Project ONE: Revolutionizing Europe's Chemical Industry with a Low-Carbon Footprint

Image Source: INOES

When it comes to Europe's chemical industry, Project ONE is the biggest investment in a generation. The new Antwerp cracker will have a carbon footprint five times smaller than the worst in Europe and two times smaller than the best in Europe. The facility is set up to run on low-carbon hydrogen. Once there is enough, the cracker will produce no carbon dioxide. According to INEOS Project ONE's Chief Financial Officer Jason Meers, "This is an incredibly important moment for INEOS" When completed, the ethane cracker will revive the whole European chemical sector and usher in a new era of environmental responsibility in Europe.

On 13th Feb 2023, INEOS Olefins Belgium successfully funded €3.5 billion to fund the building and operation of Europe's most environmentally sustainable cracker. For the European chemical industry, this is the single largest investment in a single project in the last several decades. Compared to other plants in Europe, this one will have a carbon footprint that is three times smaller than the typical European steam cracker and less than half the size of the plants in the top 10%. The plant can run on low-carbon hydrogen alone, and there's space for a carbon capture facility and potential electric furnaces down the line.

"Project ONE is a game changer for Europe," says Jason Meers, INEOS Project ONE's chief financial officer. It will boost the resilience of the entire European chemical sector and provide new prospects for Antwerp's chemical cluster. The solid commercial justification of the project and its leading environmental attributes are validated by the contract, which was supported by 21 commercial banks.

The debt will be repaid in installments to match the project's spending pattern from start to finish. It includes a €1.5 billion uncovered debt component, a €1.2 billion covered facility component from export credit agencies UKEF, Cesce, and SACE, and an €800 million covered tranche, of which up to €500 million is guaranteed by Gigarant (a vehicle of the Flemish Government that provides loan guarantees).

INEOS Project ONE's Chief Financial Officer, Jason Meers, comments, "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" 

From insulation to lightweight automobiles, plastics for medical, healthcare, and food hygiene to renewable energy technology, ethylene, which the cracker will produce, is a crucial raw material.