Europe’s Most Environmentally Sustainable Cracker to be Built with €3.5bn Funding

(IN BRIEF) INEOS Olefins Belgium has secured €3.5 billion in funding to construct and operate Europe’s most environmentally sustainable cracker. The plant will have a lower carbon footprint than the average European steam cracker and is capable of operating solely on low carbon hydrogen. The project is backed by 21 commercial banks and four governmental agencies, including UKEF, Cesce, SACE, and Gigarant. The INEOS Olefins Belgium cracker will produce ethylene, a crucial raw material used in a variety of everyday products. This investment represents the largest in the European chemical sector in a generation.

(PRESS RELEASE) LONDON, 13-Feb-2023 — /EuropaWire/ —  INEOS, a global chemical company, announces that INEOS Olefins Belgium has secured €3.5 billion in funding for Project One, a revolutionary new plant that will set a new standard for environmental sustainability in the European chemical sector. The plant is set to have the lowest carbon footprint in Europe, producing emissions three times lower than the average European steam cracker and less than half that of the top 10% performers in Europe.

Project One has been designed to operate entirely with low carbon hydrogen, and there is room for a carbon capture facility and future electric furnaces. It will be the most environmentally sustainable cracker in Europe, and will help INEOS to meet its commitment to reducing its greenhouse gas emissions.

Jason Meers, CFO INEOS Project ONE says “Project ONE is a game changer for Europe. It will bring new opportunities to the chemical cluster in Antwerp as well as strengthen the resilience of the whole of the European chemical sector”.

The funding for Project One has been secured from 21 commercial banks, including a number of environmentally focused institutions, and four governmental agencies, including UKEF, Cesce, SACE, and Gigarant. The financing package comprises €1.5 billion of uncovered debt, €1.2 billion of covered facilities from export credit agencies, and an €800 million covered tranche, of which up to €500 million is guaranteed by Gigarant.

Project One will produce ethylene, a vital raw material used in a wide range of everyday products, including insulation, lightweight vehicles, plastics for medical, healthcare, and food hygiene, and technology for renewable energy. The success of this project demonstrates the importance of developing more sustainable practices in the chemical sector, and will help to drive innovation and progress across the industry.

Jason Meers, CFO INEOS Project ONE adds: “We are thrilled to reach this milestone and secure this funding.  Bringing together such a large number of environmentally focused commercial banks alongside four governmental agencies demonstrates the huge importance of the project.

Overall, Project One represents a major step forward in environmental sustainability for the European chemical sector. With a lower carbon footprint and the ability to operate entirely with low carbon hydrogen, this revolutionary new plant sets a new standard for environmental responsibility and will help to reduce greenhouse gas emissions in the sector.

ENDS 

Richard Longden (richard.longden@ineos.com)   +41 7996 26123
Andrew McLachlan (andrew@mediazoo.tv)           +44 7931 377162
Alex Williams (alex.williams@mediazoo.tv)             +44 7793 207325

Note to editors

About INEOS

INEOS is a global manufacturing company making the raw materials and energy used for everyday life. Its products make an indispensable contribution to society by providing the most sustainable options for a wide range of societal needs. For example, preservation of food and clean water; construction of wind turbines, solar panels and other renewable technologies; for construction of lighter and more fuel-efficient vehicles and aircraft; for medical devices and applications; for clothing and apparel; and for insulation and other industrial and home applications.

INEOS businesses have put in place the plans and actions needed to ensure that they lead the transition to a net zero economy by no later than 2050, whilst remaining profitable, and staying ahead of evolving regulations and legislation. As part of its greenhouse gas emission reduction strategy, there is a widespread goal to move to a more circular economy, in which materials are re-used to their maximum extent.

About Project ONE

State-of-art plant to produce ethylene, one of the most widely used basic chemicals in the world.  Lowest carbon footprint of all European crackers, less than half the amount of the 10% best performers

Investment of around €4 billion in port of Antwerp

2,500 workers on site at the peak of construction. 450 new jobs (300 payroll, 150 permanent contractors) and thousands of indirect jobs.  Construction plant duration 4 years – start-up expected in 2026

Exceptional Investment of the Year Award (Flanders Investment & Trade, 2020)

About the financing

Total facility size is €3.5 billion including a €1.5 billion uncovered tranche, a €700 million UKEF covered tranche, a €400 million Cesce covered tranche, a €100 million SACE covered tranche and an €800 million Gigarant covered tranche, of which up to €500 million is guaranteed by Gigarant.

ABN Amro, Barclays, Belfius, BNP Paribas, Deutsche Bank, ING, Intesa Sanpaolo (also SACE Agent), KBC (also Gigarant Agent), MUFG and NatWest acted as Bookrunners and Mandated Lead Arrangers.  Credit Agricole (also uncovered and UKEF Agent), Commerzbank, Goldman Sachs, HSBC, JP Morgan, KfW IPEX-Bank and Santander CIB (also Cesce Agent) acted as Mandated Lead Arrangers.  Banco BPM, Citi, DZ BANK and Mizuho Bank were participants.

INEOS was advised by BNP Paribas and Linklaters.  Counsel to the lenders was Allen & Overy, with ING coordinating the ECAs and KBC coordinating the Gigarant covered tranche.

SOURCE: INEOS