Borealis is building a brand-new billion-euro propylene plant, Covestro is investing €300 million in an aniline production facility, BASF is pumping €500 million in a new production complex for ethylene oxide and derivatives, while Ineos is spending a whopping €3 billion on a new propane dehydrogenization plant and ethane cracker. This investment by Ineos represents the single largest investment in the European chemical industry in two decades.

On top of that, other chemical companies like Evonik, Nippon Shokubai, Standic and Air Liquide also signaled multi-million euro investments in their Flemish sites. These combined investments will create hundreds of jobs across Flanders and reinforce the Port of Antwerp’s role as Europe’s leading chemical cluster.
And there is more. With the ports of Ghent, Zeebrugge and Ostend, Flanders boasts three more international seaports. Known for its quality infrastructure, the Port of Ghent — which has joined forces with Zeeland Seaports in the Netherlands to form North Sea Port — is determined to invest in future services. With the Rodenhuizedok bio-refinery, it is already hosting Europe’s largest integrated bio-energy production complex, producing bioethanol, biodiesel and bioelectricity under one roof. In addition, a new circular economy will be created in North Sea Port: waste from one enterprise will be used as a raw material by another one.

The North-C-Methanol Project
Launched in October by ten private- and public-sector partners, North-C-Methanol is the first large-scale demo plant which is part of the North-CCU-Hub program, representing an initial investment of €140 million. Together they will reduce the CO2 emissions each year by 140,000 tons. The ten partners comprising the project are multinationals and smaller players from various sectors: ArcelorMittal, Alco Biofuel, Engie, Fluxys, Mitsubish­i Power, Oiltanking, PMV, Proman, the development agency East-Flanders (POM) and North Sea Port. They will also generate 44,000 t of “green” methanol locally, which can be used as feedstock for the chemicals and renew­ables industries, as well as fuel for ships and trains. This CO2 reduction is equivalent to the carbon absorption of around 6 million trees per year. This is a world-class project and is expected to have the largest renewable hydrogen-to-methanol complex in the world.

Important Raw Material
The Carbon Capture & Utilization technology (CCU) technology to transform CO2 into green methanol is one of the most mature CCU technologies. Different demonstration plants are available. However, North-C-Methanol will be a “first of its size” project. Methanol is an important raw material, also for the industry in North Sea Port. Its production is however still based on fossil sources (oil and gas). Different sectors have a need for methanol, which will need to be green methanol in the future. It is an essential building block in the production of methyl­amines, biodiesel, formaldehyde and acetic acid, and it has very interest­ing properties to be used as an alternative fuel: high flame speed, high vaporization heat, low combustion temperatures and others. Used as a blend component or in its pure form, it can be applied in internal combustion engines or in methanol fuel cells, and is easily handled, transported and stored.

Sustainable Industrial Symbiosis
The North-C-Methanol project is a landmark example of sustainable industrial symbiosis: raw materials are extracted locally, and finished products and secondary flows are used locally. All by-products of the methanol production process, such as oxygen, heat, and water, will also be recycled locally. This will ensure a unique and far-reaching industrial and circular integration. Of course, this will fully go hand in hand with the building of much supporting infrastructure, such as new pipelines and storage tanks, in order to transport raw materials, by- and finished products to the correct location. Fluxys and Oiltanking are to be responsible for this, with Mitsubishi Power overseeing the integration and coordination of the entire construction process. Nancy De Groof, VP Business Development of Oiltanking EMEA, says: “Our world, our planet, our home, our responsibility. Circularity is no longer an option but a must. Flanders has all the assets a circular economy could wish for: land, ports, energy, chemical industry and recyclable waste. The will of authorities and industry to work together is strongly present.”

Local, Green Economy
The Ghent part of North Sea Port is the ideal location. There is a large quantity of industrial CO2 emissions to be captured, a high-voltage offshore renewable energy link, plus many potential buyers of green methanol. “This collaboration means we are consolidating our position in the sphere of the circular economy which already exists in the port”, explains Daan Schalck, CEO of North Sea Port. “The port also has at its disposal extensive logistics activities, a massive storage capacity and links via the sea, inland shipping, rail, and road.” Additionally, there exists within the North-CCU-Hub significant expertise in the field of chemical and biotechnology. The City of Ghent and the Province of East Flanders are assisting in the facilitation of the project. Investment Partner PMV also supports the financial section.

Supporting Innovation and FDI
In addition to the advanced integration of the different processes and various industrial partners, the North-C-Methanol project is also unique in terms of its scope and its medium and long-term innovation program. This is no coincidence, as private, public and academic players in Flanders go to great lengths to join forces and innovate together. The innovation trajectory is coordinated by the local knowledge institutes Ghent University, Capture and Bio Base Europe Pilot Plant and supported by the spearhead clusters Catalisti and Flux50. On top of that, the government of Flanders strongly supports business innovation through R&D subsidies and tax incentives. Look­ing at the North-C-Methanol project as a landmark example of sustain­able industrial symbiosis and collaboration, it doesn’t come as a surprise that it is also through FDI that research is turbocharged. According to EY’s latest Attractiveness survey, foreign-owned firms account for a quarter of business R&D in Germany and France, between 30% and 50% in Sweden and the UK, and more than 50% in Belgium. Give it a sustainable thought.

Jessica Manthey, Investment Promotion Manager, Flanders Investment & Trade, Berlin, Germany