Evonik to build methylate plant in southeast Asia

German chemicals business Evonik plans to build a plant in southeast Asia for production of methylates, which are used predominantly as catalysts for biodiesel production.

The project is entering the basic-engineering phase, which will be completed in 2022 and during which production details will be developed. The plant's output will serve the Asia-Pacific market, Evonik said.

Evonik produces methylates, or alkoxides, at three locations — Rosario, Argentina, Mobile, the US, and Lülsdorf in Germany. The latter must be closed by the end of 2027, for regulatory reasons, and Evonik plans to secure post-2027 European supply with a "follow-up investment," it said today.

Evonik on 1 October lifted a force majeure that it issued on 9 September for deliveries of sodium methylate solution from its German plant, after it solved technical issues there. It followed a force majeure on catalysts declared by chemicals firm BASF in August, sparking concern in the European biodiesel market about supply of the products needed to manufacture biodiesel.

By Georgia Gratton