Overview
Ethylene dichloride (EDC), also known as 1,2- dichloroethane, is a clear colorless liquid used in the manufacturing of vinyl chloride monomer (VCM) which is further polymerized to polyvinyl chloride (PVC), a major commodity thermoplastic. The properties of PVC make it an ideal construction material for pipes, fittings and flooring applications. Other PVC uses include packaging, medical, furniture and automotive applications.
VCM production by the mercury chloride catalyzed reaction of acetylene with hydrogen chloride (HCl) was the dominant route until the early 1950s. Ethylenebased routes have become more prevalent in subsequent decades. Due to technological advancement discussed in this report, acetylene routes are now seeing increased growth especially in China.
This report provides a detailed description of both ethylene and acetylene route technologies and presents an in-depth analysis of the process economics for each technology. This addresses key issues such as:
▪ What are the major technologies for ethylene dichloride and vinyl chloride monomer production and who are the licensors?
▪ What are the business considerations in building an EDC or VCM plant?
▪ What is the cost competitiveness for each of the technology routes and how regions effects investment decisions?
▪ How have historical price changes affected profitability of each technology in different parts of the world?
▪ How clean is each of the technologies and what is the carbon intensity associated with production through each technology?
▪ What are the current green developments or decarbonization efforts in the industry? And how sustainable are they?
Commercial Technologies
This report covers major commercially available EDC production technologies and both ethylene and acetylene route VCM production technologies. Main licensors included in the analysis are Westlake Vinnolit, INEOS and Johnson Matthey along with generic assessment for both EDC and VCM productions.
Process Economics
Detailed cost of production estimates for the major EDC and VCM processes are presented in this report under a typical world scale design basis. Regional production economics and investment analysis are provided for United States, Western Europe, China and Middle East.
Commercial Overview
Global VCM capacity reached 53.6 million tons per year in 2022, an increase of 2.4 million tons per year compared to 2021. The proportion of VCM produced from acetylene globally has started to decrease as there has been greater focus on ethylene-based developments and investments in China.
In the longer term, capacity development will continue to be driven principally by China. Developments in other regions are expected to be limited over the near term due to the significant capacity additions in China.

