Eni and Mubadala Petroleum sign MoU to cooperate in energy transition sector

Eni and Mubadala Petroleum sign MoU to cooperate in energy transition sector

MOSCOW (MRC) -- Italian energy group Eni and Mubadala Petroleum, a wholly owned subsidiary of Mubadala Investment Company, have signed a Memorandum of Understanding (MoU) aimed at identifying cooperation opportunities in the energy transition sector, including the fields of hydrogen and carbon capture, utilization and storage, that align with their respective decarbonization targets, reported Reuters.

The scope of the cooperation covers potential joint opportunities in the Middle East, North Africa, South East Asia, Europe and other regions of mutual interest.

This agreement marks a further tangible step in line with Eni's commitment towards carbon neutrality by 2050, promoting cooperation between different players in the sector and consolidating alliances for sustainable development aimed at tackling the energy transition challenges together.

Eni CEO Claudio Descalzi, said: “The agreement signed with Mubadala Petroleum, represents another step towards a low carbon emission future. Eni will leverage all its proprietary technologies, focused on energy transition. We will work with a strategic partner like Mubadala Petroleum to find ways of reaching common decarbonization targets worldwide.”

Eni decarbonization path envisages a Net Zero Carbon Footprint for Scope 1 and 2 emissions from upstream activities by 2030 and from all Group activities by 2040. This is aiming to accomplish the net-zero target on GHG Lifecycle emissions Scope 1, 2 and 3 by 2050 with full decarbonization of products and operations. This will be achieved through bio-refining, circular economy, efficiency and digital solutions, increased renewables capacity, blue and green hydrogen, carbon capture, utilization and storage projects and REDD+ initiatives.

Recent initiatives include CO2 capture and storage projects in the UK, delivering carbon-neutral LNG cargos, enhancing electric charging services in Europe, new solar power capacity in Spain and France, and renewable energy projects in countries of operations such as Norway, Kazakhstan, Angola, and other.

As MRC wrote previously, Eni is evaluating conversion of its Livorno refinery in northwest Italy into a biorefinery, as part of the Italian company's wider strategy to make its activities more environmentally sustainable. Eni has already converted two of its Italian refineries and is looking to almost double its biorefining capacity to around 2 million mt/year by 2024, and expand this to at least five times by 2050, as part of its pledge to achieve complete carbon neutrality by 2050.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

Eni, abbreviation of Ente Nazionale Idrocarburi, in full Eni SpA, Italian energy company operating primarily in petroleum, natural gas, and petrochemicals. Established in 1953, it is one of Europe's largest oil companies in terms of sales.
MRC

PureCycle plans with Mitsui to develop recycled PP plant in Japan

PureCycle plans with Mitsui to develop recycled PP plant in Japan

MOSCOW (MRC) -- PureCycle Technologies, Inc., a company revolutionizing polypropylene recycling, announced a signed memorandum of understanding (MOU) with Mitsui & Co., Ltd. (Mitsui) as a first step to developing and operating a recycling facility in Japan to transform polypropylene (PP) waste into Ultra-Pure Recycled Polypropylene (UPRP), said Process-worldwide.

“We believe Mitsui is the best partner for PureCycle to help us lead and navigate the process of building an ultra-pure recycled polypropylene plant in Japan,” said Mike Otworth, PureCycle CEO, “Through the collaboration with Mitsui, we are now one step closer to our goal of reducing plastic waste across the world and revolutionizing the way people use plastic products. There is no reason polypropylene waste shouldn’t be recycled and transformed into ultra-pure, sustainable polypropylene.”

“Mitsui has identified ‘sustainability management and the evolution of ESG’ as key areas of its Corporate Strategy,” said Hiroshi Kakiuchi, managing officer, chief operating officer of the Performance Materials Business Unit at Mitsui, “Through this new joint project with PureCycle, Mitsui aims to contribute to the overall reduction of plastic waste and the establishment of a circular economy in Japan. By securing plastic waste as the raw material, manufacturing recycled PP resin, and expanding the applications of the material for consumer goods, food containers, and automobile interiors, Mitsui aims to make a meaningful contribution to the creation of the more sustainable society.”

Mitsui’s expertise will position PureCycle very well in Japan and will expand operations globally. Mitsui will help facilitate the pre-construction, on-the-ground operations and will be an integral part of PureCycle’s work in Japan.

