Cummins and Sinopec launch JV to produce green hydrogen technologies in China

Cummins and Sinopec launch JV to produce green hydrogen technologies in China

MOSCOW (MRC) -- Cummins Enze, headquartered in Foshan, Guangdong Province, China, would initially invest USD47 mln (RMB 300 mln) in the establishment of a production facility for proton exchange membrane (PEM) electrolyzers, said the company.

After completion in 2023, the plant’s initial manufacturing capacity of 500 megawatts of electrolyzers per year will be gradually increased to one gigawatt per year over the next five years.

Cummins Enze will also offer a range of hydrogen generating system options to fulfill the needs of a diverse range of applications. This will comprise electrolyzers for both small-scale hydrogen production, such as a hydrogen fueling system for on-site hydrogen generation, and large-scale hydrogen generation facilities capable of 100 megawatts or more.

Sinopec is one of China’s leading hydrogen energy suppliers, with yearly hydrogen output reaching 3.5 million tons, accounting for 14% of the country’s total. Sinopec established the ambition of becoming the world’s leading chemical company focused on clean energy last year and designated the entire hydrogen industry chain as the primary business for its new power strategy. Sinopec has stepped up its efforts to convert gray hydrogen to decarbonized hydrogen, with the goal of becoming “China’s largest hydrogen energy firm.” Commercializing renewable hydrogen in China is expected to benefit not only green sectors, but also reduce hydrogen supply bottlenecks, hence accelerating fuel cell car adoption.

Sinopec has a solid industrial foundation and an integrated value chain as a significant industrial resource for hydrogen energy. Sinopec develops the complete service capability of oil, gas, hydrogen, and electricity and seeks consumer-oriented breakthroughs to accelerate the energy revolution of the industry chain. As Sinopec’s inaugural fund, the Enze Fund will also use Sinopec’s supply chain optimization, sales and marketing network to expedite the joint venture’s future commercial growth.

The joint venture’s new factory will be built in Foshan, China, which is a national ecological basis for the hydrogen energy industry. It boasts a mature hydrogen energy industry chain as a pioneer of the hydrogen economy. Additionally, it is one of the first regions identified by China’s central government for support in order to test and build the hydrogen sector.

As per MRC, Sinopec has set up a separate company to work on alternative energy projects. The authorized capital of the company, named Zhongshihua Xiongan Xinnenyuan (Zhongshihua Xiongan Xinnenyuan), amounted to 100 million yuan (USD15.7 mln). The scope of the company's activities will include work on projects in such areas as technologies based on hydrogen energy, the sale of equipment related to the storage and use of hydrogen energy, the promotion and implementation of services in the field of new energy technologies, as well as the sale of chargers for electric vehicles.

Earlier it was reported that SIBUR, the largest petrochemical complex in Russia and Eastern Europe, and the Chinese petrochemical giant - Sinopec - raised project financing for the Amur Gas Chemical Complex (GCC) from a syndicate of international, Chinese and Russian banks totaling USD9.1 bn.

Sinopec Corp. is one of the world's largest integrated energy and chemical companies. Business Sinopec Corp. includes oil and gas exploration, production and transportation of oil and gas, oil refining, petrochemical production, production of mineral fertilizers and other chemical products. In terms of refining capacity, Sinopec Corp. ranks second in the world, fourth in terms of ethylene capacity.
MRC

EU approves German scheme to produce green hydrogen overseas

EU approves German scheme to produce green hydrogen overseas

MOSCOW (MRC) -- The European Commission has approved, under EU State aid rules, a EUR900 million (USD1 billion) German scheme to support investments in the production of renewable hydrogen in non-EU countries, which will be then imported and sold in the EU, according to Kemicalinfo.

The scheme, called ‘H2Global’, aims at meeting the EU demand for renewable hydrogen that is expected to significantly increase in the coming years, by supporting the development of the unexploited renewable resource potential outside the EU. It will contribute to the EU environmental objectives, in line with the European Green Deal, without unduly distorting competition in the Single Market.

The Commission assessed the scheme under EU State aid rules, in particular the 2014 Guidelines on State aid for environmental protection and energy. The Commission found that the aid is necessary and has an incentive effect, as the projects would not take place in the absence of the public support.

Furthermore, the Commission found that aid is proportionate and limited to the minimum necessary, as the level of aid will be set through competitive auctions.

Finally, it found that the positive effects of the measure, in particular on the environment, outweigh any possible negative effects in terms of distortions to competition. On this basis, the Commission concluded that H2Global is in line with EU State aid rules.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €900 million German scheme will support projects leading to substantial reductions in greenhouse emissions, in line the EU’s environmental and climate objectives set out in the Green Deal.

It will contribute to addressing the increasing demand for renewable hydrogen in the Union, by supporting the development of this important energy source in areas of the world where it is currently not exploited with a view to importing it and selling it in the EU. The design of the scheme will enable only the most cost-effective projects to be supported, reducing costs for taxpayers and minimising possible distortions of competition.”

Under the H2Global scheme, a new Hydrogen Intermediary Network Company (to be known as Hint.Co) would buy and sell the imported green hydrogen. It would issue requests for proposals for the production of renewable H2, or derivatives such as green ammonia, green methanol and e-kerosene, with individual projects outside the EU then bidding into tenders, with Hint.Co awarding ten-year hydrogen purchase agreements (HPAs) to the winners. All the bidders would need to contribute to the construction of new renewables projects, as H2 made from existing energy supplies are not allowed under the scheme.

As MRC reported earlier, Sweden’s Nuberg EPC said on Monday that it was awarded Uzbekistan Hydrogen Peroxide JV LLC's technology, engineering and construction contract for the 85 TDP (50% chemical grade H2O2) hydrogen peroxide plant project in Navoi region, Uzbekistan.

