Business Concentrates
Cold weather exhausts natural gas in China Country’s attempt to cut coal use causes chemical makers to suspend operations Offshore Oil—to assist in supplying natural gas to cities and counties in the north. The order also allows some coal-fired power plants that were recently closed to resume production. In the chemical industry, the reallocation of gas is mostly affecting methanol and fertilizer producers, especially in the southwest of the country, says Kelly Cui, senior chemicals consultant at the Singapore office of the consulting firm Wood Mackenzie. The shortages will extend until February, when the weather starts to warm, she expects. World prices of commodity fertilizers may temporarily rise, Cui warns, because China is an exporter. China’s largest fertilizer producer, Yunnan Yuntianhua, released a statement to The Chinese government is telling natural the Shanghai Stock Exchange disclosing that its facility in Zhaotong, Yunnan, has gas processors to redirect supplies from industrial users to the home heating market. stopped production indefinitely because of a lack of natural gas. Beyond basic materials like fertilizers, BASF and other firms have had to tempoBASF has had to stop production at a rarily shut them down. $1.2 billion plant in Chongqing, 1,700 km The problem is emerging as the weathwest of Shanghai, that produces methyer has become colder in recent weeks. lene diphenyl diisocyanate (MDI), a polyNatural gas is so scarce in the north that urethane raw material. the government has ordered major energy BASF says the natural gas shortage has companies to reroute gas meant for indushalted production at the company’s syngas trial users in the south. supplier. “We have been communicating On Dec. 16, China’s powerful Nationwith our customers proactively and we al Development & Reform Commission shall inform them of the MDI plant restart mandated provincial government and state-owned energy companies—including as soon as syngas supply resumes,” the firm says.—JEAN-FRANÇOIS TREMBLAY Sinopec, PetroChina, and China National Attempts to improve air quality in Beijing and other northern Chinese cities by switching home heating from coal to natural gas are having an unintended effect on the chemical industry. Unable to obtain gas needed to run some of their plants,
BY THE NUMBERS
$125 billion Estimated amount of cash stowed outside the U.S. by leading drug firms Amgen, Gilead Sciences, Johnson & Johnson, Merck & Co., and Pfizer, according to Credit Suisse. The investment bank points out that the U.S. tax overhaul will lower tax rates for repatriated cash from 35% to 15.5%. The drug industry will benefit, Credit Suisse says, adding that it would like to see firms use the repatriated funds to pursue acquisitions rather than buy back their own shares. 10
C&EN | CEN.ACS.ORG | JANUARY 1, 2018
ENERGY STORAGE
BMW taps Solid Power for battery program BMW says it will partner with Colorado-based Solid Power, a 2017 C&EN Start-up to Watch. The companies will work together to develop solid-state batteries as part of the automaker’s quest to extend driving range in its line of electric vehicles. Launched in 2012 as a spin off from the University of Colorado, Boulder, Solid Power has developed inorganic materials that replace liquid electrolytes in lithium ion batteries. Batteries with the solid electrolyte have higher energy density than standard lithium-ion batteries, meaning drivers can travel farther between charges. The sulfide-based solid electrolyte can also withstand temperatures up to 150 °C, conditions that can cause batteries with liquid electrolytes to catch fire. Liquid electrolytes contain volatile and flammable components not needed with solid versions. In addition to the new electrolyte, Solid Power has developed polymer binders to protect the solid-state battery’s lifespan as well as separator chemistry and a coating process to ensure the electrolyte can safely and efficiently pass lithium ions between the battery’s electrodes. “This technology has great potential to provide the BMW Group’s electric vehicles with increased driving range and a battery with a longer shelf-life that can withstand high temperatures,” the automaker says. BMW says it chose to work with Solid Power in part because the start-up has kept a close eye on costs. U.S. automakers are targeting an electric vehicle battery price of $125 per kWh by 2020, down from $227 in 2016. But projections by the consulting firm McKinsey & Co. suggest prices will only fall to $190 per kWh by the end of the decade.—MELODY BOMGARDNER
C R E D I T: R EU T ERS STA FF/R E U T ERS / N EWS CO M
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