Commodity Production Costs Report
Propylene Oxide Production from Propylene and Isobutane
Propylene Oxide Operating Costs & Plant Construction Costs
This report examines the costs related to Propylene Oxide (PO) production from chemical grade (CG) propylene and isobutane in the United States. The process is similar to LyondellBasell process. In this process, isobutane is oxidized to produce t-butyl hydroperoxide, which reacts with propylene to produce PO.
The report provides a comprehensive study of Propylene Oxide production and related Propylene Oxide production cost, covering three key aspects: a complete description of the Propylene Oxide production process examined; an in-depth analysis of the related Propylene Oxide plant capital cost (Capex); and an evaluation of the respective Propylene Oxide plant operating costs (Opex).
The Propylene Oxide production process description includes a block flow diagram (BFD), an overview of the industrial site installations, detailing both the process unit and the necessary infrastructure, process consumption figures and comprehensive process flow diagrams (PFD). The Propylene Oxide plant capital cost analysis breaks down the Capex by plant cost (i.e., ISBL, OSBL and Contingency); owner's cost; working capital; and costs incurred during industrial plant commissioning and start-up. The Propylene Oxide plant operating costs analysis covers operating expenses, including variable costs like raw materials and utilities, and fixed costs such as maintenance, labor, and depreciation.
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The process under analysis comprises two major sections: (1) Reactions; and (2) Purification.
Reactions. Isobutane is reacted with oxygen yielding a solution of tertiary butyl hydroperoxide (TBHP) and tertiary butyl alcohol (TBA) by-product. While the reaction is exothermic, reaction conditions are regulated such that the reaction mixture is constantly boiling, so that reaction heat is removed by reaction media vaporization. Accordingly, the oxidation product - a vapor mixture - is removed from the reactor and cooled, in such a way that TBHP, TBA, unreacted isobutane and other readily condensable components are condensed and partially routed to an isobutane recovery step and then to epoxidation reaction system. The second reaction, epoxidation, occurs by mixing the peroxide solution in TBA with propylene. The reaction is carried out in the liquid phase, in the presence of a homogeneous molybdenum catalyst, yielding Propylene Oxide (PO). As in the peroxidation, the heat of epoxidation reaction is removed by the medium vaporization. The epoxidation product is then separated into a distillate stream containing unreacted propylene, propylene oxide and TBA, and a heavy organic stream, comprising high boiling by-products and dissolved molybdenum catalyst. The catalyst-rich stream is submitted to a thermal treatment before being recycled to epoxidation.
Purification. The distillate from epoxidation reaction system is sent to the propylene column, which strips off propylene, propane and residual light ends from the epoxidation effluent stream. The C3 stream is further treated in a column for recovery of a propylene-rich stream that can be recycled to the epoxidation. The C3-free epoxidation product, in turn, is fed to the TBA recovery, where a crude PO stream is obtained after a TBA-rich stream is separated, treated for impurities removal, and recycled to the epoxidation reaction. The crude PO stream is further purified by means of an extractive distillation process followed by another distillation column, from which high-purity Propylene Oxide is obtained as overheads product.
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Content Highlights
Plant Capital Cost Summary
Summary outlining the capital cost required for building the Propylene Oxide production plant examined.
Plant Capital Cost Details
Detailing of fixed capital (ISBL, OSBL & Owner’s Cost), working capital and additional capital requirements.
Plant Cost Breakdowns
Breakdown of Propylene Oxide process unit (ISBL) costs and infrastructure (OSBL) costs; plant cost breakdown per discipline.
Operating Costs Summary
Summary presenting the operating variable costs and the total operating cost of the Propylene Oxide production plant studied.
Operating Cost Details
Detailing of utilities costs, operating fixed costs and depreciation.
Plant Capacity Assessment
Comparative analysis of capital investment and operating costs for different Propylene Oxide plant capacities.
Production Process Information
Block Flow Diagram, descriptions of process unit (ISBL) and site infrastructure (OSBL).
Process Consumptions
Raw materials and utilities consumption figures, by-products credits, labor requirements
Process Diagrams
Process flow diagrams (PFD), equipment list and industrial site configuration
Other Propylene Oxide Production Cost Reports

Propylene Oxide Production from Propylene and Ethylbenzene
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This report analyses the economics of Propylene Oxide (PO) production from chemical grade (CG) propylene and cumene in the United States, similar to Sumitomo process. In the process under analysis, cumene is oxidized to cumene hydroperoxide, which in then reacted with propylene to yield PO.
Details: 450 kta United States-based plant | Q3 2024 | 107 pages | Issue C | From $1,199 USD

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This report presents the economics of Propylene Oxide (PO) production from polymer grade (PG) propylene and hydrogen peroxide in the United States, similar to the hydrogen peroxide to propylene oxide (HPPO) process jointly developed by Evonik and Uhde.
Details: 450 kta United States-based plant | Q3 2024 | 107 pages | Issue D | From $1,199 USD
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