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Albemarle and Petrobras to Build World Scale HPC Plant on the site of Fábrica Carioca de Catalisadores S.A. in Brazil

12/11/2010

Dec 9th, 2010
With great satisfaction, we report that Albemarle Corporation and Petrobras announced on December 6th, the signing of a memorandum of understanding to build a plant for production of catalysts for hydroprocessing (HPC) in Fábrica Carioca de Catalisadores SA. The new facility will complement the existing production of fluid catalytic cracking (FCC) catalysts.

The plant will be constructed ahead of significant demand growth for hydroprocessing catalysts, as Brazil begins to implement more stringent specifications for ultra low sulfur diesel and as Petrobras begins to introduce new hydrotreaters to existing and new refineries over the coming years. Albemarle will provide FCC SA with its leading technology for the manufacture of HPC, enabling the production of STARS(R) catalysts, which have enabled the broad implementation of the most stringent sulfur specifications in fuels in North America, Western Europe and Japan. The plant will be ideally placed to serve growing needs for HPC in South America.

Petrobras and Albemarle are also further enhancing their partnership by engaging into a joint technical cooperation aimed at the further development of advanced hydroprocessing catalysts, mirroring their very successful existing cooperation in the area of FCC catalysts.
Paulo Roberto Costa, Downstream Director of Petrobras said, "Petrobras is investing hard to improve the quality of its oil derived streams with the construction of new hydrotreating and hydroconversion units. Petrobras is increasingly making use of hydroprocessing catalysts and its future needs are going up by significant investments in new refining units. As an illustration of our catalysts demand, in 2016 it is expected to be 5 times higher than current consumption. This development is particularly important to guarantee market competitive sourcing over the long term. It also reinforces our strategic alliance with Albemarle."

Mark Rohr, Chairman and CEO of Albemarle Corporation said, "The partnership between Petrobras and Albemarle in refinery catalysts has been truly unique and has generated significant value for both companies for over 25 years. This expansion into HPC takes our relationship with Petrobras to the next level and also allows us to combine the technological leadership of both companies to best provide South America with clean fuels meeting the highest standards."

Fábrica Carioca de Catalisadores S.A. is an international technology company that produces and provides solutions in catalysts and additives for the oil refinning industry.

As a joint venture, FCC S.A. joins the tradition and know-how of two world giants of the oil and petrochemical areas – Petrobras and Albemarle Corporation.

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