LyondellBasell Advanced Recycling Project Selected for EU Innovation Fund Grant
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Insights
An investment of €40 million into LyondellBasell's advanced recycling demonstration plant by the EU Innovation Fund is a significant endorsement for the company's MoReTec technology. This technology exemplifies a shift towards sustainable production processes in the chemical industry, which is under increasing pressure to reduce its carbon footprint. The grant signifies confidence in the company's ability to contribute to the European Green Deal's objectives of decarbonization and innovation in clean tech.
From an economic standpoint, the funding could potentially lower the entry barriers for similar technologies, possibly leading to increased competition in the recycling sector. The long-term implications for stakeholders include potential cost savings due to reduced reliance on fossil-based materials and the alignment with regulatory trends favoring circular economy practices. However, the transition to such technologies requires significant capital and it remains to be seen how scalable and economically viable the MoReTec technology will be beyond the demonstration phase.
The MoReTec technology's ability to convert polyolefin waste into pyrolysis oil and gas, which can be used as a substitute for fossil-based materials, represents a substantial advancement in plastic recycling and circular economy. The use of renewable electricity to power the plant aligns with the growing trend of electrification across various industrial processes, reducing reliance on non-renewable energy sources.
For stakeholders, the development of such technologies could lead to a stronger market position for LyondellBasell, as demand for sustainable materials increases. The CirculenRevive brand could potentially capture a significant market share in sectors with high sustainability standards, such as medical and food packaging. However, the success of this initiative will depend on market acceptance of recycled materials and the regulatory environment that may either incentivize or mandate their use.
The announcement of the EU's financial backing for LyondellBasell's MoReTec plant is likely to have a positive impact on the company's stock, as it reflects innovation leadership and alignment with environmental regulations. Investors may view this as a proactive step in risk management, considering the increasing regulatory focus on sustainability.
The company's capacity to process the equivalent of the plastic waste generated by over 1.2 million citizens annually suggests a significant operational scale. This scale could give LyondellBasell a competitive edge in the recycled polymer market. However, the plant's start-up timeline in 2026 indicates that any financial benefits will be more medium to long-term. Investors will be keen to monitor the plant's progress and any preliminary results that could indicate the future profitability of the MoReTec technology.
OTTERDAM, NETHERLAND / ACCESSWIRE / January 22, 2024 / LyondellBasell: (LYB) has been selected to receive a €40 million grant from the European Union (EU) Innovation Fund. The grant will support the fully-electrified, industrial-scale advanced recycling demonstration plant the company plans to build at its Wesseling, Germany site. The company's MoReTec plant is one of the 41 projects selected in the EU Innovation Fund ‘Third Call for Large Scale Projects'. The EU is committing EUR 3.6 billion as part of its efforts to fund innovative clean-tech projects to support decarbonization.
"We are delighted with the EU Innovation Fund support for the development of our MoReTec technology," said Jim Seward, EVP and Chief Innovation Officer. "Investing in our first industrial-scale advanced recycling demonstration plant will provide us with valuable operating experience and additional technological know-how needed to scale-up and fully commercialize our MoReTec technology."
The company's MoReTec technology demonstrates a high level of innovation in the recycling of polyolefin waste to produce pyrolysis oil and pyrolysis gas. Pyrolysis oil is a substitute for fossil-based materials used in polymer production. Typically, pyrolysis gas streams are consumed as a fuel, however, the MoReTec technology enables the pyrolysis gas to be recovered as well, contributing to the production of polymer and displacing fossil-based feedstocks, which reduces CO2 emissions.
The technology incorporates electrification of the core reaction process, making it possible for the unit to operate completely on renewable electricity. Scalable single train design along with low operating temperatures resulting from the use of catalysts and innovative heat transfer design are additional advantages of this differential technology.
These advantages enable the MoReTec technology to achieve high plastic to plastic conversion rates, helping increase the circularity of plastic waste.
The MoReTec demonstration plant in Germany will convert post-consumer plastic waste into feedstock for the production of new plastic materials to be offered under the company's CirculenRevive brand. CirculenRevive products offer solutions for a wide range of applications, including medical and food packaging. The MoReTec plant in Wesseling will have an annual processing capacity equivalent to the amount of plastic packaging waste generated by over 1.2 million German citizens per year. The MoReTec plant is planned to be started-up in 2026.
The Innovation Fund is one of the world's largest funding programs for the demonstration and commercialization of innovative low-carbon technologies. It is one of the key tools of the European Green Deal Industrial Plan and is financed by revenues from the auctioning of allowances from the EU Emissions Trading System (EU ETS).
About LyondellBasell
We are LyondellBasell (NYSE:LYB) - a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors and society. As one of the world's largest producers of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. For more information, please visit www.lyondellbasell.com or follow @LyondellBasell on LinkedIn.
Contact:
Andreas Anker, Director, Circularity Strategy & Integration
Email: andreas.anker@lyb.com
Tel. : +49 2236 72 1595
DISCLAIMER
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Climate, Infrastructure and Environment Executive Agency. Neither the European Union nor the granting authority can be held responsible for them.
FORWARD-LOOKING STATEMENTS
The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, our ability to meet our sustainability goals, including the ability to increase production of recycled and renewable-based polymers; the successful implementation of growth plans; and the successful construction and operation of the facilities described in this release. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2022, which can be found at www.LyondellBasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov.
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SOURCE: LyondellBasell
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FAQ
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