British chemical company Ineos recently announced that it has secured €3.5 billion in financing for the construction of a petrochemical plant in Antwerp, Belgium. This site will produce ethylene, one of the most widely used commodity chemicals in the world. The group said the project would be “the largest investment in the European chemical sector in a generation” and would have “the lowest carbon footprint” of any equivalent facility on the continent.
The Ineos project in Belgium
Ineos, headed by British billionaire Jim Ratcliffe, had announced plans to build the plant in 2019. At the time, the cost was estimated at €3 billion, but the company has since clarified that the total investment will be around €4 billion. The new plant, which will produce ethylene, will eventually employ 450 people and is scheduled to open in 2026.
The Antwerp site will be “Ineos’ most environmentally friendly plant”, according to the company. It will be able to run entirely on hydrogen and will be equipped to install a carbon capture unit and future electric furnaces.
Financing from debt and loans
3.5 billion in financing was provided mainly by debt from commercial banks and loans from export credit agencies, notably UK Export Finance (UKEF).
Ethylene, an essential chemical
Ethylene is used in various fields such as insulation, plastics for the health and food hygiene sector, renewable energy technologies and in light vehicles. The global ethylene market is expected to grow significantly over the next few years, which makes the Ineos project particularly promising.
