LanzaTech to turn pollution into valuable fuels and chemicals

Immersed air pollution in the industrial countries from the chemical industries has nearly killed 7 million people in 2012. Countries like China and India continue to grow with a number of escalating waft stacks of smokes marked the landscape of these countries. A developer of transport fuels and chemicals from waste, LanzaTech NZ Ltd. has raised USD 60 million from investors which includes Japanese giant Mitsui & Co. According to the Auckland, New Zealand based company LanzaTech NZ Ltd. the Japanese trading house Mitsui has conduit USD 20 million to help the company to build further.

The gas fermentation technology by LanzaTech converts toxic carbon monoxide and secretions of dioxide into renewable ethanol and butadiene which can be used for the fabrication of nylon, rubber and other plastics on the site at the chemical emitting factories. Earlier the chemical companies use to ship the huge leap of their chemical waste for conversion to third party, which is a very expensive and time consuming endeavor.

Along with a formidable list of global investors the Japanese giant Mitsui & Co. LTD led the round and Khosla Ventures general partner Andrew Chung had also participated. However, so far in the five rounds of funding the company has raised USD 150 million.

The company LanzaTech composes low-carbon fuels and from the malevolent pollution coming out from steels mills, oil refineries, chemical manufacturers the company can formulate chemical out of it.

To convert carbon monoxide into fuels such as ethanol or jet fuel, the company in particularly uses a type of bacteria discovered in the intestinal tract of rabbits, also for the chemicals such as butadiene for nylon production and propylene for plastic.

According to Andrew Chung, the conversion technology by the company has a huge implication for helping the world to get rid of dangerous toxins which is polluting the air. He further said that this process might also help the greenhouse gases being released into the atmosphere.

This is a unique ability done by LanzaTech to diminish or eradicate the releases of waste gases like CO and on the global fight against air pollution CO2 have a vivid corollary. This method will have a potential to eliminate the smoke stacks from the world and the company LanzaTech on site is able to convert smoke from gas and coal fired plants into valuable chemicals and fuels. With this technique, LanzaTech will be able to accomplish toxic gases from the world and creating renewable fuel economically.

China which is considered the second largest country by land area and in the recent decades the country has suffered with severe environmental corrosion and pollution as it is one of the most industrialized but polluted countries in the world. China is also noted as the largest carbon dioxide emitter of the world. Due to political and public pressure on the Chinese government in Shanghai helped Bao Steel one of the Chinese chemical industry to look into the matter.

LanzaTech had already signed an agreement with Bao Steel whose 24 factories were based in Shanghai and had blanket the enormous metropolis in a toxic stew of chemicals day and night. As per the researched analyst, in China each year nearly 700,000 people die from pollution-related ailments.

Through this technique there will no more be lavish and dangerous shipping by rail, freighter and tanker trucks or storing the waste underground to further pollute the environment. This technology have sparkled interest to two well known nations Russia and India for their undesirable environmental track records.

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GCC to spend $2.46 trillion on oil, gas and water projects

Gulf Cooperation Council (GCC) comprising of Saudi Arabia, UAE, Kuwait, Qatar and Bahrain is planning to boost public social and investment spending. According to sources, the value of projects that are planned or underway is nearly $2.46 trillion. The wide range of projects and markets would create a number of opportunities for contractors, suppliers and consultants. Over the past ten years, GCC has awarded contracts worth $1.1 trillion. Saudi is the leader when it comes to future projects with a pipeline of more than $477 billion followed by the UAE and Qatar. Construction is the largest sector followed by other sectors like oil and gas and then construction and power.

In the wider Middle East and North African area (MENA) outside the GCC contracts worth $444 billion have been awarded since 2006. The largest market is Iran with deals worth $86 billion. Iraq is not so far behind with deals worth $74 billion.

