| WTI Crude | $40.17/bbl | +4.9% |
| Brent Crude | $41.23/bbl | +4.3% |
| HH Nat Gas | $2.06/MMBtu | -5.9% |
| MB Propane | $0.51/gal | +3.6% |
| 3:2:1 Crack | $9.75/bbl | +0.2% |
Battery materials refinery to be built in New York
Canadian-based battery recycling start-up, Li-Cycle, has announced that it will be building a $175 million battery materials refinery in Rochester, New York.
What are they doing exactly?
Li-Cycle's growth plan involves building many decentralized "spokes" to feed its centralized "hubs". At the spoke sites, the used lithium-ion batteries are shredded from an electrically charged (and dangerous) state into an inert product. Those shredded batteries are then sent to a regional hub for hydrometallurgical processing (to refine the shredded material into pure lithium, copper, nickel, manganese, and cobalt). The site being built will be Li-Cycle's very first hub.
Zooming out:
Just last week we saw Solvay getting in on battery recycling as well. While companies like Albemarle are working to produce lithium and battery materials from mining, we're now seeing other companies look to recycling as a way to produce those raw materials.
Read the press release here.
Dow Chemical cashes out on its marine and terminal assets
Headquartered in Michigan, global corporation Dow Chemical has announced the divestment of US Gulf Coast marine and terminal operations for $620 million. The sites are being sold to Royal Vopak and investment firm BlackRock.
Why are they selling?
Back in July, Dow announced its cost-cutting plans to get through the pandemic, and part of that meant evaluating the ownership of its non-revenue generating assets. While ownership of those assets has historically allowed Dow some cost advantages, they have already signed long-term service agreements with the terminal's new owners ensuring similar benefits.
Bigger picture:
Aside from cost-cutting, Dow's CEO said the sale will enable them to "deploy cash towards value-enhancing opportunities in our core businesses". Those businesses being commodity petrochemicals and plastics. A couple months ago Dow sold off its rail assets in a very similar fashion for the same purpose.
Read the press release here.
Neste is full-speed ahead on energy transition
Finland-based oil refiner (and largest producer of renewable diesel), Neste, has announced that it will begin restructuring its Finnish refining operations.
What are they planning on doing?
Neste is looking at halting production at one of its refineries (but to keep using it as a harbor and distribution terminal) and upgrading another one of its refineries so that it is capable of producing renewable diesel. The changes could lead to up to 470 redundant jobs and cost savings of close to $60 million.
Why are they doing this?
Neste's CEO said, "The energy transition is proceeding faster than expected. The forthcoming operating and maintenance investments in the Naantali refinery are not viable nor sustainable in a situation where there is large over-capacity for oil refining globally.". In short, Neste does not believe that oil prices will ever recover to previous levels.
Read more here on Oil & Gas Journal.