INEOS Enterprises Shoots to Become Top European Biodiesel Supplier
17 October 2006
INEOS Enterprises, a leading global manufacturer of refined petroleum products and basic, intermediate and speciality chemicals, plans to grow its biodiesel business across Europe significantly.
The first step in its strategy is to achieve at least 2 million tonnes (about 604 million gallons US) biodiesel output by 2012, with some 1.2 million tonnes by 2010.
INEOS Enterprises is aiming to become the first truly pan European supplier of biodiesel to meet the significant growth in demand predicted for Europe. We will build world scale plants using the latest technology to produce high quality products that will be highly competitive in all market conditions.—Harry Deans, CEO INEOS Enterprises
In the UK, INEOS confirmed that its investment in a new 500,000-tonne biodiesel production facility at Grangemouth, Scotland will proceed, with significant support being received from the Scottish Executive in the form of a Regional Selective Assistance award. INEOS Enterprises anticipates that the facility will be operational by 2008.
The investment at Grangemouth may also include a bioethanol facility, which would take advantage of INEOS Enterprises’ knowledge and expertise in synthetic ethanol (ethanol produced from ethylene, a petroleum by-product). INEOS Enterprises operates synthetic ethanol plants at Grangemouth, and is the largest synthetic ethanol producer in the world.
In addition to the Grangemouth investment, INEOS is proposing additional investments, potentially at the INEOS sites at Antwerp (Belgium), Lavera (France), and Wilhelmshaven (Germany) or Cologne (Germany).
INEOS Enterprises has more than 10 years experience in the biodiesel sector, and already holds a strong position in the French market, which is to be further strengthened by an ongoing €70 million investment to double biodiesel output at its site at Baleycourt by 2008.
Baleycourt is in the heart of France’s second largest vegetable oil producing region, and the new investment currently underway at the site will allow around 400,000 tonnes of locally produced rapeseed to be transformed into oil and then biodiesel for supply to the French, Belgian and German fuels markets.
INEOS is well skilled in commissioning and operating low cost, high yield commodity plants and has the size and scale that is essential for success in this business. By building on the ready made synergies with our existing European refining operations, coupled with our existing client base and market contacts, we firmly believe that we have the competitive edge and can develop into Europe’s premier biodiesel company.—Andy Currie, Director of INEOS Capital and Chairman of INEOS Enterprises
The INEOS production network spans 68 manufacturing facilities in Europe, North America, South America, Asia and Africa. The combined INEOS Group, which includes the recently acquired Innovene (BP) people and assets, generates more than $33 billion in revenues and has more than 15,000 employees. This makes INEOS the third-largest independent chemicals company in the world and the largest in the UK, as well as the country’s largest private company.
The crude oil refineries at Grangemouth and Lavera are operated by INEOS Refining, which is the largest independent refiner in the EU. The Grangemouth refinery supplies ultra low-sulphur diesel and gasoline to the fuels markets of Scotland and northern England, while the Lavera refinery supplies the fuels markets of France, Switzerland and southern Germany. Investment in biodiesel at both of these sites would provide INEOS Enterprises with excellent customer/supplier synergies.
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