Ineos Olefins Belgium has raised €3.5 billion euros in financing to fund the construction and operation of the most sustainable cracker in Europe. The new cracker located in Antwerp will have the lowest carbon footprint of all European crackers, five times better than the worst in Europe and two times better than the best. The plant is designed to use low-carbon hydrogen. As soon as enough of it is available, the cracker will operate in a carbon-neutral way. Jason Meers, CFO of Ineos Project ONE: ”This is an incredibly important moment for Ineos. Our ethane cracker will set new environmental standards for Europe as well as help revitalise the whole of the European chemical industry.”
The project, called Project ONE, is the largest investment in the European chemical sector for a generation. The plant will have the lowest carbon footprint in Europe, three times lower than European steam crackers on average and less than half the top ten per cent in Europe. The plant also has the capability of operating entirely with low carbon hydrogen as well as room for a carbon capture facility and future electric furnaces.
21 commercial banks support financing
Supported by 21 commercial banks, the deal validates the strong commercial rationale of the project and its leading environmental characteristics. The debt will be drawn in stages to support the spend profile of the project through to completion. It comprises 1.5 billion euros of uncovered debt, 1.2 billion euros of covered facilities from export credit agencies UKEF, Cesce and SACE; and an 800 million euros covered tranche of which up to 500 million euros is guaranteed by Gigarant (a vehicle of the Flemish Government that provides loan guarantees). Jason Meers: „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.“
Project ONE: state-of-the-art cracker plant
Project ONE is not only the largest investment in the European chemical sector in the past 20 years. It will also be one of the most efficient and sustainable chemical complexes in Europe. Commissioning is scheduled for 2026.
The new plant complex includes an ethane cracker to produce 1450 kt of ethylene per year. Ethylene is the most important chemical building block for a variety of high-value products. These include, for example, disinfectants, plastics for pipelines, insulation and insulating materials, and components for wind turbines and solar panels as well as cars and aircraft.
