Japan’s MGC, JFE to recycle CO2 to produce methanol

: Petrochemicals
25/03/24

Japanese methanol supplier Mitsubishi Gas Chemical (MGC) and steel maker JFE Steel have agreed to conduct a pilot project to produce methanol by recycling CO2, including gas derived from JFE's steel production.

The project is expected to begin in the 2026 fiscal year, the companies announced on 24 March. MGC has started building a 100 t/yr methanol plant for this project in the Mizushima industrial complex, west Japan.

The companies will make methanol using CO2, including gas that comes from JFE's steel production. Petrochemical company Mitsubishi Chemical will then use the methanol to produce propylene, which is a feedstock for plastics production. The new plant will be a mobile facility, as MGC is considering conducting similar methanol production trials in different places in the future.

Separately, MGC is also considering launching a green methanol plant after the 2030 fiscal year, which can supply around 1mn t/yr of methanol, the same capacity as a conventional plant. The company expects an increase in global demand for methanol, especially as an alternative fuel for vessels.

MGC has over 7.5mn t/yr of global methanol production capacity. The group seeks to reduce CO2 emissions by 39pc in the 2030 fiscal year compared with the 2013 fiscal year levels, and to achieve net zero emissions by the fiscal year 2050.

By Kohei Yamamoto

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25/05/16

PETCORE Europe Thermoforms: Collection is key

London, 16 May (Argus) — Ahead of the Petcore Europe Thermoforms Conference in Dijon, France on 27-28 May, the technical manager of Petcore Europe's thermoforming working group, Jose-Antonio Alarcon, spoke to Argus about progress in the European tray-to-tray recycling market. Since we attended the annual event last year in Granada, Spain what has changed for the market? We don't see big changes. Collection is mostly the same, but there have been some developments on recycling projects. The appetite for recycling of tray-to-tray is growing. We have seen more players coming to operate in the tray-to-tray market over the last year, and more capacity is expected to start during this year. Petcore are aiming to make an study of the state of play for the thermoform industry in Europe to have a clear view on the real market size and the final application usage. The distribution between the food contact and non-food contacts, and also between mono and multi-layer, are essential for us and will be discussed in France. Following on from the success of last year's conference, what topics and discussions are you hoping will come up at this year's event? We want to keep energising the market, and building on the momentum. We have five pillars in the thermoforming working group that will be represented at the conference supporting the initiatives in the market. The first one is collection and sorting. If the material is not collected, it is not sorted, it is not recycled, period. We will be visiting a state-of-the-art sorting centre where they separate bottles and trays into mono- and multi-layer streams. The main challenge is how can these best practices be expanded to the rest of Europe. The second is recycling technologies. This is important, because you cannot use the same technologies for recycling bottle and trays because the physical properties of trays are not the same as bottles. Trays are often thinner and more brittle, they generate more dust and need to be treated more gently. Third is food contact, because we need to get the food contact trays back and into the closed loop. The majority of tray packaging placed on the market is in food contact applications, but there is not currently much progress on separate tray collection. There is work to be done in that direction. Then we have design for recycling and standardisation. If you don't design properly for recycling, then it will be very difficult for the market to scale up. And lastly is communication. Consumers need to know that trays can be recycled just like bottles, and we need people engaged. We also have presentations from the European Commission and legislative specialists as this is an important factor in the outlook for the market. Last year there was no specific legislation dedicated to thermoforms. Now we have the Packaging and Packaging Waste Regulation (PPWR) that passed into legislation and has mandated recycle content targets. So is this a positive? There are some positives and negatives. Yes, in the PPWR there is mandated recycled content targets for contact sensitive and non-contact sensitive packaging that will directly impact the tray market. Of course, this should move more people toward the use of tray flake and towards separate collection for tray. One of the impacts of legislation is that a lot of countries are moving to deposit return scheme (DRS) collection on bottles, which is deducting a lot of bottle from the regular yellow bin collection. So there will be a higher proportion of tray coming from this collection which could be a good opportunity for the circularity of trays if this waste is managed properly. And the recycled content targets should give a demand boost to the tray-to-tray market. We also have recycled content targets into bottles from the Single Use Plastics Directive (SUPD) meaning more and more bottle flakes are going back to bottles so that's a good opportunity for tray flakes. PPWR targets 30pc recycled content for contact sensitive packaging and 35pc for non-contact sensitive packaging by 2030. Will Europe be able to reach these targets in the tray market? It could, and it is possible, but it is ambitious. At this time, we are a long way from that point on tray-to-tray and it is very complicated. If we look to the bottle market, these percentages are achievable. Around 70pc of bottles are collected on average in Europe, but less than 30pc of trays. If we achieve similar collection volumes for trays then around 30pc recycled content should be feasible. But it will be challenging. At the moment bottle flake prices are at a significant premium to the virgin PET, which is impacting demand particularly in thermoforming applications and other cost saving markets like strapping and fibre. What impact could this have for PET tray flakes? People try to minimise their impact on the balance sheet, bottom line so less competitive prices versus virgin for rPET bottle flakes and pellets could spur more interest in tray. And maybe with the additional demand for bottle flake or food grade pellets from legislation and recycled content targets, people are looking for an alternative source so that they're not having to compete with that bottle flake market. But for PETCORE the focus is not on cost, our intention is that every package place on the market is collected, sorted and recycled. Over the last 12 months, we've seen quite a few chemical recycling projects being delayed or deferred. Is the difficult business environment across the whole industry an additional challenge for scaling up tray-to-tray? Of course there are challenges. We need to look at how the bottle recycling market has changed in the past 15 years with collection, technology, volume, quality, capacity etc., and the tray market is much later in the in the evolution, so it will take some time in order to achieve a similar situation as the bottle market. Of course, we expect that the speed of acceleration to reach the point of maturity to be faster for trays because we can take some learnings from previous experiences. Five years ago, trays were considered a contaminant at bottle sorting plants, and what we see today is that trays have the possibility to be a properly recycled stream providing another outlet of waste for sorters and recyclers. We need the material to be collected and it will require investment of course. The current infrastructure may be sufficient if managed properly. To increase the number of streams collected and volumes there may not be the need to invest in new infrastructure but just to boost current infrastructures. Chemical recycling is also part of the picture. There is a place for everyone, and mechanical and chemical are absolutely complementary. At the end of the day, we need to try to recover as much material as possible, then minimise the use of virgin resources so we know streams that can be as effective as possible. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Q&A: Braskem Idesa Mexico terminal to feed cracker

