Hexion to cut carbon emissions by 20% by 2030

Hexion to cut carbon emissions by 20% by 2030

MOSCOW (MRC) -- Hexion Inc., a major American manufacturer of phenol and bisphenol A (BPA), has recently announced that in order to help address climate change, it has committed to reduce absolute carbon emissions by 20% by 2030, according to BusinessWire.

A leading producer of adhesives, coatings and composite resins, Hexion’s commitment encompasses “Scope 1” and “Scope 2” emissions, which are direct and indirect greenhouse emissions from operations and consumed energy. The reduction target is compared to 2017, the baseline year of operations.

Hexion is also reviewing its “Scope 3” emissions, which are those associated with all other aspects of the company' business, such as raw materials, product use and disposal, waste generation, business travel, and the impact of associate commuting, among others. The establishment of the greenhouse gas reduction commitment follows a 2020 materiality assessment where Hexion engaged with various internal and external stakeholders. From that assessment, the company determined its most important areas of focus, which included formalizing the following goals:

- Minimizing climate change impact - Hexion will strive to protect against climate change throughout its business lifecycle by efficiently using natural resources, optimizing existing processes and enhancing products and technologies through continuous innovation.
- Developing innovative sustainable products - Hexion is committed that by 2030, all new products will incorporate sustainable attributes.
- Enhancing worker safety/well-being - By 2022, Hexion will offer a voluntary well-being program that addresses associate physical, mental, and financial well-being with the goal of 50% associate participation in the program by 2025. Hexion also re-affirmed its commitment to continue to drive toward zero recordable injuries.
- Reducing spills and releases - Hexion has committed to reduce spill mass and releases by 80 percent by 2025.
- Maintaining product stewardship - Hexion remains committed to implementing the Responsible Care Product Safety Code and will continue to be transparent and communicate to key stakeholders regarding its stewardship programs such as risk reviews and reduction of substances of concern.

As further validation of its commitment to more sustainable operations, Hexion also recently received its first ENERGY STAR Partner of the Year award, one of the highest honors bestowed by the United States Environmental Protection Agency’s ENERGY STAR program. Hexion was recognized for numerous successes in waste reduction and energy efficiency throughout the company since 2014. In that time, Hexion has reduced global energy intensity by 28%, executed more than 250 sustainability projects, and produced water and energy savings of approximately USD14 million, including USD2 million in 2020 alone. Each year, the ENERGY STAR program honors a group of businesses and organizations that have made outstanding contributions to protecting the environment through superior energy achievements. ENERGY STAR Award Winners lead their industries in the production, sale, and adoption of energy-efficient products, services, and strategies. These efforts are essential to fighting the climate crisis and protecting public health.

As MRC informed before, Hexion shut down its BPA plant in the Netherlands for scheduled maintenance in early November, 2020. The turnaround at this plant with a capacity of 120,000 mtyear of BPA, located in Pernis, the Netherlands, lasted until the end of November, 2020.

Bisphenol A is used as a hardener in the production of plastics, as well as plastic-based products. It is one of the key monomers in the production of epoxy resins and polycarbonate (PC).

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) rose in January-May 2021 by 8% year on year to 42,200 tonnes (38,900 tonnes a year earlier).

Hexion Inc., formerly Momentive Specialty Chemicals Inc., is a chemical company based in Columbus, Ohio. It manufactures thermosetting resins and related technologies and specialty products. Hexion has two divisions: the epoxy, phenolic and coating resins division and the forest products division.

TechnipFMC to sell 9%-stake in Technip Energies

MOSCOW (MRC) -- TechnipFMC has announced the launch of the placement of 16 million Technip Energies shares, representing ca. 9% of Technip Energies’ issued and outstanding share capital, through a private placement by way of an accelerated bookbuild offering, according to Hydrocarbonprocessing.

Upon completion of the Placement, TechnipFMC would retain a direct stake of ca. 22% of Technip Energies’ issued and outstanding share capital.

TechnipFMC has agreed to a 60-day lock-up for its remaining shares in Technip Energies, subject to waiver from the Joint Global Coordinators and certain other customary exceptions, including transfer of shares to a subsidiary, granting and enforcement of security interests in connection with financing and derivative transactions and tender into any public tender offer for all or part of the shares.

The Placement is targeted at eligible institutional investors. There will be no public offering in any country.

The final terms of the Placement are expected to be announced on July 30 at the latest. Settlement for the Placement is expected to take place on or around August 3, 2021.

