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Australia's chemical industry is a significant contributor to the country's GDP, with key industries spanning manufacturing, food and agriculture, medicine, pharmaceuticals, technology, and mining. The petrochemical industry, for example, accounts for 13% of exports. Australia has abundant natural resources, including oil and gas reserves, coal and minerals, which provide the country with a competitive advantage in the chemical market. In addition, the country has been taking steps towards better environmental management of chemicals, with the Australian Government passing legislation in March 2021 to establish the IChEMS Register, which categorises industrial chemicals according to their environmental risk.
| Characteristics | Values |
|---|---|
| Number of industrial chemicals available for use | More than 40,000 |
| Industry focus | Manufacturing, food and agriculture, medicine, pharmaceuticals, technology, and mining |
| Petrochemical industry contribution to GDP | 13% |
| Petrochemical product chemicals imported | Majority |
| Example of imported chemicals | Poly Vinyl Chloride |
| Chemicals produced | Sodium carbonate, superphosphate fertiliser, titanium dioxide pigment, sodium polyphosphate, sodium cyanide, ethoxylates, polyols, hydraulic fluids, triethanolamine, caustic soda, chlorine, polyethylene resins, polypropylene, synthetic rubbers |
| Chemicals imported | Vinyl chloride monomer, benzene |
| Chemicals exported | Natural gas, coal, salt, caustic soda |
| Chemical industry regulation | Australian Consumer Law (ACL), Australian Industrial Chemicals Introduction Scheme (AICIS), Industrial Chemicals Environmental Management (Register) Act 2021, IChEMS Register |
| Chemical industry organisations | Chemistry Australia, Responsible Care®, Huntsman Chemicals, Polystyrene Australia, BASF, Dow Chemical, Qenos, Orica, Altona Petrochemical Company, Wesfarmers |
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What You'll Learn
The petrochemical industry
Australia's petrochemical industry is a significant contributor to the country's GDP, accounting for 13% of exports. The country has vast reserves of industrial chemicals, yet it imports the majority of the chemicals used in petrochemical products. One notable example is the import of Poly Vinyl Chloride by manufacturing companies and local businesses.
The industry's influence extends to key sectors of the Australian economy, such as manufacturing, food and agriculture, medicine, pharmaceuticals, technology, and mining. With its abundant oil and gas reserves, coal, and minerals, Australia has a promising future in producing a diverse range of chemicals.
In terms of petrochemicals, Qenos (formerly Kemcor Australia) and Orica are the dominant players. Orica's operations include the production of polyethylenes, competing with Qenos, as well as ethoxylates and polyols. Qenos also manufactures polypropylene and synthetic rubbers. The Altona complex, part of Qenos, uses gas from the Bass Strait, and while they have announced plans to increase polyethylene production, these have not yet materialised.
Orica's transition to using ethane sourced from South Australia via a 1400-kilometre pipeline is worth noting. This change addressed their previous feedstock disadvantage, as they had been using LPG from the Bass Strait and naphtha from the Kurnell Refinery. Orica now refines propylene from the Kurnell refinery and sells it to a plant near Altona, which also produces phenol and acetone.
To protect Australia's environment and unique species, the government and organisations like Chemistry Australia are committed to improving the management and safe use of chemicals. The Australian Government passed the Industrial Chemicals Environmental Management (Register) Act 2021 to establish the IChEMS Register, categorising industrial chemicals by their environmental risk. Additionally, the Australian Industrial Chemicals Introduction Scheme (AICIS) assesses the risks associated with importing or manufacturing industrial chemicals. These initiatives aim to prevent environmental harm and safeguard human health.
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Sodium carbonate, superphosphate fertiliser, titanium dioxide pigment, sodium polyphosphate and sodium cyanide
Australia's chemical industry has a strong foundation, thanks to the country's abundant natural gas, oil, coal, and mineral reserves. This has positioned Australia as a significant exporter of natural gas, coal, and salt, as well as caustic soda. Within this context, certain chemicals stand out in Australia's production landscape.
Sodium Carbonate
Sodium carbonate, also known as soda ash, is a versatile chemical with applications in various industries. It is used in glass manufacturing, detergents, and water treatment, among other applications.
Superphosphate Fertiliser
Superphosphate fertiliser is a crucial product in Australia's agricultural sector. It is produced by reacting ground rock phosphate with sulphuric acid and water, resulting in a semi-solid slurry that undergoes further processing to create a granular fertiliser. This fertiliser enhances crop growth by providing an excellent source of phosphorus.
Titanium Dioxide Pigment
Titanium dioxide is a white pigment with high opacity and brightness, making it valuable in the paint, plastics, and paper industries. Its ability to scatter light effectively gives it a key role in these applications.
Sodium Polyphosphate
Sodium polyphosphates, including sodium tripolyphosphate (STPP), find diverse applications in Australia. In the food industry, STPP is used as a preservative, emulsifier, and moisture retainer in seafood, meats, dairy, poultry, and pet foods. It also helps maintain the natural colour of meat and prevents grease separation during heating. Outside the food sector, STPP is utilised in toothpaste, soaps, detergents, and water softening due to its foaming properties and pH-buffering capabilities.
Sodium Cyanide
Sodium cyanide, also referred to as cyanide of sodium or hydrocyanic acid sodium salt, has been manufactured in Australia since the late 1980s. It is produced by reacting ammonia, natural gas, and air over a platinum/rhodium catalyst to yield hydrogen cyanide gas. This chemical is predominantly used in Australia's gold mining industry, playing a critical role in extracting gold from ore using the carbon-in-leach and carbon-in-pulp processes. Additionally, it finds applications in nickel production as an arsenic suppressant, metal plating, chemical processes, and insecticides.
