Austria’s Borealis aims to produce 1.8m tonnes/year of circular products by 2030

MADRID (ICIS)–Borealis aims to increase its production capacity for circular products, including polymers, to 1.8m tonnes/year by 2030, up from the current 100,000 tonnes/year, the petrochemicals arm of Austria’s energy major OMV said on Friday.

The company, which recently announced the divestment of its emissions-intensive fertilizers division, also said it aims to more than halve its Scope 1 and Scope 2 greenhouse gas (GHG) emissions to below 2m tonnes/year by 2030, down from the 5.1m tonnes of emissions it emitted in 2019.

Borealis also said it aims to get 100% of its electricity supply from green sources by 2030.

HIKE IN CIRCULARITY
The company has set out two targets to increase its production of circular polymers; it is now a large producer of polyethylene (PE) and polypropylene (PP), two easy-to-recycle polymers.

“[Current production of 100,000 tonnes/year of circular products] include recycled and renewable polymers and chemicals as well as renewable hydrocarbons. By 2025, Borealis targets a six-fold increase in the share of circular products and solutions, or 600,000 tonnes/year,” said the company.

“By 2030, the volume of circular products and solutions is set to reach 1.8m tonnes/year globally, turning today’s plastic waste into a valuable resource to be reused.”

EMISSIONS
The company said that “moving from a linear towards a circular economy” will also help it reduce Scope 3 emissions, but it did not specify any targets.

Scope 3 are indirect GHG emissions that are a consequence of company activities but occur from sources outside or not controlled by the company.

In an interview with ICIS in December, Borealis CEO Thomas Gangl said the company is assessing its Scope 3 emissions and would publish a report “as soon as possible”.

“The emission reduction portfolio [from 5.1m tonnes/year emissions to below 2m tonnes/year by 2030] includes increased use of electricity from renewable sources throughout the decade and carbon capture [and storage, CCS] projects which will come on stream in the second half of this decade,” said Borealis.

“The reduction target also includes the announced divestment of the Borealis nitrogen business, which comprises fertilizers, technical nitrogen, and melamine.”

The company divested that division to Czech Republic’s Agrofert for €810m.

RENEWABLE ELECTRICITY
The company said 25% of the electricity it consumed came from renewable energy sources such as wind and solar power.

Its so-called Strategy 2030 would contemplate increasing that amount of green electricity to 40% by 2025.

“By 2030, 100% of the electricity used in its polyolefins and hydrocarbons operations shall be of renewable origin,” the company concluded. “The Borealis Strategy 2030 is our roadmap to making life more sustainable for future generations. Our significantly expanding footprint in value-added and circular chemicals and material solutions is rooted in our dedication to innovation and customer focus.”

“Re-inventing essentials for sustainable living is our commitment to do our part to address global climate change and our guide for our own sustainable success in a carbon net-zero world,” said Gangl.

Borealis is now majority-owned by Austrian energy and petrochemicals major OMV. In 2021, Borealis’ sales, including joint ventures, stood at €10.15bn, with net profit at €1.40bn.

OMV has a 75% stake in Borealis; the remaining 25% is owned by a holding company of Abu-Dhabi-based Mubadala. At the same time, Borealis holds a stake in Abu Dhabi’s Borouge polyolefins complex, with production capacities at 2.7m tonnes/year of PE and 2.2m tonnes/year of PP.

In May, Borealis and its joint venture partner ADNOC launched an initial public offering (IPO) for 10% of Borouge’s issued share capital, aiming to raise $2bn in proceeds; the enterprise value (EV) for Borouge stands at around $20bn.

Post-IPO, ADNOC will hold a 54% stake in Borouge while Borealis’ stake will be 36%.

ICIS will publish an interview with Borealis’ CEO on 13 June

Front page picture: OMV’s headquarters in Vienna, where Borealis’ main offices are located
Source: Borealis