Fluor announces Q3 contracts from Dow for net-zero ethylene cracker and derivatives complex in Canada

Fluor announces Q3 contracts from Dow for net-zero ethylene cracker and derivatives complex in Canada

MRC -- As previously announced and recognized in the third quarter on a confidential basis, Fluor Corporation was awarded two contracts from Dow for the construction of the world’s first net-zero scope 1 and 2 emissions integrated ethylene cracker and derivatives complex in Fort Saskatchewan, Alberta, Canada, said Hydrocarbonprocessing.

The reimbursable services contracts represent a total value of more than $3 billion and consist of engineering, procurement and construction management for a new ethylene cracker unit and for the associated utilities, power and infrastructure facilities. The overall program also includes the expansion and retrofit of Dow’s existing manufacturing facilities.

Dow announced in November that its board of directors declared the Final Investment Decision for the project, which is part of Dow’s Path2Zero program, intended to lower the greenhouse gas emissions of its manufacturing facilities while growing capacity and delivering low-emissions products to customers.

“This program represents a major step towards Dow’s commitment to decarbonize its global footprint,” said Jim Breuer, group president of Fluor’s Energy Solutions business segment. “We have a long history of successful project execution with Dow, and we are grateful to be given the opportunity to support their objective to be a leader in sustainable chemicals production.”

Dow’s net-zero scope 1 and 2 emissions integrated ethylene cracker and derivatives complex is projected to decarbonize approximately 20% of the company’s global ethylene capacity while growing its polyethylene capacity by approximately two million metric tons per annum.

“Fluor has been a great partner over decades and this project builds on Dow’s very successful Texas-9 and associated projects, delivering more than 15% return on invested capital since its 2017 start-up,” said Ron Huijsmans, Dow’s Global MEGA Project Director. “We are excited to have Fluor on board again to deliver a similar or even better project outcome.”

In February, Fluor was awarded the front-end engineering and design contract for the project. Construction began in July on early works and the program is expected to come online in phases, with the first phase starting up in 2027 and the second phase starting up in 2029.

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Repsol supplies green jet fuel for Inditex's air freight in Spain

Repsol supplies green jet fuel for Inditex's air freight in Spain

MRC -- Spanish oil company Repsol said it has started supplying SAF to U.S.-based airline Atlas Air, which ships freight for Zara-owner Inditex to and from Zaragoza airport in northern Spain, said the company.

Atlas Air has been using SAF for 5% of fuel on all its flights from Zaragoza since November and is the first cargo airline to use green jet fuel regularly in Spain, Repsol and the airline said in a joint statement. Regulators in Europe and the United States are pushing for the use of sustainable aviation fuel, made out of organic waste such as used cooking oil, as it is one of the only ways to decarbonize air travel. However, the supply and cost of SAF limit its use in commercial air transport.

In May, Repsol clinched an agreement with another low-cost airline, Ryanair, to supply up to 155,000 tons of SAF between 2025 and 2030.

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Korea exports snap year-long slide as chips regain momentum

MRC -- South Korean exports rose in October for the first time in 13 months as semiconductors, the country’s top export item, are on course to regain momentum, raising hopes for a faster recovery in Asia’s fourth-largest economy, said Kedglobal.

Overseas sales grew 5.1% to $55.1 billion last month from a year earlier, marking the first year-on-year growth since September 2022, showed data from the Ministry of Trade, Industry and Energy on Wednesday. Imports lost 9.7% on-year to $53.5 billion, resulting in a trade surplus of $1.6 billion.

“Exports are expected to lead the economic growth from now on,” Minister of Trade, Industry and Energy Bang Moon Kyu said in a statement.

The country reported an export drop in September for the 12th straight month, adding to concerns that the economy may miss the central bank’s growth target of 1.4% for this year. The economy expanded 0.6% in the third quarter from the previous three months on a seasonally adjusted basis, according to the Bank of Korea’s advance estimates last month.

Concerns have eased as October exports rebounded amid signs that overseas sales of semiconductors are poised to recover in the near term.

We remind, South Korea may snap its 12-month-long losing streak in exports this month after it reported an on-year gain in exports in the first 20 days of October despite fewer working days thanks to brisk sales of its cars and ships abroad.

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Sumitomo Chemical to exit cyclohexanone business

Sumitomo Chemical to exit cyclohexanone business

MRC -- Sumitomo Chemical has decided to close down its production facilities for cyclohexanone (also known as anone) at its Ehime Works located in Niihama City, Ehime, Japan and exit the business, said the company.

The closure of the production facilities is scheduled for the end of March 2024. Cyclohexanone is mainly used as an intermediate for nylon. Demand for cyclohexanone was expected to remain solid both in Japan and overseas, but there have recently been significant changes in the business environment, such as soaring raw material prices and a depressed market resulting from the slow recovery of the global economy.

In view of these developments, Sumitomo Chemical has determined that it would be difficult to realize stable sales volume or margins for cyclohexanone over the medium- to long-term.

Sumitomo Chemical is implementing short-term intensive performance improvement measures and, as part of these efforts, is accelerating the restructuring of its businesses from the perspective of profitability and the best-owner principle. The Company will steadily advance these measures to ensure a V-shaped recovery in fiscal 2024, while also strengthening its financial position to carry out fundamental structural reforms going forward.

Earlier it was reported, Sumitomo Chemical announced its decision to close down its production facilities for caprolactam, a raw material for nylon, at its Ehime Works (Niihama city, Ehime, Japan) in October 2022, and exit the business.

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Toyo awarded contract for acetylene black project in Thailand

Toyo awarded contract for acetylene black project in Thailand

MRC -- Toyo Engineering Corp. (Tokyo) has been awarded engineering and procurement contract for an acetylene black project by Denka SCGC Advanced Materials Co., Ltd., a joint venture company of Denka Company Ltd. and SCG Chemicals plc (SCGC; Bangkok, Thailand), said Chemonline.

Acetylene Black is a type of carbon black used for applications such as EV lithium-ion batteries and high-voltage transmission cables for offshore wind power generation and contribute to carbon neutrality. TOYO’s proposal for an optimal design and procurement plan that would enable early completion of the project and extensive project experience in Thailand was highly evaluated and led to the contract award.

Taking advantage of the expertise we have gained in the plant engineering business, TOYO will contribute to the development of both companies in the petrochemical product field, as well as to the realization of a carbon-neutral society and the rapid growth in the Southeast Asian market.

We remind, Braskem, the leading global biopolymer producer, announced the opening of its Representative Office in Tokyo, Japan one of the key markets for Braskem's I'm greenT bio-based Polyethylene (PE), said the company.
This expansion reinforces our continuous commitment to the Japanese market and the continued development the biopolymer solutions based on renewable feedstock.

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