Total, LyondellBasell moves highlight growing momentum of circular economy shift

Will Beacham

29-Sep-2020

BARCELONA (ICIS)–Total’s decision to switch its Grandpuits oil refinery to 100% renewables, and an ambitious new recycling target from LyondellBasell, are the latest illustrations of the gathering pace of circular economy investment in the chemicals sector.

The €500m investment by French oil and chemicals major Total will see the conversion of its 101,000 bbl/day oil refinery, representing 7% of Total’s European refining capacity, to a biorefinery for transport fuels, naphtha and bioplastics plus a plastics recycling plant.

European refiners have been hammered by the pandemic, which collapsed demand for aviation and road transport fuel. But coronavirus just accelerated trends which had already been in place for years before.

The electrification of road transport and regulatory targets for fuel efficiency had already reduced forecasts for oil consumption. The pandemic may have brought forward “peak oil” from the 2030’s to the mid 2020’s or even 2019, according to scenarios presented by BP in its September annual energy review.

At the same time, winds of change are blowing chemical producers in new directions. Regulatory, brand and consumer pressure are pushing a circular approach to chemical production and product portfolios. The EU Green Deal  aims to mobilise €1 trillion in investment to make Europe carbon neutral by 2050 while the region also has ambitious recycling targets.

The industry also has to adapt to slow or non-existent GDP and demand growth as static and aging populations require fewer big ticket items such as cars, new houses and electronic goods.

With these trends in place it is easy to see why Total took this decision, though pure economics has also driven it. The site is attached to the 260 kilometer Ile-de-France pipeline (PLIF), which carries crude oil from the Port of Le Havre. This feedstock pipeline is in such bad condition it can only operate at low pressure.

The refinery was forced to shut for four months in 2019 after the pipe started leaking. Since then it has only been able to operate at 70% capacity. Investment of €600m would be required to replace the pipeline.

CHEMICAL RECYCLING INVESTMENT
One key part of the investment at Grandpuits is a plastics recycling plant which uses chemical rather than mechanical recycling. This will be the first chemical recycling plant in France.

Chemical recycling technology is still in its infancy, but its development is very important for the industry as it races to meet recycling targets. It allows more mixed and contaminated plastics waste to be used as feedstock compared with mechanical recycling. This means it has the potential to recycle plastic waste streams which were previously unsuitable.

The project is owned 60% by Total and 40% by UK-headquartered Plastic Energy, which is developing this chemical recycling technology. The plant will convert plastic wastes into a naphtha-like liquid called TACOIL through a pyrolysis melting process. TACOIL can then be converted into polymers with identical properties to virgin polymers. It will be suitable for use in food-grade applications.

The new unit will help Total meet its objective of producing 30% of its polymers from recycled materials by 2030.

BIOPLASTICS BOOST
Total Corbion PLA, a 50/50 joint venture between Total and Dutch biochemicals group Corbion, will construct Europe’s first polylactic acid (PLA) plant. Start-up is scheduled for 2024.

The 100,000 tonne/year plant will use sugar as a feedstock to produce PLA, a bioplastic that is biodegradable and recyclable. Total says the market for PLA is growing by up to 15% annually, driven by film wrap, rigid packaging and industrial applications.

BIOREFINERY TO PRODUCE NAPHTHA
The third chemicals element to the project is Total’s biorefinery which will process 400,000 tonnes/year of animal fats from Europe and used cooking oil, supplemented with other vegetable oils like rapeseed (but excluding palm oil).

It produce 50,000 tonnes/year of renewable naphtha, used to produce bioplastics as well as 170,000 tonnes/year of aviation fuel and 120,000 tonnes/year of renewable diesel.

This part of the project is due to be commissioned in 2024.

LYONDELLBASELL TARGETS 2M TONNES/YEAR
LyondellBasell on 28 September unveiled a target to produce and market 2m tonnes of recycled and renewable-based polymers annually by 2030.

LyondellBasell is involved in several small-scale recycling initiatives, but this new target will require significant investment in the infrastructure to collect and recycle plastic waste.

Italy’s Versalis has been developing a green chemistry hub at Porto Marghera, Italy, for several years.

This year’s online European Petrochemical Association (EPCA) meeting reflects on these big trends and how the industry needs to change fast to ensure its survival and prosperity.

Focus article by Will Beacham.

Thumbnail picture: LyondellBasell’s refinery in Houston, Texas. Source: LyondellBasell.

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