Indonesian Chandra Asri to build chlor-alkali, EDC unit

Spanish Market: Chemicals
18/06/25

Indonesian petrochemicals and energy firm Chandra Asri has signed an agreement with sovereign wealth funds Danantara and the Indonesia Investment Authority to jointly develop a chlor-alkali ethylene dichloride (CA-EDC) plant in Cilegon city, Banten.

Danantara and INA will jointly invest about $800mn in the project. The plant aims to boost Indonesia's production of caustic soda and EDC to strengthen industrial downstream self-sufficiency and reduce import dependency of inputs for industries such as water treatment, soap and detergent manufacturing, alumina refining and nickel processing.

In a first phase, Chandra Asri will build a plant with a production capacity of 400,000 t/yr of solid caustic soda (equivalent to 827,000 t/yr in liquid form) and 500,000 t/yr of EDC. A potential second phase could expand production and introduce chlorine derivatives, depending on the outcome of ongoing feasibility studies.

"The chemical sector underpins key value chains — from manufacturing to energy transition — especially in nickel processing and alumina refining," Danantara chief investment officer Pandu Sjahrir said. "This investment strengthens national resilience by reducing import dependence on essential products like caustic soda and EDC," he added.

The joint venture is expected to generate EDC export earnings of up to 5 trillion rupiah/yr ($306mn) and trim Indonesia's import bill for caustic soda by Rp4.9 trillion/yr.

By Haridas

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15/07/25

EU proposes support package for chemicals sector

The measure aims to address high energy costs, global competition and weak demand, writes Dafydd ab Iago Brussels, 15 July (Argus) — The European Commission on 8 July proposed measures to support the EU chemicals sector, aiming to address high energy costs, global competition and weak demand. The plan includes extending emissions trading system (ETS) compensation to more producers and simplifying fertilizer registration rules. The commission says the simplification measures could save the sector €363mn/yr ($423mn/yr). The proposals are part of a broader plan to boost competitiveness and secure supply chains. A new Critical Chemicals Alliance will identify key production sites needing policy support, targeting trade issues such as supply chain dependencies and market distortions. The commission also pledged to apply trade defence measures more quickly and expand chemical import monitoring. Although the commission stopped short of proposing a Critical Chemicals Act — which would legally define specific chemicals for support — it named steam crackers, ammonia, chlorine and methanol as "essential" to the EU economy. The alliance will aim to align investment and co-ordinate support, including through the bloc's Important Projects of Common European Interest programme. The commission also defined low-carbon hydrogen and plans to allow more state aid for electricity-intensive chemical producers by year-end. It encouraged the use of carbon capture, biomass, waste and renewables. The plan uses "all levers" to put the sector back on a growth track, with measures to retain steam crackers and other key assets in Europe, EU industry commissioner Stephane Sejourne says. He also highlighted efforts to secure domestic demand for "clean and made-in-Europe chemicals". Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Italy's Agroenergy plans 'zero-emission' biorefinery

10/07/25

Italy's Agroenergy plans 'zero-emission' biorefinery

London, 10 July (Argus) — Nine organisations including Italian Agrolio-Agroenergy biogas plant and research institutions have partnered to design a fully integrated "zero- emission" biorefinery using olive mill waste as feedstock. Agrolio-Agroenergy, also known as BTS biogas, operates and builds biogas and biomethane plants primarily in Italy, but also in France, the UK, Belgium and the US. The biorefining innovation project plans to create a biorefinery capable of producing "zero-emission" bioproducts including bioplastics, bioenergy, biofertilisers, and biopesticides, according to the firm's press release. It remains unclear where the new biorefinery site will be located and what its capacities will be. Agrolio has yet to reply to a request for comments. The EU is the largest producer of olive oil and the process currently generates large volumes of waste. The improper disposal of olive mill waste can lead to soil degradation and water pollution. The biorefinery will use green chemistry and microbial processes instead of conventional methods to convert the olive mill feedstock into useable bioproducts. The project will run for four years and is receiving €4mn ($4.68mn) in funding from Horizon Europe, the EU's funding programme for research. By Tim van Gardingen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU proposes support package for chemicals sector

08/07/25

EU proposes support package for chemicals sector

Brussels, 8 July (Argus) — The European Commission today proposed a package of measures to support the EU chemicals sector, aiming to address high energy costs, global competition and weak demand. The plan includes extending emissions trading system (ETS) compensation to more producers and simplifying fertilizer registration rules. The commission said the simplification measures could save the sector €363mn/yr. The proposals are part of a broader action plan to boost competitiveness and secure supply chains. A new Critical Chemicals Alliance will identify key production sites in need of policy support, including on trade issues such as supply chain dependencies and market distortions. The commission also pledged to apply trade defence measures more quickly and expand chemical import monitoring under an existing surveillance task force. While the commission stopped short of proposing a Critical Chemicals Act — which would legally define specific chemicals for support — it named steam crackers, ammonia, chlorine and methanol as "essential" to the EU economy. The alliance will aim to align investment and co-ordinate support, including through the bloc's Important Projects of Common European Interest (IPCEI) programme. The commission also decided on new rules legally defining low-carbon hydrogen today and said it plans to allow more state aid for electricity-intensive chemical producers by the end of the year. It also encouraged the use of carbon capture, biomass, waste and renewables. EU industry commissioner Stephane Sejourne said the action plan uses "all levers" to put the chemicals sector back on a growth track, with measures to retain steam crackers and other key chemical assets in Europe. He also highlighted efforts to secure domestic demand for "clean and made-in-Europe chemicals". The commission will align fertilizer registration rules with the EU's REACH chemicals framework, applying standard REACH provisions and streamlining the assessment of micro-organisms used in fertilizers. Officials said the changes will maintain safety and agro-economic efficiency standards while allowing a broader range of micro-organisms. For ETS indirect cost compensation, the commission plans to expand the list of eligible chemicals — including organic chemicals and fertilizers — but must first update existing state aid guidelines, a senior EU official said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Dow to close German cracker, other assets by 4Q 2027

07/07/25

Dow to close German cracker, other assets by 4Q 2027

London, 7 July (Argus) — US chemicals firm Dow said today it will permanently close its ethylene cracker in Bohlen, Germany, and chlor-alkali and vinyl assets in nearby Schkopau, in the fourth quarter of 2027. It will close its siloxanes plant in Barry, UK, in mid-2026. "The shutdown of upstream assets in Europe will right-size regional capacity, reduce merchant sale exposure, and remove higher-cost, energy-intensive portions of Dow's portfolio in the region," the company said. The assets were included in Dow's strategic review in April. It said at the time the sites were being considered for idling or closure. The Bohlen cracker has a nameplate capacity of 540,000 t/yr of ethylene and a propylene capacity of 285,000 t/yr. It also has a butadiene extraction unit with a nameplate capacity of 105,000 t/yr. At Schkopau, Dow has a membrane cell chlor-alkali capacity of 250,000 t/yr and 740,000 t/yr of ethylene dichloride capacity. The site previously had around 330,000 t/yr of capacity for chloride monomer (VCM) production, with two lines operating at the site, but Dow closed the larger of the two lines to reduce capacity to roughly 110,000 t/yr earlier in 2024. Dow's polyethylene assets in Schkopau — a 210,000 t/yr LLD-HDPE unit and 108,000 t/yr LDPE unit — were not part of the review and will continue to operate. Dow said closure of the upstream assets would "improve our ability to supply profitable derivative demand and optimise margins". The PE units can utilise an ethylene pipeline that runs between them and Dow's storage and import infrastructure in Stade, Germany. The extended lead-time of the closures will allow Dow to wind down existing contracts and give customers time to attempt to source alternative material. Customers include the former Dow polypropylene plant at Schkopau, which it sold to Brazil-based petrochemical company Braskem in 2011 and that receives feedstock propylene from the Boehlen cracker. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US Senate bill cuts 45Z extension, boosts crops

30/06/25

US Senate bill cuts 45Z extension, boosts crops

New York, 30 June (Argus) — The latest Senate draft of a major US budget bill would extend a biofuels tax break for an additional two years, down from four years in the prior draft, and set far more sweeping limits on foreign feedstocks. The "45Z" clean fuel production credit would last until 2029 and be available for only domestically produced fuels produced from North American feedstocks starting next year, according to a draft released over the weekend by Senate leaders that could be voted on as soon as Monday. An earlier Senate draft proposed extending the incentive through 2031 and cutting credit values for foreign feedstocks by just 20pc. The incentive, part of the Inflation Reduction Act, kicked off this year and currently offers a sliding scale of subsidy to US-made alternative fuels through 2027 based on their greenhouse gas emissions. The updated language is a win for farm groups, which have worried that imports of used cooking oil, tallow, and sugarcane ethanol are hurting demand for home-grown crops that can also be turned into biofuels. Refiners that had previously looked abroad for renewable diesel inputs, expanding US production to record levels last year, would have to pay up for scarcer domestic options. A shorter credit extension could frustrate corners of the industry that had emphasized the need for policy certainty — including companies with plans to start producing novel fuels later this decade — although biofuel incentives have a long history of extensions. For instance, the Senate bill would revive an expired tax credit for small biodiesel producers in a major change from earlier drafts. Facilities with capacities of no more than 60mn USG/yr could claim a 20¢/USG subsidy for up to 15mn USG of annual production this year and next year, supplementing tax breaks they can already claim under 45Z. That could keep more biodiesel plants, which have struggled to adapt to policy changes and competition from larger renewable diesel producers, running after a difficult start to the year. Smaller producers also would benefit from the latest Senate draft preserving the ability of companies without enough tax liability to sell tax credits to others. The bill is otherwise similar to earlier versions. It would still bar regulators next year from considering indirect emissions from land use changes, a shift from current law that in effect ups subsidies for fuels made from crops, another top priority for farm groups. If passed, the typical gallon of US dry mill corn ethanol and canola biodiesel would likely qualify for some 45Z subsidy — unlike under current rules — and soybean-based road fuels would earn larger credits next year. Aviation fuels conversely would see slimmer subsidies starting next year, since the bill would eliminate extra credit under current law for jet fuels over road fuels. That would be a major disruption to airlines and to those refiners that have invested in upgrading more of their renewable diesel output to instead produce sustainable aviation fuel (SAF). Trucking groups had argued that the imbalance was diverting feedstocks away from road markets to costlier SAF production — and that treating fuel types equally was one way conservative lawmakers could reduce the credit's price-tag. More changes possible The bill could be changed further Monday as the Senate proceeds with a process in which lawmakers can propose amendments. If the bill passes, it would go back to the House for approval. President Donald Trump has pushed lawmakers to finalize the sprawling package this week, an ambitious timeline given lawmakers still disagree on key issues. Any revised 45Z credit would also need final rules from the US Department of Treasury, which still has questions to answer about eligibility this year. The ultimate profitability of biofuels will depend on interactions between the tax credit and other policies that are also in flux. That includes a federal biofuel blend mandate, which the Trump administration wants to revamp to discourage foreign feedstocks, and newly tougher carbon intensity targets in California's influential low-carbon fuel standard market. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Indonesian Chandra Asri to build chlor-alkali, EDC unit

Related news posts

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