Published by Donya-e-Eqtesad: Sarv Oil and Gas Spearheads Global Influence of Iranian Catalysts

Given its vast oil and gas reserves, Iran possesses numerous large-scale petrochemical, oil refining, and steel complexes, establishing it as one of the world’s leading producers of valuable products such as urea, ammonia, methanol, and steel. Within this context, ensuring the sustainable development of these industries is a critical issue, with their technological needs being met by the nation’s most capable companies. Over the past two decades, the catalyst industry has been institutionalized in the country by Sarv Oil and Gas Company. This company has not only satisfied domestic demand but has also defined new export markets for Iran, to the extent that Sarv Oil and Gas is now the fourth catalyst manufacturing company in the world to export its products. In this special report, we examine the trends and outlook of the nation’s catalyst industry as driven by Sarv Oil and Gas Company.

The Narrative of the Nation’s Catalyst Industry Sarv Oil and Gas is recognized as a knowledge-based company and a producer of various catalysts used in the nation’s petrochemical, oil refining, and steel industries. It has been named one of the top 10 knowledge-based companies in the country by the Vice Presidency for Science and Technology, based on parameters of growth, development, human resource recruitment, and exports. In addition to meeting the country’s industrial need for catalysts, the company has played a valuable role in mitigating the impact of sanctions by creating nearly 700 jobs and generating $25 million in foreign currency revenue over the past two years. As reported in Iranian petrochemical industry news, several of the country’s petrochemical projects have been launched using domestic catalysts. Furthermore, several petrochemical, oil refining, and steel complexes around the world are now operating with catalysts from this knowledge-based company.

When Sarv Oil and Gas first entered the catalyst production arena, only three major catalyst producers were prominent in the world: Johnson Matthey of the UK, Haldor Topsoe of Denmark, and Clariant of Germany. Following the imposition of sanctions against our country, various petrochemical, refinery, and steel units grew concerned about their catalyst supplies. Fortunately, Sarv not only met the domestic demand but also succeeded in playing a significant role in global markets for the nation’s economy. Considering cultural affinity, strategic thinking, and promising markets, Sarv Oil and Gas began its export activities in the Middle East, Eurasia, and South America. The groundwork for these exports and the company’s infrastructure was initiated six years ago in the Russian market, leading to the Iranian company successfully exporting its first catalysts to Iraq in 2019, and subsequently to Venezuela.

Of the seven total catalysts operating in an ammonia plant in Iraq, six belong to Sarv Oil and Gas Company. This success was achieved even as global companies and our international competitors were simultaneously participating in Iraqi tenders. Subsequently, since 2022, approximately 700 cubic meters of catalyst have been exported annually to the Russian market, which generated $25 million in foreign currency revenue for the country in 2022 and 2023. As a result of its export activities, Sarv Oil and Gas Company was invited as a strategic partner to the specialized Syngas and Hydrogen Conference in Russia, where it presented its latest achievements in catalyst production. This event is the most important conference for the petrochemical and oil refining industry in Russia, one of the world’s petrochemical hubs.

Steam Reforming Catalyst: The Pinnacle of Sarv Oil and Gas Products Sarv currently produces over 30 types of catalysts, all of which are knowledge-based products embodying complex and advanced science. Among these, the methanol synthesis catalyst and the acetylene hydrogenation catalyst can be noted as the most strategic catalysts produced by Sarv Oil and Gas and utilized in the industry.

However, among these, Sarv’s steam reforming catalyst is recognized as the first to be commercialized in the country, with 57 usage references recorded in Iran to date, as well as several uses in foreign countries. Regarding the features and advantages of this type of catalyst compared to its foreign counterparts, it must be said: Sarv Oil and Gas Company’s primary steam reforming catalyst possesses a higher specific surface area and greater mechanical resistance than its competitors. These two factors have resulted in Sarv’s catalyst having better activity and a longer lifespan compared to its rivals. The outstanding performance of this catalyst in Iranian units has been confirmed through official documents and certificates, and active complexes in Russia have also noted that Russian units are fully satisfied with this catalyst’s performance.

