Renewable Feedstock

Together with partners, OMV is actively pursuing the development of industry-scale projects to produce biofuels, biochemicals, and bioplastics from renewable feedstock, including waste streams. Waste biomass, such as residual agricultural, forestry, and wood processing matter, or mixed municipal waste are not in competition with the food and feed chain. While the conversion of such waste biomass into high-value products is often technically challenging, the resulting benefits are a significant reduction in CO₂ compared with fossil fuels and local resource utiliza­tion that creates value. The biobased feedstock, which is used at OMV’s subsidiary Borealis in order to produce sustainable polyolefins, is currently entirely derived from waste biomass such as residual agricultural processing matter or collected waste streams and is not in competition with the food and feed chain. These polyolefins are marketed to the end customer under the portfolio name Bornewables™.

In this section, the focus is on plastics based on renewable feedstock. For more information on energy products based on renewable feedstock, please refer to Energy Transition.

Management and Due Diligence Processes

Certification

The Bornewables™ portfolio is certified according to the International Sustainability & Carbon Certification (ISCC), by applying the mass balance approach. This means that the materials are not physically segregated in the production processes throughout the entire supply chain, but they are separated in bookkeeping to provide a verifiable basis for tracking the amount and sustainability characteristics of circular and/or biobased content in the value chain. The production location in Antwerp, Belgium, received ISCC PLUS certification in 2022, giving Borealis in total seven accredited European production locations and an even broader production base for mass-balanced products, for example the Bornewables™ and Borcycle™ C product ranges.

Life Cycle Assessment

With the new life cycle assessment published in 2021, Borealis demonstrated that Bornewables™ is especially suited to reduce carbon emissions. The assessment showed that the greenhouse gas emissions of Bornewables™ polypropylene and polyethylene go beyond carbon neutrality and can be reduced by at least 120% from cradle to gate (meaning all the steps from the sourcing of raw materials to products leaving Borealis’ production site) compared to fossil-fuel-based polypropylene and polyethylene. According to the LCA’s findings, using Bornewables™ substantially reduces a product’s carbon footprint by at least 1.9 kg CO₂e for every kilogram of polymer. This is possible while offering the same high performance levels as virgin polyolefins and the ability to be recycled in the same way.

2022 Actions

Over the course of 2022, OMV’s subsidiary Borealis continued to commercialize the Bornewables™ portfolio. Some significant developments include:

• Collaboration with pipe manufacturer Uponor, enabling it to use Bornewables™ to create the world’s first cross-linked polyethylene (PE-X) pipes based on renewable feedstock. The pipes have an unprece­dented carbon footprint reduction of up to 90% when compared to conventional fossil fuel-based PE-X pipes, which marks a major step forward in helping companies in the building and construction industry achieve their sustainability targets. Similarly, Nupi Industrie Italiane (NUPI) selected Bornewables™ for the next generation of its piping solutions for domestic plumbing and heating, as well as heating, ventilation, and air conditioning (HVAC) systems designed to perform under higher stress conditions and temperatures.
• Borealis and Trexel, a leading expert in foam injection and blow-molded parts, co-developed a new plastic bottle based on a grade from the Bornewables™ portfolio. The bottle is reusable and designed to be fully recyclable.
• Borealis also worked with the Finnish ice cream company Froneri and the German packaging specialist PACCOR to produce packaging molded from Bornewables™ for the Aino brand of ice cream. The innovative mono-material packaging is also 100% recyclable.
• In June 2022, Borealis launched the Borvida™ portfolio of circular base chemicals, including ethylene, propylene, butene, and phenol. The portfolio is both complementary to and the building block for the Bornewables™ range. Initially, the Borvida™ portfolio comprised Borvida™ B, from non-food waste biomass, and Borvida™ C, from chemically recycled waste. Going forward, the range will also evolve to include Borvida™ A, sourced from atmospheric carbon capture.
• Borealis’ collaboration with LanzaTech, Technip Energies, and the On footwear company has taken its first steps toward capturing and using atmospheric CO₂ as a feedstock. Technology from LanzaTech captures carbon monoxide emitted from industrial sources, such as steel mills, before it is released into the atmosphere, and ferments it to liquid ethanol. The ethanol is then dehydrated to create ethylene, which Borealis polymerizes to become EVA (ethylene vinyl acetate), the versatile and lightweight material that On starts working with to create a performance foam for shoes.
• In February 2022, Borealis received EUR 20 mn of funding from Business Finland to launch the innovative Sustainable Plastics Industry Transformation (SPIRIT) program. SPIRIT aims to drive the transformation of the plastics industry in Finland by replacing conventional fossil-fuel-based feedstock with renewably sourced alternatives, developing technologies and processes for mechanical and chemical recycling of plastics, and decarbonizing production operations through electrification, use of hydrogen, and renewable energy sources.
• Borealis joined the Renewable Carbon Initiative, which aims to support and accelerate the transition from fossil carbon to renewable carbon for all organic chemicals and materials. The initiative aims to bring stakeholders together, provide information, and shape policy with the aim of achieving a climate-neutral circular economy.

Outlook

By 2030, OMV plans to establish a production capacity of approximately 2,000 kta of sustainable polymers and other chemicals, including biobased polyolefins. To achieve this, OMV will build up capacity for the procurement of sustainable feedstock and develop and implement a sustainable product portfolio for biobased polyolefins.