Market for Carboxylic Acids

Products

There are multiple target markets for our system, including the use of formic acid as a hydrogen carrier and the direct use of formic acid. Formic acid is a multi-market product with a broad number of applications. Formic acid is used to make potassium formate, the most effective de-icer for the preservation of road and airport infrastructure. Calcium formate is the most important concrete hardener currently used. Formic acid is also used for tanning leather products, pest control, beehive mite elimination, and as a precursor for many other commercial chemicals.

Market Size

According to Verified Market Research (NJ, USA): Bio-organic Acid Market was valued at USD 21.66 Billion in 2019 and is projected to reach USD 39.80 Billion by 2027, growing at a CAGR of 7.8% from 2020 to 2027. This market is primarily composed of Formic Acid, Succinic Acid, Gluconic Acid, Acetic Acid, Citric Acid, Lactic Acid, Ascorbic Acid and Fumaric Acid. A renewable source of formic acid in itself is key, since current formic acid production is limited be necessary proximity to sources of methanol and carbon monoxide.

Applications

The formic acid market in Canada will grow beyond potassium formate applications. Silage is currently about 25% of the global formic acid market. Used as an ensiling agent, formic acid supports the activity of lactic acid bacteria in the fermentation process. Acidification reduces the growth of damaging bacterial strains that produce butyric acid and ammonia, while promoting lactobacilli.

Formic acid has a strong antimicrobial effect, which can be used to protect water against bacterial contamination. Formic acid can also be used in personal and home care products like cleaning agents and disinfectants. Formic acid (C1) with propionic acid (C3), can inhibit fungal and yeast growth, ensuring microbiologically safe feeds. Formic acid will decompose after it has been used as an ensiling agent.

In Alberta and Western Canada, one potential market is the tanning industry. De-liming and bathing the hides yields a slightly alkaline state. On the other hand, tanning requires acidic conditions. Therefore, the hides are usually pretreated with sulfuric acid and formic acid prior to tanning in a process called pickling.

Ice Removal Organically

In the case of formic acid as a precursor chemical, the initial emphasis would be on the production of potassium formate for non-destructive ice removal on infrastructure. The US EPA estimates that every tonne of road salt cause approximately $825 USD in damage to concrete, bridges and vehicles. Analysis of Michigan’s 2 million tonnes, purchased at $110 Million, creates about $1,500 Million in damages annually. Currently, all the de-icing agents used in the northern states are imported from Europe and Asia. Within the end user space, anti-freeze is a 5.4 Billion USD market, with a market of 55% controlled by poisonous ethylene glycol. Almost 100% of the 1,410,000 tonnes of ethylene glycol produced in Canada is consumed domestically. Currently, at 533 USD/MT, Alberta’s economy depends on 992 MM$ from this sector. In Canada, about 60% of EG consumed is used in aircraft de-icing fluids and automobile cooling systems. Alberta currently produces all the ethylene glycol in Canada, using locally produced natural gas and petroleum.

Alternative to Glycol

The emerging dominance of formate coolants threatens some of the existing ethylene glycol production in Alberta. Glycol coolants confer an improved resistance to corrosion as well as antifreeze properties. Using potassium formate in chillers can offset the market loss caused by switching out glycol. The coolant market for Alberta glycol is about 225,000 tonnes. We estimate imported organic acid coolants could replace about 95,000 tonnes that volume in 5 years.

Global formic acid production is about 650,000 tonnes with revenues of over 630 Million USD. Currently there are no formic acid producers outside of Louisiana