SK to invest in Canadian Loop Industries

SK to invest in Canadian Loop Industries

MOSCOW (MRC) -- South Korea’s SK Global Chemical (SKGC) plans to take a 10% stake, for about Canadian dollar (CD) 56m (USD45m), in Canada’s Loop Industries, and the companies plan to form a joint venture, Loop said.

South Korea’s SK Global Chemical is buying a 10-per-cent stake in Quebec-based Loop Industries Inc. for USD56.5-million, and the two plan to form a joint venture to deploy Loop’s proprietary plastic recycling technology in Asia.

Under the deal, SKGC will buy 4.7 million Loop shares for USD12 each. SKGC is also being granted options to boost its stake over the next three years, contingent on the progress of construction of a first Asian manufacturing plant.

The two are announcing the deal eight months after Loop’s shares tumbled following a negative report by prominent U.S. short-seller Hindenburg Research. Hindenburg said in mid-October it had interviewed former employees, competitors, corporate partners and chemists, and concluded that “Loop is smoke and mirrors with no viable technology."

Loop responded by saying the report was “either unfounded, incorrect or based on the first iteration” of its technology, which is a chemical process, rather than a mechanical one, for recycling plastic into what the company says is high-quality usable material.

Loop’s shares on the Nasdaq lost half their value in the 17 days after the release of Hindenburg’s report, falling as low as USD5.85. They have since recovered, closing on Tuesday at USD13.12.

The deal with SKGC, part of one of South Korea’s largest conglomerates, shows the promise of the technology, said Loop founder and chief executive officer Daniel Solomita.

Under a memorandum of understanding, the companies intend to form a joint venture to build sustainable polyethylene terephthalate (PET) and polyester fibre manufacturing facilities throughout Asia. SKGC would own 51 per cent of the venture and Loop the remainder. Loop would also receive an annual royalty based on a percentage of revenue.

PET, used in things such as drink bottles, is a major source of pollution, and Loop says its process recycles it into virgin-quality plastic. “Our technology is really at the forefront of what the circular economy is,” Mr. Solomita said. “You take a finished product and break it down into what it used to be, and build it back up again into a finished product or something of a higher quality."

As per MRC, Clariant, a specialty chemicals major, is selling its pigments business to a consortium consisting of pigment maker Heubach Group (Langelsheim, Germany) and private investment firm SK Capital (South Korea). The combined business will operate under the Heubach name and create a leading global pigments business with annual sales of more than EUR 900 million (USD1.09 billion).

According to MRC's ScanPlast, the total estimated PET consumption in Russia increased in January-April 2021 by 13% compared to the same period a year earlier and amounted to 263,660 tonnes. 78.3% of the increase in consumption falls on the share of bottled PET granulate due to the virtual absence of exports and an increase in the volume of imports. In April, the total estimated consumption amounted to 80,150 tonnes, which is 34% more than in the same month last year.
MRC

CPC begins cleaning up oil sspill near Talin refinery

CPC begins cleaning up oil sspill near Talin refinery

MOSCOW (MRC) -- Taiwan's state-owned refiner CPC Corp has started cleaning up an offshore oil spill caused by a pipeline that cracked during the discharging of oil from a vessel at its Talin refinery, reported Reuters with reference to the company's spokesman.

The oil leak occurred on Tuesday at 2:18 a.m. (1818 GMT) and was likely caused by bad weather, the company said in a statement. CPC immediately halted oil discharge following the incident, it added.

The incident will not affect the refinery's operations and fuel supply as inventories were high while domestic consumption fell 20% to 30% over the recent months from usual levels, CPC spokesman Chang Ray-chung told Reuters by phone.

"Due to the coronavirus, people stay indoors," Chang said, adding that sales at CPC's fuel stations are lower compared with the same period last year.

"We will stick to our existing production plans and there will be no issue with the supply," he said.

The Talin refinery can process 400,000 barrels per day of crude oil.

While waiting for weather to improve before carrying out repairs at the crude pipeline, CPC will rely on other discharge points for crude which are still functioning, Chang said.

The oil spill clean-up is expected to finish by Wednesday night, he said.

As MRC wrote before, in January, 2021, CPC Corp bought a piece of land in Kaohsiung on which it plans to build a new naphtha cracker to replace its No. 4 cracker at a cost of NTD82.3 billion (USD2.94 billion). CPC's No. 4 cracker in Kaohsiung's Linyuan District has been in operation for 37 years and has an annual ethylene production capacity of 380,000 metric tons, which cannot meet the demand of its customers, CPC spokesman Chang Ray-chung 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.

