A.P. Moller Holding Pours Investment into Fossil-Free Plastic Production in Antwerp

A.P. Moller Holding has unveiled Vioneo, a new initiative focused on revolutionizing plastics production. Vioneo intends to create fossil-free plastic resins, drastically reducing the carbon footprint associated with plastic production. The plastics industry faces major environmental hurdles due to its reliance on fossil feedstocks and inadequate end-of-life recycling solutions. Given the critical role of plastics in sectors such as healthcare and food packaging, it is essential to develop and commercialize fossil-free production methods to achieve net-zero targets by 2050.

Vioneo has crafted a production technique that leverages innovative, proven technology to generate fossil-free polypropylene (PP) and polyethylene (PE) at scale, utilizing green methanol as feedstock. This method guarantees a completely segregated and traceable supply chain, preventing the mixing of certified and non-certified materials. Renewable electricity will power the production, leading to a substantial decrease in greenhouse gas emissions. The resulting products will be 100% fossil-free and ISCC Plus certified, suitable for diverse applications across sectors like medical devices, consumer goods, automotive, and packaging.

Jan Secher has been appointed Chair of Vioneo's Board of Directors, bringing decades of leadership experience, including previous roles as CEO of Clariant AG and Perstorp Group. Alex Hogan will take on the role of Chief Executive Officer on November 11, 2024, having previously served as Business Director at INEOS Olefins and Polymers, with extensive expertise in large-scale industrial management.

“A.P. Moller Holding is dedicated to facilitating the transition to low-carbon and fossil-free sources by promoting green methanol production and its application across various sectors. The launch of Vioneo is a pivotal step in this endeavor. With Jan Secher and Alex Hogan at the helm, I am confident Vioneo is poised to lead the shift toward a more sustainable plastics and chemicals industry. However, success relies on the willingness of other key stakeholders to collaborate,” stated Jan T. Nielsen, Chief Investment Officer of A.P. Moller Holding.

“Vioneo signifies a strategic pivot in plastics production. By leveraging advanced technologies and green methanol, we are tackling the fundamental environmental challenges of traditional plastics, while creating a significant opportunity for Europe to spearhead the defossilization of the €5 trillion global chemicals and materials sector, positioning the continent at the forefront of this transition. “We are thrilled to spearhead this transformation and promote a more sustainable future for the plastics industry,” stated Jan Secher, Chair of Vioneo. Vioneo plans to establish its first production facility in Antwerp, Belgium, which is Europe’s largest integrated chemical cluster. The Antwerp plant will benefit from the region's chemicals expertise, robust export infrastructure, and access to renewable energy. The project will require an investment of nearly €1.5 billion in equity and debt, contingent on broad stakeholder support, updated regulatory frameworks, and policies that foster a competitive environment for fossil-free plastics, as well as improved conditions for the European chemicals sector, such as reduced energy costs. Furthermore, the venture’s success hinges on securing long-term offtake agreements with customers.

Vioneo is currently in advanced discussions with several major global brands across various industries, including healthcare, automotive, fast-moving consumer goods, beauty, and home products. The planned development of the Antwerp facility will unfold in phases, with a Front-End Engineering Design (FEED) scheduled to commence in Q4 2024 and a potential Final Investment Decision (FID) anticipated in 2025. Commercial operations could begin in 2028.