INEOS Raises €3.5 Billion to Build Chemical Plant with Capability for Zero Carbon Footprint
Chemical company INEOS announced today that it has secured €3.5 billion in financing for the construction and operation of “Project ONE,” referred to as the “greenest cracker in Europe,” by the company, and capable of operating with zero carbon footprint if powered by hydrogen.
With anticipated nameplate capacity of 1450kt of ethylene per year, the project also marks the largest investment in the European chemical sector in over 20 years.
Jason Meers, CFO INEOS Project ONE said:
“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.”
Located in Antwerp, Project ONE consists of a cracker that will convert ethane to ethylene, a raw material used for applications including plastics, insulation, textiles and packaging, among others. Cracking breaks down large molecules into smaller ones at very high temperatures, typically using significant amounts of energy from fossil fuel sources.
According to INEOS, Project ONE will be the most energy-efficient production site in Europe, with a carbon footprint three times lower than the average European steam cracker, and less than half that of the 10% best performers in Europe.
In addition, the plant is being built to be capable of operating entirely with low carbon hydrogen, and with room for a carbon capture facility. INEOS said that once enough low carbon hydrogen is available, the cracker will have a zero carbon footprint.
The financing announced today includes €1.5 billion of uncovered debt, €1.2 billion of covered facilities from export credit agencies UKEF, Cesce and SACE, and an €800 million covered tranche. The deal was supported by a consortium of 21 commercial banks.
Meers added:
“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.”