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A few days ago, Borealis held a groundbreaking ceremony for its world-class propane dehydrogenation (PDH) plant in Carlow, Belgium, with a target propylene production capacity of 750,000 tons per year. Borealis invested 1 billion euros ($1.1 billion) in the facility, its largest ever investment in Europe.Propane dehydrogenation is an important process step in the production of propylene from propane. Demand for propylene in Europe is growing. But supply is currently dwindling due to the convergence of global market developments. The plant is scheduled to start up in mid-2022, meaning customers in Europe will soon have access to a reliable supply of affordable propylene and its derivatives.
Borealis decided to invest in Carlo's plant with the following factors in mind. First, the Port of Antwerp in Flanders has significant economies of scale due to its well-established transport and logistics infrastructure. Due to the proximity to the company's existing production facilities, Borealis can take advantage of additional synergies. Most importantly, the new PDH unit will use Honeywell UOP's Oleflex technology to produce specialty propylene.
In addition to increased production capacity, the new plant will help improve Borealis' operational efficiency and sustainability. With Oleflex technology it is possible to use less energy in production while producing products of the same quality but with higher yields. In addition, less propane will be required to produce propylene, but more hydrogen will be produced, enabling Borealis to meet not only its own internal needs, but also that of third parties.
Finally, the multi-fuel cogeneration unit embedded in the new PDH unit will generate the large quantities of steam and electricity required for the company's operations.
Alfred Stern, CEO of Borealis, said: "Borealis' investment in this new facility is not only the company's largest investment in Europe, but also the largest investment in Europe by a petrochemical company in the past 20 years. The investment in the European installation clearly demonstrates our determination to improve the efficiency and sustainability of our operations, and our commitment to strengthening the region's position as a key industrial hub."