As MRC wrote previously, in June 2021, Technip Energies announced the initiation of an agreement with Agilyx Corporation, a wholly owned subsidiary of Agilyx AS and pioneer in the advanced recycling of post-use plastics. This collaboration aims to accelerate the implementation of Agilyx’s technology for the advanced recycling of post-use polystyrene (PS). Under this agreement, Technip Energies will market and license the integrated technologies of Agilyx depolymerization and Technip Energies purification technology, leveraging the expertise, resources, and global presence of respective companies. The technology is ready and available for licensing.

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics totalled 236,110 tonnes in the first five months of 2021, up by 27% year on year (172,360 tonnes). May estimated consumption was 48,880 tonnes, up by 66% year on year.

PP production in Russia grew by 13% in H1 2021

MOSCOW (MRC) - Russia's production of polypropylene (PP) increased to about 1.025 m tonnes in first six months of this year, up 13% year on year, compared with the same period of 2020. Only two producers increased their output, according to MRC's ScanPlast report.

Russian plants' total PP production increased to 173,800 tonnes in June from 158,000 tonnes a month earlier, ZapSibNeftekhim increased its capacity utilisation after the short turnaround in April-May. Russia's overall PP production reached 1.025 m tonnes in January-June 2021, compared with 905,900 tonnes a year earlier. Two out of seven producers increased their capacity utilisation, with SIBUR Tobolsk/ZapSibNeftekhim accounting for the greatest growth in the output.

The structure of PP production by plants looked the following way over the stated period.

SIBUR Tobolsk / Zapsibneftekhim increased capacity utilization in June, the total production of polypropylene reached 97,900 tonnes versus 76,900 tonnes a month earlier (in late April - early May, the company carried out preventive maintenance works). Tobolsk complex's PP overall output reached 537,200 tonnes in the first six months of 2021, up by 28% year on year.

Poliom kept high level of capacity utilisation in June, having produced about 17,200 tonnes of PP compared with 17,400 tonnes a month earlier. Overall, the Omsk plant produced about 104,000 tonnes of PP over the stated period, up by 11% year on year.

Nizhnekamskneftekhim produced a little less then 18,400 tonnes of propylene polymers in June versus 18,700 tonnes a month earlier.
The Nizhnekamsk plant's overall output of polymer reached 109,800 tonnes in January-June 2021, compared to 110,000 tonnes a year earlier.

Tomskneftekhim last month produced about 10,000 tonnes against 13,300 tonnes a month earlier. Total PP production by the producer increased to 74,700 tonnes in January-June 2021, up 3% year on year.

Ufaorgsintez's capacities were operated with a reduceloadingng in June, as well as in May, the final PP production reached about 9,300 tonnes. The Ufa plant's overall output of polymer reached 63,100 tonnes in the first six months of 2021, down by 5% year on year.

NPP Neftekhimiya (Kapotnya) produced about 12,400 tonnes last month, compared to 13,000 tonnes in May. The plant's overall PP output reached 75,300 tonnes over the stated period, which was the same as in 2020.

Stavrolen (Lukoil) produced slightly over 8,600 tonnes of propylene polymers in June versus 9,200 tonnes a month earlier. The Budenovsk plant's overall output of propylene polymers reached 60,800 tonnes in the first six months of 2021, up by 3% year on year.


U.S. renewable diesel capacity could increase due to upcoming projects

U.S. renewable diesel capacity could increase due to upcoming projects

MOSCOW (MRC) -- U.S. production capacity for renewable diesel could increase significantly through 2024, based on several announcements for projects that either are currently under construction or could be in development soon, said Hydrocarbonprocessing.

This growth is driven by higher state and federal targets for renewable fuel, favorable tax credits, and the conversion of existing petroleum refineries into renewable diesel refineries. As of the end of 2020, U.S. renewable diesel production capacity totaled nearly 0.6 billion gallons per year (gal/y), or 38,000 barrels per day (b/d). Several projects currently under construction could increase this capacity by 2.4 billion gal/y; proposed and announced projects would add another 1.8 billion gal/y by 2024. If all projects come online as intended, U.S. renewable diesel production would total 5.1 billion gal/y (330,000 b/d) by the end of 2024.

Despite growth in renewable diesel production, renewable diesel will make up about 5% of current U.S. diesel production capacity by 2024 if all estimates of proposed renewable diesel capacity expansions occur as planned and petroleum diesel refinery capacity remains largely unchanged.

Renewable diesel is a renewable fuel that is chemically the same as petroleum diesel and nearly identical in its performance characteristics. Renewable diesel can be blended into petroleum diesel at any level, making it different from biodiesel, which can only be blended at rates between 2% and 20% of diesel fuel by volume.

Renewable diesel receives some of the most favorable greenhouse gas (GHG) reduction scores among existing programs, such as the federal Renewable Fuel Standard (RFS) and the California Low-Carbon Fuel Standard (LCFS). As a result, participants in those programs are increasingly using renewable diesel to meet rising renewable fuel targets.

Although most new capacity for renewable diesel will be on the West Coast, some announced projects are on the Gulf Coast. California and other western states such as Oregon and Washington will likely consume the majority of renewable diesel produced on the Gulf Coast to meet future LCFS program targets in those states.

Several former petroleum refineries plan to begin producing renewable biodiesel. Marathon Petroleum’s refinery in Martinez, California, plans to start producing renewable diesel in 2022 and could reach its full production capacity of 730 million gal/y (48,000 b/d) in 2023. Phillips 66’s Rodeo Renewed project in San Francisco, California, plans to produce 800 million gal/y (52,000 b/d) of renewable fuels when completely converted in 2024. If realized, this project would be the world’s largest facility of its kind.

As MRC informed earlier, Marathon Petroleum shut down a catalytic cracking unit in Galveston Bay on 18 June for scheduled maintenance. Maintenance at the 250,000 tonnes of propylene per year cat cracking unit will continue for 14 days.

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.

Shell raises dividend by almost 40% amid soaring oil prices

Shell raises dividend by almost 40% amid soaring oil prices

MOSCOW (MRC) -- Royal Dutch Shell has raised its dividend almost 40 per cent and launched a USD2bn share buyback scheme, as the energy major takes advantage of stronger energy prices to try to attract back investors, said The Financial Times.

Thursday’s moves, which came as the group reported a jump in second-quarter earnings helped by oil’s recovery above USD70 a barrel, were more aggressive than analysts had anticipated and show the pressure on energy majors to resurrect flagging share prices.

France’s TotalEnergies also reported strong results on Thursday with its highest half-year earnings in five years, and will use some of its cash flow for share buybacks. Investors remain wary of a sector that has been hard hit by two price slumps since 2015 while facing the long-term challenge of a possible peak in oil demand and increasing government action to tackle climate change.

Shell’s shares rose 3.5 per cent on Thursday but remain more than 40 per cent down from where they were two years ago, when oil prices were marginally lower. The company had said in April the dividend would probably remain unchanged for the rest of 2021 after raising it slightly at its previous earning report.

“There is an element of confidence in raising the dividend,” said Ben van Beurden, chief executive. "We felt that our dividend needed to be reset as the gap between our dividend payout and free cash flow was simply too large. We wanted to signal to the market the confidence we have in our prospects and cash flows by making it permanent."

Analysts said the focus on returning cash was an effort to demonstrate that the energy majors remain huge generators of free cash flow when energy prices are strong, with the ability to bolster payouts to yield-hungry investors. "Shell’s stepping up distributions is extremely positive," said Biraj Borkhataria at RBC Capital Markets.

Shell’s dividend will rise to 24 cents a share from the second quarter, although it remains well below its pre-pandemic level. Last year the company slashed it by two-thirds to 16 cents, the first reduction since the second world war, as pandemic-induced lockdowns hit energy demand and pushed oil prices below USD20 a barrel. The policy of increasing dividends 4 per cent a year “remains unchanged”, the company said.

The buybacks were more widely anticipated, with investors keen to see energy companies returning cash rather than raising investment. Many had predicted, however, that the buyback would be closer to USD1.5bn. Shell said it would keep holding capital expenditure below USD22bn for the year. Oil and gas majors in Europe are trying to balance investor demand for higher returns and pressure to adjust their business models to align with climate goals.

Van Beurden said he was increasingly confident oil prices would remain strong in the medium term, partly resulting from under-investment in the sector, but indicated any increases to planned capital expenditure would be weighted towards the company’s strategy of boosting cleaner fuels such as hydrogen.

In the second quarter, Shell reported adjusted net profit of $5.5bn, slightly ahead of analyst expectations of USD5bn and up from USD3.2bn in the first quarter. Cash flow from operations, excluding working capital movements, hit USD14.2bn in the second quarter, exceeding analyst expectations for USD12.1bn. Total’s adjusted net income rose 15 per cent quarter-on-quarter to USD3.5bn.

As MRC informed earlier, Royal Dutch Shell closed the FCC unit at its Deer Park, TX facility on 18 July due to a fire. It is not known how long this facility will be closed with a capacity of 340,000 barrels per day and 90,000 tonnes of propylene per year.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

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.