The world’s first large-scale fossil-free polyolefin production plant, with a total investment of 1.5 billion euros, is set to be relocated to China

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Vioneo, based in Switzerland, previously announced that its world’s first large-scale factory for producing fossil-free polyolefins, with an investment of 1.5 billion euros, has been decided to be relocated from the port of Antwerp in Belgium to China. The company’s Chief Business Officer, Katja Wodjereck, recently explained the reasons behind its choice of China. “Companies must carefully consider three key factors: cost-effectiveness, the speed of project implementation, and customer collaboration, all of which China is able to meet simultaneously. ”Wojerek emphasized that raw material costs directly determine the scalable application and commercialization of fossil-free plastics. China boasts the most advanced commercial supply chain for green methanol in the world; purchasing materials locally can significantly reduce raw material and logistics costs. Additionally, the strong local engineering capabilities lead to faster project delivery, as well as lower capital expenditures and overall operating costs, all of which will greatly improve the return on investment for such factories. “We have always emphasized ‘China Speed’. ”Wojerek said that many of the company’s key customers have set sustainability strategy goals or emission reduction commitments for 2030, and the rapid commissioning of the factory is crucial for them to meet these targets. She added that although, given the current macroeconomic conditions, consumers are less willing to pay for green products, 2030 represents a key deadline for achieving net-zero targets. Coupled with rising costs of fossil-based raw materials and carbon emissions, non-fossil polymers will gradually gain a cost advantage. Moreover, the industries in which Vioneo’s products are used, such as automotive and healthcare, have a strong demand for alternative materials and room for price premiums; therefore, customers need to take action ahead of time to seize this opportunity. It is understood that Vioneo is a 100% wholly-owned subsidiary of the Danish A.P. Moller Group, established in 2024; the group’s key listed company is the shipping giant Maersk. Vioneo is a dedicated independent strategic platform for the Müller family to move beyond their traditional core business and enter the global market for fossil-free polyolefins. Vioneo originally planned to launch its first plant capable of producing 300,000 tons per year of fossil-free plastics at the Antwerp Port in 2028. This plant is considered a milestone project for low-carbon chemical production in Europe; it will use green methanol as raw material and employ Honeywell’s MTO technology to convert green methanol into ethylene and propylene, which are then polymerized into fossil-free polypropylene and polyethylene. No fossil fuels will be used in this process, and the production activities will be powered by renewable energy. Once operational, the plant will be able to reduce carbon emissions by around 1.5 million tons per year. In January of this year, the company decided to relocate all project investments, its technical infrastructure, and its partnership resources to China, with construction starting in 2027 and operations commencing in 2030. It is reported that discussions are underway regarding the location for the new factory, with an official announcement expected within the next 1 to 2 months. Since 2025, China has continued to strengthen its policies on green fuels. By the end of 2025, the total planned annual production capacity of green methanol in China is expected to exceed 60 million tons, with over 600,000 tons already in operation. Industry experts point out that the favorable policy environment and industrial advantages have led Vioneo to establish the world’s first fossil-free plastic factory in China.