Trump administration argues against refiners biofuel petition

MOSCOW (MRC) -- The Trump administration has argued against a petition from oil refiners asking the US Supreme Court to review a lower court decision that undermined the legitimacy of the Environmental Protection Agency's biofuel waiver program, reported Reuters.

Department of Justice officials said the court should not review the case as it does not conflict with any other Supreme Court or appeals court decision, according to the brief submitted on Dec. 8. The officials argued that the court could review the decision after a similar case is completed in the D.C. Circuit Court of Appeals.

Under US law, refiners must blend billions of gallons of biofuels into their fuel, or buy credits from those that do. Small refiners can apply for exemptions to the requirements if they prove the obligations would cause them financial harm.

At issue is a January decision by the Tenth Circuit Court of Appeals that ruled that waivers granted to small refineries after 2010 should only be approved as extensions. Because most recipients of waivers in recent years have not continuously received them year after year, the decision threatened to upend the waiver program.

Oil refiners petitioned the Supreme Court to review the decision in September.

A coalition of US biofuel groups has since announced, on Tuesday, it had filed a brief with the D.C. Circuit Court of Appeals challenging the Trump administration's decision in 2019 to grant 31 oil refineries exemptions from U.S. biofuel blending obligations.

"Those pending D.C. Circuit proceedings provide an additional reason to deny the petition in this case. If the D.C. Circuit parts ways with the Tenth Circuit on the question presented, this Court can consider whether that conflict warrants further review," the DOJ brief said.

The biofuel industry has called for the EPA to apply the Tenth Circuit Court ruling broadly, but the agency has yet to do so and is still contemplating pending petitions for the 2019 and 2020 compliance years.

"The Tenth Circuit got it right the first time, and now refiners need to accept the reality that they must comply with the law," said Geoff Cooper, president of the Renewable Fuels Association. "It's time to move on."

As MRC informed earlier, European and US oil refineries face a wave of closures due to plateauing fuel demand, tightening environmental rules and overseas competition, prompting some owners to opt for an easier alternative - converting plants to produce biofuels. The shock of the coronavirus epidemic crushed global oil demand and as some producers, including, say it might never recover to pre-crisis levels, the need to close refineries has accelerated. The International Energy Agency (IEA) said in a recent report that by 2030 around 14% of current refining capacity in advanced economies “faces the risk of lower utilization or closure."

We remind that 2ithin the framework of its net zero strategy, Total will convert its Grandpuits refinery (Seine-et-Marne) into a zero-crude platform and will invest more then EUR500 mln into this project. By 2024 the platform will focus on four new industrial activities: production of renewable diesel primarily intended for the aviation industry, production of bioplastics, plastics recycling and operation of two photovoltaic solar power plants.

We also 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 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- Haldor Topsoe (Ravnholm, Denmark) and renewable energy developer Skovgaard Invest (Lemvig) say they will build a 5,000-metric tons/year green ammonia plant in Western Jutland, Denmark, said Chemweek.

No investment figure has been given. The project could be in operation by 2022, powered by existing wind turbines and 50 megawatts (MW) of new solar panels that will feed an electrolyzer unit to produce renewable hydrogen for subsequent processing into ammonia, according to Haldor Topsoe. The cost of green ammonia is currently “significantly higher” than that of comparable ammonia from fossil fuel, it says. The company will design the plant’s ammonia technology to secure optimal production and adapt to the inherent fluctuations in power output from wind turbines and solar panels, it adds.

The project will deliver proof of concept and operational experience for larger projects, with the companies to invest jointly in the development. They have also applied for public cofunding, they say. Potential offtakers for the green ammonia are seen within the agriculture and marine industries, as well as the potential for exports out of nearby industrial harbors, according to Skovgaard Invest.

As per MRC, Braskem, the largest petrochemical company in the Americas and a world leader in the production of biopolymers, and Denmark-based Haldor Topsoe, a global leader in supply of catalysts, technology, and services for the chemical and refining industries, have announced that they achieved their first-ever demo-scale production of bio-based monoethylene glycol (MEG).

MEG is mainly used in the production of polyester fibres, resins and films (around 80% of global consumption), followed by use in polyethylene terephthalate (PET) resin. It is also used as automotive antifreeze.

As per MRC' ScanPlast, calculated consumption of polyethylene terephthalate (PET) reached 52,71o tonnes in September 2020, down 27% compared to the same time a year before. Total consumption of PET in Russia in the nine months of 2020 reached 530,750 tonnes, down 22% than the same indicator last year.
MRC

MOSCOW (MRC) -- An explosion and fire at Optima Chemicals’ manufacturing facility in Belle, West Virginia, Tuesday evening has left four injured, according to local news reports, said Chemweek.

Doug Cochran, general manager of the facility, says all process units have been taken offline. The Optima facility is located on a site owned by Chemours, which sold the assets to Optima, a toll and custom manufacturer of fine chemicals, in 2015. Belle Chemicals, which also has a production facility at the Chemours site, says it has also taken production offline. Belle, an affiliate of Cornerstone Chemical, acquired Chemours’s methylamines business and associated assets in January 2020.

