Page 120 - CW E-Magazine (31-12-2024)

Point of View

2024 sees several project announcements and completions,

but tough external environment poses commercial risks

Over the last couple of years, India has seen several projects getting commissioned for a slew of chemicals – phenol/acetone, acrylate
monomers, some synthetic rubbers (styrene butadiene and butyl), polyolefins, etc. In the next phase – spanning the next 2-3 years – we should
have projects making styrene, oxo-alcohols, acrylic acid & acrylates, polyvinyl chloride (PVC) resin, bisphenol-A (BPA), polycarbonate (PC),
among others. Despite these, in most instances, the anticipated demand growth will outstrip incremental supply, and imports will continue.

Here are some significant projects-related announcements that made the headlines in 2024.

RIL pioneers production of chemically recycled polymers
In January 2024, Reliance Industries Ltd. (RIL), India’s largest petrochemicals producer, became the first Indian company to chemically
recycle mixed plastic waste to produce polyolefins – polyethylene (PE) and polypropylene (PP) – at Jamnagar.
This was a milestone in the Indian plastics industry, and it was appropriate it came from RIL. After all, the company was single-handedly
responsible to taking polymer production to world-scale and stimulate demand.

The effort is in sync with measures other petrochemical producers globally are taking. Proponents of chemical recycling see it as a
core strategy of the much-desired circular economy. Sceptics, however, believe it is a ploy to divert attention from the poor sustainability
of plastics, and argue that with global production growing 3-4% per year – on a significant base – no downstream solution, no matter how
good, will meaningfully tackle the plastics waste issue!

Recycled PET demand set to receive a boost with clearance for food use
PET bottles have the highest recycling rates (85-90%) amongst all polymers in India, but much of this is bottle-to-fibre. That may change
in the near future due the recent clearance by regulators for use of recycled PET (r-PET) for food contact uses, including packaging water
and beverages.

RIL, India’s largest virgin PET producer, has set up several plants across the country, with capacity to recycle ~2-bn PET bottles annually,
which it plans to scale up to 5-bn. Others are joining the fray, including through chemical recycling.

Investments in aniline and methyl methacrylate
In January, Deepak Nitrite Ltd. (DNL) announced that its wholly-owned subsidiary, Deepak Chem Tech Ltd., will be setting up plants for
methyl methacrylate (MMA), polymethyl methacrylate (PMMA), BPA, PC resins & compounds, and aniline. While for aniline there is small
operating capacity, that is no longer the case for MMA and BPA, while for PC India only has compounding facilities. When these plants are
commissioned, they will represent a significant scale-up of domestic availability.

More petrochemical producers eye US ethane as feedstock
The competitiveness of petrochemicals production is in large measure determined by the cost of feedstock, though other factors including
scale, choice of technology and operational efficiencies also count. Till recently, petrochemical producers in India could only envy the cost
advantage enjoyed by crackers operating in gas-advantaged regions, such as the Middle East and USA, but could do little to benefit. That
has changed to some extent.

RIL was the first to leverage shale-derived ethane as feedstock, but in March Gail India Ltd. and ONGC signed a tripartite agreement
with Shell to explore opportunities for the import of ethane and other hydrocarbons. Expect to see ethane imports into India to rise from
the current levels of about 2-mt annually.
One more phenol project
Haldia Petrochemicals Ltd. announced a phenol/acetone project by taking a novel route to enhance propylene production, viz. metathesis,
offered by Lummus Technologies (both part of the Chatterjee Group). This reaction combines one mole each of ethylene and 2-butene –
both available from naphtha cracking – to produce two moles of propylene, which can then feed a cumene production unit. The propylene
produced is polymer grade (>99 mol%) and offers a way of valorising C4 streams that has poor utilisation in India currently.

120 Chemical Weekly December 31, 2024 Chemical Weekly December 31, 2024 121

Contents Index to Advertisers Index to Products Advertised