Huayi picks technology from Dow, JM for butanol plant to be built in China

MOSCOW (MRC) -- Guangxi Huayi New Material Co. (Huayi) has selected LP Oxo Selector 10 technology, licensed through Dow and Johnson Matthey (JM), for a new butanol facility planned in China, according to Apic-online.

The project, to be built at Huayi's integrated petro-chemical complex in Qinzhou Port, China, will have 300,000 t/y of butanol capacity. An expected start-up date was not given.

LP Oxo Selector 10 technology "enables the efficient production of butanol with low capital investment and operating cost," Dow and JM noted.

The technology partners provide its licensees customized plant designs, performance warranties, technical support pre- and post-plant start-up, ongoing technology updates, and more.

As MRC reported earlier, Dow plans to install a new furnace in its steam cracker at Fort Saskatchewan, Alberta, Canada, increasing its ethylene capacity, currently 1.42 million metric tons/year (MMt/y), by 130,000 metric tons/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC

Mitsubishi Chemical to combine group companies in Singapore

MOSCOW (MRC) -- Singapore?Mitsubishi Chemical Corp. (MCC) will merge its three group companies in Singapore into one consolidated company, Mitsubishi Chemical Asia Pacific Pte. Ltd., on 1 Apr. 2020, as per Apic-online.

The three businesses to be consolidated include Mitsubishi Chemical Performance Polymers Asia Pacific Pte. Ltd., Mitsubishi Chemical Asia Pacific Pte. Ltd. and Nippon Gohsei Asia Pacific Pte. Ltd.

Combining the three companies "will contribute to the mutual sharing and consolidation of know-how and resources, with which we aim to improve on our comprehensive business prowess," MCC noted.

As MRC informed earlier, Mitsubishi Chemical has a steam cracker in Kashima with an ethylene production capacity of 564,000 mt/year. It shut one steam cracker there in 2014 - which has an ethylene production capacity of 375,000 mt/year -- following a sluggish petrochemical demand in the country.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

Mitsubishi Chemical with headquarters in Tokyo, Japan, is a diversified chemical company involved in petrochemicals, polymers, agrochemicals, speciality chemicals and pharmaceuticals. The company's main focus is on three business pillars: petrochemicals, performance and functional products, and health care.
MRC

Evonik completes acquisition of US Wilshire Tech

MOSCOW (MRC) -- Evonik has concluded a purchase agreement to acquire Wilshire Technologies Inc. Headquartered in Princeton NJ (USA), Wilshire Technologies supplies phytochemicals and derivatives to the global cosmetic and pharmaceutical industries, said the company.

The new home for the cosmetics part of Wilshire’s product portfolio will be in Evonik’s Care Solutions business line. The purchase price will not be disclosed.

Wilshire Technologies has developed a strong technology which obtains products based on renewable and non-animal-origin sources. Utilizing more sustainable and renewable sources for cosmetic ingredients has become an extremely important criteria that many personal care companies in the market today are aiming for. This acquisition, which comprises approximately 10 employees, and marks a substantial addition to Evonik’s sustainable cosmetic active ingredients portfolio. Evonik’s Care Solutions business will be able to expand its product range into phytochemicals, such as plant derived cholesterol, as a replacement for animal originated ingredients in cosmetic active ingredients. This move supports the ongoing transformation of Evonik’s cosmetics ingredients portfolio towards sustainability and natural-based ingredients.

Additionally, Evonik’s Health Care business line will also benefit, from an enhanced portfolio for its naturally derived excipients and intermediates for pharma and food applications. With the acquisition of Wilshire Technologies and its innovative products for the cosmetics, pharmaceutical and food ingredients markets, Evonik is strengthening its focus on its “Health & Care” growth engine, established to meet the increasing demands from customers towards the global trend of more bio-based and sustainable products.

"With Wilshire’s unique products which replace animal origin ingredients and intermediates, we are moving another step forward with our development of a more diverse portfolio of sustainable active ingredients," said Dr. Tammo Boinowitz, head of the Care Solutions business line at Evonik. "This latest acquisition allows us to continue our efforts in fortifying the flexibility of our products and technology platforms, while providing our customers with the bio-based products their markets demand,” said Boinowitz.

"We are looking forward to expanding the presence of our products across these global industries," said Joe San Filippo, CEO and founder of Wilshire Technologies Inc. He believes that Wilshire’s expertise, innovative portfolio and technologies will provide outstanding opportunities for intensifying Evonik’s competences in the fields of phytochemical ingredients and intermediates for the continuously developing cosmetic and health care industries.

As MRC informed earlier, Evonik resumed full operation at its 10 plants and four offices in China, said the company. Since its outbreak, Evonik has been closely monitoring situation. In order to protect our employees and ensure safe operations, we are taking various measures according to the national and local disease control requirements.

As per MRC's ScanPlast, Russia's overall production of polyvinyl chloride (PVC) reached 975,000 tonnes in 2019, up by 2% year on year. At the same time, not all Russian producers raised their output. December total production of unmixed PVC was about 81,400 tonnes versus 84,600 tonnes a month earlier, RusVinyl decreased their capacity utilisation in November. Overall PVC production reached 975,000 tonnes in January-December 2019, compared to 958,600 tonnes a year earlier. All plants raised their output, except for Kaustik Volgograd.

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world. In fiscal 2018, the enterprise with more than 32,000 employees generated sales of €13.3 billion and an operating profit (adjusted EBITDA) of €2.15 billion from continuing operations.


Wilshire Technologies was founded in 1997 by former Rutgers professor, Joe San Filippo, who has over 35 years of product development experience in this field. The company’s broad portfolio provides cosmetic and pharma actives that come from natural and renewable sources.

