Cepsa and Evos join up for green methanol storage in Spain and the Netherlands

Spanish energy company Cepsa has signed an agreement with Evos, a liquid energy and chemical storage company with hubs in strategic locations across Europe, to enable the storage of green methanol to be produced by Cepsa at Evos’ storage facilities in Algeciras and Rotterdam, said the company.

The partnership, which also provides for the storage of green ammonia at Evos’ facilities in Algeciras, facilitates the logistics for the transport of green hydrogen products between key strategic ports in Spain and the Netherlands. Cepsa and Evos will also jointly study logistics for biofuels (e.g. Sustainable Aviation Fuel), renewable fuel from non-biological origin and hydrogen carriers, such as liquid organic hydrogen carriers in other terminals of the Evos network in Northwest Europe, including Amsterdam.

The agreement was signed at the Port of Amsterdam in the presence of Dutch Minister for Climate and Energy Policy and Deputy Prime Minister Rob Jetten.

Cepsa CEO Maarten Wetselaar said: “Through strategic partnerships, Cepsa is building a network of green molecule supply stretching from Spain to northern Europe. This alliance with Evos provides crucial storage infrastructure which will enable the flow of green methanol produced in southern Spain into northern Europe, reinforcing the viability of our large-scale green hydrogen projects. Last year, we announced the development of one of the largest green methanol projects in Europe as part of our Andalusian Green Hydrogen Valley, and this new partnership provides us with the end-to-end solution to bring these green molecules to our customers in Northwest Europe as we support decarbonization efforts across the continent.”

Harry Deans, CEO of Evos said: "As Evos extends its reach within the Green Import Corridors of Northwest Europe and propels the growth of our Algeciras terminal in Spain, we are pleased to join forces with Cepsa to provide essential infrastructure to accelerate the energy transition. This collaboration will pave the way for a South-North corridor for green hydrogen products, aligning seamlessly with the strategy for our eight terminals, located in key strategic ports, to lead the energy transition in partnership with our clients.”

Cepsa is developing alongside partners the Andalusian Green Hydrogen Valley that which will entail two green hydrogen plants with a total capacity of 2 GW, a green methanol plant that aims to reach an estimated annual production capacity of 300,000 tons, and a green ammonia plant with an annual production capacity of up to 750,000 tons. In addition, Cepsa has started building a second-generation biofuels plant in Huelva as part of a joint venture with Bio-Oils that will create the largest facility of its kind in southern Europe with the capacity to flexibly produce 500,000 tons of Sustainable Aviation Fuel (SAF) and renewable diesel annually.

Evos is enhancing its strategic presence in the Green Import Corridors of Northwest Europe, focusing on the storage and handling of green hydrogen derivatives and renewable fuels. Meanwhile, in Spain, Evos is progressing the expansion of its Algeciras terminal as a renewable export hub. Across all Evos terminals, infrastructure for green bunker fuels, such as green Ammonia and green Methanol, is undergoing development.

We remind, Cepsa and Air Europa have sealed an alliance whereby the energy company will supply 14.4 tons of SAF to the airline for one year to cover the first monthly Madrid-Havana flight. This is the first time that two companies in Spain have established a regular supply of this sustainable fuel for a specific air route. During the period of collaboration between Cepsa and Air Europa, the emission of around 50 tons of CO2 will be avoided, equivalent to planting 575 trees.

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Malacca Far Eastern New Century Corp. (FENC) said it has broken ground for the expansion of its green polyethylene ter-ephthalate (PET) production plant, FE Green PET, in Malacca, Malaysia, said the company.

The new line, which will use locally-sourced waste PET bottles as raw material, will have a production ca-pacity of 50,000 t/y of food-grade recycled PET. Opera-tions are expected to begin by mid-2025.

In response to the challenges of global climate change, Far Eastern New Century is taking proactive measures.

Through technological innovation, energy-efficient equipment, and carbon capture technologies, FENC aims to reduce carbon emissions by 20% by 2025, 40% by 2030, and achieve net zero by 2050, FENC not-ed.

It was previously reported that Alpek, Indorama Ventures and Far Eastern New Century (FENC) decided to suspend construction of a polyethylene terephthalate (PET) plant in Texas. The complex is located in Corpus Christi, Texas. It was planned that the enterprise would include a production capacity of 1.1 million tons of PET per year. Another production facility will have a capacity of 1.3 million tons of purified terephthalic acid (PTA) per year.

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LyondellBasell opened the plastics recycling joint venture (JV) in Zhaoqing, Guangdong Province in Southern China with Genox Recycling (Genox), said the company.

The plastic recycling plant will use mechanical recycling technology to recycle plastic waste and produce new polymers, adding to the LyondellBasell CirculenRecover product portfolio. The JV will operate under the name Guangdong Genox LyondellBasell New Material Co., Ltd.

“Today’s announcement demonstrates our progress on recycling investments. This joint venture is linked to LYB’s commitment to support a circular economy for plastics and is part of our strategy to expand our circular polymer offering in China,” said Yvonne van der Laan, LyondellBasell executive vice president, Circular and Low Carbon Solutions. “This partnership with Genox enables us to create local recycling solutions for customers and brand owners in China in support of their ambitious targets.”

Today we celebrate the opening of our pioneering joint venture facility with valued partners, customers, employees and local stakeholders.” said Allen Yu, LyondellBasell senior vice president, Asia Pacific. “The JV opening demonstrates our determination to support the growth of our customers in the region by driving sustainable solutions together with our partners.”

“This new JV is an execution of LyondellBasell’s strategy of building a strong and profitable Circular and Low Carbon Solutions business in Asia”, said Limin Fu, vice president of LyondellBasell China’s Joint Venture Management and Polyolefins, chairman of Guangdong Genox LyondellBasell New Material Co., Ltd., “The JV combines the strengths of both shareholders to deliver the result we see today. This includes partnering with Genox through an off-take business, developing innovative products to meet customer’s needs, growing our capability into the entire plastics recycling value chain. This new joint venture will help develop the local plastics recycling infrastructure in China and contribute to a circular economy.”

“Genox is constantly exploring the industry value chain, and we are delighted to partner with LyondellBasell so we can leverage our advantages to lead the development of plastics recycling,” said Jingfa Jiang, chairman of Genox Recycling. “Together we can accelerate a circular and low-carbon future . ”

LyondellBasell is also dedicated to educating, training and preparing tomorrow’s workforce to be future leaders in the industry. On the same day of the JV opening, LyondellBasell contributed to one local elementary school and one middle school with a cash donation and stationary made from the recycled plastics produced from the new JV. LyondellBasell strives to be a responsible, good neighbor in the communities where they operate and make positive impacts.

We remind, LyondellBasell and Encavis Asset Management AG (Encavis AM) today announced they signed a power purchase agreement (PPA) to secure 208 megawatts (MW) of renewable electricity generation capacity from the solar park in Bartow, Germany. This solar park will rank among the largest of its kind in Germany. Under this 12-year PPA, Encavis AM will deliver approximately 210 gigawatt-hours (GWh) of solar power to LyondellBasell annually.

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Borealis on target with capacity hikes for cross-linked polyethylene, compounding at Ruwais and Antwerp, said the company.

Borealis and Borouge are united in their dedication to supporting the shift to renewable energy sources. With their long history of partnership to the global wire and cable industry, they stand ready for this challenge.

Borealis is co-investing with ADNOC in a 100,000 metric tons capacity expansion at Borouge’s facility in Ruwais, Abu Dhabi. The plant produces cross-linked polyethylene (XLPE) compounds based on Borealis’ propriety Borlink™ technology. The expansion will support the parties to address the growing demand for wire and cable compounds across Asia and the Middle East. The project is set to be finished by the end of 2025.

Borealis is nearing the completion of a major upgrade to its semicon compounding assets in Antwerp (BE)—part of a EUR 200 million investment in its XLPE and semicon assets in Antwerp and Stenungsund (SE). The expansion of the Antwerp facility is critical to meet strong demand for advanced semicon compounds for HVDC applications, particularly for global offshore wind and interconnector projects. It is set to be completed by the third quarter of 2024.

