Rising to the 2020 REVIEW
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Rising to the Challenge 2020 REVIEW Responding quickly to exceptional circumstances Landmark deal completes the chemistry set
OVERVIEW
Rising to the
challenge
For most companies, spending $5bn on one of
the largest deals in its history would be the most
significant thing to happen in any given year. Ensuring plants remained operational
and that staff were protected has
But 2020 has been quite exceptional been a priority during a tough year
F
or INEOS, this past year has COVID-19 had an irrevocable works, says Crotty.
been filled with challenges and effect on our everyday lives and “The fact the company’s
successes in equal measure. changed people’s behaviour. chairman and major shareholder
In March, everything changed. Hygiene and heightened levels of is literally on the phone every day,
As coronavirus took hold, social cleanliness had become a necessity, talking about what we need to do
distancing, remote working and and the essential ingredients tomorrow, means our decision-
widespread disruption became the required to make hand sanitiser making processes are slick and that
norm. As an essential sector, the were in short supply. As Europe’s there aren’t any hurdles we can’t
chemical industry had to carry on only manufacturer of ultra-high overcome,” he notes.
regardless – albeit facing myriad purity ethanol and one of just two “It was a phenomenal response
measures and restrictions. producers of isopropyl alcohol from everybody during a period
“Of all years, 2020 has proven (IPA), INEOS Chairman Sir Jim of crisis. We all had a common
INEOS’ ability to respond rapidly Ratcliffe responded to the needs objective: to get this done and to
and to get things done,” says of governments and suggested get it done quickly.”
Director of Corporate Affairs, Tom making hand sanitisers in-house. Distributing those vital supplies
Crotty. “COVID-19 caught all of “He set us a challenge to see if to frontline medical staff was
us by surprise but we reacted very we could build a plant in 10 days initially a bureaucratic minefield
quickly to protect our people and and make one million bottles but it provided the perfect chance
to do what we could to help.” per month, which we duly did,” to leverage some of the unique
Safeguarding staff and says Crotty. “We then ended up skillsets from across the business.
supporting local communities building six of these plants – each A phone call from Ratcliffe
was a priority, as was ensuring within a 10-day timeframe – and enlisted the help of Sir Dave
production facilities remained supplying millions of bottles of Brailsford. His cycling team – now
operational to ensure a steady free hand sanitiser to thousands the INEOS Grenadiers – quickly
and reliable supply of the 300 raw of hospitals across the UK, Europe took control of the logistics,
materials used by the medical and and the US.” ensuring deliveries were made
healthcare sectors, he adds. With the concept proven, when, and where, needed.
As one of the world’s leading INEOS Hygienics was born – a Sir Ben Ainslie and INEOS
manufacturers, INEOS was also new consumer-facing business TEAM UK also soon came
firmly focused on doing all it could with a rapidly-growing portfolio onboard and despite their
to provide personal protective consisting of hand sanitiser gels, preparations for the upcoming
Newton Aycliffe
equipment (PPE), facemasks, the in the UK was the sprays, wipes, and dispensers. America’s Cup offered their
plastics used in ventilators, and hand first bottling site This exemplifies the way INEOS advanced 3D printers and
sanitisers to help fight the virus. machinery typically used for
“We reacted quickly to the sail making to produce PPE face
shortage of hand sanitiser and shields for the health service.
worked with governments around Its most recent partnership
the world to get the product out as with the Mercedes-AMG Petronas
Images: INEOS / Max Emanuelson
front line medical teams were in Formula One team also saw them
desperate need of it,” says Crotty. turn their unique engineering skills
“Our main aim was to get product to developing a new respiratory
made quickly and distributed free ventilator system during the early
of charge to the health services. stages of the outbreak.
And out of all this, sprung a brand “It was a real team effort; a united
new business.” front that brought together all of
2
people, with assets that INEOS had the cracker first. When complete,
already acquired from BP when it this will be home to Europe’s first
bought Innovene back in 2005. ethylene cracker for over two
“With BP looking to refocus decades, and the most efficient.
and revise its strategy, an exit from INEOS’ commitment to
the chemical business has been sustainability and the circular
in the offing for some time. We’ve economy has been unwavering
always let it be known that if there during the crisis and, despite all the
was this kind of opportunity, then disruption, there were still plenty
we’d be interested – and now, we’ve of exciting developments.
finally completed the chemistry Early 2020 started with news
set,” says Crotty. that UPM Biofuels would supply
“The BP deal will give us the Hull renewable raw materials to
site in its entirety, so that's a huge produce bio-based polyvinyl
step change for us. That means that chloride (PVC) – another world
we will then have three very large first. This was followed by a
footprints in the UK – a triangle partnership with Forever Plast
from Grangemouth at the tip, to recycle and reuse over 6.5bn
Runcorn on the west coast and Hull bottle caps, plans for a new plant
these seemingly different ventures on the east coast. All are major sites with Plastic Energy to convert
and the unique skills we've got that show the importance of the UK plastic waste into new high quality
within the group,” notes Crotty. to our business.” polymer, and the unveiling of the
“As an organisation we've always Equally, tough times have called ambitious Power to Methanol
been very light at the centre. We’ve for some difficult decisions too. project to produce methanol
got 30 self-contained business The financial impact of the virus, from captured CO2 combined
units that could all move outside combined with the long-term with hydrogen generated from
of the group and still survive. We decline in fuel demand, saw part renewable electricity.
run them as a federation rather of the Grangemouth refinery “This year, of all Add a decade-long wind farm
than a corporation, and they all mothballed. “With the refinery, years, has proven deal to source renewable energy,
have the resources they need, when it’s about rescaling for the future INEOS’ ability to and the launch of a new hydrogen
they need them. We always ensure and having a 150,000bbl site that business into the mix, and INEOS’
respond rapidly and
we learn from one another. That's supports 450 high quality jobs. commitment to a more efficient
the way we operate and it’s always That's our aim,” he insists. to get things done” and environmentally-friendly
worked well for us.” It was also decided that the future is evident.
