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'Oleochemicals' are chemicals derived from biological oils or fats. They are analogous to petrochemicals which are chemicals derived from petroleum. The hydrolysis or alcoholysis of oils or fats form the basis of the oleochemical industry.
The hydrolysis of the triglycerides composing oils and fats produces fatty acids and glycerol:
:RCOOCH₂-CHOOCR-CH₂OCOR + 3 H₂O → 3 RCOOH + HOCH₂-CHOH-CH₂OH
If oils or fats are made to react with an alcohol (R'OH) instead of with water, the process is alcoholysis (also called transesterification) and the products are fatty acid esters and glycerol:
:RCOOCH₂-CHOOCR-CH₂OCOR + 3 R'OH → 3 RCOOR' + HOCH₂-CHOH-CH₂OH
The fatty acid or fatty esters produced by these methods may be transformed further through additional processes:

★ Hydrogenation to convert unsaturated fatty acids into saturated fatty acids.

★ Reduction to convert the acids or esters into fatty alcohols