Brazil biofuel lobbies push for reversal of blending decision to maintain the minimum biofuel content level in diesel at 10% for 2022

Brazil biofuel lobbies push for reversal of blending decision to maintain the minimum biofuel content level in diesel at 10% for 2022

MOSCOW (MRC) -- Brazil's powerful biofuel and farm lobbies are pushing the government to reverse a measure announced last week that maintained the minimum biofuel content level in diesel at 10% for all of 2022, reported Reuters.

"Lawmakers of the biodiesel caucus will act. As soon as the president learns of the repercussions of the measure, and he will certainly change his stance," Francisco Turra, board chairman of the Aprobio biofuels lobby, told Reuters in an interview on Wednesday.

A 10% mix represents a drop from the 13% requirement initially planned for 2021, and an even sharper fall from the 14% that was supposed to be adopted from March 2022, Turra said.

"There is a huge loss of the investments made and of jobs that would be generated," Turra said.

In September, Brazil's National Energy Policy Council cut the minimum biofuel content requirement to 10% from 13% previously, citing a rise in the price of soybeans, which represent some 75% of biodiesel content.

But lowering the biofuel mix in diesel is irrelevant to the its final price, the industry says.

As MRC informed previously, Brazilian President Jair Bolsonaro reiterated in late October, 2021, that he is considering the privatization of state-run oil company Petrobras, formally known as Petroleo Brasileiro SA, boosting its shares along with news of a fresh price hike in the domestic gasoline and diesel market.

We remind that in August 2021, Petrobras hired JPMorgan Chase & Co as an advisor to sell its stake in the petrochemical company Braskem SA.

We also remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in the first nine months of 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
MRC

Braskem says Novonor considering secondary share offering

Braskem says Novonor considering secondary share offering

MOSCOW (MRC) -- Brazilian industrial conglomerate Novonor is considering exiting its majority stake in petrochemical company Braskem SA via a secondary share offering, said Reuters.

Novonor, formerly known as Odebrecht, had previously organized a competitive merger and acquisition process in an attempt to attract bidders for its stake in Braskem. After that process failed, various media outlets, including Reuters, reported that Novonor was planning to exit Braskem via a share offering.

In the latest filing, Braskem said it had received correspondence from Novonor indicating that the company was considering a secondary share offering, though no final decision had been reached.

Braskem added that it would assist Novonor in carrying out studies regarding the possible consequences of the share offering.

These include the improvements to corporate governance practices, as well as other measure necessary for Braskem’s possible migration to being listed on the Novo Mercado segment of the B3 – Brazil’s stock exchange located in Sao Paolo.

Novonor – formerly known as Odebrecht – announced its intention to sell its shares in polyolefins producer Braskem in August 2020, to fulfil commitments made to creditors before and during its bankruptcy.

We remind that Brazilian petrochemical producer Braskem's 450,000 mt/year PP plant in LaPorte, Texas, along the Houston Ship Channel completed its initial commercial production, as per the company's statement as of Sept. 10. "The launch of commercial production at our new world-class PP production line in La Porte clearly affirms Braskem's position as the North American polypropylene market leader," Braskem America CEO Mark Nikolich said in a statement. With a USD750 million investment, the new PP plant's construction started in October 2017 and was completed in June, 2020.

Braskem operates five other US PP plants in Texas, Pennsylvania, and West Virginia, with a cumulative capacity of 1.57 million mt/year that the company acquired. The new plant in La Porte, Texas, is Braskem America's first PP new build.

According to MRC's ScanPlast report, Russian producers' October PP production fell to 155,500 tonnes from 169,700 tonnes a month earlier, three producers shut its production for scheduled maintenance. Russia"s overall PP output reached 1.693 mln tonnes in January-October 2021, compared to 1.530 tonnes a year earlier. Four out of seven producers increased their capacity utilisation, with SIBUR Tobolsk/ZapSibNeftekhim traditionally accounting for the greatest growth in the output.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC

BASF plans solar park to power its Brandenburg plant in order to cut its carbon emissions by 25% by 2030

BASF plans solar park to power its Brandenburg plant in order to cut its carbon emissions by 25% by 2030

MOSCOW (MRC) -- German BASF, the world's petrochemical major, has teamed up with regional energy company envia Mitteldeutsche Energie AG for the construction and operation of a 24-MWp solar park in the state of Brandenburg that will supply green electricity to the group's nearby production site, according to RenewablesNow.

The joint project is part of BASF's efforts to cut its carbon emissions by 25% by 2030 and reach net zero emissions by 2050.

The partners plan to install some 52,000 solar modules on an area of 24 hectares (59.31 acres) in the town of Schwarzheide, southern Brandenburg, starting in the first quarter of 2022, enviaM said on Thursday.

