Evonik invests further in Denmark-based hydrogen peroxide start-up

MOSCOW (MRC) -- Evonik Industries says it has made a second investment in HPNow (Copenhagen, Denmark) through Evonik's venture capital unit. Evonik participated in the first financing round of the start-up in 2017, according to Chemweek.

HPNow has developed a modular generator, HPGen, that produces hydrogen peroxide (H2O2) directly on site based on a patented electrochemical technology, the company says. Further details have not been disclosed.

HPNow has until now addressed mainly the market for agricultural drip irrigation water treatment but is now entering markets for the treatment of industrial wastewater with high oxygen demand, for advanced oxidation in municipal water treatment, and for use in cooling systems, Evonik says.

HPNow’s patented technology breaks down H2O2 into water and oxygen after its application, making it possible to use the environmentally friendly H2O2 even in places to which transport has been uneconomical or even impossible until now, Evonik says. All that the system needs on site is electricity, water, and air, the company adds.

"This patented technology offers the possibility of a demand-oriented and cost-efficient supply of hydrogen peroxide directly to the customer," says Michael Traexler, head/active oxygens at Evonik. "This investment supports our strategy of offering our customers customized system solutions."

As MRC reported before, Dow and Evonik have recently entered into an exclusive technology partnership. Together, they plan to bring a unique method for directly synthesizing propylene glycol (PG) from propylene and hydrogen peroxide to market maturity.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, excluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 36,000 employees.
MRC

MOSCOW (MRC) -- Restaurants, e-commerce platforms and delivery firms will be forced to report their utilization of single-use plastics to the authorities and also submit formal recycling plans, China's commerce ministry said in published proposals, said Hydrocarbonprocessing.

The Ministry of Commerce said it had established a nationwide system for retailers to report their plastic consumption as part of trial scheme to encourage recycling. Plastic pollution has become one of China's biggest challenges, with vast amounts buried in landfills or dumped in rivers. The rise in home food deliveries has also caused volumes to surge.

In September, the ministry said single-use plastic bags and eating utensils would be banned from major cities by the end of the year, while single-use straws would be banned nationwide. Wang Wang, chairman of the China Scrap Plastic Association, said the bans would "only resolve the most visible types of plastic pollution" and were just one part of the country's efforts to tackle waste.

From September, China has also prohibited some types of agricultural-use plastic film used to keep crops warm and moist. Chinese farmers use around 1.5 million tons a year, but it leaves residues that damage the soil. A new "solid waste law" also came into effect in September, raising fines tenfold for those who break rules and mandating the construction of new recycling infrastructure.

Though there have been complaints China is moving too fast, Wang said the business impact of the measures would be limited, with firms aware in advance that some products would be banned. China produced 63 million tons of plastic in 2019, with a recycling rate of around 30%. It produces around 20 million tons of single-use non-biodegradable material annually, including 3 million tons of shopping bags.

Antoine Grange, chief executive for recycling at SUEZ Asia , said the bans were welcome but China would also need to improve its entire recycling capability. "The single-use plastic ban is good for education, good for awareness, but it is only part of the big picture," he said.

We remind that PetroChina has nearly doubled the amount of Russian crude being processed at its refinery in Dalian, the company's biggest, since January 2018, as a new supply agreement had come into effect. The Dalian Petrochemical Corp, located in the northeast port city of Dalian, was expected to process 13 million tonnes, or 260,000 bpd of Russian pipeline crude in 2018, up by about 85 to 90 percent from the previous year's level. Dalian has the capacity to process about 410,000 bpd of crude. The increase follows an agreement worked out between the Russian and Chinese governments under which Russia's top oil producer Rosneft was to supply 30 million tonnes of ESPO Blend crude to PetroChina in 2018, or about 600,000 bpd. That would have represented an increase of 50 percent over 2017 volumes.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

MOSCOW (MRC) -- Honeywell's performance materials and technologies unit reports third-quarter net profit of USD442 million, down 24.0% year on year (YOY), on sales down 15.6% YOY, to USD2.2 billion, said the company.

Honeywell (HON) - Get Report on Friday posted third-quarter adjusted earnings that beat analysts’ forecasts and sales ahead of predictions as double-digit growth in its defense and space, warehouse automation and PPE products and services offset a drop in aerospace revenue.

