Dow reports first quarter 2023 results

Dow reports first quarter 2023 results

Dow reported a net loss of USD73m for the first quarter (Q1) on a slump in volumes and sales prices in key segments and important geographies, said the company.

Net sales for the largest US chemical company were down 22% at USD11,851m reflecting, Dow said, declines in all its operating segments driven by lower macroeconomic activity.

Sales were flat sequentially, however, with sales gains in performance products and plastics packaging products offsetting a decline in sales of more durable products and those for industry and for infrastructure. Lower consumer demand hit Dow’s Plastics & Packaging segment hard in the first quarter particularly outside the US and Canada, and lower polyethylene (PE) margins hit earnings.

Lower demand from industrial customers, from building and construction and for consumer durables, impacted Industrial Intermediates & Infrastructure sales. Performance Materials & Coating segment sales were down also.Dow said its group-wide sale volumes were down 11% compared with the year earlier period led by a 15% decline in Europe, the Middle East, Africa and India (EMEAI) but were up 2% sequentially.

Prices in local currencies were down 10% year on year and 4% sequentially “with declines in all operating segments and regions due to industry supply additions amidst continued soft global economic conditions”.

Operating earnings before interest and tax, at USD708m, were down USD1.7bn year on year due to lower local prices and the fact that operating rates had been reduced to match market dynamics.

We remind, Dow announced it has selected Linde as its industrial gas partner for the supply of clean hydrogen and nitrogen for its proposed net-zero carbon emissions integrated ethylene cracker and derivatives site in Fort Saskatchewan, Alberta, Canada.


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Evonik reaches settlement with EPA on violation of ethylene oxide, ethylene glycol emission limits

Evonik reaches settlement with EPA on violation of ethylene oxide, ethylene glycol emission limits

The U.S. Environmental Protection Agency (EPA) recently announced a settlement with Evonik Corporation that will reduce emissions of ethylene oxide and other hazardous air pollutants by 5.6 tons per year from a facility in Reserve, St. John the Baptist Parish, Louisiana, said the agency.

The alleged violations were found as a result of a special monitoring and enforcement effort by officials from EPA and the Louisiana Department of Environmental Quality (LDEQ) following EPA Administrator Michael Regan’s visit to the area during his Journey to Justice tour.

The inspections took place in April 2022 as part of the Pollution Accountability Team, an innovative air monitoring project developed by EPA enforcement teams based on concerns of area residents. The initiative combined high-tech air pollution monitoring and real-time physical inspections. EPA’s ASPECT airplane collected emissions data from facilities while EPA’s Geospatial Monitoring of Air Pollution, or GMAP, vehicle monitored pollution levels at facility fencelines and adjacent neighborhoods. Teams of inspectors from EPA and LDEQ were available to follow up with on-the-spot, unannounced inspections at specific facilities if monitoring results indicated elevated emissions.

Evonik has already replaced their scrubber with a more efficient flare, which will destroy 98% of emissions routed to it. Evonik will also install a thermal oxidizer and be required to operate it with a minimum destruction efficiency of 99.9% as demonstrated by a required initial performance test. Evonik will also implement an enhanced leak detection and repair program, which will help minimize fugitive emissions of ethylene oxide and other volatile organic compounds (VOCs).

The corrective actions will reduce hazardous air pollutant emissions by about 5.6 tons per year, including 2.16 tons of ethylene oxide. Ethylene oxide is a hazardous organic pollutant and VOC that can cause cancer in humans. VOCs can contribute to the formation of ozone, or smog, which can result in health problems such as asthma, lung infections, bronchitis, and cancer.

As part of the settlement, Evonik agreed to perform a Supplemental Environmental Project (SEP) to further reduce facility-wide emissions. They will spend a minimum of USD335,000 to design, install, and operate a Vapor Recovery System to capture VOCs which are currently permitted for release to the atmosphere while trucks load and unload. The captured VOCs will be routed to the new thermal oxidizer/flare system. The SEP will be fully operational no later than December 31, 2026 and is expected to reduce VOC emissions by an additional 2.6 tons per year. Additionally, Evonik must pay a civil penalty of USD75,000 to resolve the alleged violations at the facility.

We remind, Evonik is doubling its global capacity for VESTAMID E, polyether block amide (PEBA), with a twofold approach including a major expansion of its production plant at the Multi-User-Site (MUSC) in Shanghai and an optimization project at its production facility in Marl, Germany, said the company. Construction at the Shanghai site starts in Fall 2023 and will increase the company’s ability for the polymerization of PEBA, a key step in producing the raw material, which is highly demanded by the global, athletic footwear market.

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Clariant opens its new catalyst production site in Jiaxing, China

Clariant opens its new catalyst production site in Jiaxing, China

Clariant announces the grand opening of its new CATOFIN catalyst production site in Jiaxing, Zhejiang Province, China, with an investment of SFR 80 M, said the company.