The park is expected to be put online in the second quarter of next year and generate 25 GWh of electricity annually, the bulk of which will be supplied to BASF's production site in Schwarzheide under a long-term power purchase agreement (PPA). The electricity from the solar park will partially meet the power needs of BASF's production lines for cathode materials for batteries that are currently under construction.

The subsidy-free project, including the solar park and the substation, will cost about EUR13 million (USD 14.74m).

The initiative, which includes the creation of a joint venture that will implement the project, is still subject to approval by anti-trust authorities.

EnviaM's subsidiary envia THERM GmbH is responsible for the planning, construction and operation of the solar park.

As MRC reported earlier, Air Liquide and BASF plan to develop world largest cross-border CCS value chain. The goal is to significantly reduce CO2 emissions at the industrial cluster in the port of Antwerp. The joint project Kairos@C has been selected for funding by the European Commission through its Innovation Fund, as one of the seven large-scale projects out of more than 300 applications.

We remind that BASF aims is to electrify its production processes for basic chemicals, which are currently based on fossil fuels.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in the first nine months of 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

Air Liquide Benoit Potier to step down as CEO but to remain chairman

Air Liquide Benoit Potier to step down as CEO but to remain chairman

MOSCOW (MRC) -- Air Liquide SA said Wednesday that its board of directors has decided to separate the roles of chairman and chief executive officer, and nominated a new CEO, according to MorningStar.

The French industrial-gases company will ask shareholders to appoint Francois Jackow CEO at its annual general meeting in May. The appointment will be effective June 1.

Mr. Jackow will succeed Benoit Potier. Mr. Potier will be up for renewal as chairman of the board of directors at the AGM, the company said.

Mr. Jackow has worked at Air Liquide since 1993 and is currently its executive vice president. He will also be nominated for a seat on the company's board.

As MRC reported earlier, Air Liquide and BASF plan to develop world largest cross-border CCS value chain. The goal is to significantly reduce CO2 emissions at the industrial cluster in the port of Antwerp. The joint project Kairos@C has been selected for funding by the European Commission through its Innovation Fund, as one of the seven large-scale projects out of more than 300 applications.

We remind that BASF aims is to electrify its production processes for basic chemicals, which are currently based on fossil fuels.

We also remind that in mid-February, BASF said it was restarting one of its steam crackers at its Ludwigshafen complex in Germany after operations were halted earlier that month due to a technical issue. The naphtha cracker produces ethylene and propylene, and is one of two crackers on the site. One has a production capacity of 420,000 metric tons/year, with the other"s capacity at 240,000 metric tons/year.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in the first nine months of 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
MRC

INEOS Styrolution invests in PS recycling plant in the UK

INEOS Styrolution invests in PS recycling plant in the UK

MOSCOW (MRC) -- INEOS Styrolution, the global leader in styrenics, announced today that its Novodur 550 has been selected by THACO Plastics Component (TPC), one of the leading OEMs producing key automotive parts for global brands in Vietnam, to be used for rear spoiler application, said the company.

Novodur is INEOS Styrolution’s brand of specialty acrylonitrile butadiene styrene (ABS) copolymers. The product line contains grades with a well-balanced mix of properties, including good impact strength, dimensional stability and heat resistance. It is easy to process and gives a high aesthetic colourful surface appearance. This versatile product line is also available pre-coloured and contains products with many unique features to fit the most demanding applications across industries including automotive, household, electronics, medical and construction.

Mr. Nguyen Hoang Huy, Managing Director, P-CARE Vietnam Group, comments “As a supplier to one of most successful automotive manufacturers in Vietnam, it is imperative for us to partner with world class and innovative material suppliers like INEOS Styrolution to provide the right solutions for our customers. The high quality and consistency of INEOS Styrolution’s products enable OEMs like TPC to meet the global standards required by well-known car brands. Novodur 550 is the material of choice as it offers high heat resistance, high impact strength, good process-ability and is suitable to be coated with premium paint, offering a luxurious appearance for THACO’s cars."

"We are very pleased to partner with THACO Plastics Component and P-CARE Vietnam Group, providing them our best solutions,” says Ravi Ponnuswamy, Asia Pacific Specialties Sales Director. “The successful commercialization of this project shows that with the right partnership, Vietnamese automotive manufacturers are well equipped to develop and produce parts in their home country."

Earlier it was reported that INEOS Styrolution and Trinseo continue to implement a project to create a polystyrene processing plant using depolymerization technology in Wingles in northern France. The enterprise will be able to process up to 50 tons of polystyrene per day. It is expected to be fully operational by mid-2023.

According to the ICIS-MRC Price Report, prices of Russian polystyrene (PS) continued to go up in December.
Demand for PS was strong, the market was still experiencing a shortage of Russian material. Prices of European styrene monomer (SM) were in the range of USD1,515-1,575/tonne this week.
MRC