Product Portfolio Expansion: A Special Focus for Sarv Oil and Gas Over the past decade, Sarv Oil and Gas has consistently taken great strides in advancing the country’s new and strategic industry by introducing its commercialized products. Each year, by unveiling new products, it has strived to meet the technological needs for process catalysts in the nation’s petrochemical, refining, and steel industries. It can now be said that several of the country’s petrochemical and refining complexes have become fully operational using catalysts from Sarv Oil and Gas. This is an advantage that the Iranian company has earned for itself through two decades of effort.

In other words, we should not pass over this achievement lightly. This capability—the ability to produce a full suite of process catalysts and have several industrial complexes use them—can only be found in the records of three reputable global companies: Clariant of Germany, Johnson Matthey of the UK, and Haldor Topsoe of Denmark. What is noteworthy is the operational history of these foreign companies, which extends to over 210 years. Therefore, a 20-year-old Iranian company has managed to raise the Iranian flag alongside these giants.

Among the company’s significant achievements are the production and supply of 8,000 tons of direct reduced iron (DRI) catalysts and the loading of 27 DRI reformers in the country using its own manufactured catalysts. Furthermore, Sarv Oil and Gas has achieved remarkable success in the mass production and loading of desulfurization catalysts used in the steel and petrochemical industries, to the extent that currently over 70% of the country’s steel is produced using catalysts from this knowledge-based company. These accomplishments demonstrate the high capability and expertise of Sarv Oil and Gas in meeting the critical needs of the nation’s key industries.

Apart from the country’s steel companies—where 26 domestic steel reformers and one reformer abroad in Russia have been brought online entirely with Sarv Oil and Gas catalysts (including desulfurization, inert, semi-active DRI, and active DRI catalysts)—a total of 57 domestic and 13 foreign references have been registered for the use of just one type of its catalyst (primary steam reforming catalyst). Alongside this, the complete commissioning of Masjed Soleyman Petrochemical with Iranian catalysts can be mentioned.

Additionally, the new phase of the Isfahan Refinery for hydrogen production has also come online with catalysts from Sarv Oil and Gas. The commissioning of the newly established Hengam Petrochemical with Sarv’s catalysts, as well as Arian Methanol Petrochemical, are other complexes that have become fully operational with Iranian catalysts. At the beginning of the current year, with the use of the commercialized acetylene hydrogenation catalyst produced by Sarv Oil and Gas, the monopoly of Germany’s Süd-Chemie in Iran’s ethylene industries effectively ended. The strategic need for hydrogenation catalysts in Iran’s olefin units was met through cooperation between Morvarid Petrochemical Company and Sarv Oil and Gas, with Morvarid Petrochemical successfully replacing the foreign equivalent with the Iranian acetylene hydrogenation catalyst produced by Sarv.

In this regard, a contract for the commercialization of another critical catalyst in the methanol sector was also recently signed between Fanavaran Petrochemical Company and Sarv Oil and Gas. Dr. Hossein Rafighdoust, CEO of Fanavaran Petrochemical, said in this connection: “This is a new technology that directly converts carbon dioxide to methanol. The technology and catalyst for this were previously held by Germany, but we developed this with our friends at Sarv Oil and Gas. The technology in this new project is also completely knowledge-based and Iranian, and 100% of the required catalyst has been made at the knowledge-based Sarv Oil and Gas company to convert carbon dioxide to methanol, and this technology has reached the manufacturing stage.”

He added: “Fanavaran Petrochemical has always been a pioneer in localizing and manufacturing catalysts with Iranian knowledge-based companies, and Sarv is one of the strongest catalyst manufacturing companies in the country. Among these, the last remaining catalyst is the ‘methanol synthesis’ catalyst, for which we also have plans, and the work has been done. God willing, we will load our last reactor with the Iranian methanol synthesis catalyst as well.”

