Plant Watch Top 10 Engineering Projects of February 2023

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Pörner Ingenieurgesellschaft mbH

Technip Energies Head Office

Haldor Topsoe A/S

BRASKEM S/A

Fluor corporation (Headquarters)

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INEOS Köln GmbH

Linde AG München

Merck KGaA

COVESTRO Deutschland AG

ExxonMobil Central Europe Holding GmbH

Glatt Ingenieurtechnik GmbH

EDL Anlagenbau Gesellschaft mbH

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PROCESS Worldwide brings to you the ‘Top 10 plant engineering projects of February 2023’ from all over the world. Right from Europe’s most sustainable cracker securing a funding of 3.5 billion euros to Exxonmobil investing 2-billion-dollars for expanding its Baytown chemical plant in the US, find out all the projects making headlines here.

Linde to Supply Clean Hydrogen to World-Scale Blue Ammonia Project

Feb 07 – Linde has signed a long-term agreement to supply clean hydrogen and other industrial gases to OCI’s new world-scale blue ammonia plant in Beaumont, Texas, USA. Linde will build, own and operate an on-site complex which will include autothermal reforming with carbon capture, plus a large air separation plant.

The new complex will be integrated into Linde’s extensive Gulf Coast industrial gas infrastructure. It will supply clean hydrogen and nitrogen to OCI’s 1.1 million ton per annum blue ammonia plant, the first greenfield blue ammonia facility of this scale to come onstream in the United States. Linde will supply OCI with clean hydrogen by sequestering more than 1.7 million metric tons of carbon dioxide emissions each year.

In addition to supplying OCI, Linde will also use its extensive pipeline network to provide clean hydrogen to existing and new customers in the U.S. Gulf Coast, addressing the increasing demand from companies to decarbonize their operations. The facility will also supply atmospheric and rare gases to existing and new customers. Linde's total investment will be approximately 1.8 billion dollars and the project is expected to start up in 2025.

Merck Breaks Ground for New Specialty Gases, Semiconductor Materials Plant

Feb 09 – Merck has broken ground recently in Kaohsiung, Taiwan, for a new production facility in its Semiconductor Solutions business. The site, which covers an area of 150,000 sq. m, is to produce specialty gases and semiconductor materials for thin film and patterning solutions as of 2025. The site is to be expanded in multiple stages.

This investment is part of the ‘Level Up’ growth program initiated by the Electronics business sector at the end of 2021. By 2025, Electronics intends to invest significantly more than 3 billion euros in innovations and capacity expansion projects, thereby supporting the future success of Semiconductor Solutions, one of Merck’s ‘Big 3’ growth drivers.

“Irrespective of the current turbulent macroeconomic situation, the medium- and long-term, very positive growth prospects of our markets remain unchanged. The further advance of digitalization and the exponential growth of data will continue to lead to sharply increasing demand for electronics. That is why we are investing in our highly attractive growth markets and purposefully expanding production capacities and innovative power in the immediate vicinity of our customers,” said Kai Beckmann, Member of the Executive Board of Merck and CEO Electronics.

The new Semiconductor Solutions Site in Kaohsiung will bring the most innovative semiconductor materials while reducing the carbon footprint generated by simplifying logistics to local and Asian region customers.

Europe’s Most Sustainable Cracker Secures Funding of 3.5 Billion Euros

Feb 16 – Ineos Olefins Belgium has raised 3.5 billion euros to support the construction and operation of the most environmentally sustainable cracker in Europe. This is the largest investment in the European chemical sector for a generation.

The plant will have the lowest carbon footprint in Europe, three times lower than the average European steam cracker, and less than half of the 10 % best performers in Europe. The plant also has the capability of operating entirely with low carbon hydrogen as well as has room for a carbon capture facility and future electric furnaces.

Jason Meers, CFO Ineos Project One says, “Project One is a game changer for Europe. It will bring new opportunities to the chemical cluster in Antwerp as well as strengthen the resilience of the whole European chemical sector”.

The cracker will produce ethylene, which is a vital raw material for a wide range of products essential to our daily lives, from insulation, to lightweight vehicles, plastics for medical, healthcare and food hygiene, as well as technology for renewable energy.

