M'sian firm in graphene race

AN announcement by a Malaysian owned company in London on Monday went largely unnoticed in Malaysia but not by the UK press.

Appearing in mainstream newpapers in the UK, the news surrounds AIM-listed Graphene NanoChem plc’s Malaysian subsidiary Platinum NanoChem Sdn Bhd entering into a joint venture with Scomi Oiltools Sdn Bhd, a unit of Scomi Energy Services Bhd, early this week to provide graphene-enhanced speciality chemicals.

The significance of that news meant that the race to commercialise graphene in the oil and gas industry was well underway with Scomi now ready to deliver a new generation of “smart fluids.” 

The deal saw Graphene NanoChem enter into a licensing agreement and a 50:50 joint venture for the production of a range of speciality chemicals, including graphene-enhanced drilling fluids and additives, along with base chemicals using nanotechnology.

The JV will see the construction of a 45,000 tonne per annum chemical plant and a 30,000 tonne per annum graphene nanomaterial plant to be completed by the start of 2016.

What it all boils down to is the use of graphene nanomaterials in a commercial application and that is said to be a game changer in the industry and a global innovation led by a Malaysian company.

The material is described as being far stronger than diamond, more conductive than copper, light as a feather and flexible as rubber is now at the heart of a worldwide contest to exploit its properties and accelerate commercial deployment. Paired with a base material such as drilling fuilds, graphene is designed to improve on the properties of the drilling fluid and other chemicals.

“The joint venture between Scomi and Platinum will enable Scomi to serve its current customers as well as participate in opportunities in the existing market, which needs today are met by players using traditional technologies,” says company president, market units for Scomi oilfields services division, Wan Ruzlan in a statement.

“The venture will benefit from Platinum’s state of the art manufacturing process in producing graphene enhanced solutions, allowing Scomi its own vital supply chain access to chemicals in formulating solutions for its oil and gas customers.”

In the first phase, the JV will produce a suite of drilling fluids and production chemicals with the goal of expanding over time into Scomi’s other core products being developed for enhanced oil recovery and unconventional production such as shale opportunities.

The JV will see RM80mil being invested in capex and in the second phase will move into the production of proppants and enhanced oil recovery products and aims to capture market share in the large product segments in drilling and production fluids. This is reflective of the recently seen increasing level of backward integration into the chemicals and formulations space by the top oilfield service companies. 

What it will mean for Scomi is the production of its own fluids for the oil and gas industry and takes aim at the global oil and gas formulation market which is projected to be worth approximately RM66bil today with steady growth forecast. 

Graphene NanoChem also announced on the same day that it’s subsidiary Platinum NanoChem had entered into an agreement with Emery Advanced Materials, a unit of Emery Oleochemicals Sdn Bhd which is in turn owned by the Thai petroleum giant PTT, to create graphene enhanced products. Those new generation graphene enhanced products will be for the plastics additives, biolubricants and rubber industries.

The addition of graphene will enable improvement in the fundamental characteristics of the lubricant and polymer host material by increasing its strengths, conductivity and flexibility and load bearing capability. This will potentially enable the utilisation of these products in high value applications areas. 

“We are currently developing the next generation of nanocarbon-based material which can be used in various applications, from engineered rubber compounds to high performing polyurethane,” explains Dr Kongkrapan Intarajang, president and CEO of Emery Group.

“The Emery Group is committed to innovation in expanding its portfolio of speciality products and the smart partnership with Platinum reflects its ongoing development for growth.”

Billed the “wonder material of the 21st century”, the graphene nanomaterial family, which ranges from monolayers to multilayer platelets, is an enabling technology with wide ranging properties that are expected to enable breakthrough products. 

Its use in traditional manufacturing is said to be revolutionary.

Experts believe the practical use of graphene, because of its unique properties, can lead to stretchable mobile phones and high definition televisions as thin as pieces of paper – and capable of being rolled-up into a one inch tube and moved anywhere. 

