Advances in propane dehydrogenation: The evolution of on-purpose propylene production

The global propylene market has undergone a significant transformation over the past decade, with on-purpose propylene technologies gaining prominence as traditional production routes face challenges.

For decades, propylene was primarily produced as a byproduct of other processes - mainly steam cracking for ethylene production and fluid catalytic cracking in refineries. However, the shale gas revolution dramatically altered this landscape, particularly in North America. As crackers shifted to lighter feedstocks like ethane, propylene yields declined significantly, creating a supply gap in the market.

This gap opened the door for on-purpose propylene technologies, with propane dehydrogenation (PDH) leading the charge. The simple chemistry behind PDH - converting propane directly to propylene by removing hydrogen - offers an elegant solution to the propylene shortage.

Why PDH Matters Now

With the shale gas revolution in the United States shifting steam cracking toward lighter feedstocks like ethane, propylene co-production, that was common with cracking heavier feedstocks, declined.. Over time, this created a propylene supply gap that on-purpose technologies like PDH have stepped in to fill.

PDH capacity has grown dramatically in recent years, with China leading the charge. From just a handful of plants a decade ago, global capacity now exceeds 30 million tons per year, with China accounting for nearly two-thirds of this total.

The Middle East has embraced PDH as a way to add value to its abundant propane resources, while North America has leveraged its shale gas advantage to build several world-scale facilities. Europe, though later to adopt the technology, now has several projects under development to reduce its dependence on imported propylene.

The Technology Landscape

There are three basic types of PDH technology, each with distinct advantages:

• Fixed Bed Technologies

Lummus Technology's CATOFIN® process and thyssenkrupp's STAR Process® both utilize fixed catalyst beds in a cyclical operation. CATOFIN® employs chromium-based catalysts in multiple reactors that alternate between reaction and regeneration phases. The STAR Process® uses platinum catalysts in tubular reactors similar to steam reformers, with steam dilution to enhance conversion.

• Moving Bed Technology

UOP's Oleflex™ process, the market leader with the most installations globally, features a continuous catalyst regeneration system. Platinum-tin catalysts move slowly through a series of reactors while maintaining continuous production, offering stable operation and consistent product quality.

• Fluidized Bed Technologies

The newest entrants to the market, Dow's UNIFINITY™ and KBR's K-PRO™ processes, adapt fluid catalytic cracking principles to propane dehydrogenation. These technologies promise lower capital costs and higher operational flexibility, with catalyst continuously circulating between reaction and regeneration zones.

Economics: A Regional Story

The economics of PDH vary significantly by region, driven primarily by propane costs and propylene pricing.  PDH economics are fundamentally about the propane-propylene spread, which has widened considerably in some regions, making PDH investments increasingly attractive.

The Middle East enjoys the lowest production costs due to advantageous feedstock pricing, followed closely by the U.S. Gulf Coast. Western Europe faces higher utility and feedstock costs but benefits from strong propylene pricing. China, despite having the most capacity, often struggles with economics due to its reliance on imported propane.

Among technologies, newer designs like Dow's UNIFINITY™ show promising economics due to lower capital requirements and efficient operation. Traditional technologies like UOP's Oleflex™ and Lummus's CATOFIN® remain competitive through continuous improvement and proven reliability.

Sustainability Considerations

As the chemical industry faces increasing pressure to reduce its environmental footprint, PDH technologies are evolving to meet these challenges. Carbon intensity varies significantly between processes and regions.

The carbon footprint of PDH is heavily influenced by both process design and regional energy mix. Western European facilities typically show the lowest emissions due to cleaner electricity, while Chinese plants face challenges due to coal-dominated power generation.

Innovations in catalyst design, heat integration, and hydrogen utilization are helping to reduce the environmental impact of PDH operations. Licensors have also designed their PDH processes with sustainability in mind, reducing the use of gas driven compressors in favor of electric motor drives that benefit from low carbon or green power availability.  

Recent Market Developments

The PDH landscape continues to evolve rapidly:

• Enterprise Products Partners completed its second PDH unit in Texas in 2023, adding 750,000 tons of annual capacity.

• Borealis is advancing construction of a 750,000 ton per year plant in Kallo, Belgium, expected online in 2026.

• APOC started up an 843,000 ton per year plant in Saudi Arabia in 2025.

• Several Chinese companies continue to add capacity despite challenging economics. 

Future Innovations

Emerging technologies could reshape the PDH landscape, with the next generation of PDH technologies promising greater efficiency and sustainability:

• Membrane reactors that continuously remove hydrogen during the reaction, shifting equilibrium toward higher conversion.

• Advanced catalysts with improved activity, selectivity, and resistance to deactivation.

• Process designs that minimize energy consumption and maximize heat recovery.

• Integration with downstream polypropylene production for improved overall economics.

Conclusion

PDH technology has firmly established itself as a critical pathway for on-purpose propylene production. While regional economics vary significantly, the technology continues to attract investment globally due to the fundamental need for propylene that traditional routes can no longer fully satisfy.

With each new plant and technological advancement, PDH strengthens its position as a cornerstone of the petrochemical industry's future - a future where on-purpose production increasingly replaces byproduct streams, creating a more resilient and flexible supply chain for one of the world's most important chemical intermediates.

For more information…

TECH: Advances in Propane Dehydrogenation (2025 Program)

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