Belgium – The bridging loan that Ineos takes out to cover the costs of the Project One construction’s suspension has a 250 million euro guarantee from the Flemish Government.
Ineos is taking out a total of 400 million euros in bank loans while it waits for the results of fresh nitrogen research that it has to conduct.
The Project One environmental permit was revoked this summer. Because they thought the impact of nitrogen on nearby nature reserves had not been adequately researched, a number of organizations had launched a lawsuit. The work was halted. However, Ineos anticipates that project expenses would rise over time. Because of this, the company was compelled to apply to the banks for a bridging loan. But the Flemish government had to provide a guarantee before they could get the 400 million euros they required.
250 million euros are guaranteed by the government. If Ineos is unable to settle this debt on its own, the Flemish Government will be required to do so. The assurance, in the opinion of the Flemish Government, is not new assistance. Previously, Ineos requested an 800 million euro loan, for which the government provided a 500 million euro guarantee. This includes the 250 million that it currently guaranteed.
Decree on nitrogen
As of right present, we are currently awaiting a new permit. To do this, Ineos needs to conduct fresh, in-depth studies on how nitrogen emissions affect surrounding nature reserves. The Flemish Government has differing opinions on whether this is adequate. The N-VA party feels that the permit should be supported by the introduction of a nitrogen ordinance. However, the parties are unable to agree on the precise contents.
In the interim, a petition against the assurance from the Flemish Government has been started by the groups Greenpeace Belgium, Climaxi, and Ineos will Fall.