We remind that Uzbekistan plans to launch in the fourth quarter of 2023 the production of polymers in a complex with MTO technology (from methanol to olefins). The complex with a capacity of 720,000 tonnes of polymers per year will be located in the center of the free economic zone (FEZ) in Karakul, Bukhara region. The USD2.5 billion project is expected to be commissioned in the fourth quarter of 2023 and will provide the Uzbek industry with olefinic hydrocarbons. The gas chemical complex is designed for processing local raw materials based on a licensed technological process for converting methanol into olefins, which has no analogues in the CIS region.

Polypropylene (PP) production will be carried out in cooperation with W. R. Grace & Co. (USA), a world leader in this field. The fact that Uzbekistan intends to build a new gas chemical complex (GCC) in the coming years, which will become the basis of the largest technological cluster in the region, became known in 2018.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,047,100 tonnes in the first ten months of 2021, up by 17% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,226,530 tonnes in January-October 2021, up by 26% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding stat-copolymers of propylene (PP random copolymers) decreased significantly.
MRC

US bankruptcy judge approves Limetree Bay sale to Jamaican company

MOSCOW (MRC) -- A US bankruptcy judge has approved the USD62 MM sale of Limetree Bay refinery to a Jamaican oil storage company, reported Reuters with reference to the judge's statement on Tuesday.

The company, West Indies Petroleum, was named the winning bidder on Saturday by Limetree after a second auction was conducted over the weekend.

The winning bidder of the first auction, St. Croix Energy, was named the backup bidder for the refinery.

As MRC informed earlier, the St. Croix, US Virgin Islands, refinery filed for bankruptcy in July after investors poured USD4.1 billion into an unsuccessful revival of the aging facility. US regulators halted processing after residents complained of foul odors, oil that was sprayed on nearby homes and contaminated drinking water supplies.

Jefferies Financial Group Inc, which was hired to find a buyer, said in its marketing pitch that “zero facility investment” is required for a restart. It also said the refinery had been fully operational since January 2021 and has “strong government support” at territorial and municipal levels.

And Judge Jones, who is a veteran of refinery restructurings in the Southern District of Texas court, said in July he was concerned about Limetree’s ability to through Chapter 11 with the existing DIP loan. The process of decommissioning the refinery will take several months, the company’s owner, a consortium led by EIG Global Energy Partners, told the Texas court this month.

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 2,047,100 tonnes in the first ten months of 2021, up by 17% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,226,530 tonnes in January-October 2021, up by 26% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding stat-copolymers of propylene (PP random copolymers) decreased significantly.
MRC

Pertamina to ensure fuel supply as workers plan strike

MOSCOW (MRC) -- Indonesian state-energy company PT Pertamina said on Wednesday that ensuring fuel supply was its “top priority” as workers plan a ten-day strike next week, just when fuel demand typically increases as people travel for year-end holidays, reported Reuters.

After the union failed to reach a deal with management over labour terms, workers at the country’s biggest fuel supplier are set to hold a national strike from Dec. 29 to Jan. 7.

“The management anticipate and mitigate any conditions to ensure that the company’s operations continue to run smoothly,” Pertamina said in a statement, adding it was open to further dialogue.

As it seeks to short up supplies, the company has issued a tender seeking up to 1.2 million barrels of high speed diesel (HSD) for January delivery.

It was looking for three cargoes for delivery between Jan. 7-12, Jan. 13-18, and Jan. 19-24, respectively with a maximum volume of 400,000 barrels each, the tender document showed.

The tender will remain open till Dec. 23 and has a validity until Dec. 24.

It is unclear how many of Pertamina’s workers are expected to strike or why negotiations failed, but the union said the strike could end earlier than expected if its demands are met.

As MRC informed previously, the fire, which broke out at one of Pertamina’s fuel storage tanks in the Cilacap refinery and petrochemical complex on 13 November 2021, did not affect operations at any other plants at the same complex. In fact, all other production lines were operating normally during the incident. The fire was completely extinguished after about 12 hours.

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 2,047,100 tonnes in the first ten months of 2021, up by 17% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,226,530 tonnes in January-October 2021, up by 26% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding stat-copolymers of propylene (PP random copolymers) decreased significantly.
MRC

N. America chemical rail up by 5.3% in mid-December

N. America chemical rail up by 5.3% in mid-December

MOSCOW (MRC) -- North American chemical railcar traffic rose for a third straight week - up by 5.3% year on year for the week ended 18 December - with increases in the US and Canada more than offsetting a decline in Mexico, according to the latest data from the Association of American Railroads (AAR).

For the first 50 weeks of 2021, ended 18 December, North American chemical railcar traffic was up by 4.3% year on year to 2.28m.

In the US, chemical railcar loadings represent about 20% of chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest. In Canada, producers rely on rail to ship more than 70% of their products, with some exclusively using rail.

As per MRC, North American chemical railcar traffic rose by 3.3% year on year for the week ended 11 December, led by an 8.3% increase in the US that more than offset a decline in Canada, said Seanews. North American rail volume for the week ending November 27 on 12 reporting US, Canadian and Mexican railways totalled 295,807 carloads, down 4.4 per cent together with 281,953 intermodal units, a fall of 16.1 per cent year on year.

North American rail volume for the week ending December 18, 2021, on 12 reporting U.S., Canadian and Mexican railroads totaled 331,416 carloads, down 1.1 percent compared with the same week last year, and 349,986 intermodal units, down 7 percent compared with last year. Total combined weekly rail traffic in North America was 681,402 carloads and intermodal units, down 4.3 percent. North American rail volume for the first 50 weeks of 2021 was 34,480,405 carloads and intermodal units, up 4.8 percent compared with 2020.

MRC