Evonik and LanzaTech working on bio-processed precursors for specialty plastics

MOSCOW (MRC) -- Evonik Industries and LanzaTech have signed a three year research cooperation agreement which will see Evonik combining its existing biotechnology platforms with LanzaTech’s synthetic biology and gas fermentation expertise for the development of a route to bio-processed precursors for specialty plastics from waste derived synthesis gas, reported Evonik on its site.

In this route, microorganisms placed in fermenters are used to turn synthesis gas into chemical products. Synthesis gases comprise mainly of either carbon monoxide or carbon dioxide and hydrogen and can come from a variety of gasified biomass waste streams including forestry and agricultural residues and gasified municipal solid waste.

"Industrial biotechnology is one of the core competences of Evonik. It enables new approaches to specialty chemicals and processes," explains Prof. Stefan Buchholz, the head of Creavis. Creavis, Evonik’s strategic innovation arm, is committed to developing alternative bio-based pathways for the production of such specialty chemicals, to not only reduce dependence on fossil fuels, but also reduce the greenhouse gas emissions associated with their manufacture. "The use of renewables and specific waste streams is one of the main focuses of our research and development work, and LanzaTech offers an additional interesting approach," says Buchholz.

As MRC reported before, in early 2013, Evonik Industries began operating a pilot plant for amino lauric acid (ALS) in Slovenska Lupca, Slovakia. The effort represents Evonik’s next step forward in the production of sustainable high-performance plastics. The biobased amino-lauric acid is an alternative to petroleum-based laurin lactam (LL). ALS replaces the monomer LL in the manufacture of sustainable high-performance plastics and yields an identical compound polyamide 12 (PA 12). Whether in automobiles, sports, crude oil production or photovoltaics, Evonik produces a complete range of polyamide products with customized properties.

LanzaTech is a leader in gas fermentation technology that provides novel and economic routes to fuels and high value chemicals from waste gas streams. LanzaTech’s unique process, certified by the Roundtable on Sustainable Biomaterials, creates sustainable fuels and platform chemicals that serve as building blocks for everyday products such as rubber and plastics.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2012, the company generated sales of around EUR13.6 billion and an operating profit (adjusted EBITDA) of about EUR2.6 billion.
MRC

MOSCOW (MRC) -- Representatives of Russian Rosneft, Pirelli Tyre Russia and Rosneft- Armenia signed in Yerevan a memorandum of understanding today to establish a joint venture for production of butadiene- styrene rubber, said Arka, citing press service of Armenian president.

The memorandum and several other agreements aimed at enhancing cooperation were signed after the meeting of Armenian President Serzh Sargsyan with Rosneft head Igor Sechin.

At the order of Russian President Vladimir Putin a special delegation has arrived in Armenia to assess the available opportunities and develop specific action program to modernize Nairit chemical plant in Armenia.

In 2006, 90% of Nairit’s shares were sold to British RHinoville Property Limited for $40 million. The remaining 10% belong to the Armenian government. RHinоville Property Lim ited was set up by Polish Samex, US Intertex and Russian Eurogaz . In April 2010 the plant stopped producing rubber. Before the halt, it sold its products chloroprene rubber- to EU countries, Russia (about 30% of the exports), the United States and 20 other countries.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time. This week Rosneft has taken over an oil unit of US bank Morgan Stanley’s commodities division for an undisclosed sum. The acquisition-hungry oil giant is getting the global oil merchanting unit that includes access to and international network of oil storage facilities, crude oil and oil products inventories and freight agreements.

MRC

MOSCOW (MRC) -- Venezuela and India have agreed to build a naphtha production unit in the South American OPEC nation in the latest sign of widening energy ties between the two countries, said Bisiness-standard.

Foreign Minister Elias Jaua did not give further details about the deal, nor the size of the proposed unit. Several big Indian energy firms, including Reliance Industries , already work with Venezuela's state oil company PDVSA.

In brief comments carried by Venezuelan state TV, Jaua said the unit would be built in the Orinoco extra heavy oil belt. The naphtha, a liquid mixture of hydrocarbons, would then be mixed with the area's tar-like crude to produce lighter oil for export.

The joint construction of a naphtha unit would deepen trade ties that have grown in recent years as an increasing supply of Venezuelan crude flows to India. According to PDVSA's official figures, crude sales to India more than doubled to 366,000 barrels per day (bpd) in 2012, compared to 165,000 bpd the previous year.

Venezuela boasts the world's biggest crude oil reserves, much of them in the vast Orinoco belt. But its output of processed fuels was curbed by a gas leak and deadly explosion that struck its biggest refinery, Amuay, in August 2012.

Partly as result, Venezuela's imports of refined fuel products from the United States rose by almost a quarter to an average of 87,000 bpd between January and September this year, compared with the same period in 2012, according to the U.S. Energy Information Administration (EIA).

We remind that earlier this year RIL announced that it would invest over Rs 100,000 crore in expansion of its petrochemical capacities and adding value to its refining business. Besides, in October last year the company unveiled its plans to expand capacity at its refineries in the western state of Gujarat.

MRC

MOSCOW (MRC) -- A Turkish petrochemicals group, Polisan Holding plans to restart the former PET polymer plant of Spanish group La Seda de Barcelona in Volos, Greece by the end of this year, said Palstemart.

The 80,000 tpa Artenius Hellas facility, which was mothballed by the insolvent Barcelona-based group early this year, was bought in September by Polisan of Ankara for EUR8.6 mln. The Greek plant, which employed almost 100, has been renamed Polisan Hellas.

Polisan has been negotiating with potential PET customers for the PET and bottle preforms unit and local news reports the group’s CEO, Necmettin Bitlis, is confident that the market will accept more than 90% of the Volos output. The group is targeting sales in Greece, the Balkans and Turkey. The former La Seda plant suffered from a cutback in production capacity and dwindling local demand. The Spanish group has been seeking buyers for its PET operations and originally looked at possibly closing down the Greek unit altogether if it was unable to sell it.

We remind that La Seda has been in talks with creditors since last September after high material costs and excess supply of the PET plastic containers it makes put pressure on the business. As MRC wrote before, Invista Performance Technologies has acquired from La Seda de Barcelona SA intellectual property relating to its leading purified terephthalic acid (PTA), polyethylene terephthalate (PET) and related process technologies, including the full rights to exclusively license the technologies in the region comprising Europe, the Middle East and Africa.
MRC

MOSCOW (MRC) -- Production of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) in Russia rose from January to November 2013 by 20% year on year, according to MRC ScanPlast.

The overall output of Russian GPPS and HIPS grades totalled 281,700 tonnes over the stated period. Increased capacity utilisation at Nizhnekamskneftekhim helped production to grow. At the same time, stronger domestic consumption of material and expansion in foreign markets made it possible to load the plant's production line. Thus, GPPS and HIPS consumption grew by 8% from January to November and totalled 313,700 tonnes.

As reported previously, increased production helped reduce purchasing in foreign markets and displace imported grades. Thus, imports of polystyrene (PS) dropped by 10%, whereas exports to foreign markets surged by 42%.

At the same time, Nizhnekamskneftekhim accounted for 78% of the total PS production in the country over the first eleven months of 2013, while this figure was 74% a year earlier. PGProf and Gazprom neftekhim Salavat accounted for 14% and 8%, respectively.

MRC