Borealis awards EPCM contract to Tecnimont for propane dehydrogenation plant

Borealis awards EPCM contract to Tecnimont for propane dehydrogenation plant

Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilisers, has awarded Tecnimont, the main contractor of Maire Tecnimont, with the engineering, procurement, construction management (EPCM) and commissioning services contract for a new propane dehydrogenation (PDH) plant, including the requisite utilities and interconnections. The new facility, located at an existing Borealis production site in Kallo, Belgium, will have a targeted production capacity of 750,000 metric tonnes per year, making it one of the largest and most efficient in the world.

With a total contract value of approximately €90 million the Kallo PDH project is on a reimbursable basis.

PDH is a vital process step in the production of propylene from propane. Propylene is one of the most important building blocks for the entire chemical industry, and is the raw material used to produce polypropylene (PP). PP is in turn one of the most widely used plastics. It forms the base of countless industrial applications used in numerous sectors, from automotive to textiles, food packaging, healthcare, energy and many others.

The new Kallo PDH plant is being built on an existing Borealis site and was originally selected on the basis of its excellent logistical position and experience in propylene production, but also to be able to capitalise on synergistic effects with the existing PDH unit. The new plant will employ Honeywell UOP’s Oleflex™ technology, a widely used, reliable and sustainable choice for on-purpose propylene production. The new plant is scheduled to start up in mid-2022.

“Investing in our European assets is essential in order to make good on our commitment to being our customers’ supplier of choice,” said Alfred Stern, Borealis CEO. “In a market environment characterised by rising European demand for propylene, our state-of-the-art Kallo PDH plant will set new standards in quality, competitiveness and sustainability: with its associated energy cogeneration unit, this plant will be one of the most energy efficient olefins plants worldwide to produce on purpose propylene.”

“We are proud to be part of this new PDH project. It is a game-changing initiative that will provide a significant boost to the European petrochemical value chain,” commented Pierroberto Folgiero, Maire Tecnimont Chief Executive Officer. “Our technological angle in processing natural resources, combined with our distinctive competencies in polyolefins, has made us the partner of choice for leading industrial players like Borealis.”

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14th March 2019