Chalmette refining announces potential USD550 MM renewable diesel project

MOSCOW (MRC) -- Gov. John Bel Edwards and PBF Chalmette Refinery Manager Steven Krynski announced the company is studying the possible conversion of an idled refinery unit into a renewable diesel production complex, said Hydrocarbonprocessing.

The refinery’s parent company, PBF Energy, would make a USD550 million capital investment to retrofit a hydrocracker unit – out of operation since 2010 – with new technology to accommodate renewable diesel production. The project also would include construction of a pretreatment unit that will allow Chalmette Refining to create non-fossil feedstocks from soybean oil, corn oil and other biogenically derived fats and oils.

With the project, Chalmette Refining would create 20 new direct jobs at an average annual salary of USD70,000, plus benefits. Louisiana Economic Development estimates the project would result in 90 new indirect jobs, for a total of 110 new jobs for St. Bernard Parish and the Southeast Region. The project is expected to support 200 construction jobs, and it would enable Chalmette Refining – the largest private employer in St. Bernard Parish – to retain 516 existing jobs at the refinery.

"Louisiana continues to position itself as a leading state for environmentally friendly energy production,” Gov. Edwards said. “This innovative project at Chalmette Refining is right in line with the goals set out by the Climate Initiatives Task Force I created last year. With this major capital investment in a next-generation energy source and the creation of quality manufacturing jobs along the way, Louisiana would benefit from this project on many levels."

PBF Energy and its potential partners are considering Chalmette Refining along with other facilities for the renewable diesel project, and it expects to make a final investment decision after local taxing bodies in St. Bernard Parish consider the project. PBF is one of the largest independent refining companies in the U.S. In addition to its Louisiana facility, PBF operates two refineries in California and one each in Ohio, Delaware and New Jersey.

"The devastating economic impact of the COVID-19 pandemic on the energy industry is undeniable – we’ve seen eight U.S. refineries shut down since the beginning of 2020, including one down the road in St. James Parish,” Krynski said. “PBF Energy is looking for projects that will create stability for our workforce, prepare the refinery for a green energy transition and help us recover from the losses of the last year and a half. Louisiana financial incentives like the Industrial Tax Exemption and Quality Jobs programs help make the numbers work, especially as our company and entire industry recover from the pandemic. With the support of our state and local leaders, I am hopeful we will be able to bring this project and its economic benefits to St. Bernard Parish."

To secure the project, the State of Louisiana offered PBF Energy an incentive package featuring the comprehensive workforce solutions of LED FastStart, the nation’s No. 1 state workforce training and talent attraction program. The company also is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs. The granting of ITEP incentives is subject to final approval by local officials in St. Bernard Parish, with votes expected later this summer.

"The Chalmette Refining facility has been a mainstay of our local economy for more than a century,” St. Bernard Parish President Guy McInnis said. “This important project would position the refinery for success in the years to come as it adapts to the new demands of our energy future. Chalmette Refining is the parish’s top taxpayer and largest private employer, and support for this project will help to secure its future in St. Bernard Parish."

"Chalmette Refining is an important asset to St. Bernard Parish and a pillar of our community,” said Executive Director Meaghan McCormack of the St. Bernard Economic Development Foundation. “As we work to attract new businesses and industries, it is also of incredible importance to recognize the businesses who have a history in the parish – businesses that stabilize our tax base, employ our people and contribute to our economy. We are grateful our parish’s largest private business employer is eager to continue investing here. This is our chance to show that St. Bernard Parish is not only welcoming to new businesses, but also supports the innovation and growth of existing companies. St. Bernard Parish is one of many locations being considered for this potential project, and our decision can make all the difference."

"Renewable diesel comes with a number of benefits: it’s made of renewable resources, it burns clean and it works just like traditional diesel,” said President and CEO Michael Hecht of Greater New Orleans Inc. “We are proud that our team has worked with Chalmette Refining, Louisiana Economic Development and elected officials over the past year to help bring this project to fruition, to bring investment, jobs and clean energy to St. Bernard and the region."

As per MRC, Louisiana parish council has approved a property tax exemption for a project that a company official said could be the saviour of independent refiner PBF Energy and its Chalmette, Louisiana refinery. The exemption, approved late on Tuesday, will save PBF ГЫВ91 million over 10 years in property taxes for a new renewable diesel unit, according to documents filed by PBF with the council of St. Bernard Parish on the east side of New Orleans. PBF wants to use the tax break to attract a partner for the conversion of an idled hydrocracker, which made diesel from gas oil, into a renewable diesel unit that will make the truck fuel from animal fats.

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) -- Chart Industries, Inc. has acquired L.A. Turbine for USD80 million. L.A. Turbine is a global leader in turboexpander design, engineering, manufacturing, assembly and testing process for new and aftermarket equipment, with significant in-house engineering expertise, said Hydrocarbonprocessing.

