The Catalyst Review July 2024 - 2

The Catalyst Review
An industry-focused, leading edge catalysis technology reference from The Catalyst Group Resources
Our Special Feature in July highlights advances and commercial activities
in the polyolefins industry, with Part 1 this month and Part 2 in August. The
plastics industry, in particular the polyolefins segment in thermoplastics
is under a considerable number of pressures. First is the current global
production overcapacity which has developed for two reasons (1) China's
drive for PE and PP domestic self-sufficiency, and (2) the expansion of
ME export capacity to monetize their basic feedstock advantage. At the
same time, there has been a call for increased post-consumer recycling,
bans on plastic single-use applications e.g., grocery bags, utensils, etc.
This current combination is leading to the closure of older less economic
plants especially in EU, where LyondellBasell, ExxonMobil and others
have announced closures especially in PP to help this supply/demand
imbalance. Globally, those PE manufacturers from North America and the
Middle East utilizing ethane cracking hold a feedstock cost advantage,
which provides them export advantage. In PP, those with ample refinery
propylene supply vs PDH are likely to see better margins. So, this article is important,
because while limiting production and increasing market pricing in the short term has helped
somewhat in stabilizing the industry, in the longer-term new products and new applications
to increase market demand will need to be the focus. There are few products like polyolefins,
where the catalyst is 100% consumed in the product and that the molecular engineering of
that product, is directly tied to its properties and market success.
July Hot Topics!
Leading North America Activities:
● The Federal court has overturned the Biden halt/ban on LNG export permitting process
imposed in January.
● The sliding RIN and RD offset subsidies by State are causing many existing producers to
consider closure.
● The pending US Elections, now only 4 months away are holding up FID approvals as
investors are uncertain about whether IRA and other Federal programs for energy
transition incentives will be revamped.
● Canada has passed government regulations to support incentives for CCS and to take
legal responsibility for sequestration.
Smaller Considerations:
● It is clear, that the energy industries are not only consolidating but also pulling back on
riskier projects in the energy transition with the goal to improve margins and return more
to shareholders. This has not stopped the strategic recognition that " Net Zero by 2050 " is
not a goal but rather a measured response to the reality that when building assets with
25-30+ year horizons you need to be pragmatic about the financial risks.
International:
● Shell has placed on hold its massive Pernis SAF/RD investment project citing a review on
its investment economics.
● Ursula von der Leyen was reelected which reinforces past environmental policies, while
pending country elections suggest a right push back in both Germany and France.
● ICC24 convenes in Lyon, France the week of July 15th! See you there.
Upcoming Updates: We hope you have seen the steady improvements within The Catalyst
Review based both in quality of reporting key changes, as well as innovation recognition. We
would like your feedback on what you are seeing and what you would like to see included in
the publication. Please send that information, as well as any additional questions, to
Janay Reed jreed@catalystgrp.com.
#CATALYSTGRP
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2
The Catalyst Review
July 2024
THE CATALYST REVIEW
(ISSN 0898-3089)
July 2024, Volume 37, Issue 7
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The Catalyst Review July 2024

Table of Contents for the Digital Edition of The Catalyst Review July 2024