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CAC builds biofuel plant for OMV

March 03/2021

MOSCOW (MRC) -- Chemieanlagenbau Chemnitz (CAC) has been assigned by OMV with overall responsibility for the construction of a biofuel plant, said Hydrocarbonprocessing.

With this project CAC is realizing one of the first large-scale plants in Europe to use innovative co-processing to produce carbon-neutral fuels. For this purpose biogenic input materials are processed together in combination with fossil, oil-based raw material in a hydrogenation facility at the refinery. The Vienna-based international oil, gas and chemicals company is investing about 200 million euros in the conversion at the site in Schwechat (Austria). This is in line with the EU requirement for biofuels to adhere to strict ecological and social criteria throughout the value chain.

With this process, the hydrogenated vegetable oil should lead to an annual reduction in OMVs carbon footprint of up to 360,000 metric tons of fossil CO2. This is equivalent to the annual emissions of around 200,000 cars driving an average of 12,000 km per year. The product meets the highest quality standards and can be freely used in any type of vehicle. The technology applied is not limited to vegetable oil waste products (such as used cooking oil) and advanced feedstocks are also possible and will be used based on availability. OMV expects demand for its hydrogenated biofuels to increase ten-fold by 2030.

"With this project we are joining OMV in taking a further step towards sustainable mobility, declared Jorg Engelmann, managing director of CAC, which is currently launching its technology for manufacturing synthetic gasoline on an industrial scale onto the market. Only with technological openness we can provide rapid and sustainable protection for our environment."

With overall responsibility for all phases of the project, CAC is undertaking detail engineering, including project management and project controlling, procurement services and construction site management. This includes the supply of equipment and bulk materials (piping, instrumentation, electrotechnical material) as well as responsibility for construction and assembly work.

We remind that the COVID-19 outbreak has led to an unprecedented decline in demand affecting all sections of the Russian economy, which has impacted the demand for petrochemicals in the short-term. However, the pandemic triggered an increase in the demand for polymers in food packaging, and cleaning and hygiene products, according to GlobalData, a leading data and analytics company. With Russian petrochemical companies having the advantage of access to low-cost feedstock, and proximity to demand-rich Asian (primarily China) and European markets for the supply of petrochemical products, these companies appear to be well-positioned to derive full benefits from an improving market environment and global economy post-COVID-19.

We also remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegazs existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex.

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). Supply of exclusively PP random copolymer increased.


mrcplast.com
Author:Anna Larionova
Tags:petroleum products, PP, PE, neftegaz, petrochemistry.
Category:General News
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