Solvay launches hydrogen platform

MOSCOW (MRC) -- Solvay says it has launched a hydrogen platform that will “bring together all the innovative material and chemical solutions the group has to offer to advance the emerging hydrogen economy, said Chemweek.

" At the heart of the platform is the company’s membrane technology, “which constitutes a necessary component in the process of hydrogen production," the company says. By creating the platform, Solvay says it is increasing its resources dedicated to the emerging hydrogen market, including efforts in research and innovation. Starting this year, Solvay is dedicating teams involving research, engineering, sales, and marketing working together to craft the company's added value to the future hydrogen market.

Solvay’s membrane technology, under the brand Aquivion, will be a key contributor to the electrolyzer and fuel-cells markets, the company says. Solvay intends to bring other hydrogen applications and components to the market, such as hydrogen tanks.

"The hydrogen economy has taken off, and with our new hydrogen platform, we are partnering with our customers in the electrolyzer and fuel-cells space to make it happen,” says Solvay CEO Ilham Kadri. “Green hydrogen will be one of the most competitive low-carbon solutions for transportation applications in the near future."

Solvay, meanwhile, has joined the Hydrogen Council, a worldwide CEO-led initiative that brings together leading companies with a united vision and long-term ambition for hydrogen to foster the clean-energy transition. Solvay also says that its hydrogen platform is integral to the group’s One Planet initiative, which includes 10 measurable commitments to achieve sustainable-development goals across three focus areas: climate, resources, and better life.

Solvay notes that the production of green hydrogen via water electrolysis is expected to reach more than 100 gigawatts of worldwide capacity by 2030, and that the global fleet of fuel-cell electric vehicles is forecast to reach “several million vehicles" by 2030.

Meanwhile, public support for hydrogen is increasing exponentially, with USD10 billion of post-COVID-19 stimulus being dedicated, mostly in Europe and APAC, to green hydrogen R&D and infrastructure deployment, Solvay says.

As MRC reported earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

We remind that BASF-YPC, a 50-50 joint venture of BASF and Sinopec, undertook a planned shutdown at its naphtha cracker on 30 April 2020. The company initially planned to start turnaround at the cracker on April 5, 2020. The plant remained under maintenance unitl 18 June, 2020. Located in Jiangsu, China, the cracker has an ethylene capacity of 750,000 mt/year and propylene capacity of 400,000 mt/year.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
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MOSCOW (MRC) -- Croda International says it has entered a global sales and marketing agreement with Genesis Biosciences (Cardiff, UK) to expand its portfolio of safe and sustainable cleaning raw materials, said Chemweek.

The first phase of the partnership will see the launch of two probiotic ingredients, one for use in hard-surface cleaning products and one for use in odor-neutralizing products. The two ingredients will be available from the end of January, the company says.

Genesis Biosciences specializes in the fermentation of bacteria strains to develop safe and natural microbial and antimicrobial products, Croda says. This technology is “the result of years of [R&D] to characterize natural beneficial bacteria and optimize high-performing consortia for specific applications,” says Peter Wallbank, business development manager at Genesis Biosciences.

As MRC informed earlier, Croda International (Goole, UK) says it has entered a partnership with Sentient Science (Buffalo, New York), an asset management and software services company, for the recommended use of Croda’s Rewitec additives for wind turbine gearboxes and main bearings.

We remind that Russia's output of chemical products rose in November 2020 by 9.5% year on year. At the same time, production of basic chemicals increased in the first eleven months of 2020 by 6.6% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-November 2020 output. November production of polymers in primary form rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of polymers in primary form totalled 9,240,000 tonnes over the stated period, up by 17.1% year on year.

Croda acquired Rewitec in 2019 and began to offer to energy technology customers nano- and micro-particle-based additives to increase the durability of machinery by lowering friction and reducing wear, the company says. Prior to the acquisition in 2017, Sentient Science validated Rewitec’s DuraGear gearbox oil additives for use in wind turbine gearboxes, it says.
MRC

MOSCOW (MRC) -- Sika has provided a financial update and says that its sales decreased 2.9% in 2020 to 7.88 billion Swiss francs (USD8.85 billion), mainly due to strong negative currency effects, said Chemweek.

Sales in local currencies increased 3.4% with a strong acquisition effect of 7.2% offsetting a 3.8% organic decline in sales. Meanwhile, sales in local currencies in the fourth quarter went up 5.5% year on year, of which 4.1% was organic growth, the company says.

"The 2020 fiscal year was overshadowed by the global coronavirus pandemic, which had a number of serious repercussions for the construction and automotive sectors. Thanks to the strong motivation of our employees and their pronounced customer focus, Sika managed to perform successfully in this highly challenging market environment and achieve above-average results,” says Paul Schuler, CEO of Sika.

Despite the “significant restrictions on construction activity” caused by COVID-19 in most of the countries where the company operates, Sika says it grew more strongly than the market in all regions. Sika posted 12.6% growth in sales in local currencies in the APAC region in 2020, 4.4% growth in EMEA, and an 1% increase in the Americas. The company’s global business recorded an 11.2% decrease in sales in local currencies in 2020.

Sika anticipates an over-proportional increase in EBIT and an EBIT margin of about 14% for 2020. The company has also confirmed its 2023 targets, including annual growth of 6%-8% in local currencies through 2023. The company is aiming for a higher EBIT margin of 15%–18% from 2021. It also estimates that projects in the areas of operations, logistics, procurement, and product formulation should result in an annual improvement in operating costs equivalent to 0.5% of sales.

Sika is scheduled to release its full results on 19 February.

As MRC informed earlier, Sika commissioned a manufacturing facility in Dubai, United Arab Emirates (UAE), which produces epoxy resins aimed at flooring solutions. Sika has decided to invest in the expansion of its manufacturing facilities at the Dubai site in order to increase flexibility in production, shorten delivery times, optimize cost structures, and reduce inventories.

We remind that Russia's output of chemical products rose in November 2020 by 9.5% year on year. At the same time, production of basic chemicals increased in the first eleven months of 2020 by 6.6% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-November 2020 output. November production of polymers in primary form rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of polymers in primary form totalled 9,240,000 tonnes over the stated period, up by 17.1% year on year.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 101 countries around the world and manufactures in over 200 factories. Its more than 20,000 employees generated annual sales of CHF 7.09 billion in 2018.
MRC

MOSCOW (MRC) -- The crude price rally stumbled Jan. 11, with futures settling mostly lower amid fresh pandemic demand growth concerns following the imposition of new lockdowns in Asia, reported S&P Global.

NYMEX February WTI settled up 1 cent at USD52.25/b, while ICE March Brent finished down 33 cents at USD55.66/b.

A fresh outbreak of coronavirus infections in Hebei province, near Beijing, has led to lockdowns in provincial capital Shijiazhuang and Xingtai, China's National Health Commission said Jan. 8, adding the epidemiological origin of the outbreak has not been identified. Residents have been barred from leaving, and public transport has been halted.

On Jan. 11, the NHC reported 103 new cases of infections in China, the highest daily rise since late July, with 82 out of the 85 local cases from Hebei.

"The rally with oil was getting out of hand and prices needed to pullback as the uncertainty over short-term crude demand remains elevated," OANDA senior market analyst Edward Moya said in a note. "Chinese crude demand has been a bright spot for the oil market, but that could quickly end if China steadily sees new clusters."

NYMEX February ULSD settled down 60 points at USD1.5735/gal, and February RBBO was down 2.15 cents at USD1.5208/gal.

Pandemic-related demand concerns weighed on gasoline cracks. The ICE New York Harbor RBOB crack against Brent edged down to USD8.28/b in afternoon trading, retreating from more than five-month highs reach Jan. 8.

The Platts northwest Europe gasoline Eurobob crack against Brent fell back to USD3.15/b, down from a 10-week high Jan. 8.

Total US gasoline inventories are expected to have climbed 3.2 million barrels higher in the week ended Jan. 8, analysts surveyed by S&P Global Platts said Jan. 11, putting stocks at around 244.3 million barrels.

US driving activity edged 0.2% higher in the week ended Jan. 8, according to Apple mobility data, remaining near levels last seen in late May and likely portending a weaker-than-normal post-holiday demand rebound. The five-year average of US Energy Information Administration data shows implied demand for gasoline is up around 2% in early January, as workers return from the end-of-year holiday.

Recent economic data also suggests that a second wave of pandemic lockdowns in the US is impacting labor markets fast than anticipated, likely weighing further on gasoline demand. December non-farm payrolls contracted by 140,000 jobs, US Bureau of Labor Statistics data showed Jan. 8, below market expectations of a slight increase in jobs.

A rising US dollar added to oil price headwinds. The ICE US Dollar Index rallied up to 90.48 in afternoon trading, on pace for the strongest close since Dec. 22.

As MRC informed previously, global oil demand may have already peaked, according to BP's latest long-term energy outlook issued in September 2020, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels.

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

And 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 DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

MOSCOW (MRC) -- US polymer producer Total Petrochemicals & Refining USA announced an update to its Dec. 17 force majeure on copolymer polypropylene (PP) products from its La Porte, Texas, petrochemical complex, reported S&P Global with reference to the company's statement Jan. 12.

"Repairs at our site in La Porte, Texas, continue to go extremely well and according to plan," Total Petrochemicals said in a Jan. 12 letter obtained by S&P Global Platts.

The restart of the unit is on schedule for Feb. 6, "with initial shipments beginning the following week," the company said.

In addition, Total Petrochemicals "expects to be back to normal production in early April," the letter said.

The plant has a total nameplate capacity of 1.15 million mt/year of polypropylene, according to S&P Global Platts Analytics data. The letter indicated that only the copolymer grade was affected.

The company was not available for comment Jan. 12.

As MRC wrote earlier, within 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 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.

According to MRC's DataScope report, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
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