Important processeses in oleochemical manufacturing include hydrolysis and transesterification, among others.
Hydrolysis
The splitting of the triglycerides produces fatty acids and glycerol: The addition of base helps the reaction proceed more quickly, the process being saponification.
Transesterification
Fats react with alcohols in a process called transesterification. Glycerol is produced together with the fatty acid esters. Most typically, the reaction entails the use of methanol to give fatty acid methyl esters: FAMEs are less viscous than the precursor fats and can be purified to give the individual fatty acid esters, e.g. methyl oleate vs methyl palmitate.
Hydrogenation
The fatty acid or fatty esters produced by these methods may be transformed. For example, hydrogenation converts unsaturated fatty acids into saturated fatty acids. The acids or esters can also be reduced to the fatty alcohols. For some applications, fatty acids are converted to fatty nitriles. Hydrogenated of these nitriles gives fatty amines, which have a variety of applications.
Applications
The largest application for oleochemicals, about 30% of market share for fatty acids and 55% for fatty alcohols, is for making soaps and detergents. Lauric acid, used to produce sodium lauryl sulfate and related compounds, which are used to make soaps and other personal care products. Other applications of oleochemicals include the production of lubricants, solvents, biodiesel and bioplastics. Due to the use of methyl esters in biodiesel production, they represent the fastest growing sub-sector of oleochemical production in recent years.
Southeast Asian countries' rapid production growth of palm oil and palm kernel oil in the 1980s spurred the oleochemical industry in Malaysia, Indonesia, and Thailand. Many oleochemical plants were built. Though a nascent and small industry when pitted against big detergent giants in the US and Europe, oleochemical companies in southeast Asia had competitive edge in cheap ingredients. The US fatty chemical industry found it difficult to consistently maintain acceptable levels of profits. Competition was intense with market shares divided among many companies there where neither imports nor exports played a significant role. By the late 1990s, giants like Henkel, Unilever, and Petrofina sold their oleochemical factories to focus on higher profit activities like retail of consumer goods. Since the Europe outbreak of 'mad cow disease' or in 2000, tallow is replaced for many uses by vegetable oleic fatty acids, such as palm kernel and coconut oils.