Alpha Olefins

Alpha Olefins

Most polyethylene co-monomer alpha olefin products are produced via an oligomerization process that produces a range of up to 14 different products, including 1-hexene and 1-butene, in set ratios.  With the proprietary processes licensed by Badlands, the new facility will be able to produce 1-butene and 1-hexene on-purpose to meet demand without having to produce additional non-polyethylene co-monomer AO products.

Badlands intends to construct an AO manufacturing facility on the Gulf Coast.  The facility will manufacture the polyethylene co-monomers 1-butene and 1-hexene using a proprietary ethylene metathesis technology.  The 1-butene product will be dimerized from ethylene and the 1-hexene will be trimerized from ethylene under a license agreement signed by Badlands.   The newly announced facility is expected to begin operation in approximately 24 months and will have the ability to produce annual volumes of 93 KT of 1-butene and 141 KT of 1-hexene.  The proposed Badlands merchant AO facility would be the only stand alone, merchant dimerization/trimerization AO facility in the world. 

Both processes produce very high conversion rates/yields of polymer grade alpha olefins and utilize proprietary catalysts in liquid phase reactions at mild conditions (150 to 250 degrees F) in mild steel reactor tanks that are small in relation to the size of the typical oligomerization facility assets. 

Alpha Olefin Graphic Example

The AO technology licensor has completed a preliminary engineering study that Badlands commissioned in order to be able to determine precise ISBL and OSBL requirements.  Badlands used this critical information to work with its technology and engineering, procurement & construction (“EPC”) contractors to determine a solid capex estimate.  Badlands previously accomplished engineering work with the licensor has significantly expedited the FEED/OBE process timeline for construction of the facility.

Badlands executed all licenses and ancillary documentation including performance guarantees with the AO technology licensor. Badlands chose to locate the facility on the Gulf Coast due the availability of ethylene and infrastructure of pipelines that transport ethylene throughout the region. Badlands also executed a 15 year off-take agreement for 100% of the AO product on a take-or–pay basis with a company who has been in the business of marketing chemicals and resins for over 30 years.

At this time, Badlands continues to consider two alternative Gulf Coast sites for the project and expects final site selection in the near future.  Both sites are located on or adjacent to water transport of products thereby facilitating supply of Badlands AO products to both domestic and international customers. 

Badlands has signed an agreement with an institutional investor in order to source all required project funding.