In another recent commercialized product development, Sarv Oil and Gas unveiled the technical know-how and catalysts for KHT and NHT in collaboration with the Research Institute of Petroleum Industry (RIPI). Dr. Azim Kalantariasl, President of RIPI, at the unveiling ceremony for the catalyst and technical knowledge of these two catalysts, referred to the collaboration with Sarv Oil and Gas on the industrialization and prototyping of the KHT and NHT catalysts, and had said: “We are prepared to focus on this type of work where the research institute excels in one part and can perform it well, while companies handle the other part. We hope to undertake more joint projects with Sarv Oil and Gas. Young knowledge-based companies are successful examples in this regard. Every successful model that is created paves the way for expanding cooperation at the national level for others as well.”

Sarv Oil and Gas’s Focus on Sustainable Development of the Catalyst Industry and the Nation’s Petrochemical Value Chain Significant strides have also been taken in the sustainable development of the catalyst industry. Recently, an agreement was signed for the construction of a 50,000-ton nitric acid production unit aimed at localizing the country’s nitric acid industry, between Sarv Oil and Gas Company, Karoon Petrochemical Company, and Saff Offshore Industries Company (SAFF).

Dr. Alireza Sedighizadeh, CEO of Karoon Petrochemical, stated in this regard: “The technical know-how for nitric acid production was, until this moment, monopolized by American companies. However, through the efforts of the research and development department at Karoon Petrochemical and our operational units, we were able to acquire the scientific knowledge for this and localize its production and process. If the door to nitric acid technical knowledge is opened in the country, a revolution will occur in the petrochemical industry.”

Regarding the signing of the agreement with Sarv for the construction of a 50,000-ton nitric acid production unit, he added: “Given that Sarv Oil and Gas was a customer for Karoon’s nitric acid, the company applied to build its own production line and invest in this area. Naturally, these types of investments are aligned with the production chain.” The CEO of Karoon Petrochemical, while emphasizing the need for patience in navigating this agreement, added: “Localizing this knowledge is the first step after the engineering work to implement a reference plant for it. Our reference plant is in the Mahshahr region at Karoon Petrochemical, which is currently in production, so that we can deploy this technical knowledge in various capacities. Additionally, other measures have been taken regarding catalyst supply and process optimization, and we are looking to offer this knowledge to domestic and foreign companies.”

Amir-Homayoun Karimi Vasigh, CEO of Sarv Oil and Gas Company, also commented on the construction of the 50,000-ton nitric acid unit: “Although nitric acid has a long history of production, its consumption is closely tied to various industries. Therefore, building a nitric acid production plant will be in line with the sustainable development of the country’s catalyst industry. By building the nitric acid plant, we will witness the removal of fundamental bottlenecks in the catalyst industry, such that the launch of this plant will be effective in expanding the production line capacity of Sarv Oil and Gas’s factories.”

Stating that the establishment and launch of this plant is a beneficial project for the country and can have a long-term impact on the downstream petrochemical industries, he said: “In this way, Sarv can offer better services within its product portfolio. After completing the administrative formalities for signing the cooperation agreement, God willing, we can see the blessings of this agreement in the near future.”

In line with its mission and in order to enhance the scientific and technical capabilities of specialists in the steel, petrochemical, and oil refining industries, the company annually organizes specialized workshops and training courses in the field of catalyst technology. Furthermore, by authoring and publishing specialized books related to this industry, the company strives to provide necessary technical information and knowledge to specialists and experts.

Additionally, the first Innovation and Technology Center for the catalyst industry was inaugurated by Sarv Oil and Gas at the beginning of the current year in collaboration with Amirkabir University of Technology. In this way, Sarv Oil and Gas has fulfilled its share of social responsibility within the innovation and technology ecosystem.

Therefore, as an Iranian unicorn company, Sarv Oil and Gas can, by continuing its export activities, not only increase its share of the knowledge-based economy’s pie but also boost hope among the country’s youth and establish itself as a reliable arm for the nation’s petrochemical, refining, and steel industries. It is a company that possesses technical know-how and offers unique technical and engineering services, which can lead the global oil and gas industry to view Iran as a leading country in the strategic and high-technology catalyst industry.