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Wacker Chemie expands Asia specialty silicones output with new Japan, South Korea plants
LONDON (ICIS)–Wacker Chemie has started up two new specialty silicones plants in Japan and South Korea to meet growing demand in Asia, it said on Thursday. The facilities in Tsukuba, Japan and Jincheon, South Korea, will meet rising demand from the automotive and construction industries. The Germany-based chemicals producer said it invested an amount in the “double-digit million euro range” in the expansion. It did not disclose specific capacity figures. Wacker said its’ Tsukuba site in Japan would focus on the automotive sector, particularly electric vehicles. At Jincheon in South Korea, it aims to increase the output of silicone sealants for the construction industry. As well as automotive and construction, specialty silicones are used in the chemicals, cosmetics, medical technology, energy, electronics, paper and textiles sectors.
PODCAST: Major new Cefic report models paths to net zero carbon emissions by 2050
BARCELONA (ICIS)–Detailed modeling by Europe’s principal chemicals trade association analyzes different potential routes and technologies as the industry moves towards its aim of carbon neutrality by 2050. Report aims to guide chemicals to 2050 EU Green Deal goal of climate neutrality Covers Scope 1, 2, 3 including embedded carbon and end of life emissions Modeling covers many types of technologies Industry will compete with other sectors for access to scarce resources Report models the huge level of investment required Click here to download Cefic’s report “The Carbon Managers: Modelling Possible Pathways for the EU Chemical Sector’s Transition Towards Climate Neutrality and Circularity with iC2050.” In this Think Tank podcast, Will Beacham interviews Florie Gonsolin, director industrial transformation projects at Cefic, Nigel Davis and John Richardson from the ICIS market development team 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.
Liquid markets key to Romanian electricity, gas expansion – energy minister
Ministry of energy working with ministry of finance to ease taxation regime Romania developing renewables, nuclear, gas and biomethane production by 2030 Priority is to improve interconnections with Republic of Moldova LONDON (ICIS)–Romania needs to develop liquid markets and reduce taxes as it seeks to expand its varied energy mix by the end of the decade, the Romanian energy minister Sebastian-Ioan Burduja told ICIS in an exclusive interview. The minister said his priority is the development of competitive markets, with the ministry expected to submit a final proposal for liberalization this month. “It will be a gradual, cautious liberalization which will ensure end consumers are protected while also guaranteeing market liquidity and competition,” he said. Romania, one of the EU’s growing economies and its largest gas producer, will grow even further in importance with its domestic gas production set to double once the Neptun Deep offshore gas output reaches markets in 2027. The renewable capacity target in Romania is to add 10GW, build large and small-scale nuclear generation, alongside the potential to develop 2 billion cubic meters of biomethane annually. However, despite its resources and strategic position, it has not been able to harness its full potential because of an unpredictable regulatory environment and a burdensome tax regime. Nevertheless, the minister whose mandate has now been renewed following recent parliamentary elections, is determined to address all challenges. MARKET AND TAX CHALLENGES The ministry will work closely with the regulator ANRE and the electricity exchange OPCOM to remove barriers to free trading, he said. Another instrument the ministry is keen to promote are contracts for difference (CfD) to offer long-term stability for investors. The CfD scheme in Romania has mobilized €3bn for solar and wind projects, with 1.5GW of capacity successfully tendered in 2024, the minister said. Another 3.5GW will be tendered in 2025. On taxation, the ministry of energy is working with the ministry of finance to streamline regulations affecting  the energy sector. He also stressed the importance of removing legal barriers that have been slowing access to electricity or gas networks and insisted on the need to build new capacity required to encourage the energy transition, as well as digitalize networks to bring more flexibility to markets. The ministry intends to support startups in the energy sector through dedicated financing schemes or public-private partnerships similar to the Unicorn Factory Lisboa, a project envisioned by Lisbon city council to expand the entrepreneurial ecosystem from startups to scaleups. REGIONAL ROLE Regionally, Romania intends to advance new projects or develop existing ones, that would enhance market integration and security of supply. “Our priority is to improve our interconnections with the Republic of Moldova. Projects include gas and electricity interconnections, storing gas in Romania and the completion of the 400kV Suceava-Balti overhead power transmission line,” he said. Romania’s partnership with Moldova and the region could be consolidated via the Vertical Gas