SK Capital Acquires Milestone Environmental Services
23 views
SK Capital Partners (“SK Capital”), a New York-based private investment firm focused on the specialty materials, ingredients, and life sciences sectors, today announced that its affiliates have completed the acquisition of Milestone Environmental Services, LLC (“Milestone” or the “Company”), a leading environmental services and carbon management company, from Amberjack Capital Partners, L.P.
SK Capital has taken a controlling stake in Milestone in partnership with President and CEO Gabriel Rio, who will continue to serve in that role and retain significant ownership in the Company. Mr. Rio founded Milestone in 2014 and, alongside a strong management team and dedicated employee base, the Company has become the largest independent provider of waste management services and an emerging leader in permanent carbon sequestration services to the United States energy and industrial sectors.
Headquartered in Houston, Texas, Milestone operates a leading integrated network of waste management infrastructure that reduces its customers’ carbon impact by permanently sequestering hydrocarbon-containing energy waste, preventing greenhouse gas emissions and water and ground contamination. Since 2014, Milestone has sequestered more than 2 million tons of CO2e through its proprietary slurry injection process.
In addition to expanding its leadership in existing markets, Milestone has the strategy, capabilities, and operating track record to play a major role in the rapidly growing Carbon Capture and Sequestration (“CCS”) market, a critical component of addressing global climate change. Leveraging its core competencies in waste sequestration, complex permitting and regulatory compliance, subsurface rights leasing, and geology analysis, Milestone’s CCS subsidiary, Milestone Carbon, is focused on enabling a broad range of industrial CO2 emitters to meet their decarbonization goals by developing and operating injection sites that permanently and securely sequester CO2. Milestone Carbon has several CCS projects under development and recently announced significant progress in its Midland Basin project.
Jack Norris, a Managing Director of SK Capital, stated, “We are highly impressed with the market-leading, sustainability-driven business that Gabriel and the Milestone management team have built. It is well-positioned to further grow its core business in difficult-to-abate industries as environmental regulations become more stringent and Milestone’s customers are increasingly focused on meeting ambitious decarbonization targets. We are excited to partner with management to capture this growth opportunity as well as support its further progress towards becoming a leader in CCS and other related markets.”
Mr. Rio noted, “SK Capital’s industry and operating expertise and track record of successfully partnering with management teams to execute transformational strategies make it an ideal partner for Milestone at this phase of our journey. I am grateful to work with the premier management team in our industry, and we look forward to partnering with SK Capital to realize the shared vision we have for the Company.”
Mr. Rio added, “We founded Milestone to boldly advance sustainability in the energy industry and beyond. Our offerings enable companies to reduce their carbon footprint and enhance their ability to meet sustainability goals. Permanent, safe sequestration of carbon is an essential part of combating climate change, and Milestone has the strategy and capabilities to play a leading role in delivering solutions to multiple industries.”
Latham & Watkins LLP acted as legal counsel and Houlihan Lokey served as financial advisor to SK Capital. Committed debt financing was provided by Cerberus Business Finance, LLC. Goldman, Sachs & Company and White & Case acted as financial advisor and legal counsel, respectively, to Milestone.
About Milestone Environmental Services
Milestone Environmental Services, headquartered in Houston, Texas, is a leading environmental services and carbon management company and the largest independent energy waste sequestration company in the United States. Milestone operates a leading integrated network of waste infrastructure that reduces the carbon impact of its customers by permanently sequestering hydrocarbon waste over a mile below the surface, preventing greenhouse gas emissions and water and ground contamination. Since 2014, Milestone has sequestered more than 2 million tons of CO2e through its injection process. Its subsidiary, Milestone Carbon, is devoted to helping multiple types of emitters meet their decarbonization goals by developing and operating injection sites that permanently and securely sequester CO2 below the surface. For more information, please visit www.milestone-es.com.
About SK Capital Partners
SK Capital is a private investment firm with a disciplined focus on the specialty materials, ingredients, and life sciences sectors. The firm seeks to build resilient, sustainable, and growing businesses that create substantial long-term economic value. SK Capital aims to utilize its industry, operating, and investment experience to identify opportunities to transform businesses into higher performing organizations with improved strategic positioning, growth, and profitability, as well as lower operating risk. SK Capital’s portfolio of businesses generates revenues of approximately $17 billion annually, employs more than 25,000 people globally, and operates more than 200 plants in over 30 countries. The firm currently has approximately $7.9 billion in assets under management. For more information, please visit www.skcapitalpartners.com.
International Process Plants Acquires Warwick Chemical Mostyn, Wales Site from The Lubrizol Corporation
25 views
International Process Plants (IPP), a leading global provider of pre-owned and new process plants and equipment, is pleased to announce its acquisition of the idled Warwick Chemical Mostyn, Wales, UK site from The Lubrizol Corporation. This strategic move reinforces IPP’s commitment to helping global manufactures exit their redundant assets in a sustainable and innovative way to focus on their core business while leaving IPP’s expertise to redeploy the assets and create new opportunities for the local workforce and community.
The Warwick Chemical Mostyn site, which formerly produced stain removal ingredients for detergent products, features a robust infrastructure ideally suited for various chemical applications. IPP plans to sustainably redeploy these assets to its client facilities globally, making the site and its basic infrastructure available for redevelopment to support the local community needs.
Commenting on the acquisition, Ronald Gale, President of International Process Plants, stated, “We are thrilled to announce the acquisition of the Warwick Chemical Mostyn site from Lubrizol. The trust that Lubrizol has placed in IPP’s 45 years of experience in sustainably repurposing industrial manufacturing plants will allow the company to focus on their core business while IPP manages the orderly redevelopment of the site and redeployment of the manufacturing assets.”
For business inquiries, please contact: Ross Gale, Vice President International Process Plants rossg@ippe.com +1 609 589 0627
About International Process Plants (IPP): Since 1978, the IPP Group has grown to be a leading global facilitator of manufacturing growth and redevelopment opportunities in the pharmaceutical, specialty chemical, fine chemical, industrial chemical, petrochemical, fertilizer, power generation, and polymer industries. IPP enables sustainable industrial growth by deploying pre-existing complete plants, process systems, and process equipment that are immediately available, at a fraction of the cost and delivery time of brand-new assets. It boasts a global portfolio of 17 complete industrial sites for redevelopment, over 110 complete plants and over 15,000 major pieces of equipment and systems. To learn more about IPP, visit www.ippe.com
ACQUISITION EXPANDS KENSING’S NATURAL VITAMIN E AND PHYTOSTEROLS PRODUCT OFFERINGS
26 views
Kankakee, IL – October 4, 2023 – Kensing, LLC (“Kensing” or the “Company”), a leading manufacturer of natural vitamin E, plant sterols and high-purity surfactants, and a portfolio company owned by an affiliate of One Rock Capital Partners, LLC (“One Rock”), today announced the acquisition of Advanced Organic Materials (“AOM”), a pioneering producer of non-GMO plant-based vitamin E and phytosterols derived from sunflower and rapeseed.
“The acquisition of AOM enhances our range of non-GMO plant-based ingredients, strengthens our access to new sources of diversified natural raw materials and opens up new end markets,” stated Serge Rogasik, CEO of Kensing. “We look forward to partnering with Alex [AOM’s CEO] and his team to meet the growing demand for natural products from our five plants across the U.S., Europe, and Latin America.”
AOM, which operates state-of-the-art facilities in Valencia, Spain, and Buenos Aires, Argentina, is a globally recognized leader in the production of plant-based, non-GMO products including vitamin E, mixed tocopherols, and phytosterols. Serving customers in more than 34 countries, AOM excels in delivering clean-label alternatives that are well aligned with preferences of brands and consumers across the nutrition, personal care, food, and beverage sectors.
“We are thrilled to join forces with an industry leader and embark on this new chapter as part of Kensing. This acquisition marks an exciting opportunity for us to leverage our combined capabilities to enhance performance and expand geographic presence. Together, we can deliver unparalleled value to customers, consumers, and stakeholders, and I look forward to the journey ahead,” stated Alex Abad, CEO of AOM.
About Kensing: Established in 2021, Kensing, LLC is a leading manufacturer of a broad range of specialty chemicals derived from vegetable oils including plant sterols, natural vitamin E, anionic surfactants and esters. Headquartered in Kankakee, IL, Kensing’s high-quality, precisely formulated ingredients serve a diverse array of customers across the home and personal care, pharmaceuticals, nutrition and agricultural markets. Kensing is uniquely focused on providing customers with a superior level of service, agility and expert collaboration to help them develop improved products. Kensing is recognized for its Ecovadis Gold rating. To learn more, please visit www.kensingsolutions.com.
About AOM: Established in 2003, Advanced Organic Materials (“AOM”) is a leading producer of natural vitamin E, mixed tocopherols, and phytosterols. The company’s product portfolio includes non-GMO sunflower and traceable soy. Serving over 15 countries globally with products for the food, feed, supplement, and personal care industries. AOM’s strength lies in the diversity of its products, suppliers, and end markets, backed by attractive sourcing capabilities and robust customer relationships. AOM is recognized for its Ecovadis Bronze certification.
About One Rock: One Rock makes controlling investments in companies with potential for growth and operational improvement using a rigorous approach that utilizes highly experienced Operating Partners to identify, acquire and enhance businesses in select industries. The involvement of these Operating Partners affords One Rock the ability to conduct due diligence and consummate acquisitions and investments in all types of situations, regardless of complexity. One Rock works collaboratively with company management and its Operating Partners to develop a comprehensive business plan focused on growing the enterprise and its profitability to enhance long-term value. For more information, visit www.onerockcapital.com.
INTER PIPELINE ANNOUNCES PAUL HAWKSWORTH AS PRESIDENT & CEO; DOUG WRIGHT, CFO
24 views
CALGARY, AB, Sept. 28, 2023 /CNW/ – Inter Pipeline (“IPL”) today announced the appointment of Mr. Paul Hawksworth as President and Chief Executive Officer (“CEO”), effective November 1, 2023.
Mr. Paul Hawksworth, IPL’s Chief Financial Officer (“CFO”), will succeed current President and CEO and Brookfield Infrastructure Operating Partner, Mr. Brian Baker. Mr. Baker will remain engaged with IPL as Board Chair while IPL’s current Chair, Ms. Deborah Close will continue to serve as an independent board member. IPL would like to thank Ms. Close for her contributions since joining the Board in 2021.
“Over the past two years, Paul has played an instrumental role in Inter Pipeline’s transformation following its acquisition by Brookfield Infrastructure,” said Mr. Baker. “He is a proven leader with the necessary experience and knowledge to ensure Inter Pipeline continues to execute its strategic vision”.
Mr. Hawksworth will assume accountability for the strategic planning and operational performance of IPL’s transportation, facilities, and marketing business units while the Heartland Polymers business will remain under the direction of Mr. Todd Karran, CEO Heartland.
Mr. Doug Wright will assume the role of IPL’s Chief Financial Officer. Mr. Wright is joining IPL from Brookfield Infrastructure where he was a Vice President. In his time with Brookfield, he played an integral part in the infrastructure operations team where he has focused on financial oversight of Brookfield’s midstream portfolio including strategic planning, budgeting and capital markets activities and capital allocation decisions. Since Brookfield’s acquisition of IPL, Mr. Wright has worked closely with many members of the IPL team and brings a strong familiarity with its business to the role.
Mr. Wright will be accountable for the execution of key financial strategies and provide leadership and direction in the areas of financial reporting and compliance, corporate finance, tax, treasury, investor relations, enterprise risk management, strategic sourcing, corporate planning & development, and information technology.
Paul Hawksworth Biography Mr. Hawksworth joined Inter Pipeline in October 2021 from Brookfield Infrastructure where he was a Senior Vice President responsible for evaluating investment opportunities across the midstream sector. Prior to joining Brookfield in 2013, he held mergers and acquisitions advisory roles with leading investment banks and accounting firms focused on upstream joint ventures, midstream acquisitions and downstream refining and marketing assets. He is a Chartered Professional Accountant, a Chartered Business Valuator and holds a Bachelor of Commerce from the University of British Columbia.
Doug Wright Biography Mr. Wright has held several roles in Brookfield Infrastructure’s finance team and has been actively involved in a number of key transactions. Prior to joining Brookfield in 2016, he was in the assurance and advisory group at Collins Barrow Chartered Accountants. Mr. Wright holds a Bachelor of Commerce from Dalhousie University and is a Chartered Professional Accountant.
About Inter Pipeline Inter Pipeline is a major petroleum transportation and natural gas liquids processing business based in Calgary, Alberta, Canada. Inter Pipeline owns and operates energy infrastructure assets in Western Canada including the Heartland Petrochemical Complex.
Air Water America Expands its Helium Gas Business in the United States with the Acquisition of AGP LLC (DBA) American Gas Products
21 views
Air Water America Inc. acquires American Gas Products Inc., enhancing its helium and industrial gas offerings in the U.S. AGP, a major helium supplier, joins Air Water’s growth strategy. The move aligns with Air Water America’s expansion into industrial gases, diversifying its product portfolio. Air Water, Inc., the parent company, has a strong global presence in industrial gases and related services.
BEDMINSTER, N.J. , Oct. 1, 2023 /PRNewswire-PRWeb/ — Air Water America Inc., a subsidiary of Air Water Inc., announced today that it has acquired American Gas Products Inc. (AGP), a prominent helium and industrial gas supplier in Massachusetts operating throughout the United States.
Formed in 2002, AGP has grown its national network with a strong market presence in retail and wholesale helium. The company is headquartered in Massachusetts where it also operates a local, full service industrial and specialty gas supply facility and retail store. AGP has established helium well sources and filling stations at 7 nationwide locations with a sales network in 28 states.
“We are excited to become part of Air Water America, Inc. and continue our history of excellence and value in the industrial gas business. Our customers can be certain they will continue to receive the same level of quality and service they have come to expect from AGP, while also benefiting from Air Water’s resources and expertise,” said Michael D’Auria, former CEO, and owner of AGP. “The acquisition of American Gas Products by Air Water America will contribute innovation, talent, and technology to our business resulting in new and exciting growth. Air Water’s expertise will pave the way for continued expansion and profitability in not only our helium division, but also establish AGP as a leader in industrial and specialty gases for the New England market.,” said Matt D’Auria, CEO of AGP.
North America is one of the key growth areas for Air Water Inc. globally. In the past 5 years, Air Water America has made significant investments in the industrial gas equipment and engineering segments acquiring Taylor-Wharton®, TOMCO2 Systems®, Cryogenic Vessels Alternative (CVA), majority ownership in Dohmeyer Cryogenics, AMCS, CO2 Air’s dry ice products, M1 Engineering, an equity investment in First Element Fuels, and an organic investment in phasetwo®’s life science product portfolio. Air Water America complimented their equipment division with follow up acquisitions in two leading local industrial gas distributors, Noble Gas Solutions in 2022 and Phoenix Welding Supply in 2023. In August 2023, Air Water America announced an air separation plant investment in Rochester, NY. “As part of our strategic expansion plans, we are diversifying our gas offerings with AGP beyond atmospheric gases (oxygen, nitrogen, argon) to enhance our capabilities as a comprehensive industrial gas supplier” said Air Water America President and CEO, Hiroyuki Minesaka. “We’re excited to welcome the American Gas Products team to the Air Water Group and look forward to working together to expand Air Water’s helium footprint.”
About Air Water Group
Air Water America, Inc. is a wholly owned subsidiary of Air Water, Inc. (“Air Water Japan”). Established in 1929, Air Water Japan has continued to grow in the manufacturing and supply of industrial gases and related services for over 90 years. Air Water Japan has developed its own engineering capability to design, manufacture and operate air separation units and non-cryogenic air separation plants. Air Water Japan has successfully managed industrial gas businesses and expanded product supply and service capability throughout Japan, becoming a leader in the market. In the past few years, Air Water Japan also increased its presence in the U.S., India, and Asian markets.
Since its incorporation, Air Water Japan, and its group entities (“Air Water Group”) have expanded its businesses and provided consistent growth in revenues. Air Water Japan lists its common stock on the Tokyo Stock Exchange and Sapporo Stock Exchange. Air Water Group employs more than 20,000 people around the world and has annual net sales of approximately JPY 1,005 billion (equivalent to USD 7.2 billion) on a consolidated basis for the fiscal year ending March 31, 2023.
RPM Acquires Leading Panelized Wall Systems Fabrication Business
26 views
RPM International Inc. (NYSE: RPM) announced today that the wall system fabrication segment (the Fabrication Business) of NOW Specialties, LLC (NOW) has been acquired by RPM’s Tremco CPG Inc. and is now part of Tremco Construction Products Group (Tremco CPG). The Texas-based Fabrication Business is a leading wall system fabricator specializing in Metal Composite Material and Aluminum Composite Material panels and has annual net sales of approximately $20 million. Terms of the transaction were not disclosed, and NOW’s installation business was not part of the acquisition.
The wall systems are manufactured offsite, and then installed at the building location, which offers customers improved efficiency, quality and construction times when compared to traditional methods. Additionally, the acquired wall systems are compatible with Tremco CPG’s building envelope systems and expand Tremco CPG’s offerings for those who want a metal panel facade.
“Panelized facade systems and other forms of offsite panelized construction are a rapidly growing segment within the construction industry and a key strategic focus for Tremco CPG,” stated Frank C. Sullivan, RPM chairman and CEO. “This acquisition will strengthen Tremco CPG’s value proposition of providing customers with compatible building envelope solutions that improve efficiency, extend building life and provide customized aesthetics.”
About RPM RPM International Inc. owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services. The company operates across four reportable segments: consumer, construction products, performance coatings and specialty products. RPM has a diverse portfolio of market-leading brands, including Rust-Oleum, DAP, Zinsser, Varathane, Day-Glo, Legend Brands, Stonhard, Carboline, Tremco and Dryvit. From homes and workplaces, to infrastructure and precious landmarks, RPM’s brands are trusted by consumers and professionals alike to help build a better world. The company employs approximately 17,300 individuals worldwide. Visit www.RPMinc.com to learn more.
For more information, contact Matt Schlarb, Senior Director of Investor Relations, at 330-273-5090 or mschlarb@rpminc.com.
Forward-Looking Statements This press release contains “forward-looking statements” relating to our business. These forward-looking statements, or other statements made by us, are made based on our expectations and beliefs concerning future events impacting us and are subject to uncertainties and factors (including those specified below), which are difficult to predict and, in many instances, are beyond our control. As a result, our actual results could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) global markets and general economic conditions, including uncertainties surrounding the volatility in financial markets, the availability of capital and the effect of changes in interest rates, and the viability of banks and other financial institutions; (b) the prices, supply and availability of raw materials, including assorted pigments, resins, solvents, and other natural gas- and oil-based materials; packaging, including plastic and metal containers; and transportation services, including fuel surcharges; (c) continued growth in demand for our products; (d) legal, environmental and litigation risks inherent in our businesses and risks related to the adequacy of our insurance coverage for such matters; (e) the effect of changes in interest rates; (f) the effect of fluctuations in currency exchange rates upon our foreign operations; (g) the effect of non-currency risks of investing in and conducting operations in foreign countries, including those relating to domestic and international political, social, economic and regulatory factors; (h) risks and uncertainties associated with our ongoing acquisition and divestiture activities; (i) the timing of and the realization of anticipated cost savings from restructuring initiatives and the ability to identify additional cost savings opportunities; (j) risks related to the adequacy of our contingent liability reserves; (k) risks relating to a public health crisis similar to the Covid pandemic; (l) risks related to acts of war similar to the Russian invasion of Ukraine; (m) risks related to the transition or physical impacts of climate change and other natural disasters or meeting sustainability-related voluntary goals or regulatory requirements; (n) risks related to our use of technology, artificial intelligence, data breaches and data privacy violations; and (o) other risks detailed in our filings with the Securities and Exchange Commission, including the risk factors set forth in our Form 10-K for the year ended May 31, 2023, as the same may be updated from time to time. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the filing date of this release.
Palmdale Oil to Acquire Como Oil & Propane of Florida
27 views
FORT PIERCE, Fla., Oct. 2, 2023 /PRNewswire/ — Palmdale Oil (“Palmdale“), a leading provider of fuels, lubricants, and chemicals with delivery solutions across the state of Florida, today announced it has acquired Como Oil & Propane of Florida (“Como” or the “Company”), a Florida-based, full-service fuel and propane distributor. Financial terms of the transaction were not disclosed.
The transaction enables Palmdale to strategically expand upon its offerings across fuels, lubricants, and chemicals to include Como’s market-leading propane capabilities. Founded in 1967 by Myles Hall, Como Oil & Propane of Florida has thoughtfully grown from a single facility business into a leading, family-operated provider of fuels and propane across Southeastern Florida. Como currently operates five facilities across the eastern Florida coast and provides customers with a range of best-in-class offerings, including propane and fuel distribution services and generator sales, service, maintenance and installation.
Michael Bodine and Como’s Florida-based team will continue to lead the Como Propane Division under Palmdale.
“This partnership with Palmdale marks an exciting milestone for Como and is a testament to the strength of the business we’ve built together across southeastern Florida,” said Bob Hall, Chief Executive Officer, and Ryan Gunderson, President, at Superior Fuel Company, Como’s parent company. “Palmdale is a Florida-based, family-founded and operated business with a 40-year track record that shares Como’s values and culture, and we’re confident that the Cheatham family and the Palmdale team are the ideal partner for Como.”
“Como has built an impressive business and a reputation as a go-to provider for propane, generators and ancillary services in Southeastern Florida. Bringing together our shared offerings will greatly benefit new and existing customers of both organizations,” said Lachlan Cheatham, Chief Executive Officer of Palmdale. “This partnership combines two family-oriented businesses with a shared mission to provide trusted services and solutions for customers across Florida. The addition of Como’s propane business expands Palmdale’s broad service offering and strengthens our platform as the leading, fully integrated provider of fuels and lubricants in Florida.”
Citizens M&A Advisory acted as exclusive financial advisor to Palmdale and Citizens provided debt financing to support the transaction. Legacy Energy Consulting facilitated the sale of Como Oil & Propane of Florida.
About Palmdale Oil Palmdale is a leading statewide provider of fuels, lubricants, and chemicals with delivery and management solutions. Headquartered in Fort Pierce, Florida, Palmdale is a family-owned business operating in more than 50 counties across Florida.
About Como Oil & Propane of Florida Como Oil & Propane of Florida is a leading provider of fuels and propane across Southeastern Florida. Como currently operates five facilities across the eastern Florida coast, including in Palm Bay, Vero Beach, Stuart, Palm City and West Palm Beach, where they provide customers with propane and fuel distribution services and generator sales, service, maintenance and installation.
Lanxess names Frederique van Baarle as President & CEO of Americas
24 views
She replaces Antonis Papadourakis, who has retired after serving in the role since 2015.
Lanxess AG has appointed Frederique van Baarle as President and CEO of its Americas business unit Lanxess Corp., which is headquartered in Pittsburgh.
She replaces Antonis Papadourakis, who has retired after serving in the role since 2015.
“It has been an honour to have been a part of the world-class team at Lanxess and having the opportunity to work alongside so many amazing colleagues,” Papadourakis said.
“I’m very excited for the opportunity to lead the team here in the Americas, which is becoming an increasingly important region for our industry and for Lanxess,” van Baarle said.
In 2011, Baarle joined Lanxess and took over the management position Global Marketing and Supply Chain for EPDM rubber in the then business unit High Performance Elastomers (now ARLANXEO).
From 2013 to the end of 2018, she headed the Engineering Plastics business line for the EMEA region within the High Performance Materials business unit. In addition, she completed an executive training at the French business school INSEAD.
After being responsible for the Global Procurement and Logistics Group Function from December 2018 to May 2020, Frederique van Baarle took over as Head of the High Performance Materials business unit in June 2020.
Lanxess spun off this business unit from the Group on 1 April and placed it in a joint venture with the private equity firm Advent. On the same date, Frederique van Baarle took up her position as a member of the Board of Management and Labour Director of Lanxess AG. Her contract runs until 31 March 2026.
SADARA CHEMICAL COMPANY APPOINTS NEW CHIEF EXECUTIVE OFFICER
24 views
Fayez Al Sharef was appointed as the company’s new CEO effective 1 September 2023
Sadara Chemical Company, a GPCA full member, has appointed Fayez Al Sharef as the company’s new Chief Executive Officer effective 1 September 2023.
Al Sharef succeeds Faisal M. Al-Faqeer who served in the role from 2017-2023.
Al Sharef brings extensive industry experience in the oil and gas and petrochemical sectors, having begun his career at SABIC in 1997 before taking up leadership roles at Saudi Aramco and ARLANXEO, a wholly owned subsidiary of Saudi Aramco.
Prior to joining Sadara, Al Sharef served for nearly five years as the Director of one of Saudi Aramco’s Giga Projects, the Amiral Project.
Al Sharef began his career with Saudi Aramco in 2002 after his tenure at SABIC as Operations Group Leader for one of SABIC’s affiliates. At Saudi Aramco, he worked in various leadership roles in the areas of operations and business development, including leading the commercial team who shaped the formation of Sadara.
He is a Board Member for ARLANXEO and was a Board Member for Sadara from 2020.
Al Sharef holds a Bachelor of Science degree in Chemical Engineering from King Fahd University of Petroleum and Minerals and is a graduate of the Harvard and Stanford Executive Program in General Management.
SOLENIS ACQUIRES CEDARCHEM, ENHANCING WATER AND WASTEWATER TREATMENT CAPABILITIES IN SOUTHEASTERN U.S.
21 views
WILMINGTON, Del. (USA) — Solenis, a leading global producer of specialty chemicals for water-intensive industries, completed the acquisition of CedarChem
LLC on October 2, 2023. As part of the acquisition, Solenis will acquire all CedarChem operating assets.
Headquartered in Cedartown, Georgia, CedarChem offers a full suite of water and wastewater treatment products for industrial and municipal markets, primarily in the southeastern U.S.
The acquisition aligns with Solenis’ direct go-to-market strategy to provide customers with improved chemical and wastewater treatment product and service offerings.
“CedarChem has a reputation for being one of the most reliable and customer-intimate suppliers of quality products and services in their market,” said Mark Wescott, vice president of the municipal/multi business at Solenis. “We are pleased to combine their talented team of professionals with the Solenis team. Together, we will continue to provide enhanced value for our customers.”
About Solenis
Solenis is a leading global producer of specialty chemicals focused on delivering sustainable solutions for water-intensive industries, including consumer, industrial, institutional, food and beverage, and pool and spa water markets. Owned by Platinum Equity, the company’s product portfolio includes a broad array of water treatment chemistries, process aids, functional additives, and cleaners and disinfectants, as well as state-of-the-art monitoring and control systems. These technologies are used by customers to improve operational efficiencies, enhance product quality, protect plant assets, minimize environmental impact, and create cleaner and safer environments. Headquartered in Wilmington, Delaware, the company has 71 manufacturing facilities strategically located around the globe and employs a team of over 15,400 professionals in 130 countries across six continents. Solenis is a 2023 US Best Managed Company.
ALTANA AG has acquired a majority stake in Von Roll Holding AG
29 views
ELANTAS GmbH (“ELANTAS”), a subsidiary of the specialty chemicals group ALTANA AG, has finalized the purchase agreement initially signed on August 11, 2023, to acquire a majority stake in Von Roll Holding AG (SIX: ROL, “Von Roll”).
Breitenbach/Wesel, September 29th, 2023
ELANTAS GmbH (“ELANTAS”), a subsidiary of the specialty chemicals group ALTANA AG, has finalized the purchase agreement initially signed on August 11, 2023, to acquire a majority stake in Von Roll Holding AG (SIX: ROL, “Von Roll”). All competition law clearances and other approvals required for the execution of the purchase agreement, as well as the public tender offer, have been granted.
ELANTAS entered into a share purchase agreement with the von Finck family, through which it is acquiring an 80.9% shareholding. In addition, ELANTAS has procured 4.1% of Von Roll’s shares on the market since the preannouncement’s publication. In total, ELANTAS GmbH now holds 85.0% of Von Roll’s shares. Taking into account the tender agreements concluded with Von Roll’s management and the own shares Von Roll holds, the total shareholding will amount to 88.7%.
The appointment of ELANTAS GmbH’s nominated members to the Von Roll Board of Directors, as resolved during the Extraordinary General Meeting held on September 13, 2023, has now taken effect. As of immediately, the new members joining the Board are Ravindra Kumar (Chairman), Antonio Nastasi, Holger Wiebelhaus, and Jan Bir, in addition to the incumbent member and CEO, Dr. Christian Hennerkes. Simultaneously, Dr. Kalantzis, Mr. Bruckmeier, and Mr. von Finck left from their roles on the Von Roll Board of Directors today.
The voluntary public tender offer for all publicly held bearer shares of Von Roll Holding AG remains open for acceptance. The conditions regarding b) “Clearances under competition law and other authorizations” and d) “Resignation/election of members of the Board of Directors” of the public tender offer are deemed to have been fulfilled. The tender offer is also subject to other customary offer conditions, which are set out in the offer prospectus of September 8, 2023, under B 7. The offer period commenced on September 25, 2023, and is scheduled to conclude on October 27, 2023, at 4:00 p.m., CEST. It is anticipated that the offer will be finalized in November 2023. A detailed indicative timetable is included in the offer prospectus.
About Von Roll Holding AG
Founded in 1823, Von Roll is one of the most traditional companies in Switzerland. In the course of the company’s history, Von Roll had to adapt several times to changing market environments and has evolved from Switzerland’s largest steel and iron works into a high-tech industrial company that is driving the energy revolution.
Today, Von Roll is the global market leader for electrical insulation systems that are used for the largest wind turbines. It develops high-performance materials for the next generation of batteries in the field of e-mobility and produces extremely durable lightweight components for the aircraft industry. With 14 locations worldwide and around 1.000 employees, the group serves customers in more than 80 countries.
About ALTANA
ALTANA is a global leader in true specialty chemicals. The Group offers innovative, environmentally compatible solutions for coating manufacturers, paint and plastics processors, the printing and packaging industries, the cosmetics sector and the electrical and electronics industry. The product range includes additives, special coatings and adhesives, effect pigments, sealants and compounds, impregnating resins and varnishes, and testing and measuring instruments. ALTANA’s four divisions, BYK Additives & Instruments, ECKART Effect Pigments, ELANTAS Electrical Insulation, and ACTEGA Coatings & Sealants, all occupy a leading position in their target markets with respect to quality, product solution expertise, innovation, and service.
Headquartered in Wesel, Germany, the ALTANA Group has 48 production sites and 63 service and research laboratories worldwide. Throughout the Group more around 7,000 people work to ensure the worldwide success of ALTANA. In 2022, ALTANA achieved sales of more than 3 billion euros. Around 7 percent of sales are invested in research and development every year. Its high earning power and high growth rate make ALTANA one of the most innovative, fastest growing, and profitable chemical companies in the world.
www.altana.com
About ELANTAS
ELANTAS, a company of ALTANA AG, produces protective materials and liquid insulating materials for the electrical and electronics industry. The products are used, for example, in electric motors, household appliances, cars, generators, wind turbines, transformers, capacitors, lights, and sensors. They help product developers build ever smaller and more powerful electrical and electronic devices, thus saving material and energy. At the same time, the products help to extend the life cycle of electrical and electronic components. ELANTAS is represented by twelve manufacturing companies in all the world’s major regions. In 2022, the company employed 1,083 people.
Big Pharma and Sustainability: Tracking Companies’ Goals
25 views
Pharma companies launch sustainability initiatives for internal operations and their supply chains to help achieve international climate-change goals.
By Patricia Van Arnum, DCAT’s Editorial Director, and Miranda Greenberg, DCAT’s Editorial Coordinator
Global action in motion International initiatives, such as the Paris Agreement, a global treaty on climate change, and the recent United Nations Climate Change Conference, held in Glasgow, Scotland, in November 2021, have served as an impetus for stakeholders, including companies, to accelerate their sustainability targets. More than 195 countries have signed the Paris Agreement, which set a goal to limit global warming to 1.5°C, compared to pre-industrial levels. To achieve this, the overall goal is to cut greenhouse emissions globally by half before 2030 and to reach net-zero emissions by 2050. “Net-zero” emissions refer to a state in which the greenhouse gases going into the atmosphere are balanced by their removal out of the atmosphere. This goal takes collective action by governments and businesses, and the bio/pharmaceutical industry is part of that effort.
The large bio/pharma companies and their suppliers are part of that effort. Tables I–IV outline the key sustainability targets set by the large bio/pharma companies. Their goals reflect targets to reduce direct greenhouse gas emissions in their own operations (Scope 1 emissions) and indirect greenhouse gas emissions (Scope 2 emissions) that occur from sources that are controlled or owned by an organization (e.g., emissions associated with fuel combustion in boilers, furnaces, and vehicles). Another part of that effort is to reduce so-called “value-chain emissions” (Scope 3). Scope 3 emissions are the result of activities from assets not owned or controlled by the reporting organization, but impacts its value chain, such as those emissions from logistics/transportation of product flows and emissions from suppliers.
Many of the large bio/pharma companies have accelerated their environmental targets to contribute to the long-term international targets to achieve net-zero emissions globally. Highlights from the top 20 bio/pharmaceutical companies are outlined below and in Tables I-IV.
Reduce absolute carbon emissions 25% by 2025 and achieve 100% zero waste to landfill by 2035.
Amgen
By 2027, achieve 100% carbon neutrality (Scope 1 [direct emissions] & Scope 2 (indirect emissions), a 40% additional reduction in water consumption, and a 75% additional reduction in waste disposed.
Astellas Pharma
By fiscal year (FY) 2030, Reduce greenhouse gas (GHG) emissions (Scope 1 [direct] and Scope 2 [indirect]) by 30% from FY 2015 baseline. By FY 2030, reduce Scope 3 emissions (value-chain emissions) by 20% from 2015 baseline.
AstraZeneca
Eliminate carbon emissions from its global operations by 2025 and to ensure its entire value chain is carbon negative by 2030. By 2025, to achieve zero carbon, convert 100% of its energy consumption to renewable sources for both power and heat, and have a 100% electric vehicle fleet. By 2030, engage suppliers to reduce their direct emissions and identify carbon removal options with the goal of becoming carbon negative across its entire value chain.
Bayer*
Achieve climate neutrality by 2030 (Scopes 1 [direct] and 2 [indirect] and net zero emission across its entire value chain (Scopes 1, 2 and 3) by 2050. This involves by 2030 to reduce CO2 emissions from its own business operations by 42% (base year 2019) in absolute terms and Scope 3 (value chain emissions) by 12.3% in absolute terms as well as to source 100% of procured electricity from renewable energies by 2030.
Note: Bayer’s sustainability targets and performance from across all businesses: pharmaceuticals, crop protection, and consumer healthcare. Source: Company information
Highlights from AstraZeneca, Amgen, Bayer AstraZeneca. AstraZeneca has dubbed its strategy for achieving net-zero emissions as “Ambition Zero Carbon.” In January 2020, AstraZeneca provided details of that strategy, which involves plans to invest $1 billion to achieve zero-carbon emissions from its global operations by 2025 and to ensure that its entire value chain is carbon-negative by 2030.
In order to achieve zero carbon by 2025, AstraZeneca plans to reduce total energy consumption by 10%, double energy productivity (based on a 2015 baseline), convert 100% of its energy consumption to renewable sources for both power and heat, and have a 100% electric fleet. In addition, the company has pledged to engage its suppliers to reduce their direct emissions through 2030 and identify carbon removal options that will lead to more carbon dioxide removed from the atmosphere than added to it. This will result in AstraZeneca becoming carbon negative across its entire value chain by 2030. To achieve that, the company aims to reduce selected Scope 3 emissions (i.e., value chain emissions) by 20% from 2015 to 2025.
In addition, the company has set a goal by 2025 to develop near-zero Global Warming Potential (GWP) propellants for pressurized metered-dose inhalers used in its respiratory products. AstraZeneca expects the propellant used in the next generation inhalers to have a GWP that is 90-99% lower than propellants used in older products.
The company is also involved in a reforestation plan as trees naturally remove carbon dioxide and can mitigate the effects of climate change. The company is partnering with reforestation organizations and governments in a number of countries to plant 50 million trees over the next several years; the first programs started in 2020.
Amgen. The “Road to Net Zero,” Amgen’s set of environmental sustainability targets, focus on achieving carbon neutrality from its operations, further reducing water use by 40%, and reducing waste disposal by 75% by 2027. Amgen’s 2027 environmental sustainability targets are designed to track the plan’s progress using a baseline taken from performance in 2019. This was because impacts from COVID-19 resulted in atypical results in 2020. Amgen’s approach to achieving carbon neutrality has a primary focus on innovative and efficient technologies to reduce and eliminate carbon emissions from Amgen-owned operations and procurement of renewable energy. For operations in which carbon emissions cannot be eliminated, Amgen supports additional environmental and sustainability projects that sequester or avoid greenhouse gas emissions. Additionally, Amgen’s plan includes engaging with its partners to assist with and encourage carbon reductions throughout its value chain.
Bayer. Bayer has set a goal of achieving net-zero emissions in its entire value chain (Scopes 1, 2, and 3) by 2050 and to be climate neutral (Scopes 1 and 2) by 2030. To achieve this, it has set a goal of reducing CO2 emissions from its own business operations by 42% (base year 2019) in absolute terms and Scope 3 (value chain emissions) by 12.3% in absolute terms as well as source 100% of procured electricity from renewable energies by 2030. These targets apply to all of Bayer’s businesses: pharmaceuticals, crop protection, and consumer healthcare.
In 2020, the company undertook a Scope 3 (value chain emissions) analysis to identify relevant reduction potentials. Possible implementation measures include giving suppliers incentives to use electricity from renewable energies, further optimizing logistics, and reducing packaging. Bayer is a member of the Together for Sustainability industry initiative, which provides a framework for assessing and auditing sustainability performance of supply chains for chemical companies and their suppliers through a shared infrastructure. Bayer heads up a working group on emissions reduction in the supply chain under that initiative.
Last month (December 2020), Bayer announced it is investing EUR 100 million ($113 million) for sustainable packaging in its Consumer Health Division to reach a target that 100% of Bayer Consumer Health’s packaging will be recyclable or reusable by 2030 and all packaging will include consumer-friendly recycling information. Within the same timing, the division’s packaging will include an average of 50% recycled content, and 100% of purchased paper will be sustainably sourced. Progress to-date includes: having shipping boxes include 80% recycled content by the end of 2021; started conversion of paper packaging across global brands to use certified paper from responsibly managed forests; implemented programs to transition to digital marketing and reduce the footprint of the division’s printed promotional materials; and assess 100% of new product development projects for sustainability performance across health, the environment, and product access.
By 2032, reduce absolute Scope 1 (direct) and Scope 2 (indirect) greenhouse gas (GHG) emissions 55% from a 2019 base year. By 2040, reduce GHG emissions by 100% from a 2019 base year.
Boehringer Ingelheim
By 2030, become carbon neutral in company operations: Scope 1 (direct) emissions and Scope 2 (indirect) emissions. Further reduce its overall water footprint, operational waste to landfill and resource use. Apply eco-design and green-chemistry concepts to all new products.
Bristol-Myers Squibb
Be carbon neutral in its Scope 1 (direct) and Scope 2 (indirect) emissions and reach targets of equitable water use, zero waste to landfill, and 100% electric vehicles in its fleet by 2040. These goals include 10% reduction in energy-use intensity and greenhouse gas emissions intensity, 25% reduction in waste to landfill, and 5% reduction in water intensity. Purchase 100% of the electricity it uses from renewable sources by 2030.
Eli Lilly and Company
By 2030, be carbon neutral in in its own operations: Scope 1 (direct) and Scope 2 (indirect) emissions. Secure 100% of purchased electricity from renewable sources and enhance tracking and reporting of emissions from its full value-chain.
Gilead Sciences
By 2025, reduce greenhouse gas emissions across Scope 1 (direct) emissions and Scope 2 (indirect) emissions by 25%, compared with its 2016 baseline.
Source: Company information
Highlights from Biogen, Bristol-Myer Squibb, Lilly Biogen. In 2014, Biogen became carbon neutral by matching 100% of its electricity with renewable electricity (via unbundled renewable energy credits) and retiring carbon offsets (from certified landfill gas to energy projects) against the remainder of its Scope 1, 2 and 3 emissions. Following new guidance that avoided emission carbon offsets (i.e., offsets that still involve emitting activity as compared to
a negative emitting activity, which are referred to as “negative emission carbon offsets/credits”), which are not consistent with the Paris Agreement, Biogen re-evaluated its carbon neutral strategy and moved away from carbon offsets in 2019. While its long-term objective is to become fossil-fuel free, it says it may use both avoided emission and negative emission carbon offsets/credits in the short term as part of its overall climate strategy. It The company has set a goal of reducing absolute Scope 1 (direct) and Scope 2 (indirect) greenhouse gas emissions 55% by 2032 and 100% by 2040 from a 2019 base year. This new target is deemed consistent with reductions required to keep warming to 1.5°C, as outlined in the Paris Agreement.
As with other companies, green chemistry plays a role in Biogen’s sustainability strategy. In 2020, the company established formal green processes and standardized metrics across all modalities and for every drug it develops. The company’s small-molecule group began that process in late 2020 with other modality groups to follow in 2021.
Bristol-Myers Squibb. Last month (December 2020), Bristol-Myers Squibb updated its sustainability strategy on a global basis by setting new 2030 and 2040 goals. By 2030, the company will purchase 100% of the electricity it uses from renewable sources, and by 2040, it will be carbon neutral in its Scope 1 (direct) and Scope 2 (indirect) emissions and reach the targets of equitable water use, zero waste to landfill, and 100% electric vehicles in its fleet.
Eli Lilly and Company. Eli Lilly and Company has set several key sustainability targets for 2030: achieve carbon neutrality in in its own operations—Scope 1 (direct) and Scope 2 (indirect) emissions; secure 100% of purchased electricity from renewable sources; and enhance tracking and reporting of emissions from its full value chain. Although the company currently does not have specific reduction targets for Scope 3 greenhouse gas emissions (value-chain emissions), it is expanding the transparency and quality of related data and disclosures to identify opportunities to reduce its overall footprint as reflected in its 2030 goals.
Reach net zero carbon by 2030 through several targets. By 2030, achieve net zero Scope 1 (direct) and Scope 2 (indirect) emissions across all its Biopharma and Consumer Healthcare* operations. By 2030, achieve net zero emissions across its entire value chain for its Biopharma business and select consumer healthcare brands/formats. By 2025, use 100% renewable electricity for Biopharma business and Consumer Healthcare* businesses.
Johnson & Johnson*
By 2045, achieve net zero carbon emissions across its value chain. By 2030, achieve carbon neutrality for its operations by reducing absolute Scope 1 (direct) and Scope 2 emissions (indirect) 60% from 2016 levels. By 2030, reduce absolute upstream value chain (Scope 3) emissions 20% from 2016 levels to deliver nearly 2.5 times the carbon footprint reduction compared to that of its own operations. By 2025, source 100% of electricity needs from renewable sources.
Merck & Co.
By 2025, achieve carbon neutrality across its operations. By 2030, reduce Scope 1 (direct) and Scope 2 (indirect) emissions 46% and Scope 3 (value-chain) emissions 30% by 2030.
Novartis
Achieve net zero emissions by 2040. By 2025, become carbon neutral in its operations: Scope 1 (direct) and Scope 2 (indirect) emissions. Be carbon neutral across its entire value chain (Scopes 1, 2 and 3) by 2030 and be plastic- and water-neutral by 2030.
Pfizer
By 2030, be carbon neutral across internal operations, including reducing Scope 1 (direct) and Scope 2 (indirect) emissions by 46% from a 2019 baseline and influence reductions in its value-chain emission by 2025. By 2030, purchase 100% renewable energy.
*Note: GlaxoSmithKline has announced plans for the demerger of its Consumer Healthcare business, to take effect in mid-2022. **Note: Targets for all of J&J. In, November 2021, company announced plans to split the company into two separate, standalone publicly traded companies, one focused on pharmaceuticals and medical devices, and the other on consumer health, effective 18-24 months from date of announcement. Source: Company information.
Highlights from GSK, J&J, Merck & Co., Novartis, Pfizer GlaxoSmithKline. GlaxoSmithKline (GSK) has set a goal of achieving net-zero carbon emissions by 2030 through several targets. By 2030, it aims to achieve net-zero Scope 1 (direct) and Scope 2 (indirect) emissions across all its Biopharma and Consumer Healthcare operations. By 2025, it has targeted 100% renewable electricity for its Biopharma business and Consumer Healthcare businesses. By 2030, it is targeting net zero emissions across its entire value chain (Scope 3 emissions) for its Biopharma business and select consumer healthcare brands/formats.