The explosion, which reportedly threw debris as far as one mile, occurred at about 10 pm. It seems to have involved chlorinated dry bleach and methanol, and to have started on a barge, according to local authorities cited by the West Virginia Metro News. The fire was extinguished within two hours.

Other producers with operations at the site include Lucite International and Kureha PGA. Kureha has been manufacturing polyglycolic acid (PGA) at Belle since 2011. Lucite produces higher methacrylates at Belle.

Earlier it was reported that Lucite International UK will be renamed Mitsubishi Chemical UK later this month. The rebranding will take effect on November 17, 2020 as part of the parent company's transition to One MCC worldwide. Lucite International offices in other countries will go through a similar name change process to become Mitsubishi Chemical.

The main application, consuming approximately 75% MMA, is in the production of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used to produce methyl methacrylate-butadiene-styrene copolymer (MBS) used as a modifier for polyvinyl chloride (PVC).

According to MRC's DataScope report, last month's SPVC imports to Russia dropped to 1,600 tonnes from 2,300 tonnes in October. High PVC prices in the foreign markets and seasonal decline in demand continued to put significant pressure on import purchases of PVC from Russian companies. Thus, overall imports were 40,100 tonnes in January-November 2020, compared to 48,500 tonnes a year earlier, with PVC from China and the United States accounting for the main reduction in imports. PVC shipments from these countries decreased by almost a third over the stated period.
MRC

MOSCOW (MRC) -- Enerkem (Montreal, Quebec, Canada) has announced plans to build an 875-million Canadian dollar (USD684-million) waste-to-methanol and biofuels plant in Varennes, Quebec, in partnership with Shell, Suncor, and Proman, according to Chemweek.

The proposed Varennes Carbon Recycling (VCR) facility will be one of the world’s largest renewable hydrogen and oxygen production plants with an 87-megawatt electrolyzer, and convert over 200,000 metric tons of non-recyclable waste and wood waste into nearly 125 million liters/year of biofuels and renewable chemicals, it says. The project would create over 500 jobs during construction and about 100 permanent positions during operations, with estimated yearly recurring economic benefits for Quebec of USD85 million, it adds. A total of CD60 million has so far been invested on development of the project, including site preparations and the obtaining of required permits.

The proposed partnership is subject to finalization of commercial agreements, Enerkem says. Shell, Suncor, and Proman will all be leading investors in the project, with Hydro-Quebec to supply the green hydrogen and oxygen. The project also has the support of the Quebec and Canadian governments, it says.

Enerkem’s proprietary thermochemical process enables the conversion of carbon into biofuels and renewable chemicals made from methanol, which will be the project’s intermediary product, it says. The company operated an initial pilot project in Westbury, Quebec, and its first commercial 38-million liters/year plant producing methanol and ethanol is located in Edmonton, Alberta.

“The further implementation of Enerkem’s unique waste gasification technology will be a significant step towards enabling the wider availability of highly sustainable biomethanol, as part of the global low-carbon energy transition,” says David Cassidy, Proman chief executive. Proman is the world’s second largest producer of methanol.

As MRC reported earlier, in May 2020, NOVA Chemicals Corp. (Calgary, Alberta, Canada) and Enerkem Inc. (Montreal, Quebec, Canada) entered into a joint development agreement to explore turning non-recyclable and non-compostable municipal waste into ethylene, a basic building block of plastics. Working together, the companies will research advanced recycling technology to transform hard-to-recycle municipal waste, including items such as plastics, household waste, and construction materials, into ethylene at full commercial scale. Ethylene, produced from waste, would advance a plastics circular economy and help meet consumer brand goals for recycled content in packaging.

Ethylene is the main feedstock for the production of polyethylene (PE).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased.
MRC

MOSCOW (MRC) -- Clariant says that its board has appointed Conrad Keijzer as the company’s new CEO, effective 1 January 2021. Hariolf Kottmann, Clariant’s executive chairman ad interim, will return to his position as chairman of the board, once Keijzer assumes responsibility, reported Chemweek with reference to the company's statement.

Kottmann notes that the decision to appoint Keijzer as Clariant’s CEO “is fully supported by the board representatives of our two major shareholders Sabic and the Sud-Chemie legacy shareholders.”

Keijzer was earlier CEO of the performance coatings division and an executive committee member at AkzoNobel, where he spent 24 years, and most recently CEO at industrial minerals company Imerys (Paris, France). He says he will lead “Clariant in the next phase of its important transformation into a high-value specialty chemicals company.”

As MRC informed before, in October 2020, Clariant (Muttenz, Switzerland) announced the construction of a new state-of-the-art catalyst production site in China. This project represents a significant investment which further strengthens Clariant’s position in China and enhances its ability to support its customers in the country’s thriving petrochemicals industry.

The new facility will be primarily responsible for producing the Catofin catalyst for propane dehydrogenation, which is used in the production of olefins such as propylene. Thanks to its excellent reliability and productivity, Catofin delivers superior annual production output compared to alternative technologies, resulting in increased overall profitability for propylene producers, says the company. Construction at the Dushan Port Economic Development Zone in Jiaxing, Zhejiang Province was scheduled to commence in Q3 2020, and Clariant expects to be at full production capacity by 2022.

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

According to MRC's ScanPlast report, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of 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.
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