PET Baltija agrees to acquire Czech fibre producer

PET Baltija agrees to acquire Czech fibre producer

MOSCOW (MRC) -- PET Baltija, a PET recycler in Northern Europe, announces an agreement to acquire Czech fibre producer Tesil Fibres s.r.o, a spin-off of SILON , said Petnology.

This vertical integration transaction will subsequently increase PET Baltija’s current revenues by more than 50% while also making it an international company. For SILON, the transaction will enable it to fully focus on both the production and development of the highest quality polyolefin-based performance compounds.

Fibre production has been part of the traditional operations in Plana, Czech Republic dating back to 1966, and being integral part of SILON s.r.o. The operations spun-off to Tesil Fibres encompass country-leading annual staple fibre production capacities of 33 000 tonnes and c. 150 employees. Tesil Fibres is a primary supplier to the European market, covering industries and sectors that include automotive, hygienic, textile and furniture. It is also well known for its high quality standards and last year its fibre division recorded sales of EUR27million.

Salvis Lapins, Chairman of the Board at PET Baltija, commented: "This deal will really put PET Baltija on a map as a key international player for the sector. We recognise and are excited by Tesil Fibres’ impressive high growth potential and its dedicated team of professionals. Working closely with the team and other key stakeholders, we plan to develop the company further, accelerating its growth and creating real value for all those involved. By ensuring the supply of best-in-class recycled PET materials, we will look to significantly contribute to the growth of the Tesil Fibres business and add greater product differentiation to it. It is also important to mention that through these developments, the overall volume of recycled PET will also increase."

Deimante Korsakaite, Executive Partner at INVL Baltic Sea Growth Fund and Chairman of the Supervisory Board at PET Baltija, added: “This agreement to acquire reinforces INVL Baltic Sea Growth Fund’s goal to significantly expand PET Baltija through both organic growth and bolt-on acquisition strategies. Since our initial investment, PET Baltija alone has more than doubled its revenue and is on track to finalise an organic growth expansion project that will more than triple its food-grade PET production capabilities. This deal will cement the company as a truly international vertically integrated market player that is committed to sustainability and tackling environmental issues. This represents a significant development and leads to become a €100million+ revenue company."

We remind, Encina Development Group, LLC announced the first-ever production of high purity aromatics made entirely from end-of-life mixed plastics. Encina has delivered its high purity monomer chemicals to customers and confirms that ongoing production will continue.
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Koch Technology Solutions and Ioniqa Technologies partner to boost PET upcycling technology

Koch Technology Solutions and Ioniqa Technologies partner to boost PET upcycling technology

MOSCOW (MRC) -- Koch Technology Solutions, a Koch Engineered Solutions company, and Ioniqa Technologies B.V. announced a partnership to scale up and commercialize Ioniqa’s advanced PET recycle technology in the plastics industry. As part of this collaboration, KTS has committed to invest up to EUR30M in Ioniqa, said Petnology.

Ioniqa has developed an innovative process that utilizes low-grade post-consumer PET to infinitely produce a feedstock that displaces virgin raw materials used in the production of polyester products. Ioniqa has successfully demonstrated this technology in The Netherlands’ 10KTA production facility.

“KTS has a long history in the polyester industry, and we recognize the value proposition of this disruptive technology that will fundamentally change how recycling is done,” said Adam Sackett, President of KTS. “With an aligned vision on the future of PET recycling, we’re excited to launch this partnership with Ioniqa and leverage our complementary capabilities to advance solutions which are tailored to the needs of the market.”

KTS and Ioniqa’s partnership will work to address the growing demand for recycled content in the 30 million metric tonnes per annum PET market. Ioniqa’s technology offers a solution to PET waste that is currently non-recyclable, turning the waste into materials suitable for high quality food grade applications such as beverage bottles. KTS and Ioniqa consider the technology as a disruptor in the PET industry providing a sustainable economic recycle proposition to conventional manufacturing routes. The partnership will drive a circular process that addresses environmental impacts of the current PET industry.

We remind, Encina Development Group, LLC announced the first-ever production of high purity aromatics made entirely from end-of-life mixed plastics. Encina has delivered its high purity monomer chemicals to customers and confirms that ongoing production will continue.
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Carbon intensity of U.S. power generation continues to fall but varies widely by state

Carbon intensity of U.S. power generation continues to fall but varies widely by state

MOSCOW (MRC) -- From 2016 to 2020, the carbon intensity of U.S. power generation fell 18%, driven by a shift in the U.S. electricity generation mix away from coal and toward natural gas and renewables, said Hydrocarbonprocessing.

The carbon intensity of power generation measures the amount of CO2 emitted to produce a unit of electricity. All but seven U.S. states decreased their carbon intensity over that five-year period, although the amount of the decrease varied widely.

In 2020, the carbon intensity of U.S. power generation averaged 854 pounds of CO2 per megawatthour (lbs of CO2/MWh), but carbon intensity varies by energy source. In 2020, the carbon intensity of coal in the United States was 2,274 lbs of CO2/MWh. Natural gas was less carbon intensive than coal at 980 lbs of CO2/MWh. Nuclear power plants and non-emitting renewables, such as hydroelectric, wind, and solar power, produce little to no CO2 emissions.

The carbon intensity of power generation varies by state because the mix of fuel sources used to generate electricity is different in different states. Notably, states also receive and deliver electricity to other states, so the carbon intensity of generation in a state does not necessarily reflect the carbon intensity of the electricity used in that state.

The states with the lowest carbon intensities of power generation either have a large share of generation from renewables or a large combined share from renewables and nuclear. In 2020, Vermont had the lowest carbon intensity of power generation at 8.4 lbs of CO2/MWh. Almost all of Vermont’s in-state electricity generation came from renewables, and Vermont brings in about 60% of its electricity from Canada.

The states with the highest carbon intensities of power generation have larger shares of in-state generation from coal- or petroleum-fired power plants than the national average. Wyoming, the state with the highest carbon intensity of power generation in 2020 (1,970.8 lbs of CO2/MWh), generated 79% of its power from coal.

Despite the large variation in carbon intensity levels, most states are reducing the carbon intensity of their power generation. Forty-three states and the District of Columbia recorded lower carbon intensity of power generation in 2020 relative to 2016.

In Tennessee, the share of in-state generation from nuclear and natural gas-fired plants increased as the share of coal-fired generation declined. In Maryland, natural gas’s share of generation increased from 15% in 2016 to 39% in 2020; coal’s share decreased from 37% to 9%. Iowa, Kansas, and Oklahoma—all located in the central wind belt—reduced their carbon intensity as wind generation continued to displace coal-fired generation.

We remind, Saudi Aramco has notified at least three North Asian buyers that it will supply full contractual volumes of crude in October. The world's top oil exporter has slashed its official selling prices (OSPs) to Asian buyers for the month, the first reduction in four months. The price cut was overall in line with the market expectation as the spot premiums for the Middle Eastern crude dipped since mid-August amid an increasing number of arbitrage cargoes flowing into Asia.
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Fuel markets to stay tight till mid-2020s as refining shrinks

Fuel markets to stay tight till mid-2020s as refining shrinks

MOSCOW (MRC) -- Crude oil refining capacity has shrunk by a record 3.8 MM barrels per day from March 2020 to mid-2022 as demand expanded, setting the stage for fuel markets to remain very tight until at least mid-decade, said Reuters.

The fall in capacity comes as oil demand rose by 5.6 MMbpd over the same period, the report released on Tuesday said. At the same time, about 2 MMbpd of net capacity is expected to come online by the end of 2023, with delays to these timeline likely to arise, the report said.

"This puts pressure on all available refining capacity to run at high utilization levels to keep up with demand." Oil product markets experienced sharp upheaval since the COVID-19 pandemic was declared in March 2020.

While the pandemic decimated demand globally and killed profit margins, the post-pandemic recovery and Western sanctions on Russia over its invasion of Ukraine have tightened fuel markets sharply, leading to record profit margins earlier this year. Record profits for refiners are unlikely to lead to new investment in expanding global refining capacity, however, according to the report, amid "the expectation that the energy transition could make refineries stranded assets has deterred investment".

A sharp rise plug-in electric vehicle sales, which are expected to grow from 6.6 MM last year to 35.7 MM at the end of the decade, will likely displace 4 MMbpd of gasoline and diesel demand. The falling refining capacity comes at a time when global fuel inventories are tight and as Russian and Chinese exports of fuels are being constrained, the report said.

Sanctions and embargoes have displaced nearly 3 MMbpd of Russian products that are not easily rerouted. And Chinese product exports are down 30% from 2019 levels as the government has strategically shifted to prioritising domestic markets.

As per MRC, Saudi Aramco has notified at least three North Asian buyers that it will supply full contractual volumes of crude in October. The world's top oil exporter has slashed its official selling prices (OSPs) to Asian buyers for the month, the first reduction in four months. The price cut was overall in line with the market expectation as the spot premiums for the Middle Eastern crude dipped since mid-August amid an increasing number of arbitrage cargoes flowing into Asia.
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ISCC and Circularise pilot blockchain technology with 10 companies

ISCC and Circularise pilot blockchain technology with 10 companies

MOSCOW (MRC) -- Circularise announced a pioneering joint project with the certification scheme ISCC, material suppliers Neste, Asahi Kasei, Borealis, Trinseo and Shell, original equipment manufacturers (OEMs), brands Arcelik, Philips Domestic Appliances and EVBox, as well as trading companies Marubeni and Itochu, in which partners tested a blockchain system to complement the ISCC Plus certification, said Hydrocarbonprocessing.

These parties were brought together by Circularise and Marubeni. This is the first time that 10 chemical industry players and appliance companies got together to test a blockchain-based digital system as a complement to a sustainability certification process of complex value chains.

Circularise’s blockchain-based digital system was tested with the ISCC Plus certification to make auditing of certified parties more efficient, and to strengthen integrity of certified data. Participants utilized a public blockchain enabling authentication, decentralization and encryption of data verifying material flows and related sustainability attributes. This innovative approach differs from other blockchain projects where companies use a private blockchain operated by pre-selected participants, such as members of a consortium. Instead, Circularise and project partners used a public blockchain, making it virtually impossible for companies to appear more sustainable than they really are by reusing the proof of a sustainability claim across assets. This principle forms the foundation of trust in data integrity.

Material traceability and verification of data at individual sites and across the value chain were guaranteed by ISCC Plus certification of each site of the operators, requiring site-specific audits, certification and mass balance calculations to provide reassurance about the sustainable content. The data was uploaded to the Circularise software system to improve mass balance bookkeeping and reporting.

Currently, the chemical sector is engaged in significant sustainability transformation efforts, including rethinking of the use of raw materials, circularity, and climate impact of operations and entire value chains. This transformation is largely built upon sourcing new, more sustainable feedstocks, while maintaining efficient processes, a viable economy and high credibility.

Certification schemes providing an option to use the mass balance system can facilitate a gradual switch towards increasing the replacement of fossil feedstock and materials with renewable and recycled raw materials, while enabling the use of existing infrastructure and equipment instead of constructing parallel plants and value chains. In the mass balance system, data storage and data integrity are key elements in verifying sustainability and compliance to the certification requirements.

One of the greatest challenges the mass balance approach faces in the plastics and chemicals industries is awareness and understanding. Through this project, the collaborating partners managed to deepen their knowledge on the topic, align internal processes with ISCC Plus requirements, and test a new futureproof way for bookkeeping of mass balance credits, while easily sharing them across organizations. Overall, this allowed value chain actors to better substantiate sustainability claims and improve collaboration. Beyond this project, blockchain technology will play a critical role in complementing supply chain certification to enable certification schemes to simplify the auditing process of supply chain actors, reduce the risk of mistakes and accelerate the sustainable transition.

We remind, Technip Energies has been awarded a significant contract by Neste for the expansion of their renewable products production capacity in Rotterdam, the Netherlands, as part of the existing Partnership Agreement between Technip Energies and Neste. The contract covers Engineering, Procurement services and Construction management (EPsCm) for the expansion of Neste’s existing renewables refinery in Rotterdam which will increase Neste’s overall renewable product capacity by 1.3 MMtpy.
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