Demand for electricity in the MENA countries is expected to grow at the rate of 7 per cent per year. Nearly $283 billion is likely to be invested within the region’s power sector between 2014 and 2018. GCC states, on the other hand, are likely to invest over $300 billion in some 20 energy projects by 2020. These projects will generate 8 gigawatts (GW) of additional power. Hitherto, 75 GW of $200 billion worth renewable energy projects are already underway. The increase in investment in the region’s power sector is because energy consumption in the Middle East is growing at a rapid pace. GCC states will have to ramp up their power generating capacity by about 64,000 megawatts (MW) to reach 176,500 MW by 2020, which will require an investment of $40-45 billion.

Analysts have not failed to stress on the need for increased gas production – a necessity for regional and global markets. Gas export growth in MENA is driven by Qatar and Algeria. However, Algerian exports are already declining. Export growth in Oman and Egypt is also waning. Nevertheless, importers like Kuwait, Dubai, Bahrain and Fujairah are emerging. Of UAE’s current electricity production capacity, 85 per cent of the power that is generated is gas-based, whereas the other plants are oil-fired. Electricity in Dubai and Abu Dhabi also comes largely from gas-based stations. The UAE has planned a civil nuclear programme worth $20 billion and the country’s first nuclear reactor is scheduled to start operations in 2017. The country is also planning to set up 4 nuclear reactors in Barakah by 2020 to produce 5.6 GW of electricity.

Power demand in MENA is expected to growth at 7 per cent over the next 10 years. However, MENA countries, with the exception of GCC states, suffer from lack of necessary technology, infrastructure and political and economical stability. Despite having easy access to resources these countries cannot fully utilise or benefit from them.

The power sector in these regions faces problems of transmission and distribution losses. Thus, they are keen on increasing investments in the sector and are trying to develop alternative sources of power.

For Iran oil and gas production is the major source of foreign exchange income and fiscal revenues. The Islamic Republic is home to the second largest natural gas reserves and the fourth largest reserves of oil in the world. Iran has failed to utilize the abundant sunlight available into a major source of power. The increasing population is consuming energy at alarming rates, which has put the Iranian power sector under a lot of pressure.

Domestic oil consumption in Egypt has increased by over 30 per cent over the last decade and the government intends to invest about $100 billion over the next decade. However, political instability and security issues have impacted the economy. Increasing demand for power and shortage of domestic energy resources has pushed the Moroccan government to reduce reliance on non-renewable power sources. The government is currently trying to make use of hydro and solar resources for power generation.

In Iraq, power consumption increased at the rate of 3.6 per cent over the last decade. However, the power distribution networks in the country are plagued by poor design, lack of maintenance and theft. Investments worth 28 billion have been announced in the Iraqi power sector.

Demand for natural gas in Jordan was estimated at 255 million cubic feet, but supply rate was only 95 million cubic feet. Jordan imports over 96 per cent of its oil needs and is heavily dependent on Egypt for its gas supplies. The country is still to explore its energy reserves.

MENA governments are turning to renewable resources for power generation primarily due to depleting resources and enhanced global environmental awareness. MENA countries are home to 57 per cent of the world’s proven oil reserves and 41 per cent of proven natural gas reserves. However, increasing population and economic growth has put the power sector under greater pressure. With gradual reduction in subsidies investments in the power sector will increase.

The water sector has also experienced a rise in investments. Reports suggest that nearly $683 million is to be invested in water projects in the UAE and Lebanon this year. 2014 will witness an investment of $12.5 billion for water projects across MENA.

The power and water sector are the two most important sectors of the projects market in MENA. There is a need, however, to discuss certain key issues like waste water reuse, energy efficiency and effective use of technology. It is crucial that these countries implement sustainable water and energy programmes in order to ensure the existence of a planet capable of sustaining human progress.

Qatar has managed to secure a position among the top three markets for companies conducting business in and with the Middle East. Qatar is set to award major projects worth $200 billion in the years to 2030. Qatar will be awarding massive construction contracts for infrastructure, transport, energy and utilities sectors. The petrochemical industry of Qatar will be offering a large number of opportunities to international EPC contractors. The country is also expected to see a rise in population and decoupling in gas prices, which will affect Qatar’s infrastructure and energy sector.

