Pyrolysis catalysts – Indorama Ventures undergoes a restructuring of its operations 06-03-2024
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Indorama Ventures undergoes a restructuring of its operations
Indorama Ventures (IVL), a leading polyester producer, unveils its IVL 2.0 strategic plan aimed at cutting costs, enhancing capabilities, and boosting profitability amidst evolving global chemical markets. CEO Aloke Lohia underscores the necessity for restructuring due to persistent shifts in market dynamics.
Several factors hamper the group’s profitability, including excessive Chinese exports driven by weak domestic demand, low raw material costs in North America, and global economic and geopolitical challenges affecting consumption. Despite a 53% profit dip in the last fiscal year, Indorama Ventures benefits from operational integration, employing “make or buy” strategies to mitigate raw material price fluctuations. Pyrolysis catalysts
The IVL 2.0 strategy accelerates the transformation initiated in 2021, prioritizing profitability recovery amid market uncertainties. The plan includes downsizing operations, enhancing shareholder value, and preparing for long-term demand normalization.
Key initiatives involve optimizing capital, improving cash flow, and reducing debt by $2.5 billion to approximately $4.3 billion by 2026. Operational improvements aim to generate $800 million in cash flow, supplemented by $1.7 billion from strategic interventions like divestments and listings. Pyrolysis catalysts
Resource optimization targets an operating rate increase from 74% to 89% over three years by reallocating capacity to cost-efficient structures. Project Olympus 2.0 seeks $450 million in efficiency gains by 2026. Non-core asset sales are projected to yield around $1.3 billion.
Indorama Ventures plans to leverage sustainability innovations to add $350 million in value annually. Already, restructuring efforts include renaming the oxides and derivatives business to Indovinya and reorganizing chemical intermediates under the Combined PET segment. Pyrolysis catalysts
Asset optimization involves a non-monetary write-down of $308 million for the Corpus Christi plant, reflecting the challenging economic climate. Indorama Ventures remains committed to agile strategies to navigate market volatility and ensure long-term success.
Mr. Aloke Lohia CEO Indorama Ventures
PET Enters March 2024 on a Stable Note in Europe and USA, Outlook Seems Bullish
Polyethylene Terephthalate (PET) price experiences a contradictory trend for the US and European market during early March 2024. In the US market, PET price remained stable during the first week of March 2024, due to the balanced supply chain and uninterrupted operation while market took a growth of around 4.5% in February 2024, attributed to the significant factors from feedstock shortage and logistics interruption. Eventually, PET prices marked stable price during first week of March 2024, However, Alpek Polyester USA, has announced to increase the PET price by around USD 110/MT, in effect from 1st March 2024, owing to the complexities from the upstream and logistics factors, that has been a complex factor in the import. Pyrolysis catalysts
In recent months, the PET market has experienced a shortage of its feedstock i.e. Mono Ethylene Glycol, driven by the shutdown of manufacturing units or reduction in the operation capacities, due to the unfavorable climate conditions. The shortage of MEG (raw material for PET) coupled with the fluctuation in crude oil prices and geological tensions forced the key players to increase the price, including Indorama Ventures and MEGlobal.
European market has experienced the same trend for PET prices, In the first week of March 2024, the price escalated by around 1.2% in Germany while in previous month, price rose by 5.8% on month-on-month basis. This is attributed to the intense feedstock price and supply chain disturbance. Concurrently, the downstream market has lackluster demand during recent months that is why commodity prices hold price stability from the last multiple weeks. Pyrolysis catalysts
SK Ecoplant and CSCEC have joined forces to construct a $2 billion green hydrogen project in Egyp
SK Ecoplant and China State Construction Engineering Corporation (CSCEC) are joining forces to construct a $2 billion green hydrogen and green ammonia production plant within the Suez Canal Economic Zone (SCZone) in Egypt. This collaborative effort aims to have the facility fully operational by 2029, as announced by SK Ecoplant.
The project will leverage 778 MWs of renewable energy, including 500 MW of solar energy and 278 MW of onshore wind energy.
These renewable sources will facilitate the annual production of 50k tons of green hydrogen and 250k tons of green ammonia. Pyrolysis catalysts
Upon allocation of land by the Egyptian government, SK Ecoplant and CSCEC will initiate feasibility studies to determine the project’s scale and timeline. This venture aligns with Egypt’s broader initiative, as the government recently signed seven agreements with international developers to implement green hydrogen and renewable energy projects in the SCZone over the next decade, with a total investment exceeding $40 billion.
Hala El Said, the Minister of Planning and Economic Development, disclosed that the pilot phase alone will secure investments of $12 billion, while the first phase will attract around $29 billion. This collaborative endeavor underscores the commitment to advancing sustainable energy solutions and economic development in Egypt’s strategic economic zone. Pyrolysis catalysts
PTA Market in February 2024 Faces Turmoil Amidst Weak Downstream Demand
The UK market for PTA (Purified Terephthalic Acid) had volatility in February 2024 where the month began on an upward trajectory due to increased transportation costs and ended on a stable note due to low downstream demand dynamics.
The force majeure of Alpek UK, impacting 220,000 tonnes of annual production, has caused a short-term surge in inquiries for European PTA producers as UK buyers seek alternative sources. However, this was expected to be a temporary phenomenon where prices for PTA remained unchanged during the last week of February 2024 to settle at USD 927/MT, PTA FD Southampton, UK. Pyrolysis catalysts
At Alpek’s Wilton facility (220kta), a hold period was necessary due to a PTA shortage brought on by the Red Sea delays. As per the market sources, it was revealed that Alpek had no choice but to shut down the plant for 30 days after experiencing production problems since restarting. Despite the initial supply hiccup, the bigger picture reveals a weak overall demand for PTA. Cautious buyers and slow downstream consumer demand limit the potential for sustained price increases which accounted for stability in the H2 of February 2024.
