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Production and trade of both polyacetal (POM) and polybutylene terephthalate (PBT) is active across Asia and Europe. These are engineered thermoplastics used in high volumes in the automotive sector as well as for a range of manufactured household products such as showerheads and irons. As a result, POM and PBT prices and market activity is sensitive to fluctuations in consumer demand from downstream markets.

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TOPIC PAGE: Sustainability in the fertilizers industry

Updated on 27 March. On this topic page, we gather the latest news, analysis and resources, to help you to keep track of developments in the area of sustainability in the fertilizers industry. LATEST NEWS HEADLINES New urea application rules to be implemented in England from 1 April By Deepika Thapliyal 27-Mar-24 LONDON (ICIS)–In England, famers will only be able to apply solid or liquid urea that is treated with an inhibitor from 1 April, according to new regulations from the Department for Environment, Food & Rural Affairs (Defra) that come into force next month. UPM Biochemicals launches new range of bio-based plant stimulants By Sylvia Traganida 27-Mar-24 LONDON (ICIS)–UPM Biochemicals has launched a new range of bio-based plant stimulants which is an alternative to fossil raw materials-based products, the Finnish paper and renewable chemicals firm said on Tuesday. Mabanaft signs letter of intent for supply of green ammonia from Canada By Sylvia Traganida 19-Mar-24 LONDON (ICIS)–Germany-headquartered energy firm Mabanaft has signed a letter of intent (LOI) with US-based Pattern Energy for the supply of green ammonia to Mabanaft. Yara Growth Ventures invests in electrolysis technology for low-cost renewable hydrogen By Sylvia Traganida 08-Mar-24 LONDON (ICIS)–Norwegian fertilizer major Yara has invested in Danish electrolysis technology company Dynelectro through its corporate venture capital team Yara Growth Ventures. Yara signs agreement with Acme Cleantech subsidiary on green ammonia By Sylvia Traganida 01-Mar-24 LONDON (ICIS)–Norwegian fertilizer major Yara has signed an agreement with GHC SAOC for supply of ammonia with reduced carbon emissions from Acme to Yara on a long-term basis. Idemitsu to join US clean ammonia project By Stefan Baumgarten 27-Feb-24 LONDON (ICIS)–Idemitsu Kosan has agreed to join a 1.2 million tonne/year clean ammonia project that Mitsubishi Corp and Proman plan to develop at Lake Charles, Louisiana, US, it said on Tuesday. Germany’s Heraeus invests in Japanese ammonia tech company By Stefan Baumgarten 22-Feb-24 LONDON (ICIS)–German technology group Heraeus has invested an undisclosed amount in Tsubame BHB, a Japanese company that has developed a precious metal-based technology for decentralized ammonia production. Malaysia’s PCG, Sarawak Petchem agree to study low-carbon ammonia and urea plant By Nurluqman Suratman 21-Feb-24 SINGAPORE (ICIS)–Malaysia’s PETRONAS Chemicals Group (PCG) and methanol producer Sarawak Petchem on Wednesday signed an agreement for a joint feasibility study aimed at establishing a low-carbon ammonia and urea production facility in Bintulu, Sarawak. Egypt’s Helwan signs agreement to produce black urea By Deepika Thapliyal 20-Feb-24 LONDON (ICIS)–In Egypt, Helwan has signed an agreement with SML-INNO UK Ltd to set up the world's first vertical integrated unit to produce black urea, with a capacity of 130,000 tonnes annually, the company said today. EU eases climate proposals after widespread farmer protests By Chris Vlachopoulos 07-Feb-24 LONDON (ICIS)–European Commission President Ursula von der Leyen announced on Tuesday that the EU has agreed to ease key demands in its climate proposal plans, following intense protests from farmers. Tecnimont awarded engineering contract for Portugal green hydrogen, ammonia plant By Graeme Paterson 05-Feb-24 LONDON (ICIS)–Tecnimont has been awarded an engineering contract to develop an integrated green hydrogen and green ammonia plant at Sines, Portugal, its parent company Maire said. EU CARBON BORDER ADJUSTMENT MECHANISM (CBAM) EXPLAINED What is it? The risk of carbon leakage frustrates the EU’s efforts to meet climate objectives. It occurs when companies transfer production to countries that are less strict on emissions, or when EU products are replaced by more carbon-intensive imports. This new mechanism would counteract this risk by putting a carbon price on imports of certain goods from outside of the EU. How will it work? EU importers will buy carbon certificates corresponding to the carbon price that would have been paid, had the goods been produced under the EU's carbon pricing rules. Conversely, once a non-EU producer can show that they have already paid a price for the carbon used in the production of the imported goods, the corresponding cost can be fully deducted for the EU importer. This will help reduce the risk of carbon leakage by encouraging producers in non-EU countries to make their production processes greener. A reporting system will apply from 2023 with the objective of facilitating a smooth roll out and to facilitate dialogue with non-EU countries. Importers will start paying a financial adjustment in 2026. How is the fertilizer industry affected? The fertilizer industry is one of the sectors to fall under the CBAM. The more energy-intensive nitrogen fertilizers will be affected most in the sector by the mechanism. NEW UREA APPLICATION NORMS IN ENGLAND The UK’s Department for Environment, Food & Rural Affairs (DEFRA) has imposed new regulations on urea application in England. Famers will only be able to apply solid or liquid urea that is treated with an inhibitor from 1 April. The move is aimed to reduce ammonia emissions, and would increase costs for farmers by an estimated £40/tonne. The new rules apply to any fertilizer that contains 1% or more of urea nitrogen, with applications of solid urea or liquid (urea ammonium nitrate) fertilizer from 1 April having to include a urease inhibitor Untreated solid urea or liquid UAN fertilizer can be applied between 15 January to 31 March each year. Untreated liquid UAN fertiliser can be applied after 1 April if agronomic justification is provided by a certified fertilizers advisor, mentioning ammonia losses will be at or below the level of when a urease inhibitor is included. Foliar urea applications targeting the crop, using normal spray nozzles do not require a urease inhibitor. The implementation of the Defra regulations was delayed by two years due to higher fertilizer prices and lack of supply following the covid pandemic and the Ukraine war. PREVIOUS  NEWS HEADLINES EU proposes relaxation in policy following farmer protests Biden Administration invests $207m in domestic fertilizer and clean energy endeavours Brazil’s state of Ceara, Bp sign MoU for green hydrogen site  Atome Energy in talks with buyers for green fertilizer from Paraguay unit Sweden's Cinis targets Asia potash market with Itochu partnership Helwan selects Eurotecnica's Euromel G5 technology for new melamine facility in Egypt India’s Adani Group plans $24bn green energy park; RIL to commission giga complex INPEX and LSB pick technology for US ammonia project Bayer partners with energy firms on hydrogen cluster in Germany S Korean group picks KBR tech for Malaysian green ammonia project Abu Qir signs MoU for green ammonia project in Egypt Yara aims to launch first container ship