Moller said Vioneo will manufacture fossil-free plastic resins and significantly reduce the carbon footprint associated with plastics production.

The group has been developing plans for a €1.5 billion plastics factory in Antwerp, Belgium, that would use green methanol, made from low-carbon hydrogen or biomaterial, and run on green electricity.

“Vioneo has designed a production method utilising an innovative and proven technology to produce fossil-free polypropylene (PP) and polyethylene (PE) at scale, using green methanol as a feedstock,” said Moller.

“This technology ensures a fully segregated and traceable supply chain, avoiding the mixing of non-certified and certified feedstocks.

“The production will be powered by renewable electricity, significantly reducing GHG emissions. The end-product will be 100% fossil-free and ISCC plus certified, suitable for applications across all sectors including medical appliances, home goods, automotive and packaging.”

A.P. Moller Holding said the production plant and supply base will require an investment of nearly €1.5 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,” said the group.

“Furthermore, the success of the venture requires long-term offtake agreements of its customers. Vioneo is in advanced discussions with several major global brands from various industries, including healthcare, automotive, fast moving consumer goods, beauty and home products.

“Vioneo’s projected plans for the Antwerp based plant will proceed in phases, with a Front-End Engineering Design (FEED) set to begin in Q4 2024 and with potential Final Investment Decision (FID) in 2025. Commercial operations may commence during 2028.”

Jan Secher has been appointed chair of the board of directors of Vioneo.

“Secher brings decades of leadership experience, including being CEO of Clariant AG and Perstorp Group,” said Moller.

“Alex Hogan has been appointed Chief Executive Officer of Vioneo, effective November 11th, 2024. Previously, Hogan served as Business Director at INEOS Olefins and Polymers and INEOS Enterprises brings extensive experience in managing large-scale industrial operations.”

Jan T. Nielsen, Chief Investment Officer of A.P. Moller Holding said: “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. 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.”

Secher said: “Vioneo represents a strategic shift in plastics production. 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 defossilisation 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.”