This acquisition aligns with our inorganic investment principles and contributes to our financial growth and strength through expanded revenue and profit. LAT’s capabilities are a natural fit and deliver a competitive point of differentiation for Chart. There is a very unique expander required for hydrogen and helium liquefaction which is difficult to obtain in the market due to a limited number of companies like LAT that are capable of designing and producing it. Further, within the last three years, the other qualified suppliers have been acquired by companies that only use their hydrogen and helium turboexpanders for in-house dedicated purposes (i.e. discontinuing sales to third parties). These very specialized expanders are difficult to design and produce as they require very high efficiency, in some cases oil free machines, foil bearings for plants producing 10 tons per day and smaller, and magnetic bearings for larger helium and hydrogen liquefaction plants. Plus, this part of the liquefier is one of the longest lead-time items at one to two years depending on the configuration. L.A. Turbine has these capabilities in-house and our ownership of these capabilities will further position us to win liquefaction projects and deliver them in significantly shorter timeframes, a further differentiator in the expanding liquefaction market.

"It is an exciting time for Chart and L.A. Turbine as we now work together to bring our customers expanded solutions across multiple molecules, including nearly all types of energy sources and multiple industrial gas applications,” stated Jill Evanko, Chart’s CEO and President. “L.A. Turbine is one of the only turboexpander engineering and manufacturing companies that can design and produce very specialized expanders; one of the longest lead time items in the hydrogen and helium liquefaction supply chain. With this capability in house, we are further differentiated in liquefaction – not just from decades of experience but also from world class efficiency and now, significantly shorter and guaranteed delivery times."

Couple the above complementary nature of the business with the fact that our companies have worked together for numerous years and we expect to have immediate and significant synergies including expanded field service and repair capabilities (LAT is the global leader in servicing all brands of turboexpanders).

"Since our company’s inception, L.A. Turbine’s focus is to be the go-to turboexpander solution provider, as an OEM of highly-engineered rotating equipment designs and process solutions for engineering, procurement and construction clients and end-user operators as well as aftermarket, service and repair. With Chart we can both capitalize on emerging market opportunities while also enhancing and extending the reach of the value chain to our collective customers through our people, technology, infrastructure and financial assets,” stated Danny Mascari, President, L.A. Turbine. “In addition, we remain committed to providing the top-of-the-line FX-TURBO aftermarket service our turboexpander customers have come to know and expect."

Additionally, this acquisition builds on other recent additions to our portfolio, including Cryo Technologies’ helium and hydrogen liquefaction capabilities which will also utilize L.A. Turbine’s equipment. Both of our businesses have very active commercial order pipelines and there are multiple requests for hydrogen liquefaction and processing as well as a variety of energy projects.

LAT is expected to be immediately accretive to Chart, with 2021 positive impact to full year guidance to be shared on Chart’s second quarter 2021 earnings call which is scheduled for July 22, 2021. Looking ahead to 2022, when we will have ramped up our combined benefits, L.A. Turbine is expected to contribute between USD40 and USD50 million of revenue and USD0.20 to USD0.30 of non-diluted earnings per share on approximately 35.5 million weighted shares outstanding (assuming tax rate of 18%). Additionally, our total addressable market (“TAM”) for our specialty products is expanded by USD350 million resulting from this acquisition – the result of the expanded TAM for hydrogen liquefaction, helium liquefaction and carbon capture with energy storage. This addition brings our total near-term specialty products addressable market size to USD6.6 billion. Winston & Strawn LLP served as legal advisor to Chart on the transaction. No investment bankers were engaged in this transaction.

As per MRC, Reliance Industries (RIL) and US-based Chart Industries are leading a new coalition focussed on commercialising hydrogen technologies and systems to build net-zero carbon pathways in India. The alliance will work together to build the hydrogen economy and supply-chain here and also help develop blue and green hydrogen production and storage apart from building hydrogen-use industrial clusters and transport use-cases with hydrogen-powered fuel cells.

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) -- Union and company negotiators met to discuss the lockout of workers at Exxon Mobil Corp’s (XOM.N) Beaumont, Texas refinery, spokespeople for both sides said, as per Reuters.

Exxon and United Steelworkers union (USW) representatives agreed to meet again next week, said Hoot Landry, international staff representative for the union, as the lockout of 650 workers reached nine weeks. "We continue to meet and bargain in good faith,” said Exxon spokeswoman Julie King. “Our current offer remains available for a vote by the membership."

Exxon locked out the workers represented by USW 12-243 on May 1, citing the risk of a strike. Exxon has said the proposal would give it flexibility to be profitable in even low-margin environments.