CPC Corporation, Taiwan, is engaged in the exploration, production, refining, procurement, transportation, storage, and marketing of oil and gas. The company provides fuel oil, including automotive unleaded gasoline and diesel fuel, low-sulfur fuel oil, marine distillate fuels, marine residual fuels, and aviation fuel; petrochemicals, such as ethylene, propylene, butadiene, benzene, para-xylene, and ortho-xylene; liquefied petroleum gas products comprising liquefied petroleum gas, propane, butane, and a propane/butane mixture; lubricants, motor oil, industrial oil, grease, and marilube oil; SNC products, including petroleum ether, naphtha, toluene, xylene, crude octene, methyl alcohol, normal paraffin, viscosity-graded asphalt cement, and sulfur; and natural gas.
MRC

Siemens Energy to supply electrification for biorefinery in Germany

Siemens Energy  to supply electrification for biorefinery in Germany

MOSCOW (MRC) -- The Finnish company UPM-Kymmene selected Siemens Energy to supply electrification, automation, and digitalization (EAD) packages for a next-generation biorefinery currently under construction in Leuna, Germany, said Hydrocarbonprocessing.

The biorefinery will be the first industrial-scale facility of its type ever built. It will apply novel process innovations to sustainably convert 100% wood into bio-based mono-ethylene glycol (MEG), mono-propylene glycol (MPG) as well as renewable functional fillers (RFF). Both MEG, MPG as well as functional fillers have traditionally been produced using fossil-based raw materials. UPM will provide alternatives to considerably reduce the CO2 footprint of end-products such as PET bottles, packaging materials, textiles, or rubber products used in various automotive applications. Siemens Energy’s scope of supply for the project includes:

Electrification: mill-wide medium- and low-voltage power distribution system and drive system (motor control center, variable speed drives, motors). Automation: Distributed control system (DCS) for multiple process areas and remote I/O cubicles (total of 9,000 process objects), including safety and ATEX functions for explosive atmospheres
Digitalization: Complete digital twin for the entire plant, covering the mill’s whole life cycle – from integrated engineering to integrated operation.

The Leuna Biorefinery will be a big step for UPM to expand its business into wood-based biomolecular products and solutions. "We are confident that the bio-based mono-ethylene glycol, mono-propylene glycol, and renewable functional fillers made in Leuna will meet the strong demand of customers and end-users looking to change towards a truly sustainable portfolio,” said Juuso Konttinen, Vice President UPM Biochemicals. “By implementing Siemens Energy’s digitalization solutions and digital twin, we can help ensure safe and efficient operations."

The biorefinery is scheduled for start-up in late 2022. When fully operational, it will have a total annual capacity of 220,000 tons. “As a global leader in industrial decarbonization, we are proud to be selected as a trusted partner and facilitator for this groundbreaking project,” said Jennifer Hooper, Senior Vice President, Industrial Applications Solutions for Siemens Energy. “We look forward to helping UPM reduce the world’s reliance on chemicals produced from fossil fuels as we move toward creating a more sustainable world."

As per MRC, As part of a strategic partnership, BASF and Siemens Energy plan to accelerate commercial implementation of new technologies designed to lower greenhouse gas emissions. By combining BASF’s technological expertise with Siemens Energy’s innovative product and services portfolio, BASF aims to extend its leading role in lowering CO2 emissions in chemical production. Several pilot projects at its Ludwigshafen site are under discussion. BASF’s headquarters is one of the largest chemical production sites in the world.

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

Repsol, Axens, and IFPEN introduce new process to enhance chemical recycling of plastic waste

Repsol, Axens, and IFPEN introduce new process to enhance chemical recycling of plastic waste

MOSCOW (MRC) -- Repsol, Axens, a worldwide technology provider and IFPEN, the renowned French research and innovation player in the field of energy, have developed a pioneering and patented process to enhance the chemical recycling of plastic waste and boost circular materials production, according to Hydrocarbonprocessing.

The RewindTM Mix process removes impurities such as silicon, chlorine, diolefins, and metals from the plastics pyrolysis oils produced, allowing the direct and undiluted feed to petrochemical units.

Pyrolysis is one of the most promising pathways for the chemical recycling of plastic waste, which otherwise would end up incinerated or in landfills, and the production of food-grade, low-carbon footprint, recycled plastics.

This new pyrolysis oil upgrading process will expand its deployment and allow the massive introduction of recycled pyrolysis oil in existing steam cracking assets.

Chemical recycling now represents a very innovative solution complementary to mechanical recycling. Polyolefins from petrochemistry represent about half of the 400 Mt/y world plastic production and a major target in terms of plastic recycling. Today, mechanical recycling faces limitations due to feedstock quality (mix of polymers and impurities content) that directly impact product quality and potential applications, in particular for food-grade use.

