COAL

Sinopec to build coal-based MTO project in China

China Petroleum and Chemical Corporation (Sinopec), the second largest oil and natural gas producer in China entered an agreement with the government of Hebi city in China’s central Henan province to jointly develop a 1.8 million ton per year coal-based methanol to olefin (MTO) project.

Sinopec will be responsible for the chemical production of the project and Henan Coal Chemical Industry Group will be responsible for the coal mining.

According to the agreement, Sinopec Group, the parent company of Sinopec, and the local government would set up a joint venture within the third quarter of 2010 and complete a feasibility study and environmental impact assessment for the project before the end of this year.

The project is estimated to cost as much as USD 2.5 billion in the first phase of development.

Comments: The plant emphasizes the importance that the Chinese government is placing on using the country’s large coal reserves to reduce its heavy dependence on imported olefins and drive further economic growth. The main driver behind the coal-based projects is to reduce China’s dependence on imported oil and plastic products.

The Hebi project is also part of Sinopec’s broader strategy to enlarge its production output in a bid to compete with PetroChina Co., Ltd., the largest oil producer in China. Sinopec is also planning coal-based chemicals projects in Shanxi Province and Gansu Province.

Linc Energy seeks a JV partner for its UCG/GTL project

Australia’s leader in clean technology, Linc Energy, is seeking a joint venture partner to develop its planned commercial-scale coal gas-to-liquids plant at an approximate cost of USD 918 million for the 20,000 barrels per day plant.

Linc Energy expects to achieve full commercialization of the technology in two years. The company seeks a partner to share the investment cost and reduce its risk profile, as well as add value to the business.

Due to the economy, building plants in Australia is about 40 percent higher than in most parts of North America. Therefore, Linc Energy is interested in producing plant parts in Asia and shipping them to Australia.

Linc Energy expects the cost of coal in the ground to be about a cent per ton or less and produces diesel for A$28 per barrel.

Linc Energy has been carrying out exploration in the coal-rich Walloway Basin in South Australia to identify a suitable location for the commercial operation of its technologies.

Comments: Brisbane-based Linc Energy is an innovative energy company engaged in the development of underground coal gasification (UCG) and gas-to-liquid (GTL) conversion. The combination of these two technologies has the potential to economically convert ‘stranded coal’ from deep underground, into ultra-clean liquid fuels.

Last year, Linc Energy began its UCG/GTL demonstration facility in Chinchilla in Queensland, Australia. Linc Energy is also working to expand its technology outside of Australia.

Linc Energy is also working to expand its technology outside of Australia. The company has coal assets across the U.S. Additionally, the company is also working with Vietnam National and Coal and Industries Group and Japan’s Marubeni Corp. for a trial UCG project in Vietnam’s Red River Delta Region.

Recently, Linc Energy agreed to sell a coal tenement to India-based Adani’s Australian subsidiary. Through this deal, Linc has also secured exclusive rights to jointly develop any proposed future UCG operations in this coal tenement.

Pucheng to build a DMTO plant in China

Pucheng Clean Energy Chemical Co., Ltd., a joint venture between Shaanxi Coal Chemical Group Co., Ltd. and China Yangze Sanxia Group Co., Ltd., will build a dimethyl ether/methanol-to-olefin (DMTO) plant in Pucheng, Weinan, Shaanxi province in China.

The first phase of the integrated coal-to-olefins complex includes a 1.8 million tons per year methanol project and 680,000 tons per year olefins unit with an investment of approximately USD 2.6 billion. And the second and third phase is planned to build a 5 million tons per year methanol project and 2 million tons per year olefins units. Shaanxi Coal Chemical will provide the coal for the proposed plant.

The Wison Group Holding Company has bid for the basic engineering design services of the 300,000 tons per year polyethylene facility in the first phase. The first phase is scheduled for startup in 2013.

NATURAL GAS

Dow and Saudi Aramco revive plans

U.S.-based Dow has confirmed its intention to engage in the multi-billion dollar investment in Saudi Arabia. The originally planned site was the Ras Tanura refinery; however, this has shifted to Jubail.

The decision came after evaluating potential infrastructure benefits and business integration opportunities. However, due to the fear of eroding feedstock price advantages, Dow anticipates this to be the last project of its kind in the Middle East.

The project between Dow and Saudi Aramco was first planned in 2007 to expand the 550,000 barrels per day Ras Tanura refinery to be integrated with a petrochemicals, chemicals, and plastics complex. The estimated cost was USD 20 billion. At the time, Saudi Aramco had also planned other refinery investments and was likely to drop the Ras Tanura project.

