Austrian refiner, OMV, has announced its plans to produce propanol from glycerin at its refinery in Schwechat, Austria.

A little background:

At the end of last year, OMV announced plans to invest in this refinery so that it can also produce biodiesel (similar to what Phillips 66 is doing). But all of that biodiesel production comes with an unwanted bonus—each 100 pounds of biodiesel produced comes with about 10 pounds of glycerin.

So what are they doing?

We've actually seen other companies look to make use of that glycerin in the past (last fall Solvay began using glycerin to make solvents). Instead of doing that, OMV is looking to convert it into propanol (for use as a bio-based gasoline additive) after "more than five years of research". The project will begin as a small pilot plant, but the company hopes to eventually produce 125 million liters of propanol each year.

Read the press release here.

US-based chemical company, Dow Chemical, has signed a (non-binding) agreement with one of China's development zones to build a combined 250,000 ton per year specialty polyurethane and alkoxylate manufacturing site.

Some context:

The potential facility, located in Zhanjiang, would be built alongside other large projects in the area (like BASF's $10 billion site under construction). You can read more about the enormous chemical park here if you're interested.

Why build the new plant?

The Asia-Pacific region is the world's largest chemicals market, and the demand in the area is rapidly "evolving towards high-value, specialty chemicals". By building a large site in the area Dow will be able to improve its "supply reliability" and "responsiveness to market needs and customized innovation".

Read the press release here.

Belgian chemical company, Solvay, has begun carving out its soda ash and derivatives business into a separate legal structure.

Why would they do that?

Typically, a company carves out part of its overall business so that it can optimize the unit's cash flow and readily sell it to another company. Solvay is looking to do this because "the business doesn’t really fit" the company's plans to focus on specialty materials. Such a large divestment would provide Solvay with plenty of cash to invest in that strategic direction.

Why you should care:

Not only is Solvay the world's largest producer of soda ash, but it was also the first to figure out how to make it cheaply and without the hydrogen chloride gaseous byproduct. If Solvay divests this part of its business it won't have much left in common with its beginnings in 1863 (which helped make glass, soap, and paper—19th-century essentials).

Read more here on IHS Chemical Week.