Air Liquide 2021 net profit increases despite sharp jump in energy prices

Air Liquide 2021 net profit increases despite sharp jump in energy prices

MOSCOW (MRC) -- Air Liquide SA said Wednesday that 2021 net profit rose despite facing a sharp jump in energy prices, according to MarketWatch.

Net profit for the year was EUR2.57 billion (USD2.92 billion), compared with EUR2.44 billion in 2020, the industrial-gases company said.

Group revenue came to EUR23.34 billion, 14% higher than the previous year, after activities improved markedly across all areas, Air Liquide said.

Net profit was a touch above of expectations of EUR2.56 billion, while revenue beat views of EUR23.13 billion, according to analysts' estimates provided by the company.

Air Liquide said it faced a sharp and sustained rise in energy prices, though it improved its operating margin by adapting its pricing policy alongside EUR430 million in efficiencies.

"The group achieved an excellent performance, in spite of the ongoing pandemic and the strong inflationary pressures mainly related to the sharp increase in energy prices in the second half," Chief Executive Benoit Potier said.

For 2022, the Paris-based company said it is confident it will further increase its operating margin, and deliver recurring net profit growth, at constant exchange rates, assuming no significant economic disruption.

As MRC wrote earlier, Air Liquide, BASF and Shell are joining Calpine, Chevron, Dow, ExxonMobil, INEOS, Linde, LyondellBasell, Marathon Petroleum, NRG Energy, Phillips 66 and Valero to collectively evaluate and advance emissions reduction efforts in and around the Houston industrial area. Three additional companies have announced their support for exploring the implementation of large-scale carbon capture and storage (CCS) technology in and around the Houston industrial area.

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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.
MRC

Fortum to supply renewable energy to Borealis operations in Finland under new long-term agreement

Fortum to supply renewable energy to Borealis operations in Finland under new long-term agreement

MOSCOW (MRC) -- Borealis (Vienna), one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals and fertilizers; and Fortum, an energy company and the third largest CO?-free power producer in Europe, have signed a long-term power purchase agreement (PPA) to source renewable energy from two onshore wind farms to be built in Finland, said Borealis on its site.

As of mid-2024, the new wind farms, majority-owned and operated by Fortum, will supply over 800 gigawatt hours (GWh) of renewable power to Borealis production operations in Porvoo, Finland, over the course of eight years. Both Borealis and Fortum move closer to realising their climate neutrality goals thanks to the scale and duration of this agreement.

The new long-term PPA involves the sourcing of electricity from two onshore wind parks to be built approximately 400 km northwest of Borealis production operations in Porvoo. Together, the two parks, Pjelax-Bole and Kristinestad Norr, will consist of 56 wind turbines with an annual power generation of approximately 1.1 terawatt hours (TWh). Both farms will be majority-owned and operated by Fortum Oy. Construction started in January 2022, with operations anticipated to begin by the middle of 2024 at the latest. Borealis has secured around 10% of the total output of the two wind farms for an eight-year period upon the project’s commissioning in 2024. The over 800 GWh of renewable power supplied within the scope of this PPA is roughly equivalent to the average annual electricity consumption of 8000 Finnish households.

Borealis and Fortum share the conviction that industry decarbonisation can only be achieved by working together. Fortum is partnering with its industry and infrastructure clients to develop smart, cost-efficient, and sustainable solutions to energy supply. On one level, the new Borealis and Fortum PPA is providing a significant boost to the Finnish chemical industry, which aims to achieve carbon neutrality by 2045. On another level, the PPA marks a milestone for Borealis: once the new Fortum project comes online in 2024, the Borealis Group will have reached the 20% mark in its aim to source at least 50% of the electricity consumed in its own production operations from renewable sources by the year 2030. Moreover, the renewable electricity generated within the framework of this PPA will reduce the Scope 2 emissions (CO2 emissions resulting from the generation of purchased electricity consumed by the company) at its Finnish operations by 28,000 tons /year, or a total of 224 kilotonnes Scope 2 emissions over the eight-year duration of the PPA.

As MRC reported earlier, Borealis has delayed the start-up of a new, world-scale propane dehydrogenation (PDH) plant at its existing production site at Kallo, Belgium, which is the company's biggest investment in Europe, until Q3 2023, citing Covid-19. The plant in Kallo in the port of Antwerp was previously targeted to begin operations by the end of next 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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.

Borealis is owned by OMV AG and Mubadala Investment Co., the Abu Dhabi state investment company. Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries.
MRC

Chevron Phillips plans to invest in Infinity Recycling circular plastics fund

Chevron Phillips plans to invest in Infinity Recycling circular plastics fund

MOSCOW (MRC) -- Chevron Phillips Chemical (CPChem) is investing in Infinity Recycling’s circular plastics fund, said Hydrocarbonprocessing.

The fund, registered in Luxembourg, will invest in advanced recycling businesses, which convert plastic waste back into virgin grade feedstock for the manufacturing of new products, focusing first in Europe with the ambition to expand globally.

Recycling plastic waste enables valuable materials to be reused instead of ending up in a landfill or unintended places in the environment. Recycling is an important part of the solution to create a circular economy for plastics, together with design for circularity, collecting and sorting infrastructures, consumer engagement and guiding policies. Collaboration across the entire value chain is needed to solve the plastic waste challenge.

Infinity Recycling’s circular plastics fund aims to accelerate the transition from a linear to a circular plastic economy by investing in advanced recycling technologies. Complementary to mechanical recycling, advanced recycling technologies are expected to play a key role in increasing recycling rates needed for the development of a sustainable, circular economy for plastics.

Benny Mermans, vice president of sustainability at CPChem said: “Our company is committed to ensuring plastics continue to deliver much needed societal benefits while also producing our life-enriching products sustainably, leaving behind the lightest footprint and enabling others to do so as well. Plastic waste is a valuable resource and keeping it in the loop as long as possible will contribute to the creation of a circular economy for plastics. Through this investment in Infinity Recycling’s fund, our company aims to accelerate the development of the most promising advanced recycling technologies, bridge gaps in the value chain and prove the complementarity of mechanical and advanced recycling, all important steps to accelerate change for a sustainable future."

As per MRC, Chevron Phillips Chemical announced today plans to expand its propylene business with a final investment decision for a new C3 splitter unit. The unit’s location will be in Baytown, Texas, within the company’s Cedar Bayou facility. Its expected capacity is 1 billion lbs./year with targeted start up in 2023. The company chose S&B Engineers and Constructors to engineer, procure and build the project. Site construction activities will commence in January 2022.

As MRC informed previously, in March 2018, Chevron Phillips Chemical, part of Chevron Corp, successfully introduced feedstock and commenced operations of a new ethane cracker at its Cedar Bayou facility in Baytown, Texas. At peak production, the unit will produce 1.5 million metric tons/3.3 billion lbs. per year. This unit is one of the largest and most energy efficient crackers in the world. In September 2017, the company announced the successful commissioning and start-up of two new Marlex polyethylene (PE) units in Old Ocean, Texas, based on the company’s proprietary MarTech technologies. Together, these assets form the bulk of the company’s US Gulf Coast Petrochemicals Project (USGCPP), which was first announced in 2011.

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

Solvay to license technology to Hubei Sanning Chemical for its mega plant fully dedicated to caprolactam production

Solvay to license technology to Hubei Sanning Chemical for its mega plant fully dedicated to caprolactam production

MOCOW (MRC) -- Solvay has entered into an agreement to license its leading-edge hydrogen peroxide (H2O2) technology to Hubei Sanning Chemical Industry Co. Ltd. for its 500 kilotons per year caprolactam facility with a planned launch by end of 2023, as per the company's press release.

“This is the first licensing agreement Solvay has allocated for its proprietary hydrogen peroxide mega scale high productivity process technology in China,” said Peter Browning, president of Solvay Peroxides global business unit. “The licensing model provides a process design package for the construction of the H2O2 mega plant by Hubei Sanning Chemical alongside its new caprolactam facility, with access to Solvay’s operating experience and range of services to ensure optimized and reliable H2O2 plant operation.”

Solvay is the leading global producer and supplier of hydrogen peroxide solutions and a technology leader in the hydrogen peroxide production process operating several H2O2 mega plants. Hubei Sanning Chemical will install a single H2O2 production line providing a capacity of 200 kilotons per year to be utilized entirely as a raw material in the production of caprolactam, the monomer used to manufacture nylon 6 (PA6) products such as yarns and filaments.

Solvay will also provide Hubei Sanning Chemical with its proprietary chemicals for the anthraquinone process, which ensure a reliable and consistent high productivity H2O2 process.

“We are honored to be awarded Solvay’s first license for its world-renowned hydrogen peroxide production technology in China,” said Wanqing Li, chairman of Hubei Sanning Chemical Industry. “The new H2O2 mega plant in China and Solvay’s collaboration will be key for us to build the new project for caprolactam, PA6 and downstream products.”

Nylon 6 is a versatile polymer used in a variety of industries such as automotive, electrical and electronics, and when extruded as fibers is extensively used in the textile industry for clothing and home furnishings and for nets in the fishing industry.

As MRC reported earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

We remind that BASF shut down an unspecified unit at its 420,000-metric ton/year steam cracker site in Ludwigshafen, Germany, due to a technical defect. Unscheduled flaring started on 13 January, 2021, at the northern part of the Ludwigshafen site and was expected to last until 17 January, 2021.

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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.

Founded in 1969, Hubei Sanning Chemical Co., Ltd is one of China’s biggest manufacturers of agricultural chemicals, fine chemicals and petrochemicals located in Yichang City in western Hubei province. The company’s diverse range of products include coal-derived chemicals, ammonia, nitrogen and potash fertilizers, sulphuric acid, phosphoric acid, nitric acid, hydrochloric acid and lactam-derived products. Since 2007 it operates as a subsidiary of Shanxi Jincheng Anthracite Mining Group Co., Ltd. with 5,500 employees which includes 500 R&I technicians. The company delivered 12.247 billion RMB in sales in 2020.

Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 24,100 employees in 64 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet plan crafted around three pillars: protecting the climate, preserving resources and fostering better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities.
MRC

India to ban single-use plastic items from 1 July 2022

MOSCOW (MRC) --The Government of India will be banning harmful single-use plastic items from 1st July 2022, according to Sanatan Prabhat.

The Central Pollution Control Board (CPCB) of India has notified all the organisations involved in the manufacture, import, stocking, distribution, sale and use of these items. In this notice, they have been instructed to make the required preparations for the ban of these single-use plastic items before 30th June.

In this notice, it has also been warned that those breaking the rules will be strictly punished. This includes punishments like forfeit of the products, fines for harming the environment or banning the business related to that product.

Thus, the following items will be banned: Earbuds with plastic sticks, plastic sticks for balloons, plastic flags, candy sticks, ice-cream sticks, polystyrene (thermocol) for decoration; plates, cups, glasses, cutlery such as forks, spoons, knives, straw, trays; wrapping or packaging films around sweet boxes, invitation cards, and cigarette packets, plastic or PVC banners less than 100 micron, stirrers, etc.

We remind that, as MRC wrote previously, GAIL (India) Ltd, India’s principal gas transmission and marketing company under the Ministry of Petroleum and Natural Gas, is on track to start up its propane dehydrogenation (PDH) facility and polypropylene (PP) plant in Usar, Maharashtra by 2024. GAIL has recently chosen Lummus Technology’s CATOFIN process and Clariant’s tailor-made catalysts for India’s first PDH plant. Its upcoming 500 kiloton per annum PDH facility in Usar will be integrated with the downstream PP unit. The cost of PDH-PP project is estimated at USD1.2 B.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.
MRC