to run off clean ammonia India’s Odisha state approves green hydrogen, ammonia, methanol projects ADM announces launch of regenerative agriculture program in Brazil Fertiglobe completes first renewable ammonia shipment with carbon certification Allied Green Ammonia picks Topsoe’s tech for Australia project Germany’s VNG looks to secure offtake from Norwegian low carbon ammonia plant Gentari enters into agreement with AM Green to invest into a green ammonia delivery platform ITOCHU Corporation, Orascom Construction sign MOU for development of ammonia bunkering in Suez Canal India developing port infrastructure for green hydrogen exports S Korea, Saudi Arabia firms sign 46 pacts, includes blue ammonia project INSIGHT: CBAM reporting begins, fertilizer exporters to EU challenged to account for carbon KBR to supply green ammonia tech to Madoqua Power2X site in Portugal Germany’s SOM to build green hydrogen, ammonia facility in Brazil’s Piaui state US ADM and Syngenta sign MoU to collaborate on low carbon oilseeds to meet biofuel demand Tecnicas Reunidas, Allied Green Ammonia to build green hydrogen and green ammonia plant in Australia Australian fertilizer producer Orica accelerates climate change targets Nestle, Cargill and CCm Technologies launch joint UK trial on sustainable fertilizer EnBW acquires stake in planned Norwegian ammonia plant  Yara Germany signs agreement for decarbonisation of cereal cultivation using green fertilizers Hyphen, ITOCHU ink MoU to explore potential Namibia hydrogen collaboration  INSIGHT: BASF grapples with demand trough, slow road back SABIC AN ships low-carbon urea to New Zealand US Cargill and John Deere collaborate to enable revenue for farmers adopting sustainability Canada’s Lucent Bio announces approval of biodegradable nutrient delivery patent Aker, Statkraft’s 10-year PPA to spur European renewable ammonia push further BASF, Yara Clean Ammonia to evaluate low-carbon blue ammonia production facility in US Gulf Coast Yara Clean Ammonia, Cepsa to launch clean hydrogen maritime corridor EU details CBAM reporting obligations Saudi Arabia’s Ma’aden exports its first low-carbon blue ammonia shipments to China US Bunge and Nutrien Ag announce alliance to support sustainable farming practices Maire subsidiary Stamicarbon wins US green ammonia engineering contract India’s IFFCO launches liquid nano-DAP fertilizer EU Parliament backs CBAM, emissions trading measures OCP granted €100m green loan to build solar plants at Morocco facilities EU unveils plans to tackle greenwashing India’s IFFCO and CIL to manufacture nano DAP for three years USDA awards Ostara funds to boost sustainable phosphate fertilizer output Canadian prime minister confirms fertilizer emission goal is voluntary US fertilizers industry increases carbon capture in 2021 – TFI Indian president calls for reduction in chemical fertilizer use IFFCO plans to export nano urea to 25 countries Amman selects Elessent Clean Technologies for Indonesia sulphuric acid plant Lotte Chemical forms clean ammonia consultative body with RWE and Mitsubishi Corporation Global 2020-2021 specialty fertilizer demand growth led by north America, Asia BASF and Cargill extend enzymes business and distribution to US Saudi Aramco awards sulphur facilities overhaul contract to Technip India sets green hydrogen targets for shipping, oil & gas, fertilizer sectors Germany misses climate target despite lower energy consumption TFI reacts to US Congress passing the Water Resources Development ActHelm becomes a shareholder in UK bio-fertilizer company Unium Bioscience Yara inks deal to deliver fossil-free green fertilizers to Argentina Canadian firms plan fuel cell generator pilot using green ammonia Deepak Fertilizers awards contract to reduce emissions, increase productivity Saudi Aramco launches $1.5bn sustainability fund to support net zero ambition CF Industries and ExxonMobil plan CCS project in Louisiana Canada’s plan to cut fertilizer emissions is voluntary – minister Canada’s fertilizer emission goal raises food production concerns Uniper, Vesta to cooperate on renewable ammonia site in the Netherlands German Uniper to work with Japan’s JERA on US clean ammonia projects ADNOC ships first cargo of low-carbon ammonia to Germany US Mosaic and BioConsortia expand collaboration to microbial biostimulant IMO deems Mediterranean Sea area for sulphur oxides emissions control Canada's Soilgenic launches new enhanced efficiency fertilizers technology for retail Austria's Borealis aims to produce 1.8m tonnes/year of circular products by 2030 European Parliament rejects proposed carbon market reform IFA ’22: southern Africa looks to bio-fertilizer as cheaper, sustainable option IFA '22: Indian farmers will struggle to embrace specialty fertilizers – producer Canadian Nutrien plans to build world’s largest clean ammonia facility in Louisiana Japan's JGC Holdings awards green ammonia plant contract to KBR Bayer to partner with Ginkgo to produce sustainable fertilizers Australia Orica and H2U Group partner on Gladstone green ammonia project Canada sets tax credit of up to 60% for carbon capture projects UK delays urea restrictions to support farmers as fertilizer costs at record high EU states agree to back carbon border tax Yara to develop novel green fertilizer from recycled nutrients USDA announces plans for $250m grant programme to support American-made fertilizer Canada seeks guidance to achieve fertilizer emissions target Fertilizer titan Pupuk Indonesia develops hydrogen/blue ammonia business India launches green hydrogen/ammonia policy, targets exports Canada AmmPower to develop green hydrogen and ammonia facility in Louisiana US DOE awards grant to project to recover rare earth elements from phosphate production Fertiglobe, Masdar, Engie to develop green hydrogen for ammonia production Czech Republic’s Spolana enhances granular AS production India’s Reliance to invest $80bn in green energy projects Yara, Sweden’s Lantmannen aim to commercialise green ammonia by 2023 Novatek and Uniper target Russia to Germany blue-ammonia supply chain Fertz giant Yara goes green with electrification of Norwegian factoryCanada Arianne Phosphate exploring use of phosphate for hydrogen technology FAO and IFA renew MoU to promote sustainable fertilizer use Sumitomo Chemical, Yara to explore clean ammonia collaboration Sri Lanka revokes ban on imports Tokyo scientists convert bioplastic into nitrogen fertilizer Aramco plans Saudi green hydrogen, ammonia project China announces action plan for carbon peaking & neutrality Saudi Aramco targets net zero emissions from operations by 2050 Fertiglobe goes green with Red Sea zero-carbon ammonia pro Australian fertilizer major Incitec Pivot teams up for green ammonia study INTERVIEW: BASF to scale up new decarbonisation tech in second half of decade – CEO India asks fertilizer companies to speed up production of nano DAP Japan's Itochu set to receive first cargo of blue ammonia for fertilizer use Norway's Yara acquires recycled fertilizers maker Ecolan Bayer Funds US start-up aims to cut nitrogen fertilizer use by 30% BP: Green ammonia production in Australia feasible, but needs huge investment Origin and MOL explore shipping green ammonia from Australia India’s IFFCO seeks to export nano urea fertilizer Sri Lanka reinstates ban on import of chemical fertilizers Nutrien to cut greenhouse gas emissions 30% by 2030 RESOURCES IFA – Fertilizers and climate change  TFI – Sustainability report 

27-Mar-2024

PRC '24: PODCAST ICIS recycled plastics experts highlight key topics, trends for week ahead

GRAPEVINE (ICIS)–The Plastics Recycling Conference is underway in Grapevine, Texas, and Senior Market Editor Emily Friedman and Senior Analyst Andrea Bassetti break down the key topics among discussions and presentations at the show: US R-PET market experiencing a divergence from historic trend, as well as stark regional differences Chemical recycling capacities still set to grow through 2028 Recycling markets facing virgin, import price pressure and sluggish demand in H1 2024 To learn more, ICIS recycled plastics experts Emily Friedman and Andrea Bassetti will be giving a presentation "Insights from the Analysts" on Wednesday, 27 March at 10:00AM CST. The Plastics Recycling Conference (PRC) takes place on 25-27 March in Grapevine, Texas. Please reach out on LinkedIn to connect with us at the show!

26-Mar-2024

Dow, ExxonMobil among chems picked in US $6 billion CO2 cutting program

HOUSTON (ICIS)–A $6 billion industrial decarbonization program by the US will fund many chemical projects being developed by Dow, ExxonMobil and other companies, featuring projects as diverse as using carbon dioxide (CO2) as a feedstock, recycling plastic and burning hydrogen as a fuel, the Department of Energy (DOE) said on Monday. The following describes the seven chemical projects chosen by the US. ExxonMobil is developing the Baytown Olefins Plant Carbon Reduction Project in Texas. The project will use new burner technologies to combust hydrogen instead of natural gas for ethylene production. The project should cut more 2.5 million tonnes/year of carbon emissions, or more than 50% of the cracker's total emissions. The project will receive up to $331.9 million from the government. A subsidiary of Orsted plans to build a 300,000 tonne/year e-methanol plant on the Gulf Coast in Texas. The subsidiary, Orsted P2X US Holding, expects the e-methanol will be used as fuel for marine shipping and transportation. E-methanol is made with CO2 with green hydrogen. Orsted is already developing such a project in Sweden. The Texas project will receive up to $100 million from the government. BASF plans to develop a project in Freeport, Texas, that will convert liquid byproducts into synthesis gas (syngas) using plasma gasification and renewable power. Syngas is a mixture of hydrogen and carbon monoxide (CO). BASF will use the syngas as feedstock for its operations in Freeport. The project will receive up to $75 million from the government. LanzaTech and T.EN Stone & Webster Process Technology plan to develop a project on the US Gulf Coast that will capture CO2 emissions from crackers. It will then use green hydrogen and a biotech-based process to convert the captured CO2 into ethanol and ethylene. LanzaTech has developed strains of bacteria that ferment CO2 using hydrogen as an energy source. The name of the project is Sustainable Ethylene from CO2 Utilization with Renewable Energy (SECURE), and it will receive up to $200 million from the government. Ashland's subsidiary, ISP Chemicals, plans to replace natural gas boilers with electric heat delivered by a thermal battery at its plant in Calvert City, Kentucky. Other partners in the project include the Tennessee Valley Authority (TVA) and Electrified Thermal Solutions (ETS), which is supplying its Joule Hive system. The project will receive up to $35.2 million from the government. Dow's project will be developed on the US Gulf Coast and it will capture up to 100,000 tonnes/year of CO2 from ethylene oxide (EO) production. The project will then use the CO2 to produce chemicals used in electrolyte solutions to make domestic lithium-ion batteries. The project will receive up to $95 million from the government. Eastman is building a chemical recycling plant in Longview, Texas, that will use its methanolysis technology to break down waste polyethylene terephthalate (PET) into dimethyl terephthalate (DMT) and monoethylene glycol (MEG). The plant plans to use thermal energy storage combined with on-site solar power to reduce the carbon intensity of its process heating operations. It will receive up to $375 million from the government. DETAILS ABOUT THE US PROGRAMThe US expects the program will cut more than 14 million tonnes/year of emissions of CO2 from 33 projects. On average, each of the projects will cut carbon emissions by 77%. Out of the $6 billion, $489 million will come from the Bipartisan Infrastructure Law, and $5.47 billion will come from the Inflation Reduction Act (IRA). The fund will target the following: Seven chemical and refining projects. Six cement and concrete projects. Six iron and steel projects. Five aluminium and metals projects. Three food and beverage projects. Three glass projects. Two process heat-focused projects. One pulp and paper project.

25-Mar-2024

Americas top stories: weekly summary

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 22 March. AFPM '24: INSIGHT: Biden ending term with regulatory bang for US chems The administration of US President Joe Biden is proposing a wave of regulations before its term ends in 2025, many of which will increase costs for chemical companies in the US and persist even if the nation elects a new president later this year. AFPM ’24: US petrochemicals exports to become growing force but geopolitical risks loom In an era of intensifying global competition, the US petrochemical industry is primed to become a growing force as an enviable cost position from shale gas enables it to run at high rates and ramp up exports, especially in a high crude oil price regime. AFPM ’24: Red Sea, Panama issues to pressure shipping amid possible US port labor conflict The 2024 shipping outlook seems dire amid a drought in Central America that has lowered the number of ships allowed to pass through the Panama Canal and rebel attacks in the Red Sea that have led most carriers to divert away from the Suez Canal. AFPM ’24: LatAm petchems brace for slow path to recovery with all eyes on China The petrochemicals downturn in Latin America is likely to be the longest ever as Chinese and global overcapacities dampen prices in the world’s quintessential “price taker” region for chemicals. AFPM '24: INSIGHT: New US auto emission rule to boost plastic demand, squeeze refiners The new greenhouse gas restrictions that the US imposed on automobiles will speed up the adoption of electric vehicles (EVs), which will have several knock-on effects on plastics, lubricants and chemicals produced by refineries. AFPM ’24: INSIGHT: US Q1 base oil glut indicates that historic weak demand persists Historically weak base oil demand in the US has resulted in oversupply and unprecedented price spreads between producer posted prices, ICIS domestic market prices and ICIS spot export prices heading into this year’s International Petrochemical Conference (IPC).

25-Mar-2024

INSIGHT: Controversial EU Packaging and Packaging Waste Regulation approaches adoption

LONDON (ICIS)–Details of the provisional agreement on the Packaging and Packaging Waste Regulation (PPWR) have been published, containing a number of wide-ranging elements which will reshape the packaging sector across the next two decades. The regulation is now reaching its final stages but has faced a fraught journey through the various legislative chambers of the EU and has remained divisive among both legislators and the markets. Under the provisional agreement the regulation will introduce: Mandated packaging recyclability Minimum recycled content and reuse targets across packaging – albeit with potential derogations based on availability of recycled material Mandatory deposit return schemes (DRS) and separate packaging collection targets New reporting and labelling obligations The extension of extended producer responsibility (EPR) schemes A restriction on the placing on the market of food contact packaging containing per- and polyfluorinated alkyl substances (PFAS) above certain thresholds A restriction on plastic collation films except for transportation purposes The possibility of bio-based plastic contributing to recycling targets The allowance of imports to count towards recycling targets provided they are of similar quality as domestic material and have been separately collected The Committee of the Permanent representatives of the Governments of the Member States to the European Union (Coreper) endorsed the Packaging and Packaging Waste Regulation on 15 March following amendments to the provisional agreement reached by the EU Parliament and EU Council (but not endorsed by the EU Commission) during the trilogue negotiations. The European Parliament Committee on Environment, Public Health and Food Safety (ENVI) endorsed the provisional agreement on 19 March. NEW RE-USE TARGETSBy 1 January 2030, 40% of most transport packaging used within the EU – including e-commerce – will need to be reusable and ‘within a system of reuse’. This includes pallets, foldable-plastic boxes, boxes, trays, plastic crates, intermediate bulk containers, pails, drums and canisters of all sizes and materials, including flexible formats or pallet wrappings or straps for stabilisation and protection of products put on pallets during transport. From 2040 this will increase to 70%.  Some players said that this amounted to a defacto ban on flexible plastic transport packaging because of the difficulty in reaching the reuse target. By 2030, 10% of grouped packaging boxes for stock keeping or distribution will need to be re-usable. Controversially, cardboard boxes will be exempt from these reuse targets, which could see an increased shift to the material. Dangerous goods transport packaging, large scale equipment transport packaging, and flexibles in direct contact with food and feed as defined in Regulation (EC) No 178/2002, and food ingredients as defined in Regulation (EU) No 1169/2011 will also be exempted. By 2030, distributors of alcoholic and non-alcoholic beverage sales packaging will need to meet a 10% reuse target, which will increase to 40% by 2040. Some classes of alcoholic beverage, including highly perishable alcoholic beverages will be exempted. RECYCLABILITY AND REUSEBy 2030 all packaging must be recyclable or reusable. To be classed as recyclable, packaging must be: Designed for recycling Separately collected Sorted in to defined waste streams without affecting the recyclability of other waste streams Possible to be recycled so that the resulting secondary raw materials are of sufficient quality to substitute the primary raw materials Packaging recyclability performance grades are to be established by packaging category and classified as grades A, B or C. After 1 January 2030 any packaging that falls below grade C will be restricted from sale in the market. After 1 January 2038 packaging classified below grade B will be banned from sale in the market. Under the legislation, along with design for recycling assessments from 2035 an additional assessment will be added based on the weight of material effectively recycled from each packaging category – with the packaging categories under the design for recycling assessment established in Article 6 paragraph 6 of the provisional agreement. The EU Commission will be given power to adopt delegated acts to establish the detailed criteria for the design for recycling criteria under the packaging categories, with criteria to be set-out by 1 January 2028. Also from 2035, a requirement that material be ‘recycled at scale’ will be added to the recyclability assessment, with the EU Commission able to amend the thresholds. The definition of packaging waste recycled at scale requires separate collection sorting and recycling of material across the EU as a whole (including of waste exports) in installed infrastructure for each of the packaging categories of at least 55% for all materials except for wood which requires at least 30%. Assessments of recyclability will include the impact on recycling systems of the inclusion of things such as barriers, inks and labels. By the end of 2026 the EU Commission will be required to prepare a report on ‘substances of concern’ that might negatively affect recycling or reusability, with additional restrictions added for those substances under recyclability assessments. Member states will be able to request the EU Commission consider restricting substances they consider detrimental to recycling. Within 7 years from the date of application of the regulation, the Commission will be required to evaluate whether the design for recycling requirements have contributed to minimising substances of concern. A five-year exemption on meeting recyclability targets will be given for innovative packaging, along with an exemption for medical goods and medical goods packaging, dangerous goods and packaging for food-contact material specifically made for infants. Sales packaging made from lightweight wood, cork, textile, rubber, ceramic or porcelain is also expected to be exempted from most of the recyclability requirements. MINIMUM RECYCLING TARGETS FOR THE PACKAGING CHAINUnder the provisional agreement, from 1 January 2030, or three years after the introduction of the related implementing act (whichever is later) all plastic packaging placed on the market in the EU must include a minimum percentage of recycled content from post-consumer waste – by weight – of: 30% for contact sensitive packaging (this is generally packaging that comes into contact with food or medical supplies), excluding single-use bottles made from polyethylene terephthalate (PET) as the major component 10% for contact sensitive packaging made from plastic materials other than PET, except single use plastic beverage bottles 30% for single use plastic beverage bottle 35% for all other packaging By 2040, this will increase to: 50% for contact sensitive plastic packaging made primarily from PET, except for single use plastic beverage bottles 25% for non-PET contact sensitive plastics, with the exception of single use beverage bottles 65% for single use beverage bottles and all other plastic packaging The recycled content targets will allow the use of material from ‘third countries’ – those outside of the EU – the allowance of which has been one of the most contentious and heavily lobbied parts of the bill on either side of the argument. Material from outside of the EU will need to have been separately collected, and have equivalent specification to the requirements listed in the PPWR, the Waste Framework Directive (2008/98/EC), and the Directive on the reduction of the impact of certain plastic products on the environment ((EU) 2019/904). Medical packaging, transportation of dangerous goods, compostable plastic packaging and food packaging for infants and young children will be exempt from the recycled targets. The Commission is obliged to adopt implementing acts establishing a methodology for the calculation and verification of these recycled percentages by 31 December 2026. The Commission will be able to amend the targets based on "excessive prices of specific recycled plastics" and on the grounds that the amount of recycled content would pose a threat to human health or result in non-compliance with Regulation (EC) 1935/2004 – or to any plastic part representing less than 5% of the total weight of the whole packaging, which would typically include things such as functional barriers. By 1 January 2028 the Commission will be required to assess the need for further exemptions from recycled content targets for specific plastic packaging based on a lack of suitable recycling technologies. It will have the power to introduce implementing acts to amend the recycled content targets based on those assessments. Member states will also be able to exempt economic operators from the recycled content targets for 5 years as long as: that Member State has reached 5 percentage points above the 2025 recycled targets for recycling of packaging waste per material It is expected to reach 5 percentage points above the 2030 target (as assessed by the EU Commission) It is on track to meet waste prevention targets under the PPWR It has reached a 3% waste prevention by 2028 compared with a 2018 baseline The economic operators have adopted a corporate waste prevention and recycling plan that contributes to achieving the waste prevention and recycling objective The five year exemption can be renewed by Member States provided the conditions remain filled. This would appear to lead to the prospect of uneven trading conditions across the EU. The targets will be calculated by year and manufacturing plant. The 2030 targets under the PPWR will replace the targets set out in the Single Use Plastics Directive (SUPD) from 2030, but the pre-2030 targets in the SUPD will remain. EPR schemes will be extended under the legislation and must be set-up to ensure that fees to producers (or those with producer responsibility in the case of imports) are sufficient to cover the ‘full waste management’ cost of packaging waste, but actual fees are not stipulated in the legislation. The provisional agreement states that players contributing to EPR schemes should be given priority access at market prices to recycled material corresponding to the amount of packaging placed in a Member State by each individual economic operator. SINGLE-USE PLASTICS, PACKAGING WASTE TO LANDFILL, AND PFAS BANSThere will be further bans on single-use plastics introduced by the PPWR, which remain broadly inline with those proposed in the EU Council’s bargaining position. Significantly, for the recycled low density polyethylene (R-LDPE) flexible market this includes a ban on plastic film wrap grouping bottles, cans, tins, pots, tubs, or packets together in multi-packs at point of sale, but will not include wrap used for business-to-business distribution. This could also impact on pyrolysis-based chemical recyclers because post-consumer flexibles have been identified by the sector as a potential key feedstock source. The agreement also includes a ban on food-contact packaging containing PFAS above certain thresholds. There will also be a restriction on sending packaging waste that can be recycled to landfill or incineration, which could result in a higher sorting requirements and costs for waste managers. BIO-BASED MATERIALBy three years from the entrance in to force of the PPWR the EU Commission will be obliged to review the state of technological development and environmental performance of bio-based plastic packaging. Following this, the Commission will be required to bring forth legislative proposals for targets to increase the use of bio-based plastics in packaging, this will include the possibility of bio-based material contributing to recycling targets for food-contact material where recycled material is not available. This is likely to impact most heavily on the polyolefins and polystyrene sectors. CHEMICAL RECYCLINGThe original commission draft appeared to clarify and support the use of chemical recycling as counting towards the targets as long as its end use is not for fuel or backfill. In a blow for chemical recyclers, however, the wording around definition of recycling has been removed, and now refers back to Directive 2008/98/EC which forms the basis of the majority of EU recycling legislation definitions. Directive 2008/98/EC defined recycling as “any recovery operation by which waste materials are reprocessed into products, materials or substances whether for the original or other purposes. It includes the reprocessing of organic material but does not include energy recovery and the reprocessing into materials that are to be used as fuels or for backfilling operations." This has left the legal status of chemical recycling uncertain, particularly for pyrolysis – the dominant form of chemical recycling in Europe – where mixed plastic waste is commonly converted to pyrolysis oil – a naphtha substitute – before being reprocessed into recycled plastics. MEMBER STATE TARGETS AND DEPOSIT RETURN SCHEMES (DRSs)Member state targets and obligations to implement DRSs remain broadly the same as in the EU Council’s bargaining position paper. The exception is that the figure on the collection figure for member states to exempt themselves from a DRS scheme has been increased to 80% by weight of applicable packaging placed on the market for the first time in 2026, up from 78% in the EU Council's bargaining position. The legislation's passage through the EU has been fraught, with the EU Commission objecting to the provisional agreement between the Parliament and the Council, and with widespread talk circulating in the run up to the vote that the members would not support it at Coreper. These factors are understood to be behind the last minute amendments. The regulation now faces a final approval vote in the EU Parliament’s April plenary session, if it passes that vote it will be adopted in to law. Insight by Mark VictoryAdditional reporting by Matt Tudball

25-Mar-2024

Russia hits Ukrainian gas storage, situation non-critical – acting CEO

Russia hits storage infrastructure Ground infrastructure needs repairs but withdrawals and injections work as per nominations Engineers assessing situation to report scale of damage in upcoming days VIENNA (ICIS)–A Ukrainian gas storage facility was struck on Sunday morning as Russia unleashed a barrage of drones and missile on civilian infrastructure, including in the western region close to the Polish border. Roman Maliutin, acting CEO of Ukrainian gas storage operator UTG, described the situation as “non-critical” and said engineers were working to repair the ground infrastructure which was hit during the strikes. Service nominations, including storage and capacity bookings, were being fulfilled as planned according to a statement by mother company Naftogaz. Maliutin said it was the first time since the start of the war in February 2022 that ground infrastructure related to energy storage was hit by Russian attacks. He said some withdrawal capacity may have been lost but engineers were expected to review the situation on the ground and report back in upcoming days. Technical withdrawal capacity stood at 79mcm/day prior to the attack. Maliutin confirmed there are 1.5 bilion cubic meters of gas in customs warehouse of which 0.72 million cubic meters (mcm) belong to non-resident and 0.78 mcm to resident companies. Customs warehouse regime allows companies to inject and keep imported gas without requiring customs clearance for three years. The volumes are equal to the gas that UTG expected to remain in storage at the end of 31 March. Russia launched waves of attacks throughout the previous week, destroying thermal power plants, hitting a dam over the River Dnipro and forcing electricity transmission system operator Ukrenergo to introduce rolling blackouts and ramp up technical electricity imports from neighbouring EU countries. On Sunday morning, Russia launched 29 cruise missiles, 14 strategic aircraft and 28 Shahed drones across the whole country, most of which were repelled by the Ukrainian Defence Forces. Of these, 20 missiles and seven Shaheds targeted critical infrastructure in the Lviv region, according to mayor of Lviv Andrii Sadovyi. Most storage facilities are in the western part of Ukraine.

24-Mar-2024

PRC ’24: US rPET market deviating from historic trends in 2024

HOUSTON (ICIS)–As beverage and thermoform packaging demand ramps up amid seasonally tight polyethylene terephthalate (PET) bottle supply, the US recycled polyethylene terephthalate (rPET) market is showing split trends across regions. In many ways, the market is deviating from historic patterns heading into this year’s Plastics Recycling Conference (PRC). While demand on the East Coast remains robust, bale markets have yet to reflect any issues in supply, likely due to the continued import of rPET flake feedstock. On the West Coast, demand remains poor as customers have switched from domestic rPET to cost-competitive imported rPET or virgin material. At the same time, West Coast bale markets juggle limited seasonal supply and aggressive Mexican export interest. BALES In line with traditional seasonal supply tightening, availability post-consumer PET bottle bale feedstock remains constrained on the West Coast. As cooler weather persists across the country, it causes a decreased consumption of bottled beverages and thus, lower collection volumes. West Coast domestic recyclers are in heavy competition for limited feedstock with export interests, particularly from Mexico. Despite rapidly rising prices, several in the market believe Mexican buying activity will remain strong to feed local recycling capacities which have recently expanded. Even East Coast deposit bales were heard being routed to Mexican buyers. On the East Coast, supply remains balanced which is counter to the historic trend. Though demand for rPET pellet is robust on the East Coast, recyclers are supplementing operations with imported flake feedstock, which has alleviated pressure from bale markets. Imports of PET scrap into the US have jumped 33% year on year. As a result, market prices have minimally increased. As the weather continues to improve through the spring and into the summer, bottle bale supply is expected to lengthen. Even as the market passes the peak winter supply tightness, imported feedstock will be necessary as the US market continues to develop, as pelletization capacity has increased domestically, but annual collection of PET bottles remains stagnate, according the latest data from the National Association for PET Container Resources. Furthermore, some recyclers see the need to secure new sources of feedstock to protect future supply continuity. Within the last several months, Republic Services, a major waste management company and owner of 90 material recovery facilities (MRFs) nationwide, has opened their first of four recycling facilities. Now, rather than selling sorted PET bales on the market, this facility will consume those bales and produce rPET flake. FLAKE AND PELLETAs markets readjust to 2024 economic outlooks, demand across several industries is expected to increase in the second half of the year. That being said, this may be too late to significantly impact preparation efforts ahead of the summer beverage season, a key demand driver for the US rPET market. Recyclers located on the East Coast have found success in catering to beverage bottle demand, and are seeing steady orders, though volumes are by no means record breaking. Activity from fiber recyclers on the East Coast has been muted on soft downstream consumer demand in textiles and carpet. Much like in 2023, consumer brand companies are expected to continue to increase usage of post-consumer recycled (PCR) plastic in their product packaging to meet voluntary commitments and regulatory requirements. According to several industry groups, many brand companies are still far from reaching their targets. This comes as California, Washington and as of this year, New Jersey, mandate recycled plastic content in both food and beverage packaging as well as other plastic items such as bags in 2024. Though, not all US recyclers are feeling the impact of growing PCR usage. On the West Coast, recyclers continue to see weak sales and have had to scale back production rates significantly as customers are heard to have switched to imported rPET or virgin to save on cost. As a result, West Coast recyclers are now being squeezed between rising bale feedstock costs due to export competition, and low flake and pellet sell prices and volumes due to import competition. Though freight rates have increased since the start of the year due to the strain on the global logistics system from delays around the Panama and Suez canal, opportunities for imported materials continue to emerge from Asia and Latin America. As the US rPET market continues to develop amid a changing global backdrop, trends are expected to defy historic patterns. Several recyclers note the impact of the beverage season and overall, PET seasonality trend is weakening on the US rPET market. Now, imported flake lessens the criticality of winter bale supply tightness and sustainable packaging programs, which impact various types of consumer goods products, have provided some stability in demand across the full year. To learn more on seasonality and other fundamental recycled plastic pricing trends, ICIS recycled plastics experts Emily Friedman and Andrea Bassetti will be giving a presentation "Insights from the Analysts" on Wednesday, 27 March at 10:00 CST. The Plastics Recycling Conference (PRC) takes place on 25-27 March in Grapevine, Texas. Please reach out on LinkedIn to connect with us at the show! Insight article by Emily Friedman