1 Executive Summary 1

1.1 Introduction 1

1.2 Business Developments 2

1.3 Strategic and Business Considerations 3

1.4 Commercial Technology 3

1.5 Developing Technologies 5

      1.5.1 Green Development and Biotechnology 5

      1.5.2 Inovyn - BIOVYN~(TM) 5

      1.5.3 Westlake Vinnolit - GreenVin~R 5

      1.5.4 Vynova - VynoEcoSolutions 5

      1.5.5 Unipar Indupa - Bioethanol 6

      1.5.6 Depolymerization of Polyvinyl Chloride (PVC) 6

1.6 Carbon Intensity Analysis 6

      1.6.1 Carbon Intensity Accounting 6

      1.6.2 The United States 6

      1.6.3 Western Europe 8

      1.6.4 Middle East 9

      1.6.5 China 10

1.7 Process Economics 11

      1.7.1 Regional Cost Competitiveness Summary 12

1.8 Global Capacity 14

      1.8.1 Ethylene Dichloride (EDC) 14

      1.8.2 Vinyl Chloride Monomer (VCM) 15

2 Introduction 16

2.1 Value Chain and Technology Routes 16

2.2 Business Developments 18

2.3 Technology Holders and Licensing Status 19

2.4 Strategic and Business Considerations 20

2.5 Physical and Thermodynamic Properties 21

2.6 Specifications 22

2.7 Health Hazards 23

      2.7.1 Safety 23

      2.7.2 Health Risks 24

      2.7.3 Environmental Risks 24

2.8 Storage and Transportation 25

3 Commercial Technologies 26

3.1 Acetylene-Based VCM 26

      3.1.1 Acetylene via the Calcium Carbide Process 28

      3.1.2 VCM via the Acetylene Process 35

      3.1.3 Developments in Acetylene-based VCM Technology 37

3.2 DAVY~(TM) VCM Process 39

      3.2.1 Process Description 39

3.3 Ethylene-based VCM 42

      3.3.1 Chemistry 42

      3.3.2 Process Description 44

3.4 INEOS Process 53

      3.4.1 Technology Features 53

      3.4.2 Process Description 53

3.5 LG Chem Process 59

      3.5.1 Process Description 59

      3.5.2 Catalyst Developments 61

3.6 OxyChem 61

      3.6.1 Process Description 62

3.7 Tosoh Corporation 66

      3.7.1 Process Description 66

3.8 Westlake Vinnolit 71

      3.8.1 Technology Features 71

      3.8.2 Process Description 71

4 Developing Technologies 78

4.1 Green Development and Biotechnology 78

      4.1.1 Inovyn - BIOVYN~(TM) 78

      4.1.2 Westlake Vinnolit - GreenVin~R 78

      4.1.3 Vynova - VynoEcoSolutions 79

      4.1.4 Unipar Indupa - Bioethanol 79

      4.1.5 Depolymerization of Polyvinyl Chloride (PVC) 80

4.2 Ethanol-based EDC Processes 81

      4.2.1 Ethylene Dichloride from Ethanol 83

      4.2.2 Ethylene from Ethanol 83

4.3 Ethane-based Process for VCM 87

      4.3.1 Chemistry 89

5 Carbon Intensity 96

5.1 Carbon Intensity Accounting 96

5.2 The United States 97

5.3 Western Europe 98

5.4 Middle East 99

5.5 China 100

5.6 Routes to Decarbonization for the VCM Industry 101

      5.6.1 Renewable Energy 101

      5.6.2 Scope 3: Bio-based and Green Chlorine 101

      5.6.3 Waste Reduction and Recycling 101

6 Process Economics 103

6.1 Cost Basis 103

6.2 Investment Basis 103

6.3 Pricing Basis 103

6.4 Cost of Production Basis 105

6.5 Capacity 106

6.6 Process Cost Competitiveness 108

      6.6.1 United States Gulf Coast (USGC) 109

      6.6.2 Western Europe 122

      6.6.3 China 135

      6.6.4 Middle East 148

      6.6.5 Regional Cost Competitiveness Summary 160

      6.6.6 Cost of Producing “Green” VCM 163

6.7 Chlor Alkali Integrated versus Non-chlor Alkali Integrated Plant in the USGC 167

6.8 Historical Cost Analysis - Vinyl Chloride Monomer 169

7 Commercial Applications 171

8 Global Capacity 172

8.1 Ethylene Dichloride (EDC) 172

      8.1.1 Global 172

      8.1.2 North America 173

      8.1.3 South America 174

      8.1.4 Western Europe 175

      8.1.5 Central Europe 176

      8.1.6 Eastern Europe 177

      8.1.7 Middle East 178

      8.1.8 Africa 178

      8.1.9 Asia Pacific 179

8.2 Vinyl Chloride Monomer (VCM) 183

      8.2.1 Global 183

      8.2.2 North America 184

      8.2.3 South America 185

      8.2.4 Western Europe 186

      8.2.5 Central Europe 187

      8.2.6 Eastern Europe 188

      8.2.7 Middle East 189

      8.2.8 Africa 190

      8.2.9 Asia Pacific 190

Appendices

A Definitions of Capital Cost Terms Used in Process Economics 199

B Definitions of Operating Cost Terms Used in Process Economics 203

C TECH Program Title Index (2013-2023) 206

D References 209

Figures

Figure 1 Vinyl Chloride Monomer Value Chain 2

Figure 2 Global Vinyl Chloride Monomer Capacity by Feedstock 3

Figure 3 RSB Audited Process 5

Figure 4 Vinyl Chloride Monomer Production Technologies Carbon Intesity Comparison, United States 7

Figure 5 Vinyl Chloride Monomer Production Technologies Carbon Intesity Comparison, Western Europe 8

Figure 6 Vinyl Chloride Monomer Production Technologies Carbon Intesity Comparison, Middle East 9

Figure 7 Vinyl Chloride Monomer Production Technologies Carbon Intesity Comparison, China 10

