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The Age of Alchemy refers to a period time proceeding The Schism, and prior to the current events of the Oddworld Quintology in which the Glukkons attempted to disprove the Mudokon's claims to self divinity and being the Chosen Race. During this period the Glukkons formed their own isolated society: choosing to spend their times indoors in refusal of the sky and the accursed Mudokon Moon.
Mudokon Moon Revealed 
At this time of mysticism, one of the moons of Oddworld revealed itself to bear a mark of a Mudokon Handprint. With this, the Mudokons took this as a sign that they were the Chosen People over land. This outraged the Glukkons and they went to extreme lengths with their alchemy to disprove that theory and prove themselves as the Chosen People and the Mudokon Moon.
Denial and Disaster
The claims from the Mudokon people calling themselves the Chosen People infuriated the Glukkons and made them ashamed. With this, some Glukkons refused to look up into the sky to be reminded that they weren't as good as the Mudokons. The denial grew larger in mass; it led to the Glukkons going through great lengths to disprove the theory the Mudokons claimed. This event was known to us as the Age of Alchemy. With the Age of Alchemy in full swing, the Glukkons started to do all sorts of experiments to possibly prove the Mudokon Race wrong. They retreated into environments that were indoors and started to separate themselves from their once allies. This led to an unknown dilemma that resulted in various forms of disaster that would shift the Glukkons to who they are in Abe's Oddysee and beyond.
Shift in Ideology 
After the unknown experiment, the Glukkons faced a heavy loss by an unknown number; it was definitely a travesty. With their constant work inside various places that lacked sunlight and dwelled in darkness, the Glukkons underwent a stage of evolution which caused their eyes to glow in dark environments, as well as developing a sensitivity to sunlight. They started to abandon their spiritual customs of old and ditched their mysticism for a more scientific solution to their problems. This would be the stepping stone for the events of Abe's Oddysee and the enslavement of a majority of Mudokons.