Novomer’s route to acrylic acid has several potential strategic advantages over the current propylene oxidation technology which include the following:

1. Higher Value Alternative to MEG – Using ethylene oxide to make acrylic acid is a higher value alternative than converting ethylene oxide to Monoethylene Glycol (MEG), a commodity chemical with low margins.

2. Rising Propylene to Ethylene Ratio – As the propylene / ethylene price ratio increases, an ethylene oxide based route to acrylic acid will be more cost competitive to propylene oxidation technology. (See Figure 1)

3. Provides an Outlet for ‘Stranded EO’ – Ethylene Oxide capacity in the United States is being rationalized in favor of low-cost regions like the Middle East. Novomer’s technology would provide an economically viable usage of this EO.

4. Fully Sustainable Acrylic Acid Synthesis – Provides a fully sustainable route to acrylic acid with a negative carbon footprint if the ethylene oxide and CO are sourced from sugarcane and biomass respectfully.

Figure 1. The propylene to ethylene price ratio in the U.S has been increasing over the last decade, and this trend is expected to continue going forward. A high ratio favors Novomer’s ethylene based process.