< Previous“Progress is being made in Saudi Arabia, for example with SABIC, a global leader in the chemical industry, announcing in April this year that it is launching a new recycled material made from ocean-bound plastics that have been recovered from ocean-feeding waterways and inland areas. That such innovative and scalable steps are being taken in a nation historically renowned for black gold speaks volumes about the cultural shift taking place ‘on the ground’ in the Middle East.” O il markets have been marked with stress over the last year with record low prices, pandemic-spurred de- mand woes, and talk of peak oil this decade putting energy players’ nerves on edge. But there is a growth spot capturing more and more attention – petrochemicals. For one, the healthcare needs to counter the impact of Covid-19 have been an unfor- tunate but very real propellant of the market over the last year. The global medical plastics market is projected to reach $44bn by 2027, marking a compound annual growth rate of 7.7% – between 2020 and 2027, according to ResearchandMarkets. This is one of the reasons that feedstock is expected to lead oil demand to pre-crisis levels, according to the International Energy Agency (IEA). This is particularly telling considering that 2020 marked the greatest decline in demand for oil – ever. This year, the agency expects liquefi ed petroleum gas (LPG), ethane and naphtha demand to climb by 800,000bpd – approximately 4%. A sure thing But this does not mean that growth will tail off once the pandemic is brought under control. Instead, petrochemicals sector has cemented its position as the largest driver of future oil demand growth up to 2030, sev- eral leading energy forecasters agree. Saudi Arabia’s APICORP has raised its estimate for planned petrochemical projects in the Middle East and North Africa alone by $4bn, between 2020 and 2024, to $95bn. This all fi ts in with many Middle East- ern compa- nies’ down- stream push, including na- tional oil com- panies (NOCs). Momentum is fast-grow ing in the UAE alone. For one, ADNOC wants to nearly triple its petrochemicals production in nine years – from 4.5mn tonnes per year to 11.4mn tonnes per year during 2016-2025. And in March this year, the major NOC up- dated the status of its ambitious downstream investment and industry expansion, saying that more than $11bn of growth projects are under execution and that front-end engineer- ing design (FEED) tenders for Taziz Chemi- cals projects have been issued. And in March this year, the UAE launched the industrial strategy ‘Operation 300bn’. The 10-year plan aims to empower and ex- pand the industrial sector – petrochemicals and plastics are well noted – to drive a sus- tainable national economy, increasing GDP contribution from today’s $36bn to $82bn by 2031. International eyes are also increasingly zooming in on the region’s potential, such as Austrian energy group OMV saying that it may bolster investments in the UAE via its stake in petrochemical company Borouge. For now, it appears that regional and glob- al economic strain – driven by Covid-19 and lower oil prices – has not weakened petro- chemical growth. Equally, in such a volatile economic environment, it is good business sense to proactively monitor the timeliness of countries’ recoveries and how this may feed into fund availability for petrochemicals in late-2021 and next year. For example, APICORP expects the real GDP of Saudi Arabia, the region’s biggest economy, to decline by 5.4% in 2020, Oman by 10% and Kuwait by 8.1%. If realised, this would mark Kuwait’s greatest contraction in 41 years. And, while Saudi Arabia projects growth of 3.1% this year, few others in the re- gion can bounce back so quickly. The green issue? How does this rising consumption in pet- rochemicals and plastics sit amid the in- creasingly vocal and global ‘war on plastics’ narrative? And, Middle Eastern nations’ commitment to a greener future, as per the Paris Agreement? The reality is that these two camps – pet- rochemicals and sustainability – clash rather a lot. But, petrochemicals remain a much- needed market, from the plastics that en- abled the mass vaccinations against Covid-19 to the lubrication that supports billions of vehicles worldwide. Accordingly, all stakeholders must work hard to create synergies, with the growth of circular methods being one route. Progress is being made in Saudi Arabia, for example with SABIC, a global leader in the chemical industry, announcing in April this year that it is launching a new recycled material made from ocean-bound plastics that have been re- covered from