Ineos Styrolution, Polystyvert collaborate on polystyrene recycling process

MOSCOW (MRC) -- Ineos Styrolution, the styrenics subsidiary of Ineos, says it is collaborating with Polystyvert (Montreal, Canada) to convert post-consumer polystyrene (PS) into recycled PS resin using Polystyvert’s dissolution technology, said Chemweek.

The companies have signed a joint development agreement for the dissolution process to convert waste PS into recycled resin. The process takes solid PS waste and dissolves it in a solvent, before processing and then separating the end-product from the solvent as a polymer for reuse, it says.

Polystyvert’s purification technology “offers the ability to treat all types of feedstock, from industrial waste to post-consumer streams,” and can eliminate hard-to-remove contaminants such as pigments and brominated flame-retardants, Styrolution says. The recycled PS pellets can then be used to manufacture various categories of PS products, including food-grade applications, it says.

As MRC informed earlier, Ineos Styrolution plans to raise prices for acrylonitrile butadiene styrene (ABS) by 7 cents per pound (USD154 per tonne) from February 1. The company also sought a similar increase in ABS prices from December 15 by two of its brands. The intention to raise prices stems from rising raw materials and logistics costs associated with the production and supply of ABS, the letter said.

According to the ICIS-MRC Price Report, ABS imports to Russia grew by 4% in the first ten months of this year compared to the same period last year and amounted to 29,100 tonnes against 28,000 tonnes. The share of South Korean supplies amounted to 62% (18,200 tonnes) against 57% (16,100 tonnes) in January-October 2019.

MRC

Air Liquide Inaugurates low-carbon hydrogen production unit in Canada

MOSCOW (MRC) -- Air Liquide has completed the construction of the world’s largest PEM (Proton Exchange Membrane) electrolyzer in Becancour, Quebec, Canada, according to Kemicalinfo.

Supplied with renewable energy, this unit is now producing up to 8.2 tonnes per day of low-carbon hydrogen.

With this large-scale investment, the Group confirms its long-term commitment to the hydrogen energy markets and its ambition to be a major player in the supply of low-carbon hydrogen.

The new 20 MW PEM electrolyser, equipped with Cummins technology, is the largest operating unit of its kind in the world and will help meet the growing demand for low-carbon hydrogen in North America.

Becancour’s proximity to the main industrial markets in Canada and the United States will help ensure their supply of low-carbon hydrogen for industrial use and mobility. The commissioning of this electrolysis unit increases by 50% the capacity of Air Liquide’s Becancour hydrogen production complex.

Compared to the traditional hydrogen production process, this new production unit will avoid the emission of around 27,000 tonnes of CO2 per year, which is equivalent to the emissions of 10,000 cars per year.

The choice of Becancour is based on two attributes of the site: the access to abundant renewable power from Hydro-Quebec and the proximity to the hydrogen mobility market in the northeast of the continent.

Susan Ellerbusch, CEO, Air Liquide North America and Group Executive Committee Member: “The fight against climate change is at the heart of the Air Liquide Group’s strategy. The inauguration of the Becancour site in Canada marks an important step in the implementation of this strategy. With this world’s first, Air Liquide confirms its commitment to the production of low-carbon hydrogen on an industrial scale and its ability to effectively deploy the related technological solutions. Hydrogen will play a key role in the energy transition and the emergence of a low-carbon society.”

As MRC informed earlier, in September 2020, Air Liquide finalised an agreement with Sasol to acquire the biggest oxygen production site in the world with a plan to reduce its carbon dioxide (CO2) emissions by 30%. After the announcement on July 29, the international major industry gas company has now entered into a business purchase agreement with Sasol to acquire the oxygen production site in Secunda, South Africa.

We remind that Sasol's world-scale US ethane cracker with the capacity of 1.5 mln tonnes per year reached beneficial operation on 27 August 2019. Sasol's new cracker, the heart of LCCP, is the third and most significant of the seven LCCP facilities that came online and will provide feedstock to the company's six new derivative units at Sasol's Lake Charles multi-asset site.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, exluding producers' inventories as of 1 January, 2020).
MRC

Wall Street analysts say Chevron merger talks a sideshow before Exxon loss

MOSCOW (MRC) -- Wall Street analysts gave little credence to the possibility of an Exxon-Chevron mega merger, as news of talks last year between the two largest US oil companies leaked ahead of Exxon's results that are expected to show the company posting its first-ever annual loss, reported Reuters.

Shares in both the companies were down in early trading in New York, despite a rising overall market and weekend gains in global crude prices.

"At the depths of the market last year... a cost cutting focused merger of the two companies may have made sense and also scale matters in this industry so it would have created by far the largest integrated oil company," said Anish Kapadia, director of energy at London-based Palissy Advisors.

However, anti-trust concerns and the new US administration's stance on big mergers make it unlikely that a deal resurfaces, Kapadia said, adding that buying smaller, hard-hit oil companies gives Exxon and Chevron more value.

As oil producers in Europe adapt to investors' push for a shift into renewables, it is also possible that Chevron or Exxon could buy the oil producing business of a European major in the coming years, Kapadia said.

Exxon's year-end results scheduled for Tuesday are expected to be marred by a charge of up to USD20 billion on the value of its natural gas properties.

The collapse in oil prices last April briefly pushed crude into negative territory and created a survival crisis for large parts of the US industry.

"Given the precipitous drop (last year)... it is not surprising that XOM and CVX had a discussion about merging," said Mark Stoeckle, CEO of Baltimore-based Adams Funds.

"The sharp snapback in prices likely cooled both companies. There would no doubt be significant cost synergies to be had, but the antitrust issues in a Biden administration would probably be too much to overcome."

As MRC informed previously, in December 2020, Chevron Corporation made a 2021 organic capital and exploratory spending program of USD14 billion and lowered its longer-term guidance to USD14 to USD16 billion annually through 2025. This capital outlook will continue to prioritize investments that are expected to grow long-term value and deliver higher returns and lower carbon, including over USD300 million in 2021 for investments to advance the energy transition.

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.

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.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC

Kuraray raises prices for EVOH, PVOH resins

MOSCOW (MRC) -- Kuraray announces the decision to increase the prices of its EVOH products (ethylene vinyl alcohol copolymer; Kuraray trademark: EVAL) for shipments commencing February 22, 2021, said the company.

Details of the price revisions are given below. Due to increasing the production costs including equipment maintenance and updates in EVAL production, the profitability has been deteriorating.

Under these circumstances, Kuraray has decided to implement the following price revisions for EVAL and related products. The price revisions are implemented in global basis. Increased production cost of its Eval EVOH product has affected profitability, leading to price revisions.

As per MRC, Kuraray’s Elastomers Business Unit will raise the transaction prices of following elastomer products in all regions effective 1 February 2021 or as existing supply agreements. All Septon, Hybrar and TU-Polymer prices will rise by USD 0.22 per kilogram (USD 0.10 per pound).

We remind that in October 2019, Kuraray took off-stream its vinyl acetate monomer (VAM) production in Okayama, Japan) for a scheduled maintenance. This production with a capacity of 160,000 mt/year was shut for about one month.

VAM is the main feedstock for the production of ethylene-vynil-acetate (EVA).

According to MRC's DataScope report, Novemberl EVA imports to Russia rose by 6,6% year on year to 3,650 tonnes from 3,420 tonnes a year earlier, whereas overall imports of this grade of ethylene copolymer into the Russian Federation dropped in January-November 2020 by 3,44% year on year to 34,680 tonnes (35,920 tonnes a year earlier).
MRC

WR Grace reaches standstill agreement with 40 North

MOSCOW (MRC) -- WR Grace entered into a letter agreement with 40 North on Monday, after it announced its decision to discuss a sale to 40 North’s upped bid of USD65 per share, said the company.

Under the confidentiality agreement, 40 North agreed to refrain from taking certain actions in respect to WR Grace and the common stock of the company until 31 March. WR Grace can still accept offers to acquire the company.

In addition, the catalyst producer agreed to provide 40 North with the opportunity to nominate director candidates to the Board of Directors. 40 North can nominate candidates for the company’s 2021 annual meeting, scheduled to be held on or before the 15th day following the expiration of the standstill agreement.

If 40 North nominates a candidate on or before the deadline, following the expiration of the standstill they will hold the meeting 60 days from the date of the nomination notice.

As MRC informed previously, in April 2018, W. R. Grace & Co. completed the USD416 million acquisition of the Polyolefin Catalysts business of Albemarle Corporation.

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 1,990,280 tonnes in the first eleven months of 2020, up by 1% year on year. Only high density polyethylene (HDPE) shipments increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 090,900 tonnes in the first eleven months of 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.

WR Grace produces catalysts that are used to make fuel and polypropylene (PP).

40 North is a privately held investment firm that is part of Standard Industries and owns a 14.9% stake in WR Grace. Standard Industries describes itself as the world's largest roofing and waterproofing manufacturer, with other businesses that make building materials.
MRC