chemXplore Weekly 25 February 2026 - Equinor H2M project cancellation | INEOS Lavera €300M Grant

25 February 2026

This issue of chemXplore Weekly examines recent project decisions that highlight challenges and selective support in Europe's energy transition and chemical industry investments. Equinor has cancelled its H2M Eemshaven project, a planned 1GW blue hydrogen facility in the Netherlands with CCS, citing policy uncertainty, lack of funding, and insufficient local offtake or infrastructure links. In contrast, INEOS secured a €300 million French government grant to advance decarbonization at its Lavera site, targeting a reduction of 331,000 tonnes of CO₂ emissions per year through efficiency upgrades and feedstock changes. Separately, Mitsubishi Gas Chemical (MGC) decided on February 20, 2026, to fully discontinue construction of its meta-xylenediamine (MXDA) production facility in the Netherlands due to delays, sharp cost increases, market competition, and insufficient expected profitability, with shutdown procedures planned through 2029. These cases illustrate how diverging energy costs, infrastructure gaps, offtake risks, and economic pressures are influencing location-specific strategies and project viability in the region.

Industry Trends

Sustainable Feedstocks & Circularity

Certification-led circularity advanced on multiple fronts as the EU cleared Clariant’s renewable rice bran wax additives for food-contact plastics, offering a lower‑carbon substitute amid montan wax constraints. Materials producers scaled traceable supply chains, with ISCC PLUS certification for TORAYCON PBT and SIVERAS LCP and Trinseo’s PMMA depolymerization plant in Rho earning ISO 9001. Brand packaging trials moved from pilots to products via the PureCycle and TOPPAN partnership, demonstrating >30% recycled PP content in flexible films. Expect faster adoption of mass‑balance and advanced recycling as converters prioritize verified inputs and food‑contact compliance.

Decarbonization & Low-Carbon Technologies

Industry decarbonization progressed through targeted infrastructure and capture projects: Samsung C&T and Axens teamed on DMX post‑combustion CCUS, while INEOS’s €300 million program to decarbonise Lavera secured public backing. Cement moved toward near‑zero with Heidelberg Materials’ evoZero and the Padeswood CCS build. Hydrogen backbone build‑out gained definition through Worley’s EPCM contract for the Danish Hydrogen Backbone. As project pipelines grow, integration with local demand and CO₂ transport/storage networks will be decisive for cost and timelines.

Energy Transition Investments

Capital is flowing to grid‑scale assets and gas logistics: Vopak advanced growth projects and LNG capacity at Gate, pairing strong cash generation with a multi‑year shareholder program. Offshore wind momentum continued with RWE’s V236 turbine order for Vanguard West and Poland’s Baltic Power completing all monopile foundations. Storage is scaling as Statkraft and OX2 agreed a long‑tenor PPA for two large BESS assets in Finland. Expect more hybrid portfolios—LNG, wind, and batteries—to anchor regional flexibility and bankability.

Regulatory Reforms & Compliance Challenges

Data and certification are becoming core to market access and incentives: BASF’s Circalo platform targets farm‑to‑biorefinery carbon‑intensity traceability under U.S. Section 45Z, while the EU Commission approval for Clariant’s rice bran wax additives widens renewable options for PET, PLA, and rigid PVC food contact. Producers are recalibrating targets to policy realities, as shown by LyondellBasell’s updated 2030 sustainability goals. Expect compliance‑ready digital MRV systems and harmonized certifications to shape sourcing and pricing power.

Innovation to Commercialization in Bio & Specialties

Commercial pathways sharpened across SAF and high‑performance materials: Siemens and CAPHENIA moved to scale plasma‑enabled syngas for SAF, while Velocys cut microFTL capital costs by >30% on UK and Uruguay projects. In engineered polymers, Toray’s Toraypearl PA12 spherical powder targets denser, stronger PBF prints, and advanced ceramics gain circular inputs via UBE’s investment in CheomdanLab’s SRBSN recycling. Watch for modularization and supplier partnerships to compress time‑to‑FIDs.

Geopolitics & Regional Competitiveness

Diverging energy costs and infrastructure access are reshaping footprints: Solvay’s soda ash capacity reduction at Torrelavega underscores European exposure to high energy and carbon prices, while Equinor’s canceled H2M Eemshaven hydrogen project highlights the risk of weak local offtake and pipeline links. National champions are doubling down, with the ORLEN Group’s record investments focused on energy security. Conversely, capital discipline led to MGC’s decision to halt its Dutch MXDA facility. Expect more location‑specific strategies and subsidy‑tied upgrades to determine Europe’s industrial mix.

Industry Trends

Sustainable Feedstocks & Circularity

Decarbonization & Low-Carbon Technologies

Energy Transition Investments

Regulatory Reforms & Compliance Challenges

Innovation to Commercialization in Bio & Specialties

Geopolitics & Regional Competitiveness

In Brief

New Projects and Expansions

Project Updates and Milestones

Mergers, Acquisitions, and Partnerships

Innovation and Product Development

Operational Changes and Investments

Sustainability and Environmental Initiatives

Financial Performance and Strategy

Executive Appointments and Governance Changes

Regulatory and Compliance Updates

Workforce and Corporate Social Responsibility (CSR)