Figure 8 Regional Costs of Production for Ethylene Dichloride Processes 12

Figure 9 Regional Cost Competitiveness Vinyl Chloride Monomer Processes 13

Figure 10 Global EDC Capacity Share by Region in 2022 14

Figure 11 Global VCM Capacity Share by Region in 2022 15

Figure 12 Vinyl Chloride Monomer Value Chain 17

Figure 13 Global Vinyl Chloride Monomer Capacity by Feedstock 18

Figure 14 Average VCM Plant Capacity by Country - 2023 27

Figure 15 Number of Vinyl Chloride Monomer Plants by Country - 2023 28

Figure 16 Calcium Carbide Acetylene Process 32

Figure 17 VCM via Acetylene Process 36

Figure 18 VCM via Davy VCM Process 41

Figure 19 Balanced VCM Process via Direct Chlorination and Oxychlorination Process 45

Figure 20 INEOS Balanced VCM Process 54

Figure 21 LG Chem Balanced VCM Process 60

Figure 22 OxyChem EDC and VCM Production Unit 63

Figure 23 OxyChem VCM Recovery Unit 64

Figure 24 Tosoh Fixed Bed Oxychlorination Unit 67

Figure 25 Tosoh EDC Reactor 69

Figure 26 Westlake Vinnolit Balanced VCM Process 72

Figure 27 Vinnolit VCM Process Direct Chlorination: Compact Natural Circulation (CNC) 74

Figure 28 RSB Audited Process 78

Figure 29 Block Flow Diagram for the Production of Bioethanol from Cane Juice or Molasses 82

Figure 30 Bioethanol to Green Ethylene 85

Figure 31 Ethylene from Ethanol 86

Figure 32 Comparison of Ethylene and Ethane VCM Processes 88

Figure 33 Reactions in EVC Oxychlorination and Hydrogenation Reactors 90

Figure 34 EVC’s Novel Concept of Catalytic Oxychlorination of Ethane to VCM 90

Figure 35 EVC Ethane to VCM Process 92

Figure 36 EVC Ethane to VCM Process: Chlorination, Purification and Hydrogenation Section 93

Figure 37 Vinyl Chloride Monomer Production Technologies Carbon Intesity Comparison, United States 97

Figure 38 Vinyl Chloride Monomer Production Technologies Carbon Intesity Comparison, Western Europe 98

Figure 39 Vinyl Chloride Monomer Production Technologies Carbon Intesity Comparison, Middle East 99

Figure 40 Vinyl Chloride Monomer Production Technologies Carbon Intesity Comparison, China 100

Figure 41 Overview of Typical Cost of Production 105

Figure 42 Evolution of Average Chinese Vinyl Chloride Monomer Plant Capacity 108

Figure 43 Overview of Ethylene Dichloride Production Processes, USGC 110

Figure 44 Overview of VCM Production Processes, USGC 112

Figure 45 Overview of Ethylene Dichloride Production Processes, WE 123

Figure 46 Overview of Vinyl Chloride Monomer Production Processes, WE 125

Figure 47 Overview of Ethylene Dichloride Production Processes, China 136

Figure 48 Overview of Vinyl Chloride Monomer Production Processes, China 138

Figure 49 Overview of Ethylene Dichloride Production Processes, Middle East 148

Figure 50 Overview of Vinyl Chloride Monomer Production Processes, Middle East 150

Figure 51 Regional Costs of Production for Ethylene Dichloride Processes 161

Figure 52 Regional Cost Competitiveness Vinyl Chloride Monomer Processes 162

Figure 53 Comparison of Green VCM against Conventional VCM, China 164

Figure 54 Cost of Production of Integrated and Non-Integrated EDC Processes, USGC 168

Figure 55 Cost of Production of Integrated and Non-Integrated VCM Processes, USGC 168

Figure 56 VCM Production Process Cash Costs versus Ethylene and VCM Price Trends 169

Figure 57 Global EDC Capacity Share by Region in 2022 172

Figure 58 Global VCM Capacity Share by Region in 2022 183

Tables

Table 1 EDC and VCM Licensors and Technology Holders 4

Table 2 EDC and VCM Licensors and Technology Holders 19

Table 3 Key Physical and Thermodynamic Properties of EDC and VCM 21

Table 4 Commercial Specifications for EDC 22

Table 5 Commercial Specifications for VCM 22

Table 6 Analysis of Illinois No. 6 Coal, as Received 29

Table 7 Limestone Feed Composition, Dry Basis 29

Table 8 Lime Feed Composition to Carbide Furnace, Dry Basis 30

Table 9 Coke Composition, Dry Basis 31

Table 10 Purified Coke Oven Gas, Dry Basis* 31

Table 11 Carbide Furnace Offgas, Dry Basis* 33

Table 12 Impurities in Carbide Acetylene 34

Table 13 Activity Comparison of Various Catalysts in LG Chem’s EDC Process 61

Table 14 Vinyl Chloride Monomer Production Technologies Carbon Intensity Comparison, United States 97

Table 15 Vinyl Chloride Monomer Production Technologies Carbon Intensity Comparison, Western Europe 98

Table 16 Vinyl Chloride Monomer Production Technologies Carbon Intensity Comparison, Middle East 99

Table 17 Vinyl Chloride Monomer Production Technologies Carbon Intensity Comparison, China 100

Table 18 Carbon Intensity Improvements from Renewable Energy, United States 101

Table 19 Raw Materials, Products, Utilities, and Labor Costs 104

Table 20 Average Capacity of VCM Plants by Country/Region 106

Table 21 Number of VCM Plants by Country/Region 106

Table 22 Summary of Ethylene Dichloride Cost of Production, USGC 110

Table 23 Summary of Vinyl Chloride Monomer Cost of Production, USGC 112

Table 24 Cost of Production Estimates for: Ethylene Dichloride Process: Generic Direct Chlorination, USGC 113

Table 25 Cost of Production Estimates for Ethylene Dichloride Process: INEOS Direct Chlorination, USGC 114

Table 26 Cost of Production Estimates for Ethylene Dichloride Process: Westlake Vinnolit Compact Natural Circulation (CNC), USGC 115

Table 27 Cost of Production Estimates for Ethylene Dichloride Process: Westlake Vinnolit Oxychlorination, USGC 116

Table 28 Cost of Production Estimates for Vinyl Chloride Monomer Process: Generic Acetylene Based Process, USGC 117

Table 29 Cost of Production Estimates for Vinyl Chloride Monomer Process: Johnson Matthey DAVY VCM, USGC 118

Table 30 Cost of Production Estimates for Vinyl Chloride Monomer Process: Generic Balanced VCM, USGC 119

Table 31 Cost of Production Estimates for Vinyl Chloride Monomer Process: INEOS Balanced VCM, USGC 120

Table 32 Cost of Production Estimates for Vinyl Chloride Monomer Process: Westlake Vinnolit Balanced VCM, USGC 121

Table 33 Summary of Ethylene Dichloride Cost of Production, Western Europe 123

Table 34 Summary of Vinyl Chloride Monomer Cost of Production, WE 125

Table 35 Cost of Production Estimates for: Ethylene Dichloride Process: Generic Direct Chlorination, Western Europe 126

Table 36 Cost of Production Estimates for: Ethylene Dichloride Process: INEOS Direct Chlorination, Western Europe 127

Table 37 Cost of Production Estimates for: Ethylene Dichloride Process: Westlake Vinnolit Compact Natural Circulation (CNC), Western Europe 128

Table 38 Cost of Production Estimates for: Ethylene Dichloride Process: Westlake Vinnolit Oxychlorination, Western Europe 129

Table 39 Cost of Production Estimates for: Vinyl Chloride Monomer Process: Generic Acetylene Based Process, Western Europe 130

Table 40 Cost of Production Estimates for: Vinyl Chloride Monomer Process: Johnson Matthey DAVY VCM, Western Europe 131

Table 41 Cost of Production Estimates for: Vinyl Chloride Monomer Process: Generic Balanced VCM, Western Europe 132

Table 42 Cost of Production Estimates for: Vinyl Chloride Monomer Process: INEOS Balanced VCM, Western Europe 133

