US Democrats urging the administration to reject exempting refiner from biofuel mandates

MOSCOW (MRC) -- Democratic U.S. congressional members sent a letter to the Environmental Protection Agency, urging the administration to reject any action that would exempt oil refiners from mandates to blend biofuels into the nation's fuel mix, said Hydrocarbonprocessing.

The letter comes after a report from Reuters last week that said President Joe Biden's administration, under pressure from labor unions and U.S. senators including from his home state of Delaware, is considering ways to provide relief to U.S. oil refiners from the mandates.

The letter was signed by lawmakers from both the U.S. Senate and the House of Representatives and states including Iowa and Illinois. It included Senator Amy Klobuchar from Minnesota and Representative Cheri Bustos from Illinois.

The letter was also addressed to the National Economic Council. "We support your efforts to address climate change, but we are concerned that rolling back the RFS obligation for refiners directly contradicts this work," the letter said. "Following through on the actions reportedly under discussion would directly undermine your commitment to address climate change and restore integrity to the RFS (Renewable Fuel Standard) and we urge you to reject them."

Under the RFS, refiners must blend biofuels into their fuel mix or buy credits, known as RINs, from those that do. Refiners can apply for exemptions to the obligations if they can prove the mandates harm them financially. In the letter, the lawmakers asked EPA instead to stabilize the RIN marketplace by issuing a proposed rule for renewable volume blending obligations for 2021 and 2022.

The lawmakers behind Wednesday's letter largely represent corn-producing states. The RFS policy has pitted some oil refiners and corn groups against each other, as oil refiners find the mandates expensive, while they help boost demand for corn-based ethanol.

As MRC wrote previously, POET, the largest biofuels producer in the United States, is in discussions with Flint Hills Resources to acquire the entirety of Flint Hills’ ethanol assets. Flint Hills, a refining, biofuels and petrochemical company, is based in Wichita, Kansas, and is currently the fifth-largest ethanol producer in the United States. Its biofuels division includes six ethanol plants with a combined capacity of about 800 million gallons per year, 1.5 million tons of distillers grains and about 200 million pounds of corn oil, Reint said.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- China's refinery throughput rose 4.4% in May from the same month a year ago to a record high, as margins improved on the back of easing supplies of blending stocks after Beijing announced new taxes, said Hydrocarbonprocessing.

The country processed 60.50 million tons of crude oil last month, data from the National Bureau of Statistics (NBS) showed on Wednesday, equivalent to 14.25 million barrels per day (bpd). That compares with 14.09 million bpd in April and a touch above a previous record at 14.2 million bpd last November. Throughput for the first five months was 292.74 million tons, up 12% from a year earlier.

New taxes on imports of light cycle oil and mixed aromatics are set to cut into supplies of diesel fuel and gasoline and ease supply overhangs, especially of diesel, lending support to refining margins. According to estimates by Shandong-based consultancy JLC, "theoretical" refining margins at independent plants averaged at around 650 yuan (USD101.78) a tonne at end-May, the highest so far this year.

Crude throughput was also supported by a resumption of production at state-run refineries following regular overhauls. The data also showed China's crude oil output in May was 17.03 million tons, or 4.01 million bpd, up 3.5% from a year earlier. Output over January-May gained 2.2% to 82.65 million tons.

Natural gas output last month increased 5.8% from a year earlier to 16.9 billion cubic metres (bcm), the data showed, with total production in the first five months up 10.3% year-on-year at 87.2 bcm.

As per MRC, oil prices are set to remain on a bullish course this year given the strong recovery in global demand following the COVID-19 pandemic-induced slump. Uude demand is expected to further recover in the second half of this year, given the convergence of the pandemic and the revival of economic activity in the United States and Europe.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- Solvay introduces a new biodegradable rheology agent, Rheozan BLC, a natural and ready-to-use liquid polymer solution that delivers high suspension power in home and personal care products, yet without any impact on the formulation viscosity, said the company.

Trends and consumer expectations are shifting toward more naturally derived products. Formulators must develop high-performing products with advanced aesthetics, fewer synthetic chemicals and more eco-friendly materials.

"Solvay’s new Rheozan BLC combines the best of science and nature. It is an innovative and flexible ingredient that leverages the full power of biotechnology with beneficial functions and excellent sustainability credentials," said Jean-Guy Le Helloco, global vice president, home and personal care at Solvay. "This COSMOS-validated ingredient enables new formulation possibilities and addresses the market demand for biodegradable solutions, making it a win-win solution for formulators and consumers."