Even with all eyes turned to Forties Pipeline System, which Tom Crotty, “I'd like to see 2021 be the
the handling of the pandemic, had been due to start scheduled Director of year where we start to grow
arguably one of the year’s biggest maintenance as part of a £500m Corporate Affairs, our hydrogen business and
headlines was the announcement rejuvenation plan, would have the INEOS we can really demonstrate our
in June that INEOS was to acquire works postponed until spring 2021. commitment to advanced recycling
BP’s aromatics and acetyls business Given over 40% of the UK’s oil by getting some facilities up and
for $5bn. It was hugely significant and gas travels through the 500km running,” he says. “We also want
news – not only due of the deal’s network, delaying the plans would to see the Hygienics business well
size and scale but because the help to support customers and the established and integrate the new
complex negotiations had to be wider economy during the crisis. BP businesses firmly into ours.
carried out virtually via Skype in Other major projects, however, There’s the launch of the Grenadier
the midst of the outbreak. have been making good progress. and on the sporting side, if we can
“INEOS was clearly not In the US, the Chocolate Bayou win a couple of Grand Tours and
insulated from the impact of site in Texas has been a hive of finish in the top four in the Swiss
coronavirus but it has largely activity, with work on INEOS and French Leagues, that wouldn’t
been business as usual,” he insists. Oligomers’ new alpha olefins units. be too bad either.”
“We're bullish and in very good On the other side of the “Something that's really
shape financially – and it certainly globe, the three new plants in changed this year is our profile as
hasn’t affected any of our long- the Kingdom of Saudi Arabia a company. Our name is now seen
term planning. So much so, that at the Jubail 2 site are on track, on the shirts of a cycling team, a
we’re now in the process of making while INEOS Styrolution is Formula One car, and on the sail
this massive acquisition that will also expanding its footprint in of a boat. We also now have three
completely change the shape of our China with a 600,000 tonne/year significant consumer businesses in
chemicals business.” acrylonitrile butadiene styrene INEOS Hygienics, the Grenadier
This “lockdown deal” completed facility in Ningbo. car project and Belstaff clothing.”
on 31 December and, as of 1 Engineering work on the “We always used to joke that
January, reunited two world €5bn Project One petrochemical INEOS was the biggest company
class petrochemicals businesses complex in Antwerp, Belgium, is you've never heard of, but that is
consisting of 15 sites, 10 leading well underway too, although the definitely no longer the case.”
joint ventures and more than 1,700 project has been rephased to build By Andy Brice
3
CORONAVIRUS RESPONSE
TKTKTKTKTKT
Production lines
looking to do was relatively
were built within straight forward.”
just 10 days “The idea then moved very
rapidly. We’d decided on a plant in
the UK on the first day, planned
another in Germany by the third
day, and by the fourth we were
expanding to France.”
Newton Aycliffe near
Middlesbrough, UK, was
selected as the location for the
first factory. The 160-acre site
was making polyvinyl chloride
(PVC) compounds as part of
the INEOS Enterprises portfolio
and was home to polymerisation
plants, compounding halls
and laboratories but no major
petrochemical facilities – thereby
minimising any risk of disruption
or cross contamination. Most
GETTING HANDS ON
importantly, however, it had
plenty of vacant warehouse space
WITH COVID
available and was also conveniently
close to Grangemouth, the source
of the required feedstock ethanol.
Mixing equipment was soon
installed and readied for the
raw materials ethanol, hydrogen
peroxide and glycerol. Initially, it
was a very manual linear process;
Spurred on by an unprecedented health crisis, fixed volumes being passed
through semi-automatic fillers
INEOS has now quite literally established itself into bottles that passed along the
as a household name production line, ready for labelling
and boxing. A 24/7 three shift
system soon saw output exceeding
R
esponding to government's large quantities of hand sanitiser to targets, with around 80,000 bottles
call to address the shortage supply thousands of hospitals free being filled each day.
of hand sanitiser for of charge. Such was the project’s success,
frontline doctors and nurses News channels had been it soon became clear this could
INEOS acted quickly, applying its broadcasting footage of China’s be a viable long-term business
enormous resources to help ease race to build a new hospital in opportunity. George Ratcliffe,
the massive shortages. Wuhan City to treat coronavirus who was leading the compounds
“Our solvents business was patients, and that provided business, was duly appointed COO
already making key raw materials inspiration for INEOS Chairman of the new operation.
for hand sanitiser – pharmaceutical Sir Jim Ratcliffe. “Doing anything like this is
ethanol and isopropyl alcohol – but “I remember sitting in his office obviously complex, and there were
we did not supply the public direct. and Jim saying that if they could obstacles coming at us left, right
That was the birth of the idea to do that, then INEOS should be able and centre,” says Ratcliffe. “This
start making our own,” says Ashley to build a bottling site that quickly was where I was able to call on
Reed, CEO of INEOS Enterprises too,” says Reed. “He then posed different INEOS resources and
and Chairman of the newly formed the challenge to set up a plant in make use of their expertise.”
Hygienics business. “It’s now 10 days that could make a million Heightened demand had left
Not for the first time in its history, recognised bottles each month.” the world short of pumps, bottles
the petrochemical major would be that we're far Given the current circumstances, and packaging – so sourcing
treading unfamiliar ground. more than just the target seemed a little ambitious. supplies while launching a hand
By now it was clear the virus “At that time, we didn't really sanitiser business at the peak of the
was highly contagious, and front about producing know how it could be done,” he pandemic proved problematic.
Images: Markus J Feger
line medical and care services chemicals” admits, “but frankly, for a company Although INEOS makes a lot
were in dire need of help. To stem the size of INEOS that builds of the plastic that goes into these
the rapid spread of infection, George Ratcliffe, hugely complex petrochemical bottles, caps and closures, it didn’t
INEOS committed to setting up a COO, INEOS plants, it didn't take long to actually manufacture the bottles
purpose built facility to produce Hygienics recognise that what we were themselves. Far from the 50ml
4
bottles that were needed, the that first 10 days, he says. By early
smallest containers used by the April, INEOS hand sanitisers were
company were typically 45-gallon being shipped to 28 hospitals THE GRENADIERS
drums, he notes. across the UK, with wider DELIVER THE GOODS
Fortunately, INEOS Olefins and distribution across Europe as the
A
Polymers was able to make the plants reached full capacity. s if producing millions of bottles of
necessary introductions to some After Newton Aycliffe came hand sanitiser was not hard enough,
of its customers to source the Herne in Germany, closely followed INEOS faced an arguably tougher job
coveted containers. by Lavera and Etain in France. of delivering them to those most in need. The
But getting the production lines INEOS’ international response soon rapid spread of the COVID-19 meant there was
up and running was only half the spread across the Atlantic, with no time to waste in getting the much-needed
challenge, admits Ratcliffe. sites in Jacksonville, Arkansas, and supplies to front line medical staff.