The MOU with Mitsui comes on the heels of PureCycle’s successful second quarter 2021 update. Construction on the flagship Ironton, Ohio PureCycle recycling facility is well underway and expected to begin commercial production in the fourth quarter of 2022, and the company recently announced the location for the first cluster facility in Augusta, Georgia. PureCycle has already presold more than 20 years of UPRP output from the Ohio plant and has already allocated 40% of its second plant in Augusta to Ohio facility customers. PureCycle is seeing strong demand from premium brands, like L’Oreal, who are looking to deliver recycled content into premium applications without sacrificing quality.

As per MRC, PureCycle Technologies, Inc., the innovative recycled polypropylene (PP) producer, is in plans to start operating its flagship PP recycling plant at Ironton, Ohio, which will convert carpet scraps based on PP composite material into high-purity pellets, at scale in late 2022. The company has ordered two extruders from Germany-based plastics machinery manufacturer KraussMaffei for this plant.

According to MRC's ScanPlast report, Russia's PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

PureCycle Technologies LLC, a subsidiary of PureCycle Technologies, Inc., holds a global license to commercialize the only patented solvent-based purification recycling technology, developed by The Procter & Gamble Company, for restoring waste polypropylene (PP) into ultra-pure resin. The proprietary process removes color, odor and other contaminants from recycled feedstock resulting in ultra-pure polypropylene suitable for any PP market.

Mitsui & Co., Ltd. (8031: JP) is a global trading and investment company with a diversified business portfolio that spans approximately 64 countries in Asia, Europe, North, Central & South America, The Middle East, Africa and Oceania. Mitsui has over 5,600 employees and deploys talent around the globe to identify, develop, and grow businesses in collaboration with a global network of trusted partners. Mitsui has built a strong and diverse core business portfolio covering the Mineral and Metal Resources, Energy, Machinery and Infrastructure, and Chemicals industries.
MRC

Cosmo Films stock hits new high after announcing BOPP expansion and first interim dividend

MOSCOW (MRC) -- Cosmo Films Limited, a Global Leader in Films for Packaging, Labelling, Lamination and Synthetic Paper and an emerging player in Specialty Chemicals, Polymers & Pet care today announced expansion by setting up the world’s largest BOPP film production line at Aurangabad with annual rated capacity of 67,000 MT, said the company.

The BOPP line will require investment of about Rs. 350 crores to be funded through internal accruals and debts and is expected to be commencing commercial production within FY 2024-25. Backed by strong financial performance, the Company has also declared first interim dividend of Rs 25 per share for FY2021-22.

Commenting on Company’s performance Mr. Pankaj Poddar, CEO, Cosmo Films Ltd. said “With current capacity expected to produce primarily speciality films (80%+) in next two years and projected BOPP film demand growth in India, the Company planned capacity expansion which will be world’s largest production line with annual rated capacity of 67,000 MT with lowest cost of production.

The Company has also recently launched ZIGLY – India’s first tech-enabled integrated pet-care platform – through the launch of its website and the opening of its flagship experience center in New Delhi. Other growth plans i.e. Specialized BOPET line, focused towards growing specialty sales, expanding into Cosmo Specialty Chemicals are progressing well in line with the plan."

As MRC informed earlier, Cosmo Films introduced BOPP based heat resistant (HR) films. The films have been engineered to work as printing layer replacing BOPET film in multi-layer laminates for various packaging applications in both food and non-food segments. The company has also launched a barrier version of the film.

According to MRC's ScanPlast report, Russia's PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

Established in 1981 and founded by Mr. Ashok Jaipuria, Cosmo Films today is a global leader in specialty films for packaging, lamination, labeling and synthetic paper. With engineering of innovative products and sustainability solutions, Cosmo Films over the years has been partnering with worlds’ leading F&B and personal care brands and packaging & printing converters to enhance the end consumer experience. Its customer base is spread in more than 100 countries with sales & manufacturing units in India and Korea and additionally sales & distribution base in Japan, USA, Canada and Europe. The Company is strategically expanding beyond Films into Specialty Chemicals & Polymers as well as Pet care business.
MRC

Mitsubishi Corporation and Shell partner on hydrogen project in Canada

Mitsubishi Corporation and Shell partner on hydrogen project in Canada

MOSCOW (MRC) -- Mitsubishi Corp and Shell Canada Products, by its managing partner, Shell Canada Limited (Shell Canada) have signed a Memorandum of Understanding (MoU) relating to the production of low-carbon hydrogen through the use of carbon capture and storage (CCS) near Edmonton, Canada, according to JapanToday.