As MRC informed previously, Gov. John Bel Edwards and ExxonMobil Baton Rouge Refinery Manager David Oldreive have announced the company’s final investment decision for more than USD240 million in capital improvements at the ExxonMobil Baton Rouge Refinery.

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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- Haldor Topsoe will build a 15,000-tpy hydroprocessing catalyst plant at the company’s existing Bayport production site in Pasadena, Harris County, Texas, said the company.

The plant will increase production capacity of Topsoe’s TK catalyst family to meet increasing demand, both in traditional refining and for use with Topsoe’s HydroFlex technology for production of renewable diesel and jet fuel. The plant is expected to be fully operational in the first half of 2023.

"We are happy to announce this significant investment which will reduce lead time and secure stable deliveries of Topsoe’s top-tier hydroprocessing catalysts to our customers in the U.S. and globally. We see increasing demand for our refining catalysts driven by an increasing global demand for clean fuels as well as the surge in renewable diesel production using our world-leading HydroFlex technology and our proprietary renewable fuel catalysts," says Amy Hebert, Chief Commercial Officer, Topsoe.

The increased production capacity will also help meet growing demand for Topsoe’s hydroprocessing catalysts in the Middle East and South-East Asia. "We are proud to be a member of the innovative and expanding business community in Harris County. Topsoe has a long-standing presence in Bayport where our plant has been in operation for more than 50 years. With this expansion, our operations here are secured for years to come, and the area will benefit from new jobs directly at the facility, as well as more business for our local service providers,” says Amy Hebert.

The new refining catalyst plant is an important step forward in the work to achieve Topsoe’s vision – to be recognized as the global leader in carbon emission reduction technologies by 2024. “I am always looking for opportunities that strengthen our local economy and that also get people working in good-paying jobs. I am proud of this partnership between Harris County and Haldor Topsoe to build a new facility in the Pasadena-area of Precinct 2” says Adrian Garcia, Harris County Precinct 2 Commissioner. “This project is the first under our newly adopted Economic Development Guidelines. We are also always supportive of new innovative methods of cleaner energy production, so this project satisfies a number of my goals for industry that decides to make its home in Precinct 2,” says Adrian Garcia.

“This is a huge win for the region and the new TK hydroprocessing catalyst manufacturing plant should be viewed as critical infrastructure to support the world's largest petrochemical complex. Its production will meet a growing global market demand coinciding with decades of unprecedented capital investment that has taken advantage of North America’s abundant low-cost and clean burning natural gas. With a 7-to-1 indirect job creation of high-paying careers, it is the type of project that further strengthens our economy in the Houston Port Region,” says Chad Burke, President & CEO, Economic Alliance Houston Port Region.

"Today’s exciting announcement from Haldor Topsoe to expand operations in Bayport with a new TK hydroprocessing catalyst plant serves as another prime example of the region’s leadership in the global energy transition to a low-carbon world. Houston has the expertise and built infrastructure necessary to produce and transport Haldor Topsoe’s hydroprocessing catalyst to customers in the U.S. and globally. We thank Haldor Topsoe for their continued investment in the Houston region," Says Susan Davenport, Chief Economic Development Officer, Greater Houston Partnership.

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 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) -- Honeywell announced that the Societe Ivoirienne de Raffinage (SIR), the state-owned refining company of Cote d’Ivoire, will use Honeywell UOP Distillate Unionfining technology to produce diesel that complies with both AFRI 6 and Euro-V emission standards, said Hydrocarbonprocessing.

The investment is part of Cote d’Ivoire clean air program and SIR’s refinery modernization. UOP, a leading technology provider for the oil and gas industry, will provide services, equipment, catalysts and adsorbents. The UOP Unionfining process removes impurities to improve the quality of middle distillate feedstocks such as kerosene, jet fuel, and diesel oils that meet increasingly stringent regulations for fuels such as diesel.

"The addition of the UOP Distillate Unionfining process will allow SIR to meet changing diesel specifications in Africa, with a cost-effective solution that reduces the sulfur content while maximizing distillate yields,” said Laura Leonard, vice president and general manager, Honeywell UOP Process Technologies. “Our design for this unit and track record of success with this technology enables SIR to raise its crude processing capacity, as part of the modernization one of the West Africa’s largest oil refineries."

UOP Unionfining technology provides flexible solutions to gas oil conversion for ultra-low-sulfur diesel fuel and kerosene production. UOP is the world’s leading provider of distillate hydrotreating technology and has licensed more than 370 Unionfining units globally.

The Societe Ivoirienne de Raffinage (SIR) was created in 1962 by the Ivorian government with the support of international oil groups. It refines crude oil and distributes petroleum products in Cote d’Ivoire and the rest of the world. SIR refines 3.8 million tons of crude oil on an annual basis.

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, Russia's supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased. PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year.
MRC