What makes this point in time unique and interesting for the petrochemicals industry and where does Fortrec fit into it?
AB: The current era is distinct due to the heightened emphasis on sustainability, especially in the post-COVID landscape where the green agenda has surged in importance. Previously, sustainability was a secondary concern, but now it is at the forefront of discussions.
Our approach at Fortrec diverges from traditional trading; we delve deeper into the product life cycle and refinery operations, aiming to reframe our role within the broader context of the industry. Understanding our partners' needs and the intricacies of the business and product itself are pivotal pillars for us.
AM: Fortrec was established in 1999 with the objective of addressing technical challenges faced by petrochemical plants, thereby optimizing production efficiency. Our unique FRAME framework (Finance, Raw Materials, Advanced Logistics, Marketing, Engineering) enables us to identify and bridge gaps within the industry. This approach has led us to develop the Asset Utilization Program, under which we invest in assets to enhance feedstock provision and exportation, differentiating ourselves by repurposing refinery bottoms into feedstocks for key industries such as agrochemicals, coatings, and pharmaceuticals.
How do you apply the FRAME framework in real-world scenarios?
AM: When it comes to implementing our FRAME framework in real scenarios, we focus on areas like feedstocks and marketing, which are highly influenced by EU legislation. This legislation determines the technical requirements for products, influencing what solvents can be used in industries such as agrochemicals, coatings, and pharmaceuticals.. Our role is to navigate these regulations, employing our engineering capabilities to produce technically superior products that meet these stringent standards. Our B2B model requires us to work closely with various agencies and in-house expertise to align with legislative demands, ensuring our products are technically and legally compliant.
AB:
The industry's shift towards more technically superior solutions and the increasing role of petrochemicals over petroleum excites us. Innovations in printing inks and paints that reduce odor and smudging exemplify the technical advancements that have been made. Fortrec thrives on this technical sophistication, focusing on creating less polluting and more environmentally friendly products.
The move downstream by national oil companies into petrochemicals, driven by decreased demand for petroleum products and the need for expertise in bridging petroleum to petrochemicals, underscores the transformative path the industry is on.
How does Fortrec view its role in the context of global initiatives like the Inflation Reduction Act and the shift towards bio-based materials?
AB: Our focus on refining the "bottoms" of various processes into valuable solvents positions us to contribute significantly to the development of bio-solvents. The future direction for Fortrec involves leveraging these sustainable and recycled materials to produce solvents, aligning with global sustainability efforts and technological advancements in the industry.
In the recycling industry, we have focused on the non-usable portion of residue, commonly referred to as the "bottoms." Unlike companies that primarily recycle usable materials and often dispose of the non-usable portion through burning or as fuel, we seek to incorporate these bottoms into usable feedstock. This strategy aims to reduce emissions. Fortrec’s collaboration with the National University of Singapore to quantify emissions savings highlights our commitment to environmental stewardship and the potential for technical innovation to drive significant positive change in the industry.
With global demand increasingly shifting towards APAC, which global regions are you most excited about in terms of growth and partnerships?
AB: We are particularly interested in partnering with companies that have a proactive stance on sustainability and are looking for innovative ways to repurpose their residue. For example, large national oil companies with a green agenda and substantial residue streams. Our strategy aligns with identifying partners who are already motivated to explore sustainable practices, thereby facilitating mutual growth in the recycling and repurposing sector. This includes expanding our presence in regions like Middle East and India, targeting growth opportunities in the petrochemicals industry and other sectors poised for significant expansion.
With the increasing adoption of advanced recycling initiatives, how does the cost of recycling impact the decision-making of large companies regarding sustainability practices?
AB: The decision to recycle polymers often comes down to cost. The immediate financial return from burning waste or continuing with conventional practices is a significant barrier to adopting greener alternatives. This challenge is exacerbated by the lack of monetary incentives to adopt more sustainable practices, such as recycling. The higher-level corporate decisions, possibly influenced by policies like a carbon tax, could drive the shift towards sustainability. The cost of recycling, particularly for products like polymers, remains a major hurdle, emphasizing the need for legislative support and industry collaboration to promote environmentally friendly practices.
Looking forward to three years ahead, what innovations and achievements does Fortrec anticipate sharing?
AM: By 2027, we aim to significantly expand our operations, particularly in the Middle East and India, by leveraging opportunities in the petrochemical sector and other growing industries.
AB: Our focus on repurposing materials aligns with global sustainability goals and presents a unique value proposition in the recycling industry. Our roadmap includes not only business expansion but also contributing to the reduction of carbon emissions through innovative recycling practices.