However, at the beginning of February, one factor influencing an upswing for the PTA market was the Red Sea crisis-related supply disruptions. Pyrolysis catalysts
The prolonged crisis has delayed the arrival of import shipments from the Middle East and Asia, which directly affects the availability of PTA on the European market. While the current situation has tightened spot availability, restocking remains limited due to the weak underlying demand. Even though the immediate shutdown has caused a temporary disruption, the underlying market fundamentals point towards returning to a more stable pricing environment.
Advancement of Green Ammonia Sees Multimillion-Dollar Capital Raise
Jupiter Ionics’ recent $9 million capital raise propels their electrochemical green ammonia technology, advancing a more sustainable approach to global food production and the energy transition. Traditional ammonia production, highly carbon-intensive, faces disruption as Jupiter Ionics pioneers electrolysis for potential zero-carbon emissions.
Green Ammonia’s versatility promises a low-carbon future, serving as fuel, supporting international shipping, and storing hydrogen. The funding targets scaling up a comprehensive system utilizing water, air, and renewable energy to produce ammonia efficiently. Pyrolysis catalysts
CEO Dr. Charlie Day welcomes new investors – Wesfarmers Chemicals, Energy & Fertilisers, CIMIC Group, and Breakthrough Victoria – alongside original backers. Their support amplifies efforts toward a net-zero future by integrating technology into larger prototypes and expediting market entry.
CIMIC Group Executive Chairman Juan Santamaria emphasizes the significance of carbon-neutral ammonia for transport and renewable energy export, underlining the capital raise’s role in commercializing Jupiter Ionics’ electrochemical technology.
Alastair Hick, Monash University CCO and Jupiter Board member, highlights the urgency of scaling up green ammonia production, noting Jupiter Ionics’ global impact potential.
Grant Dooley, CEO of Breakthrough Victoria, echoes this sentiment, expressing enthusiasm for investing in sustainable ammonia production to decarbonize agricultural systems and bolster Australian sovereignty. Pyrolysis catalysts
This investment follows Jupiter Ionics’ recognition by prestigious international bodies like the Royal Society of Chemistry and the Nature Awards spinoff prize, affirming their technological prowess and global relevance.
Upcycling polyethylene into thermoplastic polyurethane
A groundbreaking plastics-recycling venture is underway in India with the inauguration of a pioneering pilot plant. Novoloop, based in Menlo Park, California, in collaboration with Aether Industries of Gujarat, India, is spearheading the development of an innovative pilot facility to upscale Novoloop’s Lifecycling technology. This technology represents a breakthrough in industrial processes as it transforms polyethylene (PE) waste into thermoplastic polyurethane (TPU) through controlled oxidation, a process diagrammed here. By oxidizing PE waste, Lifecycling yields diacid monomers that can substitute fossil-based adipic acid conventionally used in TPU production. Pyrolysis catalysts
According to Jennifer Le Roy, Novoloop’s chief technology officer, Lifecycling offers a superior alternative to pyrolysis, producing higher-value products within the petrochemical value chain rather than just oils for displacing fossil-fuel feedstocks. The scale-up initiative primarily targets various post-consumer PE waste sources, including challenging streams like heavily degraded and oxidized films, unsuitable for mechanical recycling or pyrolysis.
The versatility of the diacid monomers extends beyond TPU, finding utility in polyesters, polyamides, and other high-performance materials. By the close of 2024, Novoloop anticipates the pilot plant reaching a plastics-processing capacity of approximately 70 metric tons per year (m.t./yr). Pyrolysis catalysts
Nedim Hasanbegovic, Novoloop’s vice president of engineering, sees the integrated pilot plant as a significant stride towards commercial viability, marking a pivotal phase towards continuous, full-scale production.
Five factors to watch in US and Asian recycling
Following on the heels of Will Collins and Chloe Kinner’s plastic recycling blog (Five things to watch out for in Europe in 2024), Argus’ US and Asian plastic recycling experts outline some of the key issues to watch in their regions in the year to come.
New Jersey recycled content mandates
Extended producer responsibility (EPR) continues to be the fastest-moving legislation in the US for plastics recycling. Several states are considering new EPR schemes, although it’s been quite a few months since the latest EPR bill passed into law in Maryland. But a new law mandating recycled content in plastic packaging in New Jersey may be of particular interest for recyclers this year. Pyrolysis catalysts
New Jersey on 18 January introduced a 10pc minimum recycled content requirement for rigid plastic containers and 15pc for plastic beverage bottles, becoming the first east coast state, and the third overall after Washington and California, to have such legislation. New Jersey’s is the first mandate to extend beyond beverage containers and waste disposal bags to include rigid plastic containers.
Three of 50 states is a small percentage, although they are home to more than 15pc of the US population, and there is no sign of a nationally binding requirement to use recycled plastic at this stage. But the laws may have an impact outside of their immediate jurisdiction, with companies likely to align their regional or even national supply chains to the strictest legislation to streamline their operations. It will be interesting to see what impact the New Jersey legislation has on recyclate demand – for rPET and recycled polyolefins – during this year. Pyrolysis catalysts
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