World’s Largest Low Carbon Hydrogen Facility to Use Topsoe Technology

Feb 16 – Topsoe and Exxonmobil have signed an agreement under which Topsoe will deliver its industry leading hydrogen Syncor technology to Exxonmobil’s planned low carbon hydrogen production facility in Baytown, Texas. Exxonmobil’s low-carbon hydrogen, ammonia, and carbon capture facility is expected to generate up to 1 billion cubic feet of hydrogen per day, delivering low-carbon fuel to the Baytown olefins plant and other Houston-area facilities. Replacing natural gas with hydrogen at the Baytown olefins plant could reduce the integrated complex’s CO2 emissions by up to 30 %.

Elena Scaltritti, Chief Commercial Officer, Topsoe, said: “Once complete, this ambitious project will result in hydrogen that can be used for low-carbon fuels and chemicals to help meet global net zero targets. We are eager to start working with Exxonmobil and to enable the capturing of massive volumes of CO2 emissions from the hydrogen production.”

Dan Ammann, president of Exxonmobil Low Carbon Solutions, said: “The scale of this project is expected to enable up to a 30 % reduction in Scope 1 and 2 emissions from our Baytown facility by switching from natural gas as a fuel source to low-carbon hydrogen.”

Technip Energies Secures Feed Contract for World’s First Commercial Efuels Facility

Feb 21 – Technip Energies has been awarded a Front-End Engineering and Design (Feed) contract by Arcadia efuels for the world’s first commercial efuels facility for sustainable aviation fuels production in Vordingborg, Denmark. Pre-Feed and early works recently concluded, and parties aim to support plant startup in 2026. Arcadia efuels will use renewable electricity, water, and biogenic carbon dioxide to produce efuels that can be used in traditional engines and supplied to the market in existing liquid fuel infrastructures.

The feed covers the engineering of the first efuels plant that will produce approximately 80,000 MTPA of ejet fuel (ekerosene) and enaphtha, using novel yet proven technologies. It also covers the engineering of a 250 MW electrolyzer plant to produce green hydrogen. The plant will be designed with a flexible product slate to also allow for production of ediesel. These fuels allow airlines to cut their carbon emissions proportionally therefore providing the ability for airlines and heavy transportation to meet both voluntary carbon reductions and proposed EU mandates for efuels use.

Fluor Wins Feed, EPCM Contracts for World’s First Net-Zero Ethylene and Derivatives Complex

Feb 22 – Fluor has been awarded a reimbursable contract by Dow to provide front-end engineering and design (Feed) and engineering, procurement and construction management (EPCM) services for the world’s first net-zero carbon emissions (scope 1 and 2 carbon dioxide emissions) ethylene cracker and derivatives complex in Fort Saskatchewan, Alberta, Canada. Fluor will book the initial Feed award in the first quarter and anticipates that the additional EPCM scope will be awarded throughout 2023 pending a final investment decision by Dow’s Board of Directors.

Dow’s net-zero emissions ethylene cracker and derivatives complex, which is subject to approval by Dow’s Board of Directors and various regulatory agencies, would decarbonize approximately 20 percent of its global ethylene capacity while growing its polyethylene supply by about 15 percent and supporting approximately 1 billion dollars of Ebitda (earnings before interest, taxes, depreciation and amortization) growth across the value chain by 2030.

The additional project scope to be awarded in 2023 includes integrated project management team services for the entire Fort Saskatchewan Path2Zero program and EPCM services for the ethane cracker and associated utilities, power and infrastructure.

Indian Oil Corporation Commissions Pörner to Develop Three Bitumen Plants

Feb 23 – India’s road network covers around 6.2 million kilometers, which makes it the second largest in the world after the USA. Almost 70 percent of all roads have been paved to date, only two percent of which are national highways. Currently, the government invests 350 billion U.S. dollars in the road infrastructure in northeastern India. The annual bitumen demand is expected to exceed the eight million ton mark.

India has always been an important market for Pörner. To date, Biturox plants licensed by Pörner produce around 65 percent of India’s bitumen. 10 of India’s 23 refineries already produce modern bitumen with high viscosity grades using Biturox plants. First-class quality bitumen plays a crucial role as an essential building material for road construction. Therefore, India’s largest company, Indian Oil Corporation Ltd (IOCL), is now investing in the construction of three more bitumen plants at the Paradip, Gujarat and Barauni refineries.

Pörner has already realized plants for IOCL at two of these locations: in Gujarat in 2002 and in Barauni in 2017. Now the engineering company is pleased about follow-up orders and the award of the 60th, 61st and 62nd Biturox license.

The new plant in Barauni is expected to produce 300,000 metric tons per annum (TPA) of bitumen in the future to meet the demand for bitumen products in eastern India. In western India, the new plant in Gujarat will cover the bitumen demand with a capacity of 500,000 TPA. Since summer 2022, Pörner engineers have been working on the basic engineering at the Barauni and Gujarat refineries and preparing the delivery of the key equipment.

Pörner’s first project at the Paradip refinery includes the basic engineering as well as the supply of the key equipment of the Biturox plant. The project started in December 2022 and is expected to be completed in June 2023.

Exxonmobil to Invest 2-Billion-Dollars for Expanding Baytown Chemical Plant

Feb 24 – Exxonmobil will proceed with a 2-billion-dollar investment to expand its Baytown, Texas chemical plant, which will create approximately 2,000 jobs during construction and contribute to the approximate 15 percent return the company expects from its chemical investments. The Baytown expansion is in addition to the company’s 2017 Growing the Gulf initiative, which outlined plans to build and expand manufacturing facilities along the U.S. Gulf Coast, creating more than 45,000 high-paying jobs across the region.

“Our Baytown chemical expansion will put us in a solid position to maximize the value of increased Permian Basin production and will deliver higher-demand, higher-value products produced at our Gulf Coast refining and chemical facilities,” said Woods.

“Global demand for chemicals is expected to be greater than energy demand growth and GDP growth over the next 20 years,” Woods said. The expansion, expected to start up in 2022, includes a new Vistamaxx performance polymer unit, which produces products that offer higher levels of elasticity, softness and flexibility, attributes that contribute to a reduction in materials used and increased performance in everyday products. The new unit will produce about 400,000 tons of Vistamaxx polymers a year.

Braskem, Coolbrook Collaborate for Cracker Electrification

Feb 28 – Committed to implementing new technologies and solutions that reinforce sustainable development, mainly in the fight against climate change, Braskem signed a cooperation agreement with Coolbrook, a technology and transformational engineering company that owns the disruptive technology for the electrification of cracking units (crackers) called Rotodynamic Reactor (RDR).

With this cooperation, Braskem and Coolbrook begin the implementation of a pilot project, where the petrochemical company will evaluate the use of the technology on an industrial scale to introduce it in its crackers. Ultimately, the project aims to electrify the crackers, by replacing the use of thermal energy from fossil fuels with electricity from renewable sources, which is one of the ways for Braskem to reach the goal of carbon neutrality by 2050.

In addition to eliminating emissions from burning fuels, the technology has the potential to increase raw material flexibility and yields, also contributing to improved energy efficiency compared to traditional cracking technologies. The initiative is linked to Braskem's business strategies to meet the goals established in the fight against climate change. The company aims to reduce greenhouse gas emissions by 15 % by 2030 and achieve carbon neutrality by 2050.

Expanding the use of renewable electricity, as well as renewable raw materials, will allow Braskem to reduce its carbon footprint in the production of ethylene, propylene and other chemical products.

Covestro Begins Chlorine Production at World-Scale Plant

Feb 28 – Covestro has successfully started up a new world-scale facility for the production of chlorine in Tarragona, Spain. It is the first world-scale production plant for chlorine based upon the highly innovative and energy efficient ODC (oxygen depolarized cathode) technology invented by Covestro and its partners. The new plant ensures an efficient, sustainable and independent supply of chlorine and caustic soda to MDI production in Tarragona. This will strengthen the European production network for MDI – a precursor for the manufacture of rigid polyurethane foam used to insulate refrigeration appliances and buildings. The 200-million-euro investment has created 50 new jobs on site.

The new chlorine facility is the first industrial-scale plant in the world to use the innovative oxygen depolarized cathode technology (ODC). The technology has been developed by Covestro in collaboration with thyssenkrupp nucera. Compared to the currently predominant conventional chlor-alkali electrolysis, the new process requires a lower voltage, which results in energy savings of up to 25 percent. At the new plant in Tarragona, this can avoid up to 22,000 metric tons of CO2 emissions per year compared with existing processes – based on the energy mix at the start of construction planning in 2018. The new plant will thus make an important contribution to Covestro’s goal of being operationally climate-neutral by 2035.

The chlorine is used on site as a raw material for the production of MDI, a precursor for the manufacture of rigid polyurethane foams as used for producing energy-efficient insulation solutions for buildings and refrigerating devices. In 2019, the global MDI market had a volume of around 7,500 kilotons and is expected to further grow in the long term. In addition to chlorine, the plant will also produce caustic soda for the Iberian and European markets. Both chlorine and caustic soda are two indispensable basic chemicals for the chemical industry, and are also key raw materials for many other strategic sectors.

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