Table 43 Cost of Production Estimates for: Vinyl Chloride Monomer Process: Westlake Vinnolit Balanced VCM, Western Europe 134

Table 44 Summary of Ethylene Dichloride Cost of Production, China 136

Table 45 Summary of Vinyl Chloride Monomer Cost of Production, China 138

Table 46 Cost of Production Estimates for: Ethylene Dichloride Process: Generic Direct Chlorination, China 139

Table 47 Cost of Production Estimates for: Ethylene Dichloride Process: INEOS Direct Chlorination, China 140

Table 48 Cost of Production Estimates for: Ethylene Dichloride Process: Westlake Vinnolit Compact Natural Circulation (CNC), China 141

Table 49 Cost of Production Estimates for: Ethylene Dichloride Process: Westlake Vinnolit Oxychlorination, China 142

Table 50 Cost of Production Estimates for: Vinyl Chloride Monomer Process: Generic Acetylene Based Process, China 143

Table 51 Cost of Production Estimates for: Vinyl Chloride Monomer Process: Johnson Matthey DAVY VCM, China 144

Table 52 Cost of Production Estimates for: Vinyl Chloride Monomer Process: Generic Balanced VCM Process, China 145

Table 53 Cost of Production Estimates for: Vinyl Chloride Monomer Process: INEOS Balanced VCM, China 146

Table 54 Cost of Production Estimates for: Vinyl Chloride Monomer Process: Westlake Vinnolit Balanced VCM, China 147

Table 55 Summary of Ethylene Dichloride Cost of Production, Middle East 149

Table 56 Summary of Vinyl Chloride Monomer Cost of Production, Middle East 150

Table 57 Cost of Production Estimates for: Ethylene Dichloride Process: Generic Direct Chlorination, Middle East 151

Table 58 Cost of Production Estimates for: Ethylene Dichloride Process: INEOS Direct Chlorination, Middle East 152

Table 59 Cost of Production Estimates for: Ethylene Dichloride Process: Westlake Vinnolit Compact Natural Circulation (CNC), Middle East 153

Table 60 Cost of Production Estimates for: Ethylene Dichloride Process: Westlake Vinnolit Oxychlorination, Middle East 154

Table 61 Cost of Production Estimates for: Vinyl Chloride Monomer Process: Generic Acetylene Based Process, Middle East 155

Table 62 Cost of Production Estimates for: Vinyl Chloride Monomer Process: Johnson Matthey DAVY VCM, Middle East 156

Table 63 Cost of Production Estimates for: Vinyl Chloride Monomer Process: Generic Balanced VCM Process, Middle East 157

Table 64 Cost of Production Estimates for: Vinyl Chloride Monomer Process: INEOS Balanced VCM, Middle East 158

Table 65 Cost of Production Estimates for: Vinyl Chloride Monomer Process: Westlake Vinnolit Balanced VCM, Middle East 159

Table 66 Cost of Production Estimate for Bioethylene| Process: Ethanol Dehydration (Fixed-Bed), China Q12023 165

Table 67 Cost of Production Estimate for Vinyl Chloride Generic Balanced VCM Process from Bioethanol-based Ethylene, China Q1 2023 166

Table 68 United States EDC Capacity, 2022 173

Table 69 South America EDC Capacity, 2022 174

Table 70 Western Europe EDC Capacity, 2022 175

Table 71 Central Europe EDC Capacity, 2022 176

Table 72 Eastern Europe EDC Capacity, 2022 177

Table 73 Middle East EDC Capacity, 2022 178

Table 74 Africa EDC Capacity, 2022 178

Table 75 Asia Pacific EDC Capacity, 2022 181

Table 76 North America VCM Capacity, 2022 184

Table 77 South America VCM Capacity, 2022 185

Table 78 Western Europe VCM Capacity, 2022 186

Table 79 Central Europe VCM Capacity, 2022 187

Table 80 Eastern Europe VCM Capacity, 2022 188

Table 81 Middle East VCM Capacity, 2022 189

Table 82 Africa VCM Capacity, 2022 190

Table 83 Asia Pacific VCM Capacity, 2022 194

中国化工信息中心