Baker Botts adds CCUS to its Global Hydrogen Practice Group

Baker Botts adds CCUS to its Global Hydrogen Practice Group

MOSCOW (MRC) -- Baker Botts L.L.P., a leading international technology and energy law firm, has launched a dedicated Carbon Capture, Utilization and Storage Practice Group within the firm’s Energy sector, said Chemweek.

Today’s launch comes on the heels of the firm’s Global Hydrogen Practice Group launch in June this year, which has seen significant interest from clients and the energy markets, even during the difficult COVID working environment. Carbon capture, utilization and storage, or CCUS, projects and technologies will play a critical role in the energy transition by ensuring that the world’s growing energy demand continues to be met whilst at the same time working towards achieving ever more aggressive global climate and emissions targets. CCUS will also be essential in the development of the global hydrogen economy, as “blue” hydrogen production (hydrogen produced from natural gas combined with CCUS to capture the CO2 produced) will be critical to the widespread availability of low-carbon hydrogen supplies that can be combined with virtually no-carbon “green” hydrogen production (hydrogen produced by electrolysis using renewable power) to fuel a global shift towards hydrogen. Baker Botts’ CCUS and Hydrogen offering ensures that the firm’s energy transition practices continue to keep pace with the changing global economy.

“With our market-leading energy practice and proven experience in the technology sector, the formation of this new multidisciplinary practice group is a natural step for the firm to be at the forefront of supporting the development of CCUS and hydrogen projects and technologies that will support both energy transition goals and traditional oil & gas businesses,” said Jason Bennett, Firmwide chair of Baker Botts’ Global Projects department.

As the global economy searches for ways to decarbonize sectors of the economy beyond what renewable energy alone can accomplish, low-carbon hydrogen and ammonia produced from such hydrogen, have emerged as promising sources and carriers of energy that will support that decarbonization. The strong interest in developing a ‘hydrogen economy’ is being driven by demand initiatives and targets set by the European Union and by countries such as the U.K., Japan, and South Korea, where national programs have been developed as part of an overall decarbonization plan.

“With heightened interest in reducing the carbon intensity of energy supplies, hydrogen and CCUS have emerged as critical contributors for providing that low-carbon energy to power industries and sectors that would otherwise be impractical to decarbonize,” added Bennett.

Co-headed by Washington, D.C.-based Global Projects partner Tom Holmberg and London-based Global Projects partner, Rob Butler, the CCUS and Hydrogen practices are full-service offerings for clients that build on the work already done by Baker Botts lawyers in this area.

“Hydrogen end-use markets are set to expand rapidly, and that growth will require swift development of large-scale hydrogen, renewable energy, and CCUS projects, equipment, facilities, and related technology, all of which are within the firm’s Energy Sector core practices,” commented partner Tom Holmberg.

Baker Botts has broad experience on both CCUS and hydrogen matters, having advised on both pre- and post-combustion CCUS projects, and the firm is currently advising on the proposed development and financing of a multibillion-dollar green hydrogen project in the Middle East. Baker Botts has advised on the negotiation and drafting of contracts for Toyota Motor North America to facilitate development of hydrogen fueling stations, and the firm is currently advising AME E-nnovations, a subsidiary of Andes Mining and Energy, on fuel offtake arrangements for their Highly Innovative Fuels (HIF) hydrogen projects. Each HIF project will use renewable power to create green hydrogen, which will be combined with carbon dioxide to produce e-fuels like e-gasoline.

“We have been moving quickly to engage with clients via a collaboration program that will provide for ongoing association in developing their hydrogen businesses. Clients have been receptive to our approach, as they also see the opportunities for hydrogen and carbon capture storage in the evolving energy market,” Holmberg added.

“Close collaboration with the firm’s producer, consumer, and technology clients will drive the firm to a leadership position among law firms in the energy transition industry, similar to the position we hold in LNG, and will ensure that clients and potential clients consider Baker Botts to be the default choice for the industry,” said partner Rob Butler.

The CCUS and Hydrogen practices include lawyers from the firm’s project development and finance, environmental, corporate, capital markets, private equity, tax, IP, technology and disputes practices. They include lawyers from the London, Brussels and U.S. offices, and the overall offering will be expanded to cover the firm’s entire footprint.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.