Kuwait is all set to establish its first independent water and power project (IWPP). The plant is being built on a build-own-operate-transfer model. The Al Zour North will have a power generating capacity of 1,500 MW and a water desalination capacity of 486 million litres per day. The project once completed will account for 10 per cent of Kuwait’s power capacity and 20 per cent of its water production. The project’s estimated worth is $1.8 billion. 40 per cent of the project is owned by GDF Suez (France), Sumitomo Corporation (Japan) and AH AL Sagar & Brothers. Kuwait Investment Authority and Public Institution for Social Security together own 10 per cent of the project. The remaining 50 per cent will be up for a public offering and will be distributed to Kuwaiti citizens once the plant commences operations. A group of international banks provided $1.43 billion (80 per cent of the total project costs) in debt.

Japan is keen to strengthen relations with Kuwait through this project. Tight supply of natural resources has made it crucial for Japan to develop ties with resource-rich countries. The IWPP project will account for 7 per cent of Japan’s total oil imports. The Al Zour North 1 IWPP project has also proved beneficial for companies like Hyundai Heavy Industries and Sidem.  

Thus, the ever rising demand for power and water is expected to bring about more projects in the Middle East.

Chemicals in personal care products can root to cancer

Most of the personal care products right for head to toe used by the infants and toddlers are likely being exposed to harmful chemicals such as Cocamide diethanolamine (cocamide DEA) which can even cause cancer. The test conducted by Center for Environmental Health (CEH) on shampoos, soaps and personal care items which is mostly sold by national retailers were found with high amount of cocamide DEA in nearly 98 shampoos, soaps and other personal care products. This chemical is chemically modified form of coconut oil, a hidden foaming and thickening agent that is a known carcinogen.

In August 2013, the CEH had released their test result and found cocamide DEA in renowned brands like Palmolive, American Crew Classic, Paul Mitchell, BIOSILK, and many others. According to their test, manufacturers who produce babies items uses cancer causing chemical in babies products, however, one of the products that claimed to be organic product also contained cocomide DEA.

The common and harmful chemicals that are mostly found in the ingredients of shampoos, soaps and other personal care items are Cocamide diethanolamine (cocamide DEA), Monoethanolamine (MEA), Triethanolamine (TEA), petroleum-based parabens, sodium lauryl sulfate, Quaternium-15, Isopropyl Alcohol, Mineral Oil, Polyethylene Glycol (PEG), Propylene Glycol, Talc.

DEA (Diethanolamine), MEA (Monoethanolamine), TEA (Triethanolamine

These three harmful chemical which is commonly found in the shampoos, soaps, bubble baths and facial cleansers which is a hormone disrupting chemicals that might cause cancer. As per the research analyst, these chemicals denote a strong link to liver and kidney cancers. DEA and its compounds also cause mild to moderate skin and eye irritation.

Phthalates and Parabens

Phthalates and Parabens are a group of chemicals which is mostly used as preservatives in cosmetic and pharmaceuticals. In 2003 the European Union had banned these chemicals. It is by and large used to keep hairspray sultry and microbes and also fungus out of things like nail polish and perfume. Both these chemicals have demonstrated themselves to be carcinogenic and are predominantly linked to breast cancer.

Sodium Lauryl Sulfate and Sodium Laureth Sulfate

This is a very common chemical chiefly found in the products that foam such as shampoos and soaps. This chemical is one of the most toxic ingredients and when coming in combination with other chemicals it can form nitrosamines which a deadly class of carcinogen. It is mostly used as detergent in cosmetics items to make the products bubble and foam. When getting an exposure to this chemical, it might cause eye damage, depression, diarrhea and many other ailments.

However, to meet a rising demand for clean and toxic free products, many companies have already started to controlled phased these and other big chemical names out of their products. But yet most of the prominent personal care products still contain harmful chemicals such as cocamide DEA, including a few that promote as natural and organic products in the market.

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Australia – The next shale revolution of the world

China, Russia and Argentina has been projected the top budding venues of the world for the next shale boom, however, according to the researched analyst Australia which is one of the wealthiest country and is noted as the 12th largest economy is the next shale revolution of the world. For most of the petrochemical companies this country appears to be the most attractive to pursue tight oil & gas. In 2014 after US and Brazil, Australia has also emerged as the third top destination.

China which is noted as the fastest growing major economies have been ogled by most of the companies for shale development, as they are decoyed by the outlook of huge reserves and easy financing, nevertheless for shale players, Australia is said to have the best and attractive technology, experience and infrastructure place to drill. This country not only beats China but also Argentina which has an outgoing shale reserves. However, despite attractive government incentives Argentina has an experienced political instability.

Although Australia does not have an apparently unending development capital of China or the influential government incentives like Argentina, it has the characteristics of conducive to successful commercial production which other front major countries Argentina, China, U.K., and Poland lack behind. As per the market research, this characteristic includes existing infrastructure, low population density in key shale plays and citizens who welcome resource extraction through its long mining legacy.

To produce and export natural gas to Asia, enormous projects in Australia have been constructed to make the country more attractive for shale exploration. One of the leading oil and natural gas manufacture Chevron based in U.S.A is leading the development of two colossal LNG project at a cost of approximately USD 81 billion in Australia which will soften and vessel natural gas to energy ravenous Asian nations.

Moreover, most of the investors are gazing at the massive projects rising in Australia to produce and export natural gas to Asia where it will get a hold of soaring prices. However, in US a drastic change has been brought due to huge glut in shale oil and gas resources which has now being made for restrictions on crude oil and liquefied natural gas to be hauling up.

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Johannesburg left with a toxic mining legacy

Johannesburg is home to one of the world’s most productive gold reef. However, this golden legacy has resulted in radioactivity from uranium hauled up in the mining process.

Rivers west of the city and even tap water has been contaminated by high levels of uranium. People in Johannesburg live among 600,000 metric tons of uranium buried in waste rock. Uranium can also be found below ground where water has filled abandoned mines and leaks into the environment. There are nearly 400,000 people in the area who are subjected to such high levels of uranium and yet the government has not even bothered to consider the health impact.

There is a general disagreement between health advocates and government regulators over the public-health threat this poses. While government ministers believe that the radiation levels recorded in and around Johannesburg are a cause for concern but isn’t that dangerous, health agencies believe that exposure to even low levels of radiation if prolonged can cause cancer.

The increasing amount of untreated waste material containing uranium and the decline in gold price has left a number of abandoned mine sites and thousands out of work. Often mine operators aren’t responsible for environmental rehabilitation of the mine as they never undertook legal ownership of the operation.

With time abandoned mine sites lose their shape as their toxic material leaks into the surrounding area. When waste dumps are forsaken it leads to major erosion and slides of toxic material into wetlands. It is mandatory for companies to set aside funds for environmental mitigation but these are often totally insufficient.

In 2012 a report stated that South Africa will have to spend nearly $2.7 billion on cleaning up its 6,000 abandoned mines. 40 per cent of the country’s functioning mines don’t have access to sufficient funds for rehabilitation.

Prolonged exposure to radiation can lead to cancer and changes to DNA- mutations that can affect one’s offspring as well. Increased ingestion of uranium can ultimately lead to increased cancer risk and liver damage. Every ton of ore mined produces 3 to 15 grams of gold, and most rock removed from the earth is waste material that contains toxic chemicals like uranium, mercury, radon, arsenic and sulphuric acid.

Another major issue is that the radioactive metal often dissolves in rainwater and runs into rivers or other water sources. It can also be spilled by companies that re-mine dumps for the metal.

The government has placed a prohibition of drinking, irrigating or washing in water taken directly from rivers. However, people residing in certain areas have no choice but to use the polluted water.

Elevated levels of uranium found in water sources have become a major cause of concern for health organizations. Residents are being exposed to dangerous water quality. The only way to protect public-health is by prohibiting people to drink water directly from contaminated rivers, dams or seasonal streams.

The government approach to eliminating uranium from mine dumps is to allow companies to re-mine them for gold, thereby removing toxic wastes as they proceed. The companies need to ensure that they mine cleanly or else they will only worsen the situation.