“We genuinely thought the Neville Island, Pennsylvania. An offer of help from Sir Dave Brailsford and
biggest obstacle would be building INEOS continued to improve the INEOS Grenadiers cycling team provided
these plants so quickly,” he says. efficiencies and has now stopped the perfect solution.
“It turned out that distributing the production at Lavera and Neville “The lockdown had postponed all our races
products would pose some of the Island to focus on the four and we wanted to help in any way we could,”
biggest problems.” remaining permanent sites – each says Brailsford. “We offered our support
Unless, of course, you have access ramping up their monthly output and Sir Jim Ratcliffe came back to us asking
to the world’s most successful to over 5m bottles. whether we could look after the distribution to
cycling team, which specialises in Efforts have since been raised the hospitals for INEOS Hygienics.”
coordinating logistics (see box). to build awareness about the Through close collaboration with the UK
“With all the travelling done INEOS Hygienics brand and to government
by Sir Dave Brailsford and the get its gels, sprays, wipes and the and NHS
Grenadiers, they are fantastic at new automatic dispenser direct Trusts,
moving all their equipment and are to the consumer via its website, Brailsford
meticulous in their planning. Every supermarket shelves and the online and his
detail is covered and literally no retailer Amazon. team quickly
stone goes unturned,” says Ratcliffe. “We’re delighted with how the coordinated
“They helped to get everything Hygienics business has helped raise efforts and
organised, communicate with awareness of INEOS. People are put plans
the hospitals and understood much more familiar with us and in place to
where the hotspots were so it’s now recognised that we're far distribute
we could prioritise them with more than just about producing the hand Distributing the hand sanitiser
proved extremely complex
hand sanitiser. It was a huge chemicals,” he says. sanitiser
undertaking and was done so INEOS has gained widespread around the
professionally. We had their riders praise for its rapid response to country.
literally jumping in vans and the crisis and its efforts have also “The logistics side of our sport is very
driving around the country to earned recognition from Cefic, complicated and intricate,” he says. “We can
drop off the deliveries.” the European Chemical Industry have three events going on at the same time in
Equally, INEOS-owned Ligue Council – naming the Hygienics three different parts of the world, and we’ll have
1 football team OGC Nice would business among the winners of its our riders swapping between teams to compete
help to coordinate deliveries from 2020 European Responsible Care® in those different races. We’re always having
the two manufacturing facilities in Awards. This year’s recipients drew to make sure all our equipment, bikes and
France and identify the areas worst particular acclaim for keeping clothing is in the right place, at the right time.”
hit by the virus. critical supply chains functioning, “Once we’d analysed the supply chain
“I don't think anything has ever protecting workers, and supporting structure and processes, we were able to tap
happened as quickly as this in the local communities. into them and figure out the right contacts
history of INEOS. This has by far “It's great for the teams to make sure that the country had equal
been the fastest turnaround from working at these manufacturing distribution. We did the same for France,
concept to proof, and it really sites to get some much deserved Germany and Belgium.”
tested our skills to the limit,” notes recognition for what they've Within days of getting involved, INEOS hand
Ratcliffe. “I was able to reach into done during the pandemic,” says sanitiser had been delivered to 28 hospitals
any of the INEOS businesses and Ratcliffe, “and I really think that including Grangemouth, Halton, Teesside,
access the people, resources, and this is the perfect example of Derby and London.
skillsets we needed – and it was a how INEOS can pull together, “We even rebranded some of our vans and
really good example that we could be responsive and deliver a high the team got involved by personally making
pull together and prove that that quality product. We set ourselves deliveries to hospitals around the country,”
we’re a nimble company with an a challenge and I can quite adds Brailsford.
attitude that we get things done.” confidently say we’ve achieved it. “The Grenadiers were really pleased to
Right on schedule, the first In just a few months, we’ve built be able to help. We all found it extremely
batch of 3,000 bottles was sent to a new business and a brand – and rewarding and felt we were making an
the Nightingale pop-up hospital that’s quite remarkable.” important contribution.”
at London’s Excel Centre within By Andy Brice
5
PETROCHEMICALS
Another non-stop year for INEOS’
petrochemicals businesses has
seen landmark deals secured,
new projects announced and
continued expansion into
promising markets
Building on firm
foundations
N
ever a company to sit back terephthalate (PET), while the recycled plastic in PET beverage
on its laurels, INEOS has acetyls business produces acetic bottles from 2025, rising to 30%
seen another year of growth acid and derivatives such as acetic from 2030, will affect demand for
in 2020, both in terms of extending anhydride. virgin polymer.
its footprint and expanding The transaction brings a But on the flip side of
capacity. Undoubtedly, the biggest whole new chemistry set and challenges also lie opportunities.
move is the agreement made in increases coverage of markets Dossett notes that BP had been
June to acquire BP’s acetyls and for polyester fibre and film, says developing a sustainability
aromatics business. At the time of Stephen Dossett, CEO of INEOS programme on PTA/PET.
writing, the transaction was set to Aromatics. While INEOS was Initiatives include PTAir, a low
close by end 2020/early 2021. already present in the polyester carbon and carbon neutral PTA
The $5bn deal, which market, it was through its supply brand, and PTAir Neutral, which
completed on 31 December, is of monoethylene glycol (MEG) the UK energy giant claimed at
INEOS’ second largest in its feedstock rather than PTA. the time of launch in September
history, adding 15 manufacturing Growth in the polyester resin 2016 was the world’s first
plants across Europe, the US and and fibre markets is 4-6% per certified carbon neutral PTA.
Asia, which BP said produced year, according to Dossett, who Also, Infinia technology, which
9.7m tonnes of petrochemicals in adds that the acquisition is “a BP designed to turn difficult-to-
2019. Eight plants are located in good route” for INEOS to enter recycle PET plastic waste, such
Asia – notably China, Indonesia, the aromatics business in Asia, as black food trays and coloured
Malaysia, South Korea and especially China. He points also bottles, into recycled feedstock.
Taiwan – five in the US at South to BP’s cost leadership position in The BP assets also boost INEOS’
Carolina (where there are two aromatics in all three world regions acetyls footprint, especially
purified terephthalic acid (PTA) as well as its “excellent and world- in Asia, where there are joint
units), Texas and Trinidad, and leading PTA technology”. ventures with Sinopec, Lotte,
two in Europe – the UK and BP reentered the PTA licensing Petronas, and China America
Belgium, the latter housing two market in 2014, but Dossett says it Petrochemical Co (CAPCO)
PTA units and one paraxylene is too early to say yet what INEOS’ and Formosa Petrochemical in
(PX) plant at Geel. position will be in that regard. China, South Korea, Malaysia and
INEOS also picks up BP’s Infinia There are nevertheless challenges Taiwan, respectively.
advanced recycling technology for the aromatics business. There David Brooks, CEO of INEOS
as well as its interest in Tricoya, a has been a significant build-up Acetyls, says the company is
joint venture that intends to build in PTA/PET production in Asia, aiming to expand its market share
a wood elements acetylation plant leading to excess capacity with and look at how it can grow in
at the Saltend Chemicals Park in the region’s export capabilities Asia. He notes that growth rates in
Image: Pretty Pictures
the UK. expected to put downward pressure the region for acetic acid are above
BP’s aromatics business produces on other manufacturers. Looking GDP with not much new capacity
mixed xylene, PX and PTA, key to Europe, the region’s directive due to go online in the next few
feedstocks for making polyethylene to target the inclusion of 25% years. “I would like INEOS to be
6
MAKING PROGRESS ON PROJECT ONE
W
ork on INEOS’ flagship project award engineering, procurement
at Lillo, Belgium – dubbed and construction-type contracts.
Project One – continues to He says the cracker will be built
forge ahead. in modular form, with sections
The past year has been dominated constructed in the East and shipped
by engineering, with INEOS working to the site for assembly.
with companies in Europe and South A final investment decision is
Korea to develop a blueprint for the expected by late 2021 or early 2022.
complex, which comprises a propane The aim now is for the cracker to go
dehydrogenation (PDH) unit and online first – scheduled in late 2025/
ethane cracker. early 2026 – with the PDH to follow at
John McNally, CEO of Project One, a later date.
says the early engineering work will The size and scale of the project is
conclude next year. Detailed design a first for INEOS. The environmental
work will follow and INEOS expects footprint of the project is also looking
to apply for the various necessary increasingly attractive, at less than half
permits by mid-2021. of CO2 emissions per tonne of product
By the end of 2021, likely in the compared with the most efficient
Lillo in Belgium will be home to the fourth quarter, McNally expects to crackers in Europe.
major new cracker and PDH project
the next producer that builds a Belgium. INEOS says the facility market share for imported
new worldscale acetic acid plant,” is the largest of its kind in Europe materials into Europe on the
says Brooks. and is fed by Very Large Gas back of new investments with
INEOS is now Europe’s leading Carriers (VLGCs) that bring advantaged feedstock. Project One
manufacturer of acetic acid, material in from the US, giving gives us that same competitive
producing over 500,000 tonnes/ the cracker more options and advantage allowing us to compete
year at Saltend. However, the improving its cost competitiveness. on a level playing field, but with
company has been less integrated Also under construction local production we can also
into downstream derivatives, such are two cogeneration units at provide the service and flexibility
as vinyl acetate monomer (VAM) Cologne and Grangemouth, UK, that our customers need.”
and acetic anhydride, compared to provide steam and power. The For INEOS Phenol, a new
with some of its competitors, plants will also bring significant worldscale cumene plant is under
with a big focus on the merchant improvements in the sites’ CO2 construction in Marl, Germany,
market. The BP deal will likely footprint, Ingram says. with commissioning due by late
change that. An additional ethylene 2021 and full operation in 2022.
“We are interested to see how furnace is being installed at Hans Casier, CEO of INEOS
much further we can integrate Grangemouth, expanding output Phenol & INEOS Nitriles, says the
downstream of acetic acid,” says by 100,000 tonnes/year with plant will underpin its business in
Brooks, adding that the company completion due towards the end Europe, providing its own supply
continues to consider investing in of this year. of cumene, which is currently
a VAM plant at Saltend. A decision The possibility of expanding at sourced on the merchant market.
to go ahead will be made in the Rafnes, Norway, is an option for He also reveals that the business
first half of this year. the long term, notes Ingram, but is once again looking at the
For INEOS Olefins & Project One (see box) will fulfil prospect of building a new phenol
Polymers Europe, 2020 has been INEOS’ needs for the near future. plant in China, something that was
dominated by a series of projects He says the European on the table a couple of years ago.
at Cologne, Germany, that include petrochemicals industry is Possibly, the company could
modifications to the cracker’s characterised by ageing assets, and build on what it already has in
furnaces, new infrastructure plus a producers’ abilities to maintain Asia on nitriles – INEOS has a
new jetty on the Rhine river. and upgrade their capacities to joint venture with Sinopec on
The work, which was completed remain competitive for the long acrylonitrile (ACN) technology,
in May 2020, significantly increases term will be key for the region. called the INEOS Sinopec
the cracker’s feedstock flexibility. “That is why we see Project One Technology Joint Venture (TJV).
Rob Ingram, CEO of O&P Europe, as a significant commitment to Casier says the current, and main
explains that the cracker is now Europe’s petrochemicals industry focus, for the nitriles business is
able to use substantially more and to support the competitive with TGV in China, where demand
butane, as well as naphtha. growth of our European is healthy, as well as its upcoming
In addition, a new storage customers,” says Ingram. “We have 400,000 tonne/year ACN plant in
tank has been built at Antwerp, seen a general trend of increasing Saudi Arabia.
7
PETROCHEMICALS
Across the Atlantic in the evaluating other opportunities. and the consolidation of US R&D
US, INEOS has moved ahead “Oligomers is preparing for the activities at Battleground. A pilot
with installing new linear alpha next step forward for growth. plant from Naperville in west
olefins (LAO)/polyalphaolefins The business has had a lot of Chicago moved to the complex,
(PAO) units at its flagship site momentum and, in true INEOS along with a number of catalyst
in Chocolate Bayou, Texas. The style, we will keep that momentum development and production
420,000 tonne/year LAO unit came going,” says Walton. labs. A second pilot plant at
onstream late in the second quarter The INEOS O&P USA business Naperville was closed and rebuilt
of 2020, with the PAO facility to made a significant acquisition in “The acquisition in Rosignano, Italy.
be operational in the second half November, agreeing terms to buy will allow the Bob Learman, Chairman of
of 2021. partner Sasol’s 50% share of their business to meet INEOS Oxide, O&P USA and
Joe Walton, CEO of INEOS Gemini joint venture for $404m. the needs of a Oligomers, says he is particularly
Oligomers, says the plants are a The deal, which closed at the end of growing market” proud of the concerted efforts
key milestone in the first phase of 2020, gives INEOS full ownership of all the businesses have made
its growth strategy and provide the venture, which is located at the in 2020 to improve Chocolate
worldscale capability on the Battleground complex in LaPorte, Michael Nagle, Bayou’s production reliability and
US Gulf Coast, where they can Texas and makes bimodal high- CEO, INEOS logistics capability. He says there
capitalise on globally competitive density PE (HDPE) for the pipe and O&P USA has been a lot of infrastructure
spend, which makes it easier
Alpha olefins units are for INEOS to consider future
being built in the US investments at the site, where
it still has a lot of spare land
available for expanding
derivatives at a later stage.
Styrenics producer INEOS
Styrolution announced the largest
investment in its history in January
2020 when it revealed plans to
build a world-scale acrylonitrile-
butadiene-styrene (ABS) plant in
Ningbo, China.
Engineering work has begun
on the “hallmark project”, which
will produce 600,000 tonnes/year
when it starts up in the second
half of 2023. This new investment
follows the acquisition of two
polystyrene (PS) plants in Ningbo
and Foshan from Total in 2018.
Groundbreaking was due to take
gas and ethylene economics, film markets. place in mid-December.
complementing production assets “Bimodal products are in high INEOS Styrolution’s Chairman
in Canada and Europe. demand and the acquisition allows Kevin McQuade says China is the
INEOS has also made extensive the business to meet the needs of a largest ABS market in the world,
modifications to the site’s barge growing market,” says INEOS O&P where demand is growing in line
dock, which handled light olefins USA CEO Michael Nagle. with GDP and output will serve
and gases, to enable it to ship At Chocolate Bayou, the markets such as automotive and
LAO and PAO liquids. Work was business has carried out a series household appliances.
completed with first shipments of upgrades and debottlenecking “We have recently Also, construction is well
made in October. It has also added measures, adding 275,000 tonnes/ demonstrated underway on a new worldscale
four new barges to its fleet. year of new ethylene capacity the potential styrenics specialties plant for
New LAO/PAO plants, as well as from late 2020/early 2021. The for mechanical 100,000 tonnes/year acrylonitrile
the ACN unit, are also planned for extra output will feed existing recycling of PS styrene acrylate (ASA) polymer in
Saudi Arabia, as part of the Amiral polyethylene (PE) production, as Bayport, Texas, which is due on
into food contact
petrochemical complex being well as the new oligomers output stream in 2022.
implemented by Saudi Aramco and and Stryolution’s needs in the applications, Recycling is a major focus for
Total. INEOS’ involvement in the Houston area. previously the styrenics company, which is
project was originally announced For Nagle, the highlights of viewed as a working with several partners on
in mid-2019 and engineering work 2020 include the Q1 start-up of near impossible PS depolymerisation technologies
has continued to progress. Start-up a “power island” at Chocolate achievement” with projects in Europe and the US
is expected in Q3 2026. Bayou, which consists of two moving ahead.
Image: INEOS
The Saudi investment marks a new cogeneration plants and Kevin McQuade, Together with Trinseo, INEOS
second phase of growth for INEOS three steam boilers to improve CEO, INEOS Styrolution plans to build a PS
Oligomers, which will also be electrical and steam reliability, Styrolution recycling plant in Wingles, France,
8
capable of processing up to 50
tonnes/day of post-consumer
feedstock. Operations are
PLANS PROVIDE A
scheduled to start by mid-2023. SOLID PLATFORM
In the US, Agilyx technology FOR THE FUTURE
will be used in a new 100 tonne/
day PS depolymerisation facility
in Channahon, Illinois as part
of a joint venture with AmSty.
Start-up could potentially be in
2022-2023.
An independent life cycle
assessment for depolymerised
styrene has shown up to a 50%
reduction in greenhouse gas
emissions compared with fossil-
based styrene, according to
T
INEOS Styrolution. hese are Looking to the
McQuade adds that the business challenging future, the business
has also made great strides on times for has identified
the mechanical recycling of PS oil and gas several exciting
and ABS. “We have successfully operators, developments,
introduced commercial grades with the sector including a number
of recycled ABS (ECO ABS) into blighted by of wells being drilled
the market with very positive pricing volatility and widespread in Norway, and plans to tap into large
feedback and high interest and uncertainty because of the reserves in Denmark’s Hejre oilfield.
demand from customers,” he coronavirus outbreak. The rerouting of the Clipper
says. “Moreover, we have recently Such has the impact been on revenue South gas field through the Shell
demonstrated the potential streams that it has been necessary Bacton export hub has also been a
for mechanical recycling of PS to constantly revise plans and review huge success, he notes, and “has
into food contact applications, projects this past year to ensure they outstripped expectations”. The Clipper
previously viewed as a near make sense from an economic and South field was due to be shut down in
impossible achievement.” technical perspective, says Dougie 2018 due to third party infrastructure
A noteworthy event for INEOS Scott, CEO of INEOS Oil & Gas. decommissioning. However, the re-
Styrolution was the awarding of “We've been in defer mode but route has extended the Clipper South
a platinum rating from EcoVadis there is optimism ahead,” he insists. by at least 12 years. The heart of the
for its advanced sustainability “If you look at the last 12 months, Clipper South system is a remote-
performance. INEOS Styrolution is there were some key events that control gas water separator to handle
the first among the INEOS group shaped our thinking on how best to high levels of liquids from the wells.
to receive the rating, which is the run the business.” This is the first time this technology
highest available and awarded to “One was the historically low gas has been operated successfully in a
just the top 1% of companies. price, which actually dropped prior to remote-control application.