The company also reinstated guidance for its fourth quarter and full year amid expectations that the worst effects of the pandemic are past. Honeywell posted net income of USD781 million, or USD1.07 a share, vs. USD1.65 billion, or USD2.23 a share, in the comparable year-ago period. On an adjusted basis, the company earned USD1.56 a share, above the USD1.49 a share expected by analysts polled by FactSet.

Sales came in at USD7.8 billion, down 14% from USD9.1 billion a year ago though above analysts’ forecasts of USD7.7 billion. Aerospace sales, which includes parts for commercial airplanes, fell 25% on a year-over-year basis, driven by reduced flight hours and lower volumes among carriers due to the pandemic and drop-off in travel.

However, sales of "safety and productivity solutions" gained 8%, driven by double-digit sales of personal protective equipment as well as a return to growth in productivity solutions and services, Honeywell said. Orders for PPE were up approximately 150%, with backlog at a record high, Honeywell said.

As MRC informed earlier, Honeywell UOP has announced that French energy company Total will utilize Honeywell UOP’s Ecofining process technology to produce renewable fuels, primarily for the aviation industry, at its Grandpuits platform at Seine-et-Marne in north central France. Once completed, the bio-refinery will process 400,000 tons of feed per year, producing up to 170,000 tons of sustainable aviation fuel, 120,000 tons of renewable diesel and 50,000 tons of renewable naphtha for production of bioplastics.

We remind, Honeywell announced Zhenhua Petrochemical Co. Ltd will use Honeywell UOP’s C3 Oleflex technology for propane dehydrogenation to process 1 million metric tons per year of polymer-grade propylene for a proposed plant in Dongying City, Shandong Province, China.

As MRC reported earlier, in May, 2020, Honeywell announced that Enterprise Products Partners L.P. will use Honeywell UOP’s C3 Oleflex technology in its second propane dehydrogenation plant, called "PDH 2". Located near Mont Belvieu, Texas, PDH 2 will produce 750,000 metric tons per year of polymer-grade propylene as part of Enterprise’s expansion of propylene manufacturing capacity.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.


MRC

MOSCOW (MRC) -- LANXESS is continuing the systematic expansion of its production for synthetic iron oxide pigments. The company is the only supplier worldwide to produce these pigments using the Laux process, said the company.

Specialty chemicals company LANXESS has expanded its capacity for black synthetic iron oxide pigments at its Krefeld-Uerdingen site by more than 5,000 metric tons per year. “The increased demand from the construction industry, in particular for our unique black pigments to color concrete, can be even better met with the debottlenecking measures that have now been completed,” says Holger Huppeler, head of the Inorganic Pigments business unit at LANXESS. The company is thus continuing the systematic expansion of its production capacities for synthetic iron oxide pigments. LANXESS is the only supplier worldwide to produce these pigments using the Laux process.

In architecture and landscaping, the black coloration of concrete has been a trend for some time now. Concrete is a creative material, which provides a multitude of possibilities to building material producers, architects, and building contractors. With the use of suitable pigments, this applies not only to the architectural design of concrete, but especially to its coloration. “Thanks to their up to 15 percent higher tinting strength and reliable color consistency, our Bayferrox 330 and Bayferrox 340 black pigments are the preferred choice for coloring high-quality cement-based building materials – for example not only in manufacturing concrete paving stones and roof tiles, but also in architecture," explains Huppeler.

In addition, these special iron oxides from LANXESS offer further clear benefits. The pigments produced using the Laux process are the only synthetic iron oxides that are specially certified by an independent testing institute for safe use in ultra-high-strength concretes (UHPC). UHPC is used in construction projects where, for example, high load capacities and very lightweight, customized structures are required. And these high-quality pigments are also impressive when it comes to their sustainability credentials. They are certified for their high content of recycled raw materials by SCS Global Services, one of the leading companies for audits and independent certifications worldwide.

In Krefeld, LANXESS operates the world’s largest plant for manufacturing synthetic iron oxide pigments. The global importance of this site is confirmed every year by its extensive investment in capacity expansion and process optimization, as well as the continuous expansion of environmentally friendly production technologies.

Thanks to the unique Laux process, the production facility at the Krefeld-Uerdingen site already has an excellent carbon footprint. This is because this special chemical process uses the heat generated during the reaction to create steam, which is in turn used in the subsequent process steps.

