Finnish refiner and the world's largest producer of renewable diesel, Neste, has announced that 3 major airlines have begun using its sustainable aviation fuel (SAF). American Airlines, JetBlue, and Alaska Airlines have all received their first shipments over the last few weeks.

The details:

Neste is now successfully delivering its SAF via retrofitted oil pipelines directly into San Franciso International Airport. While Neste's SAF can be used as a drop-in fuel with existing aircraft engines and infrastructure, it's often blended with conventional kerosene prior use so that it meets ASTM jet fuel specifications (discussed last week about Repsol's biofuel).

Some context:

Biofuels are currently the only viable method of reducing emissions associated with aviation (batteries are heavy). As airlines look for ways to become more sustainable they are working with refiners capable of helping them reach their climate-related goals. Recent announcements from Phillips 66, Exxon, and Repsol are certainly making this trend look like it's here to stay.

Read the press release here.

Chinese oil and petrochemical corporation, Sinopec, has reportedly integrated two of their refinery and petrochemical complexes in China's top oil-consuming region. The combined plants can now process a total of 300,000 barrels-per-day (bpd) of crude oil, and together they enable the construction of a new 800,000 ton per year ethylene unit.

Why integrate the plants?

According to a Sinopec official, "It’s part of Sinopec’s strategy to form regional refining hubs so to be more integrated into feedstock supply and crude oil purchases,". The integrated plant should be able to compete with its main rival, PetroChina, and its new 400,000 bpd refinery in South China.

Why should you care?

One of the refineries being merged by Sinopec is China's leading processor of the US's WTI crude oil. WTI crude is on the sweeter side of the spectrum (aka low sulfur content), and generally produces a high yield of naptha. That naptha that will play an important role in the new ethylene unit. In short, the merging of these sites indicates long term growth for the export of WTI crude from the US.

Read more here on Reuters.

German specialty chemicals company, Lanxess, has announced the sale of its leather chemicals business for $136 million to a portfolio company of a US-based investment firm called TFL Ledertechnik GmbH (TFL). The transaction is expected to close sometime in mid-2021.

What are they selling?

Leather chemicals are used by tanneries throughout each stage of leather production. If you're interested you can get an overview of how leather is made here.

Why are they selling?

The Chairman of the Board at Lanxess said in a statement that they are "making Lanxess somewhat more independent from the automotive industry, a key target industry for leather products.". As for why TFL was interested in buying, the Chairman said that the acquiring company "will open up new growth and development prospects for the business and will thus significantly strengthen it".

Read the press release here.