Investing in innovations such as CATOFIN is a core element of Clariant's new purpose-led strategy, as expressed in the statement 'Greater chemistry, between people and planet.' Beyond that, the site serves to increase the already expanding footprint in China, adding on to the existing nearby catalyst plants in Jinshan and catalyst R&D centre within the One Clariant Campus in Shanghai. It is a state-of-the-art plant with digitalized operations which are essential to be able continue making high quality catalyst while boosting productivity rates.

CATOFIN is a catalyst for propane dehydrogenation (PDH), which is used in the production of olefins such as propylene. Thanks to its excellent reliability and productivity, CATOFIN delivers superior annual production output, resulting in increased overall profitability for propylene producers.

Additionally, Clariant developed a speciality material called Heat Generating Material (HGM), which reduces the energy consumption of the CATOFIN technology by up to one-third, further highlighting the advantages of this exceptionally reliable, high-yield catalyst solution.

We remind, Clariant, a focused, sustainable, and innovative specialty chemical company, 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. Clariant’s North American Land Oil business is a provider of chemical technologies and services to the North American oil and gas industry and generated sales of USD 115 million in 2022.

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Alpek swings to Q1 net loss

Alpek swings to Q1 net loss

Alpek swung to a first-quarter net loss of USD6m amid poorer demand due to high polyethylene terephthalate (PET) inventory levels in the market, said the Mexican polyester producer.

Overall sales volumes fell by 5% year on year to 1.16m tonnes in the first quarter, with total production down by 9% year on year to 1.38m tonnes in the first quarter.

"The polyester segment experienced softer demand throughout the quarter due to high PET inventory levels in the market, particularly at the beginning of the year, a decrease in exports, as well as continued seasonality," said Alpek CEO Jorge Young in the statement.

"However, despite lower demand in the polyester & chemicals segment in certain industries and rising polypropylene (PP) supply in the Americas, volume remained slightly above that of last quarter," he said.

We remind, Alpek, Indorama and FENC announced earlier that Corpus Christi Polymers (CCP) will resume construction on the facility in August. The plant is expected to begin production of polyethylene terephthalate (PET) and purified terephthalic acid (PTA) in early 2025. Construction of the state-of-the-art plan is resuming following a period of pandemic-related disruptions. The new facility is expected to be the largest vertically integrated PTA-PET production plant in the Americas, with annual capacities of 1.1m tonnes of PET and 1.3m tonnes of PTA. It will employ three state-of-the-art technologies.

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HIF Global receives environmental permit authorizing, construction and operation at first U.S. eFuels facility

HIF Global receives environmental permit authorizing, construction and operation at first U.S. eFuels facility

HIF Global, the world’s leading eFuels company, today announced receipt of the Texas Commission on Environmental Quality (TCEQ) Air Quality Permit authorizing the construction and operation of the HIF Matagorda eFuels facility in Matagorda County, Texas, said Hydrocarbonprocessing.

The permit completes the review of the facilities design and proposed operation which when operated under the permit parameters demonstrates compliance with the U.S. Environmental Protection Agency (EPA) regulations on Standards of Performance for New Stationary Sources.

When operational, the HIF Matagorda eFuels Facility will produce carbon-neutral shipping fuel and gasoline that can be dropped-in to vehicles in use today without any modification to existing engines or the infrastructure on which they depend.

The carbon-neutral shipping fuel and gasoline will be produced by utilizing approximately 2 million tons of recycled carbon dioxide and combining it with approximately 300,000 tons of green hydrogen separated from water using renewable electricity. HIF Global expects to produce approximately 200 million gpy of carbon-neutral shipping fuel and eGasoline by 2027, with the potential to decarbonize over 400,000 vehicles. HIF Global estimates creating approximately 4,500 direct jobs during the construction phase, which is expected to begin in 2024, and more than 100 permanent operating jobs.

Renato Pereira, CEO of HIF USA, said, “eFuels are decarbonizing the transportation sector now and will reach commercial scale at the HIF Matagorda eFuels Facility. We thank the TCEQ for maintaining a thorough and efficient regulatory review process. Receipt of this initial authorization enables HIF to begin construction in Texas as soon as the engineering, commercial contracting, and financing are complete, which we expect in 2024."

We remind, Russia has increased its diesel exports to Brazil and other parts of Latin America following an embargo on shipments to Europe, traders said and Refinitiv Eikon data showed. Russia has long been the main diesel supplier for Europe, where refineries do not produce enough fuel to meet domestic demand for diesel cars. But a full EU embargo on Russian oil products since Feb. 5 has diverted Russian diesel exports to Asia, Africa, the Middle East and STS loadings.

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