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Solvay inaugurates second sustainable solvent plant in Brazil

MOSCOW (MRC) -- Solvay says it has inaugurated its second plant dedicated exclusively to the manufacturing of sustainable solvent in Sao Paulo, Brazil. The new facility raises the company's production capacity for the bio-based solvent from 6,000 metric tons/year to 20,000 metric tons/year, said Chemweek.

The plant, located at the company's industrial complex in Paulinia, Sao Paulo, is already operating at full capacity, serving mainly the US market, which accounts for more than 30% of exports, followed by Europe, Asia, and Latin America, Solvay says.

Solvay’s sustainable solvent derives from glycerin, a renewable source, and is used in fragrances, personal care, household, and institutional cleaning items, paints and varnishes, as well as in the agribusiness and oil and gas segments, it says.

The product line has been created by Solvay’s researchers in Brazil and is part of the company’s global objective to generate 15% of its revenue from either bio-based or recyclate-based materials by 2030, it says.

As MRC reported earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

We remind that BASF-YPC, a 50-50 joint venture of BASF and Sinopec, undertook a planned shutdown at its naphtha cracker on 30 April 2020. The company initially planned to start turnaround at the cracker on April 5, 2020. The plant remained under maintenance unitl 18 June, 2020. Located in Jiangsu, China, the cracker has an ethylene capacity of 750,000 mt/year and propylene capacity of 400,000 mt/year.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
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BASF CEO named new Cefic president

MOSCOW (MRC) -- BASF's CEO, Martin Brudermuller, has been elected president of Cefic, effective immediately, at the European chemical industry association's annual general assembly, according to Chemweek.

He succeeds Daniele Ferrari, CEO of Versalis, who has held the post since October 2018. Brudermuller has been BASF’s CEO since July 2018, and the company’s CTO since 2015.

“The EU chemical industry has the capability, know-how and is developing the innovative technologies to deliver on the challenges we are facing today and in the future,” says Brudermuller. “It is my ambition during my presidency that the European chemical industry strikes a future chemistry deal in the framework of the Green Deal - where we deliver technologies and solutions, and the political framework enables their economical implementation.”

Marco Mensink, director general at Cefic, thanked Ferrari for his work as president over the past two years and expressed his belief that the new president will “be able to lead (Cefic) to deliver on the Green Deal objectives…(and])help Cefic to continue to act as a dialogue partner with the European institutions and societal actors.”

Brudermuller also released an open letter to European citizens following his election, saying that the transition toward climate neutrality by 2050, which is the target of the EU Green Deal, “will bring huge challenges, but it also brings a set of opportunities for industry. In being successful, Europe must therefore show its leadership in innovating and deploying competitive new technologies for delivering a climate neutral, circular and digital transition.” He also noted China’s recent pledge to become carbon neutral by 2060, saying that it “is encouraging and can be a key driver for a truly joint global effort.”

Brudermuller emphasized the need to achieve this transition and his belief that the European chemical industry can become an “innovation hub and a focus area for investments into breakthrough technologies.” He restated Cefic’s target to strike a 'Future Chemicals Deal,' saying he would make it his personal objective to discuss the right framework conditions with European leaders to find joint solutions.

Explaining the industry’s abilities and working with European policymakers and governments to have the right framework conditions in place "that keep competitiveness during this transition in clear focus” will be Cefic’s main aim for the coming period, he says. The Green Deal and climate neutrality by 2050 means a very deep transformation for Europe's chemical industry must take place within only one or two investment cycles, while maintaining its strong position across global markets, Brudermuller says.

The importance of the European Recovery Plan package in moving Europe forward in the post-COVID-19 era and the potential of the chemical industry to deliver innovative and climate-neutral technologies to succeed with the transition, while simultaneously creating jobs and growth, was also highlighted by Cefic's new president.

As MRC wrote previously, Cefic says that the European chemical industry has received a record number of awards in the 2020 European Responsible Care awards “Caring in COVID-19 Times,” for their global response in fighting the pandemic. The awards given to 16 chemical companies and federations across Europe showcase the essential role of the chemical industry in the fight against COVID-19, Cefic says. Winning companies and federations were recognized and rewarded for their efforts to keep critical supply chains running, to protect workers and the workplace, and to support communities in the unprecedented times, it says.

