13 Mar 2007

INEOS ENTERPRISES ANNOUNCES TECHNICAL PARTNER FOR ITS EUROPEAN BIODIESEL GROWTH STRATEGY

INEOS Enterprises has announced the appointment of its key technical partner for the delivery of its European biodiesel growth strategy.

DeSmet Ballestra Oleo has been awarded the biodiesel technology contract and has begun its partnership with INEOS Enterprises by undertaking the Front End Engineering Design (FEED) for the new biodiesel plant at Grangemouth in Scotland, which will be at least 500 ktes capacity.

DeSmet Ballestra Oleo is a world-class engineer of plants to process oils and fats, and is one of the leading suppliers of vegetable oil refining and biodiesel technologies.

Harry Deans, CEO INEOS Enterprises comments: "We are pleased to welcome DeSmet Ballestra Oleo as a key partner to help us deliver our significant growth ambitions in biodiesel. Our aim is to achieve at least 2 million tonnes of biodiesel output by 2012, with some 1.2 million tonnes by 2010."

INEOS Enterprises' new biodiesel production facility at Grangemouth was announced in May 2006 and represents over €90 million investment in the region. Subject to planning consent and other permissions, it is expected that the facility will be operational by mid 2008.

INEOS Enterprises has more than 10 years experience in the biodiesel sector. The Company has already successfully secured French government support for its existing biodiesel plant at Baleycourt (France), which is currently undergoing a €70 million expansion to double output by 2008. In December 2006, INEOS Enterprises announced details of its proposals for a major investment in a new biodiesel facility at the INEOS site at Zwijndrecht in the Port of Antwerp.

Giuseppe di Carpegna, CEO of DeSmet Ballestra Oleo, comments: "We are delighted to have been chosen to work with INEOS Enterprises to deliver its biodiesel investments. We have more than 60 years of experience in the supply of plants and equipment for oils and fats and the oleochemical industry in particular, along with significant experience in seeds extraction, vegetable oil refining and biodiesel manufacture."

Andy Currie, Director of INEOS Capital and Chairman of INEOS Enterprises comments: "As part of the world's fastest growing chemicals company, INEOS Enterprises is extremely well placed to make these investments and has an excellent track record of pursuing market opportunities and developing world class businesses.

"INEOS is well skilled in commissioning and operating low cost, high yield commodity plants and has the size and scale that is essential for success in this business. By building on the ready made synergies with our existing European refining operations, coupled with our existing client base and market contacts, we firmly believe that we have the competitive edge and can develop into Europe's premier biodiesel company."

ENDS

For further information please contact the INEOS Enterprises Press Office:

Craig Welsh
Telephone: 01928 511528
Fax: 01928 569459
Email: craig.welsh@ineoschlor.com

Notes to Editors

1. INEOS is a leading global manufacturer of refined products and basic, intermediate and speciality chemicals. The Company is made up of multiple decentralised businesses, each with a major chemicals company heritage.
2. The INEOS production network spans 68 manufacturing facilities in Europe, North America, South America, Asia and Africa. The combined INEOS Group generates more than $33bn in revenues and has more than 15,000 employees. This makes INEOS the third largest independent chemicals company in the world and the largest in the UK, as well as the country's largest private company.
3. INEOS Enterprises is a portfolio of eight leading businesses manufacturing chemical products in Northern Europe and Southeast Asia, with sales of these products to customers around the world. The Company is focused on the developing needs of customers and rapid growth through investment in new products and manufacturing facilities or by acquisition. INEOS Enterprises employs some 500 people across sites in the UK, France, Germany and Thailand and has an annual turnover in excess of €600 million.
4. The crude oil refinery at Grangemouth is operated by INEOS Refining, which is the largest independent refiner in the EU. The Grangemouth refinery supplies ultra low sulphur diesel and petrol to the fuels markets of Scotland and northern England.
5. The INEOS site at Baleycourt is operated by INEOS Enterprises and has been producing biodiesel for more than 10 years. The site is in the heart of France's second largest vegetable oil producing region, and the new investment currently underway at the site will allow around 400,000 tonnes of locally produced rapeseed to be transformed into oil and then biodiesel for supply to the French, Belgian and German fuels markets.
6. The INEOS site at Antwerp is operated by INEOS Oxide. It has a strategic location at the heart of Europe's largest and the world's second largest petrochemical centre with close proximity to raw materials via sea, road and rail and to Europe's prime customer base via pipeline, sea, inland waterway, rail and road transportation networks. Investment in biodiesel at Antwerp would provide INEOS Enterprises with an excellent supply point for Northwest Europe, and with excellent customer/supplier synergies with the adjacent refining operations.
7. Biofuels are sources of energy that are manufactured from renewable resources, for example rapeseed. Specifically, biodiesel is an alternative fuel produced from renewable sources such as vegetable oils that can be blended with diesel and used to power conventional diesel engines without modification. It can also be used as a replacement fuel for oil in industrial processes.