Novamont acquires BioBag Group

MOSCOW (MRC) -- Novamont, a world leader in the development and production of biochemicals and compostable bioplastics, announced today it has acquired BioBag Group, a Norway based leading supplier of low-impact solutions for waste collection and packaging, said the company.

The acquisition will allow Novamont to benefit from BioBag's highly specialised independent distribution in areas where the buyer is less present. The two companies will be able to offer a more complete solution set to the market and to create long-lasting alliances with key stakeholders such as large retailers and communities. Together they plan to build even more demonstrators (innovative projects that enhance separate organic waste collection and composting systems) especially in North America, the Scandinavian countries, Eastern Europe and Australia.

The transaction is an important step forward in a collaborative journey that began twenty-five years ago. Novamont's original vision in the 1990's was to build an integrated value chain for bioplastics and biochemicals linked to initiating and improving the separate collection of organic waste. This became a monumental starting point for what is now called the circular bioeconomy to which both Novamont and BioBag have made important contributions.

Novamont has expanded considerably in the past decade, in particular through internal growth, by acquiring and regenerating obsolete industrial sites. This transaction will allow Novamont to further expand its compostable bioplastics business into Northern/Eastern Europe, North America and Australia. BioBag will continue to operate as an independent organization, with the same leadership team who has achieved excellent results over the past few years.

Novamont's CEO Catia Bastioli said: "This agreement allows Novamont to expand its model of circular bioeconomy. By joining our best skills and energies and fully integrating our supply chains we can better serve our partners upstream and downstream while further accelerating circular solutions for different market sectors and for communities pursuing our goal of producing more with less."

BioBag's CEO Kjell Ivar Bache is very pleased with the new owners and sees the acquisition as a win-win: "We have been close partners with Novamont for decades and for BioBag this is like coming home. With Novamont, BioBag becomes part of a world-leading bioplastics and biochemicals company. This will enable further international growth together. We are truly excited!" said Mr. Bache.

The advisors involved on the buyer's side were Hi.Lex and Hjort for legal and PWC for financial, tax and labour, whereas the seller's counsels were Bryan Garnier for M&A and Wiersholm for legal.

As MRC informed earlier, Mater-Bi, a company wholly controlled by the Novamont group, is a manufacturer of ORIGO–BI, biopolyesters with a high level of renewables, components of MATER-BI compostable bioplastics. The plant has been built to manufacture PET by reconversion of the former Mossi & Ghisolfi plant. The renovation included regeneration, modification and in some cases wholly renewal of its various sections to implement innovative technologies developed by Novamont in the form of a continuous process.

As per MRC's ScanPlast, Russia's estimated PET consumption reached 61,110 tonnes in November 2020, up by 1% year on year. Overall PET consumption in Russia reached 648,110 tonnes in the first eleven months of 2020, down by 18% year of year.
MRC

MOSCOW (MRC) -- Neste and Avfuel Corporation announced a strategic partnership to create an efficient, continuous supply of sustainable aviation fuel (SAF) in the U.S., said Hydrocarbonprocessing.

Neste will provide Avfuel with SAF in volumes able to meet the growing demands of Avfuel’s customers, including fixed base operators (FBOs), airports, flight departments, original equipment manufacturers (OEMs) and commercial operators. Avfuel will be a branded SAF distributor for Neste, and will sell it under the brand name Neste MY Sustainable Aviation FuelTM.

The strategic partnership positions Avfuel as one of the first United States companies able to supply its customers with SAF on a continuous basis. Monterey Jet Center (KMRY) – an Avfuel-branded FBO in Monterey, California – will be the first customer to receive a consistent supply of SAF. With the first delivery scheduled for the first quarter of 2021, Neste and Avfuel will work with Monterey Jet Center to ensure that the supply chain, from production through invoicing, functions smoothly before rolling the program out to a larger customer base.

"This strategic partnership is an exciting development for the industry’s sustainability initiative and a natural next step in response to aviation’s growing demand for SAF. It combines Neste’s leading SAF production and marketing expertise with Avfuel’s leading distribution logistics and branding proficiencies for our global network of FBOs and fuel consumers. Together, we are able to support aviation’s sustainability goals and enhance supply availability at a commercial scale, filling an immense gap in the industry’s supply chain. Avfuel is proud to partner with the Neste team, who demonstrate a deep commitment to aviation and sustainability efforts for a brighter, cleaner world,” said Craig Sincock, President and CEO of Avfuel.

"This collaboration is about so much more than just creating a supply chain. We are really providing passengers a meaningful way to reduce their carbon footprint when traveling on a business or private aircraft,” said Chris Cooper, Vice President, Renewable Aviation, North America, Neste. “Thanks to great partners like Avfuel, travelers who care about the health of our planet will be able to choose to board an aircraft flying on SAF."

Neste has been at the vanguard of sustainable aviation fuel production for nearly a decade and the company expects to have the capacity to produce some 1.5 million tons (515 million gallons) of SAF annually by 2023. Neste’s SAF is made from sustainably sourced, renewable waste and residue materials. It is a drop-in fuel that offers an immediate way to directly reduce greenhouse gas emissions from aircraft, requiring no new investments, modifications or changes to the aircraft or fuel distribution procedures.

As MRC informed earlier, Neste has a target to process annually over 1 MM tons of waste plastic from 2030 onwards. The company plans to use liquefied plastic waste as a raw material at its fossil oil refinery to upgrade it into high-quality drop-in feedstock for the production of new plastics.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- Dow announced yesterday that it is immediately suspending all corporate and employee political action committee (PAC) contributions to any member of Congress who voted to object to the certification of the presidential election, according to Chemweek.

“Dow is committed to the principles of democracy and the peaceful transfer of power. Our values - integrity, respect for people, and protecting our planet - are the foundation on which we stand and our values guide our political contributions,” the company said in a statement to CW. The suspension will remain in place for a period of one election cycle - two years for House members and up to six years for Senators - which specifically includes contributions to the candidate’s reelection committee and their affiliated PACs, the company adds.

Dow joins the growing list of corporations halting donations in the wake of the violent Capital siege on 6 January in which Trump supporters sought to disrupt the Electoral College vote count certifying President-elect Biden’s victory. Nearly 150 Republicans voted against certifying the results after the session reconvened. American Express, amazon, Ford, Goldman Sachs and Marriott have also announced similar measures. According to CNN, 3M is halting all political contributions through the first quarter, at which time it will reassess its policies. ExxonMobil is also reportedly reviewing its contributions in light of the unrest.

As MRC reported earlier, in September, 2020, Dow and Luhai, an integrated waste management company located in Xiamen, China, announced their collaboration to give plastics waste collected by Luhai a second life, thereby increasing the circularity of plastics in China. The agreement is in line with Dow’s new sustainability targets to Stop the Waste by enabling one million metric tons of plastic to be collected, reused or recycled through its direct actions and partnerships by 2030.

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

MOSCOW (MRC) -- Industria Quimica del Istmo (Iquisa; Mexico City, Mexico) has hired Bluestar Chemical Machinery Co. (BCMC) to build a membrane-cell chlor-alkali plant in Coatzacoalcos, Mexico, with capacity to produce 150,000 metric tons/year of chlorine, reported Chemweek.

BCMC, which announced the news Monday, says it will supply its proprietary electrolysis technology for the project, which is to begin construction this month and to be completed within two years.

The new plant will replace a mercury-cell plant that has 125,000 metric tons/year of chlorine capacity and 138,000 metric tons/year of caustic soda capacity, according to data from IHS Markit.

Xiaofeng Qiao, president of BCMC, says the company is aiming for a worldwide presence. “The project with Iquisa will be the first one for BCMC in the Americas,” he says. “It will give us the opportunity to demonstrate our capabilities in this continent. BCMC looks forward to having a strong participation in the conversion of Latin American mercury plants to the new membrane process. We can offer outstanding technology, competitive prices, fast track construction and turn-key projects to the American customers. We will also take advantage of this initial location in the Americas to develop a base for local maintenance services.” BCMC is a subsidiary of ChemChina.

There are seven other mercury-cell chlor-alkali plants totaling 384,000 metric tons/year of chlorine capacity still operating in South America, according to data from IHS Markit.

Iquisa, a unit of Cydsa, produces chlor-alkali at Monterrey, Mexico, and Ecatapec, Mexico, by membrane-cell technology. Quimobasicos, a joint venture between Cydsa and Honeywell, produces refrigerant gases and other fluorocarbons in Monterrey.

As MRC informed earlier, AkzoNobel Specialty Chemicals will upgrade its Rotterdam chlor-alkali plant to strengthen development of the local industrial cluster. The company will invest in a second, independent production line for chlorine and caustic soda and will also implement a series of other upgrades, starting with the implementation of new ‘e-flex’ technology, which automatically adjusts production in line with electricity supplies, as per the company's press release in 2018. The new production line, which is due for completion in 2021, will ensure a continuous supply of chlorine, including when one line is undergoing maintenance. It also enables the company to expand production capacity in the future to accommodate further demand growth. The Rotterdam plant is at the heart of an important industrial cluster for several essential chlorine derivatives including polyvinyl chlorie (PVC), epoxy resins and polyurethane.

We remind that November production of sodium hydroxide (caustic soda) in Russia were 111,000 tonnes (100% of the basic substance) versus 108,000 tonnes a month earlier. Russia's overall output of caustic soda totalled 1,165,600 tonnes in the first eleven months of 2020, down by 1.3% year on year.
MRC

MOSCOW (MRC) -- The Trump administration is expected to grant waivers to some oil refiners that would exempt them from requirements to blend biofuels into their fuel mix for the 2019 compliance year, according to two sources familiar with the matter, said Hydrocarbonprocessing.

The move would be one of the last actions by President Donald Trump’s Environmental Protection Agency to seek to balance the competing desires of the biofuel and oil industries over biofuel blending laws. The decision, however, would be a blow to the biofuel industry and corn producers that say the exemptions hurt demand for their products, though the oil industry rejects that claim.

EPA did not respond to requests for comment, though a high-ranking EPA official acknowledged the agency is weighing the decision. The announcement could come as early as this week, one of the sources said, and would apply to some exemptions for the 2019 compliance year. There are currently 32 pending petitions for the 2019 compliance year, according to EPA’s website.

Under the U.S. Renewable Fuel Standard, refiners must blend billions of gallons of biofuels like corn-based ethanol into their fuel mix, or buy credits from those that do. Refiners can apply for exemptions if they can prove the obligations would cause them financial harm.

The Trump administration has dramatically ramped up the number of such exemptions granted to the industry - angering biofuel producers. Last year a decision from the 10th Circuit Court of Appeals cast doubt over the waiver program after it ruled that EPA can grant the so-called Small Refinery Exemptions only to facilities that have received them continuously each year since 2010. Most of the refineries securing waivers in recent years have not secured them continuously.

However, the U.S. Supreme Court on Friday agreed to review the ruling after appeals by refining companies that argued the 10th Circuit Court’s decision had improperly deprived them of a method to avoid financial hardship granted by Congress.

"There is absolutely no legal or policy justification whatsoever for granting these exemptions; we are confident that if EPA actually goes through with this, the incoming Biden administration will act swiftly to reallocate the volumes erased by these waivers," said Renewable Fuels Association President Geoff Cooper.

Renewable fuel (D6) credits for 2020 traded on Monday at 75 cents each, down from 90 cents in the previous session, traders said. Biomass-based (D4) credits traded at USD1.05 each, down from USD1.12 each previously, traders said.

Refiners must hand in credits to EPA each year to prove they complied with their annual obligations for the previous year. But the agency has yet to enforce compliance for some refineries for the 2019 compliance year due to the impacts of the coronavirus, and it is unclear whether compliance for 2020 will also be delayed. “This Administration’s plans to approve yet another round of Small Refinery Exemptions is a fitting end to four straight years of broken promises to rural America,” said Congresswoman Cheri Bustos, a Democrat who represents Illinois.

As MRC wrote previously, in January 2020, Zhejiang Petroleum & Chemical Co Ltd, one of two new major refineries built in China in 2019, started up the remaining units in the first phase of its refinery and petrochemical complex. The complex is situated in east China’s Zhoushan city. The company, 51% owned by private chemical group Zhejiang Rongsheng Holdings, said it ha started test production at ethylene, aromatics and other downstream facilities, without giving further details.

Zhejiang Petrochemical started a first 200,000 barrels per day (bpd) crude processing unit in late May, 2019, following on from the start of a 400,000-bpd refinery owned by another private chemical major Hengli Petrochemical. The newly started units at Zhejiang Petrochemical should include a second 200,000-bpd crude unit, a 1.2 million tonnes per year (tpy) ethylene unit and a 2 million tpy paraxylene unit, according to several industry sources with knowledge of the plant’s operations.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC