thyssenkrupp rebrands electrolyser JV ahead of possible IPO

MOSCOW (MRC) -- German industrial conglomerate thyssenkrupp AG is rebranding its chlor-alkali electrolysis joint venture with Italy's Industrie De Nora SpA ahead of a potential initial public offering (IPO) that would help finance further growth, said Renewablesnow.

Previously known as thyssenkrupp Uhde Chlorine Engineers, the business is now called thyssenkrupp Nucera. One of its specialities is the alkaline water electrolysis (AWE) technology for green hydrogen production, having more than 10 GW of electrolyser capacity installed to date. The JV generated revenues of EUR 319 million (USD 366m) in 2020/21 and targets a top line of between EUR 600 million and EUR 700 million by 2024/25.

As of December 31, 2021, the business’ order backlog for green hydrogen amounted to EUR 900 million, with two large projects included – a contract for a 2-GW-plus electrolysis plant at NEOM in Saudi Arabia and an order from Royal Dutch Shell tied to the 200-MW Hydrogen Holland I project in the port of Rotterdam.

“We are taking off from a strong position in the chlor-alkali market with best-in-class technology and a yearly gigawatt supply chain. It is our aim to become the number one technology leader for large-scale industrial green hydrogen production in the alkaline water electrolysis market,” said Denis Krude, CEO of Thyssenkrupp Nucera.

As announced previously, Thyssenkrupp plans a stock exchange listing for the particular business. Reuters quoted Volkmar Dinstuhl, CEO of Thyssenkrupp’s segment Multi Tracks, as saying today that an IPO of Thyssenkrupp Nucera could raise between EUR 500 million and EUR 600 million in proceeds.

The news agency also cited CEO Krude as saying that thyssenkrupp Nucera intends to invest EUR 200 million-300 million by 2024/25, including EUR 150 million-200 million in partnerships, production and smaller deals.

As per MRC, thyssenkrupp Uhde Thailand has been awarded a contract by a leading oleo and specialty chemicals producer in Asia for engineering services and proprietary equipment supply for an esterification plant. The plant will employ thyssenkrupp Uhde’s proprietary jet reactor technology and is designed for a batch size of 15 m3. Completion is planned within 2022. The main products are medium chain triglycerides used in the food and personal care industry.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

thyssenkrupp Uhde Chlorine Engineers offers world-leading technologies for high-efficiency electrolysis plants. The company, a Joint Venture with Industrie De Nora, has extensive in-depth knowledge in the engineering, procurement, and construction of electrochemical plants and a strong track record of more than 600 projects with a total rating of over 10 gigawatts already successfully installed. With its water electrolysis technology to produce green hydrogen, the company offers an innovative solution on an industrial scale for green value chains and an industry fueled by clean energy – a major step towards a climate-neutrality.
MRC

MOSCOW (MRC) -- The Abu Dhabi National Oil Company has activated business continuity plans to ensure continued supply of products to its local and international customers following an incident on its Mussafah fuel depot, said the company.

The company in an earlier statement that the incident at the fuel depot occurred at around 10:000 hours (06:00 GMT) on 17 January. The incident resulted in the outbreak of a fire and three workers were killed as a result, it said.

"We are working closely with the relevant authorities to determine the exact cause and a detailed investigation has commenced," ADNOC said. Yemen's Houthi rebels have claimed responsibility for the attack, which involved ballistic missiles and deployed armed drones, according to local media reports. The attack also resulted in a fire at Abu Dhabi’s main international airport, they said.

As per MRC, the Abu Dhabi National Oil Company (ADNOC) has signed of a strategic partnership with Borealis AG that confirms a USD6.2 B (AED22 B) investment agreement between the companies to build the fourth Borouge facility - Borouge 4 - at the polyolefin manufacturing complex in Ruwais, United Arab Emirates (UAE), which will produce 1.4 MM tons of polyethylene (PE) 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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
MRC

MOSCOW (MRC) - Oil prices rose on Monday with investors betting that global supply will remain tight, although restraint by major producers was partially offset by a rise in Libyan output, reported Reuters.

Brent crude settled up 42 cents, or 0.5%, to USD86.48 a barrel. Earlier in the session, the contract touched its highest price since Oct. 3, 2018, at USD86.71.

US West Texas Intermediate crude was up 53 cents, or 0.6%, at $84.35 after touching its highest price since Nov. 10 at USD84.78. Trade was subdued due to the US holiday honoring slain civil rights leader Martin Luther King Jr.

Frantic oil buying, driven by supply outages and signs the Omicron coronavirus variant will not be as disruptive to fuel demand as previously feared, has pushed some crude grades to multi-year highs, suggesting the rally in Brent futures could be sustained for a while longer, traders said.

"The bullish sentiment is continuing as (producer group) OPEC+ is not providing enough supply to meet strong global demand," said Fujitomi Securities analyst Toshitaka Tazawa.

The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, together known as OPEC+, are gradually relaxing output cuts implemented when demand collapsed in 2020. But many smaller producers cannot increase supply and others have been wary of pumping too much oil in case of renewed COVID-19 setbacks.

Meanwhile, Libya's total oil output is back to 1.2 million barrels per day (bpd), according to National Oil Corp. Libyan output was about 900,000 bpd last week owing to a blockade of western oilfields.

"Libya’s oil production had dropped to a good 700,000 bpd at the start of the year, which had played its part in the price rise," said Commerzbank analyst Carsten Fritsch.

Concerns over supply constraints outweighed the news of China's possible oil release from reserves, said Fujitomi's Tazawa. Sources told Reuters that China plans to release oil reserves around the Lunar New Year holidays between Jan. 31 and Feb. 6 as part of a plan coordinated by the United States to reduce global prices.

As MRC informed before, US commercial crude stocks fell 3.48 million barrels to 413.96 million barrels in the week ended Sept. 17, to more than 8% below the five-year average, Energy Information Administration data showed. Stocks were last lower Oct. 5, 2018.

We remind that in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.

We also remind that US crude oil production was expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, EIA said in a monthly report earlier last year, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC

MOSCOW (MRC) -- Arkema is set to expand its global elastomer capacity by 25% through an investment in its site in Serquigny, France, said the company.

This investment will enable increased production of its bio-based material made from renewable castor seeds, due to come onstream in mid-2023. The bio-based material has a carbon footprint that is up to 50% lower than traditionally produced elastomers, can be fully recycled, and will lower the water consumption of the site by 25% through process optimisation.

New capacity will produce highly specialised grades of material for growing demand in a range of applications due to its lightweight properties, including sports equipment, technical textiles, consumer goods such as smart phones, and use in medical equipment. Arkema will also continue to produce elastomer products at its plant in Birdsboro, Pennsylvania, US.

As per MRC, Arkema announces the proposed divestment of its epoxides business to Cargill, a leader in agricultural products and services. With this project, Arkema is pursuing the repositioning of its portfolio on its core businesses. Arkema produces bio-based and specialty epoxides in Blooming Prairie (MN, USA), used as additives or intermediates in the manufacture of lubricants, plastic additives and a wide variety of other applications. Part of Arkema’s Hydrogen Peroxide activity, this business has limited integration with the rest of the Group’s portfolio, generates sales of around US USD40 million and employs approximately 45 people.

As per MRC, Arkema is further increasing its fluoropolymer production capacities in Changshu, China, by 35% in 2022. The increase in capacity is scheduled to come on stream before the end of 2022, the company said in a statement. Financial and overall capacity details of the expansion project were not disclosed.

Arkema is one of the world's leading chemical manufacturers headquartered in Colombes (near Paris, France). Founded in 2004 as a result of the restructuring of the French oil company Total, Arkema, with a turnover of EUR6.5 billion, has operations in 40 countries, 10 research centers around the world, and 85 plants in Europe, North America and Asia.
MRC

MOSCOW (MRC) -- Brazilian petrochemical producer Braskem SA filed with the Securities and Exchange Commission on Friday for a share offering in which the oil company Petroleo Brasileiro SA (Petrobras) and Novonor will sell their stakes in the petrochemical company, reported Reuters.

The offering consists of two installments, in Brazil and in the United States, according to the filing. Petrobras and Novonor will sell 154.9 million class A preferred shares in Braskem, which may be represented by American depositary shares, totaling around 8 billion reais (USD1.45 billion), on the basis of Friday's closing price.

Earlier this month, Petrobras announced it was expecting to sell 100% of its stake by February. The oil company has a 36.1% stake in Braskem, while Novonor, formerly known as Odebrecht, holds 38.3%.

As MRC wrote previously, in August 2021, Petrobras hired JPMorgan Chase & Co as an advisor to sell its stake in the petrochemical company Braskem SA.

We remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC