ADNOC accelerates delivery of low carbon growth strategy to continue responsibly meeting global energy needs

ADNOC accelerates delivery of low carbon growth strategy to continue responsibly meeting global energy needs

MOSCOW (MRC) -- Abu Dhabi National Oil Company (ADNOC) is accelerating operationalization of its board mandated low carbon growth strategy, by establishing a new Low Carbon Solutions and International Growth vertical that will focus on renewable energy, clean hydrogen and carbon capture and storage, as well as international expansion in gas, LNG and chemicals, said Hydrocarbonprocessing.

Musabbeh Al Kaabi has been appointed Executive Director of the new vertical. The creation of the Low Carbon Solutions & International Growth vertical builds on the company’s successful track record in responsibly and sustainably supplying energy to the world. It will play an important role in advancing the company’s ongoing transformation, which has included a steadfast focus on the decarbonization of its operations, energy efficiency and operational excellence, reductions in methane emissions, advancing CCUS to cut CO2 emissions, and the use of renewable and other zero-carbon energy sources.

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “The Low Carbon Solutions & International Growth vertical will accelerate delivery of our decarbonization roadmap and advance our Net Zero by 2050 ambition. As the UAE prepares to host COP28 next year, we will continue to focus on practical and positive solutions that drive progress for the climate and the economy.

“With the direction and support of our nation’s wise leadership and the ADNOC Board, ADNOC is embarking on a new and exciting period of accelerated growth, with a determined focus on sustainability that will help future-proof our business for decades to come. To lead and drive the delivery of our new mandate, I am pleased to announce the appointment of Musabbeh Al Kaabi to the role of Executive Director, Low Carbon Solutions & International Growth, with effect from 16 January 2023.”

Since its inception ADNOC has been focused on sustainability, including eliminating routine flaring of natural gas across its operations. Its investments in the early 1980s to gather and process flared gas have been instrumental in mitigating the negative environmental impacts associated with flaring. The company recently set a new upstream methane intensity target of 0.15% by 2025, which is the lowest in the Middle East, and plans to continue to reduce methane emissions through the use of flare gas recovery systems and regular leak detection and repair programs.

We remind, Abu Dhabi National Oil Company (ADNOC) and Malaysia's Petroliam Nasional Berhad (Petronas) on Monday signed a deal awarding the first concession in the Middle East for unconventional oil resources. The six-year agreement is the first investment by a Malaysian company in an Abu Dhabi concession, United Arab Emirates state news agency WAM said.

TotalEnergies and Air France-KLM sign a 10-year MoU for SAF

TotalEnergies and Air France-KLM sign a 10-year MoU for SAF

MOSCOW (MRC) -- TotalEnergies and Air France-KLM have today signed a Memorandum of Understanding (MoU) for the delivery of more than 1 MMcm3/800,000 tons of SAF by TotalEnergies to Air France-KLM Group airlines over the 10-year period from 2023, said Hydrocarbonprocessing.

This sustainable aviation fuel will be produced by TotalEnergies at its biorefineries. It will be made available to Air France-KLM Group’s airlines, mainly for flights departing from France (in accordance with French legislation) and the Netherlands.

The sustainable aviation fuels produced by TotalEnergies reduce CO2 emissions by at least 80% on average over the entire lifecycle, compared with their fossil equivalent.

Air France-KLM has implemented a strict sourcing policy and is committed to purchasing only SAFs that do not compete with human food or animal feed, that are RSB* or ISCC** certified for sustainability, and that are not derived from palm oil.

With the signing of this MoU, Air France-KLM and TotalEnergies confirm their collaboration and their goal of furthering the development of a more responsible aviation sector. A long-standing partnership in support of aviation sector decarbonization.

Air France-KLM Group and TotalEnergies have been collaborating on the use of sustainable aviation fuel for nearly 10 years. Their partnership began with “Lab Line for the Future” in 2014, a two-year experiment during which 78 flights between Paris-Orly and Toulouse and between Paris-Orly and Nice were powered by 10% SAF supplied by TotalEnergies.

In January 2020, Air France and TotalEnergies participated, alongside Safran and Suez, in the Call for Expression of Interest launched by the French government aimed at developing sustainable aviation fuel production in France.

We remind, Technip Energies has been awarded a contract for work on the conversion of TotalEnergies’ Grandpuits refinery southeast of Paris into a zero-crude platform oriented towards sustainable aviation fuel (SAF). The converted plant will have a capacity to produce 210,000 tonnes/year of SAF from sustainable feedstock such as used cooking oil and animal fat.

SNF completes ADAME expansion at US Georgia facility

SNF completes ADAME expansion at US Georgia facility

MOSCOW (MRC) -- SNF has completed a two-year-long construction and expansion of ADAM (dimethylaminoethyl acrylate) monomer production capacity at our facility in Riceboro, Georgia, said the company.

This expansion increases SNF's U.S. ADAM capacity by 80%. ADAM is the main feedstock for ADC80 cationic monomer, an essential component in all SNF cationic polyacrylamide-based polymers.

This new ADAM monomer capacity features a new catalyst that provides more process flexibility with an improved safety profile for our employees. Further, methanol, a by-product of ADAM production, will be used as a fuel source, making the process more sustainable and less reliant on natural gas.

This expansion represents SNF's ongoing commitment to meet the increasing demand for cationic polyacrylamide-based polymers in wastewater treatment, oil & gas, and paper applications.

We remind, SNF Holding on Thursday announced a USD375m expansion of its water-treatment and water-conditioning polymer production plant near Plaquemine, Louisiana. SNF produces acrylamide monomer and polyacrylamide powders and emulsions at the Plaquemine unit. SNF initially invested USD350m in Iberville Parish in June 2009, with the current polyacrylamide powders facility built in stages over the succeeding years.

SNF is a specialty chemical group whose products contribute to treating, recycling, preserving water, saving energy, and reducing carbon footprint. A pioneer in soft chemistry, SNF has long been present on all continents, employing 6,900 people, including 2,100 in the USA. Innovation and movement towards a cleaner, less carbon-intensive world are great accelerators of SNF's growth.

Axens announces successful startup of ethylene-to-ethanol pilot plant in Japan

Axens announces successful startup of ethylene-to-ethanol pilot plant in Japan

MOSCOW (MRC) -- Axens (Rueil-Malmaison, France) announced that earlier this year it demonstrated the successful start-up of the first ethanol-to-ethylene pilot plant based on Axens Atol technology with Sumitomo Chemical, which is going on the waste-to-polyolefins project in Japan, said the company.

At full rollout, this project will attain the production of waste-based polyolefin at industrial scale, representing a step forward towards a circular economy based on renewable carbon.

Building upon the historic 2021 achievement of the first waste-based polyolefin production at lab scale, the cooperation between both companies entered into a new phase with the construction and start-up of the first Atol plant. This success proves the reliability and robustness of Axens Atol technology, which will be capable of processing a wide variety of ethanol feedstocks derived from various origins.

Axens now counts 5 Atol references in the world, demonstrating the versatility of a technology which is at the crossroads of various value chains, from polymers and chemicals to biofuels.

“We are honored to work hand in hand with Sumitomo Chemical, in a cooperation that has the potential to be a game changer for the polyolefins industry. This project clearly addresses the waste plastics issue and Axens is committed to support our customers and partners to accelerate the deployment of circular economy the world,” said Frederic Balligand, Axens Renewables Product Line Vice-President.

As per MRC, Axens and Hyundai Chemical Co. successfully achieve the start-up of the pyrolysis gasoline (Pygas) unit, part of the Hyundai Chemical petrochemical grassroots complex in Daesan, South Korea. The product has been on-specification regarding the aromatics recovery and the sulfur content in a short period. Thanks to the strong support of Axens personnel on-site during the commissioning and start-up activities, Axens and Hyundai Chemical, started-up the Pygas units (Pygas first and second stage) in December 2021, few months after entering into a collaboration.

Petrobras CEO to Join Sao Paulo Government

Petrobras CEO to Join Sao Paulo Government

MOSCOW (MRC) -- Petrobras’s chief executive will leave the Brazilian state-controlled oil and gas producer after only a short tenure, ahead of a possible shift in corporate strategy under president-elect Luiz Inacio Lula da Silva, said the Financial Times.

Petroleo Brasileiro, as the Rio de Janeiro-headquartered group is formally known, on Tuesday said Caio Mario Paes de Andrade would join the incoming administration of the newly elected governor of Sao Paulo state.

The 48-year-old will continue in his current role in the coming weeks, giving “exclusive attention to the change of command that will take place in the company”, Petrobras said in a statement. A departure date is not yet set.

His exit is the latest change at the top of Latin America’s largest hydrocarbon supplier, which is an important pillar of Brazil’s economy and has a stock market valuation of USD69bn.

Petrobras has had four chief executives in less than two years, after outgoing president Jair Bolsonaro removed its three previous leaders following complaints over fuel price rises. Paes de Andrade, who assumed the helm in June, was formerly an official in the Bolsonaro administration’s economy ministry.

The move clears the way for a new candidate to be selected by Lula, a veteran leftwinger who will be returning to the presidency for the third time on January 1 after more than a decade out of office. As the controlling shareholder in Petrobras, with a 37 per cent equity stake and a majority of voting rights, the Brazilian state can effectively appoint its boss.

Lula has stated his desire for Petrobras to expand its refining capacity and play a greater role in the low-carbon energy transition, with investments in areas such as renewable power and biofuels. The 77-year-old former metalworker has also criticised its policy of moving domestic prices for petrol and diesel in line with international rates.

Many investors, however, are wary of a return to the interventionist approach pursued under past leftwing governments led by Lula’s Workers’ party, or PT. Petrobras was at the centre of a massive corruption scandal during PT rule called Lava Jato, or Car Wash, which ensnared dozens of businessmen and politicians.

It also became heavily indebted under Lula’s chosen successor as president, Dilma Rousseff, as it was pressured to subsidise fuel prices. The group has since reformed its corporate governance, divested non-core assets, such as refineries and petrol stations, and focused on deep-sea oil drilling at its rich offshore reserves.

However, it has come under political fire over bumper profits and dividend payouts. Sao Paulo-listed preferred shares in Petrobras are down by more than one-fifth since Lula’s narrow election victory over Bolsonaro at the end of October, underperforming the local stock index.

We remind, Petrobras disclosed a 15% increase in its five-year spending plan to USD78 billion, with little change to the company's strategy of focusing on fossil fuel production. Throughout 2022, Petrobras delivered an operational and financial performance in line with its commitment to generate value for society and shareholders and in full adherence with the 2022-2026 Strategic Plan, showing the Company's resilience and solidity, and thus increasing the degree of confidence in achieving its goals.