Siemens Energy halves emissions in its operations

Siemens Energy improved in almost all areas of sustainability this past year, as reflected in its fiscal year 2022 Sustainability Report, as per Hydrocarbonprocessing.

"Global demand for electricity will increase by 25% by 2030,” said Christian Bruch, CEO and Chief Sustainability Officer for Siemens Energy. “Satisfying this hunger for energy sustainably, safely, and affordably is one of the core tasks of our time. Our mission is to support our customers in their transformation to greater sustainability. But this also means we must set a good example and apply the highest standards in our operations. Our goal is to be a leader within the energy industry when it comes to sustainability, corporate governance, and social issues. We're on a good path, but still a long way from where we want to be."

One important reporting parameter across the entire value chain is greenhouse gas emissions. Here, a fundamental distinction is made between Scope 1 (emissions for which the company is directly responsible or in control, such as gas consumption), Scope 2 (indirect emissions through purchased energy, e.g., electricity consumption), and Scope 3 (indirect emissions in the upstream and downstream supply chain).

In its direct area of responsibility (Scope 1 and 2), Siemens Energy emitted 21% fewer greenhouse gases in fiscal year 2022 than in the previous year. In fact, the company has reduced its greenhouse gas emissions in this area by 50% since the baseline year 2019. The original target was to reduce emissions by 46% by 2025. By 2030, Siemens Energy aims to be completely climate-neutral.

A key reason for the company's success in reducing greenhouse gases is its use of renewable energies. At Siemens Energy, 90% of the electricity required for its operations comes from renewable sources. The planned target was 84%. Conventional contracts were replaced more quickly by new agreements or supplemented by guarantees of origin, where it was impossible to purchase renewable energy directly from the supplier.

By September 30, 2023, electricity demand is expected to be covered entirely by green energy. Siemens Energy also reports emissions in Scope 3 that result from the operation of its own products over the entire life cycle. These account for more than 99% of Siemens Energy's total greenhouse gas emissions and represent the most significant challenge to climate neutrality.

In the past year, 46 MM metric tons fewer greenhouse gases were emitted in this category (a 3% reduction compared to 2021). Overall, there was a 12% reduction compared to the 2019 baseline. This is primarily due to the coal phase-out Siemens Energy implemented in 2020. This demonstrates the urgency to switch from coal to gas for power generation as quickly as possible, in addition to using renewable energies: Nearly 40% of the world's power is still generated using coal; switching to gas could eliminate approximately 50% of the emissions at each plant.

We remind, Abu Dhabi National Oil Company (ADNOC) and Siemens Energy AG today announced plans to pilot blockchain technology to certify the carbon intensity of a range of products. By using smart sensor data gathered from across ADNOC’s operational chain – from the oil well right to the customer – the pilot will show how much CO2 was used to make products such as Murban crude, ammonia, and aviation fuels.
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Evonik has started manufacturing commercial quantities of ceramides - a special class of lipids - at its site in Dossenheim near Heidelberg in Germany, said the company.

Maximizing capacity utilization at the Dossenheim site provides Evonik with further flexibility and supply security, including increased independence from alternative routes of supply, to cater to the growing demand for ceramides in the personal care market.

The in-house production of ceramides bolsters Evonik’s position as leading provider of ceramide System Solutions. These combine ceramides with Evonik’s delivery systems and formulations to offer customers high-value solutions that are tailored to their unique needs. This reinforces the company’s position in active ingredients.

“Expanding our in-house production capacity for ceramides enables us to meet the demand of our strategic customers who have minimum volume commitments and very long-term agreements with us. We are also in a strong position to supply other customers with the flexibility and security they need,” said Johann-Caspar Gammelin, head of the Nutrition & Care division at Evonik. “This strategic move is our latest contribution to achieving our Vision at Nutrition & Care: life at heart, systems in mind, partners at hand.”

Ceramides are an integral part of many System Solutions for customers in the cosmetics industry. System Solutions are multi-component offerings across products, technologies and services that are tailored to a unique customer need and often have proven sustainability benefits. As an entry point to a world of consultancy, application expertise and customer service, System Solutions ensure that Evonik is the preferred partner for customers. By establishing the in-house production of ceramides, Evonik is accelerating the transition of its life sciences division, Nutrition & Care, which aims to increase its share of System Solutions from 20 percent today to 50 percent by 2030.

Ceramides are a special class of lipids. As cosmetic ingredients, their effect has been scientifically proven and is intensively promoted by the cosmetics industry. The market for ceramides offers considerable opportunities with a growing number of applications in skin care, hair care, sun care, color cosmetics, advanced food additives and animal care. Crucial to the effect of ceramides is the active ingredient delivery system, which transports the active ingredients to the correct layers of the skin.

We remind, Evonik has started manufacturing commercial quantities of ceramides - a special class of lipids - at its site in Dossenheim near Heidelberg in Germany. Maximizing capacity utilization at the Dossenheim site provides Evonik with further flexibility and supply security, including increased independence from alternative routes of supply, to cater to the growing demand for ceramides in the personal care market.
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Sulzer Chemtech has signed a Memorandum of Understanding (MoU) with the VTT Technical Research Center in Finland to promote the development and promotion of a fully integrated process line that converts poorly processed polystyrene waste into high purity styrene suitable for the production of various grades of styrene polymers, said the company.

More complex food-related applications with stringent VOC requirements will also be included. The system will rely on VTT's patented pyrolysis-based depolymerization solution and Sulzer Chemtech's SuRe styrene purification technology.

Polystyrene producers and processors will benefit from the completed plant in the near future, allowing them to expand the range of feedstocks produced at their plants. This will ultimately allow processors to strengthen their sustainability and improve product quality.

Sulzer Chemtech, which supports VTT in the development of polystyrene processing technology, will act as the main licensor, providing customers with complete technology solutions. These solutions include basic engineering services, supply of key equipment and skid-mounted modular units.

Jarmo Ropponen, Vice President of Industrial Chemistry at VTT, commented: “Sulzer Chemtech has extensive experience with cycling projects in the (bio)polymers and plastics sectors. For VTT, Sulzer Chemtech is the ideal industrial partner for the global deployment of polystyrene chemical processing plants.”

Patrick Farke, Head of Renewable Energy and Biotechnology Applications at Sulzer Chemtech, added: “We are excited to expand our portfolio of licensed technologies by integrating VTT's advanced polystyrene chemical processing technology to reaffirm our commitment to sustainability. Moreover, it will bring us and the entire industry closer to making polystyrene a fully versatile product.”

We remind, Sulzer Chemtech is providing process engineering and key equipment for the expansion of Dongsuh Indonesia (DSI) naphthalene downstream sector. The delivery of an advanced separation unit to DSI’s plant in Serang, Indonesia, will enable the production of high purity naphthalene that can be used for applications with stringent quality requirements.
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Switzerland-based specialty chemicals company Clariant on Monday announced a financial impairment of its cellulosic ethanol plant in Podari, Romania, amounting to some 225 million Swiss francs (USD241 million/ 225 million euro), said the company.

lariant will continue the commercialization of cellulosic ethanol produced by the plant and aims to address the operational challenges by continuously adjusting production processes with the target of achieving commercial viability of the new technology, it said in a press release.

The plant began production in the second quarter of 2022, and has not yet achieved the targeted yields and other operational parameters on an industrial scale. Following a financial assessment of the plant, Clariant has concluded that the respective impairment is appropriate, based on the delayed ramp up and the current financial performance.

"The industrialization of our new technology remains challenging, and therefore impacts underlying financial assumptions, giving rise to the impairment announced today. Nonetheless, we will continue our efforts to achieve commercial viability of the technology,” Clariant CEO Conrad Keijzer said.

The impairment will be booked in December and will be reflected in the full year 2022 results, due to be announced in March 2023. Clariant inaugurated the plant at the end of May, following an investment of 140 million euro (USD148 million), and started production in June. Some 40 million euro from the total investment came from EU funds.

