OMV, Borealis, Tomra ink long-term recycling feedstock supply agreements

OMV and Borealis have entered into long-term feedstock supply agreements for their recycling facilities with TOMRA Feedstock, a subsidiary of leading sorting technology producer TOMRA, said the company.

These agreements ensure a consistent supply of sustainable and high-quality raw materials for OMV Group’s recycling operations. OMV will process feedstock supplied from TOMRA Feedstock plants in its ReOil® plants in Austria, while Borealis will process feedstock produced by TOMRA at its mechanical recycling operations in Europe. The feedstock will be produced from mixed post-consumer plastic material otherwise lost to landfill and incineration at a first-of-its-kind sorting facility currently being developed by TOMRA in Germany. By contributing to the OMV Group’s strategic targets of producing circular products and solutions, these agreements play a crucial role in closing the loop in plastics to accelerate the transition to a circular economy.

TOMRA is a global leader in sensor-based sorting systems for metal and waste recycling and is currently building a sorting plant in Germany that will have an input capacity of 80,000 metric tons per annum and be operational at the end of 2025. TOMRA Feedstock has pioneered an innovative process that transforms pre-sorted mixed post-consumer plastic waste – materials that would otherwise end up in incineration – sorted into clean fractions of specific polymer types. These fractions can then be further processed in mechanical and chemical recycling plants such as those run by OMV and Borealis.

OMV has signed a long-term contract for the supply by TOMRA Feedstock of chemical recycling feedstock. This feedstock will be used for OMV’s self-developed and patented ReOil® technology for chemical recycling – thereby replacing virgin polyolefins. This will make a significant contribution to meeting recycling targets.

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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Despite a rise in crude values, propylene prices remained stable in Asia on Thursday, 25 April, said Polymerupdate.

An industry source in Asia while requesting to remain unidentified informed a Polymerupdate team member, "Prices were assessed flat on account of muted buying trends in the Asian regions".

On Thursday, FOB Korea propylene prices were assessed at the USD 815-825/mt levels, rolled over day on day.

CFR China propylene prices on Thursday were assessed at the USD 845-855/mt levels, steady from Wednesday?s assessed levels.

In plant news, Fujian Refining and Petrochemical (FREP) has restarted its No.3 Polypropylene (PP) unit this week. The unit was shut for maintenance in mid-April 2024. Located in Quanzhou, China, the No. 3 PP unit has a production capacity of 220,000 mt/year.

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Asahi Kasei has announced plans to establish an integrated plant in Ontario, Canada, dedicated to the manufacturing of base film and coating for Hipore™ wet-process lithium-ion battery (LIB) separator, said the company.

The company has entered into a preliminary agreement with Honda Motor Co., Ltd. (Honda) for potential joint investment in this plant. Additionally, Asahi Kasei Battery Separator Corp., set to be established in October 2024, will receive financial backing from the Development Bank of Japan Inc. (DBJ) through preferred share issuance. Moreover, support from both the federal government of Canada and the provincial government of Ontario is anticipated for this investment.

As part of its expansion strategy, Asahi Kasei is investing in a new integrated plant located in Ontario, Canada. This facility will focus on the manufacturing and coating of base film for Hipore™ lithium-ion battery separators, a key component in battery technology. The total investment for this venture is estimated to be around ?180 billion, reflecting the company's commitment to innovation and sustainability. Once operational, the plant is expected to have an impressive production capacity of approximately 700 million square meters per year, in terms of coated film. Commercial operations are slated to begin in 2027, marking a significant milestone in Asahi Kasei's global presence and contribution to the advancement of clean energy solutions.

ES Materials Holdings Corp., the North American arm of the separator business, will provide the required funding for this investment to ES Materials Canada Corp., the Canadian separator business entity, and E-Materials Canada Corp., the local manufacturing company tasked with plant construction and operations.

In its medium-term management plan for fiscal 2024, Asahi Kasei identifies its Energy Storage business as one of the "10 Growth Gears" (GG10) crucial for future expansion under the theme "Be a Trailblazer." Central to this business is the Hipore™ wet-process LIB separator, which boasts over 40 years of technological evolution and has expanded its market presence beyond consumer electronics to include automotive applications. Responding to the growing demand for battery separators in North America, particularly for plug-in electric vehicles, and in alignment with governmental clean energy policies fostering the establishment of North American LIB supply chains, Asahi Kasei has decided to establish an LIB separator manufacturing plant in Ontario, Canada.

Asahi Kasei and Honda have entered into a preliminary agreement recognizing the necessity of building a robust supply chain to ensure a consistent provision of high-performance batteries for the expanding North American plug-in electric vehicle market. Discussions are underway for the potential establishment of a joint venture aimed at producing Hipore™ separators tailored for electric vehicle batteries manufactured by Honda and other automakers targeting the North American market.

“Manabu Ozawa, Managing Executive Officer at Honda, articulated the company's ambition for achieving carbon neutrality by aiming for all global sales to come from EVs and FCVs by 2040. “The separator plays a crucial role in enhancing the performance and longevity of batteries, vital components for EVs. We are thrilled to collaborate with Asahi Kasei, a company renowned for its advanced technology and extensive knowledge in separators. This partnership will enable us to develop highly competitive EVs capable of meeting the increasing demand in the North American market.”

“Over the medium term, the Hipore™ business is poised to be a significant driver of growth for Asahi Kasei,” remarked Hiroyoshi Matsuyama, Senior Executive Officer of the company. “It's crucial for us to seize market opportunities in North America. Teaming up with Honda, a key player with a strong presence in the North American automotive market and a proactive approach to electrifying its vehicle range, empowers us to make substantial strides in enhancing LIB performance. This partnership aligns with the anticipated expansion of the electric vehicle market and the ongoing energy transition in North America.”

As part of the initiative to build a manufacturing facility for Hipore™ separator in Canada, Asahi Kasei Battery Separator Corp. will secure ?28 billion in funding by issuing preferred shares to DBJ. This investment aims to boost the competitiveness of the LIB separator business and enhance the supply capabilities of LIB components.

Asahi Kasei aims to scale production appropriately to match market growth while mitigating investment risks. It anticipates financial assistance from both the federal government of Canada and the provincial government of Ontario, facilitated by Invest Ontario, the investment attraction agency. This support is expected to align with the memorandum of understanding signed in September 2023 between Canada and Japan regarding battery supply chains.

We remind, Asahi Kasei Bioprocess and Asahi Kasei Microza Co., Ltd. (AKMH), both affiliated companies of Asahi Kasei Medical Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President: Ken Shinomiya), hereby wishes to announce that the Asahi Kasei (China) Bioprocess Technical Center (CBTC) celebrated its official opening on November 23, 2023. The new Technical Center is located in Suzhou City, Jiangsu Province, People’s Republic of China.

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Sahara International Petrochemical Co. (Sipchem) plans a scheduled shutdown of plants affiliated with its subsidiaries, International Vinyl Acetate Co. (IVC), International Acetyl Co. (IAC) and International Gases Co. (IGC), for periodic and preventive maintenance, according to a statement on Tadawul.

The company anticipates a four-week halt starting May 1, as part of its 2024 business plan and budget. This maintenance aims to enhance reliability and support future operational strategies.

The financial impact of the shutdown will be based on the actual duration of turnaround and average sales prices, which will appear in the second quarter of 2024.

Sipchem has taken all necessary precautions to mitigate any disruption to its customers and will announce updates on any new developments in due course.

We remind, Sahara International Petrochemical Co., also known as Sipchem, has initiated the world’s largest calcium chloride operation at their factory. Based in Saudi Arabia, the Khair Inorganic Chemical Industries Co., also known as InoChem, will operate a greenfield of soda ash and calcium chloride industrial complex spanning over 800,000 sq. meters of land in Ras Al-Khair.

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Kazakhstan exported 30,000 tonnes of polypropylene to Europe last year, and is aiming to increase shipments to 100,000 tonnes, Deputy Energy Minister Askhat Khasenov said, as per Interfax.

"In 2023, we exported 30,000 tonnes of Kazakh polypropylene to Europe, and we plan to increase the volume to 100,000 tonnes in the future," Khasenov told reporters on Thursday.

Khasenov noted that polypropylene is "the second most popular plastic in the world," with consumption growing by an average of 3%-4% annually.

The polypropylene production plant of Kazakhstan Petrochemical Industries Inc. LLP launched operations in early November 2022. The facility has capacity of 500,000 tonnes of polypropylene per year, utilizing propane from the Tengiz field as raw material. Constructing the complex cost the participants USD2.63 billion, including the engineering, procurement and construction (EPC) agreement totaling USD1.865 billion.


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