Alberta announces grant-based Petrochemical Incentive Program

MOSCOW (MRC) -- The Province of Alberta, Canada, today announced the Alberta Petrochemicals Incentive Program (PIP), a 10-year, grant-based initiative to attract petrochemical investment, said Chemweek.

Details are still being worked out, and the official launch is scheduled for fall. The new program is significantly different from the Petrochemical Diversification Program, which invited project proposals to compete for feedstock royalty credits. Instead, every project that meets the PIP’s criteria will receive funding if built and operational within 10 years.

"Compared to previous government petrochemical programs, the Alberta Petrochemicals Incentive Program will cut red tape and increase certainty and flexibility for investors, attracting more financial investment into Alberta’s petrochemicals sector," says a government statement.

Grants allow companies to better account for the full value of the incentive when calculating a project’s return on investment, the statement notes. Additionally, the grants will not be subject to a private evaluation by the government, and the 10-year window will allow projects to align with typical business investment cycles.

As MRC informed before, global oil consumption cut by up to a third in Q1 2020. What happens next in the oil market depends on how quickly and completely the global economy emerges from lockdown, and whether the recessionary hit lingers through the rest of this year and into 2021.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

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 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.

MRC

Clariant Catalysts powers Ineratec green fuel production technology

MOSCOW (MRC) -- Clariant has joined forces with Ineratec in the challenge for a greener future. The companies have entered a partnership to develop and commercialize novel technologies for the production of renewable fuels and chemicals, as per Hydrocarbonprocessing.

Clariant will provide its extensive catalysis expertise and broad portfolio of syngas conditioning and upgrading catalysts to support Ineratec’s groundbreaking gas-to-liquid technology.

Stefan Heuser, Senior Vice President & General Manager at Clariant Catalysts, commented on the partnership, stating, “We are honored to support Ineratec in their pioneering work in sustainable fuel production. Their state-of-the-art, container-sized gas-to-liquid technology has great potential for the decentralized fuel market, and we are excited to contribute with our tailor-made syngas catalyst innovations.” Tim Boeltken, Co-founder & Managing Director of Ineratec, added, “We are very proud to announce Clariant among our catalyst partners, and would like to thank them for joining us in creating a more sustainable future.”

Ineratec, a spin-off of the Karlsruhe Institute of Technology (KIT), is specialized in modular chemical reactor technologies for producing sustainable fuels and chemicals. The striking feature of this company’s solution is that the entire chemical process is realized in transportable container units. Their gas-to-liquids process combines hydrogen generated from renewable power, with greenhouse gases (such as CO2), to form CO2-neutral synthetic hydrocarbons and fuels.

The technology relies on Clariant’s catalysts to convert CO2 to valuable chemicals, fuels, and additives:

- Clariant’s HyProGen R-70 produces renewable syngas via reverse water-gas-shift – an essential step in the conversion of “green hydrogen” and CO2 to “green fuels”;
- Clariant’s signature methanol catalyst, MegaMax®, generates renewable methanol, which can be used as fuel additive, solvent, or as raw material for “green chemicals” such as “green polypropylene”;
- for the production of renewable synthetic natural gas (SNG), the catalyst METH 134 supports the efficient hydrogenation of CO2 to methane.

The microstructured core of the modular Ineratec reactors provides a large surface for heat and mass transport. Highly exothermic reactions, such as methanol synthesis or CO2 hydrogenation, can be operated efficiently and safely in compact container-sized plants. This enables outstanding reactor productivity, with high conversion per reactor pass. Due to this innovative chemical reactor technology for renewable energy, Ineratec was awarded the German Entrepreneur Award 2018.

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 was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively 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

Tight supply, steady petchems demand keeps northwest Europe naphtha firm in June

MOSCOW (MRC) -- The naphtha market in northwest Europe (NWE) maintained its upward thrust in June as reduced flows from Russia tightened availability amid buoyant petrochemical buying interest, which has offset weak demand from the gasoline blending sector, said Chemweek.

The average OPIS CIF NWE naphtha spot price in June rocketed up to USD341.70/metric ton in June, a gain of USD94/metric ton or 24.6% from May, while the Brent futures marker average of USD40.56/barrel (bbl) in June was up USD3.73/bbl or 9.2% from the previous month.

The naphtha crack flipped into positive territory in June for the first time in 18 months, reaching a high of USD1.10/bbl after starting the month at minus USD4.23/bbl, according to OPIS data. The June/July backwardation widened as the month progressed, ending at USD12.50/metric ton tipping from a contango structure in the first half of June of around minus 43 cents/metric ton.

Low refinery runs in Europe and fewer exports from Russia were attributed to tighter supply of naphtha, with reduced imports from the US seen as a further contributory factor. “The main bullish signal for naphtha which hasn’t really changed is supply,” says one source. "Supply, supply, supply."

Naphtha loadings in the European region, including northwest Europe, the Russian Baltic and Black Sea, other Baltic, Mediterranean, and North Africa, fell to 2.23 million metric tons in June from 3.12 million metric tons in May, according to data from IHS Markit’s Market Intelligence Network (MINT) vessel tracking service.

Analysis of Russian naphtha liftings from Baltic and Black Sea ports indicated that the drop was sharply more pronounced for the Black Sea. Naphtha exports from Russian Black Sea ports plunged 821,542 metric tons compared to the prior month to 355,000 metric tons in June, the equivalent of 10 long-range, 80,000-metric ton, cargoes. The reduction came namely as Tuapse, a key supply hub for arbitrage cargoes to Asia, shipped just 165,000 metric tons in June, a decline of 726,000 metric tons from May.

