Dongguan Grand to shut production at PDH plant for maintenance

MOSCOW (MRC) -- Dongguan Grand Resource Science and Technology Co Ltd (JuZhengYuan) is planning to shut its propane dehydrogenation (PDH) plant for scheduled maintenance by the beginning of July 2020, reported CommoPlast with reference to market sources.

Based in Dongguan, China, the company has a PDH plant with production capacity of 600,000 tons/year and two polypropylene (PP) plants with a combined production capacity of 600,000 tons/year.

As MRC informed earlier, Dongguan Grand Resource Science and Tech restarted its PDH plant on January 17, 2020. The plant was shut for maintenance on January 6, 2020.

Propylene is the main feedstock for the production of PP.

According to MRC's ScanPlast report, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.

Dongguan Grand Resource Science and Technology Co Ltd is owned by Juzhengyuan Energy (Shenzhen, Guangdong, China). On 26 October 2019, Dongguan Grand Resource’s (Dongguan, Guangdong, China) integrated complex for polypropylene production in Dongguan officially started up.
MRC

Ningxia Baofeng starts up new methanol unit in Ningxia province

MOSCOW (MRC) -- Johnson Matthey (JM) announced that Ningxia Baofeng Energy Group has "successfully" commissioned a new methanol plant at Ningxia Baofeng's 600,000-t/y coal-to-olefins complex in Ningxia Province, China, according to Apic-online.

The 6,600-t/d methanol unit, based on technology from JM, utilizes syngas feedstock and combines advanced JM catalysts to produce stabilized methanol, which is used to produce olefins in a downstream facility.

"This project has incorporated processing technologies from the most advanced international and domestic coal-to-chemical units," said Liu Yuanguan, president of Baofeng Energy.

"The unit is the largest methanol plant for a single train with comprehensive advantages of high synthesis and energy efficiency and low OPEX and emissions, benefiting both our society and providing long-term value."

As MRC reported earlier, in late April, 2020, the first phase of Connell Chemical Industry Ltd.'s 600 KTA MTO complex, a 300 KTA MTO plant, successfully started up and produced on-spec ethylene and propylene. This project is the first large-size chemical project brought online during period when Chinais in the process of restarting the economy while fighting COVID-19 pandemic. The MTO plant started feed-in at 8:18 AM on April 15, produced on-spec propylene at 7:00 AM on April 18, and produced on-spec ethylene at 4:00 AM on April 20.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
MRC

Consortium outlines major CO2 capture, feedstocks project in Austria

MOSCOW (MRC) -- Borealis, OMV, Verbund, and LafargeHolcim subsidiary Lafarge Zementwerke have signed a memorandum of understanding (MOU) for the joint planning and construction of a full-scale carbon-capture plant in Austria by 2030 that would process carbon dioxide (CO2) into renewables-based feedstock for olefins, plastics, and synthetic fuels, said Chemweek.

The proposed three-phase project, dubbed ‘Carbon2ProductAustria’ (C2PAT), would significantly cut emissions from cement production, establishing CO2 as a valuable raw material, they say in a joint statement. No investment figure for the project has been given at this time.

The collaboration aims to create a cross-sectorial value chain and the operation of a full-scale plant by 2030, with the facility planned to capture almost 100% of the 700,000 metric tons/year of CO2 emitted at a cement plant owned and operated by Lafarge in Mannersdorf, Austria.

The CO2 would, in combination with green hydrogen produced using renewable sources by Verbund, be converted by OMV into renewable-based hydrocarbons. These would then be used by OMV to produce renewable-based synthetic fuel, or renewable-based olefins at its Schwechat refinery to be utilized by Borealis as feedstock at its polymerization plant at Schwechat to manufacture value-added plastics, according to the companies. The partners “aim to investigate a truly circular approach: with Borealis being a key partner, the captured CO2 can be used for the production of renewable-based, value-added plastics. These plastics are especially suited for recycling at the end of their lifetime, and with this, enable a nearly closed CO2 loop,” they say.

The first phase entails the evaluation and development of a joint strategy for project development, business modelling, and process engineering. A second phase could see a cluster of industrial pilot plants in Austria developed by 2023, while the third phase would see a full implementation of the project to the industrial-scale 700,000-metric tons/year target, according to the consortium. The success of the project will “largely depend on whether the right financial and regulatory framework conditions are created both at the EU and Austrian national level," it says.

The project also demonstrates that “economic viability and climate protection go hand-in-hand based on new technologies. CO2 is not just a greenhouse gas that we have to reduce. It is also a valuable raw material from which we can produce synthetic fuels and feedstock for the chemical industry,” says Rainer Seele, chairman of OMV’s executive board and CEO.

“The plastics industry can be a powerful contributor to climate action, through materials replacement that reduces weight, by minimizing food waste, and by shifting to well-designed circularity that reduces CO2 emissions,” says Borealis CEO Alfred Stern.

Verbund, Austria’s largest electricity company, would supply the green hydrogen—produced when water is electrolyzed using electricity from renewable sources—to recycle the CO2. “Green hydrogen offers huge potential for decarbonizing CO2-intensive industrial processes. In order to reach our national and global climate goals we have to collaborate across sectors and join our efforts for decarbonization and climate neutrality,” says Verbund CEO Michael Strugl.

