The downstream rundown: In case you missed it 08/12

In case you missed any downstream news, here are the top stories from last week. For full stories click the link in the title.

bp to sell interest in bp-Husky Toledo Refinery to Cenovus

bp has reached an agreement to sell its 50% interest in the bp-Husky Toledo Refinery in Ohio to Calgary-based Cenovus, its joint venture partner in the facility. Under the terms of the deal, Cenovus will pay $300 MM for bp’s stake in the refinery, plus the value of inventory, and take over operations when the transaction closes, which is expected to occur later in 2022. bp and Cenovus will also enter into a multi-year product supply agreement.

Stamicarbon wins contract for large-scale urea plant in Africa

Stamicarbon, the innovation and license company of Maire Tecnimont Group, has been selected as the licensor for a project in Sub-Saharan Africa. This will be an addition to the existing urea production facilities in the region. Stamicarbon will deliver the Process Design Package for the Front-End Engineering and Design for a 4,000-tpd melt and granulation plant.

The urea melt plant with a pool reactor will use Stamicarbon’s MP Flash Design which is part of the LAUNCH MELT series and the Fluid bed Granulation design including acidic scrubbing which is part of the LAUNCH FINISH series. It is further characterized by low formaldehyde consumption, low dust, and ammonia emissions, high product quality, and high on-stream times. The entire synthesis sections will be in Safurex.

U.S. fuel retailers’ rail against green aviation fuel tax credit

U.S. fuel retailers are fighting the inclusion of a tax credit for sustainable aviation fuel (SAF) in Democrats' $430-B spending bill, arguing SAF is more carbon intense and less efficient than renewable diesel. Lawmakers are offering a $1.25-$1.75 per gallon SAF credit depending on the feedstock used, as part of a tax and climate bill that aims to lower U.S. carbon emissions by about 40% by 2030 and cut the federal budget deficit by $300 billion.

The bill is expected to pass the Senate and move to the House with the SAF credit included next week. Democrats control the House and approval with the credit is expected. Fuel retailers fear the credit would shift vegetable oil and other renewable feedstocks to aviation, leaving less of it for fuel producers that make renewable diesel.

CF Industries to produce blue ammonia in Louisiana

According to Louisiana Economic Development, CF Industries, CF Industries is investing $198.50 MM to build a carbon dioxide and dehydration unit at its Ascension Parish plant in Donaldsonville, Louisiana. The project will enable CF Industries to mitigate carbon emissions.

Ampol lets contract for its Future Fuels Desulfurization project

Ampol has awarded Kent the Future Fuels Desulphurization Project for their Lytton refinery in Brisbane, reducing fuel emissions by 2025. Kent will immediately commence Stage 1 (FEED and LLI’s) and mobilize the project teams to develop the FID package and EPC execution contract leading into Stage 2 in early 2023.

In a win for sustainability, Kent has been awarded the Future Fuels Desulphurization Project by Ampol, where they will support the reduction of fuel emissions by 2025.

Shell awards ABL Group with contract for Rotterdam biofuels plant

ABL Group has been awarded a contract to provide marine warranty survey services (MWS) for the marine transportation of components for a hydrogenated vegetable oil (HVO) plant, which will be part of one of Europe’s biggest biofuels facilities, in Rotterdam, Netherlands.

The project, operated and led by Shell Energy and Chemicals Park Rotterdam, envisages the construction of a biofuels plant with capacity to produce enough HVO – known as a renewable diesel – to avoid 2.8 MMtpy of CO2 emissions, the equivalent of taking more than 1 million European cars off the roads.

Prairie Energy Partners announces $5.6-B refinery in Texas

According to a news report from the Houston Chronicle, Prairie Energy Partners has proposed to build a new $5.6-B, 250,000-bpd refinery outside Victoria, Texas. The next-generation refinery will be powered by blue hydrogen.

Wood to engineer innovative Europe olefin complex

Wood, the global consulting and engineering company, has secured a new contract with INEOS in excess of $100 MM to deliver engineering, procurement and construction management (EPCm) services for Project One, a new state-of-the-art petrochemicals complex in Antwerp, Belgium, which will deliver an ethane cracker with the lowest carbon footprint in Europe.

Effective immediately, the 4-yr contract will be delivered by Wood’s Projects business unit. The scope is focused on the outside battery limit facilities for the ethane cracker and follows the successful completion of front-end engineering design for the facility. Wood’s integrated project management team will also continue to oversee the project, working closely with the INEOS project team.

Topsoe joins circular industrial plastics initiative, will increase plastic recycling by 20%

The newly formed partnership, Circular Industrial Plastics, which consists of large Danish companies, commits to increase recycling of industrial plastics by at least 20% before 2025. Circular Industrial Plastics has a budget of $5.6 MM, of which $2.4 MM were granted by the Danish Eco-Innovation Program under the Danish Environmental Protection Agency. The ambition is to make knowledge and technology within circular plastic available for Danish companies.

India produces ethanol from rice straw/stubble

India opened its first factory to produce ethanol from rice straw or stubble on Wednesday as part of measures to reduce its reliance on oil imports and meet its net zero carbon goal.

Prime Minister Narendra Modi said the project will help cut pollution in India's capital New Delhi, which has been blanketed by smog from stubble burning in recent winters, as well as in the northern states of Haryana and Punjab.

India, one of the world's biggest emitters of greenhouse gases, has set a 2070 goal for net zero carbon emissions and has expedited steps to switch to cleaner energy to cut projected emission by a billion tons by 2030.

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