Soybeans Can Save Chemical Companies Dough

Over the past five years, natural gas and crude petroleum prices have continued to climb higher and higher, significantly impacting the price of industrial applications. These rising prices are causing many industrial companies to seriously consider alternatives to petrochemicals. In December, the United Soybean Board (USB) and soybean checkoff announced the results of a pricing trend line study by Omni Tech International (OTI) comparing the cost of soybean oil and soy-based products to that of petrochemicals. OTI prepared a guide for USB to communicate these results called A Survey of Recent Chemical Price Trends. The results showed a major improvement in soy competitiveness.

In the past, the economics for using soy to replace petrochemicals was favorable in some markets, but now is a viable replacement option in significantly more market segments. A breakdown of the current market segments and how soybean oil compares with various basestocks within these markets follows:

Plastics

Polyurethanes

Propylene and propylene oxide have both risen in price, leading to more expensive polyols used in making polyurethanes. From 2003 to 2005, propylene prices increased over 130% and propylene oxide increased 57%, while soybean oil actually fell in price. Checkoff research is focused on improving the reactivity of soy polyols to allow them to be used in greater amounts to compete with higher priced petro products.

Composites

Prices have also risen for ethylene, benzene, styrene and maleic anhydride used in making polyester resins. Soybean oil can be substituted for a portion of the polyester used in making fiberglass reinforced composites. One of the fastest rising products in price was propylene glycol which rose from $0.67 in 2003 to $1.10 per pound in 2005. Research is focused on converting glycerin, created from biodiesel production, into propylene glycol economically.

Thermoplastics

Propylene prices have a huge impact on this area, making it a potential new opportunity for soybean oil and glycerin. As this is a possible new market for soybean oil, the checkoff is working to support research and development efforts to improve the processing and performance characteristics of soy-based thermoplastics and will sponsor a review of the economics of using soy in this area.

Adhesives

The prices for phenol, urea and formaldehyde, common wood adhesive ingredients, have increased substantially since 2001. In 2005, the average price of soybean meal per pound was 9 cents compared to urea at 15 cents per pound, formaldehyde at 20 cents per pound and phenol at 60 cents per pound.

Soybean meal and soy-flour-based adhesives have begun to be used in making plywood and research is aimed at gaining market share in the areas of oriented strandboard and particleboard to replace environmentally unfriendly materials like formaldehyde.

Coatings

Latex coatings

Vinyl acetate and acrylic acid prices have increased 30-50% in the past 2-5 years. Research is focused on improving cure rates of new soy-derived monomers to replace acrylic-acid-derived monomers in water-based paints.

Powder coatings

Intermediate prices have risen, making soybean oil a more affordable alternative, if the technology can be developed. The soybean checkoff is currently sponsoring research in new resin development for low-temperature-cured powder coatings to meet this need.

Inks

Drying oils

Energy-Cured inks

The prices of base chemicals used in energy cured resins are up 25 percent to 150 percent in the past five years. Research at Lehigh University has shown that blown soybean oil can be used replacing 30 percent of these chemicals in energy-cured inks.

Lubricants

All grades

Crude soybean oil is significantly lower in price than any of the petroleum lubricant basestocks. Since 2003 the lowest cost Group I increased from under 20 cents to over 30 cents per pound, with better grades going even higher.

Conventional soybean oil can be used to replace these more expensive materials in some areas like total loss lubricants, greases, metal working fluids and even some forms of hydraulic fluids. Those markets are already growing. Research is focused on improving the stability of soybean oil to become a replacement for petroleum in crankcase oil and high-pressure hydraulic fluid.

Solvents

Competing petrosolvents such as mineral spirits, MEK and TCE have seen price jumps higher than that of soy-based methyl soyate. In fact, with the shift in costs, methyl soyate has moved from a mid-priced solvent to the lowest cost solvent in its class. However, if soy biodiesel continues to grow, there may not be enough methyl soyate to meet the needs of this market.

To learn more about chemical price trends, obtain a copy of USB's A Survey of Recent Chemical Price Trends by downloading a copy from our website at unitedsoybean.org/newuses/

Government Designates Six Biobased Products in Final Rule to Farm Bill

Since the adoption of the 2002 Farm Bill, the U.S. government has worked to establish a list of preferred biobased products for federal agencies and the military through its Federal Biobased Products Preferred Procurement Program. Earlier this month, the Agriculture, Rural Development and Related Agencies Subcommittee announced the final rule, issuing six biobased items for government agencies to purchase when they are found to be more cost-effective and better-performing than petroleum-based products. The United Soybean Board (USB) and soybean checkoff have supported a number of soy-based products over the years to help make the preferred purchasing list a reality.

"From farmers to industrial manufacturers and the government, the recent biobased products designation is a win-win situation for everyone," says Todd Allen, Chair of USB's New Uses Committee. "These new biobased items will strengthen the demand and support of soy-based technology in the marketplace."

The creation of the final rule to the 2002 Farm Bill will mandate that all federal agencies give designated items purchasing preference. The rule is the first of several that the government expects to be published this year. Additional rules will designate other biobased items in the future. For now, the following six items, or product areas, have been designated by the U.S. government: mobile equipment hydraulic fluids, penetrating lubricants, diesel fuel additives, roof coatings, bedding, bed linens and towels, and water tank coatings.

Although the government has designated six new items for preferred purchasing, industry must do its part by meeting a minimum biobased content in these products. Here's a listing of each designated item and the minimum biobased content needed to qualify for preferred purchasing:

ITEM	MINIMUM BIOBASED CONTENT
Mobile equipment hydraulic fluids	44%
Penetrating lubricants	68%
Diesel fuel additives	90%
Roof coatings	20%
Bedding, bed linens and towels	12%
Water tank coatings	59%

A number of soy-based products have received funding from the soybean checkoff and comply with the new federally designated list. Here are USDA's definitions for these first six items along with examples of soy-based products available:

Mobile equipment hydraulic fluids - Hydraulic fluids formulated for use in non-stationary equipment such as tractors, end loaders or backhoes. Exemptions are provided for military equipment designed or procured for combat or combat-related missions and spacecraft systems and launch-support equipment. Examples of soy-based hydraulic fluids can be found here: http://www.unitedsoybean.org/newuses/products_search.cfm?cat=Industrial%20Products&subcat=Hydraulic%20Fluids

Penetrating lubricants - Products formulated to provide light lubrication and corrosion resistance in close tolerant internal and external application, including frozen nuts and bolts, power tools, gears, valves, chains and cables. Soy-based penetrating lubricants are a great alternative to petroleum lubricants, and more information can be found at this address: http://www.unitedsoybean.org/newuses/products_search.cfm?cat=Industrial%20Products&subcat=Industrial%20Lubricants

Diesel fuel additives - Any substance, other than one composed solely of carbon and/or hydrogen, that is intentionally added to diesel fuel (including any added to a motor vehicle's fuel system) and that is not intentionally removed prior to sale or use. Neat biodiesel also referred to as B100, when used as an additive. Diesel fuel additive does not mean neat biodiesel when used as a fuel or blended biodiesel fuel (e.g., B20). Retailers of soy biodiesel can be located by visiting: http://www.unitedsoybean.org/newuses/products_search.cfm?cat=Consumer%20Products&subcat=Soy%20Biodiesel

Roof coatings - Coatings formulated for use in commercial roof deck systems to provide a single-coat monolith coating system. In 2004, a soy-based roof coating was named "Outstanding Green Product of the Year" by the International Home Builders Association. Find out more about the soy-based product here: http://www.unitedsoybean.org/newuses/products_search.cfm?cat=Consumer%20Products&subcat=Building%20Products

Bedding, bed linens and towels - Bedding is that group of woven cloth products used as coverings on a bed, including blankets, bedspreads, comforters and quilts. Bed linens are woven cloth sheets and pillowcases used in bedding. Towels are woven cloth products used primarily for drying and wiping. Learn more about soy socks, SoySilk and other products here: http://www.unitedsoybean.org/newuses/products_search.cfm?cat=Consumer%20Products&subcat=Miscellaneous

Water tank coatings - Coatings formulated for use in potable water storage systems. Examples of soy-based industrial coatings can be found here: http://www.unitedsoybean.org/newuses/products_search.cfm?cat=Industrial%20Products&subcat=Surfacing%20Agents

For more information on these new designated items, visit the Federal Register online at USB's Biobased Solutions for Government Web site: http://www.soybiobased.org/policies. To learn more about soy-based products, visit USB's Soy Products Guide at http://www.unitedsoybean.org/newuses/products.html

Soy-Based Adhesives Adhere to Industry Needs

This is the third in a series of soy-based market overviews that will be featured in Biobased Solutions.

Common wood products such as plywood have used soy-based adhesives for over 70 years. With the introduction of urea-formaldehyde and phenol-formaldehyde resins in the late 1930s, increased water resistance and lower costs were realized compared to older soy products. Increased prices for petroleum-based products, environmental concerns and human health issues have prompted demand for a renewable feedstock, causing a resurgence of interest in the development of new soy-based products for the wood adhesives industry. This led to the United Soybean Board and soybean checkoff funding of research studies into soy-based adhesive alternatives.

