Troubled Aberdeen-based engineering and consulting giant John Wood Group said Vioneo has awarded it a multi-million dollar FEED contract to deliver the front-end engineering design for its revolutionary plant which will produce fossil-free plastics using green methanol.
Based in Antwerp, Belgium, the renewably powered and energy efficient plant will be the first facility in the world capable of achieving this at industrial scale.
Vioneo is owned by A.P. Moller Holding, the investment arm of A.P. Moller Group and was launched as part of its commitment to advancing green methanol production and promoting sustainable practices in the plastics industry.
The Antwerp plant will have the capacity to produce 300 kilotonnes per annum (ktpa) of high-quality, virgin polyethylene and polypropylene plastics made from green methanol and free of fossil feedstock.
“These plastics will be fully traceable, segregated and carbon negative, enabling customers to reduce Scope 3 emissions,” said Wood.
“In addition, the production of these plastics does not affect the feedstock supply for food production, ensuring the project is sustainable.
“Wood will apply its extensive experience in delivering sustainable and innovative engineering solutions to large-scale energy transition projects.”
Vioneo CEO Alex Hogan said: “Vioneo is driving the transition of the plastics industry by demonstrating the economic viability of large-scale, cleaner production using green methanol instead of fossil fuels. This initiative offers Europe the opportunity to lead the €5 trillion chemicals and materials sector’s defossilisation. Our collaboration with Wood is a crucial step in realising this vision.”
Gerry Traynor, President of Eastern Hemisphere Projects at Wood, said, “Demand for fossil-free plastics in Europe is growing and Vioneo is developing an exciting project that will accelerate the decarbonisation of Europe’s plastics sector. Wood’s strong track record of delivering world-first projects of this size and scale will support Vioneo’s ambitions of becoming the leading producer of fossil-free plastics in Europe.”
Wood also said it has signed a sales agreement for the disposal of Kelchner Inc, a US civil construction services business, to Strength Capital Partners (SCP), a US private equity group.
The divestment is part of Wood’s previously announced non-core business disposals programme.
Kelchner Inc, which employs 140 people and provides lump sum, fixed price subcontract civil and earthwork services for commercial and public infrastructure works, was part of Wood’s Investment Services portfolio.
Net cash proceeds from the deal total $30 million to Wood.
Wood has received a “holistic non-binding” conditional takeover proposal from Dubai-based Sidara worth about £242 million or 35p per share in cash.
Last year, Wood rejected a cash takeover proposal from Sidara worth about £1.4 billion or £2.05 per share, before the Aberdeen firm became engulfed in problems.
Wood’s share price is down more than 80% for the past year amid an independent review by Deloitte following “exceptional contract write-offs” and a “difficult” trading update for the year ended December 31, 2024.
Last month, Wood Group said its shares will be suspended from trading if, as it expects, it does not publish its FY24 accounts by April 30, 2025.
Wood, one of Scotland’s biggest listed firms, employs more than 35,000 people in 60 countries.