Lotte Chemical to invest USD502 mln in expantion of eco-friendly specialty materials plants at its petrochemical complex in Daesan

Lotte Chemical to invest USD502 mln in expantion of eco-friendly specialty materials plants at its petrochemical complex in Daesan

MOSCOW (MRC) -- Lotte Chemical Corp., South Korean petrochemical major, is set to spend 602 billion won (USD501.5 million) in building eco-friendly materials plants at one of its petrochemical complexes in the country, according to Kemicalinfo.

Lotte said on Monday it agreed with a local government to invest in a battery electrolyte organic solvents factory as well as carbon capture and utilization (CCU) facility at its petrochemical complex in Daesan, about 140 kilometers southwest of Seoul.

“This investment is a key step in ‘Green Promise 2030’ to expand eco-friendly and specialty chemical materials such as battery electrolyte organic solvents and carbon dioxide capture projects,” Lotte’s basic materials business head Hwang Jin-gu said in a statement.

Lotte plans to build a plant to produce organic solvents - high-purity ethylene carbonate (EC) and di-methyl carbonate (DMC) - for electrolytes, a key material for lithium-ion batteries. South Korea totally relies on imports for organic solvents that make up about 30% of the electrolytes’ total cost.

The company decided to set up a facility that captures and liquefies 200,000 tons of carbon dioxide with a target of commercialization in the second half of 2023. The carbon dioxide processed in the facility will be used as materials for the high-purity EC and DMC, as well as sold as materials for semicon-ductor cleaning liquid.

In addition, Lotte will expand the production capacity of ethylene oxide adduct, a high-value-added construction material, to 480,000 tons a year from 330,000 tons.

Meanwhile, Lotte plans to triple liquefied petroleum gas (LPG) use for ethylene production at the Daesan complex as the domestic industry rushed to diversify feedstock for cost-cutting amid expecta-tions of lower naphtha supply from local refineries, which aim petrochemical markets. It will ramp up LPG cracking at the complex to about 30% from the current 10%.

That is a part of the company’s plan to increase LPG usage announced in July 2021, a company source said. At that time, Lotte said it will invest 140 billion won in domestic facilities to raise the gas usage for ethylene output to 40% by the end of this year from 20%. It operates ethylene plants in Daesan and Yeosu with a combined annual capacity of 2.3 million tons.

As MRC reported before, Lotte Chemical plans to take off-stream its naphtha cracker in Yeosu for a scheduled maintenance this year. The company is expected to put its Yeosu naphtha cracker under scheduled maintenance around May or June, 2022. Lotte's Yeosu naphtha cracker can produce 1.2 million tonnes per year (tpy) of ethylene.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

Lotte Chemical runs two naphtha crackers in South Korea. One cracker is located in Daesan county in Seosan which can produce 1.1 million tonnes per year of ethylene with the other 1.2 million tonnes per year cracker in the southwestern city of Yeosu.
MRC

Tosoh appoints new president

Tosoh appoints new president

MOSCOW (MRC) -- Japanese chemicals company Tosoh Corp has appointed Mamoru Kuwada as its new president and representative director, effective 1 March, said the company.

Kuwada is currently executive vice president of Tosoh and president of Tosoh’s Specialty Group. In his new role, Kuwada succeeds Toshinori Yamamoto, who will become a corporate advisor to the company after the annual general meeting in June.

“Implementation of the company’s fiscal 2023 medium-term business plan will be overseen by a new management team, with the aim of further strengthening its earnings and business foundation and achieving further growth,” Tosoh said.

Tosh is a large chlor-alkali producer and it supplies ethylene, polyethylene, and functional polymers. It also has an advanced materials business that serves the global semiconductor, display, and solar industries.

As MRC informed earlier, Tosoh Corporation, a major Japanese petrochemical producer, has announced it will permanently stop producing and selling toluene diisocyanate (TDI) and TDI-related products from its Nanyo complex in Japan, effective April 2023. Despite the continuous implementation of measures to improve profitability, the environment surrounding this business has become increasingly severe in recent years, and there are no prospects for improvement, the company stated. Tosoh currently produce 25,000 t/y of TDI at the site.

