Louisiana facility plans 2021 expansion to meet growing demand for renewable fuels

MOSCOW (MRC) -- – Honeywell announced that Diamond Green Diesel will expand its annual production capacity of renewable diesel using Honeywell UOP’s Ecofining™ process technology to meet growing demand for renewable fuels in North America and Europe. With the planned USD1.1 billion expansion, the Norco, La.-based facility will become one of the world’s largest renewable diesel plants, said the company.

Diamond Green Diesel, a joint venture of Valero Energy Corp. and Darling Ingredients Inc, currently is the largest commercial advanced biofuel facility in the United States, producing 275 million gallons per year of Honeywell Green Diesel™, a high-quality renewable fuel. The plant expansion is expected to be completed in late 2021, and will increase the facility’s annual production by nearly 150 percent, to 675 million gallons.

“Demand has steadily increased for renewable diesel in the United States, Canada and Europe as advanced biofuel mandates seek to reduce greenhouse gas emissions,” said Jim Andersen, senior business leader of Honeywell UOP’s Renewable Energy and Chemicals business. “With the expansion of its facility using our Ecofining technology, Diamond Green Diesel will continue to meet growing demand for low-carbon fuels, and become one of the largest plants in the world for producing those fuels."

With low carbon mandates in North America and Europe projected to continue driving strong demand and premium pricing for renewable diesel, the expansion will add a second, parallel plant adjacent to the existing facility. With the expansion, Diamond Green Diesel will also produce about 60 million gallons per year of renewable naphtha for the production of gasoline.

The Honeywell Ecofining process, developed in conjunction with Eni SpA, converts non-edible natural oils, animals fats and other waste feedstocks to Honeywell Green Diesel, which is chemically identical to petroleum-based diesel. Honeywell Green Diesel offers improved performance over commercial biodiesel and petroleum-based diesel, and can be used as a drop-in replacement in vehicles with no equipment modifications. It also features an 80 percent life cycle reduction in greenhouse gas emissions compared to diesel from petroleum, and features a higher-cetane diesel value to provide better engine performance with fewer emissions.

The biomass-based diesel produced by Diamond Green Diesel is a qualified Advanced Biofuel under the U.S. Environmental Protection Agency’s Renewable Fuel Standard, which requires a minimum volume of transportation fuels sold in the U.S. to contain renewable fuel as a way to reduce greenhouse gas emissions.

In addition to Ecofining technology, Honeywell has commercialized the UOP Renewable Jet Fuel Process™, which originally was developed to produce renewable jet fuel for the U.S. military. Honeywell Green Jet Fuel™ produced by this process technology can be blended seamlessly with petroleum-based fuel. When used in up to a 50-percent blend with petroleum-based jet fuel, Honeywell Green Jet Fuel requires no changes to aircraft technology and meets all critical specifications for flight.

As MRC informed earlier, Honeywell announced that PKN ORLEN has licensed the UOP MaxEne™ process, which can increase production of ethylene and aromatics and improve the flexibility of gasoline production.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.
MRC

MOSCOW (MRC) -- Saudi Aramco has restored full oil production and capacity to the levels they were at before attacks on its facilities on Sept. 14, the chief executive officer of its trading arm, Ibrahim Al-Buainain, said Reuters.

Oil output capacity was restored on Sept. 25, he told a conference in the United Arab Emirates’ city of Fujairah. Oil production was restored to its pre-attack level of about 9.7 million barrels per day or even “a little higher” to replenish inventories, he said.

Saudi Arabia pumped about 9.78 million bpd in August.

“By Sept. 25 we were able to restore all capacity that we had before the attacks,” Al-Buainain said.

The attacks targeted the Abqaiq and the Khurais plants, causing a spike in oil prices, fires and damage that halved the crude output of the world’s top oil exporter, by shutting down 5.7 million bpd of production.

Saudi Arabia has managed to maintain supplies to customers at levels before the attacks by drawing from its huge oil inventories and offering other crude grades from other fields, Saudi officials have said.

Aramco’s oil output capacity was restored to 11.3 million bpd, sources told Reuters last week.

Saudi officials have said Aramco will reach 12 million bpd of capacity by November.

