Solvay to supply technology license for hydrogen peroxide mega-plant in China

Solvay, a global market leader in specialty chemicals, has signed a license agreement with Guangxi Chlor-Alkali Chemical (GHCAC) which will enable the Chinese partner to build and operate a hydrogen peroxide megaplant at Qinzhou (Guangxi Zhuang Autonomous Region) designed to support its 300 kilotons propylene oxide (PO) production and other units on site, said the company.

Under this license, Solvay will provide its proprietary hydrogen peroxide mega-scale, high productivity process technology to GHCAC, including a dedicated process design package, operating expertise, and a range of services to ensure the optimized and reliable production of the new megaplant. In addition, the company will also supply GHCAC with proprietary 2-amylanthraquinone (AQ), the key chemical contributing to the high productivity and environmentally friendly chemical processes of Solvay’s megaplant technology.

It has been further agreed that Solvay will have a hydrogen peroxide offtake after the megaplant starts up. This will support the strategic growth of Solvay’s hydrogen peroxide business in China, in particular in the southern area.

“We are very pleased that GHCAC has chosen our advanced hydrogen peroxide technology for this important megaplant project in Qinzhou,” says Peter Browning, President of Solvay’s Peroxides global business unit.” This will allow the customer to meet market needs with a process design package backed by more than 50 years of experience, which provides an energy efficient and cost competitive solution with an excellent safety track record."

Weimin Zhang, General Manager of Shanghai Chlor-Alkali Chemical, commented: “We are honored to work with Solvay in this ambitious venture, which will enable us to run the new hydrogen peroxide megaplant at lower energy consumption and less CO2 emissions than competitors. Next to the proven safety, reliability and cost effectiveness of Solvay’s high-productivity hydrogen peroxide technology, its sustainability benefits were instrumental to deploying it at our Qinzhou site."

The propylene oxide is a versatile chemical intermediate for a wide range of materials in many industrial and commercial market segments, including polyurethanes, propylene glycol ethers and propoxylated organic specialty compounds.

We remind, Solvay announces the completion of the sale of its 50% stake in the RusVinyl joint venture to its joint venture partner Sibur. At the time of closing, Solvay received €433 million in cash proceeds in Belgium which will be reported in the first quarter as cash flow from investing activities (Consolidated statement of cash flows). A capital loss of EUR174 million will be recognized in the first quarter of 2023, mainly reflecting the crystallization of historic currency translation balances.

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Stepan’s Q1 operating income fell nearly 67% year on year to USD21m as sales volumes in the surfactants and polymers segments fell amid softening demand, said the company.

Also hurting results were delays in the startup of new low 1,4 dioxane production assets and continued customer and channel destocking, the company said.

Surfactant operating income fell to USD27.1m, from USD53.8m in Q1 2022, primarily due to a 13% decline in global sales volume. Polymer operating income was USD10.0m, down from USD14.1m in Q1 2022, primarily due to an 18% decline in global sales volume, including a 19% volume decline in rigid polyols and lower demand in the specialty polyols and phthalic anhydride businesses.

“Looking forward, we believe second quarter volumes will remain depressed as markets continue to reconcile forward demand with inventory levels throughout the channel,” said CEO Scott Behrens.

“We expect second half year over year volume growth driven by modest recovery in demand for rigid polyols, growth in surfactant volumes associated with new contracted business, and a low comparable base," he said.

We remind, Stepan Company on 16 Feb 2023 reported that on 15 Feb 2023, the board of directors of Stepan Company declared a quarterly cash dividend on the Company's common stock of USD0.365/share. The dividend is payable on 15 Mar 2023, to common stockholders of record on 3 Mar 2023. The Company increased its quarterly cash dividend in 4Q 2022 by USD0.030/share, marking the 55th consecutive year that the Company has increased its cash dividend to stockholders.

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China’s Kingfa Science & Technology is planning to start up its 6,000 tonne/year polyphenylene sulfone/polyether sulfone (PPSU/PES) project at Zhuhai in Guangdong province in June 2024, the company said in a statement.

PPSU and PES are special engineering plastics with good resistance to heat and oxidation. Their key applications include electrical equipment, auto and medical industries.

Meanwhile, the company’s 15,000 tonne/year liquid crystal polymer (LCP) plant is expected to come on stream in December 2024.

Its 800,000 tonne/year polypropylene (PP) project at Ningbo is scheduled to complete construction in June this year, according to the statement.

We remind, China’s Kingfa Science & Technology will step up investments in the recycling business with a target to expand its production capacity of recycled plastics to 1m tonnes/year by 2025 from 400,000 tonnes/year in 2021. The company will add 400,000 tonnes/year of capacity to existing sites in China and another 200,000 tonnes/year with grassroot projects in Europe and southeast Asia, according to Willis Guan, vice president of Sales and Marketing.

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Specialty chemicals company LANXESS has grouped together 16 new ion exchange resins and absorbents for the pharmaceutical and bioprocessing industries under its trusted umbrella brand Lewatit, said the company.

They are used in various pharmaceutical and bioprocessing applications to separate and purify biomolecules. Applications of these end products range from food and animal feeds to active pharmaceutical ingredients (APIs) that are used in medicinal products.

“Typically, our products support the separation of biomolecules from complex biomass mixtures and play a key role in their further purification or stabilization,” explained Dr. Jenny Boettger, Technical Marketing Manager in the Liquid Purification Technologies (LPT) business unit at LANXESS. “As one of the leading manufacturers of ion exchange resins, we are hoping that this innovative product range will attract new customers from the pharmaceutical and bioprocessing industries and further strengthen our market position,” added the chemist.

The production of biomolecules derived from natural extracts and biological fermentation processes is strongly supported by a wide range of Lewatit ion exchange and adsorber resins. This resin technology opens up a variety of separation and purification options for all kinds of operation scales. The new types are specifically designed to be used in downstream processing for production of various biomolecules, including products from animal- and plant-sourced natural extracts. All resins are based on hydrophobic (polystyrene-divinylbenzene) or medium hydrophilic (polyacrylic) polymers. They were specifically developed to meet the high demands in industries such as biotechnology, pharmaceuticals, biopharmaceuticals, nutraceuticals, and food production in order to detoxify, convert, decolorize, or demineralize the respective molecules more easily.

Through ion exchange or adsorption processes, biomolecules such as peptides, antibiotics, vitamins, amino acids, and polysaccharides can be separated and purified more effectively. All these biomolecules are indispensable in today’s world. Antibiotics are essential for the treatment of bacterial infectious diseases. The intake of vitamins and numerous amino acids and proteins supports vital functions of the body. Diverse polysaccharides are found in part in everyday use. In the form of heparin and structure-like polysaccharides, for example, they are used to prevent venous thrombosis. In cosmetics, hyaluronic acid acts as a humectant due to its high water-binding capacity.

We remind, Advent and LANXESS announced the envisaged establishment of an Advent controlled, leading global engineering materials joint venture company with sales of around EUR 3 billion, combining the DSM Engineering Materials business with LANXESS’ High Performance Materials business.

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Five Phillips 66 refineries have been honored by the American Fuel and Petrochemical Manufacturers for outstanding safety performance in 2022, said Hydrocarbonprocessing.

The Sweeny Refinery on the Texas Gulf Coast captured AFPM’s Distinguished Safety Award – the industry’s top safety honor – for a second consecutive year. Bayway Refinery in New Jersey, Borger Refinery in West Texas and the San Francisco Refinery’s Santa Maria Plant notched Elite Gold awards, and Ponca City Refinery in Oklahoma took home Elite Silver honors.

“Safety is at the core of everything we do at Phillips 66,” said Todd Denton, Phillips 66 Senior Vice President of Health, Safety and Environment and Field Operations Support. “Congratulations to our five safety award winners and their employees and contractors. The recognition by AFPM is a testament to their and the company’s steadfast commitment to the safety of our people and safe operation of our assets in our communities each and every day."

Sweeny, which is located approximately 65 miles southwest of Houston, also garnered AFPM’s Innovation Award for the refinery’s Maintenance Area Safety Team’s work to design, test and commercialize the GrateIt No-Touch Hand Safety Tool, which helps users avoid hand- and ergonomics-related injuries.

The Distinguished Safety Award is presented to eligible U.S.-based sites that demonstrate exemplary, long-term safety performance, program innovation and leadership. The Elite Gold Award is AFPM’s second-highest safety honor, and it recognizes facilities with safety performance in the top 5 percentile. The Elite Silver Award recognizes facilities with safety performance in the top 10 percentile.

Sweeny was one of only three sites to earn a Distinguished Safety Award for 2022. Nearly 250 AFPM-member refining and petrochemical facilities were eligible to apply for the safety awards.

Chevron Phillips Chemical, the joint venture between Phillips 66 and Chevron, picked up Elite Gold awards for its Borger and Orange, Texas, sites, as well as Elite Silver honors for its Port Arthur, Texas, and Sweeny operations.

AFPM is a leading trade association for U.S. refiners and chemical manufacturers. The awards are part of a program developed by the AFPM Safety and Health Committee to promote safe operations in the refining and petrochemical industries.

Sweeny’s award marks the seventh year in a row that a Phillips 66 refinery has captured the industry’s top honor.

We remind, in the oldest refining town in the American West, Phillips 66 is promising a greener future as it moves to halt crude-oil processing and build a massive renewable diesel plant, leading a global trend. That plan, announced in 2020, was initially welcomed by residents weary from a history of pollution and toxic leaks. But some have grown skeptical as the project’s details cast doubt on the environmental benefits of revamping the 127-year-old complex on 1,100 acres in Rodeo, California.

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