Elkem to invest in biocarbon pilot plant in Canada

MOSCOW (MRC) -- Elkem (Oslo, Norway) says it will invest 180.0 million Norwegian krone (USD19.7 million) in a new plant in Canada to pilot an industrial biocarbon process specifically for silicon and ferrosilicon production, said Chemweek.

The plant will be constructed near Elkem’s production site at Chicoutimi, Quebec, with start of construction planned for the second half of 2020, the company says. The project has received financial support from the Canadian government, the Quebec government, and the city of Saguenay, reducing Elkem’s net investment to NKr60 million, it says.

The aim of the initiative is to secure industrial verification of Elkem’s technology for renewable biocarbon, with a long-term goal of contributing to climate-neutral metal production, the company says. The technology has the potential for application in other industry sectors, contributing to reduced CO2 emissions, Elkem says. Based on conclusions from the pilot plant, Elkem will evaluate the basis for a full-scale plant.

“With this new biocarbon pilot plant in Canada, we aim to secure long-term access to low-cost, high-quality renewable biocarbon to replace fossil coal, and further improve our competitive position for a sustainable future. In addition, we see a potential for scaling up this technology to other industries—helping reduce emissions,” says Michael Koenig, CEO of Elkem.

Elkem already uses about 20% biocarbon in its production in Norway and the company is working toward increasing this to 40% by 2030, it says. Meanwhile, the company sources 83% of its of electricity consumption from renewable energy. The pilot plant will source raw materials from local sawmills in Canada, including recycled bark, wood chips, sawdust, and wood shaves, with more than 2 million green tons (Gt) of potential raw material already produced within 100 kilometers of the Chicoutimi area in Quebec, the company says.

Elkem also sees potential for biocarbon technology to be customized for use in the steel industry as a replacement for coke as a reduction agent, it says. "Studies have shown that biocarbon can perform even better than fossil coal in production, and at the same time reduce the carbon footprint,” says Jean Villeneuve, head/biocarbon business at Elkem.

The company is also involved in several activities related to biocarbon, in Norway and other countries around the world, to develop competitive and sustainable sources of biocarbon, as well as longer-term R&D projects, Elkem says. Its plant in Paraguay achieved 100% sustainable biocarbon in its production of ferrosilicon in 2019, the company says.

As MRC informed earlier, a consortium of industrial companies, including BASF, universities and research institutes recently launched project RECOBA (Cross-sectorial REal time sensing, advanced COntrol and optimization of BAtch processes, saving energy and raw materials). Under the project coordination of BASF SE, the RECOBA partners include ThyssenKrupp Steel Europe AG, Germany; ELKEM AS Technology, Norway; University of Cambridge, United Kingdom; RWTH Aachen University, Germany; University of Chemistry and Technology Prague, Czech Republic; the University of the Basque Country UPV/EHU, Spain; VDEh-Betriebsforschungsinstitut GmbH, Germany; Cybernetica AS, Norway; and Minkon Sp. z o.o., Poland.

As MRC reported before, in early December 2019, on the margins of the meeting at SIBUR’s PolyLab R&D Centre, SIBUR, the largest petrochemical comples in Russia and Eastern Europe, and BASF, Geman petrochemical major, signed a Memorandum of Understanding (MOU) formalizing their partnership on sustainable development and circular economy agenda further to the companies’ environmental talks held back in June 2019. The memorandum is set to strengthen the partners’ commitment to long-term sustainable development goals. BASF and SIBUR agreed to collaborate more closely on water efficiency, carbon footprint management and chemicals recycling along with joining forces in implementing international environmental initiatives.

According to MRC's ScanPlast report, Russia's estimated PET consumption totalled 367,720 tonnes in the first six months of 2020, up by 19% year on year. Russian companies processed 62,910 tonnes in June. Russian plants reduced their PET output in January-June 2020 by 25% year on year. Overall PET chips production at four Russian plants reached 281,100 tonnes in January-June 2020.
MRC

Motiva restarts Port Arthur CDUs, coker, hydrocracker refinery

MOSCOW (MRC) -- Motiva Enterprises has restarted the largest and second-largest crude distillation units (CDUs), coker and hydrocracker at its 607,000 barrel-per-day (bpd) Port Arthur, Texas, refinery, reported Reuters with reference to sources familiar with plant operations.

The 325,000-bpd VPS-5 and 195,000-bpd VPS-4 CDUs, 110,000-bpd DCU-2 coker and 105,000-bpd HCU=2 hydrocracker are the first units to restart as Motiva continues to bring the entire refinery, which is the nation’s largest, back into production following an Aug. 25 shutdown because of Hurricane Laura, the sources said.

As MRC wrote before, Motiva Chemicals at Port Arthur, Texas, began shutting down light olefin operations last Monday to prepare for the arrival of Tropical Storm Laura.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Motiva Enterprises, LLC, is a fully owned affiliate of Saudi Refining Inc. and headquartered in Houston, Texas, United States with revenue of USD24 billion. Previously, it was a 50–50 joint venture between Shell Oil Company (the wholly owned American subsidiary of Royal Dutch Shell) and Saudi Refining Inc. (controlled by Saudi Aramco).
MRC

Xodus selected for landmark Australian green hydrogen project

MOSCOW (MRC) -- Global energy consultancy Xodus Group has been selected by Infinite Blue Energy (IBE) Group to carry out initial phase one work for Australia’s first, large scale 100 percent green hydrogen plant, said Hydrocarbonprocessing.

The USD300 million Arrowsmith Hydrogen Project secured investment earlier this year. Located 320km north of Perth, it is projected to produce 25 tonnes of green hydrogen a day using solar and wind energy. Xodus’ Perth team will use its previous international experience to deliver a preliminary environmental impact assessment (EIA) and environmental impact identification (ENVID) as well as ad hoc environmental support, including stakeholder consultation.

Xodus will also offer GIS support and manage permits and the flora and fauna surveys for the proposed site, undertaken by a third party. Naomi Kerp, Principal Environmental Consultant at Xodus said: “IBE Group is at the forefront of green energy in Australia and having worked with the senior team on previous projects, we are excited to be supporting them again with our energy experience and expertise. Projects like this can help establish Australia as a global leader in the production and supply of zero-emissions hydrogen fuel so it’s fantastic for us to be part of it from the very beginning."

Green hydrogen production uses renewable energy (e.g. solar, wind, biogas) and water, and emits oxygen as a by-product. IBE Group will be a true zero carbon commercial green hydrogen producer, the first of its kind in Australia, as opposed to existing projects that use traditional fossil fuels to produce liquid hydrogen.

The Australian Renewable Energy Agency (ARENA) received 36 expressions of interest to develop green hydrogen projects totalling almost 500MW in response to a A$70million funding round launched in April. It is expected that funding will be allocated by the end of 2020.

Naomi added: "The ARENA funding round generated significant interest right across Australia, in every state and territory. We’re seeing records of renewable generation broken on a regular occurrence and highlights the changing supply mix throughout the energy market as the country goes through a fairly rapid energy transition."

As MRC informed earlier, Europe, one of the world’s biggest diesel consumers, faces a major glut which combined with weak demand is weighing heavily on the ability of the region’s refineries to keep running. Having hit record lows at the height of the COVID-19 pandemic in April and May, European diesel margins are trending lower again after posting a modest recovery in July. "Gasoil and diesel is 40%-50% of refining output so it has to be profitable otherwise refineries just burn cash and must shut down,” Hayal Ahmadzada, chief trading officer at Azerbaijain’s SOCAR Trading said.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

Exxon Beaumont refinery completes restart from hurricane shutdown

MOSCOW (MRC) -- Exxon Mobil has completed the restart of its 369,024 barrel-per-day (bpd) Beaumont, Texas refinery following a shutdown for the passage of Hurricane Laura in late August, said sources familiar with plant operations, reported Reuters.

The refinery is the first of six on the US Gulf coast, shut by the storm, to completely restart. Exxon shut the refinery on Aug. 25.

As MRC informed earlier, ExxonMobil has put off for a year work on its refinery expansion in Beaumont, Texas. The expansion project is now slated to be online sometime in 2023, versus the original 2022 proposal. Bloomberg first reported the delay. ExxonMobil declined to confirm the story, noting that it does not comment on the status of individual projects. The company "is evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term as a result of market conditions caused by the COVID-19 pandemic and commodity price decreases," the company said in a statement.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

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

LyondellBasell starts up pilot plant for molecular recycling in Italy

MOSCOW (MRC) -- LyondellBasell says it has started up a small-scale pilot facility at its Ferrara, Italy, site for the molecular recycling of post-consumer plastic waste, said Chemweek.

The company announced the construction of the pilot plant in October last year and says R&D teams in Germany, Italy, and the US are now “actively working to explore potential commercial-scale applications.” The plant is capable of processing up to 10 kilograms/hour of household plastic waste, with the aim to help build understanding of the interaction of various waste types in the molecular recycling process, test various catalysts, and “confirm the process temperature and time needed to decompose plastic waste into molecules," LyondellBasell says.

The goal is to complete this process "over the next couple of years and then plan for an industrial scale unit," it says. The chemically recycled product will be used as feedstock for new plastic materials.

"Ending plastic waste in the environment and advancing the circular economy are key sustainability focus areas for our company," says Jim Seward, LyondellBasell’s senior vice president/R&D, technology, and sustainability. “With our advanced plastics recycling technology, we return larger volumes of plastic waste back into the value chain and produce new materials for high-quality applications, retaining their value for as long as possible," he says.

Plastic materials from the recycling process will be able to be used in food packaging and healthcare items, according to LyondellBasell.

The company announced a collaboration mid-2018 with Germany’s Karlsruhe Institute of Technology to advance its molecular recycling efforts, first proving the concept at laboratory scale before moving into the pilot testing stage.

As MRC informed earlier, LyondellBasell (Rotterdam, the Netherlands) announced that Duqm Refinery and Petrochemical Industries Company LLC (DRPIC) has selected LyondellBasell’s world-leading polypropylene (PP) and high-density polyethylene (HDPE) technologies for a new facility. The new plants will comprise of a polypropylene (PP) plant that will utilize LyondellBasell’s Spheripol PP process technology to produce 280,000 metric tons per year (m.t./yr) of PP and a 480-m.t./yr high-density polyethylene plant which will utilize LyondellBasell’s Hostalen ACP process technology and will be built in Al Duqm, Oman.

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC