Norwegian chemical recycler quantafuel fully acquired by Viridor

The acquisition process for Quantafuel by Viridor commenced approximately a year ago, with Viridor proposing a deal valued at around £90 million, said Chemanalyst.

As part of this proposal, Viridor also pledged additional capital to support Quantafuel's ongoing development efforts. This initiative aimed to bolster Quantafuel's position in the market and enhance its growth trajectory. Fast forward to May 2023, and Viridor assumed the role of majority shareholder in Quantafuel, marking a significant milestone in the acquisition process.

Viridor's interest in acquiring Quantafuel was sparked by an announcement made by Quantafuel in October 2022. At that time, Quantafuel revealed its intention to conduct a strategic review aimed at identifying potential financial partners. This strategic review was initiated to address short-term liquidity challenges faced by Quantafuel and to explore sustainable financial solutions to support the company's growth and development initiatives.

At the heart of Quantafuel's innovative approach lies its pioneering plastics-to-liquids process. This cutting-edge technology enables the conversion of waste plastics into a raw material that closely resembles refined products derived from virgin fossil fuels. This transformative process holds immense potential for the chemicals industry, offering a sustainable solution for the production of new plastics. Notably, Quantafuel's technology is particularly adept at processing plastic films, which are notoriously challenging to recycle through conventional mechanical methods. These conventional methods often result in a downgrade in quality, rendering the recycled material unsuitable for many applications. Moreover, traditional recycling processes are ill-suited for applications in the food sector due to stringent food safety regulations.

Headquartered in Oslo, Quantafuel operates a demonstration plant located in Skive, Denmark. Additionally, the company has ambitious plans to establish additional facilities in the UK and Dubai. This expansion reflects Quantafuel's commitment to scaling its operations and leveraging its innovative technology to address global plastic waste challenges. The integration of Quantafuel into Viridor Polymers serves to strengthen Viridor's position as a key player in the polymers reprocessing domain. Moreover, this integration underscores the shared commitment of both companies to driving innovation and catalyzing the transition toward a circular plastic economy.

Viridor has expressed its intention to leverage Quantafuel's technological expertise as a catalyst for further advancements in the field of plastics recycling. This strategic alignment aligns with Viridor's broader vision to lead innovation in the plastics recycling sector and achieve comprehensive plastic circularity by 2025. By harnessing the synergies between their respective expertise and resources, Viridor and Quantafuel are poised to unlock new avenues of innovation and drive forward the transition toward a more sustainable and circular future.

The acquisition of Quantafuel by Viridor represents a significant milestone in the journey toward sustainable waste management and circularity in the plastics industry. Through collaboration and innovation, both companies are well-positioned to address the complex challenges associated with plastic waste and drive meaningful progress toward a more sustainable and circular future.

We remind, the Circular Plastics Case Competition, now in its second iteration, is making a comeback, presenting a platform for emerging business professionals to revolutionize the plastics value chain. Organized by non-profit organization Net Impact in collaboration with Hillenbrand Inc and The Coca-Cola Company, this competition challenges participants to devise innovative solutions that keep plastics within the economy, reducing environmental impact.

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INEOS Inovyn announces a new Ultra Low Carbon range (ULC) of Chlor-Alkali products that reduce the carbon footprint of caustic soda, caustic potash and chlorine by up to 70% compared to industry averages, said the company.

The new range uses renewable energy sources to power INEOS Inovyn manufacturing sites. The first production sites include Rafnes in Norway, which uses local hydroelectric power and Antwerp in Belgium, where electricity comes directly from North Sea wind turbines.

Customers using the ULC Chlor-Alkali range will now be able to significantly reduce their scope 3 emissions, to develop sustainable downstream products which address their own market needs. The range is certified under the ISCC (International Sustainability & Carbon Certification) PLUS scheme.

INEOS Inovyn, Europe’s largest Chlor-Alkali producer already provides a range of standard products with the lowest industry carbon footprint in Europe, recognised through its Environmental Product Declarations (EPD). Today’s announcement represents a major step in its ongoing sustainability journey.

‘INEOS Inovyn’s standard Chlor-Alkali portfolio already offers 30% lower Green House Gas emission than the European industry average. With the launch of our new ULC range this gap increases to 70% for caustic soda, helping customers meet their ambitious GHG reduction targets,’ adds Arnaud Valenduc.

We remind, INEOS Electrochemical Solutions (IES), a global leader in electrolyser manufacturing for chlor-alkali applications, is proud to announce a new contract with Tamilnadu Petroproducts (TPL), a leading Indian manufacturer of industrial intermediate chemicals at their Chennai facility in India.

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Russia's January seaborne oil product exports fell 8.6% from a year earlier and 2% from the previous month to 10.792 MMt owing to lower processing and unplanned refinery repair work, data from industry sources and Reuters calculations showed, said Hydrocarbonprocessing.

Several large Russian refineries have been hit by drone attacks and outages over the past two months. As a result, oil processing in January dropped 4% from a year earlier and 1.4% from the previous month, Kommersant newspaper reported.