Corridor, which could bring natural gas sourced primarily as regasified LNG in Greece and shipped in reverse to Bulgaria, and further north into Romania, Moldova and Ukraine. One of the biggest challenges in developing this corridor is the high transmission costs charged by Romania’s gas grid operator Transgaz. Companies active regionally say it costs €15.46/MWh/day to ship gas along the full route, with the Romanian transmission tariff alone covering a third of the full fee. “We work closely with ANRE and transmission and distribution system operators to analyze the actual tariff structure and means to optimize them,” Burduja told ICIS. “We’re also focusing on […] upgrading and digitalizing the infrastructure. These investments could lead to reducing operating expenses and implicitly lead to  tariff adjustments,” he said. Furthermore, the ministry is working on the establishment of a ‘green corridor’ connecting Azerbaijan to Hungary via Georgia, a subsea section of the Black Sea and Romania, he added. BLACK SEA GAS The most critical project for Romania and the region, however, is the increase in domestic gas production once output at the Neptun Deep offshore bloc comes onstream in 2027. The project, jointly developed by the Romanian incumbent Romgaz and Austrian-Romanian OMV Petrom, aims to bring up to 10bcm/year to the market, boosting Romania’s annual production to 20bcm. There were recent reports that OMV Petrom had auctioned off small volumes as part of the company’s strategy. However, the minister said the bulk of gas would be for internal use, as the country would be looking to  develop  petrochemical or pharmaceutical production. Nevertheless, he said surplus volumes could be considered for exports. Finally, he noted the importance of taking advantage of Romania’s significant agricultural potential and develop a national biomethane sector. Companies say the country could produce as much as 2bcm of biomethane annually. “The ministry of energy recognizes this opportunity and has initiated for the first time ever in Romania the development of a new financing instrument dedicated to advanced biofuels, including biomethane through a modernization fund,” he said, noting that at least 5% of the final energy consumption in the transport sector could come from biofuels by 2030.

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ExxonMobil to invest in Indonesia CCS facilities, petrochemical complex
SINGAPORE (ICIS)–ExxonMobil has committed to invest in carbon capture and storage (CCS) facilities as well as a new petrochemical complex in Indonesia, the biggest economy in southeast Asia. A memorandum of understanding (MoU) was signed between Indonesia’s Coordinating Ministry for the Economy and ExxonMobil on the prospective projects, the ministry said on 22 January. The MoU aims to explore ExxonMobil’s “investment potential in the construction of a world-class petrochemical complex in Indonesia, with an estimated investment value of $10 billion”, it said. “ExxonMobil will build a project related to CCS,” Indonesia’s coordinating minister for economic affairs Airlangga Hartarto said in a post on social media platform X on 22 January, adding that the US oil and gas company will also build a petrochemical plant. “This MoU not only strengthens the national petrochemical sector but also brings Indonesia closer to its vision as a pioneer of green technology at the global level,” Hartarto said. ExxonMobil has yet to reply to ICIS queries on the projects at the time of writing. In November 2023, then Indonesian President Joko Widodo had said that ExxonMobil is planning to invest up to $15 billion in a petrochemical project and CCS facilities in Indonesia. Indonesia is heavily reliant on imports of petrochemicals, including polymers, amid limited domestic production. Its current sole integrated petrochemical complex located in Cilegon, Banten province, is operated by Chandra Asri Petrochemical ExxonMobil and Indonesia’s state-owned energy company Pertamina had announced plans last May to do preliminary works to develop and build a CCS hub in the Sunda-Asri basins in the Java Sea, in northern coast of Java Island. A preliminary study by the two companies indicates the basin has the potential to store up to 3 gigatonnes of carbon dioxide (CO2). The project is estimated to require a $2 billion investment. Thumbnail image: A transport ferry sailing toward the sea port in Merak, on Java Island, from Sumatra island, in Indonesia, on 17 July 2024. (Adriana Adie/NurPhoto/Shutterstock)
SHIPPING: Container vessel ops at US Port Houston to resume today
HOUSTON (ICIS)–Container vessel operations will begin at Port Houston at 19:00 local time on Wednesday, while all Port Houston facilities will begin normal operations on Thursday. Port Houston closed all facilities on Tuesday, and they will remain closed through Wednesday because of a winter storm that brought snow and icy conditions to the region. Container terminal truck gates closed Monday afternoon and vessel operations were suspended later that evening. At the Port of New Orleans in Louisiana, both Ports America and New Orleans Terminal will remain closed through Thursday. Ports America and New Orleans Terminal will run gate operations on Saturday, 25 January.
