Linde to invest billions in clean energy

Germany's Linde, on Tuesday forecast higher earnings for 2023 and said it plans to invest USD7 B-USD9 B over the next two-to-three years in clean energy projects to benefit from demand from companies seeking to cut emissions, said Hydrocarbonprocessing.

Chief Executive Sanjiv Lamba said on a conference call that as part of that investment, Linde plans to spend USD3 billion to convert 11 to 13 existing assets to clean hydrogen. Stock in Frankfurt-listed Linde, the world's largest industrial gases company, jumped by 4% after the CEO's investment comments and were up 2% as of the market close at 1630 GMT.

Countries are looking to curb greenhouse gases and scale up renewables across polluting sectors to meet the European Union's net-zero emissions goal by 2050, and more recently to reduce Europe's reliance on Russian-sourced oil and gas.

Linde on Monday said it would invest USD1.8 billion to supply clean hydrogen to OCI's blue ammonia plant in the U.S. state of Texas, following 2022 deals with BASF, BP and Airbus.

The company, whose stock will be delisted from the Frankfurt Stock Exchange later this month and will only trade in New York, will benefit from the clean energy transition in the United States, especially after President Joe Biden signed the USD430 billion Inflation Reduction Act (IRA) last August, seen as the biggest climate change package in the country's history.

The total investment opportunity for the German company in the United States alone could exceed USD30 billion over the next decade, CEO Lamba said in late 2022. On Tuesday, the group forecast 9-12% growth in 2023 earnings per share, excluding currency headwinds, also citing its balanced end-market portfolio, high network density and capital discipline.

It reported fourth-quarter adjusted earnings of USD3.16 per share, beating analysts' USD2.91 per share estimate in a Refinitiv poll.

We remind, a Russian court has ordered nearly USD500 mln of assets belonging to German industrial gases company Linde to be frozen at the request of a Russian joint venture building a gas complex at the Baltic Sea port of Ust-Luga, court filings showed. RusKhimAlyans, the joint venture which is 50% owned by Russia's Gazprom, asked the Court of Arbitration of St Petersburg and the Leningrad Region to freeze Linde assets worth USD488 mln as a preventative measure.

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Covestro has successfully started up a new world-scale facility for the production of chlorine in Tarragona, Spain, said the company.

It is the first world-scale production plant for chlorine based upon the highly innovative and energy efficient ODC (oxygen depolarized cathode) technology invented by Covestro and its partners. The new plant ensures an efficient, sustainable and independent supply of chlorine and caustic soda to MDI production in Tarragona. This will strengthen the European production network for MDI – a precursor for the manufacture of rigid polyurethane foam used to insulate refrigeration appliances and buildings. The 200 million euro investment has created 50 new jobs on site.

"The successful start-up of the new plant is good news, both economically and ecologically, for Covestro as well as for our site in Tarragona", said CEO Dr. Markus Steilemann. "The plant demonstrates how new technologies enable us to advance our vision of the circular economy and further reduce resource consumption while increasing the robustness and efficiency of our production network."

The new chlorine facility is the first industrial-scale plant in the world to use the innovative oxygen depolarized cathode technology (ODC). The technology has been developed by Covestro in collaboration with thyssenkrupp nucera. Compared to the currently predominant conventional chlor-alkali electrolysis, the new process requires a lower voltage, which results in energy savings of up to 25 percent. At the new plant in Tarragona, this can avoid up to 22,000 metric tons of CO2 emissions per year compared with existing processes – based on the energy mix at the start of construction planning in 2018. The new plant will thus make an important contribution to Covestro’s goal of being operationally climate-neutral by 2035.

We remind, Covestro and LANXESS are cooperating in the energy-intensive production of basic chemicals at their Lower Rhine sites in Germany and make them more climate friendly. LANXESS procures chlorine, caustic soda and hydrogen from the ISCC PLUS-certified sites of Covestro in Leverkusen and Krefeld-Uerdingen. With immediate effect, Covestro is manufacturing around one-third of the volume of products it supplies to LANXESS using energy from hydropower based on guarantees of origin.

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LyondellBasell announced that their leading high-pressure Lupotech process technology has been licensed to PetroChina Jilin Petrochemical Company in Jilin City, Jilin Province, P.R. of China, said the company.

The license will provide for two production trains: a 100 kiloton per year (KTA) Autoclave and a 300 KTA Tubular line for low-density Polyethylene (LDPE) with ethylene Vinyl Acetate Copolymer (EVA). In addition, an additional 400 KTA Hostalen “Advanced Cascade Process” (ACP) line to produce high-density Polyethylene (HDPE) will be built at the same time.

“We are pleased to be able to license additional LyondellBasell Polyethylene technology in this project as PetroChina Jilin Petrochemical Company is an important existing licensee with whom we have had a long and successful history,” stated Neil Nadalin, Director Global Licensing and Services at LyondellBasell. Nadalin added: “The newly added lines will include our state-of-the-art high-pressure Lupotech technology as well as our multi-modal HDPE technology enabling PetroChina to produce differentiated Polyethylene resins”.

“We are very satisfied with the first Hostalen unit running on our site in China, and we are excited to add a new multi-modal HDPE line using the Hostalen ACP technology, stated Mr. Han Zhiqun, Chief Engineer of PetroChina Jilin. “Furthermore, we are eager to expand our future product portfolio into differentiated low-density Polyethylene resins by applying the LyondellBasell Lupotech Autoclave and Tubular processes. This newly added capacity will help us to foster our ambitions in supporting the global energy transition in being able to best serve the solar panel lamination and encapsulant market."

