The infographic for this story was initially developed by ICIS hydrogen policy and regulation analyst Aayesha Pathan LONDON (ICIS)–On 17 July the government of the Czech Republic approved an update to its hydrogen strategy. The update follows a wide array of European policy developments such as targets for the use of renewable hydrogen in transport and industry, as well as alternative fuels infrastructure regulation on hydrogen refuelling stations. The strategy indicates a three phased-approach to the development of the market, focusing initially on localized production and offtake through hydrogen valleys, moving towards large-scale hydrogen imports towards the end of the decade and into the 2030s. ICIS has produced the following infogram to reflect some of the core principles of the strategy update.

LONDON (ICIS)–Senior Editor for Recycling Matt Tudball discusses the latest developments in the European recycled polyethylene terephthalate (R-PET) market, including: Eastern Europe bale bullishness eases Some northwest Europe flake sellers’ views on August offers vary Swedish deposit return scheme (DRS) introduces R-PET cap from May 2025

LONDON (ICIS)–BASF is moving to “de-risk” its exposure to the electric vehicles sector in response to slowing market dynamics, CEO Markus Kamieth said on Friday, pausing or deciding against several investments connected to the industry. Take-up of electric vehicles has slowed in most markets other than China, Kamieth said, prompting the company to shift strategy, with new capacities added only where BASF has obtained long-term offtake agreements. “We are confident that the trend toward electric vehicles will continue and that battery materials remain a significant growth opportunity for the chemical industry,” Kamieth said, speaking at a press conference at BASF’s Ludgwigshafen, Germany, headquarters. “However, recent dynamics have changed, and the market penetration of electric vehicles has slowed down significantly outside of China, as shown by a number of announcements by companies in the e-mobility value chain,” he added. The company decided against proceeding with a mooted nickel-cobalt refining complex in Indonesia last month, on the back of shifting nickel market dynamics that are likely to make long-term supply of battery-grade material easier to source. “The supply options have evolved and with that BASF’s access to battery grade nickel. This decision will significantly lower future capital requirements,” Kamieth said. Kamieth, who became CEO of the company in April this year, also moved to pause work on a proposed commercial-scale electric vehicle battery recycling metal refinery at its Tarragona, Spain, complex. To be based on technology developed and tested at BASF’s Schwarzheide, Germany, refinery and with a potential investment range of €500 million to 700 million, the company announced that the project was under consideration in February. Uncertainty also continues at BASF’s Harjavalta, Finland, precursor cathode active materials (PCAM) plant, which has been locked in a cycle of granted environmental permits that are then overturned on appeal. The company recently obtained fresh operation permits for the site, but those could also be overturned, according to Kamieth. “A few weeks ago, we received the approval to operate the site as requested,” he said. “The proviso is that there can be protests against this approval again.” The project, which was yet to receive final investment decision, will remain on hold “until cell capacity build-up and the [electric vehicle] adoption rate in Europe regain momentum,” Kamieth said. The current shift is “a short-term stretching of a growth curve that will inevitably be very large”, he said, due in part to the investment step-changes required in fast-scaling markets that regulatory or investment fears can delay. “We believe that the trend towards electromobility as the powertrain technology of the future is still valid. We also believe that the growth in battery materials is going to be very substantial, and the biggest growth opportunity for that probably right now exists in the chemical industry,” he added. Thumbnail photo source: Shutterstock

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson. Earlier this week I suggested that there would be no end to the petrochemicals downcycle until 2026. But what if this isn’t just a normal downcycle? What if we see no return to the old petrochemical market conditions because of long-term shifts in the global economy due to the end of the China “economic miracle”, ageing populations in most of the world, the sustainability push and the impact on economies of climate change? Might artificial intelligence lead to such a large loss of employment that petrochemicals demand growth takes a further hit? In as little as three years’ time, in handy bullet points, this is what the petrochemicals world could look like: There is sufficient petrochemical supply already available to meet demand as global demand is shrinking. As China is said to be some 45% of global petrochemicals and other manufacturing capacity, and because it is so plugged into global supply chains, this is one of three locations where we are seeing some petrochemicals capacity growth. China is adding more capacity, where it can find sufficiently competitive feedstocks, for supply security reasons. The other locations are the Middle East because of its feedstock advantages, now improving because of more natural-gas liquids discoveries, and the US where government policy continues to support manufacturing. Major consolidation is taking place elsewhere to accommodate this new supply and shrinking demand. Petrochemical plant closures are taking place in Europe, South Korea, Singapore, Japan, and possibly even Southeast Asia. When electrification of vehicles took off, excitement began over petrochemicals demand replacing lost oil demand into transportation fuels. Good look with that idea as petrochemicals demand is, as mentioned, actually shrinking. Can you afford just one scenario, one plan? No, of course. Everything points to a much more ambiguous future than the comfortable and predictable petrochemicals world see enjoyed during the 1992-2021 Supercycle. Editor’s note: This blog post is an opinion piece. The views expressed are those of the author, and do not necessarily represent those of ICIS.

SINGAPORE (ICIS)–Typhoon Gaemi slammed into Fujian province in southern China on the evening of 25 July, bringing heavy rains as it continues to move inland on Friday, with the strong downpour expected to last three days. At 06:00 local time (22:00 GMT), Gaemi has weakened into a tropical storm and is centered at Yongtai County in Fuzhou City, according to China’s Meteorological Administration (CMA) in its latest update. Gulei, which is a major chemical production site in Fujian, is not in the direct path of Typhoon Gaemi. No disruptions to production were reported. According to China’s CCTV state news channel, Gaemi struck Fujian province at 19:50 local time on 25 July and is projected to cause widespread heavy rainfall across the country as it tracks northwest path. An orange typhoon warning has been issued, the second-highest level in China’s four-tier warning system. The storm is expected to pass through Jiangxi province and continue to move north, gradually weakening in intensity. Heavy rains and strong winds are expected to batter eastern China from 26 to 27 July, with coastal areas and the East China Sea forecast to experience gale-force winds. Authorities in Fujian province initiated a mass evacuation, relocating more than 150,000 people from vulnerable areas ahead of Gaemi’s arrival. Transportation services across the region have been severely disrupted, with train services suspended in parts of Fujian and most flights canceled at Quanzhou Jinjiang International Airport. Schools and offices have also been shuttered in many parts of Fujian province. The impact of Typhoon Gaemi has extended beyond Fujian, with Zhejiang province experiencing ferry suspensions and flight cancellations. Guangdong province has also canceled many eastbound train services in anticipation of the storm’s arrival. PORT OPERATIONS AFFECTED Numerous ports along China’s eastern seaboard have been closed, ferry services halted, and vessels ordered back to shore, according to crisis management firm Crisis24. The berthing of chemical and oil vessels in Ningbo is being controlled due to safety or environmental concerns, according to a shipping broker. There are restrictions in place for vessels mooring in Ningbo, possibly due to congestion or maintenance, the broker said. Vessels navigating the south channel of Zhangjiagang port must have a freeboard of more than four meters due to shallow water or strong currents, according to the broker. The north channel of Zhangjiagang was closed due to strong winds that occurred early on 25 July, causing safety concerns or difficulties for navigation, the broker said. Dense fog was also present in the Dalian area, causing navigation difficulties or reducing visibility, according to the broker. In Taiwan, the southern port city of Kaohsiung was particularly hard hit by Gaemi, with meteorologists reporting 135 centimeters (53 inches) of rainfall and extensive flooding after it made landfall shortly before midnight on 24 July. Kaohsiung is home to two major oil refineries belonging to Formosa Petrochemical Corp (FPCC) and CPC Corp that are connected to downstream petrochemical facilities. There have been no immediate reports of major disruptions to petrochemical production facilities in Kaohsiung. Meanwhile, operations at the Mailiao port are expected to resume on Friday after a three-day shutdown. The port is operated by Taiwanese major Formosa Petrochemical Corp (FPCC) which primarily serves the company’s Mailiao refinery and petrochemical complex. Taiwan’s major petrochemical complexes are in Toufen and Mailiao in the northwest; and Ta-sheh and Linyuan in Kaohsiung City in the south. Separately, a Philippine-flagged oil tanker carrying 1.4 tonnes of industrial fuel oil sank amid inclement weather on 25 July, prompting fears of an oil spill. The MT Terra Nova sank near Lamao Point in Limay, Bataan, a province northwest of the capital, Manila, early on 25 July, the Philippine Coast Guard said. Sixteen crew members were rescued and at least one person died, it added. While the Philippines was spared a direct hit from Gaemi, the storm exacerbated seasonal monsoon rains, leading to extensive flooding in Metro Manila and surrounding areas. Additional reporting by Hwee Hwee Tan and Fanny Zhang

HOUSTON (ICIS)–US fertilizer producer CF Industries announced that it is moving forward with a carbon capture and sequestration (CCS) project at its Yazoo City, Mississippi complex that is expected to reduce carbon dioxide (CO2) emitted to the atmosphere from the facility by up to 500,000 tonnes annually. As part of the project the company has signed a definitive commercial agreement with ExxonMobil for the transport and sequestration in permanent geologic storage of the CO2 with sequestration expected to start in 2028. The producer is going to spend approximately $100 million at Yazoo City to build a CO2 dehydration and compression unit to enable CO2 to be generated as a byproduct of ammonia production and subsequently be captured to be transported and stored. Once sequestration by ExxonMobil has commenced, CF said expects the project to qualify for tax credits which provides a credit per metric ton of CO2 sequestered. “We are pleased to advance another significant decarbonization project that will keep CF Industries at the forefront of low-carbon ammonia production while also helping us achieve our 2030 emissions intensity reduction goal,” said Tony Will, CF Industries Holdings president and CEO. “This decarbonization project also will increase the availability of nitrogen products with a lower-carbon intensity for customers focused on reducing the carbon footprint of their businesses.” The producer added that once sequestration starts, the Yazoo City complex will be able to manufacture products with a substantially lower carbon intensity than conventional ammonia production sites. Most of the ammonia produced at the Yazoo City Complex is upgraded into nitrogen fertilizers such as urea ammonium nitrate solution (UAN) and ammonium nitrate (AN) or upgraded into diesel exhaust fluid. AN produced at Yazoo City is used as fertilizer and by the mining industry as a component of explosives. CF said demand for these products with lower carbon intensity is expected to increase significantly as agriculture and mining industries work to lower emissions in their supply chains.

HOUSTON (ICIS)–Mineral development company First Phosphate announced it has discovered a significant high-quality igneous phosphate deposit at their Begin-Lamarche project, located in the Saguenay-Lac-St-Jean Region, Quebec. Having received all the results from its recent drilling program at the project the outcome has demonstrated continuous phosphate mineralization spread over three mineralized zones. First Phosphate said a compliant resource estimate is now underway with completion expected in the coming months, which will be immediately followed by work on a preliminary economic assessment for the project. “This drilling campaign has confirmed the presence of a high-quality igneous phosphate deposit in-line with expectation and in a logistically favourable mining area at just 70km from the deep-water port of Saguenay, Quebec,” said John Passalacqua, First Phosphate CEO.

BARCELONA (ICIS)–European petrochemical leaders should take inspiration from Japan, which is further ahead in reducing base chemicals while expanding in specialties and low carbon technologies. Japan hit by with high naphtha feedstock costs, growing global overcapacity 70% of crackers are more than 50 years old More than 10% of Japan’s crackers could close Downstream production also closing such as polyethylene terephthalate (PET) and paraxylene (PX) Japan basic chemicals losing ground, new focus on specialties Pushing materials for semiconductors, electronics Also expanding into bio-naphtha and pyrolysis oil Japanese companies want to licence their chemicals technologies Using ammonia and hydrogen to reduce dependence on LNG South Korea chemicals face existential crisis In this Think Tank podcast, Will Beacham interviews ICIS senior market development manager Itaru Kudose, ICIS senior consultant Asia John Richardson and Paul Hodges, chairman of New Normal Consulting. Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS. ICIS is organising regular updates to help the industry understand current market trends. Register here . Read the latest issue of ICIS Chemical Business. Read Paul Hodges and John Richardson’s ICIS blogs.

SINGAPORE (ICIS)–Typhoon Gaemi will test the resilience of the liquefied petroleum gas (LPG) supply chain, causing temporary shipment delays and port closures, but market prices and arrival schedules are expected to remain stable and manageable. Join ICIS LPG analysts Shihao Zhou and Yan Wang as they discuss the impact of Typhoon Gaemi on China’s imported propane and butane arrivals. Typhoon Gaemi will delay propane and butane shipments, causing temporary logistical issues/ Seven Very Large Gas Carriers (VLGCs) carrying LPG will be affected by Typhoon Gaemi, with key ports in East China and Fuzhou closing until the end of July. Despite the typhoon, the arrival schedule remains manageable, with 4-5 VLGS expected to arrive in east China next week.