Petrochemical Industry Getting Worse: BASF

As the economy downturn is getting worse, most of the petrochemical companies are not seeing the bottom-out yet; or signs of recovery for their petrochemical business, at least not from BASF. As BASF CEO CEO Jurgen Hambrecht, put it, BASF is not expecting a growth for 2009, worse still is expected to shrink.

To date, as much as 25% of BASF operating units worldwide have been shut down or idling due to uneconomical route of production especially in North America and Asia Pacific. Most of BASF's units are to make coatings, performance plastics, electronics and intermediates which are taking toll due to significant dropped in automatives and construction business.

BASF is expecting that more operating units will be closed and possible of job cuts; especially for units not serving the crops, hygienes and oil & gas industry. The plastic business seems to be taking the strongest hit so far.

German Biodiesel Power Plant Facing Economic Threat

Germany’s environment ministry in the wake of economic turmoil must act quickly to ensure Germany's power stations running on palm and soy oil-based fuels and biodiesel do not go bankrupt.

This is after a legal change to restrict palm and soy-based fuels to no longer be counted into biofuels quotas. The resulting consequence is that the plants will no longer receive a bonus for using renewable energy from 1 January 2008 impacting most of power plants margin.

BASF Acquired 66.67% Ciba

BASF has reportedly holding 66.67% stake in Swiss specialty chemicals company Ciba after the expiry of the public tender offer period on 28 October. BASF had previously holding some of Ciba's shares. A total of 45,030,453 of Ciba shares had been tendered to BASF as part of the company’s public tender offer to shareholders of Ciba Holding and after combination of BASF's previous shares, it amounted to 1,011,536 Ciba shares capitalizing 66.67%.

BASF Shuts Down Butyl Acetate Unit

BASF is preparing for a turnaround of its 90,000 tonne/year butyl acetate unit in Ludwigshafen, Germany expected to commence on 22 which most likely will push the price up.

First Jatropha Plant By Wartsila Finland

Finland company, Wartsila has won a $11 million contract to build a 9 megawatt combined heat and power (CHP) plant in Belgium that will run on vegetable oil from the jatropha plant and to produce both electricity and heat.

This will be the first Jatropa facility in the world using carbon dioxide neutral fuels that do not compete with food crops since Jatropha oil was a liquid biofuel with great potential as it could be harvested outside the world’s rainforest areas, even near deserts.

Commissioning of the plant is expected to begin in February 2009 operated by Greenpower NV, a joint venture of Thenergo and four local agricultural companies and a private investor.

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BASF Puts-off Coal to Gas Petrochemical Plan

BASF has put off plans for a massive $2.5 billion coal gasification project due to uncertainties over the costs of Europe's emission trading scheme. The petrochemical complex would produce gas from coal as widely practiced in China to make methanol and ammonia, initially planned to be built either at BASF’s base in Ludwigshafen, Germany, or elsewhere.

Coal is regarded as cheap feedstock compared to natural gas for key raw material to the petrochemical industry.

New Dow/BASF HHPO Technology Plant Delayed

Dow/BASF joint-venture for a 300,000 tonne/year capacity hydrogen peroxide-to-propylene oxide (HPPO) plant at Antwerp, Belgium is delayed until the second part of 2008 which was previously scheduled to come on-stream in May 2008. This will be the first HPPO petrochemical plant in the world incorporating the JV technology by Dow and BASF. It was claimed that the process technology is more economical and environmentally friendly.

Sibur and Evonik on Discussion for Propylene Oxide Plant

Propylene oxide facility (PO) using Evonik and Uhde, a german engineering firm is on discussion for Evonik Industries and Russia-based JSC Sibur Holding to undertake a feasibility study on the construction of the chemical plant.

JSC Sibur partnership in the JV most likely is for penetration into the Russian market which may also looking at creating a joint venture to produce hydrogen peroxide to supply the PO plant as well as for applications in the paper and pulp bleaching industry.