Vioneo awards Wood engineering contract for fossil-free plastic plant in Antwerp

Vioneo is moving forward with its plans to build a 300,000 tonnes/year polypropylene (PP) and polyethylene (PE) plant using green methanol as feedstock in the Port of Antwerp, Belgium, as per Sustainableplastics.

The company was established in September 2024 as a subsidiary of A.P. Moller Holding, the investment group of Danish shipping and logistics company M?rsk.

Vioneo has awarded engineering company Wood a multi-million dollar front-end engineering design contract for the plant. Wood will apply its experience in delivering sustainable and innovative engineering solutions to large-scale energy transition projects.

“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,” said Gerry Traynor, president of eastern hemisphere projects at Wood. “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.”

The plant will use Honeywell’s methanol-to-olefin (MTO) technology to produce plastics without the need for traditional feedstock made from fossil fuels.

Honeywell's MTO technology will enable Vioneo to use green methanol, containing only biogenic carbon, in place of coal and crude oil in PP and PE production.

MTO technologies use specialised catalysts in a fluidised bed reactor to promote the conversion of methanol into ethylene, propylene, and water.

The planned plant will require a €1.5 billion investment, with commercial operations expected to start during 2028.

Methanol is an essential multi-purpose raw material for the chemical industry, with many applications throughout the wider industry. Currently, methanol is produced using fossil-based raw materials, which emits carbon dioxide from the process. Green methanol, on the other hand, is produced from low-carbon sources such as green hydrogen, carbon capture, or biomass.

PP and PE production at Antwerp will be powered by renewable electricity to further reduce greenhouse gas emissions. The plant is expected to reduce CO2 emissions by 1.5 million tons in comparison with fossil-based plastic production.

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OMV AG and Abu Dhabi Future Energy Co. PJSC (Masdar) have signed a letter of intent to collaborate on producing renewable power-generated hydrogen and derivatives, as per company.

The partnership would involve producing synthetic aviation fuel and other synthetic fuels, as well as synthetic chemicals, in Austria, the United Arab Emirates and northern and central Europe.

“By leveraging our combined capabilities, Masdar and OMV are looking to produce green hydrogen and derivatives at industrial scale, supporting decarbonization efforts and building the green hydrogen value chain”, Masdar chief green hydrogen officer Mohammad Abdelqader El Ramahi said in a joint statement Wednesday.

Martijn van Koten, OMV executive vice president of fuels, feedstock and chemicals, commented, “Our exploration of new opportunities with Masdar in green hydrogen and sustainable synthetic fuels is aiming to deliver concrete business opportunities, as well as to provide a bold step toward reshaping industries and accelerating decarbonization. Together, we aim to drive innovation and set new standards for sustainable solutions both in Austria and the UAE”.

State-owned Masdar has set an aim to reach production of 1 million metric tons of renewable hydrogen and derivatives a year by 2030.

OMV, partly owned by the Austrian government, wants to fuel its refineries with green electrolytic hydrogen to help achieve its goal of Scope 1-3 net-zero emissions by 2050. Green electrolytic hydrogen is derived from water using a renewable energy-powered process.

Also on Wednesday OMV announced the start of production at its first commercial-scale green hydrogen facility, built at home with an annual capacity of 1,500 metric tons.

The plant, located at OMV’s Schwechat refinery, uses a 10-megawatt PEM (polymer electrolyte membrane) electrolyzer powered by hydro, solar and wind energy. The process avoids up to 15,000 metric tons of carbon dioxide (CO2) emissions a year, equivalent to the CO2 consumption of 2,000 persons per year based on a European Union average, according to OMV.

Output will be used to decarbonize the refinery and produce more sustainable fuels and chemicals including sustainable aviation fuel and renewable diesel.

“With the start-up of Austria's largest electrolysis plant, we are re-inventing how essentials we use in everyday life are produced sustainably”, Van Koten said.

“By building robust local production and supply chains for green hydrogen in Europe, OMV is not only advancing climate goals but also safeguarding industrial progress”, the OMV board member added.

“The expertise gained from this initiative will act as a springboard for pioneering projects, laying the foundation for a cleaner, more resilient tomorrow”.

“The plant is certified according to the Renewable Energy Directive (EU) 2018/2001 (RED II) for producing RFNBOs (renewable fuel of non-biological origin)”, the company said.

The project had an investment of about EUR 25 million ($28.31 million), with support from the government’s Climate and Energy Fund.

In other news OMV reported EUR 288 million in net profit for the first quarter (Q1), down 57 percent from Q1 2024; EUR 143 million in net income attributable to parent company shareholders, down 70 percent; and EUR 0.44 in earnings per share.

Sales revenue from continuing operations was “stable” at EUR 6.22 billion compared to EUR 6.26 billion for the corresponding three-month period in the prior year, OMV said.

Fuel and feedstock sales generated EUR 3.82 billion, down year-on-year. Energy sales totaled EUR 2.22 billion, also down by prior-year comparison. Chemical sales registered EUR 171 million, up year-over-year.

Cash flow from operating activities came at EUR 1.34 billion. Free cash flow landed at EUR 317 million.

“OMV has had a profitable start to 2025 amid challenging market and geopolitical conditions”, said chair and chief executive Afred Stern.

OMV exited the January-March 2025 period with EUR 12.68 billion in current assets including EUR 5.68 billion in cash and cash equivalents. Current liabilities stood at EUR 7.74 billion.

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Dow Inc. (Midland, Michigan) is expanding the scope of its European asset review and delaying the construction of its Path2Zero project in Ft. Saskatchewan, Alberta, Canada, as per Chemweek.