The RewindTM Mix process has been developed at the Repsol Technology Lab and IFPEN facilities, with extensive pilot plant testing of representative pyrolysis oils, reproducing the exact conditions of the future industrial plant. It can advantageously be integrated within the existing petrochemical units.

The process relies upon Axens’ proven industrial technologies and catalysts and on the long experience of the 3 partners in the field of the petrochemical industry. Based on this solid basis and the extensive pilot testing, the partners will now study the first industrial application in a Repsol facility, while Axens will commercialize the technology through licensing.

Repsol has a long track record of applying circularity in its products. In 2015, Repsol was the first company to reintroduce oil from chemical recycling of plastic waste not suited for conventional mechanical recycling on an industrial scale at its Puertollano industrial complex. In 2019, Repsol started to sell circular polyolefins under the ISCC PLUS certification. The company is committed to a circular economy as one of the main pillars of the transformation of its industrial complexes into large multi-energy hubs, capable of using different kinds of waste and converting them into low carbon products. This project supports the recent announcement in the 2021-2025 Strategic Plan of the company's ambition to use four million metric tons of waste per year besides recycling the equivalent of 20% of its polyolefins production by 2030.

As MRC informed previously, earlier this month, Axens and Sulzer Chemtech (GTC Technology) formed an alliance to license an advanced process for fluid catalytic cracking (FCC) naphtha processing.

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

Manufacturing industry in Canada continues to lose millions because of border issues due Covid-19

Manufacturing industry in Canada continues to lose millions because of border issues  due Covid-19

MOSCOW (MRC) -- The survey was conducted by the Canadian Tooling & Machining Association (CTMA), in partnership with the Canadian Association of Moldmakers, (CAMM), Automate Canada, and the Niagara Industrial Association (NIA), said Canplastics.

It was the second conducted by the groups to measure the effects of border closures due to the COVID-19 pandemic within the manufacturing industry. This updated study, which received 91 responses, was to compare the results to the previous survey about common border crossing issues that have been experienced by those in the industry, who have identified that many of their businesses rely on travel between the U.S. and Canada. The first survey was taken in December 2020.

The severity of the issue continues, the new survey finds. “In December 2020, an average of 70 per cent of employers reported quarantine orders for employees and visitors and denial of entry by visitors into Canada,” the groups said. “In May 2021, this increased dramatically to 87 per cent. Sixty-nine per cent have experienced loss of contracts due to border issues."

“It’s clear from the increased participation in the survey that the issues at the border have left manufacturers with high risk for current contracts and potentially irreversible damage to customer relationships,” said Jeanine Lassaline-Berglund, president, CAMM.

The financial impact varies among respondents. Although some participants were reluctant to share financial information due to issues with confidentiality, the majority noted there were undeniable losses from 2021 because of the interruption of COVID-19-related protocols. Of those who commented, 64.9 per cent stated a combined actual financial impact of USD100,000 to USD10,000,000 for 2020; and 65.4 per cent revealed an estimated financial impact of USD100,000 to more than USD5,000,000 for 2021.

Although most of the border crossing happens at the Ambassador Bridge and Windsor Tunnel (more than 80 per cent), other crossings in the survey results include Sarnia Bluewater Bridge, Fort Erie Peace Bridge, Lester B Pearson International Airport, Niagara Rainbow Bridge and Cornwall Seaway International Bridge.

"The current restrictions governing travel across the Canadian/U.S. border do not fully acknowledge or consider the growing concerns among manufacturers,” said Sophia De Luca, Operations Manager, NIA. “These survey results provide further evidence to suggest that such restrictions need to adopt more specific guidelines that recognize circumstances for safe, and timely travel of manufacturers, technicians, or specified service workers across the border for maintenance of ongoing industrial projects."

The Associations recommend government officials provide a clearer definition of “essential workers” to help Canada Border Services Agency personnel better understand the guidelines; provide more detail on documentation requirements and implement rapid testing at ports of entry to reduce quarantine periods for individuals travelling across the border to perform essential services.

"The information obtained in this survey sends a clear message to government officials that we need to move forward with some decisive action and find an immediate solution to these issues,” said Robert Cattle, executive director, CTMA. “The announcement made on June 21 that vaccinated Canadians can now return to Canada without quarantine is just a first step and we must continue to apply pressure to put in place measures for safe travel for both U.S and Canadian citizens between our two countries."

Earlier it was reported that the American company Kraton said that the US Environmental Protection Agency (EPA) has granted an emergency exemption for the use of its new sulfonated polymer, which quickly inactivates the coronavirus. The Environmental Protection Agency has issued an emergency permit for the use of the polymer in the states of the United States, Georgia, Utah and Minnesota for specific applications to protect against the COVID-19 virus.

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