
| WTI Crude | $60.93/bbl | -0.3% |
| Brent Crude | $63.77/bbl | +0.1% |
| HH Nat Gas | $2.52/MMBtu | -1.6% |
| MB Propane | $0.90/gal | +0.0% |
| 3:2:1 Crack | $16.00/bbl | -6.4% |
Chemical companies, BASF and SABIC, and industrial gases company, Linde, have announced that they will be jointly developing the world's first electrically heated steam cracker furnace.
The background you need:
Steam crackers are at the foundation of the petrochemical industry. The enormous units produce nearly all of the olefins and aromatics that our world demands. But the energy-intensive process is heated primarily by the combustion of natural gas—a process responsible for about half of petrochemical emissions. With increasing pressure to reduce emissions, companies have been searching for ways to power these crackers with renewables by electrifying the furnaces (like the heating element in your oven).
Why this time is different:
This isn't the first partnership with the goal of developing a greener cracking technology (these companies have partnered before and so have Dow and Shell). But this time the companies are evaluating a "multi-megawatt demonstration plant at BASF’s Ludwigshafen site" with the hope of starting-up sometime in 2023 (so long as they get the funding they need).
Read the press release here.
Chemical recycling start-up, Plastic Energy, and US-based petroleum company, ExxonMobil, have announced plans to build a chemical recycling plant next to ExxonMobil's petrochemical complex in France.
Some context:
In the past, Exxon hasn't been the most vocal about its chemical recycling efforts (compared to some of its peers). But recently we've seen the company get in on a joint venture with Agilyx and successfully completed a trial using a pyrolysis oil made from plastic waste. We've seen Plastic Energy announce nearly identical partnerships with SABIC and Total in the past as well.
So, what's next?
The companies are planning to build a plant capable of consuming about 30,000 tons per year of plastic waste. While that figure is small relative to the 7 billion tons not recycled each year, you have to start somewhere. The companies aim to make a final investment decision this year (with a little financial help from the French government) and start-up the site in 2023.
Read the press release here.
German specialty chemical company, Evonik, has completed its sodium methylate expansion at its site in Mobile, Alabama.
Why the expansion?
While sodium methylate has plenty of different uses, it's the molecule's ability to catalyze the transesterification of vegetable oils and animal fats that led Evonik to expand its production (translation: we use it to make biodiesel). Recently, we've seen Phillips 66 and Marathon Petroleum announce plans to increase their biodiesel capacity. As we make more biodiesel we'll need more sodium methylate—unless you're making renewable diesel like Valero.
The details:
Evonik's plant can now produce nearly 100,000 tons of sodium methylate each year by reacting methanol with sodium. The company hopes "to strengthen its position serving the performance chemicals and life science markets" in addition to that demand for biodiesel.
Read the press release here.

Today's MOTD is a personal favorite… propylene.
This molecule rose to fame shortly after two scientists at the Phillips Petroleum Company discovered that propylene can be used to make a valuable white solid in 1951. Over the course of the next few decades the demand for polypropylene (PP) made its monomer the second most popular olefin globally.
Today, the world produces over 110 million tons of the stuff each year. About 75% of it is made with steam crackers and FCC, and over two-thirds of it is used to make PP. The rest of that propylene is useful as well—7% of it becomes PO, 7% oxo alcohols, 6% acrylonitrile, 4% acrylic acid, and 4% cumene (more details can be found here).
The main companies producing all this propylene include SABIC, Dow Chemical, , and basically any other company with a steam cracker or two.