North American chem rail traffic falls for sixth week down 10.3%

North American chemical railcar traffic fell for a sixth straight week, with loadings for the week ended 8 April down 9.3% year on year to 44,298, driven by a 10.3% decline in the US, according to the latest freight rail data from Association of American Railroads.

For the first 14 weeks of 2023 ended 8 April, North American chemical rail traffic was down 3.9% year on year to 634,833 railcar loadings, with US traffic down 7.0%, to 450,701 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 a fifth straight week, with loadings for the week ended 1 April down 5.1% year on year to 47,024, led by a decline of also 5.1% in the US.

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Chemical technologies licensor Lummus and biotech firm RWDC Industries have signed a memorandum of understanding to cooperate on “global polyhydroxyalkanoates (PHA) deployment initiatives”, said the company.

PHA is a biopolymer that microorganisms produce directly. RWDC uses plant-based oils, including post-consumer or waste cooking oils, to produce a proprietary PHA, named Solon. Solon PHA can be organically recycled or composted, and products or packaging made with it that find their way into the environment are biodegradable, the companies said.

With the cooperation the companies aim to accelerate availability and mass adoption of PHA as a "natural alternative” to synthetically produced petroleum-based plastics, they said. Financial terms were not disclosed.

US firm Danimer Scientific is also working on PHA, as does South Korea's CJ CheilJedang which in 2016 acquired the PHA assets of US-based Metabolix. Interest in PHA has revived because of the surge in demand for environmentally sustainable chemicals and plastics.

We remind, Lummus Technology, a global provider of process technologies and value-driven energy solutions, announced an integrated technology award from SP Chemicals and its subsidiary SP Olefins. SP Chemicals will license Lummus' CATOFIN technology for a new 800 KTA propane dehydrogenation (PDH) unit, and SP Olefins will license Lummus' Novolen technology for a new 400 KTA polypropylene (PP) unit. Both units will be located at SP Chemicals' complex in Jiangsu Province, China.

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BASF’s Q1 2023 earnings are expected to fall by almost 32% year on year, beating analysts’ consensus forecasts, while net income for the period is expected to be firmer as a result of impairments on oil and gas joint venture Wintershall Dea in early 2022, said the company.

Q1 sales are expected to have dropped substantially below analysts’ forecasts as a result of “considerably” lower volumes, the Germany-headquartered chemicals major said in a preliminary results statement.

Q1 earnings before interest and taxes (EBIT) and special items is also expected to surpass analysts’ projections despite the year-on-year fall, with the company’s agricultural solutions and chemicals, materials and surface technologies divisions both performing more strongly than expected.

BASF’s industrial solutions and nutrition and care segments are both expected to undershoot market expectations, the company added.

The company booked a EUR1.1bn charge on its majority stake in Wintershall during the first three months of 2022 in the wake of the onset of Russia’s invasion of Ukraine and the German government’s move to freeze approvals for the Nord Stream 2 pipeline.

BASF will release its finalised Q1 results on 27 April.

We remind, BASF announced that it has received the International Sustainability and Carbon Certification (ISCC) PLUS for certain grades of plastic additives produced at its manufacturing sites in Kaisten, Switzerland and McIntosh, Alabama, United States.

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BASF announced that it has received the International Sustainability and Carbon Certification (ISCC) PLUS for certain grades of plastic additives produced at its manufacturing sites in Kaisten, Switzerland and McIntosh, Alabama, United States, said the company.

This certification will enable BASF to offer more sustainable grades of its core plastic additives with a reduced Product Carbon Footprint (PCF) through the use of renewable raw materials in a mass balance approach. An ISCC PLUS certification covers the entire value chain and ensures the use of renewable materials. It is an internationally recognized certification process for the mass balance methodology.

This certification paves the way for BASF to offer mass balance certificates for certain products to its plastic additives customers. As part of the mass balance certification, a chain of custody must be demonstrated from the input of renewable raw materials to the final sale product with sustainability claims. The company’s manufacturing sites in Switzerland and the United States are the two pilot sites for this certification as part of a global implementation.

“We are the first plastic additives supplier to offer a selected range of biomass balance certified antioxidants as an extension of our VALERAS portfolio. Our customers now have a choice of more sustainable antioxidants that are produced using responsibly sourced and renewable materials instead of fossil resources without compromising their high functional performance,” said Dr. Achim Sties, Senior Vice President, Plastic Additives, BASF. “As we continue the journey with our customers and partners to create new value for plastics, we focus on driving innovations that make a significant contribution to sustainability."

We remind, BASF will establish compounding capacities for its certified compostable biopolymer ecovio in Shanghai, China, said the company. Upon the successful completion of qualification trials, commercial material quantities will be available for customers throughout the region Asia-Pacific from mid-2023.

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Maire Tecnimont S.p.A. announces that, through its subsidiary NextChem Holding S.p.A., it has finalized the acquisition of an 83.5% stake of Conser, a technology licensor and process engineering design company based in Rome, Italy, as already announced on January 23, 2023, said Hydrocarbonprocessing.

The purchase price is approximately EUR35.8 MM, of which EUR28.4 MM paid upfront and EUR7.4 MM deferred and subject to certain conditions. The agreement provides also an earn-out clause based on the achievement of specific operating results relating to FY 2023 and 2024 as well as put and call options on the remaining 16.5% stake exercisable within the next three years.

With this acquisition, MAIRE strengthens its leadership in the energy transition and circular economy field, adding innovative and sustainable technologies for biodegradable plastics intermediates and high value-added specialty chemicals to its portfolio. These technologies may be exploited in new markets thanks to MAIRE’s global commercial network and integrated project execution capability. Further growth opportunities may come from the development of a fully biodegradable or bio-based polymer, in line with the decarbonization strategy undertaken by the Group.

Founded more than 50 years ago, Conser can rely on an extremely diverse portfolio of technology patents dedicated to the energy transition and added-value specialty chemicals processes, including cost-effective and process-flexible technologies for maleic anhydride, butanediol and dimethyl succinate, which are crucial building blocks for the production of biodegradable plastics. Given their excellent biodegradation properties, these plastics show very promising prospects driven by a growing demand, especially in Asia. Conser’s portfolio also includes technologies for fine chemistry for lithium battery production, and bio-based derivatives (plant glycerin). In 2023 Conser is expected to generate operating results (EBITDA) in the range of EUR13-15 MM and to post a net cash position of over EUR10 mln.

Conser has been advised by FAI ADVISORY and by law firm Foschiani of Rome, while MAIRE has been supported by its internal M&A, legal and corporate affairs teams.

We remind, Maire Tecnimont S.p.A. announces that, through its subsidiary NextChem Holding S.p.A., it is expanding into the high-value derivates and biodegradable plastic by-products licensing markets with the acquisition of an 83,5% stake of Conser, a technology licensor and process engineering design company based in Rome, Italy.

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