However, scientists believe that the government and the companies aren’t doing enough. Lack of information about how many mines will be closed in the future and the health implications of the same are worrying experts.

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China’s shale gas production to enter its booming years

Chinese shale gas industry is about to enter its booming years, made possible by China National Petroleum Corp and Sinopec Group. These two oil and gas companies enabled the nation’s shale output to hit 200 million cubic meters in 2013.

Shale gas production in China is expected to reach 1.5 billion cubic meters this year. China has made significant breakthroughs in the unconventional oil and gas exploration sector. 

In 2013, at the Chongqing Fuling shale gas block Sinopec averaged single well output of 150,000 cubic meters per day. The company is hoping to reach an annual production of 1 billion cubic meters by the end of this year. 

CNPC has commercialized shale gas output of 70 million cubic meters from Changning-Weiyuan block in Sichuan province, Zhaotong block in Yunnan and the Fushun-Yongchuan block in Sichuan. Based on the current development level these Chinese companies have managed to achieve will help increase domestic shale gas capacity.

However, there are analysts who are not so upbeat about the future. China is expected to consume nearly 170 billion cubic meters of natural gas in 2014. And even if the country manages to accomplish the goal, all the production cannot be used for society as it requires well-developed pipeline infrastructure and other supporting facilities. 

Low utilization rate and issues in upstream exploration will hinder the industry’s forward march.

The greatest hindrance is the lack of a method that can be used for most shale gas blocks in China. For instance, Sinopec’s technology for the Chongqing Fuling block cannot be used for other blocks.

Other major concerns include groundwater exploitation and contamination. Furthermore, China’s geological conditions are very different from those in the US- world’s biggest shale gas producer.
Majority of the shale gas blocks in China are in mountainous regions, which makes it extremely difficult to bring in huge fracturing equipments necessary to extract gas.
Shale gas exploration requires huge quantities of fresh water and technology available at present hasn’t been able to address this issue. Fresh water once used in shale gas extraction can’t be cleared for residential use and removing fluids from reservoirs can lead to surface subsidence.

These challenges have been limiting the growth of the shale gas industry. Companies are also reluctant to carry out operations in blocks they won from the bidding. 

Drilling a well can cost around 100 million yuan, which still cannot assure that shale gas will be found. Thus, the high cost and the inherent risks in shale gas exploration have deterred Chinese companies from making any big moves. The reluctance of the companies has also prevented any further bids.

China’s shale gas boom, however, has brought about opportunities for some machinery manufacturers. For instance, Yantai Jereh Oilfield Services Group Co Ltd has been trying to manufacture fracturing equipment suitable to China’s geological contours. This company is the only Chinese firm to supply shale gas equipment to North American companies. Jereh, recently, started developing machines meant specifically for Chinese projects. Their equipments can be used in areas with poor roads and uneven land.

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Chemical waste can been recycled and reused

Waste disposed at the industries clusters can be recycled in a great way as it can be reused to make new products, however, if these waste are not recycled than new products are made by hauling out fresh raw material from the earth through mining and forestry process. Chemical materials like plastic, glass and aluminum can be recycled and can be used in manufacturing other products. For chemical industry, treating waste discharge is a mandatory requirement for using it to make useful products which requires innovative thinking. Aluminum which is a cheaper chemical produced using recycled and scraps aluminum instead of using ores.

Nowadays, recycled products are on augment by many consumers and major industries have adopted this stance and most of the manufacturers are facing mounting pressure to provide products from recycled materials. Carpet manufacturers are also facing this pressure. Major chemical producers such as Honeywell/Allied Signal and DSM Chemicals have developed new technology which can help to recycle approximately 1.8 million tons of nylon carpet each year. This technology allows nylon manufacturers to recover and reuse caprolactam which is a raw material used to make nylon 6.

The recycled materials used in manufacturing process considerably take less energy than required for producing new products from raw material. On the contrary, more energy is saved as extra energy is required to extort, refine, transport and process ready raw material for industry in compare with providing industry ready material.

