Waste-to-chemistry project kicks off in Rotterdam

A consortium of companies comprising Air Liquide, AkzoNobel Specialty Chemicals, Enerkem and the Port of Rotterdam has signed a project development agreement covering initial investments in an advanced waste-to-chemistry facility in Rotterdam.

The facility is expected to be the first of its kind in Europe to provide a sustainable alternative solution for non-recyclable wastes, converting waste plastics and other mixed wastes into new raw materials. Using technology developed by Enerkem, the facility will convert up to 360,000 tonnes of waste — the total annual waste of more than 700,000 households — into 270 million litres of ‘green’ methanol for use in the chemical industry and transportation sector.

The plant will have two production lines, or twice the input capacity of Enerkem’s commercial-scale plant in Edmonton, Canada. It is set to benefit from the state-of-the-art infrastructure available within the Port of Rotterdam, as well as synergies with Air Liquide (large industries) for supplying the required oxygen and, together with AkzoNobel, the raw material hydrogen. AkzoNobel also acts as a customer for the methanol.

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The initial investments, which cover detailed engineering, the set-up up of a dedicated joint venture and completing the permitting process will be worth €9 million. The consortium aims to take the final investment decision for the estimated €200 million project later in 2018 and has appointed Rabobank as the lead advisor for the financing process.

Realisation of the project is supported by the Dutch Ministry of Economic Affairs and Climate Policy, which has agreed to develop mechanisms and regulation that will help bring this new technology to full scale to support the low-carbon transition of the Dutch economy. The project is also supported by the City of Rotterdam, the Province of South Holland and InnovationQuarter, the regional development agency.

“This is an important milestone for the project and a significant step toward implementing a sustainable and circular chemical industry,” said Marco Waas, director RD&I at AkzoNobel Specialty Chemicals, who leads the consortium’s steering committee. “The agreement comes at a very appropriate time given the current challenges in plastics recycling in Europe.

“We can convert non-recyclable waste into methanol, an essential raw material for many everyday products, including sustainable transportation fuel. Not only can this be used in the existing supply chains and replace fossil sources, but it also avoids CO₂ emissions otherwise produced by burning waste.”

“Waste to chemistry is a prime example of our collaborative approach to innovation, and driving sustainability to business value,” said Peter Nieuwenhuizen, chief technology officer for AkzoNobel Specialty Chemicals. “We have made vital progress in the past months. The partners have agreed to their contributions and roles, we are very pleased with the collaboration with the Dutch government and we welcome Rabobank on board as a financing partner. We can now go full steam ahead towards a final investment decision later this year.”

Top image credit: ©stock.adobe.com/au/Leonid Andronov