Chevron to acquire an equity interest in Mitsubishi Power and Magnum Green Hydrogen Hub in Utah

MOSCOW (MRC) -- Chevron is poised to acquire an equity interest in the Advanced Clean Energy Storage project, a developing green hydrogen hub that could support more than 1 GW of electrolysis facilities and store 5,500 metric tonnes of their produced green hydrogen in salt caverns near Delta, Utah, according to POWER.

The integrated energy giant on Sept. 9 announced that it agreed, through its Chevron New Energies division, “on a framework” to acquire an equity interest in ACES Delta, a 2019-formed joint venture between Mitsubishi Power Americas and Magnum Development that owns the Advanced Clean Energy Storage project. Chevron, Magnum, and Mitsubishi Power are currently negotiating definitive documentation outlining Chevron’s participation in the joint venture.

The development is another notable sign of progress for the green hydrogen hub, which Mitsubishi Power (then known as Mitsubishi Hitachi Power Systems) and Magnum unveiled in 2019. The project essentially comprises a series of facilities above and within the Magnum Salt Dome, a geologic formation that was tectonically developed from a bedded salt deposit, and which seismic mapping suggests measures at least one mile thick and about three miles wide. Magnum already currently operates five salt caverns at the formation for liquid fuels storage.

Chevron, Magnum, and Mitsubishi Power said in a joint statement on Thursday that Chevron will bring its “footprint and expertise” in the transportation and industrial sectors to the project. Chevron is already working to “build demand for hydrogen—and the technologies that support it - in heavy-duty transportation and industrial sectors in which greenhouse gas emissions are hard to abate,” the company said.

For Chevron, the potential to partner on the Advanced Clean Energy Storage project presents “an exciting opportunity” that would “provide a scalable platform” to supply its customers with “affordable, reliable and ever-cleaner energy,” said Jeff Gustavson, president of Chevron New Energies, a division that he said the oil and gas giant created “to grow new competitive business lines in areas like hydrogen.”

Chevron’s participation, however, provides a new financing dimension for the green hydrogen hub. When launched in 2019, the project was estimated to cost USD1 billion.

As MRC reported earlier, in August 2021, Chevron and other partners said they are investing in a startup to build modular waste-to-green hydrogen and renewable synthetic fuel facilities in northern California with tentative plans to eventually grow worldwide. The USD20 million investment in Wyoming-based Raven SR is focused on technology to develop combustion-free, green hydrogen for transportation that is cleaner than so-called blue hydrogen derived from natural gas.

We remind that Chevron Phillips Chemical, a joint venture of Phillips 66 and Chevron, will make a final investment decision on a new cracker in far southeast Texas in 2022, followed by an FID in 2023 on an USD8 billion joint venture petrochemical complex along the US Gulf Coast in 2023.

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.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC

MOSCOW (MRC) -- Formosa Plastics USA, part of Formosa Petrochemical, partially restarted its Baton Rouge operations, which include a 513,000 mt/year polyvinyl chloride (PVC) plant, post-Ida on September 7, 2021, reported S&P Global with reference to sources familiar with company operations.

Meanwhile, the company is awaiting full restoration of normal industrial gas feedstock supply, according to sources.

Formosa declared force majeure on PVC on 3 September, 2021, in light of reduced output after the storm's assault, according to a customer letter seen Sept. 7.

Formosa did not respond to a request for comment.

As MRC wrote previously, Formosa Plastics USA has postponed the start-up of its expanded PVC production capacities at its existing plant in Baton Rouge, Louisiana, to Q4 2022. Initially, the company planned to launch the expanded capacities at its 513,000 mt/year of PVC plant in Q4 2021. Formosa did not respond to inquiries about the delay. The company intends to debottleneck production at this plant, adding 130,077 mt/year of PVC capacity, according to permitting documents.

According to MRC's ScanPlast report, Russia's overall production of unmixed PVC totalled 580,500 tonnes in the first seven months of 2021, up by 4% year on year. At the same time, one producer reduced its output.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

MOSCOW (MRC) -- Linde has said it will construct a proton exchange membrane (PEM) electrolyser plant in Niagara Falls to produce green hydrogen for the state – and the company says it will be operational in 2023, said Gasworld.

The project, expected to start production in two years, has a USD17.3 million price tag and includes two parallel systems to maximize daily production of emission-free hydrogen, using the hydropower generated by Niagara Falls.

The hydrogen is produced through electrolysis, with an electric current splitting water into its hydrogen and oxygen components, without pollution. Water and heat are the byproducts.

"By providing an emission-free fuel that can be used for hard-to-electrify industrial and other power needs, Linde’s project will also reduce greenhouse gas emissions and support the State’s climate goals, as well as fulfill the WNYREDC’s focus on innovation and sustainability in its tradable sector of advanced manufacturing,” said Kevin Younis, COO and executive deputy commissioner at Empire State Development.

