Environment permit for controversial ethane cracker Ineos overturned

Environment permit for controversial ethane cracker Ineos overturned
A protest against a new plant of Ineos in Antwerp, last year. Credit: Belga/ Nils Quintelier

The environmental permit for the much-discussed new ethane cracker for the port of Antwerp has been overturned, to the dismay of politicians and the joy of climate activists.

The Council for Permit Disputes on Thursday annulled the environmental permit for the construction and operation of the 'Project One' chemical plant by British chemical giant Ineos. It argued that the Flemish Government's assessment of the potential impact it could have on nearby nature was inadequate on all parts.

More than a year ago, the company received an environmental permit from the Flemish Government to build a new ethane cracker in the port of Antwerp, a billion-dollar project with which it aimed to convert ethane into ethylene, one of the basic raw materials for plastic production. It would have been the first in continental Europe in the past 25 years.

But 14 associations – including nature and environmental groups such as Greenpeace, Bond Beter Leefmilieu and BOS+ – filed an annulment appeal with the Council for Permit Disputes, pointing to the potential environmental and climate risks of the project, and calling to prevent Ineos from building an ethane cracker.

Two Dutch provinces also filed separate appeals as the site would be located near a protected nature reserve in the Netherlands. It is in the North Brabant province's case that the Council is now ruling in its favour to annul the issued permit.

Not meeting standards

The permit argues that the project's additional deposition is below 1%, the threshold for industrial projects. But this reasoning, according to the council, "does not sufficiently take into account the conservation objectives of the nature reserve."

In addition, the Council calls the appropriate assessment, say the study of the possible impact on nearby nature, "inadequate". For instance, the study added by Ineos itself, according to the Council, "does not meet the requirements set by the ECJ". "It does not sufficiently take into account the conservation objectives of the nature reserve," it said.

INEOS plant in Antwerp. Credit: Belga/ Dirk Waem

The judge ruled that the assessment did not provide enough certainty without legally enshrining the measures from the Nitrogen Agreement, which has been leading to tension within the Flemish Government, as talks for such an agreement to lower nitrogen emissions have stalled for months. This latest decision will likely further add to the tensions.

With the environmental permit annulled, Ineos Olefins Belgium is no longer authorised to carry out the works for the ethane cracker. The Flemish Government now has six months to decide on the permit application again.

Flemish Environment Minister Zuhal Demir said in response that she is having the ruling analysed, but stressed the ruling shows the urgent need for a nitrogen decree. "The years of delays in the nitrogen dossier at the request of Farmers' Union come at a high price," she said, once again calling on coalition partner CD&V to approve her draft decree "as soon as possible."

Mixed reactions

On Thursday afternoon, the Council's decision triggered reactions from people on both sides of the debate. Antwerp's port councillor Annick De Ridder argued that the annulment of the ethane cracker is "a drama," adding that it would be a "state of the art" plant that "met the most stringent conditions."

Ineos itself also argued that it would have been the "cleanest" cracker ever built in Europe and that the cracker is a three-billion-euro investment that can only benefit the Belgian economy. Business association Voka warned that the decision would be "a sledgehammer blow to the Flemish economy" and called for an extra meeting of the Flemish government to approve the nitrogen decree at first reading as soon as possible.

The region's Minister-President Jan Jambon also reacted to the annulment with disappointment, stating that it "concerns a very important investment project that is enormously important for the prosperity of Flanders." He too stated a meticulous legal analysis of the ruling would be carried out.

Meanwhile, Antwerp's Green Chair Bogdan Vanden Berghe is satisfied with the ruling. "The new ethane cracker posed a direct threat to the health of Antwerp citizens and Antwerp's nature, but the Flemish government couldn't care less," he said.

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Action group Ineos Will Fall responded stating that the quashing of the licence is "an important victory" and proves that taking action works. The group held a forest occupation, filed more than 600 letters of objection, a petition with more than 12,000 signatures and organised numerous actions at the port and to Demir's office.

"After a hard three-year battle, we are finally winning the battle against the fossil industry and the way is open for a sustainable, climate-neutral port," said Nele Coen of Ineos Will Fall.


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