BASF eyes Ludwigshafen alcoholates restart in 2Q 2022

German chemicals company BASF is working to restart production of alcoholates, used as catalysts to produce biodiesel, at its Ludwigshafen plant in the second quarter of next year, according to an email to customers seen by Argus.

BASF declared force majeure on production of sodium methylate, potassium methylate and sodium ethylate solutions and crystals following a fire at the German plant on 10 August. It has started work to rebuild the sections destroyed by the fire, but it will not be able to produce sodium methylate, potassium methylate and sodium ethylate solution "for the foreseeable future," the email said.

BASF has been trying to source alcoholates from the global market during the repair period and will import sodium methylate solution from its own plant in Brazil, with this likely to arrive in Europe at the end of October. Potassium methylate availability is expected to improve as of the end of November, according to BASF's email.

A force majeure on sodium methylate deliveries declared by German chemical firm Evonik last month has further restricted catalysts availability in recent weeks. BASF and Evonik are key producers of alcoholates, supplying around 80pc of the European market.

Some European biodiesel producers have had to reduce output since the BASF force majeure in August, while others have managed to keep production levels unchanged, participants told Argus.

A combination of tight catalyst supply, high feedstocks costs and strong demand has pushed all Argus fob ARA biodiesel price assessments to record levels in recent sessions, with rapeseed oil methyl ester (RME), fatty acid methyl ester (Fame 0) and used cooking oil methyl ester (Ucome) all hitting all-time highs on yesterday at $2,188/t, $1,828/t and $2,054.23/t, respectively.

By Giulia Squadrin