“I believe we are at the forefront COVID. The full impact of the lockdown “This has been another great
of INEOS on sustainability and also meant we had to reorganise our example of how we're taking assets and
circularity within the industry,” says business to ensure continuing safe and rethinking how they operate,” adds Scott.
Steve Harrington, CEO of INEOS reliable production.” Perhaps among the most intriguing
Styrolution. “It is recognised as a “I think we've got another prospects moving forward, he adds,
major achievement by both our challenging year ahead of us but I'm is an ambitious project to inject and
customers and suppliers.” optimistic because we're all working store carbon dioxide into disused and
For the future, the company tirelessly to ensure that our cost base depleted oil fields in the North Sea.
aims to develop its footprint is appropriate,” he says. “The Greensand project has
further in Asia, the largest With gas prices down at historical enormous potential and would allow
growth area for styrenics. “We lows during the summer, Scott says the Danish Government to fully deliver
will continue to make large the business decided to shut in on its 2030 carbon reduction targets,”
investments and acquisitions in some fields. “This was an economic he says. “Over the last few months,
Asia, with a specific focus on ABS decision and our partners fully we've engaged heavily with its Climate
and specialties,” says Harrington, supported us,” he says. “We're now Ministry about funding for the project
noting that innovation efforts back up and running and are reaping and have had a very positive response.”
are looking at providing new the benefits of the higher gas prices. Surveys are currently being carried
materials for electric cars and It showed our flexibility and agility, out to check the field’s suitability. The
electronic components in vehicles, and that we’re able to adapt to a results are expected by the middle
as well as in construction and situation like this and make decisions of 2021.
telecommunications, such as 5G. very quickly.” By Andy Brice
By Elaine Burridge
9
SUSTAINABILITY
SET ON A
SUSTAINABLE STRATEGY
A continued focus on sustainability and the circular In September INEOS agreed
the largest ever industrial wind
power purchase contract in
economy remains central to INEOS’ plans moving forward Belgium with ENGIE
S
ustainability has always in the industry based on our enlisted by INEOS to meet the
been a focus for INEOS. It sustainability objectives and needs for:
is viewed by the company performance and sits alongside ● Reduced use of fossil fuels for
as fundamental to the way it does gold and platinum ratings for energy to help meet the climate-
business today. our INOVYN and Styrolution neutrality challenge;
Peter Williams, INEOS Group businesses,” comments Greet ● Increased re-use and recycling
Technology Director, explains Van Eetvelde, Head of Energy – in a move towards a circular
that embracing sustainability & Innovation at INEOS Group. economy; and
“means the business is conducted “We are committed to continuous "Our headline ● Progress towards net-zero
so that it contributes to society, improvement as we progress our priorities are to greenhouse gas (GHG)
conserves the environment; and long-term sustainability goals.” help meet the emission operation.
is successful economically.” Van Eetvelde adds: “Just as over climate-neutrality “As a chemical company, we
He sees sustainability as a key 20 years ago, we started taking steps challenge, the need to meet these needs and even
driver of innovation. As such, he that would ensure our business lead the way,” says Williams.
says, it is highly integrated into all could be sustained to the present circular economy, INEOS’ strategy takes a holistic
of INEOS’ activities. day. Today, we are taking new steps developing new view of what is needed to deliver a
This approach was recently to ensure we will be sustainable businesses and sustainable business: operational
recognised by EcoVadis, the through to 2050 and beyond. That moving to green safety; development and diversity
world’s most trusted provider of now means moving towards the net raw materials" of its people; ethical governance;
business sustainability ratings. zero economy of 2050.” support for local communities
INEOS received a gold In the past, the focus was very and the natural environment; and
sustainability score, with an overall much on efficiency, in terms of Geir Tuft, climate and circularity.
rating that puts INEOS into the top both energy and materials use. CEO, INOVYN All are vital, says Williams, but
Image: INEOS
4% of companies. Today, with increasing societal the climate and circularity focus
“The gold rating by EcoVadis demands and regulatory pressures, is attracting particular effort at
confirms a strong position sustainability practices are being present and looks set to drive
10business innovation for the future. step change in energy efficiency to conventionally produced PVC.
Indeed, it is already leading and carbon footprint – a key aspect But biobased feedstocks are not
to the creation of new products, of progress. The new cracker will the only materials that can be used
businesses and partnerships, in have half the emissions of Europe’s in the cracker feed. INEOS is also
areas such as plastics recycling, best performing crackers,” he says. looking at using waste polymers
hydrogen production, methanol Third, INEOS is exploring the processed so that they be used
and polyvinyl chloride (PVC). use of biofeedstocks in its steam to replace naphtha. It has started
Responsibility for driving crackers, to make polyolefins and a collaboration with Spanish
sustainability at INEOS resides PVC that have significantly lower company Plastic Energy that will
with each of the major business GHG footprints. “It is early days,” take waste plastic and chemically
units, with their CEOs responsible says Williams, “but it will start to convert it into feedstock using
to the INEOS board and meet an evolving demand from the Thermal Anaerobic Conversion
shareholders for progress and market for green materials.” technology to produce a product
hitting targets. Ingram adds some more details known as Tacoil.
Geir Tuft, CEO of INEOS’ on the move to alternative feedstocks The partnership aims to have
INOVYN business, has a number by INEOS to improve sustainability. a recycling plant up and running
of priorities, driven largely by the The company has recently signed a “To take plastic by the end of 2023, once the
fact that the PVC producer is a long-term agreement with Finland’s waste back to processing has been optimised to
huge consumer of energy and that UPM Biofuels for supply of the virgin plastic give a suitable cracker feedstock.
PVC has historically been under latter’s UPM BioVerno, a sustainable is the ultimate The resulting material will also
pressure from the environmental naphtha substitute made from the be used in the Cologne cracker to
lobby. "Our headline priorities are residue of wood pulp processing.
definition of make new polymer.
to help meet the climate-neutrality This is being fed into the recycling and Such advanced recycling, says
challenge, the circular economy, Cologne naphtha cracker to will create a Ingram, makes it possible to make
developing new businesses and produce bioethylene and hence truly circular a final product with an identical
moving to green raw materials." a wide range of bio-attributed economy” specification as the virgin polymer.
he explains. polyolefins as well as PVC. These “To take plastic waste back to virgin
At INEOS Olefins and Polymers can be used in a range of products plastic is the ultimate definition
Europe, priorities run along similar from plastic food packaging, to Rob Ingram, of recycling and will create a truly
lines, with recycling/circular medical items and pipes. CEO, INEOS circular economy,” says Ingram.
economy and alternative raw The Roundtable for Sustainable Olefins & Polymers Fourth, says Williams, INEOS
materials high on the agenda, says Biomaterials (RSB) has certified is looking to use alternative energy
CEO Rob Ingram. each step in the process, starting sources in its operations. It has, for
Williams highlights five from UPM’s crude tall oil residue, example, just signed a 10-year deal
initiatives in the climate area which to the bio-naphtha and then to with Belgium’s ENGIE to buy 84MW
have the promise to deliver GHG final polymers. of wind power which, Williams
savings over the next five years. The agreement supports says, will save INEOS 1.15m
With climate initiatives, Williams INEOS’ plans to make plastics tonnes of GHG emissions over
says, “there is no silver bullet. We from renewable materials, thus the coming decade. The electricity
need a manifold strategy and need significantly reducing GHG from the North Sea will be used by
to drive energy efficiency and get emissions and supporting a existing INEOS production sites
new energy systems in place as more sustainable approach to its and ultimately the new Project One
renewables develop in scale and business, says Ingram. cracker and PDH unit.
become more economic.” Tuft points out that INOVYN is And lastly, INEOS has just
First in line are improvements now commercialising BIOVYNTM, established a new hydrogen
in energy efficiency across INEOS’ a green PVC from two production business, as part of INOVYN, to
existing sites. “We have a whole sites in Europe, which it offers as explore the use of clean hydrogen
raft of projects in place that will 100% non-fossil-fuel attributed. as an alternative energy source for
improve our efficiency and cut GHG It can do this because of the its own plant operations – either
emissions over the next three years. use of biofeedstocks in INEOS’ in fuel boilers or via electricity
Just by these actions, we anticipate Cologne cracker. Using a mass generation – and for sale to
near term reductions in GHG balance approach and third-party external customers.
emissions of 10%,” notes Williams. certification by the RSB, the The hydrogen will be
Second, there is investment bioethylene so-produced can be manufactured by decomposition
in new plants which will enable attributed to VCM and hence to of water using renewable
INEOS to bring in state-of-the-art the BIOVYNTM PVC. electricity, using INOVYN’s
technologies that are even more The product is already attracting expertise in electrolysis.
energy efficient. Williams points a lot of interest, he says, from The business will have its
to INEOS’ €5bn Project One customers in the automotive, headquarters in the UK and aims
development at Lillo, Antwerp, flooring and pipe sectors who want to build capacity to produce
which will see construction of to use a material to meet their end hydrogen across the INEOS
a new ethane-fed cracker and customers’ green demands. The network of sites in Europe, in
propane dehydrogenation unit. product, he adds, delivers a GHG addition to partner sites where
“This will enable us to make a saving or more than 90% compared hydrogen can help address the
11SUSTAINABILITY 2020 January
● Styrenics Circular Solutions (SCS)
members – which includes INEOS
Styrolution – to evaluate Pyrowave plastic-
to-plastic advanced recycling technology
climate-neutrality challenge. recycling, by stimulating investment
The company already produces in collection and processing and by February
300,000 tonnes/year of hydrogen developing ways to upgrade recyclate ● INEOS partners with Forever Plast to
from its operations, largely as a by- into high specification materials. recycle over 6.5bn bottle caps back into
product. INEOS, says Tuft, already It has, for example, just launched high quality caps
has the technology to produce, a range of Recycl-IN polyethylene ● Agreement with UPM Biofuels to supply
transport and store hydrogen. and polypropylene grades, made a renewable raw material to produce
bio-attributed polyolefins in Germany
In a complementary initiative, using a blend of very high-spec
INOVYN has joined a major virgin material with up to 60% of
seven-strong consortium in recyclate to produce a polymer
April
● Collaboration with Plastic Energy on new
Antwerp seeking to demonstrate without sacrificing final product plant to convert waste plastic into raw
production of sustainable methanol performance. The range covers material to make new plastic by late 2023
from green hydrogen and captured rigid and flexible products for use
carbon dioxide. If joint feasibility in non-food contact applications. June
studies are successful, the Power Recycl-IN uses post-consumer ● INEOS Styrolution research proves post
to Methanol project will see the recycled plastic from a number of consumer polystyrene waste can be a
valuable feedstock and can halve
construction of an 8,000 tonne/year recycling companies, which will greenhouse gas emissions
methanol plant at INEOS’ site at include Viridor’s new state-of-the-
Lillo, in the Port of Antwerp. art recycling plant. 1%
July
Tuft says a second phase could INEOS is adopting the same ● INEOS Styrolution awarded platinum
increase capacity to 50,000 tonnes/ partnership approach to advanced rating by EcoVadis for its advanced
year if the technology proves recycling – which can be used sustainability performance. The platinum
successful. The initiative is not so to address the issue of recycling rating is awarded to the top 1% of companies
much about creating a new source lower quality and mixed plastics
of methanol, Tuft argues, but finding waste. Here, technology is not yet August
● INEOS Styrolution and Recycling
a viable way to use hydrogen, which so advanced and INEOS is helping Technologies sign joint development