Last September (September 2021), GSK announced updates on efforts to achieve the company’s environmental goals, including new investment in renewable electricity at global manufacturing sites in the UK and US and a new initiative to reduce greenhouse gas emissions from its rescue-metered-dose asthma inhalers, which account for almost half of the company’s carbon emissions.
GSK is investing £50 million ($68 million) in the UK and US manufacturing sites to secure renewable power generation to support the target of sourcing 100% of global electricity usage from renewables by 2025. At its Irvine manufacturing facility in Scotland, the largest consumer of energy in the GSK global network, the company will invest in a long-term project for two new wind turbines: a 56- acre solar farm through a new 20-year power purchase agreement with its partner, The Farm Energy Company. The project will save 10,000 metric tons of CO2 annually and make a major contribution to reaching 85% onsite energy generation (55% from renewables). In addition, at Oak Hill in New York, a manufacturing facility in GSK’s Consumer Healthcare network, GSK is invested in solar energy production to achieve a target goal by the end of 2021 of converting 70% of power consumption to solar energy. GSK estimates that it has reduced carbon emissions in its operations by 10% over the last year, including switching to renewable energy for its Wavre vaccine site in Belgium.
GSK also announced last September (September 2021) that it has initiated an R&D program to redevelop and redesign its metered dose inhalers. A new lower greenhouse gas propellant is in preclinical assessment, with the potential to reduce greenhouse gas emissions from its inhalers by 90%. Approximately 45% of GSK’s carbon emissions come its metered dose inhalers.
Johnson & Johnson. Johnson & Johnson (J&J) has set an overall goal to achieve net-zero carbon emissions across its value chain by 2045. To reach this goal, it seeks to achieve carbon neutrality for its operations by 2030 by reducing absolute Scope 1 (direct) and Scope 2 emissions (indirect) 60% from 2016 levels. By 2030, it has set a target to reduce absolute upstream value chain (Scope 3) emissions 20% from 2016 levels to deliver nearly 2.5 times the carbon footprint reduction compared to that of its own operations. By 2025, it plans to source 100% of its electricity from renewable sources.
The company says it will achieve these goals through five main areas: (1) advancing energy and process efficiency; (2) sourcing renewable electricity (the company currently sources 50% of its electricity from renewable sources; (3) sourcing renewable heat (company is developing renewable heating systems and investigating zero-/low-carbon fuel use); (4) working with suppliers to develop emission-reduction targets; and (5) using nature-based climate solutions, such as carbon compensation and removal partnerships.
Merck & Co. Last April (April 2021),Merck & Co. announced goals to achieve carbon neutrality across its operations by 2025 and reduce its value-chain emissions by 30% by 2030. Merck says it will achieve carbon neutrality by increasing efficiency, reducing carbon emissions, applying sustainable building standards, and continuing to transition away from fossil-fuel use. Remaining Scope 1 emissions, which are direct greenhouse (GHG) emissions that occur from sources that are controlled or owned by an organization (e.g., emissions associated with fuel combustion in boilers, furnaces, vehicles), will be offset each year with a portfolio of carbon credits, including carbon removals.
Merck is also accelerating its previous 2040 goal by 15 years to source 100% renewable energy for its purchased electricity. Merck signed three new virtual power purchase agreements for utility-scale energy projects based in Texas and Spain. These projects will address approximately 35% of Merck’s Scope 2 emissions by collectively adding 145 megawatts of solar and wind energy to the grid. Scope 2 emissions are indirect greenhouse emissions associated with the purchase of electricity, steam, heat, or cooling.
To achieve the 30% reduction in Scope 3 emissions (i.e., value-chain emissions) by 2030, Merck says it will continue to engage with its suppliers to reduce their emissions, promote opportunities for suppliers to source renewable energy, and use existing procurement and supply-chain processes to drive additional ways to decrease emissions. Scope 3 emissions are the result of activities from assets not owned or controlled by a reporting organization, but that the organization indirectly impacts in its value chain.
Last month (December 2021), Merck announced its inaugural issuance of a $1-billion sustainability bond, which was part of an $8-billion underwritten public offering of notes that closed on December 10, 2021. Merck intends to use the net proceeds from this bond offering to support projects and partnerships in the company’s priority environmental, social, and corporate governance (ESG) goals. The bond transaction is in line with Merck’s newly introduced Sustainability Financing Framework, which facilitates the company’s use of sustainable capital markets to finance or refinance eligible projects that align with its ESG commitments.
Novartis. Novartis has an overall goal to achieve net-zero emissions by 2040. To achieve this goal, by 2025, it is seeking to become carbon neutral in its operations: Scope 1 (direct) and Scope 2 (indirect) emissions and be carbon neutral across its entire value chain (Scopes 1, 2, and 3) by 2030. It has also set a goal of becoming water- and plastic-neutral by 2020.
To achieve these targets, the company has an energy-management program that first involves right-sizing its business and improving energy efficiency; using renewable energy sources, such as wind and solar; and, finally, offsetting unavoidable emissions via carbon sequestration projects, such as tree planting. To increase its use of renewable energy, it has decarbonized its procured electricity in the US and Europe through the use of virtual power purchase agreements and also invested in four carbon offset projects in South America, Africa, and China.
As part of a supplier qualification process as it relates to sustainability, suppliers are required to disclose information and outline targets as it relates to emissions and water usage. Novartis works with various groups, including the Science-Based Target Initiative, the Carbon Disclosure Project, EcoVadis, and the Pharmaceutical Supply Chain Initiative. The qualification process is the first step and is followed by an implementation phase, with concrete actions and continuous improvements. In 2021, the company planned to release a dedicated Suppliers’ Sustainability Playbook to provide guidance to suppliers on how to efficiently manage the qualification and implementation phases and contribute to Novartis’ environmental sustainability targets. Based on the stage reached in the qualification and implementation phases, respectively, Novartis will assign a maturity level to each supplier to facilitate an open, transparent, and motivating environment for continuous improvement.
Pfizer. Pfizer has set goals to be carbon neutral across internal operations by 2030, including reducing Scope 1 (direct) and Scope 2 (indirect) emissions by 46% from a 2019 baseline. It is also targeting influencing reductions in its value-chain emission by 2025 by catalyzing suppliers to establish science-based targets by 2025. In addition, by 2030, it has set a goal to purchase 100% renewable energy.
In March 2020, Pfizer launched a $1.25-billion sustainability bond, which the company says was the first to be issued by a bio/pharmaceutical company. Proceeds from the bond will be used for meeting the company’s overall sustainability goals, including those related to environmental impact; increasing access to Pfizer’s products, especially to underserved populations; and the company’s overall social impact. In addition, in 2021, the company launched a $1-billion sustainability bond to help fund COVID-19 vaccine expenses.
Reduce the environmental impact of its operations and products by 50% from 2020–2029, compared to 2019. By 2029, achieve a 50% reduction of total environmental impact (eco-balance for operations and product stewardship score (based on internal company criteria) for products. By 2050, achieve real* zero greenhouse gas emissions for Scope 1 (direct) and Scope2 (indirect) emissions. By 2050, reduce Scope 3 (value chain) emissions.
Sanofi
By 2030, achieve carbon neutrality across its entire value chain and achieve a 55% reduction of direct greenhouse emissions related to its operations (Scopes 1 [direct] and 2[indirect] emissions). Limit environmental footprint and improve environmental profile of products. Key targets include: use eco-design for 100% of new products by 2025; use 100% of renewable electricity at all sites by 2030 and achieve a 100% carbon-neutral car fleet by 2030.
Takeda
By 2024, help 67% of its suppliers establish their own science-based emission targets. By 2025, reduce greenhouse gas emissions in company-wide operations by 40% (using FY 2016 baseline) and 15% for Scope 3 (value-chain) emissions (using FY 2018 baseline). By 2040, be carbon zero in its operations without using offsets for Scope 1 and 2 emissions and be carbon neutral across its value chain by reducing Scope 3 emissions by 50% from FY2018 baseline and offsetting remaining emissions.
Teva Pharmaceuticals
By 2030, reduce Scope 1 (direct) and 2 (indirect) greenhouse gas emissions by 33% vs. 2017 levels. By 2030, reduce Scope 3 (value-chain) emissions by 25%. By 2030, increase energy efficiency by 10% and the total proportion of energy purchased or generated from renewable sources to 50% and reduce totalwater withdrawal by 10% in water-stressed areas.
Viatris
Increase the use of renewable energy by more than 400% in five years (as reported in May 2021) and achieve zero-waste to-landfill at two additional facilities in India, to bring its global total to 13 sites with this status.
*Note: Roche’s goal of achieving “real” zero greenhouse gas emissions refer to actual emissions reductions without offsetting through CO2 reduction certificates. Source: Company information
Highlights from Roche, Sanofi, Teva Roche. In 2019, Roche began the process to develop and define new safety, health, and environmental goals for the next five years, with 2020 being the base year to compare with in 2021–2025. (Note: in 2021, the company changed the reference year to 2019 for some of the goals and correspondingly adjusted these goals because of distortions in the numbers in 2020 due to the COVID-19 pandemic).
Roche has begun a 10-year goal to reduce the environmental impact of its operations and products by 50% from 2020–2029, compared to 2019 levels. This involves, by 2029, achieving a 50% reduction of total environmental impact (eco-balance for operations and product stewardship score, based on internal company criteria) for products. Longer term, by 2050, it has set a goal to achieve real-zero greenhouse gas emissions for Scope 1 (direct) and Scope 2 (indirect) emissions. “Real-zero” greenhouse gas emissions refer to actual emissions reductions without offsetting through CO2 reduction certificates. By 2050, it is seeking to reduce Scope 3 (value chain) emissions.
Sanofi. Sanofi has a goal to achieve carbon neutrality by 2030 and achieve a 55% reduction of direct greenhouse emissions related to its operations (Scopes 1 [direct] and 2 [indirect] emissions). It is also seeking to improve the environmental profile of its products. Key targets include use of eco-design for 100% of new products by 2025, use of 100% of renewable electricity at all sites by 2030, and achieving a 100% carbon-neutral car fleet by 2030.
To help finance its sustainability projects, which include environmental targets as well as societal projects, such as increasing access to medicines, last month (December 2021), Sanofi announced two sustainability-linked revolving credit facilities: (1) a new EUR 4-billion ($4.3-billion) revolving credit facility expiring December 2025, with two extension options of one year each and (2) an amendment of EUR 4 billion ($4.3-billion) revolving credit facility that expired in December 2021 with the addition of two extension options of one year each.
Sanofi first signed a sustainability-linked loan in 2020 with 16 lenders, and the new sustainability-linked credit facilities reflects its strategy to become an active repeat issuer of sustainable finance instruments. In addition, in December (December 2021), the company issued its Sustainability-Linked Bond Framework to outline its criteria and goals for sustainability-linked bonds.
For value-chain emission reductions, Sanofi has also partnered with nine other bio/pharmaceutical companies to facilitate suppliers’ adoption of 100% renewable electricity and reducing greenhouse gas emissions through the ENERGIZE program. Members also include AstraZeneca, Biogen, GSK, J&J, Merck, Novartis, NovoNordisk, Pfizer, and Takeda. Companies in the program support suppliers in reducing their Scope 2 greenhouse gas emissions, i.e., the electricity companies buy, which in turn will reduce Scope 3 emissions, those that occur throughout the value chain such as transportation and distribution. The program is designed to enable pharmaceutical suppliers to learn more about renewable energy adoption and contracting. This gives suppliers, which may not otherwise have the internal resources or expertise available, the opportunity to participate in the market for power purchase agreements.
Teva Pharmaceutical Industries. Teva has set a goal by 2030 to reduce Scope 1 (direct) and 2 (indirect) greenhouse gas emissions by 33% vs. 2017 levels. It has also set a 2030 target to reduce Scope 3 (value-chain) emissions by 25%. Together, these environmental targets aim to reduce emissions across Teva’s value chain in line with the Paris Climate Agreement.
To meet these goals, last November (November 2021), the company issued a $5-billion sustainability-linked bond, the proceeds of which are linked to three targets, including a 25% reduction in Scope 1 and 2 greenhouse gas emissions and a 150% increase in access to essential medicines for patients in low- and middle-income countries by the end of 2025. Teva says that the $5-billion bond is the largest of its kind from any sector and the first issued by a generic-drug company.
Electronic afterlife: Opportunities in global e-waste recycling
29 views
What is E-Waste?
In today’s fast-paced world, technology advances at an astonishing rate, rendering our electronic devices obsolete in the blink of an eye. E-waste, a realm where hidden fortunes and lurking dangers intertwine, is the world’s fastest growing and the most valuable waste stream. Within this rapidly growing waste stream lies a treasure trove valued at a staggering $62.5 billion USD, brimming with precious metals waiting to be mined. With less than 20 percent of global e-waste currently undergoing formal recycling, discarded electronic devices, once cherished and now non-functional or unwanted, hold the key to significant untapped potential. IT and Consumer Electronics stands as the primary focus within e-waste recycling. This includes electronic devices commonly found in corporate offices, schools, and households. Computers, tablets, servers, televisions, and cell phones hold the promise of being repaired and refurbished into fully functional devices, fetching prices that surpass the mere sum of their raw materials.
This category of electronics not only has the potential for refurbishment but also serves as a concentrated source of precious metals like gold, silver, and platinum. Additionally, it contains other recyclable commodities such as glass and plastic. Approximately 60 percent of e-waste is comprised of valuable metals, while plastics make up 15 percent, and delicate glass components account for 12 percent. By recycling these electronics, we not only recover valuable resources but also contribute to the sustainable management of e-waste.
However, amid the allure of riches, a hidden danger lurks. E-waste carries a dual identity, harboring hazardous chemicals like lead, mercury, cadmium, arsenic, and beryllium. Safely recycling these valuable components becomes a complex and costly endeavor, necessitating careful handling to protect both the environment and human health.
Informal E-Waste Recycling
In e-waste recycling, metals have a significant recycling advantage over plastics. The distinct properties of metals, including their different densities, colors, and electrical and magnetic properties, make it easier for humans and machines to separate them from other materials. Meanwhile, plastics pose a greater challenge due to their similar properties, overlapping densities, and any plastic can be any color. As a result, the recycling of e-waste metals surpasses that of plastics.
To cope with the difficulty of separating the metals from plastics in e-waste, many organizations in high income countries resort to exporting their e-waste to developing countries for informal recycling. This informal economy thrives in regions such as Central America, Northern Africa, and Southeast Asia, where laborers engage in hazardous practices to extract metals from obsolete electronics. Burning obsolete electronics without protective equipment, manually stripping metals, and discarding unsalable parts into bodies of water pollute the environment and pose severe health risks to nearby communities.
80 percent of the world’s e-waste is processed through this informal economy, concentrating in countries like Ghana, Nigeria, Pakistan, India, and China. These regions become attractive import destinations for unmonitored e-waste, as companies label their shipments as “reusable” or “donations” to avoid the higher costs of formal e-waste recycling domestically. The consequences of informal e-waste recycling include toxic pollution in food, water, and air, perpetuating a dangerous cycle of environmental degradation jeopardizing human health.
Formal E-Waste Recycling
Within formal electronics recycling lies an industry known as IT Asset Disposition (ITAD), where safe transformation unfolds. ITAD companies breathe new life into discarded gadgets and safeguard sensitive data, all while reaping the hidden treasures within. The ITAD industry concentrates in North America, Western Europe, and Asia-Pacific.
At the heart of ITAD lie three essential services: data sanitization, repair and refurbishment, and the transformation of electronics into raw commodities. The journey begins with the careful sorting of e-waste into different categories, such as desktops, laptops, tablets, servers, and keyboards. Each device is then evaluated for functionality, considering its physical condition and responsiveness. Those that pass the assessment undergo a data removal process, where data-bearing assets are thoroughly cleansed without causing damage to the hardware. Once functional components are removed, they are repurposed for in-house refurbishment, sold to wholesalers, or made available on platforms like eBay.
For electronics that cannot be repaired or reused, a meticulous shredding process comes into play. Prior to shredding, all hazardous components are carefully removed and sent for specialized recycling. The shredder then reduces the remaining electronic material into smaller pieces, typically 1.5-to-2.5 inches in size. These fragments are mechanically sorted through vibrating screens, magnetic separation, eddy current separation, and density separation. The resulting metal outputs are sent to smelters, while the plastics find their way to compounders. Ultimately, the recycled e-waste commodities find their place predominantly in European and Asian markets.
Global Methyl Methacrylate (MMA) Market Snapshot
31 views
Methyl methacrylate (MMA), also referred to as 2-methyl acrylic acid methyl ester or 2-methyl-2-propenoic acid methyl ester is a key intermediate chemical, due to its ability to undergo polymerization and copolymerization. Polyacrylates, a family of clear and relatively durable thermoplastics, are the major source of demand for MMA.
The largest single application for MMA is in the production of polymethyl methacrylate (PMMA). PMMA is a hard, rigid and transparent polymer. It absorbs very little visible light, and it is a polar material with a rather high dielectric constant and power factor. PMMA has a good water resistance, and has good resistance to alkalis, aqueous inorganic salts and dilute acids. PMMA has outstanding outdoor weather resistance, markedly superior to other thermoplastics.
PMMA is best known through its various trade names: Plexiglas, Lucite and Perspex. The main end-uses for PMMA resin are in sheet extrusion and moulded products. Extruded acrylic sheet is used in a variety of applications such as displays and signage, glazing, lighting and miscellaneous other uses. Moulded PMMA resin is used in parts for motor vehicles, electrical appliances and optical applications as well as a variety of homewares and consumer goods. Its major advantages are excellent optical properties and transparency, weatherability, light weight, impact resistance, chemical resistance, electrical resistance, and workability. The largest sectors for PMMA are in construction, advertising displays and signage, appliances, automotive and optical media.
In general, MMA and PMMA are used in a wide range of industries, with the largest end-markets being the construction and automotive industries. The diversity of the end-markets for these products means that overall demand growth tends to follow GDP. Therefore demand for MMA and PMMA is expected to grow at an annual average rate of 3.2 and 3.0 percent, respectively, from 2022 to 2035. Market demand is greatly influenced by general economic conditions, and the development of new technologies and products.
Three primary processes have been commercialized to produce MMA. These are based on acetone cyanohydrin (ACH), the i-C4 (or isobutylene) route, and Lucite’s Alpha process. However, in response to market needs for green and renewable products, MMA producers and technology developers are researching and developing more sustainable technologies to produce MMA. A few industry players, such as Mitsubishi Chemical Corporation (through its Lucite subsidiary), Evonik, Ascenix and Arkema, have announced the development of bio-MMA processes; although these technologies are yet to be commercialized. However, it is worth mentioning that several of the key bio-based feedstocks of MMA are now commercially available.
Global MMA capacity exceeds 6 million tons, while PMMA is over 2 million tons in 2022. Asia Pacific accounts for about 70 percent of the global capacity. In recent years, capacity addition has been focused in Asia Pacific, primarily China, driven by the investment in upstream production and growing regional demand. New players from the Middle East have also emerged in the last five years, increasing the competition in the global market. Global operating rates have been suppressed in recent years, but are expected to gradually recover after 2025 due to changing market dynamics.
Algae’s potential as a sustainable feedstock/product
28 views
As the world work towards reducing greenhouse gas (GHG) emissions and transition towards cleaner energy sources, carbon-neutral or carbon-negative energy sources have been explored. One such avenue is algae-based fuels, which like any other plants, absorb carbon dioxide from the atmosphere as they grow. Its high lipid (oil) content can then be converted into biodiesel or polysaccharides (carbohydrates) that can be converted to biogas or bioethanol. There are also other alternative uses for algae beyond fuel production that could contribute to GHG reduction by potentially substituting other products such as fertilizers that are conventionally produced from non-renewable sources.
While algae has similarities to other plants, with the key one being natural carbon sinks, there are a few reasons why algae has garnered more interest as a plant-based source. Algae can:
Grow in brackish water and wastewater streams
Form part of a wastewater treatment system to produce clean water while terrestrial plants consume it
Double its volume of biomass in mere hours under appropriate conditions
Be used as a biofuels feedstock generator as well as a direct producer of biofuels and chemicals; they are known for lipids production because algae are uniquely capable among green plants of producing lipids throughout the biomass (not only in seeds)
Be widely cultivated for extractable byproduct animal feed, food protein isolate, vitamins, other nutraceuticals, oleochemicals feedstocks, colourants etc.
One of the most compelling reasons behind the interest towards algae-based fuels is their lower carbon intensity when compared to conventional fossil fuels. Their inherent carbon capture capability results in reduced greenhouse gas emissions throughout the production cycle of algae-based fuels, making them an attractive alternative to traditional fossil fuels if the economics prove workable.
Algae’s carbon impact in reality
The primary determinant for achieving successful commercial production of algae-based fuels is tied to the level of oil productivity. The pathway for generating algae oil is remarkably adaptable, offering a range of avenues that span from selecting the appropriate strains, choosing cultivation techniques, and refining the processes of harvesting and extraction. The economic feasibility of microalgae biofuels hinges on the ability to cultivate these microorganisms on a large scale in outdoor settings.
This cultivation can take place in open systems like ponds and wastewater facilities, as well as enclosed offshore setups such as photobioreactors (PBR). Among these options, open pond systems are the simplest from a technical standpoint, utilizing atmospheric carbon dioxide for operation. However, atmospheric carbon dioxide is insufficient to facilitate the rapid growth of algae needed for efficient biofuel production. Conversely, PBRs require an external supply of carbon dioxide due to their inherent design which can potentially be sourced from industry flue gases.
The autotrophic growth (i.e. via photosynthesis) of algae is dependent on availability and intensity of light which becomes a limitation in regions with limited or consistent sunlight. This limitation affects the scalability and productivity of algae cultivation. On the contrary, heterotrophic growth relies on external organic compounds like sugars. However, this approach increases operational costs and limits the versatility of algae cultivation as not all species are capable of heterotrophic growth. A middle ground is found in the mixotrophic growth mechanism, which combines the advantages of both cultivation methods while mitigating their drawbacks. This approach is being embraced by companies like Next Generation Oil in Malaysia, where they employ the mixotrophic growth mechanism in their patented modular algae cultivation system known as Algae-Modular Automated Plantation (A- MAPTM).
In order to properly assess the true carbon benefits of algae-based fuel against conventional fossil-based fuel, it is thus important to understand the differences in production approaches for algae. As mentioned earlier, heterotrophic cultivated algae rely on sugars rather than photosynthesis and thus ends up exhibiting the highest carbon intensity among the algae production methods. Roughly two-thirds of the carbon emissions from heterotrophic algae cultivation are attributed to scope 3 emissions from dextrose, a component of the raw materials, which emit approximately 1.2 tons of CO2e per ton of whole algae. In contrast, autotrophic cultivation methods such as open pond and photobioreactor have lower carbon emissions as they consume carbon dioxide for photosynthesis.
It is also worth noting that although algae cultivated via the autotrophic route reduces carbon emissions through the absorption of carbon dioxide from the atmosphere, the process is not without carbon emission. Algae cultivated this way typically contains higher water content, necessitating more energy for the dewatering and drying processes. Energy is primarily supplied through fuel gas combustion, which is the primary source of carbon emissions in autotrophic cultivation methods, followed by power consumption.
Advancement in biotechnology – the answer to algae oil productivity for biofuels?
Despite ongoing endeavors to enhance algae cultivation techniques for boosting oil productivity, the advancement of biotechnology will be necessary to unlock the full potential of algae-based fuels. Researchers and scientists are continually refining cultivation techniques, optimising algae strains for higher lipid content (which translates to greater fuel yield) and improving overall productivity.
Genetic engineering and synthetic biology are at the forefront of biotechnological breakthroughs in algae-based fuel production. By modifying algae strains or identifying optimum algae growth environments to enhance their lipid production capabilities, researchers are accelerating the transition from laboratory innovations to scalable, commercial solutions. These advancements not only enhance the environmental credentials of algae-based fuels but also pave the way for increased efficiency and cost-effectiveness. Viridos, previously known as Synthetic Genomics has been focusing on algae genomic research in the last decade to improve oil productivity through gene modification and identifying a robust algae strain. While Viridos is currently not at the stage of achieving commercial production of algae biofuels, the company has notably been one of the few algae companies that still has its focus on producing algae fuels.
Credits fueling algae-based fuels
Credits serve as catalyst for advancement and play a pivotal role in propelling the development and utilisation of algae-derived fuels. These credits, encompassing a range of environmental, economic and regulatory incentives, are shaping the landscape of renewable energy by providing a foundation upon which this industry can flourish.
Fiscal incentives are implemented in the United States to promote the use of renewable fuels in the transportation sector. These include the blender’s tax credits (BTC), Renewable Identification Numbers (RINs) and Low Carbon Fuel Standard (LCFS). While BTC and RINs are applicable for the whole country; LCFS legislation is enacted in selected states such as California, Oregon and Washington.
Tech-driven trends: rPET’s global momentum
29 views
While nearly 400 million metric tons of plastic waste are generated annually across the globe, a mere 10% undergoes recycling. PET is a standout in the recycling landscape, enjoying one of the highest recycling rates among plastics. Its widespread presence, relative ease of collection, and inherent molecular properties make it a prime candidate for mechanical recycling. Especially in its bottled form, PET can undergo multiple reshaping and remelting cycles with minimal quality degradation. Advanced technologies like near-infrared (NIR) and optical sorting are amplifying PET’s recycling efficiency, distinguishing it more easily compared to other plastics.
Supply, Demand and the Market Dynamics
Despite its recyclability, a discrepancy exists between rPET (recycled PET) demand and supply. Should brands fulfill their public commitments to using recycled content, it’s anticipated that by 2030, the U.S. demand for recycled polyethylene terephthalate (rPET) will be three times greater than available supply. The main constraint in supply arises from the fact that most PET ends up in landfills, attributed to suboptimal collection rates. Yet, amid these challenges, global consciousness is shifting. Governments, industries, and consumers are increasingly echoing a unified call for sustainability.
A Glimpse into Global Practices and Trends
Different regions have distinct recycling practices. For instance, the U.S emphasizes curbside programs and drop-off centers, while Europe leans more towards Deposit Refund Schemes. Asia, with its diverse economic landscapes, showcases varied waste management practices. In Japan, characterized by rigorous waste segregation and one of the world’s leading recycling rates, their advanced waste management practices underscore a deep-rooted commitment to sustainability; on the other hand, in areas such as rural Cambodia, limited infrastructure often results in a reliance on open dumps and the efforts of informal waste collectors. Every region, with its unique infrastructure, priorities, and economic constraints, contributes to the larger PET recycling narrative.
Across all regions, mechanical recycling is the more economical choice relative to advanced chemical recycling when presented with high-quality PET flake. However, chemical recycling, especially for hard-to-process feedstocks such as multi-layer plastics, heavily contaminated materials, and certain thermosets, is poised to carve out its niche, filling in the gaps where mechanical recycling lacks.
The rPET TECH Report: A Comprehensive Guide
For those keen on delving deeper, our Recycling Options for PET TECH report offers a panoramic view of the PET recycling world. It navigates through the intricacies of recycling processes, by exploring its technical, environmental, regulatory, and economic dynamics both globally and regionally. The report explores a spectrum of recycling technologies, detailing their methods and potential advantages. The economic competitiveness of these processes ranges from mechanical to chemical methods, with specific emphasis on solvent-based purification, glycolysis, and methanolysis.
This analysis extends to detailed profiles of key technology licensors, owners, operators, and sorting technology providers, revealing the intricacies of their operations. Furthermore, the report presents a Cost of Production analysis across regions including US Gulf Coast (USGC), Western Europe, China, Japan, and Southeast Asia. These regional-specific insights spotlight market dynamics and the financial feasibility of intermediates such as rPET flakes, Bis-Het via both comprehensive and partial glycolysis, and DMT through methanolysis. The report compares rPET pellet prices with the Q1 2023 virgin market rate.
Cost of Production Summary – United States (Basis: Q1 2023)
While the path of PET recycling is laden with challenges—from supply shortages to competing with he price of tvirgin PET—the undercurrent of optimism is palpable. As public support grows, as industries recalibrate their sustainability goals, and as governments fortify their legislative mandates, PET recycling is not just a passing trend; it’s the future.
Navigating this future necessitates informed choices. Our Recycling Options for PET TECH report is tailored to guide you through them. For those eager to garner in-depth insights and contribute to the solution, we encourage you to delve into this report. Your journey into sustainable choices begins here.
Charting a path through the plastic waste crisis: Recycling frontiers advancing circularity
25 views
Every single item in the entire physical economy, without exception, will one day become landfill, or be incinerated. In a world plagued by an escalating waste crisis, the urgency to find viable solutions has become paramount. The repercussions of excessive consumption and single-use disposability has led to environmental degradation, endangered human health, and threatened biodiversity.
Nevertheless, amidst the turmoil, there emerges a glimmer of hope. Two significant potential solutions – the proliferation of mechanical recycling and chemical recycling – are presenting extensive opportunities to revolutionize our relationship with plastic waste. Virtually all types of plastic can be recycled through these processes. However, the decisive factor for an item being “recyclable” or “recycled” rests on economics. If an item’s collection, sorting, processing, and resale value outweigh the associated costs, it gets recycled. Otherwise, these materials contribute to the mounting waste in ecosystems, landfills, or incinerators.
The COVID-19 pandemic underscored this crucial distinction, especially with the drop in oil prices that made virgin plastics more cost-effective than recycled ones. This highlighted the subjective nature of recycling value, influenced by commodity price fluctuations. However, it also unveiled intriguing possibilities for innovation and the establishment of new recycling paradigms.
Investor Landscape
Despite the challenges faced by global capital markets, investments in climate technology have been on the rise. The growth in climate-related investment, driven by policies aimed at zeroing out emissions and achieving sustainability objectives, is defying market headwinds. In 2022, climate-related private-market investment surpassed the broader market in terms of deal activity, capital deployed, and flows into dedicated funds.
The momentum is expected to continue in 2023, as governments, corporations, and investors accelerate the adoption of climate technologies. Notably, European nations are speeding up their renewable energy plans while seeking to diversify their energy supplies. Unprecedented government programs in the United States and Europe, such as the US Inflation Reduction Act (IRA) and the EU Green Deal, are set to unlock significant capital to combat climate change.
Annual climate investments could reach $9 trillion to $12 trillion by 2030. Over the past four years, climate investing has experienced breakout growth. Equity investors have launched numerous sustainability, environmental, social, and governance (ESG), and impact funds. The cumulative assets under management in these funds have tripled from $90 billion to over $270 billion. Private-market equity investments in climate-oriented technologies and solutions have also soared, with a growth rate of 40 percent annually.
To succeed in the climate investing landscape, investors must exercise caution and identify investment opportunities that capture tailwinds while mitigating macro headwinds.
Eight factors are crucial for assessing climate-focused deals:
Demonstrated technology and operational performance
A clear path to cost competitiveness
The ability to secure captive demand
A leadership track record
The ability to attract talent
Access to policy support and incentives
Readiness to hyperscale
The ability to create and leverage ecosystems
The waste crisis may seem insurmountable, but within its depths lies the potential for transformation. Mechanical recycling and chemical recycling have emerged as game-changing solutions, offering opportunities to reshape our relationship with plastic waste. By embracing these innovative approaches, we can breathe new life into discarded materials, reduce our reliance on virgin resources, and create a more sustainable world.
Mechanical Recycling
Mechanical recycling is a well-established process that converts plastic waste into reusable materials through sorting, shredding, washing, and extrusion, while keeping the chemical composition of the plastic intact. Mechanical recycling is a highly favored solution due to its energy efficiency, structured value chain, and low greenhouse gas emissions. It relies on effective waste sorting and pre-sorting systems, along with separate collection of waste streams, to produce high-quality circular polymers.
Advanced Chemical Recycling
Advanced chemical recycling techniques, including dissolution, depolymerization, gasification, and pyrolysis, can complement mechanical recycling by handling non-recyclable or refined waste streams. However, these techniques are less mature and have higher greenhouse gas footprints. Despite their potential to convert recycled materials into hydrocarbons and expand the range of recyclable plastics while diverting waste from landfills, the high capital intensity and expensive outputs have hindered their scalability.
Dissolution involves dissolving plastic materials in a suitable solvent to separate the polymer from other components. Depolymerization breaks down polymers into their monomer units, while gasification converts solid plastic waste into a gaseous state through heat and controlled amounts of oxygen or steam. Pyrolysis decomposes plastic waste at high temperatures, producing gases, liquids, and char that can be used as fuels, chemicals, or further refined.
To unlock the full potential of chemical recycling, further development of technologies, expansion of infrastructure and sortation systems, and changes in consumer behavior are necessary. Collaboration across the value chain, including partnerships between technology providers, resin producers, waste-management companies, and consumer packaged goods (CPG) companies, is crucial for scaling up advanced recycling and driving demand for recycled materials.
Wave of change: Decarbonizing the maritime sector with low carbon intensity (CI) fuels
33 views
Decarbonization is becoming increasingly important to the global shipping industry. All materials need to be transported to and from production to market, thus shipping impacts the carbon footprint of all other sectors. Shipping companies, ship manufacturers, governments, industry organizations, and other players in the shipping and logistics value chain are following the general trend of decarbonization seen in other industry sectors.
According to the International Energy Agency (IEA), CO2 emissions from international shipping (essentially from bunker fuel consumption) were reported to be at 706 million tons in 2022, accounting for around two percent of global CO2 emissions. Without effective decarbonization measures, the shipping industry’s greenhouse gas (GHG) footprint is projected to grow up to 130 percent of 2008 levels by 2030.
In July 2023, the International Maritime Organization (IMO) adopted a revised GHG strategy to reduce GHG emissions from the shipping industry. The new targets include a 20 percent emissions reduction by 2030, a 70 percent reduction by 2040 (compared to 2008 levels), and the ultimate goal of achieving net zero emissions by 2050.
To date, the majority of cargo ships are still powered by marine fuel oil and diesel derived from crude oil, which emit relatively high CO2, SOx and NOx emissions when combusted. In recent years, liquefied natural gas (LNG) has emerged as a transition fuel between conventional marine fuels and cleaner alternatives due to its zero-sulfur content.
As part of the industry’s ongoing decarbonization efforts, alternative fuels that emit lower GHG emissions compared to conventional marine fuels are currently being developed. Renewable drop-in fuels such as biodiesel, Renewable Diesel, and bio-LNG are already seeing limited blended use as marine fuels. Fuels with relatively low or near-zero GHG emissions, such as methanol, ammonia, and hydrogen, are considered emerging marine fuels. The adoption of methanol remains limited to a small fraction of shipping vessels, while the use of ammonia and hydrogen is yet to be tested on actual commercial voyages.
Alternative power options such as electricity, wind and nuclear propulsion are also being explored as viable pathways toward net zero shipping. Technology development for these power options is still at a nascent stage, but some options like electricity and wind are already being adopted in hybrid drive systems that offer fuel-saving benefits for existing ships.
NexantECA carried out a carbon intensity analysis on a per nautical mile basis for various low CI marine fuels produced in the United States, taking into account scope 1, scope 2, upstream scope 3, and downstream scope 3 fuel combustion emissions. The carbon intensities have been adjusted for gravimetric energy density, which is the amount of energy stored in a given mass of fuel. This adjustment facilitates the evaluation of the environmental performance of different fuel options for specific voyages.
The results show that green hydrogen and green ammonia rank among the marine fuels with the lowest overall carbon intensities. This is attributed to the utilization of renewable power, which has a considerably lower emission factor compared to conventional grid power generated using fossil fuels. In addition, fuel combustion emissions (categorized as downstream scope 3 fuel combustion emissions) for hydrogen and ammonia are considered zero as they do not emit CO2 at their point of consumption.
Other fuels such as bio-LNG, bio-methanol, e-methanol and biomass-based diesel (i.e., FAME and Renewable Diesel) have a higher carbon intensity than green hydrogen and green ammonia, as these are hydrocarbon fuels that still emit CO2 at their point of consumption, thereby contributing to significant downstream scope 3 fuel combustion emissions. Nonetheless, the majority of the fuels produced using renewable feedstocks and renewable power (except biomethanol) still offer emissions reduction benefits when compared to conventional marine fuel oil derived from crude oil.
Biomethanol has the highest carbon intensity on a per mile basis due to its relatively low gravimetric energy density compared to other fuels except ammonia. This means that ships are required to carry a larger quantity of biomethanol fuel to achieve the same endurance as compared to other marine fuels, contributing to a high carbon intensity on a per mile basis.
Conventional routes to produce emerging lower-carbon marine fuels such as methanol, ammonia, and hydrogen still rely heavily on fossil fuels. Low carbon intensity (CI) options such as green methanol, green ammonia, and green hydrogen that are produced from renewable sources offer the potential towards zero-emissions shipping, though technology maturity and scalability of these low carbon processes need to be addressed for these options to be widely adopted in the shipping industry in the future.
The long-term goal is to switch from fossil to non-fossil based, low CI marine fuels produced with renewable or carbon-neutral sources. The development of low CI marine fuels, in combination with other decarbonization measures such as energy efficiency improvements in ships and onboard carbon capture, plays a critical role in achieving net zero emissions for the shipping industry by 2050.
What’s cooking with renewable DME?
29 views
Fossil-based Dimethyl Ether (DME), traditionally derived from natural gas or coal, has a long-standing presence in the market. Global capacity has been in oversupply since the mid-2000s, largely due to significant capacity expansion in China. China alone accounts for over 90 percent of global capacity, driven by the widespread establishment of coal-based methanol facilities during that period, as many Chinese methanol producers built DME as an integrated downstream outlet for their excess methanol. However, recent years have witnessed a transformative shift in the form of the energy transition movement. Bolstered by government support and industry commitments to reach carbon neutrality, this movement has ignited a fresh wave of investments aimed at advancing the scale-up and deployment of sustainable, low carbon fuels – a category that includes Renewable DME.
What is Renewable DME?
Renewable DME stands out as a safe, environmentally friendly fuel, capable of effecting Greenhouse Gas (GHG) emissions reduction swiftly, particularly in hard-to-abate sectors across remote locations. Despite sharing the same molecular structure as fossil-based DME, Renewable DME distinguishes itself through its diverse production pathways, involving sustainable feedstocks such as biomass, waste residues, as well as renewable power and carbon dioxide. Renewable DME can be used in different applications, as illustrated below.
The recent upsurge in interest in Renewable DME is predominantly driven by the increasing demand for defossilisation across the transportation, domestic heating and cooking sectors. While Renewable Liquefied Petroleum Gas (LPG) is already commercially available, its supply remains constrained due to its status as a byproduct in most production pathways. By blending DME with LPG up to 20 percent by weight, substantial modifications to existing infrastructure are unnecessary. This in turn simplifies processes related to storage, logistics and bottling, making it more convenient for consumers to adopt. Furthermore, Renewable DME holds the potential as a hydrogen carrier due to its molecular structure, allowing it to transport more hydrogen on a per volume basis. This quality positions it advantageously in the context of the growing emphasis on hydrogen as a potential “fuel of the future”.
Industry Developments
While still a nascent market currently, Renewable DME is undergoing a phase of rapid growth across the globe. U.S. based Oberon Fuels became the first company to commercialise the production of Renewable DME in 2021 at the Maverick Plant in Brawley, California, using green methanol obtained from kraft pulping mill processes as feedstock. The company plans to build more facilities in North America and Europe, with a target to achieve over 500 000 tons per year capacity by 2027.
Dimeta, a joint venture between two major global LPG distributors – SHV Energy and UGI International, was formed to advance the production and use of Renewable DME to accelerate the decarbonisation of off-grid energy sectors. As it stands, Dimeta has partnerships with KEW Technology, Enerkem and NextChem/MyRechemical (part of Maire Tecnimont), and is involved in a research consortium including TNO and others. Dimeta’s joint venture with KEW Technology, known as Circular Fuels Ltd., plans to build a 50 000 tons per year plant in Teesside, United Kingdom, using Municipal Solid Waste (MSW) as feedstock. The Teesside facility is targeted to commence commercial production by 2025. By 2027, Dimeta is targeting the development of five other production facilities across North America and Europe, reaching a total capacity of 300 000 tons per year.
Apart from North America and Western Europe whereby policies relating to sustainability and carbon emissions control are more mature, South Korea is also a key market for Renewable DME development. South Korean-based Bio Friends Inc. has also announced three new Renewable DME facilities to start up within the next three to four years, all of which are located within the country. Overall, the Renewable DME space is expected to become increasingly active in the near term, driven by the increasing need for sustainable solutions globally.
Much like most low carbon fuels, Renewable DME is currently facing certain obstacles that need to be addressed. These include its high production costs and the competition it faces with other higher-value, low carbon fuels for e.g. Sustainable Aviation Fuel (SAF) and Renewable Diesel, all vying for sustainable feedstocks, amongst other challenges. Nonetheless, it is important to recognise there is currently no single solution that guarantees achievement of net zero targets within the designated timeframes (such as 2050 or 2060). Consequently, Renewable DME assumes a crucial role in driving the global energy transition movement. It can serve as either a standalone low carbon fuel, or leverage on the existing liquid gas supply chain, thereby effectively mitigating the costs associated with transitioning.
Global MDI Market Snapshot
34 views
Methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI) are primarily used in the production of polyurethanes. Compared to other polymers such as polyethylene, polypropylene, or PVC, polyurethane is unique. While the other polymers have a basic backbone of repeating units, polyurethanes cannot be characterized as such. It is easier to define polyurethanes as polymers containing urethane monomer units in their backbone, as well as other functional units such as esters, ethers, amides, ureas, and isocyanurate groups.
TDI was the first of the aromatic diisocyanates to be introduced commercially for use in polyurethane flexible foam manufacture. It is available as a mixture of two isomers, the 2, 4 and 2, 6 isomers, with the most common grade made up of 80 percent 2, 4-TDI and known as 80:20 TDI. This grade is typically used in the production of polyurethane foams and polyurethane CASE applications. 65:30 TDI and 100 TDI are also available and used in the production of high resilience flexible foam and CASE applications, respectively.
MDI was developed in response to the problems caused by the volatility of TDI. TDI has a higher volatility, and in confined areas, sprayable TDI foams were difficult to handle by workers and led to health issues. The number of transformation steps from initial refined feedstock to MDI is higher than TDI, and the chemistry used is more complex. MDI is principally used in polyurethane and polyisocyanurate foam for construction or appliance insulation but is also used in automotive foam, coating, adhesives, sealants, and elastomers.
Methylene diphenyl diisocyanate (MDI) is produced in monomeric, polymeric, and modified forms. There are two commodity grades of MDI that are commonly sold – monomeric MDI and polymeric MDI. There is a significant variety in the types of modified MDI and MDI prepolymers sold to the market and they are considered specialty as they are sold on their performance. Crude and high functionality polymeric MDI (HFPMDI) are essentially variants of polymeric MDI with higher and lower monomeric MDI content, respectively. Blending of MDI components is also possible to produce products with specific properties.
There are three properties that are key to choosing one of the commodity MDI grades – NCO content, viscosity, and functionality. NCO content is a measure of the amount of free isocyanates as a function of the total molecular weight and functionality of the isocyanate and polyol. Functionality is defined as the number of isocyanate groups per MDI molecule. Viscosity is an important measure for processing but is also an indicator of the monomeric MDI content of the product. Functionality of monomeric MDI is two – as there are two isocyanate groups available to react on the 4,4-MDI molecule. The functionality of polymeric MDI is between 2 and 3 as the oligomeric species tend to cross-link by various side reactions. This allows for greater cross-linking in polyurethanes which enhances the rigidity of the final product.
Total global MDI consumption is estimated to increase to 7.5 million tons in 2023, a two percent increase from 2022. MDI consumption is closely linked to performance in the construction and appliance sectors which have stagnated through 2022 and 2023 due to inflation. Demand growth is expected to remain stagnant through 2024 but improvements depend on the lowering of interest rates to help buoy demand growth.
MDI production is highly concentrated in three major regions: North America, Western Europe, and China. Global MDI capacity in 2023 exceeds 10 million tons per year, with the number of producing companies limited. The top five producers account for nearly 90 percent of total global capacity, with Wanhua the largest global producer. Wanhua Chemicals has large MDI capacity addition plans in China until 2025 and has also added new capacity since 2022.