Continued development and adoption of soy-based wood adhesives have cost-saving advantages and increased environmental benefits across various lumber products, including wood panel products (plywood, veneer, oriented strand board, particleboard and medium-density fiberboard), engineered lumber, green framing lumber and wood pallets.

Currently, efforts are under way to develop and commercialize an improved waterproof product that replaces phenol-formaldehyde. Kymene/soy flour technology from Hercules, Inc. is being used.

Soy Flour

Finely ground soy flour can be combined with other commercially available resins such as phenol-formaldehyde and ethylene discarnate to form wood adhesives, generally by dissolving soy flour in a sodium hydroxide solution. Variations in formulations will result in a wide range of strength and other properties. Additional research will determine the limits of these mixtures and test the performance of resulting products. Early evidence shows promising economic benefits with no discovered problems in performance. Normally these adhesives are for use in the production of wood panels.

The move toward soy flour might someday completely replace formaldehyde in plywood adhesives. The World Health Organization's International Agency for Research on Cancer (INARC) has designated urea formaldehyde as "carcinogenic to humans."

Currently, Hercules, Inc., offers a Kymene/Soy Flour adhesive for use in hardwood plywood and particleboard manufacturing. Kymene is a water-soluble product that has been used for over 40 years to add wet strength to tissue and other paper products.

The Kymene portion of the adhesive, a range of polymer products, is combined with soy flour, obtained from a different source, on-site by end users in ratios specific to the function required. Cost comparisons for the Kymene/soy flour adhesive technology are expected to be equal to current urea-formaldehyde-based adhesive technology. Researchers are optimistic that Kymene/soy flour adhesive technology will also be cost-competitive against various other formaldehyde-based adhesives.

While research continues to determine the limits of these mixtures and to test the performance of resulting products, early appraisals show promising economic benefits with no discovered problems in performance.

For more technical information on soy-based adhesives, visit www.unitedsoybean.org/newuses.

Soy Products May Change the Way You Approach Spring Cleaning

It's time to start thinking about those favorite words we all love to hear - spring cleaning. It's the time of year when houses, decks, driveways and other areas get spruced up for visits from family and friends over the summer. The United Soybean Board (USB) and the soybean checkoff are working closely with various industries to help provide environmentally safe products to help ease spring-cleaning tasks. A few examples of helpful soy-based products on the market include Franmar Chemical's Emerge Parts Cleaner, Florida Chemical's CITRUSoy line of cleaners and New Century Coatings soy-based wood stain.

Emerge by Franmar Chemicals, Inc. has proven itself useful in the swing of spring. As a 100 percent biodegradable, all-purpose concentrated cleaner, this product is used by industry to clean a multitude of hard surfaces. From oil in garages, grease and dirt on lawn equipment and grime from asphalt, concrete, metal and painted walls - this environmentally friendly product has no VOCs or global warming potential. The properties list no flash point and mild odor.

CITRUSoy products have also become a popular item to use during spring cleaning. Florida Chemical Company has a line of cleaners derived from citrus fruits and soybeans that work well for parts cleaning, washing and industrial cleaning products. CITRUSoy's product formulations target household use and industrial cleaning challenges.

CITRUSoy household solvents are designed to be used as kitchen and bathroom cleaners, among other items. The industrial solvents line was formulated for tougher cleaning applications, such as tar asphalt removers, adhesive removers, graffiti removers and general-purpose cleaners. Both lines contain low VOCs and flash points up to 200°F. The CITRUSoy line of solvents can be used in formulated products that have a degreaser not as aggressive as 100 percent d'Limonene. It blends well with other solvents and has no hazardous materials.

Lately, soy methyl ester wood stain has been a popular choice for manufacturers to incorporate in their product lines. Methyl soyate resists the elements and saves money as less staining is required year after year. Soy methyl esters are safe replacements for common petrochemicals. Methyl soyate provides manufacturers and consumers with several advantages over terpene or stains containing high VOC levels, high toxicity, biodegradility issues, waste-disposal problems and high-flammability threats.

As you prepare to clean up your wood deck or patio, part of the task may be re-sanding and surfacing. AgriStain by New Century Coatings is a soy methyl ester wood stain that can help you safely get the job done. It is odorless, contains no irritants or harmful VOCs and provides easy cleanup. In terms of performance, AgriStain increases the quality of stained products through enhanced penetration and colorization. This stain also has shown superior properties when it comes to lapping, drip mark repair and dry time. It prevents fading with UV resistant colors and blending with dyes is acceptable even though loss of color due to UV fading is possible.

So soy products may never change the way you think about spring cleaning, but they may make cleaning a bit easier to tackle - and definitely safer for all. For more information on soy-based solvents, visit the Soy Products Guide online at www.unitedsoybean.org/newuses.