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Adani Group signs MoU for joint feasibility of chemical complex

Friday, 18 Oct 2019
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Gujarat-based Adani Group has signed a memorandum of understanding (MoU) with Abu Dhabi National Oil Company (ADNOC), BASF and Borealis for a joint feasibility study to evaluate a collaboration for establishment of a chemical complex at Mundra in Kutch district of Gujarat.

The partners are aiming to finalise the joint feasibility study by the end of Q1/2020 and intend to start production in 2024. This is the next step of BASF’s and Adani’s investment plans as announced in January 2019. The project cost is estimated to be up to USD four billion.

The chemical complex is intended to be entirely supplied from renewable energy resources. The partners are evaluating co-investment in a wind and solar park, and plans are at an advanced stage of development. If realised, this will be the world’s first world scale CO2-neutral petrochemical site to be fully powered by renewable energy.

The collaboration includes evaluating a joint world-scale propane dehydrogenation plant to produce propylene based on propane feedstock to be supplied by ADNOC. Propylene will be partially used as feedstock for a polypropylene complex, owned by ADNOC and Borealis, based on proprietary state-of-the-art Borealis Borstal technology.

The polypropylene complex will be the first overseas production joint investment by ADNOC and Borealis as part of a strategic framework with their current joint venture Borouge.

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