In a move that strengthens its integrated downstream expansion strategy, the Saudi Arabian Oil Company (Saudi Aramco) has purchased the breakthrough Converge polyol product line and associated operations and technologies from US-based chemistry technology development company Novomer Inc.
According to Amin H. Nasser, Saudi Aramco President & CEO, some of the company’s most significant achievements in recent years were in developing new international partnerships in the downstream segment.
Nasser added that the acquisition deal also enables the development of new technological growth areas that are in line with the economic diversification and job creation objectives of Saudi Vision 2030.
Converge is manufactured from and contains a significant portion of carbon dioxide (CO2). The technology provides a high-performance, cost competitive and more sustainable alternative to conventional petroleum-based polyols.
Polyols are used in Coating, Adhesive, Sealant, and Elastomer (CASE) applications which feature in high-value, high-demand end-products, including within the flexible and rigid foam manufacturing segments. Applications cover a broad spectrum from automobile seats to building insulation panels.
“There is compelling industrial logic to the Converge polyol technology deal as it enables the conversion of waste CO2 into cleaner, high-value end-products with significant performance, cost and carbon footprint improvements,” Nasser said.
Converge polyols only have approximately one-third the carbon footprint compared to conventional polyols.
When incorporated into polyurethane formulations, they demonstrate superior material performance including: increased strength; increased abrasion, chemical and weather resistance; increased adhesion, hardness and tear-strength; greater load bearing capacity; and reduced heat of combustion.
“By providing access to reliable feedstock supplies, financial stability and unrivalled R&D investment and focus, Saudi Aramco will accelerate the commercialisation of these exciting new polyol materials. This will help spur growth in the production of more sustainable finished and semi-finished products in the petrochemicals conversion sector, including within the small and medium enterprise sector in Saudi Arabia,” Abdulaziz Al-Judaimi, the Acting Senior Vice President of Downstream, Saudi Aramco said.
Converge and its associated products will be manufactured and marketed through Saudi Aramco’s subsidiary, Aramco Performance Materials LLC (APM). Saudi Aramco is planning for full-scale production facilities in Saudi Arabia to support the manufacture of specialty and intermediate chemical products to supply a wide variety of industries.