Lotte Chemical forms clean ammonia consultative body with RWE and Mitsubishi Corporation

Lotte Chemical announced it has formed a clean ammonia global consultative body with RWE, a German energy company, and Japan’s Mitsubishi Corporation, with a goal to cooperate and jointly develop a large-scale clean ammonia production and supply chain in Asia, Europe and US, said the company.

As part of this move the three companies on 7 February signed a joint study agreement (JSA) which will see the entities engage in joint research for the production and export project of clean ammonia, both blue and green, at the Port of Corpus Christi in Texas, where the largest energy export terminal in the US is located.

The companies noted that the Corpus Christi region has abundant natural gas reserves and is easy to utilise renewable energy, which is advantageous for the production of clean ammonia.

The project aims to produce up to 10m short tons of clean ammonia in stages, starting with the first production in 2030, and export ammonia to Asia and Europe through joint shipment facilities.

“We expect that companies with strengths in each field will contribute to revitalising the global hydrogen ammonia economy and carbon neutrality by carrying out joint research for the production and supply of clean ammonia,” said Hwang Jin-gu, Lotte Chemical head of the hydrogen energy business unit.

We remind, Lotte Chemical is exiting the purified terephthalic acid (PTA) business with the sale of its 75.01% stake in LCPL (LOTTE CHEMICAL Pakistan Ltd). This divestment is part of the company’s medium-term strategy to strengthen its high value-added specialty materials business. LCPL, which produces 500,000 tonnes/year of PTA at Port Qasim in Karachi, will be sold to Pakistani chemical company Lucky Core Industries (LCI) for Korean won (W) 192.4bn (USD156m) – more than 13 times Lotte Chemical’s acquisition cost in 2009.

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Chemicals distributor Univar Solutions has acquired ChemSol Group, a distributor of specialty chemicals and ingredients in Costa Rica, Guatemala, El Salvador, Panama, and Honduras, said the company.

The acquisition of ChemSol will enhance Univar’s footprint in the region, as well as its formulation and commercial offering across an array of growth markets, including beauty and personal care; pharmaceutical excipients; food; coatings, adhesives, sealants, and elastomers; lubricants and metalworking fluids.

Univar announced the acquisition on Tuesday. Financial terms were not disclosed.

We remind, Univar Solutions BV, a subsidiary of Univar Solutions Inc, a leading global solutions provider to users of speciality ingredients and chemicals, announced that the company has been appointed as distributor for Marott Graphic Services (MGS Chemistry Group) unique rust protection additives for inks, coatings, rust prevention oils, and lubricants and metalworking fluids in Europe. The new agreement between the two companies includes additives for oils, lubricants, and coatings in the TINSCO range of rust inhibitors.

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North American chemical railcar traffic fell for a 20th straight week, with loadings for the week ended 4 February down 2.0% year on year to 45,381, led by a 3.5% decline in the US, according to the latest freight rail data by the Association of American Railroads (AAR).

For the first five weeks of 2023 ended 4 February, North American chemical rail traffic was down 5.6% year on year to 218,205 railcar loadings, with US traffic down by 9.8% or 154,499 loadings.

In the US, chemical railcar loadings represent about 20% of chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest. In Canada, chemical producers rely on rail to ship more than 70% of their products, with some exclusively using rail.

We remind, North American chemical railcar traffic fell for 19th straight week, with loadings for the week ended 28 January down 5.9% year on year to 44,803, led by a 10.0% decline in the US. For the first four weeks of 2023 ended 28 January North American chemical rail traffic was down 6.5% year on year to 172,824 railcar loadings, with US traffic down by 11.4% or 15,641 loadings.

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Trinseo reported a Q4 net loss of $365.3m largely because of a pre-tax, non-cash goodwill impairment charge of USD297m related to its PMMA business and Aristech Surfaces reporting units, said the company.

The company saw Q4 sales fall by almost 25% compared with the same quarter a year go while costs fell at a slower pace. The following table shows the company's Q4 financial performance. Figures are in millions of dollars.

The company attributed the lower sales volumes to continued customer destocking exacerbated by extended year-end shutdowns at many customer sites, COVID-19 impacts in China, and underlying demand weakness stemming from an uncertain economic and geopolitical macroenvironment.

Additionally, elevated energy prices in Europe, weak demand in China and easing shipping constraints created a temporary arbitrage window for lower-cost imports from Asia into Europe, which negatively impacted volumes and created margin pressure for globally traded products such as ABS (acrylonitrile-butadiene-styrene), polycarbonate, MMA (methyl methacrylate) and PMMA (polymethyl methacrylate sheets.

“During the fourth quarter we observed a similar sequential operating environment including lower global demand and elevated natural gas prices in Europe,” President and CEO Frank Bozich said. “However, our results improved sequentially as we made proactive operating decisions that will continue to reduce our exposure to cyclical commodity markets.”

We remind, Trinseo, a specialty material solutions provider and Japan Steel Works Europe GmbH (JSW EU), a group company of The Japan Steel Works, Ltd. (JSW), a manufacturer of industrial and plastics machinery, recently announced a collaborative effort on chemical recycling of polymethyl methacrylate (PMMA).

Trinseo a specialty material solutions provider, partners with companies to bring ideas to life in an imaginative, smart, and sustainability-focused manner by combining its premier expertise, forward-looking innovations and best-in-class materials to unlock value for companies and consumers. From design to manufacturing, Trinseo taps into decades of experience in diverse material solutions to address customers’ unique challenges in a wide range of industries, including consumer goods, mobility, building and construction, and medical.

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Reliance Industries Limited (RIL) unveiled India’s first Hydrogen Internal Combustion Engine technology solution for heavy duty trucks flagged off by Honourable Prime Minister Narendra Modi at the India Energy Week in Bangalore, said the company.

The Hydrogen Internal Combustion Engine (H2ICE) powered trucks will emit near zero emissions, deliver performance on par with conventional diesel trucks and reduce noise and with projected reductions in operating costs thus redefining the future of Green Mobility.

As part of its Net carbon Zero vison, Reliance with its vehicle partner Ashok Leyland and other technical partners are engaged in developing this unique technology since the last year with first engines running in early 2022. Going forward, Reliance will first extensively test and validate the H2ICE technology for heavy duty trucks before its first commercial deployment at scale initially across its captive fleet. Simultaneously Reliance is pursuing the opportunity to create an end-to-end Hydrogen eco system for mobility.

We remind, Reliance Industries Ltd., helmed by billionaire Mukesh Ambani, posted a larger-than-expected quarterly profit as growth in its consumer units offset the weakness in its traditional petrochemicals business. Net income fell 15% to 157.9 billion rupees (USD1.9 billion) in the quarter ended Dec. 31 but was still higher than the average 156.19 billion rupees estimated in a Bloomberg survey. India’s largest company by market value also secured approval of its board to raise as much as 200 billion rupees via bonds.

Reliance is India’s largest private sector company, with a consolidated revenue of INR 792,756 crore (USD104.6 billion), cash profit of INR 110,778 crore (USD14.6 billion), and net profit of INR 67,845 crore ($9.0 billion) for the year ended March 31, 2022. Reliance’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables (solar and hydrogen), financial services, retail and digital services.
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