is energy intensive but relatively with technology development as agreement for recycling polystyrene
inefficient to transport. Using it to well as promoting infrastructure
produce methanol or ammonia, investment though partnerships. September
for instance, gives you more usage INOVYN is looking at the ● INEOS becomes first company in the
options, he argues. advanced recycling of PVC into chemicals and polymers sector to achieve
certification from RSB – the Roundtable
“This is an exciting project materials that can be used to
on Sustainable Biomaterials
and an excellent fit with our manufacture new PVC. Tuft points
● INEOS Styrolution signs agreement to
sustainability strategy, as it out that mechanical recycling advance the circularity of polystyrene with
includes pursuing options for of the polymer is already well AmSty, Agilyx and Trinseo; plans first
alternative energy and lower established – some 750,000 tonnes/ European polystyrene recycling plant in
carbon production of chemicals.” year of recyclate being marketed in France with Trinseo; announces joint facility
On the circular economy front, the EU, but that advanced recycling for advanced recycling of polystyrene in the
says Williams, “as a chemicals and (or chemical recovery) would be US with AmSty, using Agilyx technology
polymers company, we are mainly a “game changer”, allowing much ● Largest-ever purchase contract of wind
a materials producer and therefore more post-consumer waste to be energy for heavy industry in Belgium
agreed. Deal with ENGIE to cut CO2
the circular economy theme goes recycled and dealing with legacy by over 1m tonnes/year
across the company as a whole. issues in the PVC sector. It is early
● INEOS Olefins & Polymers partners with
Plastic waste is a global issue and days, Tuft explains, and “poses a Saica Natur in supply agreement for
INEOS is putting efforts into both significant challenge, so we may recycled LDPE and LLDPE for use in
mechanical and more advanced need to form partnerships.” virgin quality flexible packaging
recycling of polymer products.” In future, says Williams,
INEOS has made quite some INEOS will be disclosing more November
progress on plastic recycling and on its sustainability activities, ● Emission reduction commitment ensures
INEOS will be climate-neutral in Antwerp,
gained traction with customers, having not felt the need to do so
Belgium, by 2050 at the latest
adds Ingram. He sees INEOS in the past as a private company.
● INEOS launches new Clean Hydrogen Business
contributing to the circular It is currently updating its Group
economy recycling effort in several Sustainability Report. ● Agreement with Hyundai Motor Company
to examine potential of hydrogen
keys ways, where it has skills The key thing, he points out, applications and technologies – including
and capabilities to offer. “We are is to be pragmatic, and do things Hyundai’s fuel cell system for the Grenadier
looking to work with partners and now to reap early rewards. “Our 4x4 vehicle
Information graphic: Gareth JJ Burgess
stakeholders to make progress.” roadmap to climate neutrality and 4%
First, it is looking into design circularity has both short term December
for recyclability and working with and longer-term options in it. ● Former BP CFO Brian Gilvary appointed
customers and the value chain to But it is really important that we as Executive Chairman of new INEOS
Energy venture that incorporates all oil
re-engineer products and materials bank today’s opportunities whilst and gas assets
to make them easier to recycle. working on approaches for the
● Decade-long renewable power deal agreed
Second, it is looking at building the longer term.” with RWE to cut CO2 from Belgian sites by a
capacity and market for mechanical By John Baker further 745,000 tonnes
● EcoVadis awards INEOS gold standard
sustainability rating, placing it among
12 top 4% of companies in the sectorINEOS aims to achieve four ambitious
ON TARGET circular economy targets by 2025
1 To use 325,000 tonnes of recycled polymer in products
2 To offer a range of polyolefin products for packaging containing 50% or more recycled content
3 Use on average 30% recycled content in products destined for polystyrene packaging in Europe
4 Ensure 100% of polymer products can be recycled
FINITE RESOURCES...
INFINITE POSSIBILITIES
S
ustainability and the circular – putting INEOS into the top 4% of making plastic from renewable raw
economy are not new concepts companies in the sector. INEOS materials or storing carbon dioxide
for INEOS but they have become Styrolution was also awarded a in depleted oil fields, INEOS is
the cornerstone of an ambitious and platinum rating by EcoVadis for its challenging the conventional.
forward-looking strategy. INEOS advanced sustainability performance. By leveraging its capabilities as one
recognises the potential to reuse, Across its business units around of the world’s largest manufacturers
repurpose, and recycle to minimise the globe, it remains committed and exploiting its resources,
waste and create value. to reducing its carbon footprint, technologies and expertise, the
A year that started with plans exploring innovative technologies, business has created a robust
for the world’s first commercially and harnessing the potential of framework to ensure it plays a key
available bio-attributed polyvinyl renewable energy and feedstocks. role in building a more sustainable
chloride has ended with a gold From advanced recycling and business for the future.
sustainability rating from EcoVadis new hydrogen applications, to By Andy Brice
COMING FULL CIRCLE
$4.5 Potential economic benefits
of a circular economy to 2030*
trillion
Society’s growing Tonnes of materials extracted
Projected increase of annual
waste generation by 2050** 70% desire to move towards 92 and processed globally
by all industries in 2019 –
a climate neutral future billion contributing about half of
is driving change. A circular global CO2 emissions*
Plastic packaging that economy ensures raw materials
will never be reused or
recycled unless there is
fundamental redesign
30% are used efficiently and effectively
before being reused and repurposed. Tonnes of plastics
and innovation#* While all INEOS polymers are recyclable, 359 production globally in
2018, up from 348m the
only about 14% of plastic currently gets million
year before†
recycled – with most of it instead heading
The value of plastic
to landfill. INEOS remains focused on
packaging material lost to
the economy each year – 95% transforming today’s take, make,
worth $80bn-120bn# dispose economy into one where 61.8 Total plastic produced in
Europe in 2018 (in tonnes)†
plastics are designed to million
be used time and
Tonnes of plastic post-
9.4
Sources:
consumer waste collected in time again * World Economic Forum
† PlasticsEurope Market Research
Europe for recycling (2018)† million Group and Conversio Market & Strategy
# Ellen MacArthur Foundation
** World Bank
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