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Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, will study the feasibility of a new, world-scale propane dehydrogenation (PDH) plant. The plant would be located at the existing Borealis production site in Kallo, Belgium.
The feasibility study will be carried out over the next nine months. The final investment decision is expected to be taken in the third quarter of 2018, while the potential start-up of the plant is scheduled for the second half of 2021. The new PDH plant would have a targeted annual production capacity of 740 Kiloton per calendar year, making it one of the largest and most efficient facilities in the world. The Borealis Kallo location has been chosen due to its excellent logistical position and its experience in propylene production and handling. Borealis has selected Honeywell UOP’s OleflexTM technology for the
new plant. This technology is widely used and is a reliable and sustainable choice for on-purpose propylene production.
"A new PDH plant of this scale would be a significant investment for Borealis in Europe. It would strengthen our long term commitment to be the innovative polypropylene and propylene supplier that is meeting the needs of our customers today and in the future," says Markku Korvenranta, Borealis executive vice-president, Base Chemicals. "During the coming quarters we will be engaging with the value chain partners and authorities to work out the commercial and operational details of the project."
"In Europe propylene demand is increasing while the supply growth from steam crackers and refineries is slowing down. With the market tightening, an on-purpose propylene investment is needed to ensure a reliable platform for continuous, long-term growth in propylene and its derivatives in Europe," explains Thomas Van De Velde, Borealis vice-president, Hydrocarbons & Energy.
Flexible, integrated steam crackers as well as the PDH plant and their associated production units, form the backbone of the Borealis olefins and polyolefins portfolio in Europe. Borealis sources basic feedstocks such as propane, naphtha, butane and ethane from the oil and gas industry and converts these into ethylene, propylene and other high value hydrocarbons.