LG Chem breaks ground on supercritical pyrolysis plant

LG Chem Ltd. has broke ground on a plant for pyrolysis and aerogel, a material for next-generation insulation in Seongmun National Industrial Complex in Dangjin, 150 kilometers southwest of Seoul, said Kedglobal.

The South Korean company is slated to inject 310 billion won (USD238.6 million) in the plant on the 240,000 square-meter site in the complex, boosting its plastic recycling businesses. It will mark the first supercritical pyrolysis factory in Korea.

Supercritical pyrolysis is a technology to decompose plastic with steam at temperature and pressure beyond the critical point of water. Global consumption of pyrolysis oil, a liquid substance generated from the process and subsequent cooling, is used for combustion in boilers and fuel in engines.

According to the petrochemical industry, the pyrolysis oil chemical recycling market is forecast to grow at an average annual rate of 17% to reach 3.3 million tons in 2030.

LG Chem will manufacture aerogel with its in-house technology. More than 95% of the material is composed of gas, making it ultralight and resistant to water and fire.

It is used as an insulation material to minimize heat loss when storing and transporting eco-friendly energy, such as liquid hydrogen. The company aims to begin the operation of the facility in 2024.

We remind, LG Chem will team up with Innerbottle and CJ Logistics to accelerate the construction of an eco-platform that will include plastic production, collection after use, and recycling. LG Chem announced on the 30th at the Yeouido LG Twin Towers that it signed the ‘2022 Resource Cycle Platform Construction MOU’ together with the innovative domestic startup Innerbottle and CJ Logistics. Department Leader of Sustainability1 Min-jong(Joseph) Lee from LG Chem, CEO Steve Seil Oh of Innerbottle, and Management Leader Heo Shin Yeol of CJ Logistics attended this event.

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Harbour Energy, Britain's largest oil and gas producer, said on Tuesday it has entered into an agreement with bp to develop the Viking CCS transportation and storage project, said Reuters.

Harbour will continue as operator of Viking CCS with a 60% interest, with bp acquiring a 40% non-operated share, the company said in a statement.

The announcement follows the UK's recent decision to launch the "Track 2" cluster sequencing process for carbon capture and storage (CCS), a technology that removes carbon dioxide emissions from the atmosphere and stores it underground.

Efforts to remove carbon dioxide from the atmosphere and put it in underground storage have gained steam across Europe over the past few years as industries and governments seek to reduce emissions to meet their climate goals.

Harbour said the government recognizes Viking CCS as one of the leading transport and storage system contenders for this process, and that a final investment decision on the project is expected in 2024, subject to the outcome of the Track 2 CCS.

We remind, two Chinese polyester fiber makers are seeking Beijing's approval to build a $10-B refinery and petrochemical complex in Indonesia. The move comes as China ramps up talks on mega investments in Southeast Asia as part of President Xi Jinping's Belt and Road Initiative, and as Beijing limits approvals for new domestic refineries to cut carbon emissions and a fuel supply overhang.

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Clariant will present how its versatile additive solutions are adding extra values and new dimensions for the future of the plastic industry, said the company.

Highlighted in the Clariant booth will be the new AddWorks PKG 158 that offers huge performance enhancement on packaging, in addition to the AddWorks PKG 906 Circle and AddWorks AGC 970 G stabilizers that are valuable in plastic film recycling and extending its service life. Also in the spotlight will be the highly functional Exolit OP 1400 flame retardant that facilitates mechanical recycling. The high-performing wax additives of Licocare Vita / Licocene Terra, and the sustainability-focused Licocare RBW Vita are the other highlights in the show.

Clariant’s wide range of additives boast a broad spectrum of functionality and safety features that add values to plastics in multiple ways for many different industries such as packaging, electronics, agriculture and E-Mobility. As consumer demands from within China and overseas continue to rise after the pandemic, Clariant’s additive solutions will help these segments tap into the new opportunities more quickly and effectively.

