AP Møller Holding, the investment arm of the Maersk family, has announced its support for reducing fossil fuel dependence in plastic production with plans for a €1.5 billion plastics factory in Antwerp, Belgium. The project aims to address one of the most significant environmental challenges: decarbonizing the production of plastics, which are essential for various industries but traditionally rely on fossil fuels like oil, gas, and coal.
The new facility, to be developed by a newly formed company called Vioneo, will use green methanol derived from low-carbon hydrogen or biogenic sources and powered by renewable energy. Once operational, the plant will be the first in Europe to produce plastics at scale without using fossil fuels, marking a significant step towards greener chemical production.
“Europe’s chemical industry has long been viewed as a sunset industry,” said Jan Nielsen, Chief Investment Officer at AP Møller Holding. “This project shows the potential for a sustainable future.”
Plastics are vital for a wide range of products, from packaging to medical devices, and their production is responsible for roughly 4% of global greenhouse gas emissions, according to the OECD. The plant in Antwerp’s Vopak Energy Park aims to change that by producing around 300,000 tonnes of polypropylene and polyethylene annually using green methanol. While this accounts for just 0.14% of the current global plastics market, it represents a critical first step toward cleaner production methods.
“It’s a small step in the grand scheme of things, but an important one,” added Nielsen, hinting that Vioneo plans to build more plants in the future.
The plant faces several challenges, including securing 800,000 tonnes of green methanol annually and ensuring access to affordable renewable electricity. The company will also need to find buyers willing to pay a premium for greener products. However, Vioneo is already in “advanced discussions” with global brands interested in sustainable plastics, particularly in Europe, where companies are more receptive to eco-friendly initiatives.
“Europe is leading the charge on sustainable chemical production,” said Jan Secher, chair of Vioneo. “Being close to customers who value sustainability is a key reason for choosing Antwerp as the plant’s location.”
Vioneo will seek financial backing from the European Commission’s Innovation Fund, and AP Møller Holding plans to eventually attract co-investors once the project matures. The final investment decision is expected in 2025, with production scheduled to begin by 2028.
The project comes at a time when concerns are rising about Europe’s competitiveness in the face of strict climate regulations, especially compared to the US and China. Some business leaders, including Sir Jim Ratcliffe of Ineos, have criticized Europe’s “suffocating bureaucracy” for hampering growth and investment in the region. Nevertheless, AP Møller Holding remains committed to driving innovation in sustainable industries, continuing the legacy of the Maersk family, who founded AP Møller-Maersk in the early 20th century and expanded the group’s investments into renewable energy, medical diagnostics, and now, green plastics.
