Albemarle reports 3Q 2007 results

Albemarle reports 3Q 2007 results

FOCUS for refined products and the necessity to comply with tougher environmental laws. A Freedonia Group study, ‘World Catalysts to 2010,’ forecast t...

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FOCUS for refined products and the necessity to comply with tougher environmental laws. A Freedonia Group study, ‘World Catalysts to 2010,’ forecast that global catalyst demand in the oil and gas sector will total $12.3 bn in 2010. In another study, ‘Catalysts for Environmental and Energy Applications,’ by BCC Research, the worldwide market for oil and gas catalysts was estimated to have been $12.2 bn in 2006. The BCC study expects the market to reach $13.0 bn in 2007 and $18.5 bn in 2012. The growth rate during the 2007-2012 period is 7.4%/y. In the energy sector, of which 90% uses catalysts, the market will reach almost $5.0 bn in 2012 from roughly $3.2 bn in 2006. The BCC study also projected that the increasing use of catalysts by other energy applications, primarily synfuels and biofuels, will cause refining catalysts to lose market share. Oil and Gas Journal, 1 Oct 2007, 105 (37), 52,54,56

Legislative influences catalyse growth in European catalysts market Chemical processing catalysts and emission control catalysts in Europe are experiencing different growth rates due to the difference in their end applications. While the former market is approaching saturation, the latter is experiencing significant opportunities in the automotive and other industries due to stringent legislative influences. New analysis from Frost & Sullivan, ‘European Markets for Catalysts’, finds that the European emission control catalyst market earned revenues of $2500 M in 2006 and estimates this to reach $3484 M in 2013. The chemical processing catalyst market earned revenues of $1020 M in 2006 and expects to reach $1277 M in 2013. High raw material costs substantially add to production costs, posing a major challenge to catalyst manufacturers. Another restraint to market growth is the high fuel costs in Europe, which is forcing many petrochemical manufacturers to consider establishing new production facilities in regions such as the Middle East, where the fuel costs are relatively lower. This trend toward establishing production capacities in other countries has affected the growth




potential of the chemical processing catalyst market. Press release from: Frost & Sullivan, 1040, East Brokaw Road, San Jose, CA 95131 2309, USA. Website: (15 Oct 2007)

Catalysts for environmental and energy applications (CHM020C) The global market for energy and environmental catalysts was worth an estimated $12.2 bn in 2006. The market is projected to grow to $13.0 bn in 2007 and $18.5 bn in 2012 at a compound annual growth rate (CAGR) of 7.4% from 2007 to 2012. The refinery industry accounted for almost 90% of the energy catalyst market, but refinery catalysts are projected to lose market share from 2006 to 2012 as other energy applications, particularly synfuels and biofuels, consume increasing amounts of catalysts. However, refining will still account for nearly three-quarters of the energy catalyst market in 2012. Mobile source air pollution remediation applications, particularly vehicle catalytic converters, accounted for almost 50% of the environmental catalyst market in 2006, followed by stationary source air pollution applications (eg, power plant emissions controls) with 31% of the market. The global market for energy and environmental catalysts was worth an estimated $12.2 bn in 2006. The market is projected to grow to $13.0 bn in 2007 and $18.5 bn in 2012 at a compound annual growth rate (CAGR) of 7.4% from 2007 to 2012. Price: $4250.00 Business Communications Co, Inc, 40 Washington St, Suite 110, Wellesley, MA 02481, USA. Tel: 781 489 7304. Fax: 781 489 7308. E-mail: Website: (Jun 2007)

White biotech on growth course worldwide More and more industrial chemicals are being produced by biotech methods. White biotech offers the benefit of replacing chemical processes that are dependent on oil and it also offers considerable potential for growth. European companies have not yet been able to catch up with the US in the classical biotech sectors but the position is different in white biotech. As one of the leading chemical locations, Germany, and other

European countries, are profiting from existing know-how and synergies. And in contrast to genetic engineering there is political backing. White biotech will shape the chemical industry more and more in future. According to one forecast, chemical industry sales from white biotech methods and products will rise from a current 5% to 11-21% by 2025. Global sales of enzymes are now $2-3 bn/y. Some 1 M tonnes of amino acids, with a value of €3-5 bn, are produced each year using biotech methods. Small and medium-sized companies are playing a growing role. Although Germany still leads in white biotech, the US is catching up thanks to a massive policy of support. Japan has also recognized the strategic importance of white biotech. Germany’s Evonik is investing around €40 M in its white biotech centre in the coming years. BASF is to make €150 M available for R&D in this segment during 2006-2008. Nachrichten für Aussenhandel, 19 Oct 2007 (Website: (in German)

COMPANY NEWS Albemarle reports 3Q 2007 results Albemarle Corp reported 3Q ended Sep 2007 net income of $59.1 M, or 61 cts/share, (net income of $2.3 M, or 2 cts/share in 3Q ended Sep 2006). Excluding the charge related to the divestiture of the Thann, France, plant of $89.2 M ($58.4 M after income taxes, or 60 cts/share), 3Q 2006 net income was $60.7 M, or 62 cts/share. Strong performance in the company’s Catalysts and Fine Chemicals business segments was offset by margin declines in the Polymer Additives business segment. The company reported net sales for 3Q 2007 totalling $584 M ($608 M in 3Q 2006). Net income for nine months ended Sep 2007 was $171.1 M, or $1.76/share, (net income of $80.0 M, or 82 cts/share, in nine months ended Sep 2006). Excluding the 2Q 2007 charge related to the closure of Dayton fine chemistry facility, net income for the nine months of 2007 was $174.2 M, or $1.79/share. Net income, excluding the Thann charge,