Total oil products exports via the Baltic ports of Primorsk, Vysotsk, St. Petersburg and Ust-Luga last month fell 13.7% year on year and 6% from December to 5.646 million tons, data from market sources showed. Fuel exports via Russia's Black Sea and Azov Sea ports decreased last month by 5.2% from January 2023 to 4.296 million tons.

Oil products export supplies from the Russian Arctic ports of Murmansk and Arkhangelsk fell in January by 10.6% on a yearly basis to 184,100 tons. Fuel export loadings at Russia's Far East ports rose by 24.3% from January last year to 666,300 tons, data from sources and Reuters calculations showed.

Russia last year announced a voluntary reduction to crude oil and fuel exports by 300,000 barrels per day (bpd) and 200,000 bpd respectively from the average for May-June 2023 to support the energy markets.

We remind, Russian energy company Novatek resumed gas condensate processing at its Ust-Luga complex on Feb. 11, two industry sources said on Wednesday, after the site was damaged last month by a suspected Ukrainian drone attack. The complex processed about 18,000 metric tons of gas condensate over Feb. 11-12, the sources said. Novatek did not respond immediately to a request for comment.

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Nigeria's Dangote oil refinery has issued tenders to sell two fuel cargoes for export, the first from the newly commissioned refinery, said Hydrocarbonprocessing.

The refinery, Africa's largest with a nameplate capacity of 650,000 barrels per day, was built on a peninsula on the outskirts of the commercial capital Lagos by the continent's richest man Aliko Dangote.

Nigeria has for years relied on expensive imports for nearly all the fuel it consumes but the $20 billion refinery is set to turn it into a net exporter of fuel to other West African countries, in a huge potential shift of power and profit dynamics in the industry. Dangote declined a Reuters request for comment.

The first cargo is 65,000 metric tons of low-sulfur straight run fuel oil, which Dangote has awarded to Trafigura and is due to load at the end of February, three of the sources said. Trafigura declined to comment. At least one refiner said they had been offered the cargo by Trafigura without elaborating further.

The second tender is for about 60,000 tons of naphtha, three other sources said. Two of them added that the tender closes on Feb. 15. Loading details were not immediately available. Sources told Reuters last week that the refinery was preparing to deliver its first fuel cargoes to the domestic market within weeks.

The two fuels on offer are typical products of running light sweet crude through a crude distillation unit (CDU) in a refinery without further upgrading capacity. It is expected to take months for upgrading units to be brought online, experts have said.

The refiner began buying crude in December last year and Nigeria's state-owned oil firm NNPC Ltd has been the main supplier. Dangote has also purchased some U.S. oil and is expected to receive 2 million barrels of U.S. WTI Midland in early March, according to LSEG and Kpler ship tracking.

We remind, Russia's January seaborne oil product exports fell 8.6% from a year earlier and 2% from the previous month to 10.792 MMt owing to lower processing and unplanned refinery repair work, data from industry sources and Reuters calculations showed. Several large Russian refineries have been hit by drone attacks and outages over the past two months. As a result, oil processing in January dropped 4% from a year earlier and 1.4% from the previous month, Kommersant newspaper reported.

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Borealis, Switzerland’s largest producer of renewable energy and Axpo, an international leader in the trading and marketing of solar and wind power, have again joined forces and signed their fourth and fifth power purchase agreements (PPA), said the company.

In January 2024, Axpo began the supply of 125 GWh of renewable energy a year to Borealis facilities in Stenungsund, Sweden. Under a ten-year agreement, green electricity will be provided by the onshore wind farm Lake Wind AB, in Habo, Sweden, owned by an infrastructure fund managed by Vauban Infrastructure Partners.

Furthermore, Borealis is making significant strides towards its objective of sourcing 100% of electricity for its Polyolefins and Base Chemicals business units from renewable sources by 2030. The recently established PPAs with Axpo are expected to lead to a substantial reduction of approximately 14,955 metric tons of annual Scope 2 emissions (indirect greenhouse gas emissions resulting from the purchase or acquisition of electricity, steam, heat, and cooling).1 Over the ten-year PPA period at Borealis' operations in Sweden and Belgium, this equates to a noteworthy decrease of 149,550 metric tons in Scope 2 emissions, showcasing the company's commitment to environmental sustainability.

"We are thrilled to announce these additional two major Power Purchase Agreements with Axpo, reinforcing our commitment to driving the energy transition despite market challenges. Our long-term partnership signifies our dedication to re-inventing essentials for sustainable living, accelerating our journey towards ensuring all electricity for our operations comes from renewable sources by the end of this decade," states Wolfram Krenn, Borealis Executive Vice President Base Chemicals & Operations.

Axpo Head of Trading and Sales, Domenico De Luca, says: “We’re delighted to continue to partner with Borealis. Thanks to Axpo’s decade-long experience managing a sizable renewable energy portfolio, we can offer tailored energy solutions for large pan-EU organizations across multiple countries in what has become a new trend across energy markets. Power Purchase Agreements are proving key to advancing the energy transition and we’re pleased to work with companies like Borealis who are committed to securing a sustainable future.”

We remind, Borealis announces that it has signed an agreement for the acquisition of Integra Plastics AD, a Bulgarian advanced mechanical recycling player. Closing of this transaction is subject to customary regulatory approvals.

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