Yemen’s Houthi group claimed responsibility for the attacks but a U.S. official said they originated from southwestern Iran and Riyadh blamed Tehran. Iran, which support the Houthis in Yemen’s war, has denied any involvement in the attacks.

As MRC reported before, a number of Saudi Arabia's companies, such as Tasnee, Sadara, Advanced Petrochemical and Saudi Kayan, announced a curtailment of feedstock to their petrochemical plants, including polyethylene (PE) and polypropylene (PP) facilities, by an average of 30-50% due to the attacks on key Saudi Aramco facilities on Saturday.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.
MRC

MOSCOW (MRC) -- Brazilian state-owned oil company Petroleo Brasileiro SA said it will meet global rules for lower sulfur content in all of its bunker fuel shipments starting from, well ahead of a 2020 deadline, said Hydrocarbonprocessing.

Petrobras, as the company is known, said in a statement that its bunker fuel would have a maximum sulfur content of 0.5% beginning Tuesday.

The International Maritime Organization will lower the sulfur content allowed in bunker fuel, used by ships, from 3.5% to 0.5% starting from 2020.

Petrobras began adjusting its refineries in April to comply with the rule and has already produced 1.2 million cubic meters of bunker fuel with sulfur content below the new limit, it said.

The company did not give a forecast for its annual production capacity for bunker fuel but said it would meet domestic Brazilian demand and export any surplus.

“The reduction of sulfur levels in bunker (fuel) offers Petrobras the opportunity to profitably increase its share of the global market,” Petrobras said in its statement.

As MRC informed earlier, in June 2019, Petroleo Brasileiro SA said it has signed a deal with local antitrust regulator CADE regarding the proposed sale of some of its refining installations. The company said the agreement will allow for increased competition in Brazil’s refining sector, by attracting new players to the business. Petrobras, as the oil firm is known, will sell eight refineries in seven different Brazilian states.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

MOSCOW (MRC) -- North Huajin Chemical has taken off-stream its polypropylene (PP) unit in Liaoning, said Apic-online.

A source in China informed that the company has commenced turnaround at the unit on September 20, 2019. Further details on duration of shutdown was not available.

Located in Liaoning province, China, the plant has a production capacity of 50,000 mt/year.

According to MRC's ScanPlast report, the estimated consumption of PP in the Russian market totalled 694,210 tonnes in January-June 2019, up by 14% year on year. The supply of propylene block copolymers (PP-block) and propylene homopolymers (PP-homo) increased.

North Huajin Chemical Industries Group Corporation develops, manufactures, and markets fertilizers, synthesis resins, ethylene, methanol, and dimethyl in China. The company also manufactures PVC plastic windows and doors, functional membranes, PVC-U section materials, and laminated plastic woven bags. Its fertilizer products include urea and slow release urea for use in agriculture, husbandry, and fishery markets. North Huajin Chemical Industries Group Corporation was founded in 2002 and is based in Panjin, China.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global chemical and specialty materials company, is progressing in restarting on-site production units after experiencing an emergency incident on Saturday, September 21, at its Clear Lake facility in Pasadena, Texas, said the company.

The Fairway Methanol unit has restarted and is approaching full operating rates. The acetic acid and vinyl acetate monomer production units are planned for restart at reduced rates during October, with full operating rates expected for all production units at Clear Lake within the fourth quarter of 2019. Shipping operations at Clear Lake and associated terminals continue to operate without interruption.

Celanese is assessing the potential impact of the incident on available product volumes. As part of its on-going commitment to provide reliable supply, Celanese is utilizing its global network capabilities to provide product to its contract customers and will keep its customers updated on any developments.

The Company will provide further updates on the status of its Clear Lake operations as well as financial impact to 2019 when it reports third quarter results.

As MRC informed earlier, Celanese Corporation experienced an emergency incident at approximately 12:00 noon Central time on Saturday, Sept. 21, at the Celanese Clear Lake facility in Pasadena, Texas.

According to MRC's DataScope report, July EVA imports to Russia increased by 4% year on year to 3,490 tonnes from 3,350 tonnes in July 2018, and overall imports of this grade of ethylene copolymer into the Russian Federation decreased in January-July 2019 by 14, 3% year on year to 22,440 tonnes (26,170 tonnes in the first seven months of 2018).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2018 net sales of USD7.2 billion.
MRC