Hydrogen Peroxide (H2O2) is an all-purpose, eco-friendly chemical used extensively as an oxidizing, bleaching, and disinfectant agent in various industries. Hydrogen Peroxide is a clear, colorless liquid with high oxidizing power, breaking down into oxygen and water, and thus a clean alternative to several hazardous chemicals. In pulp and paper, it is a choice bleaching agent because of its capacity to make high-quality, light-colored paper without toxic chlorine byproducts. It is used in textiles, treatment of wastewater, mining, food processing, medicine, and electronics, where high-purity grades are essential. Its use as a disinfectant also became major during and after the COVID-19 pandemic, adding to its significance in sanitation and hygiene. With increasing green awareness and more stringent laws against harmful chemicals, hydrogen peroxide emerged as a vital green solution aiding industrial operations and environmentally friendly practices. The global hydrogen peroxide market reached USD 3.5 Billion in 2024. According to IMARC Group, the market is projected to reach USD 4.6 Billion, at a projected CAGR of 3.15% during 2025-2033. Multiple drivers propel the international market for hydrogen peroxide, headed foremost by accelerating demand for environmentally friendly bleach agents in the paper and pulp as well as textile sectors. Greater awareness of sustainability and more stringent green laws are compelling industries to change from chlorine chemicals to hydrogen peroxide. The world's increased construction of wastewater treatment plants further spurs demand, as H2O2 is efficient in the elimination of organic impurities and minimization of toxic effluents. Healthcare, food security, and pharmaceuticals are also growth drivers, as hydrogen peroxide is a broad-spectrum disinfectant, antiseptic, and sterilizing agent. Pure-grade hydrogen peroxide finds broader applications in electronics and semiconductor production, led by the consumer electronics and renewable energy technology boom. Besides, the use of the chemical in propellants and green chemistry is a promising avenue for future growth. In total, sustainability, industrial growth, and growth in hygiene consciousness are the main drivers of the market.
One of our clients reached out to us to conduct a feasibility study for setting up a large-scale hydrogen peroxide manufacturing plant. We developed a comprehensive financial model for the setup and operation of a proposed Hydrogen Peroxide manufacturing plant in United States. This plant is designed to produce 1,020,000 tons of hydrogen peroxide annually.
Manufacturing Process: Production of Hydrogen Peroxide (H2O2) is mainly accomplished using the anthraquinone auto-oxidation process, which is very efficient and commonly used. The hydrogenation step is where the hydrogen gas reacts with a work solution of anthraquinone in a hydrogenation reactor to form anthrahydroquinone. The solution is next filtered to purge out any contaminants or catalyst residues prior to proceeding to the oxidation stage. On oxidation, air or oxygen is added, and anthrahydroquinone is reverted to anthraquinone with the concurrent production of crude hydrogen peroxide in the solution. The crude H2O2 is then extracted and purified by various processes to eliminate solvents and by-products. Distillation is then carried out for the desired concentration and purity. The hydrogen peroxide is then standardized and formulated into commercial concentrations of 35%, 50%, and 60%. Lastly, the product is sent to storage tanks and readied for shipment to end-use industries. The closed-loop process is very sustainable, as the anthraquinone working solution is recycled continuously, leaving little waste, and maximizing efficiency. The final product is a high-purity, eco-friendly product that can be used in various industrial and consumer applications.
Mass Balance and Raw Material Required: The primary raw materials used in the hydrogen peroxide producing plant include hydrogen, pure water, 2-EAQ, Solvesso-150/C10, TBU, stabilizer (Acetanilide), ortho phosphoric acid, activated alumina, catalyst (2%), and methanol. For a plant producing 1 ton of hydrogen peroxide, 350 Nm3 of hydrogen, 2.91 ton of pure water, 0.95 kg of 2-EAQ, 2.55 kg of Solvesso-150/C10, 0.84 kg of TBU, 0.33 kg of stabilizer (Acetanilide), 0.36 kg of ortho phosphoric acid, 10.91 kg of activated alumina, 0.02 kg of catalyst (2%), and 1.71 kg of methanol are required.
Our financial model for the hydrogen peroxide manufacturing plant was meticulously developed to meet the client’s objectives, providing an in-depth analysis of production costs, including raw materials, manufacturing, capital expenditure, and operational expenses. By addressing the specific requirements of producing 1,020,000 tons of hydrogen peroxide annually, we successfully identified key cost drivers and projected profitability, considering market trends, inflation, and potential fluctuations in raw material prices. This comprehensive financial model equipped the client with valuable insights into strategic decision-making, demonstrating our commitment to delivering high-quality, client-focused solutions that ensure the long-term success of large-scale manufacturing ventures.
IMARC is a global market research company that offers a wide range of services, including market entry and expansion, market entry and opportunity assessment, competitive intelligence and benchmarking, procurement research, pricing and cost research, regulatory approvals and licensing, factory setup, factory auditing, company incorporation, incubation services, recruitment services, and marketing and sales.
Under our factory setup services, we assist our clients in exploring the feasibility of their plants by providing comprehensive financial modeling. Additionally, we offer end-to-end consultation for setting up a plant in India or abroad. Our financial modeling includes an analysis of capital expenditure (CapEx) required to establish the manufacturing facility, covering costs such as land acquisition, building infrastructure, purchasing high-tech production equipment, and installation. Furthermore, the layout and design of the factory significantly influence operational efficiency, energy consumption, and labor productivity, all of which impact long-term operational expenditure (OpEx). So, every parameter is covered in the analysis.
At IMARC, we leverage our comprehensive market research expertise to support companies in every aspect of their business journey, from market entry and expansion to operational efficiency and innovation. By integrating our factory setup services with our deep knowledge of industry dynamics, we empower our clients to not only establish manufacturing facilities but also strategically position themselves in highly competitive markets. Our financial modeling and end-to-end consultation services ensure that clients can explore the feasibility of their plant setups while also gaining insights into competitors' strategies, technological advancements, and regulatory landscapes. This holistic approach enables our clients to make informed decisions, optimize their operations, and align with sustainable practices, ultimately driving long-term success and growth.
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