FOCUS for the nine months of 2006 was $138.4 M, or $1.43/ share. Net sales for nine months of 2007 were $1.74 bn ($1.78 bn in nine months of 2006). Catalysts recorded net sales for 3Q 2007 of $216.4 M, a nominal decrease versus 3Q 2006, due primarily to lower volumes in HPC refinery catalysts, partially offset by improved pricing in FCC refinery catalysts and polyolefin catalysts. R&D expenses increased $3.9 M to $15.422 M for 3Q 2007 ($11.549 M in 3Q 2006). Albemarle 3Q and nine months 2007 financials, 22 Oct 2007 (Albemarle Corp, 330, South Fourth Street, PO Box 1335, Richmond, VA 23210, USA. Tel: +1 804 788 6000. Fax: +1 804 388 7686. Website:

Avantium and BP extend strategic partnership Avantium announces a three-year extension of the strategic research collaboration with BP, one of the world’s largest energy companies. Avantium provides innovative, high value-added R&D services and tools to the energy, chemicals and pharmaceutical industries, and has a long standing relationship with BP. The collaboration builds on the strategic relationship between BP and Avantium that was initiated in 2005. The strategic research collaboration in the area of purified terephthalic acid (PTA) is extended for a period of 3 years. Press release from: Avantium Technologies, Zekeringstraat 29, 1014BV Amsterdam, The Netherlands. Tel: +31 20 586 8080. Fax: +31 20 586 8085. E-mail: i[email protected]. Website: (16 Oct 2007)

Catalytica Energy Systems closes merger transaction; Renergy Holdings Inc to start trading Catalytica Energy Systems Inc has announced the completion of its merger transaction with the renewable energy divisions of NZ Legacy LLC. The combined companies now operate under the name Renegy Holdings Inc (Renegy). Renegy common stock is scheduled to commence trading on the NASDAQ Capital Market on 1 Oct 2007. Outstanding shares of Catalytica Energy Systems common stock on 1 Oct 2007 have been converted into the right to receive new shares of Renegy common stock at the exchange ratio of one share of Renegy common stock




for every seven shares of Catalytica Energy Systems common stock held at the effective time of the merger. Press release from: Catalytica Energy Systems, Tempe, AZ, USA. Tel: +1 650 631 2847. Website: (1 Oct 2007)

Codexis acquires BioCatalytics Codexis, a USA-based biotech company, has purchased BioCatalytics, a Pasadena, CA-based enzyme company. The acquisition will form a global leader in the biocatalyst industry, merging the two companies’ expertise in the design, synthesis, and application of biocatalysts. Both Codexis and BioCatalytics are into the development of novel processes that are shorter, faster, and cleaner than currently available chemical synthesis technologies. Manufacturing Chemist, Sep 2007, 78 (9), 12

DSM offers technology for making ethanol from cellulose DSM has reported the development of a technology platform that can extract ethanol from cellulose. DSM has decided to offer the technology to India. This will enable the Indian government to realise its ethanol blended petrol (EBP) programme. EBP programme involves blending of petrol with 5% ethanol. DSM is initiating talks with leading Indian oil marketing companies like RIL, IOC and IBP for commercial development of the technology. It involves the development of biocatalysts for fermenting lignocellulosic biomass. Chemical Weekly, 25 Sep 2007, 53 (6), 118

Fuel Tech awarded NOxOUT Ultra contract Fuel Tech Inc, a world leader in advanced engineering solutions for the optimization of combustion systems in utility and industrial applications, announced it was awarded a $7.2 M NOxOUT Ultra contract by an existing Midwest electric utility customer. The contract calls for the turnkey installation of a NOxOUT Ultra system in support of a new selective catalytic reduction (SCR) system for nitrogen oxide (NOx) control on a 400 megawatt coal-fired boiler. Project completion is scheduled for 2H 2008. The NOxOUT

ULTRA process provides for the safe and cost-effective on-site conversion of urea to ammonia for use as a reagent in the selective catalytic reduction of NOx, eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia. Press release from: Fuel Tech Inc, Financial Centre, 695 East Main Street, Stamford, CT 06901, USA. Tel: +1 203 425 9830. Fax: +1 203 425 9823. E-mail: [email protected]. Website: (16 Oct 2007)

Genencor launches enzyme for cellulose-based bioethanol production Danisco’s American division Genencor has launched the first commercial enzyme for the production of cellulosebased bioethanol under the name Accellerase 1000. This converts lignocellulose mass to sugar which can then be fermented to ethanol. The enzyme answers an unfulfilled need for effective enzymes for converting biomass in research and demonstration facilities that are working on process development, upscaling, and integration of the various secondgeneration technologies. Dagbladet Borsen, 15 Oct 2007 (Website: (in Danish)

Dr Haldor Topsoe acquires Saipem’s shares in Haldor Topsoe A/S On 27 Sep 2007, Dr Haldor Topsoe acquired Saipem’s 50% share in Haldor Topsoe A/S for a consideration of €340 M in cash. Dr Haldor Topsoe now holds all the shares in Haldor Topsoe A/S. Saipem (43% owned by ENI) is the owner of Snamprogetti, which originally invested in Haldor Topsoe A/S alongside Dr Haldor Topsoe in 1972. “Haldor Topsoe A/S and Saipem will continue their commercial relationship, notably in the areas of ammonia and fertilizer” said Dr Topsoe continuing: “We have had a good and fruitful relationship with Snamprogetti for 35 years and while we are parting ways as shareholders in Haldor Topsoe A/S, we look forward to continuing our business relationship with both Snamprogetti and the broader Saipem and ENI groups”. Press release from: Haldor Topsoe A/S, Nymollevej 55, PO Box 213, DK 2800 Lyngby, Denmark. Tel: +45 45272000. Fax: +45 45272999. Website: (27 Sep 2007)