Russian Baltic naphtha exports decreased by 33,404 metric tons from May’s total to 768,100 metric tons in June. The Baltic terminal Ust Luga, which accounted for 59.9% of Russia’s total naphtha exports in May and is the main source of NWE naphtha imports, registered a 21,267-metric ton decline to 673,100 metric tons in June.

The naphtha market in Asia, despite the return of its traditional refiner sources in the Arabian Gulf and India over the month from turnarounds, continued to exert a strong pull on cargoes from Europe with arbitrage volumes to Asia little changed. Naphtha volumes in Europe loading for ports in Asia were tracked at 922,800 metric tons in June, compared with 969,000 metric tons for May.

Naphtha demand in Europe held firm in June with crucial support coming from petrochemicals as gasoline/blending demand was very weak to non-existent. Steam crackers have not reduced run rates as much as refineries owing to the need for plastic hygienic products amid the COVID-19 pandemic, according to IHS Markit analysts, and a strengthening ethylene and propylene market in Europe have both helped keep cracker margins sturdy.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

EU strategy places chemical industry at heart of future hydrogen economy

MOSCOW (MRC) -- The European Commission’s newly-unveiled strategy to scale up renewable hydrogen projects to help meet the EU’s 2050 net-zero emissions goal places the chemical industry at the center of Europe’s future hydrogen economy, according to Cefic director general Marco Mensink, said Chemweek.

“As one of the largest producers and consumers of hydrogen in Europe, it is a vital first step to see that these new strategies place our sector at the heart of Europe’s future hydrogen economy," Mensink says, following the publication today of the EU’s hydrogen and energy sector integration strategies. "Next to being an alternative fuel and energy carrier, hydrogen can become an important low-carbon building block for the chemical industry’s production processes; using hydrogen as a feedstock is a viable option for our industry to reduce CO2 emissions further,” he says. The chemical sector supports the envisaged energy sector integration and is ready to share its knowledge of hydrogen production and consumption to help the commission and member states to implement the strategies, he adds.

"We agree that building up a hydrogen economy in Europe requires a full supply chain approach. The success of a climate-neutral Europe by 2050 and that of renewable hydrogen will depend on the availability of reliable and affordable low-carbon electricity,” according to Mensink. Supporting investments into both hydrogen infrastructure and renewable electricity “should become an integral part of the recovery plan for Europe," he says.

Mensink last week urged the EU to get the Green Recovery package going as soon as possible to “make sure the trillions we are going to spend will benefit the EU industry, and we don’t outsource production of climate-neutral solutions to the outside world."

The European Commission’s roadmap aims to boost green hydrogen use for decarbonization, using mainly wind and solar power, including its deployment in industrial sectors such as chemicals and steel. It also recognizes the need for a phased, gradual approach with blue hydrogen to play a transitional role.

In an initial phase from 2020-2024, the commission says it will support the installation of at least six gigawatts of renewable hydrogen electrolyzers in the EU, producing up to one million metric tons of renewable hydrogen. A second phase envisages at least 40 gigawatts of renewable hydrogen electrolyzers would be installed, with up to 10 million metric tons of renewable hydrogen to be produced in the EU from 2025-2030. “From 2030 to 2050, renewable hydrogen technologies should reach maturity and be deployed at large scale across all hard-to-decarbonize sectors,” it says.

"The new hydrogen economy can be a growth engine to help overcome the economic damage caused by COVID-19," says Frans Timmerman, executive vice president for the European Commission’s Green Deal.

The European Commission also says energy efficiency will be a priority, along with a greater use of electricity and promoting clean fuels, including renewable hydrogen and sustainable biofuels and biogas.

The commission also announced the launch today of the European Clean Hydrogen Alliance, which will bring together national and regional governments, industry leaders, society, and the European Investment Bank to help scale up domestic production of green hydrogen. The alliance will “develop a pipeline of concrete projects to support the decarbonization efforts of European energy-intensive industries such as steel and chemicals,” says Thierry Breton, European commissioner for the internal market. An industry blueprint estimates hydrogen investments of up to €430 billion (USD485.5 billion) until 2030, according to the alliance.

As MRC informed before, global oil consumption cut by up to a third in Q1 2020. What happens next in the oil market depends on how quickly and completely the global economy emerges from lockdown, and whether the recessionary hit lingers through the rest of this year and into 2021.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

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 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

Air Products, Thyssenkrupp to collaborate on green hydrogen projects

MOSCOW (MRC) -- Air Products says it has agreed to collaborate exclusively with Thyssenkrupp on the development of green hydrogen supplies for sustainable chemicals, transportation, and power generation projects, according to Chemweek.

Thyssenkrupp’s subsidiary Uhde Chlorine Engineers, a leader in large-scale electrolysis plant technologies, will supply specific engineering, equipment, and technical services for water electrolysis plants to be built, owned and operated by Air Products.

The strategic agreement “is an important element of our value chain in developing, building, owning, and operating world-scale projects and supplying green hydrogen for mobility, energy and industrial applications,” says Air Products COO Samir Serhan.

Large-scale electrolysis is a “key technology to connect renewable power to the different sectors of mobility and industry,” says Denis Krude, CEO at Thyssenkrupp Uhde Chlorine Engineers. “We are proud to cooperate with Air Products in making value chains for fuels, chemicals, and industry feedstocks sustainable.”

As MRC reported earlier, in December 2014, SIBUR-Khimprom (a subsidiary of SIBUR Holding) and Air Products entered into an agreement to build a new air separation unit in Perm and to supply the facility with locally produced gases. The unit came on-stream in 2016. After the commissioning Air Products will supply industrial gases for SIBUR-Khimprom over the next 20 years.

Besides, we remind that in September 2019, SIBUR, the largest petrochemical comples in Russia and Eastern Europe, and BASF, Geman petrochemical major, agreed to closely cooperate on sustainable development to share their best practices.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC