Coca-Cola introduces new 100% rPET bottle to US market

MOSCOW (MRC) -- The Coca-Cola Company says it is introducing a new 13.2-oz bottle made from 100% recycled polyethylene terephthalate (rPET) in the US this month, with the initial rollout focused on Coca-Cola-branded products, reported Chemweek.

The company says other brands in the US, including Dasani and smartwater, are transitioning to 100% rPET bottles of various sizes.

Coca-Cola says the new bottle is “conveniently sized in a more sippable package.” The caps and label are not made from rPET, the company notes. Coke, Diet Coke, Coke Zero Sugar, and Coca-Cola Flavors in the 13.2 oz bottle will first be available in select states in the Northeast, Florida, and California, with national distribution to follow this summer.

“As part of a portfolio approach, 20 oz bottles made from 100% rPET are being introduced across Coca-Cola, Coke Zero Sugar, Diet Coke, and Coca-Cola Flavors beginning this month in California and New York and will continue to roll out this Spring in Texas,” says the company. “DASANI and smartwater will follow suit, introducing 20 oz bottles made from 100% rPET in March and July, respectively. Finally, in February, people in select markets will see a new 13.2 oz clear bottle from Sprite, also made from 100% rPET. The clear package makes it easier for bottles to be recycled and remade into new bottles. All Sprite packaging will transition to clear packaging by the end of 2022.”

In 2018, Coca-Cola pledged to collect and recycle the equivalent of one bottle or can for each one sold by 2030, to make 100% of packaging recyclable by 2025, and to use 50% recycled material in bottles and cans by 2030.

As MRC informed earlier, Coca-Cola will not ditch single-use plastic bottles because consumers still want them, the firm's head of sustainability told the BBC in late January, 2020. Customers like them because they reseal and are lightweight, said Bea Perez. The firm, which is one of the biggest producers of plastic waste, has pledged to recycle as many plastic bottles as it uses by 2030.

According to MRC's ScanPlast report, Russia's overall PET consumption totalled 71,830 tonnes in December 2020, up by 8% year on year. In 2020, PET consumption in all sectors (injection moulding, fibers/filaments, films) exceeded the level of 2019 by 17% and amounted to 717,310 tonnes.
MRC

MOSCOW (MRC) -- Linde plc (Guildford, U.K.) has successfully started up two new air separation units (ASUs) to supply gaseous oxygen and nitrogen to Wanhua Chemical Group, the world’s largest producer of isocyanate (MDI), said the company.

The new plants join two existing ASUs, also built and operated by Linde, to support phase I and II of Wanhua Chemical’s integrated chemical site and production center in Yantai, China. Linde’s advanced technology and operational expertise will enable all four ASUs to run at a greater scale and achieve synergies through improved energy efficiency and operational flexibility, resulting in higher reliability and lower venting of the plants.

"The safe and timely start-up of these ASUs is the latest milestone in our long-standing global partnership with Wanhua Chemical Group, spanning Asia and Europe,” said Will Li, Head of Greater China, Linde. “We look forward to growing our partnership from strength to strength as Wanhua Chemical continues to expand its footprint across the world."

"As the leading supplier to all three of our production sites across the world, Linde has displayed a proven track record of safety and reliability, and a commitment to our mutual success,” said Mr Liao Zengtai, Chairman of the Board, Wanhua Chemical. “The latest successful start-up is yet another strong validation of our decision to select Linde as our industrial gas partner for global growth."

Details about the plants’ costs or capacities were not disclosed.

As pre MRC, Linde announced that it has partnered with Hyosung Corporation (Hyosung), one of South Korea's largest industrial conglomerates, to build, own and operate extensive new liquid hydrogen infrastructure in South Korea.

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.

Linde is a global leader in the production, processing, storage and distribution of hydrogen. It has the largest liquid hydrogen capacity and distribution system in the world. The company also operates the world's first high-purity hydrogen storage cavern, coupled with an unrivaled pipeline network of approximately 1,000 kilometers to reliably supply its customers. Linde is at the forefront in the transition to clean hydrogen and has installed close to 200 hydrogen fueling stations and 80 hydrogen electrolysis plants worldwide. The company offers the latest electrolysis technology through its joint venture ITM Linde Electrolysis GmbH.
MRC

MOSCOW (MRC) -- Shell expects its oil production to decrease by 1%-2% annually as it prioritizes spending on transition projects in an acceleration of its strategy to achieve net zero emissions by 2050, reported S&P Global with reference to the company's statement on Feb. 11.

In a strategy update, Europe's largest oil and gas company said it was likely that its oil production had already peaked in 2019 and its CO2 emissions in 2018. The further decline in oil production would result from asset sales and natural decline, it said.

Sketching out its near-term investment plans, it said it expects spending in the traditional upstream segment to fall behind spending in "transition pillar" areas, comprised of the LNG-focused Integrated Gas division, as well as chemicals and oil products.

In the near term, it expects annual upstream capital expenditures of USD8 billion, with capex in the transition pillar businesses of USD8 billion-USD9 billion, and USD5 billion-USD6 billion of capex in the "growth" business of marketing, renewables and energy solutions.

It also set out interim targets toward the goal of net zero emissions by 2050. Using 2016 as a baseline, it said it would cut its emissions by 6%-8% by 2023, 20% by 2030 and 45% by 2035, before reaching 100% in 2050.

"Our accelerated strategy will drive down carbon emissions and will deliver value for our shareholders, our customers and wider society," CEO Ben van Beurden said in a statement.

As MRC wrote before, Shell’s chemicals business has reported strong fourth-quarter earnings of USD367 million on a current cost of supply (CCS) basis, swinging from a loss of USD78 million in the prior-year period, reflecting “higher realized margins in base chemicals and intermediates from a stronger price environment”. The earnings are also substantially higher sequentially on the company’s third-quarter segment earnings of USD131 million.

We remind that Royal Dutch Shell has reported an outage at its olefins plant in Deer Park, Texas, USA, on 5 January, 2021. The plant flared for 16 hours following unspecified process upset. Maximum steam cracker operating rate in Texas falls to 89%.

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, excluding producers' inventories as of 1 January, 2020).

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

MOSCOW (MRC) -- Borealis says it has agreed to source renewable energy generated by a new wind farm to power its production operations at its manufacturing site in Stenungsund, Sweden, reported Chemweek.

The company has signed a purchase agreement with Finnish state-owned energy player Gasum to source power for a period of 10 years from Sweden’s Stena Renewable, which owns and operates the onshore Kronoberget wind farm, located around 250 kilometers from the facilities at Stenungsund. Delivery of renewable electricity to Stenungsund began on 1 January 2021, it says. The power purchase agreement is the fourth and largest to date by Borealis, which says it aims to source half of its total electricity consumption from renewable sources in major business areas by 2030.

Borealis estimates it will source 2,000 gigawatt hours (GWh) from the wind farm over the 10-year period. The wind farm, commissioned in December 2019, generates a total output of approximately 200 GWh/year.

The company says it aims to source 50% of its energy needs for its polyolefins and hydrocarbon and energy business areas from renewable sources by 2030. The renewable electricity generated within the framework of the agreement with Gasum will reduce its indirect Scope 2 carbon dioxide emissions at Stenungsund by approximately 10,000 metric tons/year, it says.

The Stenungsund site features a flexible-feed, 625,000-metric tons/year steam cracker producing main products ethylene and propylene, which are used to produce high-density polyethylene (HDPE), low-density polyethylene (LDPE), and Borstar PE products.

As MRC wrote before, Borealis began to restart of its 625,000-metric tons/year steam cracker at Stenungsund, Sweden, in early January, 2021, but the declaration of force majeure remained in place then. The process of restarted lasted for several weeks. Force majeure at Stenungsund was declared after a fire started at the cracker on 10 May last year. A restart of the cracker was initially planned for the fourth quarter of 2020. The force majeure was lifted on 29 January, 2021.

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, excluding producers' inventories as of 1 January, 2020).

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries.
MRC

MOSCOW (MRC) -- The February contract price of propylene was settled in Europe up by EUR85/tonne from the previous month. But due to a deficit in the region, all European producers announced a greater increase in export prices of polypropylene (PP) to be shipped to the CIS markets in February, than the rise of monomer prices, according to ICIS-MRC Price report.

Negotiations on February prices of European PP began in the first days of the month. All market participants reported that European producers have gone for a significant increase in export prices for propylene polymers due to a serious deficit in the European market. In some cases, prices have increased at the level of EUR230/tonne.

For several months now, all producers in Europe have had serious export restrictions, which were largely a result of the shortage of propylene in the region. For the second month in a row, several producers do not sell PP to the markets of the CIS countries.

Deals for February shipments of homopolymer PP were done in the range of EUR1,250-1,310/tonne FCA, whereas last month's deals were done in the range of EUR1,040-1,100/tonne FCA. Deals for block copolymers of propylene (PP block copolymers) started from EUR1,270/tonne FCA and more, versus EUR1,100/tonne FCA a month earlier.
Some producers this week announced an additional increase in export prices by another EUR100/tonne compared to the previous week.

The situation with Middle Eastern PP was similar, local producers also raised their export prices under the pressure of higher crude oil prices and strong demand. Since December, from month to month, the quotas for shipments to the markets of the CIS countries have been constantly decreasing.

The deals for shipments of the Middle Eastern homopolymer PP were done in the range of USD1,380 - 1,420/tonne CIF, while a month earlier the deals were agreed in the range of USD1,280 - 1,360/tonne CIF.
MRC