Solvay announces decarbonization efforts for Aroma Performance plant in France

Solvay announces decarbonization efforts for Aroma Performance plant in France

MOSCOW (MRC) -- Solvay is planning to commission a new biomass boiler for its Aroma Performance plant in Saint-Fons, France, said the company.

The boiler will reduce greenhouse gas (GHG) emissions by 75,000 tonnes/year compared to 2018 levels, which will become operational by the end of 2025, with the aim of making the site carbon neutral by 2026.

Solvay has entered into a long-term partnership with EDF Group subsidiary Dalkia to commission and operate the boiler, which will run on locally sourced wood waste from building demolition, and waste furniture as fuel to produce steam.

This project is in line with Solvay’s sustainability target to become carbon neutral by 2040.

“The Group is proud to be establishing a new benchmark for vanillin producers worldwide, which, when combined with our Natural Vanillin, will allow us to offer a unique value proposition to customers and consumers,” said Solvay Aroma Performance business president An Nuyttens.

We remind, Solvay in advanced negotiations to divest its stake in Rusvinyl. 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. 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.

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.

Long Son petrochemicals complex to start operations by mid-year

Long Son petrochemicals complex to start operations by mid-year

MOSCOW (MRC) - Long Son Petrochemicals, a unit of Thailand's SCG Chemicals, will start commercial production at its petrochemical complex in southern Vietnam by mid-2023, said Hydrocarbonprocessing.

The USD5-billion facility in Ba Ria Vung Tau province will produce 1.4 MMtpy of plastic resins, it said in an emailed statement.

Its annual output will include 500,000 tpy of high-density polyethylene, 500,000 tpy of linear low density polyethylene and 400,000 tpy of polypropylene, it said.

The complex's raw materials, naphtha and propane, will be imported mostly from the Middle East, the company said.

We remind, Vietnam's largest refinery, Nghi Son, will be shut down for 55 days starting August 25 for major maintenance. The 200,000-barrel-per-day refinery will process 7.96 MMt of crude oil this year, the ministry said in a statement. This will be the first major maintenance at the refinery, which started commercial production in May, 2018. The refinery supplies more than a third of Vietnam's needs for refined fuels.

BP announces plans for renewable hydrogen production at Spanish Castellon refinery

BP announces plans for renewable hydrogen production at Spanish Castellon refinery

MOSCOW (MRC) -- BP announced on 28 February that the company was set to launch a renewable hydrogen cluster in the Valencia region, HyVal, at its Castellon refinery where biofuel production would increase, said the company.

BP is set to develop 2GW of electrolyser capacity at Castellon, which is forecast to be completed by 2030. Furthermore, BP said in a press release that biofuel production at the Castellon refinery would triple to 650,000 tonnes/year by the end of the decade with the hydrogen produced via electrolysis replacing its unabated hydrogen production currently located at the site.

The renewable hydrogen produced would be used as a feedstock in the biofuel production process, specifically for the production of sustainable aviation fuel (SAF), in addition to being used close to the site by the ceramic industry and the chemicals industry. In total, BP is set to invest EUR2 billion into the project.

The first phase will see at least 200MW of capacity electrolysis plant being installed at Castellon by 2027, expected to produce up to 31,200 tonnes/year of renewable hydrogen. The second phase will see capacity rise to as much as 2GW by 2030, with the electricity set to come from renewable generation assets (wind and solar) located near the site.

Spain has ambitions of being a net exporter of renewable hydrogen in the coming years, and the BP announcement follows on from several others surrounding investment in the country so far in 2023. Cepsa in February signed a deal with Fertiberia to boost renewable hydrogen production in Huelva as well as signing a memorandum of understanding (MoU) with ACE Terminal for the export of renewable ammonia from 2027, in addition to the Spanish and Dutch governments agreeing to cooperate more in the field of renewable hydrogen and hydrogen corridors.

The H2Med pipeline is set to move as much as 2 million tonnes/year of renewable hydrogen between Portugal, Spain, France, and Germany and is expected to become operational in 2030. In the country's hydrogen strategy, Spain is aiming for at least 4GW of electrolyser capacity by 2030 in addition to 25% of hydrogen consumption in industry to be renewable by 2030 as both a raw material and as an energy source.

Data from ICIS Power Horizon Forecast showed that hydrogen demand in Spain was forecast to increase from 18TWh in 2023 to 25TWh by 2030 against a production capacity of 23TWh, of which 16TWh is expected to be electrolyser capacity.

We remind, British energy company BP said it would invest nearly USD2 billion to develop a hydrogen hub in the Valencia region of Spain using its Castellon refinery as a foundation. BP unveiled plans to build up its electrolysis capacity at Castellon to produce so-called green hydrogen. Hydrogen production is described using a color spectrum and the most common form in use today is grey hydrogen, which splits methane (CH4) into its elemental components of carbon and hydrogen.

Inpex to use BASF-JGC Corp. CO2 capture technology for large-scale blue H2/ammonia project

Inpex to use BASF-JGC Corp. CO2 capture technology for large-scale blue H2/ammonia project

MOSCOW (MRC) -- BASF Japan Ltd. has announced that the high-pressure regenerative CO2 capture technology HiPACT co-developed by BASF and its engineering partner JGC Corporation will be used by INPEX Corporation, one of Japan’s largest exploration and production companies, in its Kashiwazaki Clean Hydrogen/Ammonia Project, said Hydrocarbonprocessing.