Three European assets outside the polyurethanes segment have been targeted for idling or shutdown. “Taken together, these new and previously announced actions total approximately $6 billion in cash support to effectively manage the extended downcycle,” the company said in its first-quarter earnings release on April 24.

“The significant impact of slower GDP growth and volatile market conditions on our industry underscores the importance of our proactive management and best-owner mindset,” said Jim Fitterling, chair and CEO. “Today’s announcements build on Dow’s cost actions that are already underway, aiming to further strengthen our financial flexibility and support a balanced capital allocation approach.”

When Dow announced its European asset review in October 2024, the company said it would focus on the polyurethanes segment, but the review has been extended to the rest of the business. “Dow has identified three initial assets across all of its operating segments that it believes will require further action,” Dow said. These assets “represent higher-cost, energy intensive upstream portions of the company’s portfolio,” the company added.

Dow’s basics siloxanes plant in Barry, UK, part of the performance materials and coatings segment, is to be shut down. The company’s ethylene cracker in Bohlen, Germany, part of the packaging and specialty plastics segment, is on the block for idling or shutdown. Chlor-alkali and vinyl assets in Schkopau, Germany, part of the industrial intermediates and infrastructure segment, is also being considered for idling or shutdown.

Dow cited Europe’s high energy costs, weak demand growth and challenging regulatory environment.

”If you look at Europe overall, we have not seen a return to pre-COVID levels. In fact, it’s about 20% below pre-COVID levels,” Jeff Tate, Dow CFO, told CW.

Tate emphasized that the Path2Zero project in Canada will proceed when market conditions improve. “We are still fully committed to the project, and the strategic rationale for the project still makes great financial and strategic sense for the company moving forward,” he said.

Tate said $6 billion in cash support, 80% of which is expected in 2025, will help the company navigate the extended industry downturn. The company remains on track to deliver $300 million of the $1 billion in targeted cost reductions announced during the company’s fourth-quarter earnings call, he said, with the remainder to follow by the end of 2026. The company has additionally increased its capital spending reduction target for 2025, formerly $300 million-$500 million, to $1 billon.

Tate said Dow’s US Gulf Coast infrastructure joint venture with Macquarie Asset Management, announced in December, is on track to be realized on May 1. That deal will immediately bring in $2.4 billion in cash. If Macquarie chooses to increase its initial 40% stake to 49% within the first six months, Dow would gain further $600 million.

Dow also expects to receive over $1 billion this year from Nova Chemical stemming from a legal dispute related to their joint venture ethylene cracker in Joffre, Alberta.

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Rossari Biotech Ltd. (Mumbai) said its affiliate Unitop Chemicals Pvt. Ltd. plans to increase the production capacity by 18,500 metric tons per year, as per Chemweek.

It will commence operations in a phased manner by the fourth quarter of fiscal year 2025–26. The cost of the project is 770 million Indian rupees ($9 million).

Rossari said the project is “intended to accommodate new product lines. It aligns with market demand forecasts and enhances the competitive edge in the domestic and export markets.”

Unitop Chemicals’ product portfolio includes ethoxylates, polysorbates, alkoxylates, propoxylates, oil field chemicals, textile chemicals, sulfates, esters and polyethylene glycols.

Rossari’s another subsidiary Tristar Intermediates Pvt. Ltd. has decided to increase its capacity by 3,600 metric tons per year. Its current capacity is 15,000 metric tons per year. This project is expected to be commissioned by the fourth quarter of fiscal year 2025–26. The cost of the project is 200 million Indian rupees.

Tristar produces preservatives, aroma chemicals, and personal care and homecare additives.

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Shin-Etsu Chemical Co. reported a 2.7% increase in net profit for the financial year ended March 31, to Yen534 billion ($3.6 billion). Operating income rose 5.9% to ?742 billion, on sales of Yen2.5 trillion, up 6%, as per Chemweek.

Operating income at Shin-Etsu’s infrastructure materials business declined by 9% to Yen291.4 billion on sales of ?1.0 trillion, up 3%. “As for PVC, the prices rose in major regions from April to June last year and further improved or maintained their levels from July to September, but the situation varied from region to region from October to December.” It added, “A s for caustic soda, the company raised the prices for the period of April to June last year, and since then the prices have kept going up and down, but they have improved from January to March this year.”

Shin-Etsu’s electronic materials business recorded a rise of 19% in operating income, to ?324.7 billion, on sales that also improved by 10%, to ?934.3 billion. In the semiconductor market, the recovery from the adjustment phase has been patchy depending on the application and sector. It focused on shipping semiconductor materials such as silicon wafer, photoresist and photomask blanks to the markets with strong growth. As for rare earth magnets, while the company met the strong demand of hard disk drive applications, it focused on expanding the sales to automotive markets.

In Shin-Etsu’s functional materials segment, operating income rose 18% to Yen100 billion, with sales also rising by 6% to ?488.6 billion. The company said in the commodity product group, inventory adjustment and the slowdown in the market caused by the slump in the Chinese economy continued, but it “continued to make up for the sales by expanding the selling of highly functional product groups.”

Shin-Etsu’s other business unit is processing and specialized services.

The company said that it is “difficult to make a reasonable prediction of the performance at this point” for the full financial year ending March 31, 2025. It has only issued an outlook for the fiscal first quarter ending June 30. The company expects fiscal first-quarter net income to be ?120.0 billion, down 16.7% on the year, on sales of Yen610 billion, up 2%.

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