This would put the downstream project with Dow at risk and would have to consider an alternative source of naphtha feedstock for the petrochemical plant, which was to be configured to use a mixture of ethane and naphtha.

Dow and Saudi Aramco are expected to begin the front-end engineering and design (FEED), which is expected to be completed by 2011.

The companies aim to manufacture products that can be used as building blocks for other products, including propylene oxide, epichlorohydrin, and acrylic acid, and can take advantage of the competitive feedstock. The complex is expected to come on-stream in the middle of the decade.

Comments: The economic downturn impacted several foreign investments in the energy sector in the Middle East region. Several factors including escalation of costs, the impact of the global recession on the market, and feedstock supply caused the cancellation and delay of several projects.

Dow and Saudi Aramco’s move to Jubail will allow the project to secure naphtha from the refinery that Saudi Aramco is building in partnership with Total. Additionally, Jubail offers an established infrastructure of petrochemical plants.

The supply of natural gas and ethane is becoming tighter in the Middle East, as governments are phasing out energy subsidies. Saudi Arabia is expected to begin increasing the cost of ethane to petrochemical plants. Currently, the price is USD 0.75 per MMBTU and is considered significantly lower than the cost of production.

Additionally, Iran is moving towards privatizing its state-run National Petrochemical Company (NPC) and removing the subsidy on ethane supplies.

These measures are leading to the trend toward higher feedstock prices, which could reduce the region’s competitive edge.

Sipchem starts-up VAM plant

The Saudi International Petrochemical Co. (Sipchem) has started up its vinyl acetate monomer (VAM) plant with its affiliate International Vinyl Acetate Co., in Jubail, Saudi Arabia. The plant is designed to produce 330,000 tons per year of VAM.

Sipchem started up its associated 345,000 tons per year of carbon monoxide and 450,000 tons per year of acetic acid plants at Jubail in June. The acetic acid is being produced through Sipchem’s subsidiary International Acetyl Company.

Comments: Sipchem produces methanol from natural gas and benefits from Saudi Arabia’s gas subsidies. With the new complex, the company will now be able to convert part of its methanol output into acetyl products.

VAM production is the first step to adding value to its acetyls complex, which came on-stream in June. The complex’s production structure will allow Sipchem to further strengthen economies of scale and improve its overall capacity utilization.

The next phase of development will be an integrated olefins and derivatives complex that will consist of a 1.3 million tons per year cracker unit that will produce ethylene and propylene, which will be used to produce about 800,000 tons of polymers.

By venturing into downstream products, Sipchem will be able to achieve full vertical integration that will allow the company to move towards more value-added products, offering stable margins and growing earnings.

Iran seeks cooperation in petrochemicals

Iran has proposed the establishment of an OPEC-type organization for petrochemical exporters to include several countries, including Iran, Saudi Arabia, Russia, Qatar, Turkey, and some others.

The proposed group would adopt policies covering the presence in target markets, the pricing of products, and a mechanism for the production of each petrochemical product by different countries.

Currently, the proposal for the establishment of the organization is being developed. Russia and Turkey have been noted to have expressed interest in cooperating with Iran on petrochemicals projects, as well as upstream projects. However, Russia’s primary focus is on the upstream sector. In comparison, Turkey is more interested in the downstream sector, as it has not had any major development in the past in the upstream business. Turkey-based Petkim and Yorkim are already active in Iran, as they have made agreements to construct petrochemical plants.

Comments: Currently, Iran’s share in the global production of petrochemicals is less than 2.5 percent and accounts for about 25% of the production in the Middle East.

Iran was also involved in the creation of the Gas Exporting Countries Forum to bring together major gas exporters. Iran has the world’s second-largest gas reserve after Russia.

Iran’s petrochemicals and oil and gas sector has been impacted by the reluctance of foreign firms to invest in the country due to recent UN sanctions.

Iran plans to invest USD 25 billion to double its petrochemical production to 100 million tons per year in the next five years.

In efforts to revitalize the industry with financing and technology, Iran plans to privatize its state-run National Petrochemical Company (NPC) by 2011. As a government entity, NPC has been able to secure feedstock at competitive prices. However, as a privatized entity, the NPC is likely to be subject to significantly higher prices for Iran’s natural gas.

The price of natural gas in Iran has been of concern and Iran hopes to set a price for feedstock that would encourage foreign investors. 

Mitsubishi Gas Chemical begins methanol complex in Venezuela

Mitsubishi Gas Chemical and Mitsubishi Corporation have begun production at their second methanol joint venture with Pequiven in Venezuela. The joint venture, Metanol de Oriente (Metor), already operates a 750,000 tons per year methanol facility at Jose in Anzoategui state.

The second facility will also be in Jose and is designed to produce about 850,000 tons per year of methanol. The expected cost of the plant is about USD 136 million. The plant will use the technology jointly developed by Mitsubishi Gas Chemical and Mitsubishi Heavy Industries.

Pequiven has 37.5 percent in Metor, and Mitsubishi Gas Chemical and Mitsubishi Corporation each have 23.75 percent. International Petrochemical Holdings has 10 percent and International Finance Corporation 1 percent. Treasure shares account for 4 percent of the total.

Comments: The global demand for methanol is about 42 million tons per year and is projected to grow at about 4% per year over the next five years.

The product is widely used in formalin and acetic acid production, while it has growing applications, including dimethyl ether.

There has been a shift in methanol production to regions with competitive natural gas resources, such as the Middle East and South America. The start-up of the plant will allow Mitsubishi to increase its methanol sales in the U.S., Europe, and South America, following the start-up of the new plant.

BIO-BASED

Panasonic and Teijin co-develop PLA molding compound with an 80% biomass Ratio

Panasonic Electric Works Co., Ltd. and Teijin Limited have announced their joint development of a highly heat-resistant polylactide (PLA) molding compound made 80% from plant-based renewable feedstock and providing significantly reduced molding cycle time of around half that of conventional PLA compounds.

Panasonic Electric Works has begun selling the new material as its MBA900H PLA molding compound for use in the housings of cell phones and other mobile devices and digital consumer electronics. The initial goal is 1,000 tons of annual production by fiscal 2012 ending in March 2013

Comments: The bioplastic used in the MBA900H is Teijin’s BIOFRONT™, a highly heat-resistant PLA with a melting point of at least 210°C, which is significantly higher than that of conventional PLA. BIOFRONT™ also shows better hydrolytic stability and achieves semi-crystallization in just 20-25% of the time required with conventional PLA. The technology essentially extends the utility of PLA to durable and semi-durable applications. An additional feature of this technology is superior moldability which makes it suitable for various consumer electronics applications.

FKuR launches heat-resistant biopolymers in North America

FKuR Plastics Corp. launched several heat-resistant biopolymers with the brand name Biograde®. Developed particularly for technical applications, Biograde® can be processed on conventional plastics processing machines without the need for modifications.

The product is designed for injection molding applications and is a result of FKuR’s and Fraunhofer UMSICHT’s research work which combines renewable base polymers with additives and compatibilizers processed in FKuR’s dedicated bio-compounding process.

Comments: Biograde® resins are cellulose-based polymers and are thus mainly composed of natural resource materials. The technical properties of Biograde® resins are significantly different from other biodegradable resins on the market today such as PLA or starch-based resins – mainly heat resistance and processability. Biograde® resins are heat resistant up to 232 °F (111 °C) (Vicat A temperature) and have been successfully used in the production of heat-resistant cutlery. As a result, Biograde® can also be used for technical electronic parts and household appliance applications.

New rail spur in Seymour, Indiana extends freight access for Cereplast

Cereplast, Inc. a leading manufacturer of proprietary bio-based, sustainable plastics, announced that it will soon have access to rail freight service at its recently opened facility in Seymour, Indiana.

The rail spur, which is located at Seymour’s Eastside Industrial Park, will enable Cereplast to bulk ship its proprietary biodegradable plastic resins to its growing client base across the United States, and directly to U.S. port cities for shipment to clients in Asia, Europe, and South America.

Comments: Earlier this year, Cereplast relocated its manufacturing facility from Hawthorne, California, to the new facility in Seymour, Indiana. At this facility, Cereplast transforms raw materials into bioplastic resins and sells its resins internationally to companies for use in plastic products that consumers utilize daily around the world. The new rail spur will improve the logistic capabilities of the company. The Company expects to ship 16 million pounds of bio-plastic resins this year, an increase of 400% over 2009.

Gevo to acquire Agri-Energy ethanol production facility to produce isobutanol

Gevo, a privately held renewable chemicals and advanced biofuels company, announced that it has signed definitive agreements to acquire Agri-Energy’s ethanol production facility in Luverne, Minn. Gevo will modify the existing facility to produce isobutanol using the fermentation route. Mechanical retrofitting of the plant will begin upon closing the transaction. Isobutanol production is expected to begin by the first quarter of 2012. During most of the retrofit process, it is expected that the facility will continue to produce ethanol.

