LONDON (ICIS)–On 21 July a spokesperson for the Dutch Ministry of Climate and Green Growth told ICIS that €1.78 million per megawatt (MW) of electrolysis capacity is the average grant amount for the 11 renewable hydrogen projects in the latest round of the government’s development of the hydrogen economy scheme (OWE). OWE awarded a total of over €700 million in subsidies for a combined 602MW of electrolyser capacity. OWE provides up to 80% of the capital costs for building a hydrogen production plant and covers the difference between the cost of generating renewable hydrogen and the cost of generating carbon-intensive hydrogen through steam methane reforming. The ministry also revealed the MW per project, with energy companies Air Liquide and Uniper securing the largest share of subsidised capacity, with 192MW and 178MW respectively. This makes up over 60% of the total. A spokesperson for Uniper has confirmed to ICIS that the subsidy has been awarded for the company’s 500MW Maasvlakte project, for which it targets operations by 2030. The company has not disclosed the amount awarded. ICIS has reached out to Air Liquide for the details of its awarded project in Rotterdam. In February the company announced it will build a 200MW plant there, which is expected to be operational by 2027. It has an estimated production of up 23,000 tons of renewable and low-carbon hydrogen annually and will supply energy major TotalEnergies through a long-term contract. In 2024 the company began construction of the Porthos carbon capture and storage project in the port of Rotterdam, which is expected to be completed in 2026 and aims to enable the production low-carbon hydrogen.

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 18 July. INSIGHT: Tariffs on EU would pile on costs for US aromatics imports With Friday’s announcement of duties on EU goods, the US has proposed additional tariffs on just about every one of its major sources of imported aromatics, leaving domestic buyers few options to avoid the charges if they go into effect as planned on 1 August. Indonesia reaches trade deal with US – president The US reached a trade deal with Indonesia, the nation’s president said on Tuesday. Under the agreement, the US will charge a tariff of 19% on imports from Indonesia, President Donald Trump said on social media. For transshipments from countries subject to higher rates, the US will impose the higher rate on top of the Indonesia rate. INSIGHT: Indonesian tariffs leave US oleos few options to avoid higher costs The 19% tariffs that the US will impose on Indonesian imports will leave the nation’s oleochemical industry with few options to avoid the higher rates, given the archipelago’s role as the largest supplier of oleochemicals and feedstock. US investigation into Brazil policies points to more tariffs The US has started an investigation into Brazilian policies under Section 301, the same provision it used to impose tariffs on numerous Chinese imports in 2018. Indonesia tariff agreement could drive increase in US PE imports Indonesia’s tariff agreement with the US could result in more imports of polyethylene (PE) flowing from the world’s biggest economy into southeast Asia’s second biggest PE consumption market. US home builder confidence edges up on passage of Trump’s fiscal bill US builder confidence in the market for newly built single-family homes improved slightly in July following the passage of US President Donald Trump’s fiscal bill, the National Association of Home Builders (NAHB) reported on Thursday. INSIGHT: Muted EU reaction to US tariff proposals underplays its true implications A relatively sanguine EU market reaction to the latest US tariff proposals belies the fact that, come August, the bloc could face duties on exports to the country that would have been unthinkable seven months ago. INSIGHT: National standards to cut recycled-plastics costs amid virgin glut National US standards for recycled plastics would make it easier for companies to collect waste plastic, which would lower costs and make the material more competitive in a market oversupplied with virgin resin, the American Chemistry Council (ACC) said.

