Borealis has awarded Maire Tecnimont with the engineering, procurement, construction management (EPCM) and commissioning services contract for a new propane dehydrogenation (PDH) plant, including the requisite utilities and interconnections in Belgium.
The new facility, located at an existing Borealis production site in Kallo, Belgium, will have a targeted production capacity of 750,000 metric tonnes per year, making it one of the largest and most efficient in the world.
The value of the deal is worth EUR 90 million and the project is on a reimbursable basis.
The new plant will employ Honeywell UOP’s Oleflex technology for on-purpose propylene production. The new plant is scheduled to start up in mid-2022.
“Investing in our European assets is essential in order to make good on our commitment to being our customers’ supplier of choice,” said Alfred Stern, Borealis CEO. “In a market environment characterised by rising European demand for propylene, our state-of-the-art Kallo PDH plant will set new standards in quality, competitiveness and sustainability: with its associated energy cogeneration unit, this plant will be one of the most energy efficient olefins plants worldwide to produce on purpose propylene.”
“We are proud to be part of this new PDH project. It is a game-changing initiative that will provide a significant boost to the European petrochemical value chain,” commented Pierroberto Folgiero, Maire Tecnimont chief executive officer. “Our technological angle in processing natural resources, combined with our distinctive competencies in polyolefins, has made us the partner of choice for leading industrial players like Borealis.”