Swiss speciality chemicals company Clariant announced a new joint venture with India Glycols (IGL) on 11 March to manufacture renewable ethylene oxide (EO) derivatives.

IGL manufactures green technology-based, speciality and performance chemicals and also natural gums, spirits, industrial gases, sugar and nutraceuticals. It also manufactures oleochemicals such as fatty acids, fatty alcohols, fatty amines, castor oil and hydrogenated castor oil ethoxylates.

In its production of EO, IGL utilises used bio-ethanol and under the agreement, which is subject to regulatory approvals, IGL will contribute its renewable Bio-EO derivative business to the joint venture. This includes a multi-purpose production facility including an alkoxylation plant located in Kashipur, Uttarakhand, India.

Clariant would contribute its local industrial and consumer specialties business in India, Sri Lanka, Bangladesh and Nepal, as well as a net cash payment to attain a majority 51% stake in the joint venture.

“To support production, India Glycols has agreed to a long-term supply agreement for ethylene oxide made from bio-ethanol as well as further utilities,” Clariant said.

EO is used in the production of other chemicals for a range of industrial applications and consumer products, including household cleaners, personal care items and fabrics and textiles. It is also used in the sterilisation of medical equipment, including personal protective equipment.