SAO PAULO (ICIS)–The latest US tariffs on Brazilian goods due to come into force on 1 August are related to “political” issues rather than trade and could still be revised or revoked, according to credit ratings agency Moody’s. John Rogers, senior vice president and head analyst for chemicals at Moody’s, said a revision to US tariffs is also likely due to their political nature and the fact that Brazil does not have a surplus in goods trade with the US – with the US running an even larger surplus than the average. When announcing the tariffs last week, US President Donald Trump justified them for what he described as a “witch hunt” against former President Jair Bolsonaro, who is on trial for an alleged coup attempt in January 2023. “We don’t have a house view on the macroeconomic impact yet. I think the situation is very fluid, but in the past few months, we have had several announcements that were later revoked or revised. Hopefully, everything gets resolved before 1 August but, if not, I think the impact on both the US and Brazil is going to be significant,” said Rogers. “From the corporate side we can say that this, for sure. It adds challenges and uncertainties to business decisions, to investment decisions, to global trade and to prices. Ultimately, this would have an impact on demand which is already depressed. Not only for Brazil in general, but for the chemical sector globally.” Rogers said although most US tariffs are being directed at countries that have a trade surplus with the US, it is not the case for Brazil. Not only does the US have a large trade surplus with Brazil, it also enjoys a trade surplus in chemicals, according to chemicals trade group Abiquim. Last year, Brazil posted a significant trade deficit with the US – importing $10.4 billion worth of chemicals, but exporting just $2.4 billion. “Most of the tariffs we are seeing are directed to countries that have trade surpluses with the US – Brazil does not have one,” Rogers pointed out. Many in Brazil’s industrial sector expect the crisis to be sorted out well before the 1 August deadline – and do not expect the tariffs to be implemented – at least not by the damaging percentages announced earlier. “We simply need this to be reversed and we think it will be reversed very soon. Otherwise, this will be a big impact on us here in Brazil: 20% of our exports are destined for the US,” said a source in the powerful food sector, a large consumer of polymers. “We’re not even counting on this becoming a reality in August. We’re counting on this to be resolved sooner.” However, the more pessimistic expect GDP growth to be hit by about half a percentage point over the next three years. “Our Tariff Impact Model indicates that a 50% US import tariff could exert a hit of about 0.6% on Brazil’s GDP over a three-year period. We suspect that the impact would be mitigated by a fall in the real – it declined by about 2.5% against the dollar yesterday and we expect a further depreciation this year – and some redirection of exports to other markets,” said analysts at Capital Economics. “That might leave the impact in the order of 0.3-0.5% of GDP. So, it is not an enormous hit, but also not helpful at a time when the economy appears to be slowing sharply.” Front page picture shows the Brazilian flag Picture by Fernando Bizerra Jr/EPA/REX/Shutterstock

LONDON (ICIS)–Click here to see the latest blog post on Chemicals & The Economy by Paul Hodges, which looks at the ARG pipeline network and the threat to Europe’s chemical industry. 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. Paul Hodges is the chairman of consultants New Normal Consulting.

SINGAPORE (ICIS)–India’s Reliance Industries Limited (RIL) on 18 July reported a 10.8% year-on-year increase in its oil-to-chemicals (O2C) earnings before interest, tax, depreciation and amortization (EBITDA) amid favorable margins on domestic fuel retail and downstream chemical deltas. in crore Indian rupee (Rp10,000,000) Apr-Jun 2025 (Q1 FY2026) Apr-Jun 2024 % Change Revenue 154,804 157,133 -1.5 Exports 59,245 71,463 -17.1 EBITDA 14,511 13,093 10.8 Revenue fell 1.5% year on year in the fiscal first quarter ended 30 June amid falling crude oil prices and lower volumes, the latter due to planned shutdowns, the Indian chemicals major said in a statement. RILS’ O2C EBITDA margin grew 9.4% in April-June this year from 8.3% in the same period a year earlier. Earnings for the period were offset by “lower volumes due to planned turnaround, and decline in polyester chain margins”. Domestic polymer demand rose by 2% year on year in Q1 FY26, with polypropylene (PP) demand up by 7%, led by packaging, furniture, and automotives, polyethylene (PE) demand decreasing by 1% amid lower demand from the infrastructure sector, and polyvinyl chloride (PVC) demand remaining stable year on year despite the early arrival of the monsoon season. Domestic polyester demand grew by 3% over the same period, with polyethylene terephthalate (PET) demand down 10%, due to lower demand from beverages sector amid the early monsoon onset. Polyester filament yarn (PFY) demand increased by 9%, and polyester stable fiber (PSF) demand by 3%, both amid improved downstream operations. POLYMER MARGINS SHOW MIXED TRENDSPolymer margins showed varied trends in Q1 FY26, with PP margins jumping by 13% and PVC margins up by 4%, while PE margins were lower, falling by 1% year on year. The price of ethylene dichloride (EDC) was at $184/tonne, down 42% year on year with increased availability due to strong caustic prices, while Singapore naphtha price was lower by 14% at $561/tonne. PP margin over naphtha improved to $360/tonne from $318/tonne in the same period a year ago on lower feedstock prices, whereas PE margin over naphtha declined to $325/tonne from $330/tonne in the same period last year as higher supplies pressured product prices. PVC margin over EDC and naphtha rose to $385/tonne from $371, primarily led by a sharp decline in EDC prices. Meanwhile, the polyester chain margin decreased to $446/tonne from $489 in Q4 FY24, driven by a significant 34% drop in PX margin over naphtha due to a sharp increase in PX supplies.

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 18 July. Ammonia trend to remain bullish in August on tight supply Tight availability will continue to be the main factor characterizing the ammonia market in August. German chemical production lags pharma as output shrinks in first half Chemicals production in German contracted 3% in the first half of 2025 offsetting an expansion in pharmaceuticals output to drive the industry as a whole to a 1% contraction, trade body VCI said on Thursday. PVC closures in Europe highlight shrinking market, weak competitiveness When almost half a million tonnes of capacity closes in a year, there is clearly a systemic issue. BASF, Covestro warnings underscore global weakness as EU tariffs loom BASF and Covestro’s moves to manage expectations for full-year earnings growth underline the precarity of global economic growth, with potential for heavy US tariffs on the EU only serving to further weigh on sentiment. Europe methanol market flooded with imports, congestion at Rotterdam in July European methanol storage and logistics face difficulties in early Q3, with pressure on Rotterdam terminals expected to continue this summer.

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 18 July. EU, Indonesia push for free trade deal as US tariffs loom By Nurluqman Suratman 14-Jul-25 13:03 SINGAPORE (ICIS)–The EU and Indonesia are pursuing a comprehensive economic partnership agreement (CEPA) amid continued uncertainties over US tariffs. China likely to see much slower GDP in H2 as frontloading fades By Fanny Zhang 15-Jul-25 14:31 SINGAPORE (ICIS)–China’s economic growth is expected to slow sharply in the second half of the year as exports will likely stumble and frontloading diminishes, analysts said. US tariff-driven trade shifts worry Asia petrochemical players By Jonathan Yee 15-Jul-25 15:08 SINGAPORE (ICIS)–Petrochemical trades in Asia have largely stayed cautious as players grapple with potential shifts in cargo flows, as most countries in the region have yet to strike bilateral deals with the US with just two weeks to go before Donald Trump’s hefty reciprocal tariffs take effect on 1 August. Indonesia oleochemical makers hopeful but cautious on US’ 19% tariffs By Helen Yan 16-Jul-25 11:40 SINGAPORE (ICIS)–Indonesian oleochemicals producers are hopeful and confident that their exports to the US will be more competitive than their Malaysian rivals but they remain cautious as the outcome of the trade negotiations between the US and Malaysia have not been finalized. Indonesia central bank lowers interest rate amid US trade deal By Jonathan Yee 16-Jul-25 17:49 SINGAPORE (ICIS)–Bank Indonesia (BI) lowered its key interest rate – the seven-day reverse repurchase rate – by 25 basis points (bps) to 5.25% on Wednesday amid a trade deal struck by Indonesia with the US. INSIGHT: China H2 exports may slump as frontloading effects fade By Nurluqman Suratman 17-Jul-25 10:48 SINGAPORE (ICIS)–China’s exports held up well in June despite a challenging trade landscape but this major pillar of growth for the world’s second-biggest economy is likely to slow sharply in the second half the year as frontloading effects fade away. Singapore June petrochemical exports fall 10.2%, NODX swings to expansion By Nurluqman Suratman 17-Jul-25 11:09 SINGAPORE (ICIS)–Singapore’s petrochemical exports fell by 10.2% year on year to (S$) 1.09 billion in June, but overall non-oil domestic exports (NODX) rose ahead of US tariffs which are expected to weigh on the trade-reliant economy in the latter half of this year. Indonesia tariff agreement could drive increase in US PE imports By Izham Ahmad 17-Jul-25 12:48 SINGAPORE (ICIS)–Indonesia’s tariff agreement with the US could result in more imports of polyethylene (PE) flowing from the world’s biggest economy into southeast Asia’s second biggest PE consumption market. INSIGHT: Asia chemical prices to decrease in July with rising supply By Amy Yu 17-Jul-25 13:00 SINGAPORE (ICIS)–Most of Asia’s petrochemical prices are expected to decrease in July, with market sentiment turning bearish due to rising supply and uncertain trade and tariff outlooks. Thailand rPET feedstock prices drop to record low on weak uptake By Arianne Perez 18-Jul-25 13:30 SINGAPORE (ICIS)–Spot prices of post-consumer bottle bales in Thailand breached a new record low amid ample supply from local waste suppliers, countered by weak demand from recyclers.

HOUSTON (ICIS)–Mining major BHP announced it will now cost between $7 billion to $7.4 billion for the first stage of the Jansen potash project in Saskatchewan with production reset to begin in mid-2027. Stage one of the project is currently 68% completed with the company having already spent $4.5 billion on this phase. The development had been expected to cost the company $5.7 billion and was recently targeting a start during 2026. BHP said the estimated increases are due to cost escalation pressures, design development and scope changes, and their current assessment of lower productivity outcomes over the construction period. It is also considering extending first production from Jansen Stage 2 by two years until 2031. This is being done as part of a regular review of capital expenses and given potential for additional supply coming to market in the medium-term.

HOUSTON (ICIS)–National US standards for recycled plastics would make it easier for companies to collect waste plastic, which would lower costs and make the material more competitive in a market oversupplied with virgin resin, the American Chemistry Council (ACC) said. The group has unveiled a three-point plan that it said will make it easier for companies to collect waste plastic that can then be converted into recycled plastic. In addition, it recently testified in a hearing held by the Energy and Commerce Subcommittee of the House of Representatives, the lower legislative chamber of the US Congress. US NEEDS NATIONAL RECYCLING STANDARDSWhile there is plenty of currently available recycled plastic, several brands and converters continue to struggle with material quality, premium cost and manufacturing adoption, some of which could be improved with a focus on waste plastic collection and recycling infrastructure. National standards would ensure that US households have access to recycling, the ACC said. Standards would provide clear definitions of recycled and recycling content. They would also expand and modernize the infrastructure needed to collect waste plastic. Waste plastic is the feedstock that companies process to make recycled plastic. If collection costs fall and the quality of recycled plastic feedstock improves, recycled plastics would have an easier time competing with virgin material. Lawmakers have taken some steps towards passing recycling policies. Last year, two bills which would provide funding for recycling infrastructure and collect data on recycling and composting. The Recycling Infrastructure and Accessibility Act (RIAA) and the Recycling and Composting Accountability Act (RCAA) gathered broad based bipartisan support, but ultimately did not pass. Similarly, last year Congress introduced a bipartisan bill, Accelerating a Circular Economy for Plastics and Recycling Innovation Act. It would have required the nation’s environmental regulator to create national plastic recycling standards. It also set a 2030 goal for plastic packaging to contain at least 30% of recycled content. One of the bill’s sponsors is retiring, so a similar one would need to start from scratch, said Ross Eisenberg, president of America’s Plastic Makers at the ACC. He made his comments in an interview with ICIS. THREAT OF MULTIPLE STATE REGULATIONSIf the US lacks national policies, states will adopt their own rules and create a patchwork of regulations that will increase compliance costs for companies. So far, seven have passed plastic packaging laws related to extended producer responsibility (EPR), 10 have passed bottle deposit laws and five have passed standalone laws that set minimum requirements for plastic post-consumer recycled (PCR) content. NATIONAL STANDARDS FOR CHEMICAL RECYCLINGThe US should adopt national standards for chemical recycling, which is also known as advanced recycling, the ACC said. Chemical recycling is an umbrella term for several different technologies that break down plastics at a molecular level. These various processes such as pyrolysis, dissolution and methanolysis have vastly different production and environmental outcomes. According to the ACC, chemical recycling needs to be designated as a manufacturing process to make it easier for companies to develop plants. Right now, such designations are being done on a state-by-state basis. So far, 25 states have passed policies which recognize chemical recycling as a manufacturing process rather than a waste management one. Companies are building chemical recycling plants in states that consider the technology a manufacturing process, Eisenberg said. Though redefining the process is not the only hurdle. Once the plants are built, companies still need assurance that their output would count towards mandates for PCR content and EPR regulations. GLOBAL PLASTICS TREATY CAN SUPPORT US POLICIESThe global plastics treaty under negotiation could act as a starting point to introduce more policies in the US that would create market signals that would stimulate demand, Eisenberg said. If the global plastics treaty gets approved and it included provisions on recycled content and EPR, trade groups like the ACC could point to those provisions as an example that the US should follow. Policies about recycled content could create demand and generate market signals that would encourage companies to make investments to collect waste plastic and process it into recycled material, Eisenberg said. So far, the ACC has reached out to explain the importance of US involvement in the treaty discussions with the new administration of US President Donald Trump, Eisenberg said. “We’re really encouraged by what we are seeing out of them,” he said. The US has sent representatives to most of the lead-ups to the pre-meetings of the treaty negotiations, and Eisenberg expects that they will send some form of delegation to the next round of talks. The next UN meeting on the treaty (INC 5.2) is expected be held 5-14 August 2025 in Geneva, Switzerland. The US position aligns with the ACC’s, which wants the treaty to focus on ending plastic pollution and not on banning plastic, according to a report by Climate Home News. Insight article by Al Greenwood Additional reporting by Emily Friedman Thumbnail image: Plastic waste (Image by RICHARD VOGEL/AP/Shutterstock)