Borealis, a chemicals company operated by Mubadala and co-owner of the largest chemical plant in the UAE, is seeking to expand its market globally by joint ventures with Adnoc in India and acquisitions of plastics recycling facilities in Europe, his chief executive said.
The Austrian business, which is the eighth largest manufacturer of polyethylene and polypropylene and has oil and gas company OMV as a major major investor, is experiencing a large-scale expansion in the wake of Adnoc's plans to increase its refining and petrochemical capacity at its Ruwais refinery.
"What we tried to do as a next move is to keep expanding the foundation of Europe and Ruwais, we tried to look at globalization," Borealis chief executive Alfred Stern informed The National in Abu Dhabi.
Borealis is working with European chemical company BASF, Adnoc and Indian conglomerate Adani Group in India to create a $4 billion chemical complex that will be operated entirely by renewable energy in western Gujarat. It will have a propane dehydrogenation system with feedstock to be shipped by the Abu Dhabi National Oil Company when finished. The plant would manufacture propylene, which is important for plastics manufacturing, as well as other chemicals. Adnoc and Borealis would eventually produce polypropylene to meet the Indian market, with acrylic development by BASF and Adani, Mr Stern said. By the first half of next year, a feasibility study on the venture will be conducted with the wind and solar elements already at an advanced stage of co-investment.
"It would be, in my understanding, the first petchems venture to provide 100% renewable electricity," Mr Stern said.
The Austrian chemicals company, who switched to plastics recycling in 2016 with the purchase of Ecoplast Kunststoffrecycling, is involved elsewhere in Europe in seeking further prospects in the sector as it finds a more efficient way to add power.
"We're sure to look at opportunities for growth in recycling," Mr Stern said.
"We've more than increased our potential since 2016, we've made a promise and we're going to do it faster if we find opportunities faster," he added.
Borealis is working with Adnoc on several projects, with the latter preparing $45 billion (Dh165bn) investments with partners to evolve its downstream sector as it aims to double its refining capacity and triple its chemical capacity by 2025, including plans to create the world's largest embedded refining and petrochemical complex.
Borealis is carrying out two large-scale projects in Ruwais, including the development of the world's largest mixed-feed cracker and a fifth polypropylene unit, through its joint venture with Adnoc, Borouge Petrochemicals. In the packaging, plastics and acrylic industries, the compounds find varied uses.
"The plan is making really good strides and we'd see an 11% increase in polyolefin production for the complex by 2021, and with polypropylene-5, we're going to reach 5 million tons," Mr Stern said.
"We're looking at a mixed feed cracker for Borouge 4 as a next step, and here we're in the[ Front-End Engineering Design] phase of feed," he added.
Feed refers to basic engineering work performed after conceptual design and feasibility studies have been completed.
Tags : Adani Group, Mubadala, Borealis, BASF, Adnoc,