Covestro and EnBW sign long-term purchase agreement for solar power

Covestro and EnBW sign long-term purchase agreement for solar power

MOSCOW (MRC) -- The materials manufacturer Covestro and the energy company EnBW have signed a long-term industrial customer supply agreement (Corporate Power Purchase Agreement, PPA) for solar power, said the company.

Covestro has thus secured 63 megawatts (MW) of power from the 187 MW EnBW solar park “Weesow-Willmersdorf” in Brandenburg. The system operated by EnBW is the largest solar park in Germany and was implemented without state EEG funding. The agreement with Covestro is the first PPA for the project. From the beginning of 2022, solar power will be used for 15 years at the Covestro sites in Dormagen and Krefeld-Uerdingen. The company will primarily use the renewable energy there to produce more sustainable, mass-balanced plastics, which are manufactured using the so-called drop-in process using alternative raw materials. These include mass balanced polycarbonates and mass balanced thermoplastic polyurethanes.

The conversion of the energy supply to renewable energies is a central pillar in Covestro’s strategy. The company is completely geared towards the circular economy and wants to make its production climate-neutral in the long term. “With the purchase of solar power from the EnBW park, we are underlining our claim to play a pioneering role on the way to a climate-neutral future and are once again sending out a signal for the expansion of renewable energies in Germany. Because for the climate-neutral transformation of industry, we need large amounts of renewable energies at internationally competitive prices,” said Dr. Klaus Schafer, Covestro’s Chief Technology Officer.

The EnBW solar park near Berlin with its 465,000 solar modules has been fully connected to the grid since March 2021. “We have been campaigning for a long time to ensure that renewable energies are marketable even without government support. PPAs are an important instrument for operating subsidy-free systems economically. At the same time, as a central instrument of the energy transition, they help the consumer to achieve climate targets quickly and efficiently. This makes PPAs particularly attractive for companies with energy-intensive production. We are pleased to be able to support Covestro’s production with our solar energy, ”explains Dr. Georg Stamatelopoulos, Chief Operating Officer Generation & Trading at EnBW.

A crucial prerequisite for the production of more sustainable plastics is the use of renewable energies. Covestro began converting its energy supply to renewable energies at an early stage and has been building a portfolio of various PPAs in Germany, Belgium and China since 2019. The agreement with EnBW is the first PPA for the purchase of solar power in Europe.

We remind that Covestro closed the sale of its European polycarbonates (PC) sheets business to the Munich-based Serafin Group effective January 2, 2020. This includes key management and sales functions throughout Europe as well as production sites in Belgium and Italy.

According to MRC's ScanPlast report, Russia's overall consumption of polycarbonate (PC) granules (excluding imports and exports to/from Belarus) decreased in January-October 2021 by 15% to 67,300 tonne from 79,500 tonnes a year earlier.

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc. With 2020 sales of EUR 10.7 billion, Covestro has 33 production sites worldwide and employs approximately 16,500 people (calculated as full-time equivalents).
MRC

INEOS partner with Plastic Energy for recycling project at Grangemouth facility

INEOS partner with Plastic Energy for recycling project at Grangemouth facility

MOSCOW (MRC) -- INEOS Olefins & Polymers Europe and Plastic Energy have announced that they are working together on a trial to convert ‘hard to recycle plastic material’, such as flexible packaging, back into ‘food-grade’ quality plastic for use in food packaging, and other high hygiene standard applications, according to Hydrocarbonprocessing.

The companies have come together to launch a preliminary trial in Q1-2022 at the INEOS Grangemouth facility in Scotland. This preliminary trial and the evolution of the policy environment in the UK will inform the development of a large-scale advanced recycling plant, which aims to be the first of its kind in the UK.

Advanced Recycling creates a closed-loop system for plastics management, helps reduce landfill, prevents plastic from ending up in the environment, and reduces the use of fossil derived raw materials. The circular re-use of ‘end of life’ plastic is a further step to reduce total emissions.

