Speciality Chemicals

Water drives biocide growth

Growing demand for water is the spur to growth in the biocides industry, says Anna Ibbotson of Kline & Company

Water is experiencing growing demand as a result of population increase, changing food consumption habits and climate change. Globally, agriculture is the largest user of water, with industry and energy combined accounting for around 20% of demand. Industry uses around 10% of water withdrawal in a variety of ways, including steam generation, within heating and cooling systems and as a raw material or process solvent.

Industrial water usage may therefore seem minor when compared with the agricultural sector; however, the main issue is with water discharged from industrial processes containing pollutants varying from heavy metals to persistent organic matter. Therefore in the case of industrial water, the emphasis is on reducing the environmental and human impact of industrial water discharge. 

The global water treatment industry comprises a number of independent segments, all supporting different industries and all operating within their own market frameworks. A range of speciality water treatment chemicals, exceeding $20 billion globally, is used in the industry, including corrosion inhibitors, coagulants and flocculants and biocides, both commodity and speciality, according to figures from the Kline Group.

In industry, biocides are used in cooling water systems, for example cooling towers, condensers and compressor systems. Cooling water systems usually provide optimum conditions for microbial growth, thanks to the range of temperatures and pH, continuous aeration and an abundance of organic and inorganic nutrients and sunlight. The control of biological problems relating to cooling water needs a multi-faceted approach, including the selection of cooling tower design, proper construction materials, cooling system maintenance, the application of biocides and cleaning.

Biocides are also used in the pulp and paper industry as microbial contamination can be introduced at any stage of the paper production process. Uncontrolled biofouling not only affects the production process, but also the integrity and quality of the finished product.

Oil and gas is another industrial sector where biocides are applied. Oilfields operate through several distinct phases, all of which can be affected by unwanted microbial growth. Microbial contamination can occur during drilling of the well, preparing the well for production (stimulation), construction of the facilities and production itself.

Uncontrolled microbial growth will cause different problems and requires different treatment approaches and biocide usage patterns. Biocides help either to eradicate or to control microbial growth. They are used to maintain, treat and optimise oil or gas production from reservoirs by reducing the downtime caused by corrosion and maintenance work, but can also be used to clean well and surface equipment.

Consumption of speciality biocides in water treatment in the major geographic regions exceeds 100,000 tonnes/year. The US accounts for the lion's share, followed by Europe. The industry is served by a diverse range of speciality biocides from glutaraldehyde to quats to sodium bromide.

Figure 1 - Segmentation of speciality biocides market in Brazil (a) & Mexico (b)

Each region and water treatment segment operates under specific regulatory control. In the US, for example, the EPA is involved, whereas in Japan it is the Ministry of Health, Labour & Welfare. In Europe, suppliers of biocides face the greatest regulatory change of all, ever since the introduction of the Biocide Product Directive (BPD) in 1998.

Kline's latest biocides research has focused on the Brazilian and Mexican markets. In both countries, consumption of speciality biocides in water treatment far outweighs other applications for example industrial preservation. In Brazil water treatment accounts for around 70% of the volume share, whilst in Mexico this is slightly higher (Figure 1).

The supply of biocides in Mexico is dominated by multinational companies, with limited local manufacturing. The country is heavily reliant on imports from the neighbouring US and key countries in Europe, notably Germany, as well as China. Thor is the only multinational firm with isothiazolinone manufacturing capability in Mexico; it has a facility located in the Pedro Escobedo municipality. Buckman Laboratories and Quimikao, which is part of the Japanese Kao group, also have installed facilities producing dithiocarbamates and quats respectively.

Consumption of speciality biocides in 2010 for water treatment applications in Mexico is estimated at just over 13,000 tonnes at a 100% active level. Recreational water - a term used to refer to a variety of water types: swimming pools, spas including hot tubs and jacuzzis and water amusement parks - is the leading application on a volume basis, followed by cooling water (Figure 2).