“We have worked consistently and successfully on the reduction of the CO2 footprint of our cement plants, products and solutions. Ultimately, CO2-neutral cement production can only be possible with the implementation of breakthrough technologies, like carbon capture, which is why we have great expectations for the C2PAT project,” says Lafarge CEO Jose Antonio Primo.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries.


MRC

Naphtha supply to tighten on lower refinery output

MOSCOW (MRC) -- Naphtha output is forecast to stay tight into 2021 as destruction of fuel demand caused by COVID-19 curbs refinery throughput and caps supply of the dominant feedstock for ethylene production, according to Premasish Das, executive director at IHS Markit, said Chemweek.

About 75% of naphtha, the feedstock for more than 40% of ethylene produced worldwide, comes from refineries. But “refineries do not run based on how much naphtha they want to produce. They run based on how much other key refined products they need to produce,” says Das, speaking today at IHS Markit’s Asia NGLs and Naphtha Conference Online.

The pandemic slashed worldwide demand for refined products including gasoline, jet fuel, and fuel oil by nearly 18 million b/d, prompting refiners to cut throughput by 15-16% in April alone. Some have continued to idle plants or extend scheduled maintenance works, Das says. Gasoline is the most impacted refined product in volume terms and with direct blending accounting for about 30% of global light naphtha demand, the lower blending demand outlook for the second and third quarters of this year has a direct impact on naphtha, he says.

Steam cracking demand for light naphtha, however, is expected to hold up with demand for petrochemicals proving more resilient than transportation fuels. Further support for naphtha is coming from unfavorable liquefied petroleum gas (LPG) cracking economics because of tight gas supply, he notes. “The pull for naphtha will continue to be strong from the petrochemical industry," Das says.

Based on IHS Markit modelling, the shortfall in light naphtha supply will continue to grow in the second half of 2020 and peak in the fourth quarter owing to reduced refinery runs and lower production of natural gasoline, he says. While the shortfall is forecast to contract as refiners ramp up runs to meet post-pandemic demand recovery, the deficit in 2021 is still expected to be higher than in 2019, he adds.

One way for refiners to help alleviate the tightness in light naphtha supply is to back blend excess heavy naphtha, used for aromatics production and gasoline blending, into light naphtha, according to Das. Additional heavy naphtha can come from jet fuel optimization, the demand for which will take the longest to recover. “Refiners would try to minimize jet production by putting the front, or lighter end, of jet fuel into the heavy naphtha stream,” Das says, adding that each refinery runs a different optimization mode.

We remind that, in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
MRC

DSM takes over part of Clariant 3D printing business portfolio to expand rapid market-driven product development solutions

MOSCOW (MRC) -- Royal DSM, a global purpose-led, science-based company in Nutrition, Health and Sustainable Living, and Clariant, a focused, sustainable and innovative specialty chemical company, announced an agreement for DSM to take over certain parts of Clariant’s 3D printing business portfolio, said Chemweek.

The agreement allows DSM to offer customers rapid product development iterations for filaments and pellets based on application needs. As additive manufacturing technology is increasingly adopted for industrial production, customers are looking for materials to match their existing product portfolio and production processes. The combination of DSM’s filament and pellet capabilities and former Clariant 3D printing activities will be able to better serve those needs, bringing customers quick tweaking of high performance filaments and pellets based on market needs.

The upcoming integration of these assets enables DSM to strengthen its engineering grade filament, pellet and powder portfolio. Customers will also benefit from faster product tweaks based on application needs thanks to the Clariant team’s experience in fast and market-driven product development using a dedicated, highly flexible and high-speed compounding setup. The transaction includes part of Clariant 3D printing team, selection of their portfolio and pipeline of engineering-grade filament and pellet materials and customer relations, expertise in powder development, and a small production line for fast ramp-up of small batches.

Hugo da Silva, Vice President Additive Manufacturing at DSM, commented: “We are very excited about welcoming the new team members and the expertise they bring to expand our service offering. We share the same focus on customer needs and have complementary expertise and portfolio. Together we can fulfil market needs faster and with a broader materials toolbox, and realize further the potential of additive manufacturing to the manufacturing world."

"After thorough strategic review, Clariant concluded that its 3D printing materials business was no longer aligned with its strategic focus. While we will continue to serve the 3D printing market with our high quality additives and flame retardants, we are confident that DSM is the ideal new home for parts of Clariant’s tailored 3D printing materials business to continue its successful development. I look forward to seeing them thrive,“ said Richard Haldimann, Head of Sustainability Transformation at Clariant.

As MRC reported earlier, in June 2020, TechnipFMC and Clariant Catalysts entered into a joint development agreement for the demonstration and commercialisation of Clariant’s new state-of-the-art AcryloMax propylene ammoxidation catalyst for the production of acrylonitrile (ACN).

Besides, in May 2020, Clariant’s CATOFIN catalysts was selected by Advanced Global Investment Co. (AGIC), a joint venture between Advanced Petrochemical Company (APC) and SK Group, to build a PDH facility in the Middle East.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC