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.
mrchub.com