UPDATE: US freeze shuts numerous chem plants, major ports
HOUSTON (ICIS)–Winter storm Enzo, which caused a hard freeze along the US Gulf Coast, led to widespread shutdowns among chemical plants and refineries. Companies shut down at least five ethylene glycol (EG) units and at least eight crackers because of bad weather. Other plants, such as a propane dehydrogenation (PDH) unit, also shut down. Pre-emptive shutdowns and operational disruptions reported so far include: BASF idles Geismar, Louisiana, EO operations following winter weather BASF TotalEnergies cracker shuts down due to weather Dow’s Plaquemine, Louisiana, glycol ethers site down following winter weather Dow’s Taft, Louisiana, glycol ethers site down following winter weather Dow idles Taft, Louisiana, EO site following winter weather Dow’s Taft, Louisiana, ethanolamines site down following winter weather Enterprise’s PDH1 unit in Texas has unplanned shutdown Formosa shuts Louisiana PVC unit ahead of freeze GCGV Portland, Texas, EG site down ahead of freezing temperatures Indorama’s Clear Lake, Texas, EG site down for winter weather Indorama Lake Charles cracker shut due to weather Indorama shuts Port Neches, Texas, cracker ahead of winter storm Indorama’s Port Neches, Texas, ethanolamines unit down due to winter weather Indorama’s Port Neches, Texas, EG unit down ahead of winter weather Ingleside, Texas, cracker shut before winter storm LACC Lotte/Westlake Louisiana cracker and EG unit down ahead of winter weather Lyondell Channelview, Texas, crackers flaring on operations issues Lyondell La Porte, Texas, cracker shutting due to weather Sasol’s Lake Charles, Louisiana, EO unit down following freezing temperatures Shell’s Geismar, Louisiana, EO, EG site down following winter weather SHUTDOWNS AT REFINERIES AND BIOFUELSMotiva’s refinery in Port Arthur, Texas, experienced unexpected interruptions and shutdowns of several critical pieces of equipment, it said in a filing with the Texas Commission on Environmental Quality (TCEQ). The disruptions caused emissions at a catalytic reformer, a fluid catalytic cracking (FCC) unit and a delayed coker unit. Renewable Biofuels conducted a planned shutdown at its biodiesel plant in Port Neches, Texas, for freeze protection, according to a filing with the TCEQ. MIDSTREAM DISRUPTIONSIn some cases, midstream companies reported freeze offs and hydrates forming. If these happen on a wide enough scale, they could interrupt the supply of natural gas. Chemical plants and refineries burn natural gas to produce process heat, and power plants use it to produce electricity. PORTSPorts in Houston and New Orleans were closed through Wednesday because of cold weather. Container vessel operations will begin at Port Houston at 19:00 local time on Wednesday, while all Port Houston facilities will begin normal operations on Thursday. NO WIDESPREAD POWER OUTAGES Texas avoided the widespread power outages that had led to several plant shutdowns during winter storm Uri in 2021. FREEZING TEMPERATURES TO END BY FRIDAYTemperatures rose above freezing during Wednesday, and daily highs should continue to rise as the week progresses. Lows should be just below freezing on Wednesday and Thursday, according to meteorologists. (Thumbnail shows snow, which can precipitate in the type of cold weather that can disrupt plant operations. Image by Michael Ainsworth/AP/Shutterstock)
Brazil’s grain harvest expected at record 322 million tonnes, up 8%
SAO PAULO (ICIS)–Brazil’s fertilizers-intensive agricultural sector is expected to produce 322.3 million of grains, pulses, and oilseeds in the 2024-2025 harvest, up 8.2% year on year, according to the National Supply Company (Conab). Soybean production will continue dominating Brazil’s agro sector as exports are expected to keep rising, with a sharp recovery in output after a lower-than-expected harvest in the previous period. In 2024-2025, Brazil’s is expected to produce more than 166 million tonnes of soybean, up by more than 11% from the prior harvest. The country’s warm weather and its fertile land allows for two harvests a year in some grains, such as corn for which total production is expected at 119.6 million tonnes in 2024/2025, up 3.3%. Rice output is also expected to rise sharply in the current cycle, up 13.2% to 11.99 million. The 2023-2024 cycle was greatly disrupted by weather events such the historic floods in Rio Grande do Sul state in May 2024 as well as high temperatures and a severe drought in other parts of the country. In 2024, Brazil’s harvest stood at 292.7 million tonnes, down 7.2% from 2023. “After a year of crop failure, the current cycle tends to recover the average productivity of crops. For this season, an average yield of 3,509 kilograms per hectare (kg/ha) is expected, compared to 3,201 kg/ha recorded in 2023/2024,” said Conab. “The planting of the oilseed occurred in a concentrated manner, mainly from the end of October. As a result, the harvest should also occur, for the most part, from the end of January. The weather conditions, in the period analyzed, have been favorable for the crop so far.” WORLD BREADBASKETAfter dips in the previous cycle, Brazil’s grain exports, which have made it a key breadbasket for the world’s markets, are expected to regain much of the ground lost. In 2024-2025, soybean exports are expected at 105.47 million tonnes, up from the prior cycle’s 98.6 million tonnes. Among others, China is one of the key consumers of Brazilian soybean, which the country uses mostly to feed livestock. Corn exports are expected to fall as domestic consumption rises, said Conab, with shipments overseas expected at 34 million tonnes, down from 38.5 million tonnes – the result of a higher, 86.4 million tonnes consumption by Brazilian consumers, up from 83.57 million tonnes in the previous cycle. “An important addition to rice on Brazilians’ plates, total bean production is also expected to grow by 4.9%, estimated at 3.4 million tonnes, the second largest harvest in the last 15 years, behind only the 2013/2014 season,” said Conab. “The result reflects both the increase in area and productivity. In the first legume harvest alone, the harvest is expected to increase by 15.5%, estimated at just over 1 million tonnes. The harvest of this first cycle of the crop is underway, with 19.4% completed in the first week of January.”
Packaging and Packaging Waste Regulation enters into law
LONDON (ICIS)–The Packaging and Packaging Waste Regulation (PPWR) has passed into law following its publication in the Official Journal of the EU on Wednesday. The PPWR was certain to pass into law following the EU Council vote in December, but the date of publication marks the date the legislation comes into force. This date is important for several of the clauses. For example, the EU Commission will be required to review the state of technological development and environmental performance of bio-based plastic packaging within 3 years of the commencement of the PPWR. The PPWR is one of the most significant pieces of legislation for the packaging and recycling value chains in decades and will fundamentally reshape both industries in the coming decades. The wide-ranging regulation introduces: • 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 labeling obligations • Extension of extended producer responsibility (EPR) schemes • Restriction on placing on the market of food-contact packaging containing per- and polyfluorinated alkyl substances (PFAS) above certain thresholds • Restriction on plastic collation films except for transportation purposes • Possibility of bio-based plastic contributing to recycling targets • Allowance of imports to count toward recycling targets provided they are of similar quality as domestic material and have been separately collected More details on the scope and impact of the PPWR can be found here. ICIS assesses more than 100 grades throughout the recycled plastic value chain globally – from waste bales through to pellets. This includes recycled polyethylene (rPE), recycled PET (rPET), rPP, mixed plastic waste and pyrolysis oil. On 1 October, ICIS launched a recycled polyolefins agglomerate price range as part of the Mixed Plastic Waste and Pyrolysis Oil (Europe) pricing service. For more information on ICIS’s recycled plastic products, please contact the ICIS recycling team at recycling@icis.com.
INSIGHT: Trump’s first-day orders lay groundwork for future tariffs
HOUSTON (ICIS)–US President Donald Trump did not propose any new tariffs on his first day in office, but he did issue an executive order that calls for his administration to conduct the investigations needed to impose them under several sections of the law – in many cases, repeating the same playbook Trump used during his first term in office. While the investigations take place, the US can use the threat of possible tariffs to negotiate agreements. If the negotiations fail, the US would have taken the steps necessary to respond with tariffs. Trump did indicate that he is considering imposing tariffs on Canada and Mexico as early as 1 February. This could rely on using existing laws in unprecedented ways. The US chemical industry is vulnerable to tariffs because it has deficits in commodities such as benzene, melamine and methyl ethyl ketone (MEK). Its large exports of plastics make it vulnerable to retaliatory tariffs. TRUMP LAYS FOUNDATION FOR TARIFFSAmong the investigations that will be launched by Trump’s executive order, those into national security could lead to Section 232 tariffs, which Trump imposed on steel during his first term. Discriminatory trade practices would open the door to Section 201 tariffs, which were imposed on washing machines and solar panels. Unfair trade practices could lead to Section 301 tariffs. The US imposed these against numerous Chinese imports. That unleashed a trade war, with China imposing retaliatory tariffs, many of which targeted US exports of plastics and chemicals. POSSIBLE NEW TARIFFSTrump’s first-day order pointed to other reviews that his administration could complete faster and lead to new tariffs imposed under different sections of the law. These could fall under the International Emergency Economic Powers Act of 1977 (IEEPA), Section 338 and Section 122. Trump’s first-day order did not mention these specific laws, but it did mention national security, discriminatory actions against US products and balance of payment deficits – all issues that these laws were designed to address. These laws could allow Trump to impose tariffs on a faster schedule. The IEEPA only requires consultation with Congress, and Section 1222 can apparently be imposed unilaterally, according to the American Action Forum (AAF), a think tank. THREAT OF CANADIAN, MEXICAN TARIFFS ON 1 FEBRUARYTrump would need such speed if he were to impose 25% tariffs on Canada and Mexico goods on 1 February, a possibility that he mentioned on Monday, according to CNBC and other publications. Drug trafficking and immigration could provide the national security basis needed under these laws. REVISITING THE PHASE 1 AGREEMENT WITH CHINATrump’s first-day order called for a review of the Economic and Trade Agreement to determine if China is living up to its end of the deal. The agreement is more commonly known as the phase one deal, and the two countries signed it in January 2020. It included commitments by China to purchase more goods from the US; to adopt policies that will protect intellectual property; and to reduce pressure on companies to transfer technology. China has not fulfilled its import commitments under the agreement, and Trump’s order said the country could impose additional tariffs in response. US CHEMS VULNERABLE TO TARIFFSUnless Trump carves out exceptions, his proposed tariffs on China and Mexico could raise costs for US chemical producers. Canada provides US refiners with heavier grades of oil that are not produced in sufficient quantities domestically for the nation’s refineries. Canadian oil complements the light grades of oil that the US produces in abundance from its shale fields. Regional US markets may rely on Canadian imports because they are closer than the more distant sources along the US Gulf. Those customers will have to reroute their supply chains if they want to avoid tariffs. For the broader tariffs that Trump proposed in his campaign, they could prompt countries to impose retaliatory duties on US shipments of plastics and chemicals. The US is vulnerable to such tariffs because it has large surpluses of many plastics and chemicals, such as vinyl acetate monomer (VAM), methanol, ethylene glycols (EG), polyethylene (PE) and polyvinyl chloride (PVC). Tariffs on Chinese imports of rare earth materials would increase production costs for catalysts. Tariffs on fluorspar and hydrofluoric acid (HF) could increase costs for US producers of fluorochemicals and fluoropolymers. Insight article by Al Greenwood (Thumbnail shows cranes and containers, which make up important infrastructure used in international trade. Image by Costfoto/NurPhoto/Shutterstock)
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