Comments: Gevo is a technology company focused on the modification of existing ethanol assets into isobutanol production units. Gevo has developed a proprietary process designed to fit into current ethanol production facilities. The process also enables the production of isobutanol from numerous renewable feedstocks including corn, wheat, sorghum, barley, sugar cane, and cellulosic feedstocks when biomass conversion becomes commercially available. Isobutanol has octane content comparable to gasoline and offers a better blendstock compared to ethanol due to a more favorable Reid Vapor Pressure (RVP). Additionally, Isobutanol can be transformed into Isobutylene utilizing simple dehydration – making it a feedstock for chemicals.

RENEWABLE FUEL

Iowa lab becomes the first-ever BQ-9000 site

The Iowa Central Fuel Testing Laboratory is the first to reach gold. The Fort Dodge-based facility is now the first-ever BQ-9000 accredited laboratory after completing roughly ten months of certification. Overseen by the Independent National Biodiesel Accreditation Commission, BQ-9000 is a voluntary, gold-standard fuel assurance program for producers and marketers. For a producer, the program means the production company is using the system to monitor the quality of their biodiesel, including sampling, testing, storage, retaining samples, and shipping.

Procter and Gamble announces the use of sugarcane-based plastic

Procter and Gamble’s company announced plans to use sustainable plastic, derived from sugarcane on the packaging of some of its leading brands, Pantene Pro-V®, COVERGIRL®, and MaxFactor®. The newly packaged products will be launched globally by 2011. Plastic derived from sugarcane is made from renewable resources involving a process of converting sugarcane into high-density polyethylene. High-density polyethylene is commonly used in product packaging. Braskem S.A. will supply P&G with HDPE derived from sugarcane.

Potential Sewage-powered Volkswagen Beetle
A car unveiled this week by Wessex Water that runs on methane gas generated from fermented human waste may have a performance comparable with a petrol-powered vehicle, but the range may prove a problem; the converted Volkswagen Beetle relies on the waste collected from 70 households over the course of a year to travel 10,000 miles – an efficiency equivalent to six ‘movements’ per mile traveled.

RENEWABLE ENERGY

Centrotherm photovoltaics AG designs polysilicon production facility in Taiwan

German-based Centrotherm photovoltaics AG, one of the world’s leading technology and equipment providers for the photovoltaics sector, has designed a polysilicon production facility for Taiwan PolySilicon Corp.(TPSI) This facility offers an annual production capacity of 5000 tonnes with the option to upgrade to 8000 tones.

TPSI will rely on the development, technology, and equipment know-how of centrotherm SiTec, Centrotherm’s subsidiary, for polysilicon manufacturing. The vent gas recovery system, which was developed by Centrotherm SiTec was also deployed. This allows for better exploitation of process gases, thereby significantly cutting manufacturing costs. It also has environmental benefits as it removes harmful gases from the production process.

Centrotherm SiTec holds a market share of around 40 percent for the key equipment items required in silicon manufacturing.

Solon SE partners with 35 degrees, Ltd to build UK’s first solar power plant

German-based Solon SE has reached an agreement with British project developer 35 degrees, Ltd to build a 1.3-megawatt peak photovoltaic solar power plant near Bissoe in Cornwall. This power plant could be the first ground-mounted solar plant ever built in the UK. The plant is being built on 3-hectare grounds of a former tin-ore processing plant. Solon’s monocrystalline modules will be used in this plant and they will build it in conjunction with an experienced locally-based company. Once the construction is complete, the solar power plant will generate 1.25 million kilowatt hours of emission-free solar power annually, which is enough to supply 300 households.

The agreement includes planning, engineering, procurement, and construction, for a turnkey delivery to 35 degrees Ltd.

Ford to build 500 KW solar array at Michigan plant

Ford is set to install a 500 KW solar photovoltaic system at their Assembly plant in Michigan, in partnership with Detroit Edison, Xtreme Power, and the state of Michigan. This system will be integrated with a 750 KW backup storage facility.

The renewable energy collected by the solar system will be used to power the production of the new 2010 Focus and Focus Electric and feed excess energy back into the grid. The solar system’s 750 KW energy storage facility will be able to store up to 2 million watt-hours of electricity, which translates to power for 100 Michigan homes for up to a year.

The solar power system will save Ford about USD 160000 per year in energy costs. Ford uses renewable energy for 3 percent of its total power needs. This is Ford’s third initiative experimenting with renewable energy. The Dagenham Diesel Center in the United Kingdom Another Unique is running entirely off wind turbines, while the company’s Bridgend Engine Plant in Wales uses a combination grid-connected solar photovoltaic technology.

 

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