BASF signs a 25-year agreement with SPIC to purchase renewable electricity for its Zhanjiang Verbund site

MOSCOW (MRC) -- BASF signed a 25-year power purchase agreement (PPA) with State Power Investment Corporation (SPIC) to purchase renewable electricity for its Zhanjiang Verbund site, which is under construction in Guangdong province, China, said the company.

The PPA is a further step in the renewable energy partnership between BASF and SPIC following the framework agreement signed in March 2022.

This partnership is another significant milestone for BASF in securing 100% green power supply for the Zhanjiang Verbund site by 2025. It is also another successful Sino-German low-carbon initiative following the letter of intent (LOI) signed by BASF and China National Development and Reform Commission (NDRC) in June 2023. Under the latest agreement, SPIC will supply 1,000 GWh of renewable electricity annually for BASF’s Zhanjiang Verbund site. Supply will start in 2025 to coincide with the startup of the steam cracker and core of the Verbund site. The electricity will mainly be generated from dedicated offshore wind power and photovoltaic plants in Guangdong, China.

“BASF is taking another concrete step closer towards its ambitious global climate targets. We are very glad to enter into this long-term partnership with SPIC, one of the world’s largest photovoltaic power generation companies, new energy power generation enterprises and clean energy power generation enterprises, on our path towards net zero emissions globally by 2050. Construction at BASF’s new Verbund site in Zhanjiang is in full swing. Once completed, the site will be a role model for sustainable production and will contribute to the green transformation of chemical industry as well as to China’s carbon reduction ambitions,” said Dr. Markus Kamieth, member of the Board of Executive Directors, BASF SE.

We remind, BASF has commenced construction of its syngas plant at the Verbund site in Zhanjiang, China. This world-scale syngas facility, fully integrated into the Verbund site, is scheduled to start up in 2025.


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MOSCOW (MRC) -- Covestro has entered into open-ended discussions with suitor Abu Dhabi National Oil Company (ADNOC) over a takeover approach, the German company said in a statement, said Reuters.

Covestro's change in stance comes after two top-15 investors told Reuters last month that the plastics and chemicals maker should engage in formal takeover talks in the interest of its shareholders.

Earlier on Friday, Reuters reported citing a source that Covestro's board would meet to discuss formal negotiations with ADNOC. The company's shares closed up 7.8% at 51.5 euros having hit their highest levels in about 18 months.

The CEO of larger rival BASF has described the reported approach as a sign that the European chemical industry, due to cost inflation and a weak economy, needs support from lawmakers to become more competitive.

ADNOC, which is trying to diversify and develop its downstream and renewable energy operations, made a non-binding offer for Covestro of 55 euros per share in June, which was rejected, according to media reports.

In August, ADNOC indicated to Covestro, which has not commented on the takeover approach, that it could raise its informal offer to 60 euros conditional on the German company entering formal talks, Reuters reported at the time.

That non-binding offer would value Covestro, a maker of chemicals used in insulation, upholstery foams, coatings and transparent engineering plastics, at about 11.6 billion euros ($12.4 billion).

In August Covestro warned demand was not improving this year as customers continue to draw down existing inventory rather than order new chemicals.

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MOSCOW (MRC) -- Global flexible packaging and material science company ProAmpac has unveiled its new patent-pending ProActive Recyclable Paper (RP) 1000 High Barrier (HB) packaging solution, said Packaging-gateway.

The new paper packaging solution has been introduced as an extension to ProAmpac’s existing range of ProActive Recyclable RP-1000 series. The ProActive Recyclable series was launched in February this year.

RP-1000 HB has been designed to offer a high barrier against moisture and oxygen. It also has grease resistance properties. All these features together make RP-1000 HB an ideal packaging solution for dry food products, for instance flavoured oatmeal, dehydrated fruit and confectionery.

ProAmpac global marketing director Nathan Klettlinger said: “RP-1000HB is a pre-qualified kerbside recyclable paper solution that seamlessly integrates with existing equipment, simplifying the transition process and minimising costs compared to less efficient sustainable alternatives.

“RP-1000HB is another solution that enables brands to effectively achieve their sustainability objectives.” RP-1000HB, according to ProAmpac, is a sustainable alternative for replacing conventional multi-material laminates.

It can be adapted in various versatile formats, such as pre-made three-sided seal pouches and roll stock. The company said it has used bleached paper for making this packaging solution, which makes it suitable for graphical reproduction. After use, consumers can easily recycle RP-1000HB in kerbside paper streams.

ProAmpac global sustainability innovation director Amir Saffar said: “In rigorous tests simulating up to 85% relative humidity conditions, RP-1000HB preserves its barrier properties, assuring the longevity of products susceptible to spoilage due to environmental moisture.

We remind, Russia is shipping its first crude oil cargo to Brazil, as it seeks to diversify its list of buyers, which has been drastically limited by U.S. and EU sanctions, LSEG data showed and traders said. Russia has been heavily relying on India and China as main buyers of its crude after European embargo and price cap policies were imposed in December last year after Russia's action in Ukraine that Moscow calls a special military operation.

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MOSCOW (MRC) -- Russia is shipping its first crude oil cargo to Brazil, as it seeks to diversify its list of buyers, which has been drastically limited by U.S. and EU sanctions, LSEG data showed and traders said Reuters.

Russia has been heavily relying on India and China as main buyers of its crude after European embargo and price cap policies were imposed in December last year after Russia's action in Ukraine that Moscow calls a special military operation.

Brazil is part of the BRICs alliance together with India and China which have been the most active buyers of Russian oil heavily discounted because of sanctions.

Unlike India and China, Brazil is a major oil producer and exporter, but it does occasionally import crude for domestic refining needs.

Russia's Lukoil is shipping 80,000 metric tons of its Varandey crude oil on the Stratos Aurora vessel from Murmansk port to the terminal of Madre de Deus port in Brazil, operated by Transpetro, a subsidiary of Petrobras, according to sources and shipping data.

Varandey Blend is a light sweet crude oil grade, as other Russian oil grades have mostly been shipped to India and China in recent months.

Lukoil, Petrobras and Brazil's Ministry of mines and energy did not immediately respond to requests from Reuters for comment. Information on the buyer of the cargo was not available.

We remind, Russia is shipping its first crude oil cargo to Brazil, as it seeks to diversify its list of buyers, which has been drastically limited by U.S. and EU sanctions, LSEG data showed and traders said. Russia has been heavily relying on India and China as main buyers of its crude after European embargo and price cap policies were imposed in December last year after Russia's action in Ukraine that Moscow calls a special military operation.

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MOSCOW (MRC) -- Trinseo has reached a deal to refinance all of the company's outstanding USD660m 2024 term loan that is due in September as well as USD385m of its existing USD500m 2025 senior notes, said the company.

Trinseo has made refinancing the debt a top priority. Its stock rose by nearly 13% to USD8.59/share.

In all, Trinseo obtained USD1.077bn in secured term loan financing arranged by Angelo, Gordon & Co and Oaktree Capital Management, with funds managed by Angelo Gordon, Oaktree and Apollo Global Management as lenders.

The net cash proceeds come to USD1.045bn. The final maturity date is 3 May 2028.

Frank Bozich, CEO, said "The financing process was very competitive, a testament to investors’ strong belief in the long-term outlook for the business."

We remind, Trinseo's sales volumes have stabilised at levels that are 20% below typical mid-cycle levels. So far, demand in the third quarter is similar to that in the first half of the year, said Frank Bozich, CEO.

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