As MRC reported earlier, Tosoh resumed normal production at its caustic soda plant in Nanyo City (Nanyo, Yamaguchi Prefecture, Japan) with the capacity of 1.188 million tons of caustic soda and 1.06 million tons of chlorine per year on June 24, 2021. The company experienced some technical issues when restarting after a scheduled repair. Since June 12, the caustic and chlorine production capacity utilisation was reduced by about 30%.

Founded in 1935, Japan's Tosoh Corporation, headquartered in Tokyo, is an international chemicals and specialty materials company. The main activity of the company is the production of chlor-alkali and petrochemical products, which include ethylene, propylene, polypropylene, polyethylene and synthetic rubbers. The Tosoh Group globally includes over 130 companies with manufacturing facilities and offices in Japan, China, the Philippines, Indonesia, Singapore, Taiwan, South Korea, Germany, Belgium, Holland, Italy, UK, Greece, Switzerland and the USA.
MRC

Essar Oil to build UK first refinery-based hydrogen furnace

Essar Oil to build UK first refinery-based hydrogen furnace

MOSCW (MRC) -- Essar Oil UK, the leading UK-focused downstream energy company, announces plans to install a new GBP45 MM (US60.8 MM) furnace at Stanlow that’s capable of using hydrogen as its fuel source, which is the first for the UK, according to Hydrocarbonprocessing.

This marks another milestone in Essar’s goal to becoming the UK’s first low carbon refinery. It follows the launch of Vertex Hydrogen last month, a new Essar-led JV, in which the company will invest GBP1 B (USD1.3 B) over the next five years to drive down emissions, including the development of new hydrogen production plants at Stanlow, forming a central part of the HyNet Northwest decarbonization cluster.

The scheme (which is subject to planning approval) comprises the decommissioning of three existing furnaces and their replacement with a single, highly efficient furnace, which includes a chimney of approximately 71 m.

The scheme will provide a number of improvements that will lead to benefits for Stanlow and the surrounding area, including lower carbon emissions due to gas-only firing and new burners that emit lower levels of nitrogen oxide and futureproofing to enable the use of sustainable fuel types in the future such as hydrogen. The furnace is currently being fabricated in Thailand. The largest single module is 26.5 m long, by 18.5 m tall, by 14.5 m and the furnace will be delivered on site almost fully constructed.

The new furnace forms a key part of the company’s strategy to reduce its own carbon emissions. The furnace is unique in that it will have the capability to run entirely off hydrogen, becoming the first of its kind based at a UK refinery. It has an improved energy efficiency of 4% compared to existing furnaces, which will save 16,600 tons of CO2 per year, as well as reducing ongoing maintenance costs.

Set to be installed in 2022, the furnace will become fully operational next year. From 2026 onwards it will be fueled by hydrogen produced at Stanlow as part of the HyNet Northwest decarbonization cluster. Essar’s Vertex Hydrogen will develop the world’s first and largest blue hydrogen production plant at Stanlow. Hydrogen will be used at the site and will be distributed to industrial businesses in the region to support their transition to low carbon.

As MRC informed earlier, British refiner Essar Oil plans to build two low-carbon hydrogen plants at its Standlow refinery in northwest England at a cost of 750 million pounds (USD1 billion). The company submitted planning applications for the project in October, 2021.

We remind that in late September 2019, Essar resumed operations at its cracker in Stanlow, UK with the capacity of 45,000 mt/year of ethylene and 165,000 mt/year of propylene. It was shut on 11 September, 2019, due to the power outage at the site.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
MRC

Honeywell introduces new technology to produce key feedstock for plastics

Honeywell introduces new technology to produce key feedstock for plastics

MOSCOW (MRC) -- Honeywell announced that it has introduced a new solution for producing renewable naphtha for petrochemical production using their Honeywell UOP Ecofining technology, said Hydrocarbonprocessing.

The new pathway can produce high yield of naphtha from sustainable feedstocks like used cooking oil and animal fats. Naphtha is a valuable petrochemical feedstock used in the production of plastics, specifically olefins that are building blocks for other chemicals and aromatics that are used to produce polyester and other packaging materials. Naphtha is traditionally derived from crude oil and natural gas condensates but can now be produced from renewable feedstocks. Renewable naphtha from sustainable feeds such as used cooking oil has a 50%-80% lower GHG footprint compared to petroleum feeds, depending on the feedstock.

Prior to the introduction of renewable naphtha solution, the UOP Ecofining technology has been used to produce predominantly green diesel and green jet fuel, with small amounts of bio-naphtha being produced as a secondary product. The same Ecofining technology can be adapted to produce high yields of renewable naphtha as its predominant product, reflecting the versatility of the Ecofining design and ability to produce a range of products based on market needs.

"We are actively engaged with customers to drive new technology adoption, as renewable petrochemical feedstocks have grown in interest as consumers prefer more bio-based products,” said Ben Owens, Vice President and General Manager, Honeywell Sustainable Technology Solutions. “We see renewable naphtha produced from the UOP Ecofining process as a proven solution available today to help petrochemical producers reduce the carbon footprint of their products compared to using petroleum-based feeds."

As per MRC, Lukoil-Permnefteorgsintez will use a number of technological processes from Honeywell UOP (USA) to convert low-value vacuum gas oil into gasoline and propylene. LUKOIL-Permnefteorgsintez will use a range of Honeywell UOP processes to convert low value vacuum gas oil into high value products such as gasoline and propylene.

As MRC reported earlier, in March 2021, Honeywell announced that Hengli Petrochemical Co. Ltd. successfully used Callidus burner technology from Honeywell UOP to minimize nitrogen oxide (NOx) and carbon monoxide (CO) emissions in China, and reduce the impact of these emissions while ensuring safe and stable operations. Along with phenol, acetone is largely used to produce bisphenol A (BPA), which, in its turn, is used in the production of plastics such as polycarbonate (PC) and epoxy resins.
MRC

Eni and SEA signs agreement on biofuels for aviation

Eni and SEA signs agreement on biofuels for aviation

MOSCOW (MRC) -- Eni and SEA, the Milan Malpensa and Milan Linate airports operator, have signed an agreement to promote decarbonization initiatives in the aviation sector and accelerate the ecological transition of the two airports, according to Hydrocarbonprocessing.

The agreement stems from a collaboration that first began in December 2021 with the supply of sustainable aviation biofuels for private flights. The collaboration has been extended to commercial flights too and includes the supply of pure hydrotreated vegetable oil (HVO) biofuel for ground transportation, as well as a joint development program for smart mobility services. These products and services support the reduction of emissions from airport operations and the decarbonization of airport-related air and ground transport.

"With this initiative, Eni is building on the potential of sustainable biofuels for aviation, as they currently represent the only immediately available solution to decarbonize the sector," said Umberto Carrara, Director of Green/Traditional Refining and Market at Eni. "Eni started producing SAFs a few months ago with a mix containing 0.5% of used cooking oil, but there are also plans to develop Eni biojet soon. This will be made exclusively from waste materials such as UCO or animal fats and can be used in a blend with conventional jet fuel of up to 50%. The goal is to produce around 200,000 tpy by 2024 and to double production by 2030."

As MRC wrote earlier, Eni is evaluating conversion of its Livorno refinery in northwest Italy into a biorefinery, as part of the Italian company's wider strategy to make its activities more environmentally sustainable. Eni has already converted two of its Italian refineries and is looking to almost double its biorefining capacity to around 2 million mt/year by 2024, and expand this to at least five times by 2050, as part of its pledge to achieve complete carbon neutrality by 2050.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

Eni, abbreviation of Ente Nazionale Idrocarburi, in full Eni SpA, Italian energy company operating primarily in petroleum, natural gas, and petrochemicals. Established in 1953, it is one of Europe's largest oil companies in terms of sales.
MRC