25/05/14

Q&A: Braskem Idesa Mexico terminal to feed cracker

Mexico City, 14 May (Argus) — The new ethane storage terminal owned 50:50 by Brazilian-Mexican JV Braskem Idesa and the Netherlands-based Advario will be fully operational by mid-July, when the Etileno XXI cracker returns from a full-stop maintenance program, said Cleantho Leite, chief executive of Terminal Quimica Puerto Mexico (TQPM), in an interview with Argus. Edited highlights follow. What does the new terminal represent for Braskem after years of limited ethane supply? TQPM solves a long-standing ethane supply shortage in Mexico, which remains one of the largest ethane consumers in the region. Under the previous supply contract with Pemex, we did not have full supply. It was like having an F1 car with only 70pc of its fuel — eventually, we would run out of supply before even completing the race. Now, thanks to this terminal, Braskem can import the ethane it needs from the US to ensure consistent operations. Of course, we will continue buying from Pemex whenever possible, as its ethane remains the most cost-effective solution. But with this infrastructure in place, we are no longer tied to a single supply source. When will the terminal begin operating at full capacity? We are currently in pre-operational stages, and commercial operations are expected to begin by late May. Then, the Braskem complex will enter its scheduled maintenance shutdown. Once it resumes in mid-July, we will begin transitioning to full utilization of the terminal. The facility is fully capable of covering up to 100pc of Braskem's demand. In fact, it was designed with a 25pc buffer — excess capacity that could support future expansions. The equipment is ready, and whether we go from 75pc to 100pc in 15 days or in a month will depend entirely on Braskem's operating strategy. What is going to happen with the ethane Pemex no longer uses? For now, I do not see Pemex's own complexes significantly increasing their consumption of ethane. It is not like they will double their intake overnight. At least during 2025, Pemex is still in the process of reactivating its own crackers, so that volume will remain available to Braskem. If Pemex eventually requires more supply, it has its own import terminal. Alternatively, it could request capacity from TQPM if needed. Also, Braskem has long-term contracts that allow flexibility in adjusting volumes. If there is unused ethane in a given month, we can resell it to other locations. That has always been part of our strategy. The Braskem group, through Braskem Trading and Shipping, has consistently found alternatives for any surplus. Do you foresee any regulatory or permitting issues under the new legal framework in Mexico? No. We already hold all relevant permits from the now-defunct energy regulator CRE, which are now under the authority of the new CNE. That means no additional permits are required for the terminal under the new framework. Furthermore, the open-access guidelines established by the CRE are still valid and will be used by the CNE to issue and manage permits. The only other authorizations we need are from customs, which have not hindered pre-operations. Historically, the CRE reviewed transportation tariffs every five years, and we expect the CNE will follow the same regulatory schedule. What is the outlook for Braskem's crackers in Brazil regarding a transition to ethane? In Brazil, Braskem currently operates four crackers — three based on naphtha and one, in Rio de Janeiro, on ethane. The company is studying a broader shift toward ethane to reduce dependence on naphtha. Shipments to Brazil would follow a similar model to what we are doing in Mexico, with contracts signed with US suppliers. Our Salvador Bahia plant already receives ethane occasionally, using vessels that take roughly 12 days to arrive. Mexico has a geographical advantage — just two days away from US ethane. What are the long-term plans for TQPM? Our immediate focus is stable operation and efficiency. Long term, the terminal is well located in the Interoceanic Corridor and could serve future industrial projects. We have space and docking infrastructure to add tanks for chemicals, ammonia or propane. Nothing is confirmed yet, but in 3–4 years we expect opportunities to emerge. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Naphtha no longer competitive feedstock: Braskem

25/05/12

Naphtha no longer competitive feedstock: Braskem

Sao Paulo, 12 May (Argus) — Brazil-based petrochemical producer Braskem is pursuing a strategic shift in polymers production by favoring natural gas liquid (NGL) feedstocks and moving away from naphtha. Naphtha is no longer a competitive feedstock in the petrochemical sector, driving the need for greater flexibility in raw material sourcing, chief executive Roberto Ramos said Monday on the company's first-quarter earnings call. The transition to lighter feedstocks is part of a broader initiative to enhance efficiency, reduce costs, and improve competitiveness amid evolving global petrochemical dynamics, Ramos said. The company's plan focuses on increasing the use of ethane and propane as primary feedstocks in Mexico and Brazil. In Mexico, Braskem has inaugurated an ethane import terminal, which will provide a stable supply to its operations. The facility has the capacity to store 80,000 b/d of ethane, while the polyethylene (PE) plant processes 66,000 b/d. This surplus storage has prompted considerations for a new PE unit in Mexico to maximize the available feedstock. In Brazil, Braskem aims to reduce reliance on naphtha-based PE production by integrating more natural gas-derived inputs. The company is evaluating projects to utilize feedstocks sourced from shale gas extracted in Argentina's Vaca Muerta formation. The petrochemical complex in Rio Grande do Sul, which operates with a mixture of naphtha and natural gas, is among the facilities targeted for increased gas utilization. Braskem's Rio de Janeiro facility is also undergoing expansion of its gas-based assets, adding two new furnaces that crack ethane and propane to increase capacity to 700,000 t/yr. This increased production is anticipated to lower unit production costs and improve profitability. The move to gas-based production is expected to optimize operations and align Braskem's facilities with cost-effective supply chains, Ramos said. The shift comes as global trade dynamics continue to influence raw material availability. While US-China trade agreements have temporarily eased tariff pressures, Braskem is trying to position itself to navigate long-term supply chain uncertainties by diversifying its production inputs. Ramos has also indicated potential investments in ethanol dehydration technology, which would allow select facilities to convert ethanol into ethylene, further supporting PE production with an alternative renewable feedstock. Production and sales Braskem said its first-quarter domestic resin sales fell by 4pc from the same period in 2024, but sales were little changed from the prior quarter. Domestic resin sales totalled 807,000 metric tonnes (t) in the first quarter, down from 839,000t a year earlier. Resin sales volumes remained in line with the fourth quarter last year, but the company highlighted a quarter-on-quarter increase in PE and polypropylene (PP) sales volumes of 2pc and 3pc, respectively, offset by a 16pc reduction in PVC sales. In Mexico, Braskem Idesa's PE sales fell by 11pc from the same period in 2024 and by 5pc quarter-on-quarter, as the company is looking to manage inventory ahead of a planned maintenance shutdown in the second quarter. The plant utilization rate reached 79pc, rising from the fourth quarter on higher ethane availability through the Fast Track solution. But utilization fell by four percentage points year-on-year, mainly due to reduced supply of ethane from Mexico's Pemex. Braskem posted a first-quarter profit of $114mn, rebounding from a loss of $273mn a year earlier and a loss of $967mn in the fourth quarter last year. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU consults on tariffs for €95bn US imports

25/05/09

EU consults on tariffs for €95bn US imports

Brussels, 9 May (Argus) — The European Commission is consulting on an extensive list, worth €95bn ($107bn), of US industrial, agricultural and other imports that could be subject to tariff countermeasures. The long list includes extends from livestock, biofuels, wood pellets to metals, aircraft, tankers and polymers . The consultation runs until midday on 10 June. It is aimed at stakeholders affected by US measures and possible EU rebalancing measures. Also considered for possible countermeasures are restrictions, worth €4.4bn, on EU exports to the US of steel, iron and aluminium scrap, as well as toluidines, alcoholic solutions and enzymes (CN codes 7204, 7602, 292143, 330210 and 350790). The commission linked the possible new measures to US universal tariffs and to Washington's specific tariffs on cars and car parts. The commission said the public consultation is a necessary procedural step. It does not automatically result in countermeasures. The EU also launched a WTO dispute procedure against the US for Washington's universal tariffs, set at 20pc for EU goods and currently paused at 10pc, and at 25pc on all imports of vehicles and car parts. The commission will need approval by EU governments under a simplified legislative procedure. Officials say this will complete a legal act for the countermeasures, making them "ready to use" if talks with the US do not produce a "satisfactory" result. The list of products potentially targeted includes livestock, along with items ranging from spectacles to antiques. The 218-page list includes a range of agricultural and food products including oats, maize, and cereal pellets. Also included are biodiesel and wood pellets (CN codes 38260010, 44013100), as well as paper and cotton products. Aluminium, iron, steel are listed together with a wide range of other goods from gas turbines, ships propellers and blades, aircraft, sea-going tankers and other vessels. Polymers, copolymers, polyesters and other products are not spared (CN codes 39039090 and more). On 10 April, the EU paused its reciprocal tariffs against the US for 90 days, responding to a US pause. The EU notes that €379bn, or 70pc, of the bloc's exports to the US are currently subject to new or paused tariffs. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Chemicals, polymers part of EU tariff consultation

25/05/08

Chemicals, polymers part of EU tariff consultation

London, 8 May (Argus) — Polymer and chemical products are included in a European Commission public consultation on a list of US imports which could become subject to EU countermeasures, if ongoing EU-US negotiations do not result in a mutually beneficial outcome and the removal of the US tariffs. The consultation will remain open until 10 June, after which a final proposal will be made for the adoption of countermeasures and a legal act prepared for imposing them "in case negotiations with the US do not produce a satisfactory result". The list of additional products that could face import tariffs includes many polymers and some chemicals, although appears to target value more than volume. These additions include polypropylene homopolymer and copolymers (HS codes 39021000, 39023000), although these account for a relatively small volume of trade, at 114,000t in 2024, according to GTT data. Other polymer codes on the consultation list include some polystyrene, polyvinyl chloride, acrylonitrile butadiene styrene and polyethylene terephthalate products. Isocyanates and some polyurethanes are part of the consultation. Imports of acetic acid, a methanol derivative were included. EU 27 imports from the US in 2024 were 540,000t. Liquid caustic soda has been included. The EU 27 countries imported 540,000t in 2024. Benzene and xylenes have been included, but only under distinct "non-chemically defined" HS codes (27071000 and 27073000) and for which volumes are small. The European Union on 9 April announced a 90-day delay to a series of planned countermeasures specific to US tariffs on metals to allow space for negotiations. These are separate from the new consultation and remain poised to go ahead if negotiations fail. They included a 25pc tariff on imports from the US of polyethylene under codes representing nearly 1mnt of imports in 2024. By Alex Sands Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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