History and Overview of Australia Chlorine Industry

Chlorine production has a long history in Australia dating back to the early 20th century. Some of the earliest chlorine production facilities were established in the 1920s to serve local demand from water treatment plants and the industrial sector. By the 1950s, annual chlorine production had grown to around 50,000 tonnes as its use expanded in plastics, pharmaceuticals, and other industries in Australia Chlorine.

The main early producers included ICI Australia (now Incitec Pivot) which established large plants in Botany and Brisbane. Other major producers such as Dow Chemical and Orica also entered the market. Through the late 20th century, production continued to gradually increase in line with Australia's industrialization and population growth. By 2000, total annual chlorine production had reached over 450,000 tonnes.

Key Producers and Production Methods

Today, there are three major chlorine producers operating in Australia - Incitec Pivot, Dow, and Orica. Incitec Pivot operates the largest plants at Botany in New South Wales and Brisbane in Queensland with a combined capacity of over 450,000 tonnes per year. Dow runs a 200,000 tonnes per year plant in Melbourne. Orica has facilities in Kwinana in Western Australia and Botany with a total capacity of 130,000 tonnes annually.

All major producers use the mercury cell process to electrolytically generate chlorine from salt brine. This involves passing an electric current through a salt solution in large cells containing mercury anodes and graphite cathodes. The process breaks down the salt into chlorine gas, sodium hydroxide, and hydrogen. Sodium hydroxide is further processed into caustic soda, an important industrial chemical, while hydrogen is often used as fuel on-site.

Chlorine Derivative Industries

The main end uses for chlorine in Australia are in PVC (polyvinyl chloride) production, EDC/VCM production for PVC and other vinyl products, ethylene dichloride for solvents, polyurethane production, and water treatment.

PVC is the largest single end market, accounting for over 30% of domestic chlorine demand. The three major PVC resin producers are Orica, Shin Etsu (NSW), and Oils Aromatics (Victoria) with a combined capacity of over 500kt/year. Australia also has significant EDC/VCM (ethylene dichloride/vinyl chloride monomer) plants owned by Dow, Orica, and Qenos to supply both domestic and export vinyl markets.

The chlor-alkali sector also supports Australia's large alumina industry through caustic soda supply. Caustic soda is used in the Bayer process to extract alumina from bauxite ore. Major aluminum producers such as Alcoa, Rio Tinto Alcan, and Queensland Alumina Ltd rely on domestic chlorine producers for this key input.

Exports and Future Outlook

While a large portion of Australia's chlorine production services local industries, both chlorine and its derivatives such as caustic soda, EDC, and PVC resins are exported. Main export markets include Asia, the Middle East, and New Zealand. In total, about 30% of domestic chlorine production is exported annually, mostly in the form of lower value caustic soda and higher value downstream vinyl products.

The Australia chlorine industry is expected to steadily grow production over the coming decades in line with population growth and industrialization trends across Asia Pacific. Both Incitec Pivot and Orica are undergoing plant debottlenecking and expansion projects to lift total capacities above 500kt/year. However, rising energy costs and greenhouse gas emission policies pose some challenges to the industry's long term competitiveness. Ongoing technology improvements will also be required to maintain the industry's social license to operate.

Future of Membrane Technology

One area attracting significant research interest is membrane electrolysis as an alternative to the mercury cell process. Membrane technology offers potential energy savings of 20-30% by eliminating the need for liquid mercury. It also addresses environmental concerns around mercury use and disposal. While membrane processes are already used commercially overseas, the higher upfront capital costs remain a barrier for widespread adoption in Australia.

Incitec Pivot has partnered with the CSIRO on research into proton exchange membrane (PEM) electrolysis using novel ion exchange membranes and electrode materials. The aim is to develop a commercially viable system capable of displacing mercury cells by 2030. Dow is also investigating opportunities for membrane electrolysis in its operations to reduce energy consumption and transition away from mercury reliance over the long run.

Overall, if technological breakthroughs can bring down capital costs significantly, membrane systems may start displacing mercury cells in Australia within the next 10-15 years. This would help future-proof the industry against increasing carbon costs and impending mercury regulations globally. However, major investment in demonstration plants will still be required before membrane technology achieves broad commercial adoption locally.

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