Braskem details sugar-cane PE plans

(Plastics Today) -- Braskem S.A. plans to have 200,000 tonnes/yr of production capacity for its sugar-cane based polyethylene (PE) online, with work on sugar-cane derived polypropylene (PP) and EPDM (ethylene propylene diene monomer) rubber ongoing. Leonora Novaes, green polymers commercial leader at Braskem, laid out her company's progress in commercializing a PE based on sugar-cane generated ethanol at TAPPI's PLACE 2010 Conference (April 18-21, Albuquerque, NM), as well as pointing out the material's greenness relative to fossil-fuel based polymers and some biobased ones.

Instead of corn or sugar beets, Braskem is utilizing sugar cane to create ethanol, which is then sent through a "dehydration" plant. As the name would suggest, that operation removes water from the ethanol, leaving ethylene in its place. Novaes said that for every one unit of fossil fuel put into the sugar-cane process, you end up with 9.3 units of energy. This compares quite favorably to the 1.4 units of energy output from corn or 2.0 units from sugar beets. In addition, Novaes described sugar cane as a "carbon capture" crop, saying its density and size, with mature plants reaching 10 feet, coupled with the fact that it will return annually for anywhere from 6-10 years without replanting, give it a net-negative carbon footprint. Novaes said that from 1 kg of fossil-fuel based PE, you get 2.5 kg of carbon dioxide, while 1 kg of Braskem's green PE actually captures 2.5 kg of carbon dioxide. Utilizing all portions of the plant, 1 hectare of land produces three tonnes of PE, with Novaes saying that the country's industrial sugar-cane production, which also supports its aggressive liquid fuels program, is not encroaching on rain forests.

The PE facility will utilize LyondellBasell's Hostalen reactor technology to create bimodal high-density polyethylene suitable for bottles, with nameplate capacity of 140,000 tonnes/yr. In addition, LyondellBasell Spherilene reaction technology will support a 60,000 tonnes/yr linear low-density PE line.

MRC

(plastemart) -- LyondellBasell could exit Chapter 11 bankruptcy, as early as next month, and list on the New York Stock Exchange (NYSE) from the middle of the third quarter of this year. The company plans to appeal to the New York bankruptcy court to approve and confirm its Plan of Re-Organization, on April 23. Exit financing is in place and is well received in the market as it was oversubscribed. LB's major creditors had agreed to convert debt into equity.

Along with the debt restructuring, the company had implemented very severe cost cutting, taking out 20% of fixed costs in 2009, amounting to US$800 mln - US$1 bln. Cost-cutting measures involved 3,000 redundancies, reduction in contractors, closure of the Chocolate Bayou cracker and polymer plants in Europe.

MRCMRC Reference

LyondellBasell. The share in the Russian market in 2008:
PE - 1.4% (including HDPE - 2.5%, LDPE - 0.3%);
PP - 4.1% (including block-copolymers - 9.5%).

Annual sales growth in Russia, during the recent 5 years:
PE - 27%;
PP - 88%.

The leader in the following polymers processing technologies:

pipe extrusion;

film extrusion;

injection molding.

(plastemart) -- News reports indicate that companies are evaluating major investments in refining and petrochemicals. Indonesia needs more capacities, as local PP capacity is able to meet only half of the country's demand of about 800,000 tpa. The interest in Indonesia comes amidst strong demand growth in the country and the constraints faced by Taiwanese majors in executing large refinery and cracker investments in China. Though Mainland China remains a preferred investment destination for Taiwanese companies, government restrictions on both sides prohibits this. Despite a patient wait for relaxation in the rules, the petrochem majors seem to be weighing other options. Taiwan's Chinese Petroleum Corp (CPC) is said to be planning a US$2.8 bln petrochemical complex at Kalimantan in Indonesia, chosen because of the availability of raw materials. CPC plans to team up with a local partner, either a private company or a state-owned enterprise such as oil and gas major PT Pertamina. A co-operation with Pertamina would ensure feedstock supply to the project.

Actual execution of the project by CPC remains uncertain, given a previous history when it had considered similar investment in Indonesia in 1996 but abandoned the plan after the economic crisis. The second project is co-operation between Chandra Asri, the country's sole cracker operator, and Pertamina for a refinery project. Pertamina has received a government directive to team up with other companies to build three refineries, each at a cost up to US$5 bln within 10 years, which would reduce the country's dependence on imported naphtha. Shortage of local naphtha has affected ability of local producers to compete with other regional players and made expansion projects unviable.

Other Indonesia petrochemical producers, such as Titan Petrochemical, Trans Pacific Petrochemical Industry, Tri Polyta and Polytama Propindo, are also said to looking at investments. However, it is uncertain is whether there is sufficient commitment and if smaller players have the money. Many of the petrochemical producers have other long-standing projects. For instance, Chandra Asri has been talking of a cracker expansion and an aromatics unit. Polytama is said to be looking at the expanding its polypropylene (PP) capacity from 280,000 tpa to to 440,000 tpa.

MRC

(Borealis) -- Borealis' Nepol≥ GB215HP, a tailor-made long glass fibre polypropylene (LGF-PP), is the material success behind BMW's development of up to 20% lighter, single material dashboard carrier solution for its latest 7 Series models. The lightweight carrier supports BMW's drive to simplify production and lower costs while improving its vehicles' fuel efficiency and environmentally-friendly profile.

Nepol GB215HP from Borealis, one of leading providers of chemical and innovative plastic solutions, is the only LGF-PP compatible with BMW's automated integral foam injection technology, known as SGI. SGI enables BMW to produce lightweight parts which exhibit the same performance profile as compact material and heavier parts.

BMW's choice of Borealis' 20% LGF-PP grade to replace its previous two-component dashboard construction has secured a number of advantages in addition to weight reduction.

MRCMRC Reference

Borealis. The share in the Russian market in 2008:

polyethylene - 4.1% (including HDPE - 4.7%, LLDPE в─⌠ 8.7%);
polypropylene в─⌠ 3.2% (PP-impact - 7.5%).

Annual sales growth in Russia over the last 5 years:
polyethylene - 11%;
polypropylene в─⌠ 6%.

Leader in polymers processing technologies:
extrusion coating;
cable extrusion;
injection molding.

(plastemart) -- USA's third largest oil company ConocoPhillips has pulled out of a new plant with Saudi Aramco in the Middle East. The chief reason behind the withdrawal is its strategy to reduce its refinery operations on demand erosion by the global economic slowdown. The two partners had plans to build a 400,000 bpd refinery in Yanbu Industrial City, Saudi Arabia. Yanbu accounts for just under a quarter of Saudi plans to add around 1.7 mln bpd refining capacity, as per Reuters. Conoco, like other major oil refiners, has seen profits shrink at its plants producing gasoline and diesel fuel from crude oil. The US oil major decided that the project was not consistent with its current strategy to reduce downstream footprint. Conoco sold its stake in a Canadian oil sands project to Sinopec for US$4.65 bln as part of its program to sell US$10 bln in assets to help reduce its heavy debt burden. Since Conoco is looking to make upstream 85% of its business, they will benefit from the cancelled project. Aramco plans to go ahead with the plant despite Conoco's withdrawal.

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