Wood wins contract for fossil-free plastics plant – Daily Business

Wood Group’s engineers are to design the first chemicals plant capable of manufacturing fossil-free plastics on an industrial scale.

Plastcis startup Vioneo, an offshoot of the AP Moller Group, has awarded the Scottish firm’s consultancy division the contract for work on the site in Antwerp, Belgium.

The facility will be powered by renewable energy and use green methanol to produce polyethylene and polypropylene.

Alex Hogan, chief executive at Vioneo, a former executive at Ineos, said: “Vioneo is driving the transition of the plastics industry by demonstrating the economic viability of large-scale, cleaner production using green methanol instead of fossil fuels.

“This initiative offers Europe the opportunity to lead the €5 trillion chemicals and materials sector’s defossilisation. Our collaboration with Wood is a crucial step in realising this vision.”

Gerry Traynor, president of eastern hemisphere projects at Wood, said: “Demand for fossil-free plastics in Europe is growing and Vioneo is developing an exciting project that will accelerate the decarbonisation of Europe’s plastics sector.

“Wood’s strong track record of delivering world-first projects of this size and scale will support Vioneo’s ambitions of becoming the leading producer of fossil-free plastics in Europe.”  

Vioneo is owned by AP Moller Holding, the investment arm of AP Moller Group and was launched as part of its commitment to advancing green methanol production and promoting sustainable practices in the plastics industry.  

Vioneo is building its facility at the Vopak Energy park in the Port of Antwer, about two kilometres north of a site where Sir Jim Ratcliffe’s Ineos wants to make plastics.

Ineos is building a new steam cracker named Project One and also pitches its steam cracker as a climate solution.

It says its steam cracker, unlike most other crackers in Europe, will use ethane instead of naphtha and has lower emissions than most of its competitors.

However, Project One will depend on fossil fuels both for its energy and its feedstock. The €3bn project was halted last summer after a landmark court victory by NGOs. They successfully argued that Ineos failed to tell the authorities the full extent of the project’s predicted impact on the surrounding environment

The location of the two plants in the areas is largely because Antwerp is one of the largest and most attractive sites for chemical plants in Europe.

Wood Group is currently in talks with Dubai-based Sidara about an all-cash takeover.