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Working Paper

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The demand for dodecanedioic acid (DDDA) is steadily increasing each year with demand expected to exceed 90.4 kilotons per month in 2023.1.1 DDDA is an intermediate chemical used in a variety of end products. Thus, the increase in DDDA demand can largely be attributed to increasing demand for manufacturing nylon, paints, adhesives, and powder coatings. Regionally, Asia Pacific has been observing the fastest growth of all regions at over 6% CAGR.1.2 The robust manufacturing base for nylon, along with a growing automotive industry in India and China, will propel DDDA growth into the next decade. The current synthesis process for DDDA relies on a multi step butadiene process. This pathway has large price volatility and supply/demand imbalances due to using a petrochemical feedstock. This proposed process outlines a biologically-sourced alternative to conventional DDDA production, and would be located in Malaysia to access regional organic feedstocks. The proposed DDDA plant is designed to produce 14,000 metric tons per year of DDDA using palm oil, and would be strategically located near rapidly expanding Asia Pacific markets. This project has an estimated IRR of 24.12%, ROI of 18.20%, and a NPV of approximately $54.1 MM.



Date Posted: 04 May 2018