Honeywell technology helps Hengli Petrochemical reduce nitrogen oxide and carbon emissions

MOSCOW (MRC) -- Honeywell has recently 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, according to Hydrocarbonprocessing.

Hengli selected Callidus advanced flares and low-NOx burner technology in 2017 to comply with environmental regulations and improve energy efficiency and operational safety at its refinery and petrochemicals complex in Dalian, Liaoning Province. Equipped with innovative low fire mode (LFM) technology, Callidus burners reduced Hengli’s emissions, improving air quality and helping to eliminate causes of acid rain.

When furnace temperatures are below 650 C, the NOx burner produces higher levels of CO. But by using the LFM technology, the Callidus burners kept emissions at ideal levels - with NOx and CO each less than 50mg/Nm3. This helped Hengli solve an industry problem of minimizing both NOx and CO emissions to reduce environmental impact, while ensuring safe and stable operations.

“We selected the Callidus technology because it’s the global leader in combustion technologies and because it was the first in China to solve the CO emission issue in a NOx burner,” said Liang Peng, Static Equipment Director, Hengli Petrochemical. “Callidus burners also can be replaced without requiring a shutdown of the furnace and other operations.”

“Our experience with these technologies around the globe helps customers like Hengli generate economic value by improving their return on investment with environmentally sound products,” said Xiang Lei, vice president and general manager, Honeywell UOP China. “We’re pleased to work with Hengli to improve its energy efficiency and operational safety.”

As MRC reported earlier, in November, 2020, 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.

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

According to MRC's ScanPlast report, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Composites One to acquire Solvay Process Materials business

MOSCOW (MRC) -- Composite material supplier Composites One has purchased the Process Materials business from the Solvay Composites Materials Global Business, said Canplastics.

In a news release, Composites One officials said that the acquisition gives it the opportunity to add international manufacturing and sales capabilities in specialized materials used in a variety of vacuum-assisted composite manufacturing processes. The acquired business, rebranded as Aerovac, is a manufacturer, developer, and supplier of process materials, tooling, and services used in prepreg processing, vacuum infusion, glass lamination, and other industrial applications.

"Aerovac is a natural, strategic extension of Composites One’s business,” said Steve Dehmlow, CEO of Composites One. “It positions us for future growth, and further establishes Composites One as a major supplier to the aerospace, wind energy and marine markets."

The acquisition gives Composites One, which is headquartered in Arlington Heights, Ill., multiple manufacturing, kit design/fabrication and materials distribution locations including Santa Fe Springs, California; Sumner, Washington; Keighley, U.K.; Mondovi, Italy; and Toulouse, France. An additional site in Toulouse focuses on the design and manufacture of hard and soft tooling. Another inclusion is a U.K.-based distribution business, Med-Lab, which trades in aircraft engine overhaul consumables and fuel testing instruments.

As MRC informed 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 ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.

Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 24,100 employees in 64 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet plan crafted around three pillars: protecting the climate, preserving resources and fostering better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities and delivered net sales of EUR10.2 billion in 2019. Solvay is listed on Euronext Brussels (SOLB) and Paris and in the United States, where its shares (SOLVY) are traded through a Level I ADR program.

Operating profit of German chemical giant BASF down 23% in 2020

MOSCOW (MRC) -- BASF's net income surged to EUR1.01bn in the fourth quarter amid stronger prices and higher volumes, the German chemicals major said in its press release.

Sales in the fourth quarter of 2020 increased by 8 percent to EUR15.9 billion. Volumes were up by 7%. Prices also increased by 7%, driven mainly by the Surface Technologies, Agricultural Solutions and Materials segments. Portfolio effects contributed 1 percent and resulted from the acquisition of the polyamide business from Solvay. Currency effects had a negative impact of 7 percent on sales.

EBITDA before special items rose by 15 percent in the fourth quarter to EUR2.1 billion. EBITDA amounted to EUR2.0 billion, compared with EUR1.6 billion in the fourth quarter of 2019. EBIT before special items rose in the fourth quarter by 32 percent to EUR1.1 billion. This increase was primarily due to significantly higher earnings in the Materials, Chemicals and Industrial Solutions segments. This more than offset lower contributions from the other segments as well as from Other. Special items in EBIT amounted to minus EUR181 million, as compared with minus EUR263 million in the fourth quarter of 2019. EBIT in the fourth quarter of 2020 rose by 61 percent to EUR932 million.

Sales of EUR59.1 billion in the full year 2020 were almost stable. Negative currency and volume effects were nearly offset by higher prices and positive portfolio effects.

EBITDA before special items was EUR7.4 billion, down by 11 percent versus the prior-year level. EBITDA came in at EUR6.5 billion, compared with EUR8.2 billion in 2019. EBIT before special items was EUR3.6 billion in the full year 2020, down by 23 percent compared with the previous year. Owing to the effects of the pandemic, all segments posted lower earnings – with one exception: The Industrial Solutions segment achieved EBIT before special items on a level with the year 2019. The earnings decline at the BASF Group level was attributable in particular to significantly lower contributions from the upstream businesses in the Chemicals and Materials segments. The sharp drop in demand from the automotive industry especially weighed on earnings development in the Surface Technologies segment.

We remind that German chemicals maker BASF said in early November it had put a project to build a petrochemicals complex in India worth up to USD4 billion on hold due to the economic uncertainty caused by the COVID-19 pandemic. BASF signed a memorandum of understanding with Abu Dhabi National Oil Company (ADNOC), Adani Group and Borealis AG in October 2019 to evaluate a collaboration to build the chemical site in Mundra, in India’s Gujarat state.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.


Shell appoints former BHP CEO Andrew Mackenzie as new chair

MOSCOW (MRC) -- Shell has appointed Andrew Mackenzie, former CEO of mining giant BHP and a former senior leader at BP to take over as chairman starting May, as the Anglo-Dutch major pursues a new transition strategy, reported S&P Global with reference to the company's statement on March 11.

Mackenzie takes over from Chad Holliday and will be the first British chair of Shell since a scandal over mis-statement of reserves rocked the company in the early 2000s.

Holder of a doctorate in organic chemistry, Mackenzie worked in senior roles for BP for 22 years. He went on to become head of industrial minerals and diamonds at Anglo-Australian minor Rio Tinto from 2004-2007, before becoming CEO of rival BHP, from 2013-2019.

He joined Shell's board in October 2020.

"In addition to proven experience of leading a large, complex international organization, the requirement was for someone with significant experience in capital discipline and with the ability to balance, and judge the timing, of the transformational changes that Shell needs to make," Shell said in a statement.

Holliday, who is stepping down after six years, said Mackenzie "brings a wealth of leadership and sustainability experience, scientific curiosity and commercial acumen that ideally equip him to help Shell navigate the energy transition and deliver on the far-reaching Powering Progress strategy."

The appointment comes after Shell unveiled a new strategy last month in the wake of last year's price collapse, the coronavirus crisis, and rising pressures to transition away from fossil fuels.

Shell expects its oil production to decrease by 1%-2% annually as it holds upstream investment close to 2020 levels and prioritizes transition areas such as LNG, renewables and electricity provision.

Mackenzie said: "I believe Shell has an exceptional portfolio of future-facing assets and I look forward to working with (CEO) Ben van Beurden and the board to profitably accelerate Shell's transition into a net-zero emissions energy business that continues to generate substantial value for shareholders, customers and communities alike."

The change of roles is scheduled for the company's AGM on May 18.

As MRC informed before, Royal Dutch Shell Plc pushed back the restart of its 318,000 bpd joint-venture Deer Park, Texas, refinery to March 13. Shell had planned to restart the 270,000-bpd DU-2 crude distillation unit (CDU), the largest at the refinery, by early this week. Shell is continuing repairs at the refinery to enable it to restart from the Feb. 15 shutdown because of cold weather. Repairs could last until April.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.

Amcor has broken new ground in the Argentine dairy market

MOSCOW (MRC) -- Packaging supplier Amcor has broken new ground in the Argentine dairy market by developing the first fresh milk bottle made of transparent post-consumer recycled (PCR) PET resin, said Canplastics.

The custom-designed one-litre container for leading dairy maker Mastellone Hnos SA, headquartered in Buenos Aires, supports the positioning of the La Serenisima Original milk brand as a natural product while also delivering optimum shelf life and increased sustainability benefits.

Latin American dairy companies are increasingly using clear PET bottles to showcase freshness and premium quality. The cold-fill bottle contains 20 per cent PCR content. "In a market that has remained stagnant for several years, we’ve broken the rules by developing an entirely new format offering for fresh milk,” Martin Darmandrail, Amcor’s specialty containers director for Argentina, said. “We’ve shaken things up with a unique fresh milk package with the durability, freshness, performance, and sustainability benefits of PET."

The container includes a 38-mm finish and a HDPE screw cap from Bericap North America. A key technical challenge was limiting light exposure and preventing damage to the product. To preserve the contents, a special barrier was developed to help extend shelf life. The project builds on Amcor’s existing partnership with Mastellone Hnos – in October 2019, Amcor Rigid Packaging’s LATAM team worked with the brand to launch a shelf-stable, ultra-high temperature (UHT) white milk in aseptic, white-coloured PET bottles.

In the midst of today’s hygiene concerns, Amcor officials said, capped and sealed PET bottles keep beverages protected from pathogens, Amcor officials said. They’re also sealed to combat contamination and are re-sealable.

In Argentina, the new fresh milk product will be available in select metropolitan areas with broader distribution later.

As per MRC, Amcor retained the highest sustainability rating in the packaging sector and the second highest score possible from MSCI ESG. In 2020, Amcor a leading packaging company received a rating of AA in the MSCI ESG Ratings assessment. This rating is the highest in the packaging industry and is the second highest rating available. 2020 is the 4th year in a row that Amcor has achieved an AA rating - MSCI describes AA rated companies as ‘a company leading its industry in managing the most significant ESG risks and opportunities’.

According to ICIS-MRC Price Report, March formular prices of Russian PET were in the range of Rb90,000-105,000/tonne CPT Moscow, including VAT.

Amcor works with leading companies around the world to protect their products differentiate brands, besides improving value chains through a range of flexible and rigid packaging including specialty cartons, closures, and services. The company is focused on making packaging that is increasingly light-weighted, recyclable and reusable, and is made by using a rising amount of recycled content. Presently, Amcor has operations at 250 locations in 40-plus countries.