BASF enters power agreements for clean energy supply of more than 20 BASF sites across the United States

BASF is committed to renewable energy solutions to power its sites across the United States and has entered into virtual power purchase agreements (VPPAs) for wind and solar power totaling 250 megawatts (MW), said Hydrocarbonprocessing.

They are designed to offset the carbon-intensive grid-supplied electricity being used at more than 20 of BASF’s manufacturing sites in several states across the country, from Texas to Michigan. “Renewable energy is an essential tool to reach BASF’s ambitious goal of net zero emissions by 2050,” said Michael Heinz, Member of the Board of Executive Directors, BASF SE and Chairman and CEO of BASF Corporation. "We are committed to further improving our energy footprint in the region and we are eager to drive the energy transition for chemical manufacturing in North America."

The combined agreements for the output of 250 MW of renewable generation capacity will result in the purchase of more than 660,000 megawatt hours (MWh) of electricity per year – the equivalent of electricity consumed by more than 90,000 average U.S. households. Based on EPA estimates, the VPPAs will offset more than 472,500 metric tons of CO2 emissions annually.

With these agreements in place, the share of renewable energy in BASF’s total North American electricity consumption will rise to more than 25%. “These agreements help us reach our clean energy goals in areas where the local electric utility does not supply adequate renewable power,” said Tobias Dratt, President, BASF North America. “At the same time, our financial commitment enables the realization of large solar and wind power projects and adds clean energy to the grid."

To realize its ambitious emission goals, BASF is collaborating with various partners who are driving the sustainable change of the energy sector. The chemical company will purchase 100 MW of power generated by Dawn Solar. An additional 150 MW of renewable energy capacity will be added through transactions with EDF Energy Services. Last year, a collaboration with EDF Energy Services added 35 MW of wind capacity to the energy mix for BASF’s manufacturing sites in Freeport and Pasadena, Texas.

In another joint project with EDF Renewables, BASF’s property in Toms River became home to New Jersey’s largest solar project and the largest solar project built on a Superfund site in the United States. BASF aims to reduce its greenhouse gas emissions by 25% compared with 2018 by 2030 and achieve net-zero emissions by 2050. One important lever to bring down emissions is to replace fossil-based electricity with fossil-free electricity. BASF aims to secure the required amounts of renewable power it needs through a “make and buy” approach.

We remind, BASF Coatings (Guangdong) Co. (BCG) has expanded the production capacity of automotive refinish coatings at its coatings site in Jiangmen to 30,000 tonnes/year. The investment is a response to China’s rising demand of the material.
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Corpus Christi Polymers LLC has awarded Worley construction management and general services contracts, said Hydrocarbonengineering.

The scope of the construction management contract includes Corpus Christi’s new polyethylene terephthalate (PET) and purified tereph-thalic acid (PTA) facilities in Corpus Christi, Texas, US. The scope of the general services contract includes providing support to the installation and maintenance of the construction of temporary facilities.

The contracts will be executed by Worley’s field services team based in Houston, Texas. “We are pleased to support the installation of these facilities enabling Corpus Christi to produce products with enhanced durability and re-cyclability, in line with our purpose of delivering a more sustainable world.” said Chris Ashton, Chief Executive Officer of Worley.

As per MRC, Worley has been awarded a contract by Heartwell Renewables LLC, a joint venture between The Love’s Family of Companies and Cargill, for a greenfield renewable fuels plant in Hastings, Nebraska. The new plant will produce an estimated 80 MM gallons (around 303 MM liters) of renewable diesel per year from feedstocks such as vegetable oils and tallow.
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In light of recent developments and news reports about alleged malpractices at one of its contractors at the new Propane Dehydrogenation (PDH) construction site at Kallo, Belgium, Borealis has decided to declare a three day stand-still for its Kallo PDH construction site and to suspend the contract with IREM-Ponticelli, the contractor responsible for the piping-mechanical works for the construction of the new PDH project, said Hydrocarbonprocessing.

Borealis has decided to implement additional social controls to remedy any potential lack of control by some contractors. As the thorough investigation and implementation of additional compliance measures are still ongoing, Borealis has decided to extend the stand-still for its PDH construction site in Kallo until further notice. Start-up will then resume gradually.

Borealis has zero tolerance for any kind of malpractices, and has, therefore, suspended the contract with IREM-Ponticelli based on IREM’s breach of several contractual provisions and the ongoing investigation by the Social Inspectorate. Borealis is looking into this matter with the utmost priority and will continue close collaboration with the Social Inspection to further their investigation. The company is thoroughly investigating the concerns raised in order to take appropriate course of action.

"We are currently establishing additional social controls to remedy any potential lack of control by some contractors and prevent any risk of non-compliance, in line with our Goal Zero approach. This continual aim to strive for zero incidents is not only in place for safety, but also for compliance,” comments Wim De Smet, Borealis Location Leader Kallo. “We condemn any kind of human rights violation. This is why we have decided to put the construction of our mega-project in Kallo on hold until all additional measures are in place."

As per MRC, Borealis lifted the cracker products force majeure, declared on 23 June, on 9 July, following the successful restart of the cracker. A company spokesperson said the cracker was back in normal operations. Borealis (Vienna, Austria) has declared force majeure on all cracker products from its ethane-fed steam cracker at Stenungsund, Sweden, after encountering technical difficulties during a restart of the facility following a maintenance turnaround.
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Energy Transfer LP reported financial results for the quarter ended June 30, 2022, said the company.

Energy Transfer reported net income attributable to partners for the three months ended June 30, 2022 of USD1.33 billion, a USD700 million increase from the same period last year. For the three months ended June 30, 2022, net income per limited partner unit (basic) was USD0.40 per unit.

Adjusted EBITDA for the three months ended June 30, 2022 was USD3.23 billion compared to USD2.62 billion for the three months ended June 30, 2021. Distributable Cash Flow attributable to partners, as adjusted, for the three months ended June 30, 2022 was USD1.88 billion compared to USD1.39 billion for the three months ended June 30, 2021.

For the second quarter 2022, Energy Transfer had higher transportation volumes across all of its segments and a full quarter contribution from the Enable Midstream assets that were acquired in December 2021.

We remind, Energy Transfer LP's oil and gas liquids volumes increased in the three months ended on June 30 as the company ramps up processing and transportation system capacity.

Energy Transfer is evaluating petrochemical opportunities in the Gulf Coast and is in discussions with “high quality customers” for long-term, tolling-type agreements prior to making a final investment. Executives said during a conference call to discuss second quarter earnings that the company was considering significant partnerships that could provide access to ethylene and propylene that would allow its customers to access lowest-cost feedstocks.

Energy Transfer is one of America's largest and most diversified midstream energy companies.
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Poland’s PKN Orlen said late on Tuesday that it has written off around zloty (Zl) 2.8m (USD605m) in impairment losses on fixed assets partly as a result of the need to replace Russian crude oil, said the company.

The state-controlled oil and petrochemicals group said in a statement: “As a result of the necessity to replace Russian REBCO crude oil with other, more expensive types of crude oil, a significant increase in the price of gas used in refining production and an increase in the discount rate, the Orlen Group assumes write-offs in the financial statements for the first half of 2022."

It added that the write-offs were the result of the “extraordinary situation in the global refining industry related to the ongoing conflict in Ukraine, the planned [European] embargo on oil from Russia and the limited availability of raw materials”.

We remind, Poland’s ORLEN Group has finalised its merger with Grupa LOTOS, strengthening its leading role in the fuel and energy industry in Central and Eastern Europe. The final step in the process that has been successfully completed was the registration of the merger by the District Court of Lodz. The merger paves the way for unlocking synergies inherent in leveraging the potential of the two companies. As an immediate effect, the merger of PKN ORLEN and Grupa LOTOS will help increase capital expenditure, step up the execution of the most profitable projects, increase the country’s energy independence and ensure stable fuel supplies for all customers.
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