What's up with the Chemical Industry!

June 2024

Hi there guys!

Let's talk about ChemE news... July its always a great month since BP launches his annual Energy Outlook.

I'm going to focus the FIRST PART of this newsletter in this report.

The SECOND PART will be as usual, ChemE News.

If you like this kind of information, don't hesitate to check out my World Energy Review - 2023 Edition Course (thanks for supporting my project).

We cover a variety of Energy trends and especially:

• Oil, Gas, Coal, Green Energies & electrification!

But for now, let's talk about BP's 2024 Energy Outlook (link to BP website):

BP's Energy Outlook for 2024 (Part 1)

Recall that BP Energy Outlook 2024 explores the future of the global energy system through two main scenarios: Current Trajectory and Net Zero (for 2050).

The Trends:

• Carbon emissions have continued to increase, growing at an average rate of 0.8% per year over the past four years (2019-23)

• The war in Ukraine increased the attention on ensuring energy security
• The increased focus on energy security could support greater emphasis on improving energy efficiency
• Global energy demand has continued to grow, averaging around 1% per year between 2019 and 2023
• Progress on improving energy efficiency has been disappointing (fallen by 1%)
• Investment in low carbon energy is estimated to have grown very rapidly in recent years, up around 50% since 2019 at approximately $1.9 trillion in 2023
• Much of this investment has been deployed in renewable power, with wind and solar power generation almost doubling between 2019 and 2023.
• The energy additions from low carbon sources have not, however, been sufficient to meet the growth in total global energy demand
• Oil and gas upstream investment totalled $550 billion in 2023.
• Growth in oil demand since 2019 – which has averaged around 0.5 Mb/d per year

• Strong growth in natural gas demand in emerging Asian economies

• Growth in electricity has continued to outpace total energy demand growth in recent years as the energy system has increasingly electrified.
• The rapid growth in low carbon generation is putting increased pressure on the infrastructure and governance process supporting power markets
• The number of electric vehicles has risen rapidly, with sales increasing from two million vehicles in 2019 to around 14 million in 2023
• Sales of heat pumps also grew steadily (+75% increase in US + CAN)
• Growth in less mature, higher cost, low carbon energy vectors and technologies (low carbon hydrogen, synthetic biofuels, carbon capture and storage, etc)

• Investment in critical minerals mining and exploration has increased

That will be the summary of the Report, ensure to check it out!

Chemical Industry News (Part 2)

The News

• Honeywell acquires Air Products’ LNG technology, business for $1.8B
  • Air Products to exit heat exchanger business and focus on core industrial gas and related equipment and clean hydrogen.. (read more)

• DuPont to split into three companies
  • Tax-free separations create independent, focused Electronics and Water companies that are global leaders in their respective industries
  • New DuPont will remain a premier diversified industrial company with industry-leading brands and solutions (read more)

• Houston-area producers prepare for restart following Hurricane Beryl
  • The storm appears to have little impact on US Gulf Coast chemical production aside from prompting several precautionary shutdowns.

• Sila raises $375 million for silicon anode plant
  • Silicon anodes can store more energy than the commonly used graphite anodes in lithium-ion batteries.
  • Competitor Group14 Technologies is commissioning a silicon anode facility in South Korea and plans to finish another in Washington this year.

• Lilly to pay $3.2 billion for Springer lab spin-out Morphic
  • Eli Lilly is acquiring biotech firm Morphic Therapeutic for $3.2 billion, aiming to integrate its small molecule integrin inhibitors into its R&D pipeline.
  • Lilly will advance MORF-057 through late-stage studies and continue developing Morphic's other integrin-targeting molecules for various diseases. (read more)
• Phillips 66 achieves full production rates of renewable fuel at Rodeo Renewable Energy Complex
  • Full conversion of the Rodeo Renewable Energy Complex, expanding its renewable fuel production to approximately 50,000 barrels per day
  • It hsould achieve full capacity by Q2 2024. (read more)

• Thermo Fisher Scientific completes acquisition of proteomics solutions provider Olink
  • Thermo Fisher Scientific completed the acquisition of Olink Holding AB, a provider of next-generation proteomics solutions, for approximately $3.1 billion.
  • Olink will become part of Thermo Fisher’s Life Sciences Solutions segment, enhancing capabilities in the high-growth proteomics market. (read more)

• Air Liquide to Support Major Hydrogen Initiative in Germany
  • Air Liquide, RWE AG, and EWE AG are receiving €4.6 billion ($5 billion) in subsidies for nearly two dozen hydrogen infrastructure projects in Germany. (read more)

• European Diesel Trade Thriving After Russia’s Exclusion
  • Trading in European diesel futures and options has surged since the exclusion of Russian crude, with ICE reporting record open interest and quarterly volumes in June.
  • ICE banned Russian fuel deliveries into its gasoil contract in early 2023 due to EU sanctions related to Russia's war in Ukraine, establishing the gasoil contract as a highly liquid distillate benchmark. (read more)

Short News:

• 3M invests in electrolyzer developer
• BASF begins construction of plant for green hydrogen, fuel cell components in Germany
• LG Chem, ADM cancel bioplastics project in Illinois
• EU approves €122M Lithuanian state aid to fertilizer producer Achema for electrolyzer project
• Mitsubishi Gas Chemical establishes subsidiary in India
• Lotte Chemical to start up Indonesia cracker in 2025
• DOE issues $1.2B loan to ENTEK Lithium for EV battery separator facility
• AkzoNobel upgrades production line for marine, protective coatings in China
• INEOS commissions new pilot production line for recyclable flexible-packaging films
• Bp to acquire full ownership of bp Bunge Bioenergia JV

Final thoughts

I hope you enjoyed this SPECIAL edition, given the BP report for Energy Outlook 2024.

In summary, despite significant investments in renewable energy and electric vehicles, global carbon emissions have continued to rise. The war in Ukraine has underscored the importance of energy security, potentially spurring efforts to enhance energy efficiency. However, the growth in low-carbon energy sources has not matched the overall increase in global energy demand. Oil and gas investments remain substantial, hindering progress towards net zero emissions. Challenges persist particularly in hydrogen production and the adoption of newer low-carbon technologies.

And regarding news... as expected, companies keep working on hot topics such as energy transition, EV batteries, O&G, investment & acquisitions, etc.

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See you next month!

Is there anything in especial that you liked the most?

Just reply to this e-mail and let me know!

My best wishes!

Emmanuel Ortega

a.k.a. Chemical Engineering Guy

113 Cherry St, Seattle, WA 92768
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