This process of recycling diminishes the need for mining, quarrying and logging, refining and processing raw materials as each one creates substantial air and water pollution. It also helps in saving energy and cuts down greenhouse gas production which in turn embarks upon the climate change. Currently, recycling in UK has projected to save more than 18 million tonnes of C02 a year which is equivalent of taking 5 million cars off the road.

According to the Tata Strategic Management Group (TSMG) report, approximately 20% of global effluents are liable for the chemical industry, even though it accounts for only 3% of global chemicals industries. Consequently several chemical companies have started to explore green chemistry based routes of synthesis to depose wastage and optimize the usage of raw material consumption.

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Asian buyers reduce imports of Iranian oil

The Western sanctions imposed upon Iran in mid-2012 led to declining oil revenues and a wobbly economy. If sanctions on the Islamic Republic are fully lifted, Tehran will have to persevere to regain the share of world oil markets it lost.

iran oil

Six countries namely China, Japan, Taiwan, India, Turkey and South Korea continue purchasing Iranian crude, but under exemption from US financial sanctions for which they have to reduce import of Iranian oil.

Since the sanctions came into force, Iran has lost market share in all these countries. Taiwan’s import volumes are rather small and inconsistent. Combined imports of crude oil from Iran by China, Japan and South Korea hit 1.09 million bpd in 2011, a year before the sanctions came into force. In 2013, the combined imports were at 740,000 bpd- a decline of 33.27 per cent from the 2011 level.

Over the same period, the combined total crude import volume by the 3 countries was at 14.81 million bpd in 2013 compared to 11.18 million bpd in 2011, a rise of 32.43 per cent from the 2011 level.

Iran is the only nation with declining volumes, whereas other suppliers increased volumes. For instance, Saudi Arabia increased supply by 4.66 per cent, whereas Russia raised supply by 39.6 per cent. Russia has been delivering larger volumes to Asia- the perfect market for its ESPO crude blend considering demand and logistics. After Russia, the biggest increase in supplies was from Kuwait, Iraq and Oman.

In 2011, combined imports of Saudi crude by the 3 countries stood at 2.895 million bpd. In 2012, Saudi raised supply by 7.36 per cent to 3.108 million bpd. In 2013, Saudi reduced volumes by 2.5 per cent to 3.03 million bpd. Imports from the UAE also increased by over 10 per cent to 1.325 million bpd in the previous year from 1.2 million bpd in 2011 and 2012.

In 2011-13, imports from Qatar to Japan and South Korea increased from 634,000 bpd to 700,000 bpd- a rise of 10.41 per cent.

Imports from Oman rose by 22.9 per cent to 601,000 bpd in the previous year from 489,000 bpd in 2011. In Iraq, imports increased from 620,000 bpd in 2011 to 784,000 bpd in 2013- a rise of 26.25 per cent. Iraq’s supply increase was concentrated on China.

Iraqi imports increased to 472,000 bpd in 2013 from 277,000 bpd in 2011. Japan’s import of crude oil from Iraq declined to 63,000 bpd fro, 99,000 bpd- a drop of 36 per cent between 2011 and 2013. While South Korea’s imports of Iraqi crude, at 249,000 bpd in 2013, showed little change.

Combined crude imports from Kuwait increased to 882,000 bpd in 2013 from 753,000 bpd in 2011- an increase of 17.13 per cent. For Saudi Arabia the greatest year-on-year percentage increase was in 2012, when imports from Kuwait increased by 21.78 per cent to 917,000 bpd. However, between 2012 and 2013 import volume declined by 3.82 per cent.

Saudi Arabia, Qatar, Iraq, Kuwait and the UAE increased supply to China, Japan and South Korea by 516,000 bpd between 2011 and 2013.

Volume increase from Gulf exporters, including Oman, over the 2011-2013 period stood at 728,000 bpd, almost double the 369,000 bpd volume by which imports from Iran declined.

China witnessed increased supply from two other OPEC producers. Supply from Angola increased from 626,000 bpd in 2011 to 804,000 bpd in 2013, an increase of 28.43 per cent. Venezuela also raised supply from 231,000 bpd in 2011 to 316,000 bpd in 2013, an increase of 36.8 per cent.

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