Verde Bio LLC(USA) & Verde Grupo(Central America)

Green Group
One World One Color

Green Group Glycerin Verde Bio is a large scale distributor of Glycerin products.

The glycerol’s price is historically volatile. Prior to the biodiesel boom, when one fourth of the global (and relatively low) demand was met by synthetic glycerol and the rest from soap and oleochemicals manufacturing, the price was dictated primarily by weather and by the fluctuating demand of soap and fatty alcohols. This volatility, that once was linked to the volatile demand of a chemical mainly used by the pharmaceutical and personal care industries, today originates from the volatile nature of the glycerol supply; which in its turn is influenced by two main factors: politics (i.e. , fiscal incentives to biodiesel in the EU and in the US; and subventions to biodiesel and oleochemicals manufacturing in many countries) and oil.

In other words, as glycerol today originates as a by-product of biodiesel and fatty acids and fatty alcohols manufacturing, its supply is entirely independent of market demand. There is as much glycerol as much vegetable oils are converted into biofuels, and oleochemicals. Said otherwise, this is one of the few examples in economics of a good whose price is not affected by the demand for various end-use segments. This explains the so called glycerol-derived products “pyramid of value”. In order to generate profits, a company’s product obtained from glycerol needs to be positioned close to the top of the pyramid of value, namely there where price fluctuations of glycerol will not make its product uneconomic.

Otherwise, sitting at the bottom of the pyramid -- for example all usages of raw glycerol as such, like in cattle feeding or as concrete additive -- customers will simply shift to the less pricey alternatives. Epicholorohydrin, propylene glycol, 1,3- propanediol, methanol, acrolein, glyceric acid, dihydroxyacetone and similar derivatives obtained by chemoselective catalytic processes sit close to the top of the pyramid, where also highly pure glycerol for pharmaceutical and personal care usages resides. Recent market analysis projects that demand for glycerine by-product of oleochemicals and biodiesel production will expand at an annualised average rate of 7% during 2007-2021; with a 6 million tonnes overall production in 2025.

The price recovery of the last two years already makes glycerol refining convenient. As soon as the first process to make acrolein via glycerol dehydration will be industrialized (likely within the next two years), along with many new biotechnology we rather forecast that low value added usages of crude glycerol as animal feedstock or as low energy will end. The highly functionalized triolglycerol molecule has too many extraordinary chemical and physical properties to continue to waste it in such 1stgeneration biorefinery practices. Bioglycerol will be an eminent raw material for the 2nd-generation orefinery.