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world. In fiscal 2018, the enterprise with more than 32,000 employees generated sales of EUR13.3 billion and an operating profit (adjusted EBITDA) of EUR2.15 billion from continuing operations.

Evonik regards China as one of the driving forces of the global economy and we consequently endeavor to grow our business here. The company now employs over 2,500 employees and has in total of 10 production sites in China.

Wilshire Technologies, of Princeton, New Jersey, was founded in 1997 by a former Rutgers University professor, Joe San Filippo.
MRC

German firms Bayer and BASF fight USD265m US fine over weedkiller

MOSCOW (MRC) -- German chemical giant Bayer is to appeal against a Missouri court's award of USD265m (203m) to a US peach grower who blamed a herbicide for crop damage, said BBC.

Farmer Bill Bader sued Bayer and BASF, alleging that dicamba weedkiller drifted onto his orchard from nearby fields, destroying them. It is the first ruling in some 140 US cases against dicamba, a herbicide blamed for extensive crop damage.

Bayer says its herbicides pose no unreasonable risk if used correctly. The US agrochemical giant Monsanto, bought by Bayer for $63bn in 2018, sells dicamba-based herbicide and a similar, much-criticised product, Roundup.

US lawsuits against Monsanto's weedkillers may cost Bayer billions of dollars in damages.

It is not yet clear how Bayer and BASF may share the cost of the Missouri damages. BASF said it would "use all available legal resources" to fight Saturday's ruling by a federal district court in Cape Girardeau, Missouri.

The firms were ordered to pay Mr Bader USD15m in actual damages and USD250m in fines. He argued that his 1,000-acre (405-hectare) orchard was destroyed by dicamba. In a statement on Monday, Bayer said it "clearly disagrees with the jury's verdict and is very disappointed".

"We will swiftly appeal the decision. While we have great empathy for any farmer who suffers from crop losses, in the case of Mr Bader there was no competent evidence presented which showed that Monsanto's products were present on his farm and were responsible for his losses."

Dicamba-based herbicides have been blamed for damage to thousands of hectares of crops in US Midwestern states. In November 2018 the US Environmental Protection Agency (EPA) imposed restrictions on dicamba use, because of the farmers' concerns.

Bayer insists that Monsanto herbicides are safe and "valuable tools for growers". The herbicides "do not pose any unreasonable risk of off-target movement when used according to label directions", the firm says.

As MRC wrote earlier, BASF, the world's petrochemical major, has restarted its No. 1 steam cracker following a maintenance turnaorund. Thus, the company resumed operations at the plant on September 30, 2019. The plant was shut for maintenance in mid-August, 2019. Located at Ludwigshafen in Germany, the No. 1 cracker has an ethylene production capacity of 235,000 mt/year and a propylene production capacity of 125,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF generated sales of around EUR63 billion in 2018.

MRC

U.S. EPA consulting White House over biofuel waiver program

MOSCOW (MRC) - The U.S. Environmental Protection Agency is seeking White House guidance on the future of its controversial biofuel waiver program after a court ruling cast doubt over its legitimacy, and aims to announce a decision by early next month, said Hydrocarbonprocessing.

In late January the U.S. Court of Appeals for the 10th Circuit said the EPA must reconsider some waivers it gave oil refineries exempting them from the nation's biofuel blending laws

The exemption program has saved oil refineries hundreds of millions of dollars in regulatory costs. But it has infuriated the corn and biofuel industries, which say the Trump administration has overused the exemptions in a way that undermines demand for corn-based ethanol. The oil industry refutes that the exemptions hurt ethanol demand.

The EPA will announce a response to the court's decision by March 9 after consultations with the White House, according to the source, who asked not to be named. "EPA and (the Department of Justice) are reviewing the decision and carefully considering its potential impact on the program," EPA spokeswoman Molly Block said in a statement.

EPA Administrator Andrew Wheeler had told reporters this month that the ruling "has the potential of completely, of changing the small refinery program." Under the U.S. Renewable Fuel Standard (RFS), the nation's oil refineries are required to blend billions of gallons of biofuels such as ethanol into the nation's fuel pool, or buy credits known as RINs from those that do.

But the EPA can waive refiners' obligations if they prove compliance would cause them financial distress. According to the court's decision, the EPA overstepped its authority to grant waivers in the past for HollyFrontier's Woods Cross and Cheyenne refineries and CVR Energy's Wynnewood refinery because the refineries had not received exemptions in the previous year.

The court said the RFS is worded in such a way that any exemption granted to a small refinery after 2010 must take the form of an "extension." "This decision would deprive EPA of a critical tool used to help small refineries disproportionately impacted by the RFS," Chet Thompson, president of the American Fuel and Petrochemical Manufacturers trade group said. "We hope the EPA will appeal this ruling and at the very least limit its impact to the 10th Circuit."

According to EPA data, the agency granted seven biofuel waivers in 2015. That number rose to 35 in 2017 – meaning 28 waivers were given without having been given in a previous year. The EPA does not name the refineries that receive the waivers, arguing the information is confidential, but Reuters has reported that some have gone to small facilities owned by large companies like Exxon Mobil Corp and Chevron Corp .

Market participants are awaiting clarity on how the EPA will address the court's ruling. U.S. renewable fuel prices have more than doubled since the Jan. 24 court decision.

As MRC informed before, in September 2019, ExxonMobil announced plans to spend GBP140 million over the next two years in an additional investment program at its Fife ethylene plant, which has a capacity of more than 800,000 t/y.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC