Polish refiner PKN sees investment at USD37B in 2020-2030

MOSCOW (MRC) -- Poland's biggest oil refiner PKN Orlen expects to invest around 140 billion zlotys (USD37.45 billion) over the next ten years as it shifts focus to building clean energy sources rather than oil refining, reported Hydrocarbonprocessing with reference to the company's statement.

The company said in September that it plans to become climate neutral in the next 30 years, although Poland is the only European Union state which has not pledged to cut emissions to zero by 2050.

"We are opening a new chapter in the history of PKN Orlen. We are building a new multi-energy group, capable of competing in the face of significant changes," PKN Orlen chief executive Daniel Obajtek said in a statement.

PKN Orlen wants to have 2.5 gigawatts of installed capacity in clean energy sources by 2030, including 1.7 GW in offshore wind in the Baltic Sea. The group will cut carbon emissions from its refining and petrochemical assets by 20% and in its energy segment by 33% over the period.

"We are preparing for changes, especially that oil refining will be becoming less significant," Obajtek said, adding that renewable energy sources and the petrochemical segment will be key drivers of the group's core profit (EBITDA).

The group plans to more than double EBITDA, or earnings before interest, tax, depreciation and amortization, to around 26 billion zlotys in 2030. It wants to pay out a dividend of at least 3.5 zlotys per share, and sees its capital needs at around 205 billion zlotys over the period.

As MRC reported earlier, in June 2020, Honeywell announced that PKN Orlen plans to use the UOP Q-Max and Phenol 3G technologies to produce 200,000 metric tons per year of phenol at its facility in Plock, Poland.

Phenol is one of the main feedstocks for the production of bisphenol A (BPA), which, in its turn, is used for the production of polycarbonate (PC).

According to MRC's ScanPlast report, Russia's estimated consumption of polycarbonate (PC) granules (excluding imports and exports to/from Belarus) rose in the first three quarters of 2020 by 32% year on year to 75,600 tonnes (57,200 tonnes a year earlier). And although in the injection moulding sector, the market dropped by 5% with consumption of 7,300 tonnes year on year (7,700 tonnes), it increased by 39% in the extrusion sector to 67,400 tonnes (48,600 tonnes a year earlier). The blow moulding sector grew in January-September 2020 by 1% year on year to 880 tonnes (870 tonnes a year earlier).
MRC

MOSCOW (MRC) -- MOL has opened a new polyol research and development center, named after Gyorgy Mosonyi, the late CEO of MOL, in Szazhalombatta, Hungary to develop polyol products that meet the needs of customers. The experimental reactor system, which is the most modern in the world, was supplied and commissioned by thyssenkrupp Industrial Solutions. 90% of the other assets in the project were procured from Hungarian suppliers. In addition, MOL and thyssenkrupp have entered into a joint research and development agreement.

MOL Group's 2030 strategy sets the goal of increasing the share of contribution of the petrochemical business to the results of the entire group. The EUR 1.2 billion investment in the polyol complex in Tiszaujvaros serves to achieve this. To underpin this investment and ensure that the plant meets the needs of the markets it serves, MOL established the research and development center at the Danube Refinery. The EUR 10 million investment center will fund up to 12 engineers and 7 technicians and the most advanced experimental reactor system in the world, supplied and commissioned by thyssenkrupp Industrial Solutions with 90% of equipment procured from Hungarian suppliers.

MOL and thyssenkrupp have also entered into a joint research and development agreement to facilitate the entry of both companies into the polyol market: thyssenkrupp as a technology service provider and engineering-procurement-construction (EPC) contractor, and MOL as a manufacturer and seller of various polyol products.

Gabriel Szabo, EVP of MOL Group Downstream, said: "The research and development center bears the name of Gyorgy Mosonyi, the late CEO of MOL, who was deeply committed to innovation throughout his work, so this a worthy tribute to his memory. It is a state-of-the-art laboratory, equipped with all the necessary tools, instruments and most importantly it has great experts who will ensure that the R&D activities can serve the development of market-ready products, to be later produced by the polyol plant in Tiszaujvaros. Centre is outstanding not only for MOL, but as the most advanced polyol research center in Central and Eastern Europe it has national significance and we hope that the scientific results of it will be of high value internationally as well."

