Covestro expands its range of circular raw materials and now offers renewable TDI for flexible PU foam

MOSCOW (MRC) -- Covestro is again expanding its range of more circular raw materials and now offers customers in various regions renewable toluene diisocyanate (TDI) which provides a significant reduction of the CO2 footprint from cradle to factory gate, with the same high quality as fossil-based products, according to SpecialChem.

Covestro manufactures the renewable TDI both in Dormagen, Germany, and in Caojing, China, using the mass balance method. Both sites are certified according to the ISCC PLUS standard.

For Covestro, offering renewable TDI via mass balance is only a logical next step of making this important chemical raw material even more sustainable, as Dr. Klaus Schafer, chief technology officer of Covestro, explains, "Already years ago, our unique gas phase technology was a milestone towards more energy efficiency in the production of TDI.”

"With our shift to mass-balanced products, we are helping customers in various industries achieve their climate targets and drive the transition to a circular economy," says Sucheta Govil, chief commercial officer of Covestro.

Flexible PU foams made with TDI and long-chain polyols are important materials in the manufacture of seat cushions and mattresses. Renewable TDI meets demands for more sustainable production while ensuring the good quality, optimal comfort and high breathability known from fossil-based TDI.

It also meets the expectations of the automotive industry, which is looking for alternative raw materials for car seat cushions with a lower carbon footprint.

Last year, Covestro signed its first commercial supply contract with Sinomax, a global manufacturer and distributor of polyurethane comfort products based in China. Both companies share a clear commitment toward the circular economy, and Sinomax wants to be the first customer to use the new TDI to reduce its CO2 emissions.

As MRC informed before, in April 2021, DSM completed the sale of the resins & functional materials businesses to Covestro for EUR1.6 billion (USD1.9 billion), including EUR1.4 billion in cash.

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 estimated consumption of PC granules (excluding imports and exports to/from Belarus) totalled about 82,300 tonnes in 2021, down by 8% year on year (89,200 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

MOSCOW (MRC) -- Two projects and 12 facilities at Hexion Inc. were named Responsible Care® award winners by the American Chemistry Council (ACC) and honored for excellence in waste reduction, energy efficiency, and overall safety performance, said the company.

"The latest recognition from the ACC reflects how our associates are leveraging our strategic sustainability initiatives to steadily guide our business and serve our global customers,” said Craig Rogerson, Chairman, President and Chief Executive Officer. “We remain committed to operating our sites safely and in a sustainable manner."

Hexion was recognized in the following categories for its achievements: Waste Minimization, Reuse and Recycling – Hexion’s Sheboygan, WI site received an ACC Award with Exceptional Merit. By utilizing Six Sigma planning, the manufacturing facility reduced distillate water disposal volumes by 90 percent and eliminated nearly 90 truck shipments of wastewater annually from the roadways. Process piping and filtration modifications were made in the plant, and testing proved that reuse of the distillate stream was possible without negative process or product quality impacts.

Energy Efficiency – Hexion’s Geismar, LA facility significantly reduced the electricity consumed by its continuously operating production units by strategically revamping its cooling processes and making strategic investments in its infrastructure. This included installing variable frequency drives and automated controls logic on the cooling pumps to improve its cooling water tower electric efficiency.

As per MRC, Hexion is strategically strengthening its manufacturing footprint in support of its ArmorBuilt Fire Protection product through an expansion of its Missoula, Montana site. To meet the continued strong demand, Hexion previously announced two capacity expansions at its Portland, Oregon manufacturing site in 2021. The Missoula site expansion will enable Hexion to significantly increase its capacity to serve customers more easily in the Western United States and beyond, which are areas prone to wildfires. The new capacity is expected to come online in fourth quarter of 2022.

As previously announced, Hexion is working closely with one of the largest wood pole producers in North America to make ArmorBuilt wrap the specified solution for Pacific Gas & Electric Company to protect their utility pole infrastructure in wildfire prone areas. Hexion also continues to strategically expand its manufacturing capabilities for other adhesive applications around the globe, such as the expansion of its Brimbank, Australia, site.

We remind, Hexion Holdings Corporation announced that it has completed the sale of its epoxy-based Coatings and Composite businesses, which includes the epoxy specialty resins and base epoxy resins and intermediates product lines for approximately USD1.2 billion to Westlake Chemical Corporation.

Based in Columbus, Ohio, Hexion Inc. is a global leader in thermoset resins. Hexion Inc. serves the global adhesive, coatings, and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries.
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MOSCOW (MRC) -- ExxonMobil announced that construction of the new linear alpha olefins (LAO) manufacturing unit at its Baytown, Texas, integrated petrochemical complex is progressing and targeting commercial start up in mid-2023, according to Hydrocarbonprocessing.

When fully operational, the new facility will have the capacity to produce approximately 350,000 metric tons of LAO annually.

ExxonMobil will manufacture 10 high-purity LAO products at the site and market the new offering under the ELEVEXX brand name. Extremely diverse, LAO molecules are used in a broad range of applications, including in plastic packaging, high-performing engine and industrial oils, and as building blocks for surfactants and other specialty chemicals.

The new manufacturing facility will feature the latest quality control technology, including in-line analyzers engineered to assess product quality and purity in real time, helping to maximize finished LAO molecule consistency and supply reliability.

As MRC wrote before, KBR and ExxonMobil Catalysts and Licensing will collaborate to bring significant advancements to propane dehydrogenation (PDH) technology. Under the collaboration, ExxonMobil's new proprietary catalyst technology will be combined with KBR's proprietary K-PRO PDH technology to convert propane into propylene. Enabled by the superior performance of ExxonMobil's new catalyst, the combined technology solution could offer financial savings compared to PDH technologies currently available.

We remind that in February, 2022, ExxonMobil and SABIC successful started up Gulf Coast Growth Ventures world-scale manufacturing facility in San Patricio County, Texas. The new facility will produce materials used in packaging, agricultural film, construction materials, clothing, and automotive coolants. The operation includes a 1.8 MM metric tpy ethane steam cracker, two polyethylene (PE) units capable of producing up to 1.3 MM metric tpy, and a monoethylene glycol (MEG) unit with a capacity of 1.1 MM metric tpy.

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.

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) -- Amidst the ongoing conflict between Russia and Ukraine in Eastern Europe, key industry players are releasing announcements regarding their stand on this topic. From taking firm actions such as retracting services to provide humanitarian resources, there is a lot happening around the globe, according to SpecialChem.

In this curated piece, get a clear understanding on plastic additives industry’s take and the measures they are adopting that will alter the market trends and developments moving forward.

Clariant announced that it will suspend business with Russia in response to the Russian state’s intolerable acts of violence in Ukraine with immediate effect. Clariant’s operations in Russia include a sales office and a laboratory in Moscow and contribute approximately 2% to the company’s annual sales.

Honeywell has substantially suspended sales, distribution and service activities in Russia and Belarus. The company prioritizes the safety and security of the employees and partners in the region and responding to their immediate needs.

Solvay has decided to suspend its operations and new investments in Russia. Further, Solvay will suspend dividend payments from Rusvinyl, an independent 50:50 joint venture in Russia.

Effective immediately, LyondellBasell will not enter into any new business transactions or relationships with Russian state-owned entities. LyondellBasell also intend to discontinue business relationships with Russian state-owned entities to the extent legally possible. The company is in the process of assessing how this will affect the operations, including feedstocks, utilities, supply chain providers, and customers. Additionally, they are complying with all US and international sanctions which have been put into place because of this crisis.

ExxonMobil discontinues operations and developing steps to exit the Sakhalin-1 venture. The company’s operations in Sakhalin-1 project was on behalf of an international consortium of Japanese, Indian and Russian companies. The process to discontinue operations will be carefully managed and closely coordinated with the co-venturers to ensure it is executed safely.

As MRC wrote earlier, in July, 2021, Neste and LyondellBasell announced a long-term commercial agreement under which LyondellBasell will source Neste RE, a feedstock from Neste that has been produced from 100% renewable feedstock from bio-based sources, such as waste and residue oils and fats. This feedstock will be processed through the cracker at LyondellBasell’s Wesseling, Germany, plant into polymers and sold under the CirculenRenew brand name.

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

MOSCOW (MRC) -- Abu Dhabi National Oil Company (ADNOC), Intercontinental Exchange (ICE) and partners in ICE Futures Abu Dhabi (IFAD) have officially celebrated the first anniversary of trading of the Murban Futures Contract on the IFAD commodities exchange, said the company.

IFAD began operations on 29 March 2021 and during its first year, the equivalent of around 1.5 billion barrels of Abu Dhabi’s flagship lower-carbon Murban crude oil was traded on the exchange. IFAD has attracted over 90 market participants and Murban is now more widely available to both physical purchasers of crude oil and financial market participants around the world, reinforcing the United Arab Emirate’s (UAE) role as a reliable global energy supplier.

The introduction of the Murban Futures Contract was backed by ICE, ADNOC and nine of the world’s largest energy companies who joined IFAD as founding partners; BP, GS Caltex, INPEX, ENEOS, PetroChina, PTT, Shell, TotalEnergies and Vitol.

The IFAD exchange situated in ADGM capitilizes on the growing demand for Murban crude oil, particularly from markets in Asia where Murban is popular with many longstanding customers. It is located between Asian, European and United States (U.S.) trading time-zones, allowing Murban to be traded at least 22 hours of each trading day.

The continual growth of the trading ecosystem at Abu Dhabi Global Market (ADGM), including the establishment of ADNOC Global Trading, ADNOC Trading and the opening of trading offices for both India’s Reliance Industries and Thailand’s PTT, signals the growing importance of Abu Dhabi as a trading hub.

Following the launch of IFAD, Murban is freely traded, offering crude customers increased access, better price transparency, and flexibilty to hedge and manage risks. Traded alongside Brent and West Texas Intermediate (WTI) crudes, Murban is well-positioned to act as an important price marker for crude oil. ICE Murban Futures are physically delivered contracts, with one futures contract equating to 1,000 barrels of Murban crude oil delivered from the ADNOC Terminal located in Fujairah, on the East coast of the UAE.

Murban is a light, sweet crude grade that is unique to the UAE, with consistent and stable production volumes, large number of international buyers, and numerous long-term concession and production partners. ADNOC’s flagship crude has a carbon intensity less than half the industry average, positioning it in the market as a lower carbon crude oil when compared to other crude grades.

Discovered in 1958, Murban has played a pivotal role in enabling the UAE’s economic growth and development. Production capacity of Murban is over 2 million barrels per day and it accounts for around 50% of the UAE’s total production capacity. ADNOC plans to increase the production capacity of Murban to more than 2.5 million barrels per day by 2030 as it expands its crude oil production capacity to 5 million barrels of crude per day.

As per 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. 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.

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.


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