Based in Podari commune, the facility will process approximately 250,000 tonnes of straw to produce 50,000 tonnes of cellulosic ethanol per year, Clariant said in June.Clariant was formed in 1995 as a spin-off from Sandoz. Headquartered near Basel, the company employed over 13,374 globally at end-2021.

We remind, catalysts has teamed up with Evonik and thyssenkrupp Industrial Solutions (tkIS) in a major propylene oxide project for one of China’s largest rubber producers. Qixiang Tengda is one of the leading global producers of carbon-four chemical products, such as methyl ethyl ketone and maleic anhydride. Expanding into the carbon-three value chain, the company’s new propylene oxide plant in Zibo city, Shandong province, relies on Evonik-tkIS HPPO technology to convert propylene in the presence of hydrogen peroxide (HP) directly into propylene oxide (PO). The plant will have an annual production capacity of 300,000 tons.
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Repsol S.A. (Madrid, Spain), Naturgy and Reganosa are joining forces to develop a renewable hydrogen production center in Galicia, Spain, said Chemengonline.

The project involves the installation of an electrolysis plant powered by 100% renewable energy on the grounds of the former Meirama thermal power plant in the municipality of Cerceda (A Coruna). With the promotion of this energy vector, the three companies reinforce their commitment to a fair energy transition.

The renewable hydrogen plant will have an initial capacity of 30 MW, scalable in different phases up to a total potential of 200 MW. It will produce more than 4,000 tons of renewable hydrogen per year in the first phase and reach a total production of 30,000 tons per year.

Repsol is also installing an electrolyzer at its Petronor refinery, producing renewable hydrogen from biomethane at its Cartagena Industrial Complex and earlier this year announced the launch of SHYNE, the Spanish Hydrogen Network. Spanish firm Cepsa recently announced plans to deploy the largest hydrogen hub in Europe.

The renewable hydrogen generated will be destined for industrial use to replace the conventional hydrogen currently used by the Repsol refinery in A Coruna. Other industries, such as mobility will use the renewable hydrogen, and it will be injected into the gas grid to be mixed with natural gas. All these uses will reduce the area’s carbon footprint and demonstrate the feasibility of mass production of renewable hydrogen and its distribution to the end consumer.

Renewable hydrogen is one of the pillars of Repsol’s strategy to achieve net zero emissions by 2050. According to Tomas Malango, the company’s Hydrogen Director, “this project is part of Repsol’s renewable hydrogen strategy in Galicia and is a milestone in the transformation of the A Coruna refinery into a multi-energy hub that provides decarbonized products to society."

The director of New Business of Naturgy, Silvia Sanjoaquin, said that “this project will accelerate the introduction of hydrogen in sectors such as energy, industry and transport, in addition to having a great impact on the local economy, in a fair transition site such as Meirama”. Barredo also indicated that “in Naturgy we want to be protagonists of the energy transition and hydrogen is one of the essential vectors to achieve a decarbonized economy, so we want to cover the entire value chain, from production to end use.”

The general manager of Reganosa, Emilio Bruquetas, emphasized that “15 years ago we provided Galicia with a key infrastructure for the arrival of gas, and the competitiveness of our industry improved substantially. Now, under the leadership of the Xunta de Galicia and surrounded by the best partners, we are participating in the configuration of a new energy ecosystem. The Galicia of the future, which is already in the making, will be green, digital and inclusive, and we are proud to be able to foster this transformation that we all long for.”

In addition, this joint project of Naturgy, Repsol and Reganosa can position Galicia as a world reference in producing, distributing and consuming renewable hydrogen, thus favoring the region’s economic growth. The uniqueness of the project and its large scale give it a high potential for replication in other locations, both nationally and internationally. The three companies are essential agents in developing this type of industrial initiatives by contributing their capacity and global knowledge throughout the plant’s value chain.

We remind, Repsol SA posted slightly lower earnings in 3Q 2022 but recorded a robust increase in adjusted earnings. The company confirmed that it would raise the 2023 dividend by 11% to EUR 0.70/share amid higher oil prices. As part of a programme set for 2025, Repsol intends to repurchase another 50 M shares. Net profit dropped by 3% to EUR 683 M in 3Q 2022 ended Sep 2022.
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