April 11, 2025 14:53

While it is true that China’s industrial development has historically paid limited attention to the environmental impact of manufacturing, recent years have seen sustainability become a central — and often mandated — aspect of industrial policy at all levels.

A clear sign of this shift comes from LyondellBasell, which announced that its Dalian site, dedicated to polypropylene-based compounding, will be powered entirely by renewable electricity in 2025. This makes it the first Asian facility in the company’s Advanced Polymer Solutions (APS) division to achieve such a milestone — and notably, without incurring extra costs. On the contrary, it represents a cost saving for the company.

The transition to green electricity, sourced from wind and photovoltaic suppliers, was made possible through China’s Green Electricity Transaction plan, leveraging both Green Electricity Certificates (GECs) and Green Electricity Consumption Certificates (GECCs). This mechanism has enabled LyondellBasell to procure clean energy at a lower cost than traditional fossil-based sources.

Currently, the incentives are valid only for this year. LyondellBasell will reassess its energy sourcing strategy beyond 2025, taking into account costs, availability, and overall business strategy, aligning with its commitment to balancing sustainability and operational efficiency.

Operational since 2015 and part of the APS segment, the Dalian facility plays a strategic role in the automotive value chain, producing high-performance polyolefin compounds used in bumpers, dashboards, structural parts and body panels. In June last year, the site was expanded with a new compounding line, effectively doubling its capacity to 40,000 tonnes per year.

APS currently operates five sites in China, manufacturing polyolefin compounds, engineering plastics and masterbatches.

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