Page 143 - CW E-Magazine (19-3-2024)

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BACKWARD INTEGRATION PROJECT
Asian Paints in pact with Gujarat Chemical Port

for ethylene storage

Asian Paints (Polymers) Pvt. Ltd. years, as a part of the agreement with across much of the world. In the view
(APPPL), a wholly-owned subsidiary GCPL. of most experts, this trend will intensify
of Asian Paints, has entered into agree- in the years ahead and India too will not
ments with Gujarat Chemical Port GCPL, a joint venture promoted be an exception.
Ltd. (GCPL) for setting up an ethylene by the Gujarat Government, operates a
storage and handling facility at Dahej, commercial port in Dahej. It also owns VAE copolymers – produced through
Gujarat. and operates a network of shore-based dispersion polymerisation of the ‘hard
tank farm installations used for the monomer’, VAM, and ‘soft’, hydro-
Ethylene is a key raw material for receipt, storage, and handling of bulk phobic monomer, ethylene – are
the manufacture of vinyl acetate mono- chemicals. inherently low-VOC-capable due to the
mer (VAM) and vinyl acetate ethy- fact that ethylene is directly incorpo-
lene emulsions (VAE). Asian Paints, it VAE resins have been in used in the rated into the polymer backbone, mak-
may be recalled, had earlier announced paints industry for more than 50 years, ing it an effi cient ‘internal’ plasticiser.
plans to set up manufacturing facilities but till the 1990s were a niche. Some Their excellent coalescing properties
for VAM and VAE emulsions at Dahej, of this had to do with the fact that VAE means minimal quantities of solvents
at an estimated cost of Rs. 2,100-crore. plants were more expensive to build, are needed for fi lm-forming, making
compared to those to make acrylic resins, them an excellent choice particularly
Located in Dahej, Gujarat, the faci- and price differentials on the raw mate- for low-VOC architectural coatings.
lity will manufacture VAE and VAM, rials to make these two competing resin About 0.72-tonnes of acetic acid and
at an estimated cost of Rs. 2,100-crore. chemistries were not enough to offset 0.40-tonnes of ethylene are required
The installed capacities planned are this capex disadvantage. What has to produce 1-tonne of VAM, which
100-ktpa for VAM, based on technology changed in the last decade or so is tight- means the proposed VAM plant will
licensed from KBR (USA), and 150-ktpa ening regulations concerning emissions need about 72-ktpa of acetic acid and
for VAE. of volatile organic compounds (VOCs) 40-ktpa of ethylene. In addition, the
from several end-user industries for VAE plant will need an additional
APPPL will give a security deposit these synthetic resins. The drive to low- 30-ktpa of ethylene. India’s VAM de-
of Rs. 460-crore to GCPL, which will VOC and water-based systems origi- mand is currently fully met by imports,
be refunded over the course of 17-18 nated in the west, but is now pervasive which in FY22 was about 310-kt.

CONFLICT OF INTEREST
IOC scraps fi rst green hydrogen tender as industry
body moves Delhi Court

Indian Oil Corporation (IOC) has Panipat refi nery and petrochemicals within 30 months from receiving the
cancelled its fi rst tender for manufac- complex on a build, own, operate, Letter of Award (LoA).
turing green hydrogen after an indus- transfer (BOOT) basis. No reason was
try association dragged the state-run given for the cancellation. Independent Green Hydrogen
company to the Delhi High Court Producers Association (IGHPA),
alleging confl ict of interest. The tender, which was fl oated last an industry body created by Azure
year with the last date for submitting Power, Acme Group, Fortum India,
IOC cancelled the tender for set- bids as November 29, put the contract O2 Power, Sprng Energy and Sun-
ting up a green hydrogen manufac- period at 25 years. The successful Edison Infrastructure, challenged the
turing unit of 10-ktpa capacity at its bidder had to supply green hydrogen IOC tender in the Delhi High Court

Chemical Weekly March 19, 2024 143

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