Empire State Development used the Excelsior Jobs Program to offer tax credits of up to USD671,000 and a Regional Council Capital Fund Grant is providing USD250,000.

“As we strive to rebuild and restart our economy following the COVID-19 pandemic, the opportunity to retain 86 jobs in Niagara Falls is more than welcome," said state Sen. Republican Leader Rob Ortt (R-North Tonawanda). "The significance of these career opportunities to our area cannot be overstated."

As it was earlier reported, BASF SE (Germany), Sabic (Saudi Arabia) and Linde (Germany) signed an agreement to develop electrically heated cracking furnaces. Steam cracking units require significant amounts of energy to break down hydrocarbons into olefins and aromatics.

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.

Linde is a leading global industrial gases and engineering company with 2020 sales of USD27 billion (EUR24 billion). We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain and protect our planet.
MRC

MOSCOW (MRC) -- The US Energy Department approved a second loan of 1.5 million barrels of oil to ExxonMobil from the Strategic Petroleum Reserve (SPR) after damage from Hurricane Ida devastated offshore oil production, reported Reuters.

"The SPR's ability to conduct exchanges is a critical tool available to refiners to strengthen the fuel supply chain and mitigate disruptions following emergencies, like Hurricane Ida," the department said on its website after authorizing the additional loan to Exxon's Baton Rouge refinery.

Exxon is transporting the oil to the 520,000 barrels per day refinery, "which will help us completely restore normal operations and continue providing fuel to the impacted area," said Julie King, a company spokesperson. The plant resumed normal operations earlier in the day.

The Energy Department has now authorized loans totaling 3.3 million barrels to help refiners cope with the dearth of oil coming from the US Gulf.

As MRC informed earlier, on 2 September, US Energy Secretary Jennifer Granholm authorized the first loan to Exxon's Baton Rouge. That day it also loaned 300,000 barrels of oil to Placid Refining Company LLC's refinery near Baton Rouge.

Three-quarters of US Gulf of Mexico oil production remain offline after Ida made landfall over a week ago. Ida was one of the worst hurricanes for oil producers since back-to-back storms in 2005.

We remind that ExxonMobil was restarting its 517,700 b/d refinery at Baton Rouge, Louisiana, after it was shut down ahead of Hurricane Ida. a company spokesperson said Sept. 1.

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.

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) -- Most of the nine Louisiana refineries shut by Hurricane Ida have restarted or were restarting, nearly two weeks after the powerful storm came ashore, a Reuters survey showed, said Hydrocarbonprocessing.

Refiners are coming back faster than oil production, a reverse of past storm recoveries. Just three of the nine refineries were completely idled, accounting for about 7% of Gulf Coast refining, compared to shut-ins of two-thirds of oil output.

Valero Energy Corp’s Meraux refinery on the Mississippi River east of New Orleans was restarting units on Friday, people familiar with the matter told Reuters. Valero also is preparing its St. Charles refinery to restart, the company has said.

Royal Dutch Shell’s Norco refinery was receiving limited power on Friday, and is planning to begin restarting in one to two weeks, according to company reports and people close to the company.

PBF Energy’s Chalmette refinery has restarted some units but has not resumed production, sources told Reuters.The state's two largest refineries - Marathon Petroleum’s 578,000 barrel per day (bpd) Garyville and Exxon Mobil Corp's 520,000 bpd Baton Rouge plant - have returned to operation, the companies said on Friday.

Exxon is operating its two gasoline-producing units at maximum capacity, said people familiar with plant operations. It has received 3 million barrels of crude from the U.S. Strategic Petroleum Reserve (SPR).

The hardest hit refinery, Phillips 66’s 255,600 bpd Alliance plant in Belle Chasse, faces months of repairs that could rival those needed after 2005’s Hurricane Katrina, sources familiar with the situation said.

It was continuing to pump water out of the refinery on Friday, the sources said. Phillips 66 had repaired a broken flood wall that allowed storm waters to enter the plant, a spokesperson said.

Two other refineries: Placid Refining's 75,000-bpd Port Allen refinery and Delek US Holdings' 80,000-bpd plant in Krotz Springs restarted early this week. Placid has received 300,000 barrels of crude oil from the SPR.

As MRC informed earlier, Royal Dutch Shell Plc, one of the largest operators in the Gulf of Mexico, declared force majeure on some oil deliveries due to damage from Hurricane Ida, which has crippled U.S. offshore oil production. More than three-quarters of the U.S. Gulf of Mexico's offshore oil output remained shut following Ida. Crude buyers said the full restart of production remained unclear due to extensive damage to various facilities. The hurricane was one of the most devastating for offshore producers since back-to-back storms in 2005 cut output for months.

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.
MRC