Rheozan BLC is derived from grey biotechnology. Its synthesis is based on starch fermentation by carefully selected bacterial strains that generate very uniform cellulose fibers. When added to home and personal care formulas, these nature-engineered fibers build a regular three-dimensional mesh, creating a highly effective suspension mechanism. It can suspend and stabilize visual cues such as pigments, natural exfoliating particles, perfume capsules, air bubbles, opacifier or emulsion, and insoluble agents such as zinc pyrithione or minerals.

Solvay’s Rheozan BLC belongs to a new generation of biotechnology-based ingredients that can revolutionize the chemical industry, harnessing the power of nature to combine higher performance with more safety and sustainability toward a more circular economy.

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.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 23,000 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 EUR9 billion in 2020.
MRC

MOSCOW (MRC) - KBR and Mura Technology have announced the first joint contract award for its plastics recycling technology, Hydro-PRT, with Mitsubishi Chemical Corporation (MCC) in Japan, according to CISION.

Developed by Mura and licensed exclusively by KBR, Hydro-PRT employs a unique patented process utilizing supercritical steam to convert all types of plastics into commercial products that can be used to produce new plastics to deliver a truly circular economy.

"KBR is proud to be Mura's exclusive licensing partner for this breakthrough technology," said Doug Kelly, KBR President, Technology. "Over the past few months, we have seen tremendous interest in Hydro-PRT from many leading companies worldwide and we are excited by MCC's decision to be an early adopter to achieve their sustainability objectives."

As MRC reported earlier, in April 2021, Origin Materials, Inc., the world’s leading carbon negative materials company, and Mitsubishi Gas Chemical, Inc., a global leader in basic and fine chemicals and advanced materials, announced a partnership to industrialize and manufacture advanced chemicals and materials built on the Origin Materials technology platform.

We remind that Mitsubishi Chemical Corp (MCC) consolidated its headquarter functions for its global methyl methacrylate (MMA) business in Singapore, and renamed its major MMA subsidiaries to Mitsubishi Chemical Methacrylates, effective 1 April, 2021. The move is aimed at optimising the company's global product supply network by utilising digital technologies that connect regional production, costs and supply and demand.

The main application, consuming approximately 75% MMA, is in the production of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used to produce methyl methacrylate-butadiene-styrene copolymer (MBS), used as a modifier for polyvinyl chloride (PVC).

According to MRC's ScanPlast report, Russia's overall PVC production reached 346,100 tonnes in the first four months of 2021, down 1% year on year. All producers decreased production volumes over the reported period, with the exception of the Bashkir Soda Company.

Mitsubishi Chemical, as a core operating company of the Mitsubishi Chemical Holdings Group,seeks to provide solutions to environmental and social issues and to contribute to the sustainable development of people, society and the Earth through its businesses built on a foundation of chemistry. The company boasts a broad range of products, from basic chemicals such as methanol, xylene, and hydrogen peroxide to high-performance products such as engineering plastics, foamed plastics, etc.
MRC

MOSCOW (MRC) -- Kemira has completed the installation of new state-of-the art production units for emulsion polymers and bio acrylamide monomer at its manufacturing site in Mobile, Alabama. Production has started and the facility is expected to be fully operational during summer 2021, as per the company's press release.

The value of the investment is around EUR70 million and it will support Kemira’s strategic focus to grow faster than the market.

“The capacity expansion in Mobile will strengthen Kemira’s position in the energy market in the Americas and supports our growth in the region going forward. The market demand is recovering after the 2020 slowdown and we’re in a good position and excited to meet the growing demand of our customers for high quality emulsion polymers.” says Pedro Materan, SVP, Global Oil & Gas.

The emulsion polymer products are primarily used in water intensive applications, including friction reducers for the oil and gas industry, where Kemira is a leading supplier.

The investment in new capacity allows Kemira to address the steadily growing need for polyacrylamide polymers. Backward integration into bio acrylamide production also improves the sustainability position, product quality and competitiveness for Kemira’s customers.

As MRC reported earlier, in September 2020, Kemira signed a multi year extension of its polymer supply agreement with Ithaca Energy. Kemira said it had signed a multiyear extension to its polymer supply agreement with Ithaca Energy (Aberdeen, UK). The agreement extends the contract between the two companies, signed in 2018, covering the supply of polymers to enhance oil extraction performance at one of the assets operated by Ithaca Energy in the UK North Sea.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

Kemira is a global leader in sustainable chemical solutions for water intensive industries. The company's focus is on pulp & paper, water treatment and oil & gas. In 2020, Kemira had annual revenue of around EUR2.4 billion and around 5,000 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd.
MRC