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• PET Bottle – The largest of its kind in China, the energy farm is officially known as the Rudong offshore photovoltaic-hydrogen energy storage project. It has been successfully connected to the grid and began operations on Dec 31, 2024, in Rudong county, Jiangsu province, CHN Energy said in a press release on Friday 06-01-2025
• New enzyme technology for environmentally friendly plastic recycling

 

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Versalis has announced that it will shut down the Brindisi cracker by April 2025, but will continue polyethylene production at the site

The company plans to invest €700 million into the Brindisi facility to establish a lithium-iron-phosphate (LFP) energy accumulator production plant by the end of 2028, in collaboration with Seri Industrial. This venture will involve building a gigafactory, utilizing two approximately 4-hectare areas for the production of active materials and the formation of accumulators, located in the western section of the plant.

The details of this site reconversion project were shared by Versalis at a technical meeting in Rome, hosted by the Ministry of Business and Made in Italy (Mimit). This was the second meeting focused on the restructuring efforts of Versalis, the chemical subsidiary of ENI, following a previous discussion regarding its Sicilian plants. Polyester POY

While the production conversion is attracting attention, the decision to shut down the cracker has sparked criticism from chemical unions. They argue that the gigafactory could be built on existing land at the Brindisi site without needing to close the cracker. Sebastiano Tripoli, National Secretary of Femca Cisl, stated, “ENI should begin constructing the gigafactory on available areas at Brindisi, regardless of the cracker closure.” The unions are also concerned about the continuity of employment, not just for Versalis workers, but for those in related petrochemical industries.

Uiltec, another union, insists that the dispute over the closure be handled through a national protocol rather than through a local program agreement. “The government must ensure that the country maintains a robust basic chemical industry,” the union said in a statement. They also emphasized the importance of keeping the cracker closure reversible, as the market dynamics may change in the medium term. Additionally, they highlighted that European Commission leaders are reassessing the strategic value of the chemical industry on the continent. Polyester POY

Fialc Cisal, a third union, has proposed keeping the cracker in operation for a reasonable period. They also seek assurances on the management of personnel, expressing concerns about the proposed 50% co-participation with other parties, which they see as distancing ENI from the project and undermining its commitment to workers during the transition. They emphasized that ENI should maintain full responsibility for the project’s success and for securing workers’ futures.

Versalis first revealed its restructuring plan in March 2024, outlining its intention to reduce its petrochemical activities and invest in more sustainable projects. The plan will culminate by 2029 and involves investments of about €2 billion over the next five years. This restructuring includes the closure of the Brindisi and Priolo cracking plants—the last two still operating in Italy—and the polyethylene production facility in Ragusa.

The move to shut down the cracker and pivot towards battery production marks a significant shift in Versalis’ strategy. The company aims to capitalize on the growing demand for lithium-ion batteries, aligning with global trends toward greener technologies and renewable energy. This shift is part of ENI’s broader sustainability strategy to focus on lower-carbon and renewable energy solutions, responding to the accelerating energy transition. Polyester POY

The unions, however, stress the need for careful management of the transition, ensuring that the shift away from traditional petrochemical processes does not result in a loss of jobs or industrial capabilities. They argue that any changes to the Brindisi facility should prioritize the well-being of employees and the broader regional economy, particularly as the chemical industry remains a vital sector for both Italy and Europe.

The upcoming years will be crucial for Versalis as it navigates the challenges of its restructuring, balancing environmental goals with economic and social considerations. The success of this transition will depend on maintaining a clear focus on both technological innovation and the workforce, ensuring that Versalis can contribute to the green energy sector while preserving valuable industrial expertise. Polyester POY

 

European Chemical Industry Faces Capacity Reduction

The European chemical sector has experienced a significant decline, losing over 11 million tonnes of production capacity in the last two years, according to the latest report by Cefic. This report highlights the urgent need for bold and decisive action from Brussels to prevent further erosion of the industry’s competitiveness.

Industry at a Breaking Point

Cefic’s recent study on the European chemical industry’s competitiveness underscores the sector’s fragile state. The organization warns that without immediate intervention, the industry could collapse, leading to severe consequences for various supply chains, including healthcare, automotive, renewable energy, and technologies crucial for the Green Deal’s implementation. Polyester POY

Between 2023 and 2024, over 11 million tonnes of production capacity are slated for closure, affecting 21 industrial sites. Since 2021, European chemical production has decreased by 14%, driven by sluggish demand, escalating energy costs, and stringent regulatory frameworks. Over the past 15 years, the EU’s share in the global chemical market has dropped sharply from 23% to 13%.

Key Challenges Identified

Marco Mensink, CEO of Cefic, emphasizes the critical need for immediate action to safeguard the future of the industry. He highlights the importance of reducing energy costs, ensuring access to essential raw materials, and fostering innovation to maintain the sector’s viability. “The collapse of our industry will trigger a domino effect, impacting entire supply chains and undermining the Green Deal’s disruptive technologies essential for Europe’s transition,” Mensink warns. Polyester POY

The Competitiveness Report, commissioned by Advancy, provides a comparative analysis of the European chemical industry against global competitors, including the USA, China, Japan, Brazil, India, and the Middle East. The study identifies both cost-related and non-cost-related factors that hinder the industry’s competitiveness.

Factors Undermining Competitiveness

Analysts have pointed out several key issues contributing to the weakened position of the European chemical sector:

1. High Energy Costs: European chemical producers face significantly higher energy expenses compared to their counterparts in other regions. This disparity puts the industry at a competitive disadvantage, making it difficult to sustain operations and invest in future growth. Polyester POY
2. Stringent Environmental and Regulatory Costs: The sector is burdened with complex regulatory requirements and environmental standards. While these regulations aim to promote sustainability, they often result in increased operational costs and administrative burdens.
3. Administrative Barriers to Innovation: Innovation is crucial for the industry’s survival, yet bureaucratic hurdles and lengthy approval processes stifle progress. These delays deter investment and can push companies to seek opportunities outside Europe, where regulatory environments may be more favorable.
4. Access to Critical Raw Materials: Ensuring a stable supply of essential raw materials is another challenge. The industry depends on these materials for production, and any disruption in their availability can severely impact output and competitiveness. Polyester POY
5. Human Capital Constraints: The sector also struggles with a shortage of skilled labor, which hampers its ability to innovate and adapt to new technologies. Investing in human capital is essential to drive future growth and maintain a competitive edge.

Call for Immediate Action

The report calls on EU policymakers to implement measures that address these challenges head-on. Reducing energy costs, simplifying regulatory frameworks, and promoting investment in innovation are pivotal steps to revitalize the sector. Additionally, ensuring access to critical raw materials and developing a skilled workforce are necessary to secure the industry’s long-term future.

Cefic’s message is clear: the European chemical industry is at a critical juncture. Without decisive action, the sector risks further decline, jeopardizing Europe’s economic stability and its ability to lead in emerging technologies. The time for bold and urgent measures is now, as the future of Europe’s chemical industry—and by extension, its broader industrial landscape—hangs in the balance. Polyester POY

Conclusion

The European chemical industry is facing unprecedented challenges that threaten its global competitiveness. With over 11 million tonnes of production capacity at risk, the sector is in dire need of policy interventions to mitigate high energy costs, streamline regulatory processes, and foster innovation. The stakes are high, and the need for immediate action cannot be overstated. Only through concerted efforts can the industry hope to regain its footing and continue to contribute to Europe’s economic and technological progress.

Tough times for Dutch recycling sector: new facility canceled again

The Dutch recycling industry is in crisis. More and more recycling companies are having to close their doors.

The Belgian-Dutch start-up Advanced Plastic Purification International NV (APPI) has canceled its plans to establish a recycling facility in the port of Ostend. This is because of competition with low-cost plastics from China. It highlights global pressure on European green initiatives.

The Ostend facility was designed to process 500,000 tons of plastic waste annually via maritime transport and would have created 110 jobs in the region.

The project was well advanced, with final construction plans and ongoing environmental permits. The influx of these cheap materials from China fundamentally undermined the project’s business model. Polyester POY

Europe is being flooded

The influence of cheap Chinese plastics has far-reaching implications for the recycling industry worldwide. Large-scale production and cheap labor allow these plastics to be produced at a low cost, flooding the European market. This makes it difficult for European companies, which focus on sustainability and environmentally friendly processes, to remain competitive.

Many more bankruptcies

The Dutch plastic recycling industry is in dire straits, resulting in a series of bankruptcies. Companies that once pioneered plastic waste reprocessing are struggling.

Recently, several leading recycling companies, such as Blue Cycle, Umincorp Polymers BV, Vinylrecycling (formerly BessTrade), and Stiphout Plastics, had to file for bankruptcy due to financial challenges and unfavorable market conditions. Despite their innovations and sustainable contributions, these companies could not compete with the low prices of new materials and imports from outside the EU. Fortunately, Ioniqa, another recycling company that went bankrupt, was able to restart. Polyester POY

Political calls

There are growing calls from the recycling industry and environmental organizations for stricter import duties on new plastic from non-European countries. In addition, subsidies or tax breaks are being proposed for European recyclers to keep them competitive. The question remains, however, whether these measures will come in time to prevent further bankruptcies.

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