OxyChem to install new electrolyzers at Texas facility

thyssenkrupp nucera is partnering with OxyChem to install the latest generation eBiTAC v7 electrolyzers to support the conversion of its Battleground plant in LaPorte, Texas, from the diaphragm to membrane chlor-alkali technology, said Hydrocarbonprocessing.

"The fact that OxyChem has contracted us for the important retrofit of its large chlor-alkali plant makes us very pleased because it demonstrates the great trust and partnership, we have built with OxyChem through our chlor-alkali technology and service," says Dr. Werner Ponikwar, CEO and Chairman of the Executive Board of thyssenkrupp nucera AG & Co. KGaA.

thyssenkrupp nucera offers world-class technologies for highly efficient electrolysis plants and supports the conversion of OxyChem's Battleground plant diaphragm cells. Production and delivery will take approximately three years, and thyssenkrupp nucera will expand its manufacturing facilities to accommodate this significant supply agreement.

In this project, thyssenkrupp nucera was involved in the early stages of project development and supplied the basic design for the core of the chlor-alkali facility. The transformation of the chlor-alkali plant into membrane technology is scheduled to begin in 2023 and is expected to be finished by 2026.

We remind, OxyChem, the chemical division of Occidental Petroleum, will shutter its chlor-alkali plant in Niagara Falls because of poor market conditions and high costs to move products out via rail, reported S&P Global with reference to the company's statement on Aug. 19. "This decision was made due to unfavorable regional market conditions as well as unreasonable and continually escalating rail transportation costs," the company said in a statement.

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U.S. chemical maker Dow Inc said on Thursday it had signed a long-term supply agreement with bio-conversion company New Energy Blue for plastic materials made from corn residue, in a bid to move towards renewable energy sources for production, said Reuters.

"This collaboration can help redefine how we source raw materials for our products, allowing us to expand to include renewable feedstocks," said Dow Global Sustainability Director Manav Lahoti.

As part of the agreement, Dow will support the designing of New Energy's upcoming facility in Iowa, that is expected to process 275 kilotons of corn stalks and leaves per year to produce ethanol. Nearly half of this ethanol will be turned into bio-based ethylene feedstock for Dow products.

Ethylene, which is generally made from naphtha, is a basic feedstock for petrochemicals that are processed into products such as plastics.

Dow aims to reduce its fossil fuel sourcing for production and subsequent greenhouse gas emissions by using bio-plastic made from agricultural residues, the company said. The agreement also gives Dow similar commercial supply options for the next four future New Energy Blue projects.

In April, Dow announced a partnership with industrial gas maker Linde Plc (LIN.DE) for clean hydrogen and nitrogen supply for a proposed net-zero carbon emissions ethylene and derivatives complex in Canada.

We remind, 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. 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.

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An "abnormal" rise in imports of biodiesel classified as waste-based has hit rapeseed prices in Europe, vegetable oil industry group FEDIOL said, calling for an investigation into the authenticity of these biofuel imports, said Hydrocarbonprocessing.

Rapeseed is the European Union's main oilseed crop and rapeseed oil produced from crushing the crop is widely used in making biodiesel fuel. The EU has also encouraged the production of biodiesel made with waste oils and fat as part of targets for renewable energy use.

"The magnitude of biodiesel imports' growth is such that it raises questions as to the authenticity of their classification as originating from waste streams," FEDIOL said in a statement on Thursday. EU rapeseed oil prices have fallen by over 30% in the past five months, leading to a similar-sized fall in rapeseed prices, the group said.

"These trends cannot be explained by other market developments and are a signal that there is abnormal market behavior," it said. FEDIOL could not immediately provide more details on EU biodiesel imports.

Traders have cited talk of biodiesel imports as a factor in the sharp drop in rapeseed markets, though they have also stressed large rapeseed supplies in Europe and biofuel policy changes as pressuring prices after record highs last year following Russia's invasion of Ukraine.

EU imports of vegetable oils, meanwhile, are down sharply this season, partly due to a shift away from using palm oil in biodiesel due to deforestation concerns.

We remind, Asian countries remain the lead destinations for Russian vacuum gasoil (VGO) and fuel oil exports after the European Union's embargo, traders said and Refinitiv data showed. "Pretty stable flows for refining and bunkering", one trader said. According to Refinitiv data, China and India, which became main importers of embargoed Russian oil, were respectively accounting for about 2.6 million tons and 2.1 million tons of exports of dirty oil products from Russian ports since the start of the year, buying fuel oil and VGO for further processing at their refineries.

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Kazakhstan's oil exports to Germany via Russia's Druzhba pipeline are expected to reach 100,000 tons in May, said Reuters.

That is up from 90,000 tons of Kazakh crude delivered to Germany via Druzhba in the entire February to April period, Reuters data shows. KazTransOil had planned to deliver 100,000 tons of crude to Germany in April, but only supplied 50,000 tons.

In February, it shipped 20,000 tons of crude to Germany via Druzhba, the first such shipment ever, replacing Russian supplies for German refineries. The European Union has pledged to stop buying Russian oil via maritime routes from Dec. 5 as part of wider sanctions over Ukraine.

The Soviet-built Druzhba pipeline remains exempt from sanctions, but Germany's refineries in Leuna and Schwedt, connected to the pipeline, have not ordered any Russian crude for this year.

Last year Russian oil pipeline operator Transneft said KazTransOil had requested an additional 1.2 million tons of capacity on the Druzhba pipeline for 2023 to facilitate extra oil shipments to Germany.

We remind, 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. 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.

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Asian countries remain the lead destinations for Russian vacuum gasoil (VGO) and fuel oil exports after the European Union's embargo, traders said and Refinitiv data showed, said Hydrocarbonprocessing.

"Pretty stable flows for refining and bunkering", one trader said. According to Refinitiv data, China and India, which became main importers of embargoed Russian oil, were respectively accounting for about 2.6 million tons and 2.1 million tons of exports of dirty oil products from Russian ports since the start of the year, buying fuel oil and VGO for further processing at their refineries.

Singapore and Malaysia also hit the top five destinations for fuel oil and VGO of Russian origin with almost 3.5 million tons in total, while Turkey and Saudi Arabia received about 1.6 million tons each, Refinitiv data showed. Fujairah, key transit and blending hub for oil products in the United Arab Emirates, accepted almost 1.4 million tons of fuel oil and VGO since the start of this year.

In February 2023, the EU introduced a full ban on supplies of Russian oil products, but Russian fuel oil and VGO had already been diverted elsewhere as restrictions were applied partially in August 2022. Asia and the Middle East and also ship-to-ship (STS) loadings became the most popular ways to bypass sanctions since then.

STS loadings near the Greek port of Kalamata have attracted from Russia the biggest dirty oil products volumes, which surged to 8 million tons in 2022 and totaled almost 2.7 million tons from the beginning of 2023. Traders said those cargoes mostly end up in Asia. "(The main destinations were) China, Singapore and some cargoes went to India," one trader added.

Russia also exports small amounts of dirty oil products to Africa, mostly to Senegal, which has bought about 114,000 tons of Russian fuel oil this month, according to Refinitiv.

We remind, Czech Republic can cover its oil needs through shipments via the Transalpine Pipeline (TAL) pipeline from 2025, Prime Minister Petr Fiala said on Tuesday after the country signed a deal to boost capacity along the link.
The Czech government is looking to eliminate all dependence on Russian oil in the coming years, and thus end its exemptions from a European Union ban on imports from Moscow last year. Czech refineries are owned by Polish state-controlled refiner PKN Orlen, which said in April it terminated a contract for Russian oil supplies for its Polish refineries.

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