A.P. Moller kicks off venture to transform green methanol into fossil-free plastics
(Image credit: A.P. Moller Holding).
A.P. Moller has launched Vioneo, a new venture to manufacture fossil-free plastic resin. Vioneo has designed a production technology to produce fossil-free PP and PE at scale, using green methanol as feedstock.
Commercial operations may commence in 2028. The venture is in advanced discussions with several “major global brands” from various industries, including healthcare, automotive, fast-moving consumer goods, beauty and home products.
The technology avoids mixing non-certified and certified feedstocks, supporting a fully segregated and traceable supply chain. Production will be powered by renewable electricity, significantly reducing GHG emissions, highlights A.P. Moller.
The end product will be 100% fossil-free and ISCC Plus certified, suitable for applications across all sectors including packaging, medical, home goods and automotive.
Vioneo intends to establish its first production complex in Antwerp, Belgium, Europe’s largest integrated chemical cluster. The Antwerp plant will benefit from the region’s chemical industry expertise, export facilities and access to renewable energy.
The production plant and supply base will require an investment of nearly €1.5 (US$1.7) billion of equity and debt.
“The funding depends on broad stakeholder support, including updated regulatory frameworks and policies supporting a competitive environment for fossil-free plastics, as well as better conditions for the European chemicals industry, such as lower energy costs,” maintains A.P. Moller.
“Furthermore, the success of the venture requires long-term offtake agreements of its customers.”
Vioneo’s projected plans for the Antwerp-based plant will proceed in phases, with a Front-End Engineering Design set to begin in Q4 2024 and with potential Final Investment Decision in 2025.
Newly appointed leadership
Jan Secher, chair of Vioneo, believes a “strategic shift” in plastics production is in play. Newly appointed to the venture’s board of directors, he brings decades of leadership experience, including being CEO of Clariant and Perstorp Group.
He comments: “By adopting advanced proven technologies and green methanol, we are addressing fundamental environmental challenges associated with conventional plastics, while simultaneously offering a significant opportunity for Europe to lead the defossilization of the €5 trillion global chemicals and materials sector, securing a leading position for Europe in the transition.”
“We are excited about the potential to lead this transformation and contribute to a more sustainable future for the plastics industry.”
Alex Hogan was appointed CEO of Vioneo, effective November 11. Previously, Hogan served as business director at Ineos Olefins and Polymers and has extensive experience managing large-scale industrial operations.
“A.P. Moller Holding is committed to driving the transition to low-carbon and fossil-free sources by advancing green methanol production and its applications across various sectors. The launch of Vioneo marks a significant step in this commitment,” comments Jan Nielsen, chief investment officer of A.P. Moller.
“With Jan Secher and Alex Hogan leading the initiative, I am confident that Vioneo is well-positioned to spearhead the shift towards a more sustainable plastics and chemicals industry. However, success also depends on other key stakeholders being willing to lean in together with us.”
In other advances toward fossil alternatives, seaweed-based packaging brand Notpla recently landed £20 million (US$26 million) in a series A+ fundraising round, doubling its initial target. The company expects to replace over 100 million single-use plastics annually within the next two years and will use the funding to build an expansion in the US.
