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Sulfuric acid, also referred to as H₂SO₄, is one of the world's top industrial chemicals, used extensively all over the globe. It is known as the “king of chemicals,” and it is used in the manufacturing of fertilizers, the refining of petroleum, wastewater processing, the production of pharmaceuticals, and chemical synthesis. Industries across the board are developing new ways to use sulfuric acid, creating opportunities for startups and new investors.
Why Startups Should Consider Opening a Plant to Manufacture Sulfuric Acid
Sulfuric acid production is one of the only viable options for startups in terms of high demand, and it is likely to remain so in the foreseeable future. Sulfuric acid is used as a manufacturing input for the production of phosphoric acid, which is used to make fertilizers. In addition, it is used as a raw material to make alum, synthetic detergents, and explosives, and in the manufacturing of dyes and pharmaceuticals. It is also used to refine crude oil, in metal recovery, and to adjust the pH in wastewater treatment.
The agriculture and mining sectors are likely to provide the most opportunities for startups to benefit from a highly in demand product. As the world focuses on securing food and developing infrastructre, the demand for fertilizers and refined metals will increase and, subsequently, the demand for sulfuric acid will increase.
Market Size, Trends, and Analysis
The global sulphuric acid market is valued at over 13.5 billion USD and is expected to grow to around 17.8 billion USD by 2030, with a 4.2% CAGR. In India, market demand is concentrated in the fertilizer industry, and more so in the production of single super phosphate (SSP) and phosphoric acid.
In the Asia-Pacific region, India and China are the biggest consumers of sulphuric acid. With the Indian government increasing the production of domestic fertilizers and building more infrastructure, there is more opportunity for new companies to enter this industry. The Make in India program, along with the provision of subsidies for fertilizer raw materials, also make this industry a good opportunity for new companies.
The sulphuric acid industry is also seeing more investments in producing sulphuric acid in a cleaner way and in a more energy-efficient way. Newer methods, like the Double Contact Double Absorption (DCDA) process, produce a higher yield with lower emissions, making them more compliant with current environmental standards.
Export Possibilities
India is a consumer as well as a leading exporter of sulphuric acid to the African, Southeast Asian, and Middle Eastern markets. In the last few years, due to rapid industrialization of developing economies, the export market for sulphuric acid has expanded significantly. Manufacturing in India also means accessing other international markets where manufacturing is either inadequate or highly volatile.
With the availability of enhanced port and bulk chemicals shipping, manufacturers will also be able to optimize operations for the international market, in addition to the domestic market.
Production of Sulphuric Acid
The most predominant method of producing sulphuric acid is the Contact Process, consisting of the following steps:
The process is highly unsafe and requires stringent control of temperature and pressure as well as constant monitoring.
Conclusion
There is strong market rationale for starting a venture in the production of sulphuric acid. In the context of India's growing requirements for pesticides and fertilizers, chemicals, and solutions for industrial processing, there is considerable scope for new entrants. Although the production process is technically demanding, highly regulated, and requires a great deal of precise engineering, the processes are proven, and the processes and equipment are available.
Consistently growing community demand, diverse end-user industries, and government support and export demand makes this venture particularly appealing for first movers in this space. New entrants in this sulphuric acid market will be able to create a lasting competitive advantage and investment is to be conside red in the development of advanced processes, which are environmentally sustainable, leading to a a strong profitable envelope in this sulphuric acid market.
| Plant capacity | Plant & machinery | Working capital | Cost of Project | T.C.I | Return | Break even |
|---|---|---|---|---|---|---|
| Sulphuric Acid 98%: 150 MT Per Day, Oleum 65%: 50.5 MT Per Day, Oleum 23%: 60 MT Per Day, Steam by Product: 86.6 MT Per Day | 4200 | N/A | 6600 | 30 | 36 |
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