"With our agreement on joint research and development, this R&D center is a big step forward to explore and win the new markets MOL is addressing with the polyols. We are excited for this new chapter in our joint journey and confident that this partnership will be an important success factor on our path to develop advanced and sustainable technology and products for a better future," Sami Pelkonen, CEO of thyssenkrupp's Chemical & Process Technologies business unit added.

The research and development center will conduct tests of the physicochemical properties of polyols, as well as laboratory tests and application experiments of polyurethane foams made from them. By July 2022, at least 10 polyol grades will be developed in the newly built facility. In order to compare and validate the results of the measurements, the company also plans to cooperate with the laboratories of several Hungarian universities and independent research institutions. These collaborations will help to further develop the methodologies used in the polyol R&D center and increase the knowledge base of universities. As well as to the MOL Group, the center will offer outstanding value to the Hungarian and international scientific community for years to come.

MOL's project "Research and Development of Polyether Polyol Grades with Market Potential", which is supported by the National Office for Research, Development and Innovation with HUF 483,269,279, will also take place primarily in the newly opened research center.

As MRC informed before, MOL Petrochemicals Company (formerly known as TVK, part of the MOL Group), the only Hungarian producer of olefins and polyolefins, announced force majeure on the supply of polypropylene (PP) from plant No. 4 at the petrochemical complex in Tiszaujvaros (Tiszaujvaros, Hungary) on 23 September 2019.

We remind that in November 2019, Total disclosed that itis evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

MOL Group is an integrated, international oil and gas company with its headquarters in Budapest, with an international and dynamic workforce of 25,000 in more than 30 countries and an industrial history of more than 100 years. MOL's exploration and production activities are supported by more than 80 years of experience in the hydrocarbon industry. It currently has extraction activities in 9 countries and has research assets in 14 countries. MOL Group operates three refineries and two petrochemical plants under integrated supply chain management in Hungary, Slovakia and Croatia, and its retail network includes 1,940 filling stations in 10 countries in Central and South-Eastern Europe.

thyssenkrupp Industrial Solutions AG is a leading partner for the engineering, construction and service of industrial plants and systems. Based on more than 200 years of experience we supply tailored, turnkey plants and components for customers in the chemical, fertilizer, cement, mining and steel industries. Around 11,500 employees worldwide form a global network with a technology portfolio that guarantees productivity and cost-efficiency to the highest extent possible.
MRC

MOSCOW (MRC) -- Evonik Industries says it has made a second investment in HPNow (Copenhagen, Denmark) through Evonik's venture capital unit. Evonik participated in the first financing round of the start-up in 2017, according to Chemweek.

HPNow has developed a modular generator, HPGen, that produces hydrogen peroxide (H2O2) directly on site based on a patented electrochemical technology, the company says. Further details have not been disclosed.

HPNow has until now addressed mainly the market for agricultural drip irrigation water treatment but is now entering markets for the treatment of industrial wastewater with high oxygen demand, for advanced oxidation in municipal water treatment, and for use in cooling systems, Evonik says.

HPNow’s patented technology breaks down H2O2 into water and oxygen after its application, making it possible to use the environmentally friendly H2O2 even in places to which transport has been uneconomical or even impossible until now, Evonik says. All that the system needs on site is electricity, water, and air, the company adds.

"This patented technology offers the possibility of a demand-oriented and cost-efficient supply of hydrogen peroxide directly to the customer," says Michael Traexler, head/active oxygens at Evonik. "This investment supports our strategy of offering our customers customized system solutions."

As MRC reported before, Dow and Evonik have recently entered into an exclusive technology partnership. Together, they plan to bring a unique method for directly synthesizing propylene glycol (PG) from propylene and hydrogen peroxide to market maturity.

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

According to MRC's ScanPlast report, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, excluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

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 with more than 36,000 employees.
MRC

MOSCOW (MRC) -- Restaurants, e-commerce platforms and delivery firms will be forced to report their utilization of single-use plastics to the authorities and also submit formal recycling plans, China's commerce ministry said in published proposals, said Hydrocarbonprocessing.

The Ministry of Commerce said it had established a nationwide system for retailers to report their plastic consumption as part of trial scheme to encourage recycling. Plastic pollution has become one of China's biggest challenges, with vast amounts buried in landfills or dumped in rivers. The rise in home food deliveries has also caused volumes to surge.