This is Japan’s first demonstration project for the production of blue hydrogen/ammonia from domestically produced natural gas, the consistent implementation of Carbon Capture, Utilization and Storage (CCUS) in domestic depleted gas fields and the use of hydrogen for power generation and ammonia production. The project is funded by the Japanese governmental organization New Energy and Industrial Technology Development Organization (NEDO).

The HiPACT technology will be applied to efficiently capture and recover CO2 in the process gas from a hydrogen production facility using domestic natural gas as feedstock. Located in the Hirai area of Kashiwazaki City, Niigata Prefecture, Japan, the production facility is constructed by JGC Japan Corporation and is expected to start up in 2025. The recovered CO2 will be injected into the reservoirs of the depleted gas fields leveraging CCUS technologies for enhanced gas recovery (EGR).

By releasing the CO2 off gas above atmospheric pressure, HiPACT is expected to reduce CO2 capture and compression costs by up to 35% compared with conventional technologies. This is due to its excellent high-temperature durability and CO2 absorption performance. As CO2 can be stored underground in an energy-saving manner, maximum benefits are expected for Carbon Capture and Storage (CCS).

Mami Kawakatsu, Head of Sales, Intermediates Division of BASF Japan, said, “Following the successful use of BASF’s OASE® gas treating technology in another NEDO-funded CCS project in Tomakomai, Japan, we are pleased to provide HiPACT for Japan's first demonstration project to produce blue hydrogen and ammonia from domestic natural gas. The role of our excellent gas-treating technologies is recognized in these milestone projects in Japan’s net zero roadmap. We will continue to contribute to Japan’s 2050 carbon neutrality goal.

“The implementation of HiPACT is the result of our excellent partnership with JGC Group by combining our capabilities in process technology and plant engineering. We look forward to the use of HiPACT in expanding global CCUS landscape,” added Lawrence Loe, Director, OASE Gas Treating Excellence, Intermediates Asia Pacific, BASF.

BASF’s gas treating technologies have been used in more than 500 reference plants worldwide, and the company has more than 50 years of experience in this field. OASE is a CO2 capture technology for a wide range of applications, including natural gas, synthesis gas, flue gas and biogas. HiPACT is a specialized solution targeting natural gas and synthesis gas treatment equipped with CCS or with CO2- Enhanced Oil/Gas Recovery (EOR/EGR). HiPACT and OASE products significantly contribute to both cost savings and sustainability in the value chain.

We remind, BASF said it would cut 2,600 jobs, halt share buybacks and hike investment to improve competitiveness as it warned of a further decline in earnings due to rising costs. The German chemicals giant said in a statement that adjusted 2023 earnings before interest and tax (EBIT), would fall to between 4.8-5.4 billion euros (USD5.09-USD5.69 billion) from 6.9 billion euros in 2022, which was down 11.5% from 2021.

Petrobras will reduce fuel prices to offset increases in fuels taxes

Petrobras will reduce fuel prices to offset increases in fuels taxes

MOSCOW (MRC) -- Brazil's state-run oil giant Petrobras said on Tuesday it will reduce gasoline and diesel prices at its refineries from Wednesday, a move that will likely offset the resumption of federal taxes levied on fuels, said Hydrocarbonprocessing.

Shares in the company dropped sharply after the news, trading down more than 3% by midday and making Petrobras one of the biggest fallers on the local benchmark stock index Bovespa , which slipped 0.5%. The price cut comes as the government announced on Monday it was set to resume the collection of taxes on fuels, ending a waiver set by former President Jair Bolsonaro last year - a measure that will boost government revenues but is seen as upsetting the middle class.

Brazil's finance ministry had already stated earlier in the day that cutting Petrobras prices was being considered as a way to counterbalance the effect of the tax increase, confirming a Reuters report citing sources. Petroleo Brasileiro SA, as the oil firm is formally known, said in a statement on its website it will lower average gasoline prices by nearly 4%, while diesel prices will be reduced by roughly 2%.

Gasoline will now be sold at 3.18 reais (USD0.6103) per liter, down from 3.31 reais, and diesel at 4.02 reais, against 4.10 reais earlier, the company said, adding the move was aimed at keeping local markets "in balance" with global rates.

The announcement came minutes after Brazil's government said Finance Minister Fernando Haddad would provide details on plans for fuel taxes in a press conference at 7 p.m. local time (2200 GMT). "We are still waiting for more information about the tax resumption to see if the net effect (of Petrobras' price cut) will be really negative," said Guilherme Sousa, an economist at Ativa Investimentos.

The ministry had announced on Monday it would reimpose taxes on gasoline and ethanol, but that the rate on the fossil fuel would be higher than that levied on the biofuel. The government, nonetheless, would still recover 100% of tax revenues that had been waived since 2022, it added.

Reuters reported earlier on Tuesday that the government and Petrobras had opened discussions on the possibility of the company cutting its own prices as a way of offsetting the impact on consumers' pockets. According to two sources familiar with the matter, who asked not to be named, the parties saw room for the firm to reduce both gasoline and diesel prices as local rates have been higher than those in international markets.

"There is room for compensation within the import parity policy," one of the sources said, referring to Petrobras' official policy of tracking international rates such as global fuel prices and foreign exchange.

We remind, Petroleo Brasileiro SA stepped up security at its refineries in a precautionary measure after threats against assets, including Brazil's biggest fuel plant. The threats were detected by Petrobras' intelligence unit monitoring social media communications of supporters of Brazil's far-right former President Jair Bolsonaro, the two people said. The state-controlled company said on Sunday night all its assets and refineries were operating normally.