Ethylene oxide (EO) is an important chemical used in a wide range of products and industries. It is mainly utilized in the form of an intermediate to make ethylene glycol (EG), monoethylene glycol, diethylene glycol, ethanolamine, ethylene glycol ethers, and ethoxylation products of fatty alcohols and amines. All these versatile derivative products assist in the production of plastic packaging, furniture, clothing, detergents, disinfectants, textiles, automobile fluids, solvents, plasticizers, cosmetics, pharmaceutical preparations, polyurethane-based items, and other commodities. The role of ethylene oxide in medical sterilization is well known, despite ongoing research into EO toxicity.
Manufactured initially via the so-called chlorohydrin process, ethylene oxide is now commonly produced with the help of catalytic oxidation of ethylene with oxygen over a silver-based catalyst. Technological advances, such as superior Dow’s METEOR technology, improved EO-to-EG conversion by raising selectivity and reducing energy consumption in this process.
With global ethylene oxide consumption of over 31.5 million tonnes per year, the ethylene oxide market is worth a hefty USD 56 billion. Asia Pacific accounts for the largest share of ethylene oxide consumption, though, according to INEOS Oxide, the US market of ethylene oxide together with its derivatives is considered the world’s largest.
Ethylene oxide: structure of the global consumption by region
Upstream and downstream production of ethylene, ethylene oxide, and its derivatives (esp. ethylene glycol, glycol ethers, and ethanolamine) is strongly coupled, so key EO manufacturers promote different forms of integration, including via the acquisition of fully integrated facilities. For example, in May 2024, INEOS Oxide completed the acquisition of a 420k mty fully integrated ethylene oxide facility at Bayport, Texas (ethylene oxide production at this facility is coupled with ethylene glycols and glycol ethers). The seller was LyondellBasell and its Ethylene Oxide and Derivatives division. INEOS is the leading producer of ethylene oxide and derivatives in Europe. This acquisition might be viewed as strategic by INEOS owing to the cost advantageous and diversified character of the US energy sector, which favourably compares with the European troubled energy sector, according to INEOS. In addition, such diversification and cost advantages of the US energy policy allow America to make significant sustainability-related investments, though fossil fuels still dominate the US power sector.
The current issues associated with the rising energy costs and the use of fossil fuels are vital for the ethylene oxide industry, which remains highly energy intensive. In a similar vein, Sinopec, which is a major ethylene oxide producer, has become a powerhouse of sustainability efforts by implementing its low-carbon development strategy associated with photovoltaic power generation, green hydrogen, carbon capture, utilisation, and storage, as well as other large-scale sustainability projects.
Find a detailed analysis of the ethylene oxide market in the insightful research study “Ethylene Oxide (EO): 2024 World Market Outlook and Forecast up to 2033”.