ocean-feeding waterways and inland areas. That such innovative and scal- able steps are being taken in a nation histori- cally renowned for black gold speaks volumes about the cultural shift taking place ‘on the ground’ in the Middle East. Petrochemicals are undeniably a valuable asset. But better managing the environmen- tal impact of the market will create invalu- able and big green ticks for its reputational strength and longevity – both key selling points for investors. How does this rising consumption in petrochemicals and plastics sit amid the increasingly vocal and global ‘war on plastics’ narrative, asks Badar Chaudhry, senior vice president, sector head – energy, Mashreq Bank Growth of petrochemicals is one to watch Badar Chaudhry, senior vice president, sector head – energy, Mashreq Bank. 20 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com Comment“Cutting methane is the strongest lever we have to slow climate change over the next 25 years and complements necessary eff orts to reduce carbon dioxide. The benefi ts to society, economies, and the environmental are numerous and far outweigh the cost.” Inger Andersen, executive director, UNEP T he Global Methane Assessment out- lines the benefi ts of mitigating methane, a key ingredient in smog, which include preventing some 260,000 premature deaths and 775,000 asth- ma-related hospital visits annually, as well as 25 million tonnes in crop losses. The study is the work of the Climate and Clean Air Coalition (CCAC), a global part- nership of governments and non-State partners, and the UN Environment Pro- gramme (UNEP). Strongest lever “Cutting methane is the strongest lever we have to slow climate change over the next 25 years and complements necessary eff orts to reduce carbon dioxide. The benefi ts to society, economies, and the environmental are numer- ous and far outweigh the cost,” said Inger An- dersen, the UNEP executive director. Methane is an extremely powerful green- house gas, responsible for around 30% of warming since the pre-industrial era. Most human-caused methane emissions come from three sectors: fossil fuels, such as oil and gas processing; landfi lls and waste; and agriculture, chiefl y related to livestock. Emissions ever increasing The report underscores why international action is urgently needed as human-caused methane emissions are increasing faster than at any time since record keeping began in the 1980s. Even with the Covid-19 pandemic causing an economic slowdown in 2020, which prevented another record year for carbon dioxide (CO2) emissions, data from the United States Nation- al Oceanic and Atmospheric Administration (NOAA) shows the amount of methane in the at mo s p he r e reached record levels last year. The good news Ho w e v e r , unlike CO2, which stays in the atmo- sphere for centuries, methane breaks down quickly and most is gone after a decade, mean- ing action can rapidly reduce the rate of global warming in the near-term. Methane accounts for nearly one-fi fth of global greenhouse gas emissions, according to Rick Duke, senior advisor to John Kerry, the US Special Presidential Envoy on Cli- mate Change. “The United States is committed to driving down methane emissions both at home and globally, through measures like research and development, standards to control fossil and landfi ll methane, and incentives to address agricultural meth- ane,” Duke said. Solutions readily available The assessment identifi es readily available solutions that would reduce methane emis- sions by 30% by 2030, mainly in the fossil fuel sector. Most, or around 60%, are low cost and half have ‘negative costs’, meaning com- panies will make money from taking action. So-called ‘mitigation potential’ varies be- tween countries and regions, according to the report. For example, whereas the largest potential in Europe and India is in the waste sector, in China, it is from coal production and livestock, while in Africa it is from live- stock followed by oil and gas. “But, targeted measures alone are not enough,” the partners warned. “Additional measures that do not specifi cally target meth- ane, like a shift to renewable energy, residen- tial and commercial energy effi ciency, and a reduction in food loss and waste, can reduce methane emissions by a further 15% by 2030.” Dr Drew Shindell, a professor of climate science at Duke University in the USA, who chaired the assessment for the CCAC, said urgent steps must be taken to reduce meth- ane emissions this decade. “To achieve global climate goals, we must reduce methane emissions while also ur- gently reducing carbon dioxide emissions,” Dr Shindell said. “The good news is that most of the required actions bring not only climate benefi ts but also health and fi nan- cial benefi ts, and all the technology needed is already available.” Methane emissions caused by human activity can be reduced by up to 45% this decade, thus helping to keep global temperature rise to 1.5 degrees Celsius in line with the Paris Agreement on climate change, according to a UN-backed report published recently UN-backed study: Cut methane emissions to avert global temperature rise National governments are the main drivers of change to reduce harmful emissions. (Image courtesy: Unsplash/ Daniel Moqvist) 21 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com ResearchA rab Petroleum Investments Corporation (APICORP), a multilateral development fi - nancial institution, estimates in its MENA Energy Invest- ment Outlook 2021-2025, which it launched recently, that overall planned and committed investments in the MENA region will exceed $805bn over the next fi ve years (2021-2025) – a $13bn increase from the $792bn estimate in last year’s fi ve-year outlook. The report attributes this modest rise to four factors: a strong confi dence in the re- bound of global GDP, rising energy demand, the comeback of Libyan projects – which alone accounts for around $10bn in planned projects – and the accelerated pace of renew- ables in the region. According to current esti- mates, MENA will add 3GW of installed solar power capacity in 2021 alone – double that of 2020 – and 20GW over the next fi ve years. The region’s economic forecasts suggest that commodity prices and exports will drive the rebound expected for most MENA coun- tries in 2021. However, economies remain un- der fi scal strains due to unprecedented high debt levels and decline in oil prices, tourism/ Hajj revenues, and personal remittances. Dr. Ahmed Ali Attiga, chief executive of- fi cer of APICORP, said: “APICORP’s MENA En- ergy Investment Outlook 2021-2025 indicates that energy industries are entering a period of relative stability in terms of investments as most MENA countries return to GDP growth in 2021 and the energy transition showing no signs of slowing down. We anticipate a slow but steady recovery of the energy sector from the fallout of the Covid-19 pandemic, supported by continued investment from the public sector and an upswing in demand.” Gas investments Committed gas investments in MENA for the period 2021-2025 are expected to total $75bn-$9.5bn less than the previous outlook. The decline is attributed to the completion of several mega- projects in 2020 and countries being more cautious to new project commitments in an era of gas overcapacity. Qatar, Saudi Arabia, and Iraq are the top three MENA countries in terms of commit- ted gas investments. This is owed to Qatar’s North Field East megaproject, Saudi Arabia’s gas- to-power drive and the massive Jafurah unconventional gas development – which is poised to make the kingdom a global blue hydrogen exporter – and Iraq’s gas-to-power projects and determination to cut fl aring and greenhouse gas emissions. Planned investments mean- while held relatively steady at $133bn for 2021-2025, signalling the region’s appetite for resum- ing its natural gas capacity build-up – particu- larly the ambitious unconventional gas de- velopments in Saudi Arabia, UAE, Oman, and Algeria – once macro conditions improve. Power investments Power investments in MENA for 2021-25 remain largely unaff ected compared to APICORP’s 2020-24 outlook. Notably, the sector’s total investment amount of $250bn is the highest of all energy sectors – with an estimated $93bn and $157bn in committed and planned projects, respectively, over the next fi ve years. With a share of around 40%, renewables form a signifi cant part of those investments as countries push ahead with their energy diversifi cation agendas. In the GCC, Saudi Arabia’s Renewable Energy Project Develop- ment Offi ce and Public Investment Fund projects continue to progress. North African countries are also showing measurable development in renewables realm, with Algeria establishing an indepen- dent authority to oversee the development of country’s strong pipeline of projects, and Egypt working to resolve regulatory issues related to its wheeling scheme and the un- bundling of its power market. This shift to renewables is a chief factor behind the rising share of investments in transmission and distribution (T&D) in the power sector value chain, as the integration of renewables into power grids requires sig- nifi cant investments to enhance and digitise grid connectivity, not to mention storage to accommodate the surplus power capacity they generate. Petrochemical investments Planned investments in the MENA petro- chemicals sector are forecast to increase to $109bn in 2021-2025, a $14.2bn jump APICORP outlook: Planned investments in the MENA petrochemicals sector are forecast to increase to $109bn in 2021-2025 MENA Energy Investment Outlook 2021-2025, which APICORP launched recently, estimates that overall planned and committed investments in the MENA region will exceed $805bn over the next fi ve years (2021-2025) MENA can emerge as a major blue and green hydrogen-export- ing region thanks to low-cost gas resources and strong renew- able energy progress, according to APICORP’s MENA Energy Investment Outlook 2021-2025. 22 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com Industry Outlookcompanies were disclosed in September the following year. Overall, the country aims to reach 10GW of solar power generation capac- ity by 2030 and generate 20% of its power from solar. Developing energy storage is key The expanding share of renewables, growth in power demand, and balancing supply and demand on a real-time basis necessitates the integration of modern, digitalised energy stor- age solutions. Despite its signifi cant potential in this area, the MENA region suff ers from the limited role of storage in networks. To over- come this, regulations will need to evolve to refl ect energy storage’s current functions, in- cluding leveraging fl exibility from consumer aggregation, or grid congestion. The hydrogen and ammonia race MENA is also a strong candidate for becoming a major hydrogen-exporting region thanks to its combination of low-cost gas resources and renewable energy. A few countries, such as Saudi Arabia and Morocco, have already made headways as low-cost exporters of blue and green hydrogen, net-zero ammonia and other low-carbon products, while other countries, such as Oman, UAE, and Egypt are attempting to catch up. compared to last year’s outlook. By contrast, committed investments dipped by $7.7bn to around $12.5bn due to the completion of several megaprojects in 2020. Despite MENA petrochemical markets seeing an overall improvement in demand owed to the increased consumption of basic materials as vaccination drives continue and economies recover, some MENA committed petrochemical investments are nonetheless being re-evaluated and rationalised due to fi scal strains, capital discipline and cost ef- fi ciencies and evolving market dynamics. Renewables investments As a whole, the MENA region expects to add an estimated 3GW of solar power in 2021 – doubling its total from 2020 – and almost 20GW by 2025. Wind and other sources such as hydropower are also coming into their own as countries step up their energy diversi- fi cation plans. Jordan, for example, managed to increase the percentage of power generated from renewables from just 1% in 2012 to around 20%. Morocco’s 4GW of renewables (wind, solar and hydro) constitute around 37% the country’s total generation mix and almost 90% of its current 3.5GW project pipeline. Egypt’s total installed renewables capacity amounts to around 2.3GW, including 1GW of solar PV and 1.3 GW of onshore wind. In the UAE, renewables constituted around 6% of total installed capacity and 3% of power generated as of 2020. Although it may just miss its short-term targets, the UAE’s solar capacity is projected to grow the fastest in the region with nearly 5GW of solar projects in the pipeline. In Saudi Arabia, only 330MW of utility- scale solar PV projects and just one 2.5MW wind demonstration project developed jointly by were operational as of 2020. Even when combined with the tenders under its National Renewable Energy Program, the total renewables capacity of the kingdom totals 3.3GW, around 24GW short of its stated target of 27.3GW by 2024. Despite ongoing procurement of largescale utility projects, Oman is also far from achiev- ing its short-term target of generating 10% of its power from renewables by 2025, with a single 105MW utility solar PV project and a 50MW onshore wind project commissioned over the past two years. As for Iraq, the fi rst solar bid round for projects totalling 755MW capacity was an- nounced in May 2019 and bids of short-listed “APICORP’s MENA Energy Investment Outlook 2021-2025 indicates that energy industries are entering a period of relative stability in terms of investments as most MENA countries return to GDP growth in 2021 and the energy transition showing no signs of slowing down. We anticipate a slow but steady recovery of the energy sector from the fallout of the Covid-19 pandemic, supported by continued investment from the public sector and an upswing in demand.” Dr. Ahmed Ali Attiga, chief executive offi cer of APICORP Graph courtesy: APICORP’s MENA Energy Investment Outlook 2021-2025. 23 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com Industry OutlookT he chemical sector has a long-lasting and increasing demand for carbon that is em- bedded in its products. Today, 450 million tonnes of carbon are contained in chemicals and polymers, mostly sourced from fossil resources. The free report ‘Turning off the Tap for Fossil Car- bon’, shows how the demand is met today and could be covered by renewable carbon in the year 2050. In this new report, conducted by nova- Institute and commissioned by Unilever, the total carbon embedded in products from the chemical and derived material sector is examined on a global scale. This includes product groups like plastics, rub- bers, textile fi bres, detergents and personal care solutions. For the fi rst time ever, the total global amount of embedded carbon is calculated, visualised and connected to the diff erent feedstocks. Furthermore, end-user applications are investigated and depicted. The authors present a 2050 scenario is introduced that outlines prospects to transition from fossil to renewable carbon sources. Moreover, solutions for the highly interconnected chemical industry are illustrated together with supporting policy measures. The report aims to raise awareness of the need for, and the technical, industrial and political feasibility of, the biggest transforma- tion of the chemical and derived material sector since the industrial revolution. Climate protection requires considerable efforts from the chemical and derived material sector The climate crisis is accelerating at an unprecedented rate, with global warming, greenhouse gas emissions and deforesta- tion causing food insecurity, global health concerns and biodiversity loss. Greenhouse gas emissions linked to the use of fossil-based energy sources such as oil, coal and natural gas are the main factors contributing to climate change. It has become evident that we can no longer ignore the consequences that our current production methods have on the planet. To decarbonise the energy sector by 2050, and ensure the achievement of the goals set out under the Paris agreement, it is essential for the industry to completely phase out its use of fossil fuels. But, is that enough? Does it solve the climate problem? The recently published report provides an analysis of the CO2 emissions that originate How to meet the global need for carbon as a feedstock in the chemical and derived materials sector in the future? Contrary to energy, it is not possible to decarbonise chemicals and products Current global demand for carbon embedded in organic chemicals and derived materials by type of carbon feedstock. Source: nova-Institut GmbH 24 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com Studyfrom the carbon embedded in commonly used products and commodities. It also shows how the chemical and material sec- tors can enact systems change to reduce their environmental footprints. At the Institute for Ecology and Innovation end of their lifecycle, today, most of the embedded carbon ends up in the atmosphere in the form of CO2. Chemicals and derived materials still strongly depend on fossil carbon Products from the chemical and derived material sector surround us in manifold ways. For the first time, the amount of car- bon contained in these products (embed- ded carbon) has been calculated. Of the annual demand of 450 million tonnes (Mt) per year, 85 % is generated by fossil-fuel- based resources, 10% by biomass and only 5% by recycling. To create long-lasting and sustainable change, three sources of renewable carbon can substitute the utili- sation of fossil carbon: biomass, recycling, and CCU (Carbon Capture and Utilisation; captured CO2 from industrial processes, or the atmosphere). The demand for embedded carbon is set to rise. Increasing population, higher incomes and a growing middle class will drive the need for products and thus also for carbon. By 2050, nova Institute estimates that the demand for carbon embedded in organic chemicals and derived materials will increase to 1,000Mt per year. To achieve this demand sustainably, sharing, reusing and recycling play the main role in keeping carbon in a closed loop, in line with the circular economy. Chemical and mechanical recycling industries will be largely responsible for innovating their pro- cesses to better reuse and recycle carbon. Since keeping the entire carbon in a cycle is technologically not possible, additional renewable carbon sources such as biomass and CO2 capture and use become necessary. For both options, suffi cient land is available for either cultivation of biomass or the produc- tion of the required renewable energy for CCU. With these three renewable carbon sources (recycling, biomass and CCU) combined, it will be possible to keep using all the products we are used to without the need for any additional fossil carbon sourced from under the ground. Renewable carbon for chemicals and derived materials Contrary to energy, it is not possible to decar- bonise chemicals and products. The renew- able carbon family is the only pathway to a sustainable future for commonly used mate- rials such as plastics, fi bres, surfactants and other materials based on organic chemistry, and the industries that produce them. The exclusive use of renewable carbon as feedstock is a key con- dition for the chemical industry to achieve climate neutrality. To achieve this, a comprehensive policy framework for carbon management is discussed, which is necessary to realise the revolution- ary transformation of the chemical industry, within a timeline that is in accordance with our climate targets. To cover the demand of the chemical and derived material sector, renewable car- bon production will have to be increased by a factor of 15 by 2050. This highly laborious task will require cross-sector collaboration: industry, governments and consumers. Scenario for the future global demand of embedded carbon for chemicals and derived materials in 2050. Source: nova-Institut GmbH 25 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com StudyZeopore zeolite powder. T he worldwide production of metha- nol is on a long-term rise. Catalyst innovations on the level of zeolite mesoporisation enable Zeopore to signifi cantly boost the economies of meth- anol-to-olefi ns conversion. Zeopore’s mes- oporisation technology applied to an off - the-shelf ZSM-5 zeolite enables porosity and acidity tuning as well as in-situ metal additive inclusion and a higher dispersion. Besides the expected catalyst lifetime mul- tiplication, the tests by Zeopore show strong- ly increased propylene and olefi n selectivity in a single pass, increasing productivity 15% to 25%, depending on process conditions. The growing market of methanol-to-propylene and other olefi ns The amount of methanol produced yearly is projected to grow 5% annually over the foreseeable future. Methanol production reduces CO2 emissions and largely results from the conversion of syngas, gained from both fossil and renewable sources, or from biomass fermentation. About 20% of the acquired methanol is converted further into olefi ns, mainly pro- pylene, for plastics production. This meth- anol-to-olefi ns conversion is looking at a staggering growth of 30% over the next fi ve years, even including Covid-19 impact, and is the fastest growing segment of methanol consumption. Producers, driven by varying methanol and propylene prices, seek to fur- ther secure and increase their profi tability, mainly through enhanced olefi n selectivity and reduced operational costs. Zeolite mesoporisation excellence pushes process impact Apart from their favourable intrinsic properties (e.g., acidity, crystallinity, sta- bility), zeolite catalysts used today suffer from a narrow micropore structure. This Zeopore targets global leadership in developing and commercialising mesoporous zeolite catalysts for refi ning, petrochemistry, biomass conversion and plastics recycling Catalyst innovation yields 20% profi tability increase in the growing worldwide methanol-to-olefi ns market 26 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com Commercial ViabilityZeopore process. Zeopore selectivity boost. Zeopore catalyst lifetime multiplication. (Graph courtesy: ‘Mesopore quality determines the lifetime of hierarchically structured zeolite catalysts’, by Maria Milina, et al., published in Nature Communications, on 27 May 2014.) and a confirmed lower production of coke precursors, the lifetime of a mesoporised zeolite catalyst is expected to be more than tripled. Boosting methanol-to- propylene profi tability For average market prices of methanol and propylene, the benefi ts as described earlier would lead to approximately 20% higher profi tability for a standard methanol-to- propylene production plant. Boosting the economic viability of this interesting syn- gas-to-olefi ns pathway is made possible through Zeopore’s advanced mesoporisa- tion technology in refi ning and petrochem- istry, and more specifi cally in the metha- nol-to-propylene conversion. provokes access and diffusion limita- tions, resulting in only a minor part of the surface area of zeolites being efficiently utilised. Zeopore adds a secondary level of larger mesopores to conventional zeo- lites to increase their catalytic efficiency by improving access to the active sites lo- cated in the zeolites’ micropores. By meticulously tuning the porosity and other zeolitic properties, Zeopore is able to steer the selectivity towards desired frac- tions and improve the stability of the cata- lyst for each individual process. The know- how and technologies of Zeopore allow for coupling the benefi ts of high-quality acces- sible zeolites with a low-cost and tuneable manufacturing process. Many zeolite catalysts involve a metal function to yield the optimal catalytic per- formance, in reactions such as methanol conversion but also hydrocracking, dewax- ing and even FCC. Zeopore has developed patented methods to include the deposition of key metals during the mesoporisation process, yielding unprecedented metal dis- persions, enable unsurpassed metal load- ings, and reducing the overall cost of intro- ducing the metal function. Unique added value in methanol-to-propylene Concretely, Zeopore used its versatile tool- box to demonstrate the added value in the methanol-to-propylene process on a ZSM- 5 zeolite. Zeopore executed extensive tests under industrially relevant process condi- tions on a laboratory-scale testing unit. Unique boost in propylene and ole- fi n selectivity: Zeopore’s optimisation of a conventional ZSM-5 zeolite resulted in a remarkable 15% to 25% higher propyl- ene selectivity. As a result, the propylene/ ethylene and olefin/paraffin ratio’s both nearly doubled. Catalyst lifetime expected to be tri- pled: The test programme did not include lifetime extension assessment. Yet, based on earlier testing experiences of Zeopore, 27 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com Commercial Viability28 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com Circular Economy More than 120 companies and organisations join forces to assess the contribution of a pioneering digital wa- termark technology to better high-quality recycling The new product is playing into Beiersdorf’s ambitious Sustainable Packaging Targets 2025 to reduce fossil-based, virgin plastic for its cosmetic packaging products by 50% BASF joins digital watermark initiative ‘HolyGrail 2.0’ for smart packaging recycling Beiersdorf selects SABIC certifi ed renewable polypropylene for new NIVEA packaging BASF has joined ‘HolyGrail 2.0 – Digital watermarks for accurate sorting and high-quality recycling’, as a member. The new sustainable NIVEA jars pay into the Sustainability Agenda CARE BEYOND SKIN, by which the com- pany is targeting a signifi cant reduction of its carbon emissions and environmental footprint. BASF has joined ‘HolyGrail 2.0 – Digital watermarks for accurate sorting and high- quality recycling’ as a member. The initia- tive aims to increase plastic recycling rates by adding imperceptible digital water- marks to product packaging. Under the auspices of AIM, the European Brands Association, BASF and more than 120 companies and organisations from the packaging value chain have joined forces in the initiative to prove the viability of digi- tal watermarking technologies for accurate sorting and the business case at large scale. Ineff ective sorting is one of the fun- damental barriers to wider recycling of lightweight packaging waste and thus in achieving a circular economy for packag- ing. The better the sorting and identifi ca- tion of packaging, the more effi cient the SABIC announced that Beiersdorf will in- novate the packaging of its world-leading ‘NIVEA Naturally Good’ range of face creams using SABIC’s certifi ed renewable polymers. SABIC’s bio-based polypropylene (PP) resin, part of its TRUCIRCLE portfolio, will be used for producing the jars of Beiersdorf’s NIVEA Naturally Good day and night face creams. The new NIVEA packaging will be phased in at point-of-sale outlets worldwide from June 2021 onwards and make a major contribution to help Beiersdorf reduce its use of fossil-based virgin PP. The new product is playing into Beiers- dorf’s ambitious Sustainable Packaging Targets 2025 to reduce fossil-based, virgin plastic for its cosmetic packaging products by 50%. The new sustainable NIVEA jars pay into the Sustainability Agenda CARE BEYOND SKIN, by which the company is targeting a signifi cant reduction of its carbon emissions and environmental footprint. The agenda has set three major pack- aging goals to be achieved by 2025 mechanical recy- cling process and the better the quality of recyclates. The discovery of digital water- marking was made under the New Plastics Economy programme of the Ellen MacArthur Foundation, which investigated diff er- ent innovations to improve post-con- sumer recycling. Digital watermarks were found to be the most promising technology. The ‘HolyGrail 2.0’ initiative will include the launch of an industrial pilot to prove as compared to 2019: make all of the group’s packaging 100% refillable, reus- able, or recyclable; increase the share the viability of digital watermark technolo- gies for more accurate sorting of packaging and higher-quality recycling, as well as the business case at large scale. of recycled materials in plastic packag- ing to 30%; and reduce the use of fossil- based virgin plastics by 50%.29 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com Circular Economy Advanced recycling enables conversion of waste plastic back to new, high-quality polymers, used to produce the Lactel bottles For this collaboration, Neste, a forerunner in producing renewable and recycled feedstock alternatives for the plastics and chemicals industry, will produce its Neste RE feedstock entirely from renewable raw materials, such as bio-based waste and residue oils, without any fossil oil INEOS, Lactel partner to produce the world’s fi rst HDPE milk bottles from advanced recycling Neste, Mitsui Chemicals, Toyota Tsusho collaborate to start Japan’s fi rst production of renewable plastics from 100% bio-based hydrocarbons Lactel is the fi rst dairy brand, in collaboration with INEOS, to explore a solution for UHT milk bottles produced with circular polyethylene, derived from post-consumer recycled material. INEOS O&P EUROPE is making a signifi cant investment to develop a comprehensive portfolio of circu- lar solutions for the packaging in- dustry. The collaboration with Lac- tel is yet another major milestone in this direction. Advanced recycling technology converts waste plastic back to its ba- sic molecules, which are then used in INEOS production sites to include recycled contents and replace tradi- tional fossil-based raw materials. Lactel is the fi rst dairy brand, in collaboration with INEOS, to explore a solution for UHT milk bottles produced with circular polyethylene, derived from post- consumer recycled material. “This trial production of 140,000 milk bottles, based on HDPE from advanced Neste, Mitsui Chemicals, Inc. and Toy- ota Tsusho Corp. announced that they are joining forces to enable Japan’s first industrial-scale production of renewable plastics and chemicals from 100% bio- based hydrocarbons. In this collaboration, Mitsui Chemicals will use Neste RE, 100% bio-based hydro- carbons produced by Neste, to replace a part of the fossil feedstock in the production of a variety of plastics and chemicals at its crack- ers within Osaka Works during 2021. In do- ing so, Mitsui Chemicals will become Japan’s fi rst company to use bio-based feedstock in its crackers. The collaboration between Neste, Mitsui Chemicals and Toyota Tsusho will enable brand owners and other potential clients in the Asian market, particularly in Japan, to start incorporating renewable plastics and chemicals into their products and off erings. For this collaboration, Neste, a forerunner in producing renewable and recycled feed- stock alternatives for the plastics and chemi- cals industry, will produce its Neste RE feed- stock entirely from renewable raw materials, such as bio-based waste and residue oils, without any fossil oil. By using Neste RE, Mitsui Chemicals is able to produce plastics and chemicals with signifi cantly reduced greenhouse gas emis- sions over their life cycle – spanning from the raw materials stage all the way through to product disposal – when compared to products made using fossil feedstock, such as petroleum naphtha. recycling technology, is a world fi rst and a major step forward for Lactel towards a circular economy”. “This new innovative product will be used in the Montauban production plant for an initial production run. At Lactel we are extremely excited to bring this new environmental innovation to our iconic milk bottles,” explains Anne Charles-Pinault, General Manager, Lactel France. After an independent cer- tification process, initiated several months ago, Lactel’s Montauban plant has been successfully RSB certified this April 2021. The milk bottles produced in this way are com- pliant with food safety regulations and are fully recyclable. Hirahara Akio, managing executive offi cer for corporate sustainability at Mitsui Chemicals.Next >