24-Mar-2024

VIDEO: Europe R-PET market braces for April increases

LONDON (ICIS)–Senior Editor for Recycling, Matt Tudball, discusses the latest developments in the European recycled polyethylene terephthalate (R-PET) market, including: April price offers heard above March levels Higher feedstock, production costs pressure margins Outlook for April demand levels uncertain

22-Mar-2024

AFPM '24: INSIGHT: New US auto emission rule to boost plastic demand, squeeze refiners

HOUSTON (ICIS)–The new greenhouse gas restrictions that the US imposed on automobiles will speed up the adoption of electric vehicles (EVs), which will have several knock-on effects on plastics, lubricants and chemicals produced by refineries. Under the new greenhouse gas standards, EVs and plug-in electric vehicles (PHEVs) will make up a growing share of the nation's light automobile fleet at the expense of internal combustion engines (ICEs). EVs and PHEVs consume larger amounts of plastics on a per-capita basis than autos powered by ICEs. If the prevalence of ICE-powered vehicles declines as forecast by the US, then that would lower demand for fuel, discouraging refiners from expanding or making expensive investments on their units. That could lower production of aromatics and other refined products. DETAILS OF NEW EPA TAILPIPE RULEThe new rule requires the US light vehicle fleet to emit progressively smaller amounts of carbon dioxide (CO2), as shown in the following table. Figures are listed in grams of CO2 emitted per mile driven. 2026 2027 2028 2029 2030 2031 2032 Cars 131 139 125 112 99 86 73 Trucks 184 184 165 146 128 109 90 Total Fleet 168 170 153 136 119 102 85 Source: EPA The US will have to greatly increase its reliance on EVs to meet such standards, according to the EPA. The regulator forecasts what its new rule will entail for the makeup of the US light vehicle fleet. It presented three scenarios that make different assumptions about the share of EVs, PHEVs, hybrids and autos powered by ICEs. Hybrid vehicles rely predominantly on ICEs, while PHEVs rely predominantly on batteries, which is why they need to be plugged in to recharge. The following charts show the three scenarios. Scenario A 2027 2028 2029 2030 2031 2032 ICE 64% 58% 49% 43% 35% 29% Hybrid 4% 5% 5% 4% 3% 3% PHEV 6% 6% 8% 9% 11% 13% EV 26% 31% 39% 44% 51% 56% Source: EPA Scenario B 2027 2028 2029 2030 2031 2032 ICE 62% 56% 49% 39% 28% 21% Hybrid 4% 4% 3% 6% 7% 6% PHEV 10% 12% 15% 18% 24% 29% EV 24% 29% 33% 37% 41% 43% Source: EPA Scenario C 2027 2028 2029 2030 2031 2032 ICE 61% 41% 35% 27% 19% 17% Hybrid 4% 15% 13% 16% 15% 13% PHEV 10% 17% 22% 27% 32% 36% EV 24% 26% 30% 31% 34% 35% Source: EPA IMPACT ON PLASTICSEVs and hybrids typically consume more plastics than ICEs, according to Kevin Swift, ICIS senior economist for global chemicals. Swift compared two automobile models that their manufacturers offered in ICE, hybrid and EV versions. The following chart shows how plastics consumption fared across the three versions. Not only do EVs tend to consume more plastics, they impose different challenges on the materials. Because EVs need to be recharged, their systems are running even when the vehicles are stationary. Materials must have the durability to maintain their properties after several thousands of additional hours of use. The wires and cables within EVs generate heat through electrical resistance, so materials need to manage heat. Materials used in battery packs and the charging equipment need to have flame retardancy to prevent thermal runaway. Some materials must withstand high voltages from fast charging times, while others need to shield sensors and other electrical components from electro-magnetic interference (EMI) and radio frequency interference (RFI). As EV production grows, demand for these materials will increase. IMPACT ON BASE OILSIf the EPA's forecasts come true, then demand for base oils used in engine lubricants will decline. EVs lack ICEs so they do not use motor oil. However, EVs still have moving parts so they will require greases and lubricants. A more lucrative opportunity may lie in thermal management fluids. Petroleum-based thermal management fluids avoid the problems that come with using water-based cooling fluids like glycols in electric vehicles. In time, EVs could manage heat by relying on direct immersion cooling. Here the battery, the inverter and the motor are submerged in a bath of thermal management fluids. The base stocks that would be used in thermal management fluids will be a combination of polyalphaolefins (PAOs), esters and polyaklylene glycols (PAGS). IMPACT ON AROMATICSA faster adoption of EVs could speed up the arrival of peak oil demand. Figures from the US Energy Information Administration (EIA) show that gasoline demand in the country peaked in 2018. That peak was barely higher than the previous record set in 2007. Refiners are not going to add new capacity or make expensive investments if demand for their primary products have stagnated. As their units age or suffer damage from fires and other accidents, refiners could choose to shut operations or convert their complexes to produce renewable fuels or other sustainable products. The consequences would cause production to stagnate or even decline for benzene, toluene and xylenes (BTX), chemical building blocks that are primarily produced in refineries in the US. Downstream consumers of these chemicals will have to consider imports if they wish to maintain their operations. US COULD LAVISH MORE POLICIES ON EVSUS EVs could get more supportive policies in the months ahead. The EPA is expected to decide if California can adopt its Advanced Clean Car II (ACC II), which would phase out the sale of ICE-based vehicles to 2035. If the EPA grants California's request, that would trigger similar programs in several other states. The US Department of Transportation (DOT) is proposing stricter efficiency standards under its Corporate Average Fuel Economy (CAFE) program. The American Fuel & Petrochemical Manufacturers (AFPM) has raised concerns about the new EPA rule as well as the two pending policies that would provide further support for EVs at the expense of vehicles powered by ICEs. It raised more concerns on Thursday right before the group's International Petrochemical Conference (IPC), which begins on Sunday. “At a time when millions of Americans are struggling with high costs and inflation, the Biden administration has finalized a regulation that will unequivocally eliminate most new gas cars and traditional hybrids from the US market in less than a decade,” said Chet Thompson, AFPM CEO, said. “Whether you are a Republican or Democrat, Congress has to make a decision whether to protect consumer choice, US manufacturing workers and our hard-won energy security by overturning this deeply flawed regulation,” Thompson said. “Short of that, our organizations are certainly prepared to challenge it in court.” Insight article by Al Greenwood Thumbnail image shows an electric vehicle (EV) charging station in Takoma Park, Maryland. Photo by MICHAEL REYNOLDS/EPA-EFE/Shutterstock

21-Mar-2024

INSIGHT: SAF catalyst technology could also boost biochemicals production

LONDON and BARCELONA (ICIS)–Catalyst technology used to power the first transatlantic flight conducted by a commercial airline which used 100% sustainable aviation fuel (SAF), could also have applications in chemicals production if a market can be developed to allow for commercial scale up. The SAF used on the voyage, dubbed Flight100, was a SAF blend containing 88% HEFA hydroprocessed esters and fatty acids (HEFA) supplied by AirBP, the specialised aviation division of BP, and 12% SAK synthetic aromatic kerosene (SAK) supplied by Virent, a subsidiary of Marathon Petroleum Corporation. Virent developed the SAK in conjunction with Johnson Matthey, using the latter’s proprietary BioForming sugars to aromatic process. Feedstocks such as sugar beet, sugar cane, and corn are currently used in the process, which is also capable of utilising cellulosic sugars as feedstock. Current forms of SAF linked to HEFA and Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK) require conventional jet fuel blending to enable an 8-25% aromatics presence to enable optimum fuel burning. Fossil-based conventional jet kerosene is blended with HEFA and FT-SPK based SAF to create a balance between the paraffins and aromatics required to ensure proper fuel system operations. The BioForming sugars to aromatics process results in bio-based aromatics in the SAK, which enables up to a 100% drop in form of SAF, and can be compatible as a jet kerosene replacement. The SAK can also be blended with other types of SAF to boost the overall SAF content in the fuel mix. The BioForming process could potentially play a vital role in helping scale up the much-needed global SAF capacity expansion required to meet the aviation sectors’ aim to reduce emissions. The International Civil Aviation Organization (ICAO) adopted a global framework in November 2023, in which member states committed to strive towards reducing carbon emissions in international aviation by 5% by 2030 using SAF, low carbon aviation fuels, and other clean energy sources. The EU is implementing a minimum SAF blend of 2% starting from 2025. Mandated SAF blending rates in airports across the bloc will increase to 6% by 2030, 20% by 2035, and 34% by 2040, eventually reaching 70% by 2050. The US Department of Energy (DOE) published a plan that sees the country potentially meeting 100% of its projected jet fuel demand with SAF by 2050. A 10% blending target by 2030 has also been set by the OneWorld airline alliance, which includes British Airways, American Airlines, Qatar Airways, Cathay Pacific, Malaysian Airlines, and others as members. Currently, SAF makes up just over 0.1% in the global aviation fuel mix, which continues to be dominated by fossil-based jet kerosene. Johnson Matthey must overcome any possible financial hurdles that may arise before it can scale up its BioForming technology. Clariant was forced to shutdown its bioethanol plant in Podari, Romania, which also used cellulosic biomass as a feedstock. The company struggled to license out its Sunliquid technology while grappling to ramp up capacity of its bioethanol plant amid challenging operating economics. Johnson Matthey and other companies spearheading technological developments in biofuels and bio-chemicals will have to consider lessons incurred from other projects and integrate such learnings into future plans. BIOCHEMICAL FEEDSTOCK POTENTIAL According to David Kettner, president and general counsel at Virent, this technology has huge potential as a feedstock for chemicals production because it can use a variety of feedstocks to produce the sugars required for the process. This includes lignocellulosic sugars from woody biomass or agricultural residues. One third of the output of the process can be used for biochemical production and the company has already cooperated with companies such as Coca Cola where it produced bio-polyethylene terephthalate (PET) packaging. Virent also cooperated with Japan’s Toray Industries to produce polymers which were used by the Patagonia clothing brand to produce a 100% bio-based polyester product. The chemical feedstock produced by the process most closely resembles mixed xylenes. “The stream itself looks very much similar to what you would see coming out of a reforming unit," Kettner said. "You would take your mixed xylenes cut and be able to put it directly into existing processes for the production of benzene, toluene and xylenes, all of which have strong uses in polymer applications.” He said a demonstration plant currently produces around one barrel/day of bio-reformate with the potential to scale up to commercial levels “very comfortably”. Iain Gilmore, senior manager of Catalyst Technologies at Johnson Matthey added: “We are working at the moment with Virent and Marathon at commercializing the technology and we're pretty confident we can get the size of plants up in the region of 300,000-400,000 tonnes/year of bio-reformate. The project is going through the engineering and design phase, but is not yet at the stage where a formal announcement will be made. Johnson Matthey and Virent have also developed a joint licensing model which is currently being taken to market, led by Johnson Matthey. Insight by Nazif Nazmul and Will Beacham Thumbnail photo: A 100% SAF-fuelled Virgin Atlantic flight (Source: Justin Lane/EPA/EFE/Shutterstock)

20-Mar-2024

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