Since joining the Borealis group in 2020, DYM Solution Co Ltd (DYM), based in South Korea, has played a crucial role in enhancing Borealis and Borouge's presence in Asia and the Middle East. Borealis has now begun to multi-source some of its products with DYM for manufacturing. One of the first products to be successfully multi-sourced is a Borealis cable solution, which has already been qualified by local cable producers.

Borealis strengthens North American operations with broadening of wire and cable offering at Baystar. Baystar, Borealis’ joint venture with TotalEnergies, will begin providing jacketing compounds, enhancing Borealis’ offering to the North American wire and cables industry. This marks a major milestone in Borealis’ geographical expansion strategy.

“By expanding our global asset base and investing in new market-leading products, we are underlining our commitment to the global wire and cable industry. Our investments are aimed at supporting our partners to lay a solid foundation for the future of energy,” Thomas Reutter, Borealis Vice President Product Asset Management and Supply Chain, Commercial Vice President Energy.

We remind, Borealis closes the acquisition of Integra Plastics AD, a Bulgarian advanced mechanical recycling player, said the company. The acquisition enhances Borealis’ portfolio of advanced mechanical recyclates by adding more than 20,000 tons of recycling capacity per year, strengthening its ability to meet growing customer demand for more sustainable solutions.

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China Petrochemical Corporation (SINOPEC) has officially become a shareholder in the Polyethylene project, a report from the press service of the Kazakh government said, as per Interfax.

Prime Minister of Kazakhstan Olzhas Bektenov met with Sinopec President Zhao Dong and CEO of SIBUR Mikhail Karisalov on Friday, the press service said. Discussions centered on the collaborative development of an integrated gas-chemical complex for polyethylene production valued at USD7.7 billion. With a capacity of 1.25 million tonnes per year, the project will eventually represent 1% of global capacity.

"During the meeting, a trilateral protocol was signed, officially marking Sinopec's entry into the project as a participant. The ownership structure now includes KazMunayGas with 40%, Sinopec with 30% and SIBUR with 30%," the statement said.

A gas separation complex will be built at the Tengiz field to supply raw materials (ethane) to the Polyethylene project. Its capacity will reach 9.1 bcm of dry gas processing per year, with the goal of producing 1.6 million tonnes of ethane.

Ethane will be transported via the main pipeline from Tengiz to the Karabatan site in the Atyrau region, where a polyethylene production plant will operate.

The project aims to produce approximately 22 grades of polyethylene using licensed technologies from American companies Chevron Phillips and Univation, with premium products accounting for 40% of production. Polyethylene is widely used in various industries and households, making it the most popular polymer globally.

Construction of the plant is scheduled for completion by 2029, and will create over 8,000 jobs during construction and nearly 850 jobs during operation.

The government is backing the project, which will be located in a special economic zone with suitable infrastructure and tax benefits. Prime Minister Bektenov stressed the significance of optimizing local resources for the project's success.

"Our economy prioritizes high-value production, especially in manufacturing goods with rapidly growing added value within the export-oriented chain. For example, polyethylene represents a value added that is 20 times greater than its raw material, ethane, with an increase from USD80-90 to $1600-1800 per tonne. The Polyethylene project is expected to provide a significant boost to both the manufacturing sector and the country's overall economy," Bektenov said.

Analysts estimate that the project's contribution to the country's GDP by 2030 could reach approximately 1.2%, Bektenov said.

The Samruk-Kazyna state fund, KazMunayGas, SIBUR Holding and participants from the operating companies of the Polypropylene and Polyethylene petrochemical projects signed the main documents in November 2022 on the creation of joint ventures using Kazakhstan Petrochemical Industries and Silleno LLP as their basis (The "Polyethylene" project). The parties determined the terms of partnership in the joint venture, in particular, investment in the project, as well as the procedure for selling the enterprise's finished goods. An agreement was signed in May 2023 on the entry of Chinese Sinopec into the Polyethylene project as a full partner.

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