We remind that in 2017, SIBUR joined the European Chemical Industry Council (CEFIC). SIBUR has also become a member of the European Committee of Ethylene Producers and Technology Suppliers (EEPC, part of CEFIC). Membership in the Council allowed SIBUR to take part in the work of 93 sectoral groups on more than 120 petrochemical products, in 90 strategic groups working on issues of sustainable development, innovation, trade, energy and law in the field of petrochemicals.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
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Lonza unveils new business structure; expects to post above-market growth to 2023

MOSCOW (MRC) -- Lonza (Basel, Switzerland) says it has developed a new structure for its pharma, biotech, and nutrition (LBPN) segment to increase “divisional end-to-end performance accountability” and to strengthen governance and process excellence from global functions, as the company proceeds with the previously announced divestment of its specialty ingredients (LSI) segment, said Chemweek.

The company expects double-digit sales growth, core EBITDA margin of around 33–35%, and double-digit return on invested capital (ROIC) for 2023, it says. “We have considered areas for review, now that Lonza has a dedicated focus on the pharma and biotech industry. Lonza’s structural and cultural blueprint will help us to achieve a harmonized ‘one business’ identity and provide a greater level of transparency on company performance to our investor and analyst community,” says Albert M. Baehny, chairman and CEO ad interim at Lonza.

The new structure of the LPBN segment comprises four business divisions: biologics, which represents 47% of the group’s sales; capsules and health ingredients, 27% of group sales; small molecules, 16% of sales; and cell, gene therapy, and bioscience, 10% of sales, according to Lonza. This structure will become operational from 1 January as the business is currently in a period of transformation, it says.

The company estimates that all of its business units will have a compound annual growth rate (CAGR) higher than that of their respective markets in the 2020–23 period. Lonza anticipates double-digit sales growth in this period, driven by biologics; small molecules; and cell, gene therapy, and bioscience businesses, it says. The CAGR for capsules and health ingredients for 2020–23 is expected to be in the low- to mid-single-digit range; for biologics in the low-double-digit range; for small molecules in the high-single- to low-double-digit range; and for cell, gene therapy, and bioscience in the double-digit range, it notes.

The estimated double-digit ROIC is driven by growth and margin expansion, Lonza says, adding that it is confident on delivering an improved core EBITDA margin, although it is committed to investing in future growth projects. Capital expenditures in 2021 and 2022 are likely to remain at 2019 levels, it adds.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

Trinseo gets ISCC mass-balance certification for PS, PC, rubber

MOSCOW (MRC) -- Trinseo (Berwyn, Pennsylvania) says it has received mass-balance certification for three families of products that it manufactures at sites in Europe: polystyrene (PS), at Tessenderlo, Belgium; polycarbonate (PC), at Stade, Germany; and synthetic rubber, at Schkopau, Germany, reported Chemweek.

The certification was issued by International Sustainability & Carbon Certification (ISCC) following an audit by TUV Nord.

“The mass-balance certification is another step taken by Trinseo, as a material solutions provider, towards helping our customers reach their sustainability goals,” says Andre Lanning, vice president/strategy, corporate development, sustainability, and marketing communications.

Mass balance is a chain-of-custody approach to circularity that accounts for the intermingling of recycled, bio-based, and virgin petrochemical materials, in contrast to the alternative approach, physical segregation.

As MRC informed earlier, Trinseo and its affiliate companies in Europe have announced a price increase for all polystyrene (PS), acrylonitrile-butadiene-styrene (ABS) and acrylonitrile-styrene copolymer (SAN) in Europe, according to the company's press release as of 5 October. Effective October 1, 2020, or as existing contract terms allow, the contract and spot prices for the products listed below rose as follows:

- STYRON general purpose polystyrene grades (GPPS) -- by EUR75 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR75 per metric ton;
- MAGNUM ABS resins - by EUR50 per metric ton;
- TYRIL SAN resins - by EUR30 per metric ton.

According to ICIS-MRC Price report, October prices of Russian PS continued their upward trend. A shortage of material remained in the domestic market. Traders said Nizhnekamskneftekhim reduced its offer prices for this month's PS purchases to 40%. October prices of Nizhnekamskneftekhim's GPPS grew for the agreed with buyers quantities to Rb89,000-95,000/tonne CPT Moscow, including VAT, whereas HIPS - to Rb93,000-99,000/tonne CPT Moscow, including VAT.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees.
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