Albemarle Corp markets new FCC catalysts with lower REE content
2011-05-11 20:32:15 [Print]
PITTSBURGH (Asian Metal) 11 May 11 – Louisiana-based Albemarle Corp, one of the largest fluid catalytic cracking (FCC) catalyst manufacturers, announced yesterday a new line of products with a lower proportion of rare earths. The company cited substantial price appreciation of rare earth prices as the reason for the new catalyst line.
FCC catalysts, used in the oil refinery process, have a low but relatively important percentage of lanthanum and cerium. Prices of lanthanum oxide have risen from USD4.4/kg in May 2009 to USD132/kg at present; an increase of 2900% over the past two years. The US is the largest importer of lanthanum oxide worldwide.
Albemarle’s low rare earth technology (LRT) catalysts are an indication that major FCC manufacturers are taking a different approach to controlling costs than before. Last year, major US catalyst producers, including Albemarle, had applied a rare earth surcharge on catalyst products but kept the proportions of the contained REE unchanged.
According to the company, “By creating high-performance catalysts that use a lower proportion of rare earth minerals, Albemarle can help to protect its customers from these rising costs. LRT products have been developed in anticipation of sustained increases in rare earth mineral prices and to fulfill Albemarle's commitment to providing customers with comprehensive economic catalyst solutions. As rare earth mineral prices soar, the value provided by these innovative products continues to increase.”
Although a higher rare earth content typically translates into a better yield for the catalyst, Albemarle claims that the lower rare earth content does not affect the overall efficiency. The company noted that, “[The LRT catalysts] provide the activity and stability of catalysts with higher concentrations of rare earth minerals.”
Shares of Albemarle (NYSE:ALB) rose 2.64% yesterday to end at USD71.11 per share.
FCC catalysts, used in the oil refinery process, have a low but relatively important percentage of lanthanum and cerium. Prices of lanthanum oxide have risen from USD4.4/kg in May 2009 to USD132/kg at present; an increase of 2900% over the past two years. The US is the largest importer of lanthanum oxide worldwide.
Albemarle’s low rare earth technology (LRT) catalysts are an indication that major FCC manufacturers are taking a different approach to controlling costs than before. Last year, major US catalyst producers, including Albemarle, had applied a rare earth surcharge on catalyst products but kept the proportions of the contained REE unchanged.
According to the company, “By creating high-performance catalysts that use a lower proportion of rare earth minerals, Albemarle can help to protect its customers from these rising costs. LRT products have been developed in anticipation of sustained increases in rare earth mineral prices and to fulfill Albemarle's commitment to providing customers with comprehensive economic catalyst solutions. As rare earth mineral prices soar, the value provided by these innovative products continues to increase.”
Although a higher rare earth content typically translates into a better yield for the catalyst, Albemarle claims that the lower rare earth content does not affect the overall efficiency. The company noted that, “[The LRT catalysts] provide the activity and stability of catalysts with higher concentrations of rare earth minerals.”
Shares of Albemarle (NYSE:ALB) rose 2.64% yesterday to end at USD71.11 per share.
