Cepsa, ACE Terminal to supply renewable hydrogen

Cepsa and ACE Terminal have signed a Memorandum of Understanding (MoU) by which the Spanish energy company will supply green ammonia to the planned import terminal in the port of Rotterdam, for end use applications in the industry after conversion of the ammonia back into hydrogen, or for direct end use in the shipping and other industries in Northwest Europe, said the company.

Cepsa is developing 2GW of green hydrogen at its two Energy Parks in Andalusia, southern Spain, as part of its 2030 Positive Motion strategy to become a leader in sustainable mobility and the production of renewable hydrogen and advanced biofuels and a benchmark in the energy transition. The two hydrogen plants, with a 3 billion euro investment, will form part of the Andalusian Green Hydrogen Valley, the largest green hydrogen hub in Europe, for which Cepsa has recently signed a number of partnership agreements across the hydrogen value chain.

On the import side, Gasunie, HES International and Vopak have partnered to develop ACE Terminal as an entry point to the Netherlands for ammonia as a carrier for green hydrogen as well as a sustainable feedstock. The open access terminal will be located in the port of Rotterdam, a very important port for Northwest Europe from an energy point of view. With the planned reuse of assets and infrastructure, ACE Terminal is a project with a short time to market. The MoU with Cepsa is the first of agreements aimed between additional clients and the ACE open access hub terminal for green hydrogen and ammonia imports.

The MoU between Cepsa and ACE Terminal entails a cooperation intended to lead to a binding commercial agreement to facilitate the oversea transport of green ammonia, to redistribute the green ammonia to end markets in the hinterland, and to process the green ammonia into green hydrogen ready for use by end customers in Northwest Europe. The location of ACE Terminal in the port of Rotterdam offers direct connection to Rotterdam's industry and the planned national hydrogen network, and has an excellent connection to the infrastructure into Northwest Europe.

We remind, Cepsa has signed a deal with the Dutch port of Rotterdam to ship green hydrogen from southern Spain to northern Europe. The hydrogen will be produced at Cepsa’s San Roque Energy Park near the Bay of Algeciras, and will be exported through hydrogen carriers such as ammonia or methanol to the Port of Rotterdam.

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Moody’s has downgraded its credit rating for AkzoNobel as a result of high leverage and the amount of time expected for debt to substantially fall, the agency said.

The firm downgraded its rating for AkzoNobel’s debt from Baa1 to Baa2, citing the levels of debt to earnings the company reached last year as a result of acquisition costs and “generous” share buy-back programmes amid lower volumes and higher costs.

Moody’s is the latest agency to downgrade Akzo’s debt rating, following Fitch cutting its rating for the company to BBB from BBB+ on the back of higher debt to earnings levels.

AkzoNobel estimated that its leverage rose to 3.8 times earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2022, following the buy-backs and its acquisition of Latin America-focused coatings player Grupa Orbis.

The company is still working to complete its purchase of Kansai Paints Africa, expected to be a significant factor behind an anticipated EUR500m of cash-outs in the second half of 2023.

We remind, AkzoNobel has completed the acquisition of the wheel liquid coatings business of Lankwitzer Lackfabrik GmbH, a deal which strengthens the company’s performance coatings portfolio. The acquired business will complement AkzoNobel’s existing powder coatings offering and expand the range of innovative products the company supplies.

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Fluor has been awarded a reimbursable contract by Dow to provide front-end engineering and design (FEED) and engineering, procurement and construction management (EPCM) services for the world’s first net-zero carbon emissions (scope 1 and 2 carbon dioxide emissions) ethylene cracker and derivatives complex in Fort Saskatchewan, Alberta, Canada, said the company.

Fluor will book the initial FEED award in the first quarter and anticipates the additional EPCM scope will be awarded throughout 2023 pending a final investment decision by Dow’s Board of Directors.

“We commend Dow for its leadership and commitment to decarbonize its global footprint, and we are pleased to work together with the company on this important project,” said Jim Breuer, group president, Fluor’s Energy Solutions business. “Fluor’s expertise in energy transition is helping clients across industries reduce greenhouse gas emissions and improve energy efficiency.”

Dow’s net-zero emissions ethylene cracker and derivatives complex, which is subject to approval by Dow’s Board of Directors and various regulatory agencies, would decarbonize approximately 20 percent of its global ethylene capacity while growing its polyethylene supply by about 15 percent and supporting approximately USD1 B of EBITDA (earnings before interest, taxes, depreciation and amortization) growth across the value chain by 2030.

The additional project scope to be awarded in 2023 includes integrated project management team services for the entire Fort Saskatchewan Path2Zero program and EPCM services for the ethane cracker and associated utilities, power and infrastructure.

We remind, Dow intends to construct the sector's first net-zero carbon emissions ethylene and derivatives complex with respect to scope 1 and 2 carbon dioxide (CO2) emissions, at its Fort Saskatchewan (Alberta, Canada) site. The project involves a new 'net-zero carbon emissions' ethylene cracker at the site, set for launching by 2027. It would expand Dow's ethylene and polyethylene capacity by over 200% from its Fort Saskatchewan site, while retrofitting the site's existing assets to net-zero carbon emissions.

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AdvanSix’s Q4 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 28.1% year on year, to USD66.6m, on higher market-based pricing and the favourable year-on-year impact of planned turnarounds, said the company.

These positive drivers were partially offset by a 15% decline in sales volume due to soft end-market demand and customer destocking, as well a lower operational performance, the company said.

While sales fell, total costs and expenses fell at a sharper pace. The adjusted EBITDA margin rose to 16.5%, from 12.3% in Q4 2021.

We remind, AdvanSix’s Q3 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 57% year on year. Despite the 18% decline in volumes, sales rose 7% as market-based pricing was favorable, driven by higher pricing across the company’s ammonium sulphate and nylon product lines. Raw material pass-through pricing was favourable by 4%, following a net cost increase in benzene and propylene, both inputs to cumene, which is a key feedstock for the company's products.

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NextChem and its subsidiary MyRechemical have signed an agreement with Dutch joint venture Dimeta to explore opportunities to produce low-carbon renewable and recycled carbon dimethyl ether (DME) from waste for use in LPG, said the company.

DME is similar to propane and can be blended with LPG without requiring changes to appliances or infrastructure, offering a low-carbon solution to LPG’s use in energy and transportation.

Dimeta plans to produce 3,00,000 tons of DME by 2027 through plants in the US, UK and Europe. The companies will work together to produce DME from municipal solid waste and explore other opportunities, including biogas and biomethane.

Renewable and recycled carbon DME can be produced from biogenic and non-biogenic feedstocks, such as biogas, cellulosic material and municipal waste. Its applications include blending up to 20% with renewable propane in off-grid heating, cooking and industrial applications, using as a 100% renewable fuel in high temperature heating that is hard to electrify, and as a replacement for diesel in engines with only a retrofit required. DME can also be blended up to 20% into propane for use in existing propane-fuelled vehicles.

We remind, NextChem has signed an agreement with Netherlands-headquartered energy firm Dimeta to develop plants for renewable and recycled carbon dimethyl ether (DME) from waste. DME has similar properties to liquefied petroleum gas (LPG), and the recycled material can be blended with conventional LPG to help reduce its carbon footprint without needing to change appliances or infrastructure.

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