The_Catalyst_Review_January_2024 - 4

Commercial News
Heraeus Precious Metals Announces Business Line Hydrogen Systems
Heraeus Precious Metals announced the establishment of a new dedicated Business Line Hydrogen Systems, effective from 1 January
2024, in a move the company said strengthens Heraeus Precious Metals' commitment to the hydrogen economy. Hydrogen Systems
provides a comprehensive range of precious metal-based products for electrolyzers and fuel cells, in particular state-of-the-art
electrocatalyst solutions for next generation applications. Furthermore, the new Business Line offers, in addition to precious metals
supply, a comprehensive array of technologies as well as the respective production capacities for the recovery of precious metals
from production scrap and end-of-life materials, such as catalyst coated membranes. It serves hence as central point for applications
of precious metals for customers in the hydrogen economy. Driven by its core expertise in electrocatalysts, Heraeus Precious Metals
continues to expand its R&D efforts towards the United States and China and beyond PEM (Proton Exchange Membrane) technology.
Furthermore, resources for customer support for ink and electrode development have been established. Heraeus Precious Metals
has a long-standing heritage in the development of electrocatalysts. Over the years, what has begun as a corporate start-up and
R&D project evolved into a mature Business Line. The company has surpassed the tipping point from a pioneering presence in
electrocatalyst production to a pivotal role in the hydrogen industry's precious metal applications. As the industry expands, Heraeus
Precious Metals has continuously expanded its operations by key investments in 2023, such as new production capabilities in
Nanjing, China, and upcoming additional recycling capacities in Hanau, Germany. All investments as well as the further expansion of
the production capacities are aligned with Heraeus Precious Metals' objective to take a leading role in shaping the precious metals
industry sustainably. Source: Heraeus Precious Metals,1/4/2024.
ADNOC Reportedly Makes
US$12.4B Bid for Covestro
Abu Dhabi National Oil Co. (ADNOC) submitted
an increased preliminary takeover bid for German
chemical company Covestro AG and offered
concessions to pave the way for the start of detailed
due diligence, according to people with knowledge
of the matter. State-owned ADNOC made a fresh
proposal of about €60 a share, valuing Covestro at
around €11.3 billion (US$12.4 billion), according to
the sources. ADNOC previously made informal bids
of €55 and €57 that Covestro viewed as too low. It
also pledged job guarantees for several years as well
as about US$8 billion of investments after closing
the deal, the sources said, asking not to be identified
because the information is private. Covestro is
reportedly pondering its response. A representative
for ADNOC declined to comment. A spokesman for
Covestro pointed to a statement from early September
saying the company is in open-ended discussions
with ADNOC and declined to comment further. The
Middle Eastern energy giant was reportedly working
on such a move that would please at least some
of Covestro's shareholders. Covestro rose 0.4% to
€53.80 at 10:48 am in Frankfurt. Union Investment,
a German fund manager that's among the top 15
investors in Covestro, on Tuesday called on company
management to grant ADNOC access to due
diligence following the report of plans for a potentially
improved bid. Source: World Oil, 12/22/2023.
Saudi Firms Flag Higher Production Costs Following
Aramco Feedstocks Price Hike
Chemical producers in Saudi Arabia have warned of higher production
costs in 2024 after being notified by Saudi Aramco of a hike in several
feedstock and fuel product prices, effective Jan. 1. Companies including
SABIC, SABIC Agri-Nutrients, Sahara International Petrochemical Co.
(Sipchem), Yanbu National Petrochemical Co. (Yansab), Rabigh Refining
and Petrochemical Co. (Petro Rabigh), National Industrialization Co.
(Tasnee), Saudi Industrial Investment Group (SIIG), Methanol Chemicals
Co. (Chemanol) and Saudi Kayan Petrochemical Co. all issued
announcements on the Saudi stock exchange on Jan. 3 and Jan. 4 in
response to the price increase notification by Aramco. The price rises by
Aramco are for products including natural gas, ethane and diesel fuel,
according to the companies' various announcements. All the firms said
the impacts of higher production costs were expected to be reflected
in their fiscal results for the first quarter of 2024, but all also stated
they were studying ways to mitigate the effects of the cost increase,
including business efficiencies. SABIC said the higher feedstock prices
would result in an estimated 1.7% increase in its annual cost of sales,
while its agribusiness Sabic Agri-Nutrients (SAN) said its cost of sales is
estimated to rise by approximately 3.8%. Sipchem said it expects the
feedstocks price change to increase its total cost of sales by 3.18%, and
Tasnee said its estimated cost of sales would rise by 2.5%. Saudi Kayan
said the expected fiscal impact on its annual cost of sales is estimated
at approximately 1.2%, Yansab estimated the cost impact on its sales at
2.8% and Petro Rabigh estimated the impact on its cost of sales at 0.9%.
Chemanol said it expects the fiscal impact of the price rise for its main
feedstock, methane gas, to be a 2.9% increase in its annual cost of sales.
SIIG said its preliminary estimates indicate that the approximate financial
impact of the increase in prices is about 1.4% of its cost of goods sold for
various joint venture companies. Source: Chemical Week, 1/5/2024.
Harbour Energy to
Acquire Wintershall
Dea's Upstream Assets
for US$11.2B
4
The Catalyst Review
Harbour Energy announced it has reached an agreement with BASF and LetterOne, the
shareholders of Wintershall Dea AG, for the acquisition of substantially all of Wintershall Dea's
upstream assets for US$11.2 billion. The target portfolio includes all of Wintershall Dea's upstream
assets in Norway, Germany, Denmark, Argentina, Mexico, Egypt, Libya and Algeria as well as
Wintershall Dea's CO2
capture and storage (CCS) licences in Europe. Wintershall Dea's Russian
assets are excluded. The acquisition will add 1.1 bnboe of 2P reserves at approximately
$10/boe and more than 300 kboepd of production at approximately $35,000/boepd. The
January 2024

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