Swimming pools and spas are the only segments in recreational water that are routinely treated with biocides. Swimming pools and spas are equipped with a circulatory system including piping, pumps, and filters. Water enters the circulatory system through skimmers and main drains. After water enters the skimmers and main drains, it is directed through the pump and into the filter. Filter types used include diatomaceous earth, cartridges and sand beds.

Figure 2 - Segmentation of water treatment biocides market in Mexico

The remainder of the water treatment is done by adding biocides, chemical or non-chemical, to the water. Recreational water operators in Mexico must comply with the federal norm PROY-NOM 000 SSA1-2005; which set the quality standards water must meet in order to be suitable for recreational activities.

Chloroisocyanurates are the biocide of choice in recreational water in Mexico, accounting for over 90% of the volume share. They have a borderline commodity status Other biocides used in Mexico include quats, halogenated hydantoins and sodium bromide.

In Mexico, chloroisocyanurates are now largely imported from China as there is no longer any local production. Aqua-Clor historically manufactured chloroisocyanurates at a plant in Nuevo Leon state but this facility closed in 2008, due to the lifting of the anti-dumping duty on Chinese trichlor. At this time Oxychem, Clearon and Delsa were also displaced from the market by the aggressive pricing from distributors of Chinese actives. 

In the last five years, the swimming pools and spas market has grown considerably due to the increase in prosperity of Mexican residents, for whom a swimming pool is becoming a standard component in a new home, compounded by the boom in tourism.

The market was negatively impacted by the 2008-2009 economic crisis, as well as the outbreak of H1N1 virus in April 2009. However, tourism recovered quickly and growth is now being fueled by a number of tourism projects including for example Mexico North and Colonial Treasures. The development of new hotel accommodation in southern Mexico is also driving new swimming pool construction, generating growth for biocides.

The outlook for speciality biocides in recreational water is forecast to grow at a volume CAGR of 5.2% from 2010 to 2015. Chloroisocyanurates will remain the biocide of choice in Mexico due to their good performance-price ratio. However, the construction of more specialist spas will provide opportunity for more specialist biocides, such as biguanides, that create less eye irritation. Alongside Chinese players, Buckman Laboratories, Organo Sintesis, and Qumikao are also active in the supply of products.

In contrast to the promising outlook for recreational water applications in Mexico, consumption of speciality biocides in oil and gas applications from 2010 to 2015 will remain moderate. Biocides for oil production must provide persistent biocidal activity and be compatible with fuel and fuel additive chemistry. They also are required to have a short half-life and must be fast-acting.

Figure 3 - Outlook for water treatment biocides market in Mexico, 2010-2015

Biocides used in this industry are typically non-oxidising. Glutaraldehyde and quats are the most commonly used biocides in Mexico, accounting for over 80% of volume consumed. Usage of tetrakishydroxymethyl phosphonium sulphate has diminished due to its price, despite being widely used in the past.

Mexico is the seventh-largest producer of crude oil, accounting for about 4% of the world's annual production. Pemex, a state-owned company, is the sole entity entitled to deal with the vast crude oil resources in Mexico including exploration, production, refining, and marketing activities and is the sole supplier of all commercial petrol and diesel stations.

There has, however, been a decline in Mexican oil output since 2004. The recovery of the Mexican oil industry depends on the success of a number of projects focused on deep sea exploration in the Gulf of Mexico as well in the Chicontepec Basin, which contains a huge reserve estimated at 18 billion barrels of oil equivalent. These projects are yet to come to fruition and, as a result, consumption of speciality biocides in the sector is expected to grow at a mediocre 2.3% from 2010 to 2015.

Biocide growth in other water applications, such as cooling water and pulp and paper, is in line with GDP. The Finance Ministry projects this at 4-5% this year, after 5.5% growth in 2010 (Figure 3). Within the broadest context of water treatment, recreational water provides the bright spot in Mexico for biocides but the challenge to exploit this remains high due to the influx of imported products within this market segment.

 

 

From Online Issue: June 2011