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Poly Vinyl Chloride
Polyvinyl chloride (PVC) is the world's third-most widely produced synthetic polymer of plastic. About 40 million tons of PVC are produced annually across the globe. It is a white, brittle solid that is soluble in ketones, chlorinated solvents, dimethylformamide, THF, and DMAc.
PVC is made through a three-step manufacturing process. The first step involves producing ethylene dichloride (C2H4Cl2) by extracting chlorine from sea salt through electrolysis and deriving ethylene from hydrocarbon raw materials. These are then reacted to produce ethylene dichloride (1,2-dichloroethane). In the second step, the ethylene dichloride is decomposed by heating in a high-temperature furnace or reactor to produce vinyl chloride monomer (VCM) and hydrogen chloride. The hydrogen chloride is then reacted with more ethylene in the presence of oxygen (oxychlorination) to produce more ethylene dichloride. In the final step, PVC is created using a process called addition polymerisation, which opens the double bonds in the VCM, allowing neighbouring molecules to join together to form long chain molecules.
In Australia, PVC is imported by manufacturing companies and local businesses. It is used in various applications due to its versatility. Rigid PVC is commonly employed in construction for pipes, doors, and windows. It is also used for plastic bottles, packaging, and cards. By adding plasticizers, PVC becomes softer and more flexible, making it suitable for plumbing, electrical cable insulation, flooring, signage, phonograph records, inflatable products, and rubber substitutes. Additionally, when combined with cotton or linen, PVC is used in the production of canvas.
PVC can be modified through chlorination, increasing its chlorine content to or above 67%. This process, known as chlorinated polyvinyl chloride (CPVC), involves chlorinating an aqueous solution of suspension PVC particles and then exposing them to UV light to initiate free-radical chlorination. CPVC is prevalent in vinyl products such as toys, car interiors, shower curtains, and flooring. However, these vinyl products initially release chemical gases into the air.
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Caustic soda and chlorine
Australia has a significant chemical industry, with over 40,000 industrial chemicals available for use in the country. The industry has a large influence on key sectors of the Australian economy, including manufacturing, food and agriculture, medicine, pharmaceuticals, technology, and mining.
In the past, Australia has imported significant quantities of caustic soda, with 1.1 million tonnes imported in 1995 at a value of A$385 million. However, the country has also been a major exporter of caustic soda to other regions. The global demand for caustic soda has remained stable, and Australia continues to be an important market for suppliers.
The production of chlorine is particularly significant in Australia due to the high cost and hazards associated with its transportation. As a result, chlorine production centres are typically located near the plant or facility where it will be used.
In terms of production technology, the diaphragm cell process is the dominant method for manufacturing caustic soda and chlorine in Australia. However, the membrane cell technology is preferred for new plants, especially for smaller-scale operations.
Australia's chemical industry is subject to various regulations and standards, such as the Australian Consumer Law (ACL) and the more recent Industrial Chemicals Environmental Management (Register) Act 2021, which aims to protect the environment and human health by categorising chemicals based on their environmental risk.
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Orica's polyethylenes
Australia's chemical industry is influenced by the country's vast resource endowments and its proximity to the rapidly growing Asian markets. The country's abundant oil and gas reserves, coal, and minerals put it in a highly competitive position to manufacture a wide range of chemicals.
Orica, a prominent player in Australia's chemical industry, has undergone a series of transformations over the years, particularly in relation to its polyethylene business. In 1997, Orica announced a merger of its polyethylene operations at Botany with Kemcor (a joint venture between Mobil and Exxon). This merger signalled a shift in Orica's focus away from commodity chemicals, including plastics. The joint venture resulted in the production of polyethylenes, polypropylene, and rubbers, with an anticipated market value of A$700 million.
The use of Kemcor technology at Orica's unit in Botany Bay, New South Wales, enhanced the capacity for high-density polyethylene production. This development solidified Botany's position as a predominantly polyethylene business, marking Orica's departure from the core of ICI's operations in Australia.
In 1999, the merger between Orica and Kemcor received approval from the necessary regulatory authorities in Australia, solidifying the joint venture's position in the market. Subsequently, Orica's operations have narrowed to focus solely on polyethylene production, competing with Qenos (formerly Kemcor Australia).
Orica's polyethylene business has evolved through various strategic decisions, including mergers and technological advancements. The company's operations have contributed significantly to Australia's chemical industry, particularly in the production of polyethylenes and related derivatives.
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Frequently asked questions
The chemical industry in Australia spans key industries of the Australian economy, including manufacturing, food and agriculture, medicine, pharmaceuticals, technology, and mining. It also includes the petrochemical industry, which is a significant contributor to the GDP, and the pulp and paper industry, which employs close to 70,000 people.
Some chemicals made or used in Australia include sodium carbonate, superphosphate fertiliser, titanium dioxide pigment, sodium polyphosphate, and sodium cyanide, benzene, ethylene, caustic soda, chlorine, and vinyl chloride monomer.
IChEMS, or the Industrial Chemicals Environmental Management Standard, was established in March 2021 by the Australian Government. It is a register that lists industrial chemicals according to their environmental risk. The goal of IChEMS is to protect the environment and human health from harmful industrial chemicals through collaboration and efficient regulation.
Chemistry Australia is an organisation that offers membership packages to businesses in, and associated with, the Australian chemistry industry. They are committed to improving the industry’s responsible management of chemicals and cultivating the next generation of chemistry sector leaders. They also hold annual Industry Awards to recognise achievements in the industry.