“Versatility and safety hold the key for success in plastic as a key material in the fast-expanding E-Mobility and electronics industries where the industry requirements get more sophisticated by the day. Our wide range of AddWorks additives and Exolit flame retardants are therefore indispensable in helping our customers satisfy the new demands in our value chain,” says Jochen Ahrens, Global Vice President, E-Mobility & Electronics, Clariant BU Adsorbents & Additives. “With our new state-of-the-art facilities for Exolit OP halogen-free flame retardants in Daya Bay of China coming into operation later this year, I’m confident that our strong local manufacturing facilities, and the development capabilities at our One Clariant Campus laboratories in Shanghai will help us respond faster to customers’ needs, as we work more closely together.”

Clariant’s patent-protected Exolit OP 1400 flame retardant’s high effectiveness and strong mode of action makes it the preferred choice of flame retardant in the field of E-Mobility. In a low dosage of as little as 0.4mm of 16-20% in most polyamides, the industry’s leading fire standard of class UL94 V-0 can already be fulfilled.

We remind, Clariant, a focused, sustainable, and innovative specialty chemical company, today announced the completion of the divestment of its North American Land Oil business to Dorf Ketal, a specialty chemicals manufacturer and service provider headquartered in India, for USD 14.5 million on 31 March 2023.

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Shell expects its chemicals division to post a loss for the first three months of 2023, the oil and gas major said on Thursday, amid potential higher tax and depreciation costs, lower utilisation rates and slower than expected ramp-up of its Pennsylvania petrochemicals complex, said the company.

Pre-tax depreciation costs are expected to be USD800m-1bn compared to USD800m during the fourth quarter of 2022, while tax charges for the division are expected to be USD100m-600m for the period compared to zero in the prior quarter.

Realised chemicals margins are expected to be below USD100/tonne despite the indicative margin for the first quarter standing at USD140/tonne, a substantial increase on the USD37/tonne generated in the fourth quarter and USD27/tonne loss during the third quarter 2022.

The disparity between indicative and realised chemicals margins is due to lower utilisation as a result of slower than projected capacity ramp-ups at the firm’s newly-completed Pennsylvania complex.

Refining margins are expected to be USD15/bbl compared to USD19/bbl during the fourth quarter of 2022, while utilisation levels are expected to 70-74% compared to 75% during the preceding three months.

We remind, CNOOC and Shell Petrochemicals Company Ltd (CSPC), a joint venture established by China National Offshore Oil Corp (CNOOC) and Royal Dutch Shell, signed a framework agreement worth USD5.6-bn with China’s Huizhou city government to expand its ethylene project in the city. CSPC is expected to add 1.5 million tons per annum ethylene production capacity on top of its existed 2.2 million tons in Huizhou, according to a statement issued by CNOOC on Sunday night.

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The Biden administration proposed new health protections to reduce exposure of U.S. workers and communities to ethylene oxide, a toxic, colorless gas mainly used to sterilize medical equipment and spices, said Reuters.

The Environmental Protection Agency issued a proposed rule with new requirements at 86 sterilizer facilities across the country, that if finalized, aims to reduce ethylene oxide (EtO) emissions by 80%. Long-term exposure to EtO can have health implications, including certain cancers, studies say. The proposed rule is part of President Joe Biden's initiative to cut the death rate from cancer and create new treatments to fight it.

"At EPA, we recognize that ensuring that all people have clean air to breathe is not just an important responsibility and our job under the law, but it's also a moral imperative," Janet McCabe, the agency's deputy administrator, told reporters in a teleconference.

The rules aim to reduce use of EtO at the facilities to 500 milligrams per liter (about a half teaspoon per quarter gallon) while working with the Food and Drug Administration to make sure all sterility requirements are met. An EPA official told reporters that some facilities have already reduced use of EtO to appropriate levels while others use up to twice the proposed amount.

The agency also proposed prohibiting certain uses of EtO where it is used to a lesser extent and alternatives exist, including in museums, archives, beekeeping, cosmetics and musical instruments. The proposed rule will be open for a 60-day public comment period and the EPA aims to finalize it in 2024.

We remind, it could take years for the United States to refill the Strategic Petroleum Reserve, the energy secretary told lawmakers on Thursday, after sales directed by President Joe Biden last year pushed the stockpile to its lowest level since 1983.

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