Mitsubishi Corp said it aims to build and start-up the low-carbon hydrogen facility near the Shell Energy and Chemicals Park Scotford towards the latter half of this decade, and Shell would provide CO2 storage via the proposed Polaris CCS project. The low-carbon hydrogen, commonly called blue hydrogen, would be produced via a natural gas feedstock and exported mainly to the Japanese market to produce clean energy.

"Shell is leveraging our global leadership in carbon capture and storage to help produce the low-carbon products our customers need to move through an accelerated energy transition," said Mark Pattenden, Senior Vice President of Chemicals and Products Canada. "This opportunity is in line with our vision to create a world-class site to provide customers with lower-carbon fuels, products and carbon storage."

The first phase of the project aims to produce approximately 165,000 tons per annum of hydrogen with upside to increase production depending on considerations over future phases. The hydrogen would be converted to low-carbon ammonia for export to Asian market(s).

The project would be built near the Edmonton region, which this year was announced as Canada's first hydrogen hub. The location was chosen due to availability of abundant natural gas resources, proven CO2 storage capacity, and shared infrastructure opportunities.

As MRC reported previously, in July 2021, Royal Dutch Shell agreed to sell its stake in eastern German refinery PCK Schwedt, the latest in a string of refinery disposals as part of the Anglo-Dutch company's energy transition strategy. Shell said in a statement that it will sell its 37.5% share in the refinery for an undisclosed sum to Vienna-based Alcmene GmbH, part of the Liwathon Group, an integrated logistics and investment business headquartered in Estonia. The deal is expected to close in the second half of 2021, pending approval by cartel authorities and its partners, Russia's Rosneft and Italy's Eni.

We remind that Royal Dutch Shell plans to reduce its refining and chemicals portfolio by more than half, it said in July 2020 without giving a precise timeframe. The move is part of the Anglo-Dutch company's plan to shrink its oil and gas business and expand its renewables and power division to reduce greenhouse gas emissions sharply by 2050.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

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.

Mitsubishi Chemical with headquarters in Tokyo, Japan, is a diversified chemical company involved in petrochemicals, polymers, agrochemicals, speciality chemicals and pharmaceuticals. The company's main focus is on three business pillars: petrochemicals, performance and functional products, and health care.
MRC

Rosneft became the only Russian oil and gas company as a leader in the area of sustainable development

Rosneft became the only Russian oil and gas company as a leader in the area of sustainable development

MOSCOW (MRC) -- Rosneft became the only Russian oil and gas company announced as Global Compact LEAD in the area of sustainable development due to ongoing commitment to the United Nations Global Compact and its Ten Principles for responsible business, said the company.

The announcement of Rosneft Global Compact LEAD took place within the framework of the 76th session of the General Assembly of the United Nations. Rosneft was identified as being among the most highly-engaged participants of the world’s largest corporate sustainability initiative. In 2021, only 37 companies, out of which four companies belong to the oil and gas business, were assigned the Global Compact LEAD status.

Sanda Ojiambo, CEO and Executive Director of the UN Global Compact, said, “LEAD companies represent the highest level of engagement with the UN Global Compact. More than ever before, the world needs businesses of all sizes — like the ones announced as LEAD today — that continuously work to improve their sustainability performance and take action to build a better world."

“Recognition as a Global Compact LEAD participant confirms Rosneft’s reputation of a company with high standards of corporate responsibility, and a superior asset portfolio that ensures sustainable economic development with a minimal environmental footprint,” – said Igor Sechin, Rosneft Chief Executive Officer. Mr Sechin reminded that Rosneft was the first Russian company that publicly confirmed its commitment to the 17 Sustainable Development Goals of the United Nations, and integrated them into the corporate strategy.

Mr Sechin noted that Rosneft is the largest taxpayer of the Russian Federation, and plays a strategically important systemic role in the Russian energy industry and national economy on the whole, accounting for about four percent of Russia’s gross domestic product. For over ten years, Rosneft has been sharing the sustainable development principles of the United Nations Global Compact, and, through its operations, promoting development of the global economy based on the principles of equity, equality, and effective climate action.

Rosneft has demonstrated its commitment to the UN Global Compact this year by participating in Action Platforms on Sustainable Finance and Sustainable Ocean Business. Each UN Global Compact Action Platform convenes business, Global Compact Local Networks, leading experts, civil society, Governments and UN partners to solve complex and interconnected issues and innovate around the Sustainable Development Goals.

Rosneft planned to build an oil refining and petrochemical complex in the Primorsky Territory in two stages - oil refining with a capacity of 12 m tonnes per year and petrochemicals with a capacity of 3.4 m tonnes 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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.
MRC