In September, the ministry said single-use plastic bags and eating utensils would be banned from major cities by the end of the year, while single-use straws would be banned nationwide. Wang Wang, chairman of the China Scrap Plastic Association, said the bans would "only resolve the most visible types of plastic pollution" and were just one part of the country's efforts to tackle waste.

From September, China has also prohibited some types of agricultural-use plastic film used to keep crops warm and moist. Chinese farmers use around 1.5 million tons a year, but it leaves residues that damage the soil. A new "solid waste law" also came into effect in September, raising fines tenfold for those who break rules and mandating the construction of new recycling infrastructure.

Though there have been complaints China is moving too fast, Wang said the business impact of the measures would be limited, with firms aware in advance that some products would be banned. China produced 63 million tons of plastic in 2019, with a recycling rate of around 30%. It produces around 20 million tons of single-use non-biodegradable material annually, including 3 million tons of shopping bags.

Antoine Grange, chief executive for recycling at SUEZ Asia , said the bans were welcome but China would also need to improve its entire recycling capability. "The single-use plastic ban is good for education, good for awareness, but it is only part of the big picture," he said.

We remind that PetroChina has nearly doubled the amount of Russian crude being processed at its refinery in Dalian, the company's biggest, since January 2018, as a new supply agreement had come into effect. The Dalian Petrochemical Corp, located in the northeast port city of Dalian, was expected to process 13 million tonnes, or 260,000 bpd of Russian pipeline crude in 2018, up by about 85 to 90 percent from the previous year's level. Dalian has the capacity to process about 410,000 bpd of crude. The increase follows an agreement worked out between the Russian and Chinese governments under which Russia's top oil producer Rosneft was to supply 30 million tonnes of ESPO Blend crude to PetroChina in 2018, or about 600,000 bpd. That would have represented an increase of 50 percent over 2017 volumes.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

MOSCOW (MRC) -- Honeywell's performance materials and technologies unit reports third-quarter net profit of USD442 million, down 24.0% year on year (YOY), on sales down 15.6% YOY, to USD2.2 billion, said the company.

Honeywell (HON) - Get Report on Friday posted third-quarter adjusted earnings that beat analysts’ forecasts and sales ahead of predictions as double-digit growth in its defense and space, warehouse automation and PPE products and services offset a drop in aerospace revenue.

The company also reinstated guidance for its fourth quarter and full year amid expectations that the worst effects of the pandemic are past. Honeywell posted net income of USD781 million, or USD1.07 a share, vs. USD1.65 billion, or USD2.23 a share, in the comparable year-ago period. On an adjusted basis, the company earned USD1.56 a share, above the USD1.49 a share expected by analysts polled by FactSet.

Sales came in at USD7.8 billion, down 14% from USD9.1 billion a year ago though above analysts’ forecasts of USD7.7 billion. Aerospace sales, which includes parts for commercial airplanes, fell 25% on a year-over-year basis, driven by reduced flight hours and lower volumes among carriers due to the pandemic and drop-off in travel.

However, sales of "safety and productivity solutions" gained 8%, driven by double-digit sales of personal protective equipment as well as a return to growth in productivity solutions and services, Honeywell said. Orders for PPE were up approximately 150%, with backlog at a record high, Honeywell said.

As MRC informed earlier, Honeywell UOP has announced that French energy company Total will utilize Honeywell UOP’s Ecofining process technology to produce renewable fuels, primarily for the aviation industry, at its Grandpuits platform at Seine-et-Marne in north central France. Once completed, the bio-refinery will process 400,000 tons of feed per year, producing up to 170,000 tons of sustainable aviation fuel, 120,000 tons of renewable diesel and 50,000 tons of renewable naphtha for production of bioplastics.

We remind, Honeywell announced Zhenhua Petrochemical Co. Ltd will use Honeywell UOP’s C3 Oleflex technology for propane dehydrogenation to process 1 million metric tons per year of polymer-grade propylene for a proposed plant in Dongying City, Shandong Province, China.

As MRC reported earlier, in May, 2020, Honeywell announced that Enterprise Products Partners L.P. will use Honeywell UOP’s C3 Oleflex technology in its second propane dehydrogenation plant, called "PDH 2". Located near Mont Belvieu, Texas, PDH 2 will produce 750,000 metric tons per year of polymer-grade propylene as part of Enterprise’s expansion of propylene manufacturing capacity.

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

According to MRC's ScanPlast report, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.


MRC