Manali Petrochemicals (MPL), which produces petrochemicals, has embarked on a so-called first pilot project with UK technology partner Econic to commercialise the latter's carbon capture technology to achieve MPL's dual goal of using To achieve green environmental protection and reduce dependence on fossil fuel raw materials.

Two months ago, MPL struck a deal with UK-based Econic Technologies to introduce greener polyol products and reduce raw material costs. Currently, its polyol production is driven by oil-based materials.

Ashwin Muthiah, Chairman of MPL and Chairman of AM International, said: "We were looking for a technology that would help MPL and align with the group's overall vision. We were fortunate to have found Econic, which provided us with a unique catalyst technology , which can replace fossil fuel feedstocks with captured carbon dioxide, helping us have a more sustainable, cost-effective feedstock."

MPL has launched a pilot project to recreate Econic's technology for its polyol production. The company expects to complete the pilot project within two years. Unlike the technology of several petrochemical giants, Econic's technology has the ability to cross the carbon chain, meaning MPL can produce a wide range of polyols, whose market is estimated at around $28 billion globally.

"What we're trying is a trial to see if the technology can be successful on a pilot product basis. The success of this project will tell us to what extent we can substitute and see if the final product we create It meets the specifications required by the market," said MPL's general manager Muthukrishnan Ravi.

Reduce raw material costs

The success of the ongoing pilot will help reduce MPL's raw material procurement costs. For example, if the company were able to replace at least 10% of CO2 technology, it would save around £5 billion in raw materials, while being able to reduce oil-based raw materials to some extent, which are characterized by volatile prices and demand.

“Also, if we start replacing CO2 technology, we hope we can tell our customers that we are selling a product that is greener than it was. As for whether it will get some premium for being partly green? That depends on how customers will appreciate it.” Ashwin Muthiah Said, "Greener products will command higher prices, which has never happened before."

Of course, the success of the pilot project will require some additional investment to retrofit the production machinery and install some new equipment at the unit. “However, it still may not be a big investment. For a 15,000-tonne polyol plant, we may need to invest £1.5-3 billion,” said Muthukrishnan Ravi.