operations of Engelhard into
its global businesses. The company expects
to achieve cost savings from the acquisition
of $200 million (Euro 160 million) by 2010,
with nearly 50 percent realized in 2007 and
80 percent by 2008. BASF will eliminate 800
jobs, most of which are in the U.S. The
company headquarters will remain in Florham
Park, New Jersey and the catalysts division
will be located in Iselin, New Jersey.
Akzo Nobel will spin off its Organon
pharmaceutical division in the first quarter
of 2007, most likely in the form of an
initial public offering (IPO). The
divestment will take place despite the
withdrawal of Pfizer from a collaboration on
the drug Asenapine. Phase III results for
the treatment for bipolar disorder and
schizophrenia were mixed. If the right price
can be found, Akzo will use the proceeds
from the IPO to make acquisitions in its
chemicals and coatings businesses.
According to Nexant analyst Andrew Spiers,
rising demand in Asia, higher oil prices,
and increasing investments in facilities
have led to large capacity expansions in the
Middle East. He predicts that total
petrochemical capacity in the region will
double in the next five years, growing by 19
million tonnes/year. Competition between the
two regions may increase though, because
Middle Eastern governments are requiring
companies to have plans for diversification
into specialty products or plastics
processing before they are allowed to invest
in the industry.
Argentina's chemical production rose 5.9
percent in September 2006 as compared to the
same month in 2005. It was also up 4.5
percent over production levels in August of
this year. Agrochemicals experienced the
largest growth compared to last year, with
pharmaceuticals and personal care chemicals
also exhibiting significant increases. Basic
petrochemicals experienced a slight decline,
however.
More than 18,000 chemistry jobs were added
in the U.S. between October 2005 and October
2006, an increase of 2 percent. The
Department of Labor reported that 2000 jobs
were added in October 2006 alone, bringing
the total to 897,800 a 3 year high. Overall
39,000 jobs were lost in the U.S.
manufacturing sector that month out of a
total of 14.2 million workers. On the
positive side, the unemployment rate for the
entire U.S. economy declined to 4.4 percent,
the lowest since May 2001. 
The Indian government is creating Special
Economic Zones (SEZ) to attract foreign
investment in oil refining, petrochemical
and textiles production facilities. The
country's leading corporations (like
Reliance) have invested billions of dollars
in infrastructure development on nearly
12,500 acres of land set aside for the SEZ.
The SEZ are anticipated to increase India's
competitive export position in these
industries. Some citizens' groups, however,
are concerned that the SEZs will be exempt
from government oversight. SEZ are not, for
example, required to conduct environmental
impact assessments or hold environmental
public hearings. In addition, some farmers
have complained that they have been
pressured into selling their land.
Access to oil and gas reserves and
government policies designed to spur
economic growth could lead Vietnam to become
a major petrochemical supplier in Asia,
according to Nexant ChemSystems. The
country's bureaucracy and slow government
response will be a limitation, however, as
projects are likely to be delayed.
Despite continued weak demand, prices for
Isopropanol (IPA) in China rose for the
first time in four weeks. Prices rose a
little over 2 percent, but remained
significantly lower than peak values set in
August 2006. The price decline has been
attributed to lower downstream demand and
strong inventory levels.
Lonza purchased Genentech's mammalian
biopharmaceutical plant in Porrino, Spain
for $150 million (Euro 117 million). Under a
short term contract, Lonza will continue to
produce Avastin for Genentech while using
some capacity for manufacturing its own
products. The deal also includes the
construction by Lonza of an 80,000 liter
large-scale mammalian biopharmaceutical
manufacturing facility in Singapore.
Genentech has been granted an exclusive
option to acquire the plant between 2007 and
2012 for $290 million, plus $70 million
contingent on performance milestones.
Separately, Lonza will build another similar
plant in Singapore for its own use that will
begin operations in 2011.
Democratic control of the U.S. Congress
could have serious implications for the
chemical industry. One major issue is the
possible introduction of inherently safety
technology (IST), which involves the
substitution of less hazardous materials and
the use of lower process temperatures and
pressures. Democrats attempted to
incorporate an IST requirement in recent
chemical plant site security legislation,
but were unsuccessful. The industry has
committed to continuous process improvement,
which includes addressing safety and
security issues. Government control over
process development would not be appropriate
or reasonable.