INEOS Olefins & Polymers Europe and Plastic Energy have a shared goal to create a world class circular economy value chain in advanced recycling, driving circularity to create the next generation of food-grade recycled content packaging.

Plastic Energy uses its advanced recycling process to convert post-consumer plastic, otherwise destined for landfill or incineration, through a pyrolysis process, into a liquid raw material (called TACOIL) for re-use in the next generation of plastic production. TACOIL is used as a replacement for fossil derived materials, to make food-grade and/or medical grade plastics.

The trial will take place in partnership with Petroineos at Grangemouth. It will use the existing refinery operations to process the TACOIL supplied by Plastic Energy, which already operate two recycling plants in Spain.

Plastic Energy’s technology allows for the improvement in circularity of highly demanding labeling, and packaging applications, such as chocolate bars, snacks and biscuits, pet and dry food. The new project is complementary to the existing use of mechanically recycled plastic in INEOS Recycl-IN range of products. Petroineos will supply the recycled raw material to INEOS Olefins & Polymers Europe to be transformed into Certified Circular plastic with the identical properties expected of conventional plastics made from oil and gas.

The partners recognize the need for collaboration to make such innovations sustainable at scale - in the spirit of “SDG#17 Partnerships for the Goals”, each partner contributes complementary skills and expertise that together create the circular value chain.

As MRC informed previously, earlier this month, INEOS FPS announced plans to deploy innovative Artificial Intelligence (AI)-driven optimisation technology at its Kinneil Terminal in Grangemouth that will deliver further carbon emissions reductions from its operations.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,047,100 tonnes in the first ten months of 2021, up by 17% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,226,530 tonnes in January-October 2021, up by 26% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding stat-copolymers of propylene (PP random copolymers) decreased significantly.

INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC

Gazprom approves the program for the reconstruction of gas processing facilities for 2022-2026

Gazprom approves the program for the reconstruction of gas processing facilities for 2022-2026

MOSCOW (MRC) -- The Gazprom Management Committee has approved a comprehensive program for the reconstruction and technical re-equipment of gas and liquid hydrocarbons processing facilities for 2022–2026, the holding said in a statement.

The document was adopted in the development of the current program for 2021-2025. The purpose of the document is to ensure continued growth in the efficiency of Gazprom's refining complex. Details of the program were not disclosed.

The Management Board also took note of the information on the operation of the technological lines of the Amur Gas Processing Plant (GPP) and the progress of the GPP construction.

It was noted that the overall status of the project is 82.2%. In particular, start-up and commissioning works are continuing on the third technological line, the installation of large-sized equipment has been completed on the fourth.

On the fifth line, large-sized equipment for gas separation has been installed, assembly of metal structures and welding of pipelines continues. On the sixth stage, the assembly of metal structures is underway, the foundation work is being completed.

Gazprom's main processing facilities are the Astrakhan Gas Processing Plant (GPP), the Orenburg Gas Processing and Helium Plant, the Sosnogorsk Gas Processing Plant, the Surgut Condensate Stabilization Plant and the Urengoi Plant for the preparation of condensate for transportation. The facilities under construction include the Amur Gas Processing Plant and the Ethane-Containing Gas Processing Complex in the Ust-Luga settlement.

We remind, that in December 2020, SIBUR Holding, Russia’s leading petrochemicals company and one of the most rapidly growing petrochemicals businesses globally, and China Petroleum & Chemical Corporation (Sinopec), China’s leading energy and chemical company, have closed the deal to set up a joint venture (JV) at the Amur Gas Chemical Complex after obtaining all the necessary approvals from the regulators of both countries. SIBUR and Sinopec will hold interest in the JV in the amount of 60% and 40%, respectively.

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 2,047,100 tonnes in the first ten months of 2021, up by 17% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,226,530 tonnes in January-October 2021, up by 26% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding stat-copolymers of propylene (PP random copolymers) decreased significantly.
MRC

Shell Catalysts & Technologies helps to build and erect new crude distiller column

Shell Catalysts & Technologies helps to build and erect new crude distiller column

MOSCOW (MRC) -- Raizen Argentina’s refinery in Buenos Aires, working with Shell Catalysts & Technologies (SC&T) and more than 25 Argentine companies, has built and erected a new crude distiller column in November 2021, according to Hydrocarbonprocessing.

It is part of a project that strategically positions the refinery for the future in relation to the processing of unconventional crude, such as that from the Vaca Muerta basin. It also improves the flexibility of the refinery and allows it to adapt more easily to current market conditions.

The new crude distiller column measures almost 50 meters high and six meters in diameter, weighing more than 245 tons. It took seven days to transfer the column from the fabrication site to the refinery, travelling more than 60 kilometers in a special, 77 meters long truck.

The new crude distiller column and the revamped side stripper and drier columns should allow uninterrupted operation throughout its target cycle length. SC&T developed the new crude distiller column design specifications and performed adequacy checks for the side stripper and drier columns. SC&T also provided the internals design consisting of Shell Calming Section Trays, Structured packing and Conventional Downcomer trays.

At project completion, the new crude distiller column will be integrated with other existing equipment in the Crude Distiller 5 unit. Although this is unconventional, the team was able to overcome some design challenges and use a significant portion of the existing assets. This enables Raizen Argentina to maintain their operational efficiency and productivity along with a wider operating range.

This project enables the refinery’s Crude Distiller 5 unit to process shale oil from the Vaca Muerta basin. This allows Raizen Argentina to optimize its crude diet from a strategy and economic standpoint. The unit aims to process maximum throughput of light API shale oil while maintaining the capability of processing also mid API range crude oil.

As MRC informed previously, Royal Dutch Shell plc. said in November that its petrochemical complex of several billion dollars in Western Pennsylvania was about 70% complete and in the process to enter service in the early 2020s. The plant's costs are estimated to be USD6-USD10 billion, where ethane will be transformed into plastic feedstock. The facility is equipped to produce 1.5 million metric tons per year (mmty) of ethylene and 1.6 mmty of polyethylene (PE), two important constituents of plastics.

Ethylene and propylene are feedstocks for producing PE and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,047,100 tonnes in the first ten months of 2021, up by 17% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,226,530 tonnes in January-October 2021, up by 26% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding stat-copolymers of propylene (PP random copolymers) decreased significantly.

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.
MRC

LDPE prices began to decrease in Russia after a long period of growth

LDPE prices began to decrease in Russia after a long period of growth

MOSCOW (MRC) - After more than a year of constant growth in prices, low density polyethylene (LDPE) prices began to go down in Russia. Weak demand and oversupply led to a significant decrease in spot prices in the first half of December, according to the ICIS-MRC Price Report.

At the beginning of the year, the growth in prices for polyethylene in the Russian market was due to a similar situation in the foreign markets. The increase in polyethylene prices was a result of the scheduled shutdowns of several domestic producers In the summer and autumn months.

The production turnarounds finished in mid-October, and already from mid-November, the market began to be oversupplied. Spot LDPE prices began to decrease in December, and this week the dynamics of price decline intensified.

Supply of PE increased noticeably in the market in November. The scheduled shutdowns of Russian manufacturers have ended, and imports from neighboring countries have also increased.

Whereas the demand in the spot market decreased due to the record high level of prices. The situation did not change in December. Many large and medium-sized converters have covered their needs for LDPE within the annual contracts, and do not actually make purchases in the spot market.

Smaller converters had problems with working capital. Demand for finished products also has weakened. Demand for polyethylene was also affected by the factor of the end of the quarter.

As a result, a significant increase in the supply of LDPE in the spot market and low demand led to a drop in prices.
Prices of 108 grade PE had dropped to Rb154,000-156,000/tonne CPT Moscow, including VAT, by mid-December.
The prices of 158 LDPE from some suppliers approached the same level.


MRC