Flanders to release 250m euros from guarantee to Ineos
The Flemish government decided on Friday to release 250 million euros from the guarantee for chemical company Ineos' Project One, the cabinet of Economy minister Jo Brouns confirmed.
The company was promised a 500 million euro guarantee from Flanders for Project One, the construction of a new ethane cracker in the port of Antwerp. 75 million euros of this guarantee has already been activated.
Flanders is now releasing 250 million euros of the total to guarantee Ineos' 400 million euro bridging loan with banks. However, Ineos' loan agreement with the banks is reportedly not yet finalised.
No solution in sight
The company needs the loan because construction of the project has stalled since the Council for Licensing Disputes annulled its environmental permit. The Council ruled that there was insufficient evidence that the nitrogen emissions would not harm the nearby Brabantse Wal nature reserve.
Construction of the project has been halted. The Flemish government is now looking for a solution, but it will not be easy as the ruling parties disagree on how to reduce nitrogen emissions in Flanders. The issue has been under discussion since 2022 and brought the government to the brink of collapse this year.
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