Plant operators worldwide know that LyondellBasell's Lupotech process is the go-to choose for high pressure application design. This technology ensures reliable performance and higher conversion rates than other available options, with effective process heat integration for long-term energy efficiency. To date, LyondellBasell has licensed more than 15,000 KTA of its highly successful Lupotech process technology - in over 80 lines globally.

PetroChina HDPE plants have recently commenced operations using Hostalen ACP process technology. This process produces high performance, multi-modal HDPE resins that offer an industry-leading stiffness/toughness balance, impact resistance, and high stress cracking resistance. Pipe, film, and blow molding applications can benefit from the various advantages that this process entails. The Avant Z 501 and Avant Z509-1 catalysts will be used to create a full range of multi-modal HDPE products.

LyondellBasell is committed to helping its new licensees take advantage of the company's in-house expertise. From continuous production improvement to product development according to the latest environmental regulations, these licensees can benefit from LyondellBasell's know-how and high-pressure design. To make sure they are getting the best experience possible, LyondellBasell offers a Technical Service program for optional use.

LyondellBasell's Polyolefin process and catalyst licensing portfolio is an industry leader, featuring the Hostalen ACP, Lupotech T and Lupotech A process technologies, as well as the innovative Spherizone multi-zone circulating reactor. This breakthrough technology provides a platform to manufacture Polypropylene products with novel architecture and enhanced properties. The patented Spheripol PP process is the leading Polypropylene technology with more than 33 million tons of licensed capacity. It offers globally recognized quality grades with excellent monomer yields and competitive investment costs. Additionally, LyondellBasell offers advanced Ziegler-Natta catalysts using non-phthalate, chromium or metallocene materials for creating a full range of Polyolefin products.

We remind, LyondellBasell announced it has signed the first two European renewable electricity power purchase agreements (PPAs) and two additional PPAs in the United States. The combined additional contracts represent a total of approximately 560 megawatts (MW) of renewable energy capacity. LyondellBasell has now signed eight PPA agreements and achieved over half of its 2030 target to procure a minimum of 50 percent of global electricity from renewable sources.

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The company confirms it is in advanced negotiations to divest its stake in Rusvinyl, an independent 50/50 joint venture in Russia, to its joint venture partner, Sibur, said the company.

In addition to the recently obtained preliminary clearance from Russian governmental authorities, the potential transaction is still subject to several other regulatory approvals.

Solvay will keep the market informed if and when appropriate, in accordance with applicable law.

We remind, Solvay announces the relocation of its headquarters from Neder-over-Heembeek to new facilities in Brussels, specifically designed and equipped to host the Group’s Research, Innovation and administration activities, said the company. Located in the Brussels municipality of Haren, Solvay’s future HQ site is equipped with large research spaces, a high-performance digital infrastructure and great accessibility, providing Solvay’s employees with a future-ready, world class workplace that enhances innovation and collaboration.

Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 21,000 employees in 63 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet roadmap crafted around three pillars: protecting the climate, preserving resources and fostering a better life.

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State firms from Iran and Venezuela will start in the coming weeks a 100-day revamp of the South American nation's largest refining complex to restore its crude distillation capacity, said Hydrocarbonprocessing.

The effort by state oil firm Petroleos de Venezuela (PDVSA) and the state-owned National Iranian Oil Refining and Distribution Company (NIORDC) to boost fuel output at the Paraguana Refining Center marks a step toward ending Venezuela's reliance on U.S. refinery technology, the sources said.

Venezuela, which has the world's largest crude reserves, has struggled in recent years to produce enough gasoline and diesel due to refinery outages, a lack of investment and U.S. sanctions that create obstacles for imports. Long lines at gasoline stations have been common since 2020.

Tehran has strengthened ties with Caracas in recent years, providing crude and condensate as well as parts and feedstock for Venezuela's aging 1.3 million barrel per day oil (bpd) refining network. A unit of NIORDC signed a 110-MM euro contract with PDVSA in May to repair Venezuela's smallest refinery, the 146,000-bpd El Palito in the center of the country, a project that is currently underway.

The companies are now expected to sign in the coming weeks a 460-million-euro contract to revamp the 955,000-bpd Paraguana refinery complex on the coast of western Venezuela, according to the sources. Iran's Foreign Minister Hossein Amirabdollahian arrived in Caracas on Friday and met Venezuela's oil minister Tareck El Aissami, according to tweets from the Iranian embassy in Caracas and Venezuela's oil ministry.

The embassy did not answer calls seeking comment on their talks. PDVSA, NIORDC and Venezuela's oil ministry did not reply to requests for comment. The Paraguana revamp project will allow NIORDC to hire contractors and outsource work to repair five of the complex's nine distillation units, which do the primary refining of crude oil, the four people said.

Paraguana - composed of the Amuay and Cardon refineries - operated at 25% of capacity this month even after the restart of Amuay's catalytic cracker, a key unit for gasoline. Iran will be in charge of parts procurement, installation and inspection before handling the refinery's operations back to PDVSA, two of the people said.

The planned distillation unit overhaul will combine Chinese and Iranian parts and equipment in refineries originally built with U.S. technology, the sources said. The integration of the new and old components will not be easy, they added.

If the revamp succeeds, a larger overhaul could follow in 2024 and 2025, according to the sources. "If the distillation plants do not work, the refinery does not work," said Caracas-based energy expert Nelson Hernandez. "The whole facilities need to pass through a revamp or a major maintenance program."

We remind, Venezuela's oil exports last year declined due to infrastructure outages, U.S. sanctions and rising competition in its key Asia market despite assistance from ally Iran, according to shipping data and documents. Exports this year are expected to get a lift after the United States relaxed oil sanctions by authorizing some partners of state-run firm Petroleos de Venezuela (PDVSA) to resume taking Venezuelan crude.

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