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.

mrchub.com

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.

mrchub.com

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.

mrchub.com

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.

mrchub.com

Global diesel margins have slumped by about half since February, dragging on refiners' profits, as Russian exports continue despite sanctions, helping output from China and India reach all-time highs in March, said Hydrocarbonprocessing.

Western sanctions and price caps on Russian crude and oil products introduced in December and February had been expected to tighten oil supplies globally.

However, Russia continues to ship out low-cost oil, enabling its biggest clients - India and China - to boost their refining output and exports. Russian oil products, meanwhile, are being sent in high volumes to oil hubs to be stored and re-exported worldwide.

In addition, several new refining complexes are coming online this year in the Middle East and China, churning out more oil products for export and further depressing refining margins.

India's Reliance Industries, operator of the world's largest refining complex, said in its earnings call on Friday gasoil margins dropped as Russian diesel supplies have remained firm, while an unusually mild winter in Europe led to a build-up in inventories.

Demand for gasoil to replace natural gas in power generation has also fallen after spot liquefied natural gas (LNG) prices eased from all-time highs, the company said.

Benchmark European diesel barge refining margins drifted to their lowest since February 2022 last week to about USD13.70 a barrel, according to Reuters assessments, pressured by high import volumes and the restart of French refineries after labor-related strikes.

Similarly, Asian gasoil margins have fallen by 31% in April to the lowest since January 2022 at about USD14 a barrel last week because of high inventories and as the arbitrage window to Europe has been shut for months.

Profit on processing a barrel of Brent crude at a typical European refinery has plunged by about 71% to the lowest since January last year to USD3.56 a barrel in April, while refining profit margins in Asia are down by around 57% to USD2.54 a barrel in the month.

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.

mrchub.com