If used in lithium-ion batteries, like those used in electric cars and computers, it can lead to 10 times more energy storage capacity and can be charged within minutes. Using graphene can make materials lighter given its strength and can lead to lighter weight and stronger aircraft and automobiles with better fuel efficiency.

It’s then no wonder that the race to commercialise graphene has been on for the past few years ever since the discovery of the nano material in 2004. Graphene was first isolated by Russian scientists who won the Nobel prize for physics in 2010. 

Effectively, a small quantity of graphene can enhance and bring new properties to established products such as plastics, polymers, lubricants, metals for applications in a broad range of industries ranging from aerospace, automotive, composites, energy storage, marine and electronics, to construction, oil and gas, medical and telecommunications.  

It’s been reported that Samsung is a big investor in graphene and BASF and Daimler-Benz have designed a concept electric car called Smart Forvision incorporating graphene.

The cost of making graphene, though has been high and prohibitive, until now.

Platinum NanoChem manufactures graphene, which is essentially a carbon-based product, from the bio-mass residue or waste of the oil palm industry. The potential of the nano compound will likely see more effort being directed into the production and application of graphene as countries worldwide engage in the graphene race.

Game-changing development

For Platinum NanoChem, the joint ventures mark a breakthrough in the graphene race. Its deal with Scomi is first time graphene will be used in the commercial application in the fluids aspect of the oil and gas industries

“The ability to make products from graphene nanomaterials family and the holistic understanding of its differing attributes and how to apply it in order to achieve the desired functions combined with its market oriented approach in targeting high value applications is what sets the company apart. We expect this JV to be a model that we can replicate in a number of other applications,” says Platinum NanoChem CEO Datuk Jespal Deol (pic). 

“Our business model is not to sell graphene as a raw material but to leverage our production capability at the right cost combined with our proprietary application know how to create sustainable and recurring value participation in product design, formulation, manufacture and marketing,” he says.

“Our chemical customers include some of the largest oil and gas company in the world and our partnership strategy is focus on supply chain giant that control distribution choke points in the end to end market value chain.” 

Given that so many companies and countries are pursuing the practical use of graphene in technologies and Platinum NanoChem has managed to do so, that is something that is leading to big plans for the company and also the Government. In fact, Agensi Inovasi Malaysia (AIM) is working towards building a graphene hub in Malaysia.

“AIM is focused on enabling commercialisation of graphene and capturing value for Malaysia by encouraging and facilitating companies to move to developing high value add downstream applications with graphene as an enabler,” says AIM CEO Mark Rozario.

Graphene NanoChem was listed last year on AIM following the reverse acquisition of Biofutures International Plc by Platinum NanoChem. 

The group’s strengths lie in its advanced chemicals and advanced nanomaterials from renewable sources including waste material. Platinum NanoChem focuses on developing the nanotechnology processes to produce advanced chemicals from palm oil derived liquid waste and process residue materials.

From its Nanotech Park in Senawang, Platinum NanoChem produces graphene nanomaterials and its advanced chemicals. From there, it supplies fuel additives to tier-1 oil and gas companies.

The acquisition of Biofutures International in 2013 and its plant in Lahad Datu was an important step in its continued high growth strategy around high value, high margin industries.

The acquisition has seen a transformation in the fortunes of Biofutures International as Platinum has grown the company’s revenue by more than 20-fold within a year. Platinum NanoChem also has big plans for the Lahad Datu plant which will be announced in due course. With its advanced chemicals business, which is the big money earner for the company, the breakthrough in supplying graphene enhanced chemicals will mean even more tantalising opportunities in the future.

“The value proposition provided by the company enables the penetration of oleochemicals unto a hithero unchartered territory of speciality chemicals for harsh environments likes oilfields, drilling wells and others,” says Sushil Sidhu, Platinum group’s finance director.

“The represent the strategic move for the traditional lower margin oleochemical business value chain into the higher margin. higher value application.”