BASF, Dow to cooperate on HPPO

LONDON (Aug. 7)—BASF A.G. and Dow Chemical Co. have agreed to cooperate on the development of hydrogen peroxide-based propylene oxide and are evaluating the feasibility of a 300,000 metric-ton-per-year plant for the polyurethane raw material in the coming three to four years. The two firms signed a contract in July for joint development of what they call HPPO technology, and said they anticipate completing their pilot-scale research by the end of 2003. Integrated sites owned by BASF and Dow in the U.S. and Europe are being reviewed as locations for a plant, according to a joint statement from the firms. The HPPO process allows for the production of propylene oxide with co-products and at "significantly" lower capital costs, said Bob Wood, business group president for Dow Thermosets.