MOSCOW (MRC) -- Saudi Aramco has acquired the Converge polyol product line and associated operations and technologies from the US-based company Novomer Inc. According to Saudi Aramco, the transaction was valued at up to USD 100 million, as per GV.
Converge is manufactured from and contains a significant portion of carbon dioxide (CO2). The technology is said to provide a high-performance, cost competitive and more sustainable alternative to conventional petroleum-based polyols that are used in coating, adhesive, sealant, and elastomer (CASE) applications which feature in high-value, high-demand end-products, including within the flexible and rigid foam manufacturing segments. Applications cover a broad spectrum from automobile seats to building insulation panels.
Amin H. Nasser, Saudi Aramco President & CEO said: "Some of Saudi Aramco’s most significant achievements in recent years have been in developing new international partnerships in the downstream space. There is compelling industrial logic to the Converge polyol technology deal as it enables the conversion of waste CO2 into cleaner, high-value end-products with significant performance, cost and carbon footprint improvements. The deal also enables the development of new technological growth areas in line with Saudi Vision 2030 objectives of economic diversification and job creation."
Abdulaziz Al-Judaimi, the Acting Senior Vice President of Downstream, Saudi Aramco said: "The acquisition of the Converge technology reflects the success of Saudi Aramco’s efforts to continuously seek the best possible opportunity for the commercialization of specific downstream technologies on a large-scale. This technology represents an excellent marriage of improved product quality and lower cost while achieving environmental benefits." He added: "By providing access to reliable feedstock supplies, financial stability and unrivaled R&D investment and focus, Saudi Aramco will accelerate the commercialization of these exciting new polyol materials. This will help spur growth in the production of more sustainable finished and semi-finished products in the petrochemicals conversion sector, including within the small and medium enterprise sector in Saudi Arabia."
Compared to conventional polyols, Converge polyols have approximately one-third the carbon footprint, says the manufacturer. When incorporated into polyurethane formulations, they demonstrate superior material performance including: increased strength; increased abrasion, chemical and weather resistance; increased adhesion, hardness and tear-strength; greater load bearing capacity; and reduced heat of combustion.
Saudi Aramco will manufacture and market Converge and associated products through its subsidiary Aramco Performance Materials LLC (APM). Saudi Aramco is planning for full-scale production facilities in Saudi Arabia to support the manufacture of specialty and intermediate chemical products to supply a wide variety of industries.
As MRC informed before, in July 2016, Saudi Aramco and Saudi Arabian Basic Industries Corporation (SABIC) signed a heads of agreement to conduct a feasibility study on the development of a fully integrated crude oil-to-chemicals complex to be located in Saudi Arabia. The heads of agreement contains key principles of cooperation that will form the basis for the companies to establish a joint venture, if the joint study reaches a positive conclusion.
Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC