| WTI Crude | $36.90/bbl | -4.2% |
| Brent Crude | $38.00/bbl | -4.4% |
| HH Nat Gas | $1.41/MMBtu | -11.9% |
| MB Propane | $0.49/gal | -0.8% |
| 3:2:1 Crack | $10.94/bbl | +2.9% |
Covestro acquires a $1.9B of businesses from DSM
Bayer chemicals and material spin-off, Covestro, has announced that it has acquired the DSM's Resins & Functional Materials (RFM) businesses for $1.9 billion.
Why did they do that?
The deal aligns with both of the companies' long-term strategic plans. This divestment makes DSM completely focused on the nutrition and health fields (think vitamins, enzymes, yeast extracts, and flavorings). For Covestro the deal aligns with its "long-term corporate strategy to strengthen its sustainable and innovation-driven businesses".
Anything else?
DSM will use the cash from the sale to grow its core businesses, but no plans have been announced for that quite yet. Covestro was attracted to the deal because it will allow them to enter some high-growth markets going forward. The RFM businesses have customers in solar panels (coatings), 5G networks (optical fiber coatings), and 3D printing (other polymers).
Read the press release here.
Additional private investment to result in a battery recycling plant
Swedish battery manufacturer (and recycler), NorthVolt, has announced that it has secured $600 million in private investments to fund its expansion in Europe.
Background on NorthVolt:
NorthVolt was founded in 2016 when an ex-Tesla supply chain executive left to go build batteries for other electric vehicle manufacturers. The company secured a huge loan from the EU and claims to be cost-advantaged because its "production process spans across many portions of the value chain". This means that NorthVolt isn't just assembling batteries, they are producing most of the raw materials and components in-house.
What is the $600 million for?
The new investment round is aimed at "target of a 25 percent market share in Europe by 2030" with "50 percent of its raw material coming from recycled batteries". To get that done the company is planning the construction of more manufacturing sites and has announced the goal to establish Europe's first facility "capable of recycling lithium in addition to cobalt, nickel, manganese and other metals.".
Read the press release here.
Shell chooses TechnipFMC to help reduce its emissions
A few weeks ago integrated oil major, Shell, announced that they would be reducing emissions from one of its plants by 10% (and we talked about it). Today, Shell has announced that TechnipFMC is going to be the one to get it done.
Why TechnipFMC?
Oil majors like Shell are good at a lot of things, but their expertise is not in the manufacturing and design of cracker furnaces. TechnipFMC has a "multi-lane radiant coil design" that is twice as efficient as the furnaces currently in use. This will allow Shell to reduce the number of furnaces it has from 16 to 8 without reducing the plant's production capacity.
So what's the deal?
TechnipFMC will get this done by 2025 and will do it for somewhere between $75-$250 million. They will be responsible for the "engineering, procurement, and module fabrication (EPF) for proprietary equipment and related services".
Read more here on Oil & Gas Journal.