INEOS has secured a €300 million grant from the French government to advance decarbonization and efficiency upgrades at its petrochemical site in Lavera, located on France’s Mediterranean coast.

The funding forms part of a broader regeneration programme aimed at repositioning Lavera, one of France’s largest petrochemical and refining hubs, as a lower-carbon and more competitive industrial facility. The award follows an earlier grant of approximately $294.5 million announced in November 2025, marking the next stage in the site’s transformation plan.

Targeting 331,000 Tonnes of Annual Emissions Reductions

INEOS said the regeneration initiative is expected to cut carbon dioxide emissions at Lavera by 331,000 tonnes per year. The project focuses on installing energy-efficient technologies and modernising infrastructure to reduce operational emissions while improving long-term industrial resilience.

The upgrade will also allow the site’s industrial cracker to process more sustainable feedstocks, including recycled plastics and bio-sourced materials. By substituting fossil-based inputs with circular and renewable alternatives, the plant aims to lower its carbon intensity while maintaining production capacity.

The company positioned the investment as a step toward securing thousands of skilled jobs and strengthening the competitiveness of the French chemical sector.

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Government Support Through Industrial Decarbonization Programme

The grant is being delivered under France’s “Appel d’Offres Grands Projets Industriels de Décarbonation” programme. The scheme provides financial support for large-scale industrial projects that demonstrate measurable and verifiable emissions reductions over a 15-year period.

The programme is part of France’s broader strategy to reduce dependence on fossil-based energy, modernise heavy industry and align domestic manufacturing with national climate targets.

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Industrial Policy Meets Climate Strategy

For policymakers, the Lavera investment highlights the role of public funding in accelerating decarbonisation within energy-intensive sectors such as petrochemicals. Heavy industry remains one of the more difficult segments of the economy to decarbonise due to process emissions and high energy requirements.

By combining efficiency upgrades with feedstock substitution, the project reflects a dual-track approach: reducing operational emissions while integrating circular materials into chemical production.

For INEOS, the funding supports long-term asset competitiveness in an environment of rising carbon regulation and energy transition pressures. For France, it signals continued state backing for industrial transformation aligned with climate objectives while safeguarding domestic employment and manufacturing capacity.

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