Bain-backed biofuels refiner ties up with China firm to source feedstock

Bain Capital-backed biofuels refiner EcoCeres has tied up with a waste management firm backed by the Chinese city of Shenzhen to source feedstock, the company said on Tuesday, as it expands production of low-carbon fuels to meet fast-growing demand, said Hydrocarbonprocessing.

The pact between Hong Kong-based EcoCeres and Shenzhen Expressway Group, which handles more than 2.5 million metric tons of food waste annually across China, comes as local governments in China step up collection of feedstocks such as used cooking oil (UCO) to cash in on growing global trade in biodiesel and sustainable aviation fuel (SAF).

China's National Energy Administration said in September that local authorities should set up integrated, "closed loop" systems to efficiently collect waste cooking oil from restaurants, process it and refine it into low-carbon fuels - a system the city of Shanghai has had in place for a decade.

The partnership will "create a new model for feedstock procurement and provide a stable and high-quality bio-grease source," EcoCeres said in a statement.

China is the world's largest producer of UCO, with expected output of around 11.4 billion liters this year, or 10.37 million metric tons, according to the U.S. Department of Agriculture (USDA).

However, only 25% to 30% of its waste oil is currently collected, compared with about 80% in the U.S. and other developed economies, said James Tam, managing director at Bain Capital, which invested $400 million in EcoCeres this year.

Most of the waste oil collected from restaurants in China is handled by small, local companies. While Chinese domestic demand for biofuels remains low in the absence of government mandates or subsidy programs, foreign demand for lower-carbon fuels has driven rapid growth in the trade of waste oil feedstocks from China.

In addition to its facilities in China, EcoCeres in June announced plans to build a 350,000-metric ton per year biofuel refinery in Johor, Malaysia, to meet global demand.

UCO traded at about $800 a ton in North Asia in mid-November, according to data from S&P Global Commodity Insights, after peaking at more than $1,600 per ton in May 2022.

At recent prices, the 10.37 million tons of UCO China produces annually is worth around $8.3 billion if collected and treated, according to Reuters' calculations based on USDA figures. "People are sensing this is a commercial opportunity and building an ecosystem for collecting the oil," Tam said.

We remind, The disruption to energy flows in the Red Sea is unlikely to have large effects on crude oil and LNG prices as vessel redirection opportunities imply that production should not be directly affected, Goldman Sachs said. Oil prices advanced on Tuesday, extending gains from the previous session, as attacks by Yemen's Iran-aligned Houthi militants on ships in the Red Sea disrupted maritime trade and forced companies to reroute vessels.

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Evonik’s Biotech Hub is partnering with the Technical University of Munich (TUM) and RWTH Aachen to develop a novel bacterial consortium to strengthen the immune system of chickens and to prevent the colonization by pathogens of their intestinal tract, said the company.

The aim is to enhance health and help reduce the use of antibiotics. Evonik is both a partner in the three-year joint Chicken Synthetic Microbiota (ChiSYN) project and the project coordinator. The total project volume is over €2 million and is funded by the project partners on a pro rata basis and by the Federal Ministry of Food and Agriculture (BMEL).

“For our health, we need healthy food and for that we need healthy animals,” says Christoph Kobler, who heads the Biotech Hub. “Our innovative microbial consortium contributes to both animal health and sustainable human nutrition.”

The aim of the project partners is to develop a prototype feed additive that makes sure that “beneficial microorganisms” colonize the gut of chicks. To achieve this, bacteria that strengthen the immune system and make colonization by pathogens more difficult are selected from a broad population of chickens. The project partners then combine these microorganisms to create a novel consortium.

“In the development of this bacterial consortium, we benefit from our experience of gut simulation and the successful development of probiotics for livestock farming,” says Stefan Pelzer, who heads the In Silico & Target Systems research unit at the Biotech Hub. Pelzer and his team have been working with the dynamic chicken gut simulation model “DAISy” since 2018. They use the findings to develop new gut health products and disruptive, high-precision nutritional concepts that take account of gut bacteria for the first time.

In this project, Evonik’s experience of industrial biotechnology is complemented perfectly by the skillsets of its strategic partners at the universities in Aachen and Munich.

RWTH contributes many years of experience in the systematic collection and investigation of bacterial communities in the gastrointestinal tract of humans and livestock and the isolation and characterization of gut microbiota using high-throughput methods.

TUM examines the effect of selected types of bacteria on the health of chickens. It focuses on the development of the chickens’ immune system and its interaction with pathogens.

We remind, Dow and Evonik are proud to announce the successful start-up and operation of a pioneering hydrogen peroxide to propylene glycol (HPPG) pilot plant at Evonik’s site in Hanau, Germany. Collaboratively developed by Dow, the world’s largest producer of propylene glycol, and globally leading hydrogen peroxide manufacturer Evonik, the plant uses the distinct HYPROSYN method to enable the direct synthesis of propylene glycol (PG) from hydrogen peroxide and propylene.

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The Board of Directors of HEXPOL AB has appointed Klas Dahlberg as CEO and President of the company. He will take up the position latest by 1 July 2024, said the company.

Klas Dahlberg currently holds the position as Head of Business Area NIBE Climate Solutions. He has been with NIBE since 2016 and he has been responsible for NIBE Climate Solutions since 2018. Prior to joining NIBE, he had a successful international career spanning over a 30-year period with the Scania group, with his last position being responsible for the division of Buses & Coaches. Klas has lived and worked in Germany for many years. He holds a M.Sc. in Engineering from Lund University, Sweden.

“It is a pleasure to welcome Klas to HEXPOL. Klas’ substantial international experience, tested leadership skills and successful career will be of high value to the continued strategic development of HEXPOL, with focus on further expansion through acquisitions, organic growth and development of advanced polymer solutions with improved sustainable footprint”, says Alf Goransson, Chairman of HEXPOL AB.

“I am looking forward to, together with all employees at HEXPOL, create value for customers, shareholders and other stakeholders. I am grateful for the trust shown by the Board of Directors and humble before the task to continue the successful journey led by my predecessor, Georg Brunstam”, says Klas Dahlberg.

We remind, HEXPOL Middlefield Has Achieved The International Sustainability And Carbon Certification (ISCC PLUS) As A Rubber Compounding Processing Unit With Mass Balance Chain Of Custody. The International Sustainability & Carbon Certification (ISCC) is a certification program for the Circular Economy that focuses on the verification and traceability of sustainable materials. ISCC is globally recognized as the standard of choice for industry sustainability certifications.

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The disruption to energy flows in the Red Sea is unlikely to have large effects on crude oil and LNG prices as vessel redirection opportunities imply that production should not be directly affected, Goldman Sachs said, said Hydrocarbonprocessing.

Oil prices advanced on Tuesday, extending gains from the previous session, as attacks by Yemen's Iran-aligned Houthi militants on ships in the Red Sea disrupted maritime trade and forced companies to reroute vessels.

Oil major BP temporarily paused all transits through the Red Sea and oil tanker group Frontline said on Monday its vessels would avoid passage through the waterway, signaling that the crisis was broadening to include energy shipments.

"We do estimate that a hypothetical prolonged redirection of all 7 million barrels per day of gross (Northbound and Southbound) oil flows would raise spot crude prices relative to long-dated prices by $3-4/per barrel," the investment bank said in a note dated Monday.

We remind, Bain Capital-backed biofuels refiner EcoCeres has tied up with a waste management firm backed by the Chinese city of Shenzhen to source feedstock, the company said on Tuesday, as it expands production of low-carbon fuels to meet fast-growing demand. The pact between Hong Kong-based EcoCeres and Shenzhen Expressway Group, which handles more than 2.5 million metric tons of food waste annually across China, comes as local governments in China step up collection of feedstocks such as used cooking oil (UCO) to cash in on growing global trade in biodiesel and sustainable aviation fuel (SAF).

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The European Union has granted Slovakia a one-year extension on exporting fuels produced from Russian oil to the Czech Republic, said Reuters.

The country's only refiner, Slovnaft, which is owned by Hungary's MOL, is looking to cut its use of Russian oil but has said it needs more time to do so.

While the EU has imposed sanctions on Russian crude, some countries have exemptions. An exemption allowing the Czech Republic to import Russian-origin crude products expired on Dec. 5.

However, an extension until Dec. 5, 2024 was part of amendments approved as part of a 12th package of EU sanctions against Russia on Monday.

Slovakia had sought the extension. Without it, Slovnaft would lose the ability to export to its neighbour and be left producing only for the domestic market.

We remind, disruption to energy flows in the Red Sea is unlikely to have large effects on crude oil and LNG prices as vessel redirection opportunities imply that production should not be directly affected, Goldman Sachs said. Oil prices advanced on Tuesday, extending gains from the previous session, as attacks by Yemen's Iran-aligned Houthi militants on ships in the Red Sea disrupted maritime trade and forced companies to reroute vessels.

mrchub.com