"Our goal is to use targeted measures to continuously reduce the CO2 footprint of our pigments. In the future the energetic use of hydrogen, which is produced during the production process of our pigments and can be used as a substitute for fossil fuels, will also play an important role,” says Huppeler. Specialty chemicals group LANXESS has set itself an ambitious climate protection target. By 2040, the group aims to become climate-neutral and reduce its greenhouse gas emissions from the current level of around 3.2 million metric tons of CO2. By 2030, LANXESS aims to cut its emissions by 50 percent to around 1.6 million metric tons of CO2 compared with today.

Lanxess, meanwhile, says it will pay a special bonus for the “extraordinary commitment” of its employees during the COVID-19 pandemic. “In particular, our colleagues at the plants played a crucial role in keeping our business running during the crisis,” says Zachert. “With this bonus, we would like to thank them and all the others who have made special contributions over the past months.” The company will distribute a high-single-digit million euro sum. The amount of the payment varies from employee to employee. In Germany, the special bonus will be paid out in December, and different rules apply in other countries, Lanxess says.

As per MRC, LANXESS' net profits in the second quarter of 2020 were almost eight times higher than in the same period of the previous year, to EUR798 million (USD943 million). This is primarily due to the sale of its 40% stake in chemical park curator Currenta to Macquarie Infrastructure and Real Assets in April, which resulted in a disposal gain of EUR740 million. Sales declined 16.7% year on year, to EUR1.44 billion, due to weak demand across many industries and lower raw material prices, the company says. EBITDA and EBIT shrank by 23.8% and 57.3%, to EUR198 million and EUR61 million, respectively.

We remind that Russia's output of chemical products rose in September 2020 by 6.7% year on year. At the same time, production of basic chemicals increased by 6.1% year on year in the first nine months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-September output. Last month's production of primary polymers decreased to 852,000 tonnes from 888,000 tonnes in August due to shutdowns in Tomsk, Ufa and Kazan. Overall output of polymers in primary form totalled 7,480,000 tonnes over the stated period, up by 16.4% year on year.
MRC

MOSCOW (MRC) -- According to the US Energy Information Administration’s Weekly Petroleum Status Report, for the week ending November 13, 2020, US distillate inventories fell to 143 million barrels, back within its previous five-year (2015-19) range for the first time since May 8, reported Hydrocarbonprocessing.

US distillate inventories reached 180 million barrels in late July, only 3% less than in December 1982, the largest US inventory in EIA’s data, which go back to 1982.

Distillate inventories started the year near the bottom of the five-year range and briefly fell lower than the range in March and April. Distillate inventories then increased rapidly as the US economy responded to COVID-19, and from late May through mid-September, inventories remained higher than 174 million barrels. Since mid-September, inventories have been declining and are once again within the five-year range.

US demand for distillate has been generally increasing since it reached an annual low in May (based on the rolling four-week average). The increasing demand for distillate fuel has contributed to the recent inventory decline. As of the week ending November 20, weekly EIA data indicate that distillate demand reached 4.2 million barrels per day (b/d), similar to the previous five-year average for this time of year.

In addition to rising demand from the trucking and railroad industries, refineries have been making less distillate fuel. Gross inputs into refineries measured 14.2 million bpd as of November 20, or 14% lower than the previous five-year average for this time of year. Distillate yields, or the ratio of distillate fuel production to refinery inputs, have fallen since reaching a record high of 38% in April, and more recently, it measured 31% in the week ending November 20, which is much closer to the previous five-year average for this time of year.

As MRC informed before, slumping fuel consumption during the pandemic is accelerating the long-term shift of refining capacity from North America and Europe to Asia, and from older, smaller refineries to modern, higher-capacity mega-refineries. The result is a wave of closures, often centering on refineries that only narrowly survived the previous closure wave in the years after the recession in 2008/09.

We remind that PetroChina has nearly doubled the amount of Russian crude being processed at its refinery in Dalian, the company's biggest, since January 2018, as a new supply agreement had come into effect. The Dalian Petrochemical Corp, located in the northeast port city of Dalian, was expected to process 13 million tonnes, or 260,000 bpd of Russian pipeline crude in 2018, up by about 85 to 90 percent from the previous year's level. Dalian has the capacity to process about 410,000 bpd of crude. The increase follows an agreement worked out between the Russian and Chinese governments under which Russia's top oil producer Rosneft was to supply 30 million tonnes of ESPO Blend crude to PetroChina in 2018, or about 600,000 bpd. That would have represented an increase of 50 percent over 2017 volumes.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC