Perstorp outlines roadmap for achieving sustainability targets by 2030

MOSCOW (MRC) -- Sustainable solutions provider, Perstorp turns its ambitious sustainability targets for 2030 into actionable roadmaps on the corporate level as well as for each of its production plants, outlining hands-on activities to lower greenhouse gas emissions, reduce waste, save fresh water and enable sustainable transformation throughout the value chain, said Coatings.specialchem.

Perstorp has presented ambitious sustainability targets for greenhouse gas emissions (Scope 1, 2 and 3), as well as for water and waste, to be reached by 2030.

The company has now supplemented those targets with roadmaps outlining the steps and actions needed to fulfil them and support customers in reducing their carbon footprint as well as lead Perstorp toward its long-term ambition of becoming Finite Material Neutral.

“As a frontrunner in the sustainable transformation of the chemical industry we now have concrete and actionable plans, as well as the needed processes in place, both of which will be continuously developed and executed, to reach our sustainability targets. This will create real progress and show that ambitious targets are possible to achieve,” said Anna Berggren, vice president Sustainability at Perstorp Group.

The largest greenhouse gas emissions are found in Scope 3, which includes raw materials and end-of-life treatment of Perstorp’s products. The Scope 3 roadmap includes the steps necessary to drive the transition of the product portfolio from fossil-based to more sustainable, lower carbon footprint alternatives.

This, in turn, will help enable Perstorp’s customers to achieve their own sustainable transition. One key project in this roadmap is Project Air, an initiative aiming to replace all the fossil methanol that Perstorp uses in Europe with methanol produced from residue streams such as carbon capture and utilization (CCU) and renewable sources like biogas. This alone is expected to reduce carbon dioxide emissions by 500,000 tons per year.

We remind, Petronas Chemicals Group Bhd (PetChem) is focusing on expanding its specialties portfolio after posting a strong performance in 2022 amid geopolitical conflicts, market volatilities and general industry challenges, said the company. The group said its landmark acquisition of Sweden-based Perstorp Group resulted in further diversification of the group’s product offerings, specifically for its specialty chemicals portfolio.

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MOSCOW (MRC) -- China's Sinopec and Kazakh state-owned oil and gas company KazMunayGaz have agreed key terms for a potential investment in a polyethylene plant in Kazakhstan's western Atyrau region, as per Reuters.

A final decision on the proposed investment will be made in 2024, the statement said. The agreement was signed on the sidelines of the ongoing China-Central Asia Summit in Xian in China's Shaanxi province, where China's president Xi Jinping is meeting with the leaders of five ex-Soviet countries to discuss enhanced cooperation in a range of fields, including energy.

Xi met with Kazakh president Kassym-Jomart Tokayev on Wednesday, where the two discussed deepening trade and economic ties between the countries.

China's three main state-owned oil firms Sinopec, PetroChina and CNOOC have all previously made investments in Kazakhstan's oil and gas sector. PetroChina is a member of the consortium that is currently developing the Kashagan field in the Caspian Sea - Kazakhstan's second largest producing field - alongside Western oil majors and KazMunayGaz.

Investment between China and the five nations reached a record high of over USD70 B in 2022.

We remind, Silleno LLP, a joint venture between Russia's SIBUR Holding and Kazakhstan's national oil and gas company KazMunayGas, will soon start Front End Engineering Design for a polyethylene plant in Kazakhstan, Sergei Komyshan, SIBUR's executive director of marketing and sales.

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MOSCOW (MRC) -- Algeria's state-owned energy company Sonatrach announced in a statement on Thursday that it has inked a contract worth USD1.5 bn dollars with Britain-headquartered Petrofac to build a petrochemical project in Arzew Industrial Zone, west of Algiers, said Xinhua.

The project consists of two major integrated processing units to produce 550,000 tons of polypropylene per year, and is expected to be completed in 42 months, according to the statement.

The project aims to boost Algeria's petrochemical industry and contribute to the country's industrial diversification efforts in a bid to boost economic growth, it added.

Petrofac has been active and awarded several energy projects in Algeria since 1997, when it opened its first office in Algiers.

Toufik Hakkar, CEO of Sonatrach, announced in January 2023 that the energy giant will invest 40 billion U.S. dollars in five years, 30 billion U.S. dollars of which will be used for oil and gas exploration and production, with the goal of safeguarding Algeria's energy security and ensuring a dependable supply to the global market.

We remind, a joint-venture (JV) between Total and Sonatrach is expected to begin construction of its Algerian polypropylene (PP) plant in July 2023. There is very little domestic PP production in North Africa compared to demand, and the region mostly relies on exports from Europe and the Middle East. The STEP PP plant will have a nameplate capacity of 550,000 tonnes/year of homopolymer.

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MOSCOW (MRC) -- French chemicals company Arkema plans to acquire Polytec PT, a Germany-based company that develops thermal interface materials for batteries and engineering adhesives for the electronics market, it said.

The acquisition would strengthen the product offering of Arkema’s Bostik adhesives business to the fast-growing batteries and electronics markets, it said.

“We are convinced that the combination of Arkema’s expertise in batteries, its global adhesives footprint and Polytec PT’s technologies will enable us to become a recognised partner for our customers in batteries and electronics,” said Vincent Legros, executive vice president, Adhesive Solutions, at Bostik.

Polytec PT, with annual sales of about EUR15m, has a manufacturing site at Karlsbad, northwest of Stuttgart.

The acquisition's financial or other terms were not disclosed. The batteries and electric vehicle markets are important growth opportunities for the chemicals and plastics industries, with players developing battery materials as well as specialty polymers and adhesives.

We remind, Arkema announces the doubling of its polyester resins capacity in its Navi Mumbai facility in India, reinforcing the Group’s leadership position in the global powder coatings market and its commitment to developing very low-VOC technologies. Arkema invested in the Navi Mumbai facility in early 2019 to expand geographic coverage of its high performance, more sustainable, low-VOC products, and to support its customers in their development. The site includes a modern manufacturing unit and a dedicated laboratory to provide application development and technical support in the region.

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MOSCOW (MRC) -- CCS EBITDA was EUR 556 M in 1Q 2023 versus EUR 605 M in the same period of 2022, driven by lower crude prices and lower refining production due to scheduled maintenance turnarounds at both energy parks, weighing on strong refining margins and positive commercial and clean energies earnings, said the company.

CCS net income was EUR 176 M versus EUR 58 M in 1Q 2022, helped by an improvement in refining margins. However, Cepsa registered a IFRS net income loss for the period of EUR 297 M versus a EUR 265 M profit in 1Q 2022, due to a EUR 323 M charge as a result of the extraordinary tax imposed on energy companies in Spain, with the loss also reflecting changes in stock valuations.

Cash flow from operations before working capital reached EUR 285 M, above the 1Q 2022 figure of EUR 205 M, mainly driven by higher refining margins. Capex spend reached EUR 114 M in 1Q 2023 versus EUR 89 M in 1Q 2022, of which 30% was in sustainable businesses compared with 17% in 1Q 2023 period, as Cepsa firmly moves forward with its Positive Motion strategy to lead green hydrogen, biofuels and e-mobility in Spain and Portugal. Continued deleveraging, with net debt to EBITDA ratio decreasing to 0.8x driven by reduced debt following the cash-in of the Abu Dhabi, United Arab Emirates assets divestment.

Liquidity position remains strong at EUR 4.3 bn, covering debt maturities until end-2027. Cepsa completed the sale of its upstream assets in Abu Dhabi to Total Energies in line with its commitment to lead the energy transition in Europe. Results include the contribution of these assets until the 15 Mar 2023 closing date. Cepsa signed a number of new partnerships during the quarter to develop the Andalusian Green Hydrogen Valley and entered into a joint venture to build the largest 2G biofuels plant in southern Europe with Bio-Oils, a member of the Apical Group. To help customers mitigate the impact of high inflation and energy prices, Cepsa launched in Apr 2023 and updated fuel loyalty programme that can save customers more than EUR 300/y.

In total, Cepsa?s customers saved EUR 145 M during 2022 and 1Q 2023 thanks to fuel discounts on top of temporary discounts offered by the Spanish government. Despite this, it was another quarter of transformation for Cepsa as we embark further on its Positive Motion journey to lead green hydrogen, biofuels and e-mobility in Spain and Portugal. It has signed a number of important industry partnerships since implementing this strategy, and this period has been no exception with significant agreements with key industry players confirmed to develop and promote the Andalusian Green Hydrogen Valley.

The quarter also saw the sale of its upstream assets in Abu Dhabi to Total Energies, divesting a large proportion of its traditional E&P operations to allow it to streamline its efforts to produce and supply sustainable fuels.

We remind, Cepsa plans to nearly double its investments over the next three years to a total of 3.6 B euros (USD3.82 B), with more than half of that amount going to sustainable energy and mobility. It also posted a full-year net profit at current cost of supplies (CCS) of 790 MM euros for 2022, up sharply from the 310 MM euros reported in 2021. The planned investment increase of 93% for 2023-25 is from the previous three years, Cepsa said.

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