INEOS secures €300 million French grant to decarbonize Lavera, cut emissions, protect jobs, boost competitiveness, and advance circular economy initiatives.
INEOS has announced a major new phase in its strategy to modernize and decarbonize its Lavera industrial site in France, backed by a €300 million grant from the French government. This funding forms a crucial part of a broader investment program aimed at reducing the site’s carbon footprint while reinforcing its long-term industrial viability. The initiative is expected to cut carbon dioxide emissions by approximately 331,000 tonnes annually—an environmental benefit comparable to removing more than 70,000 cars from the roads each year.
The financial support comes under the French government’s “Appel d’Offres Grands Projets Industriels de Décarbonation” (AO GPID) scheme, which operates within the wider France 2030 framework and is administered by ADEME. This program is specifically designed to accelerate large-scale industrial decarbonization projects that can demonstrate measurable and sustained emissions reductions over a 15-year period. By supporting such initiatives, France aims to decrease its dependence on fossil fuels while advancing its climate goals.
At a time when Europe’s chemical industry is under considerable strain due to elevated energy costs and intensifying global competition, this investment provides a much-needed boost to industrial stability. The Lavera project is expected to safeguard approximately 2,000 direct jobs at the site, while also supporting over 10,000 additional roles throughout the broader supply chain. This reinforces the site’s importance not only as an industrial hub but also as a major contributor to regional and national employment.
The Lavera complex holds a strategic position within France’s manufacturing ecosystem. Its output and infrastructure are deeply integrated into multiple critical sectors, including pharmaceuticals, healthcare, aerospace, transportation, clean energy, food packaging, and defense. Ensuring the continued operation and competitiveness of such a facility is essential for maintaining France’s industrial autonomy, economic resilience, and technological leadership—particularly as Europe faces increasing reliance on imports from global powers such as China and the United States.
The planned upgrades will transform Lavera into a more efficient and lower-emission facility, aligning it with long-term net-zero ambitions. Key improvements will include electrification and the future integration of carbon capture technologies as they become commercially viable. Additionally, the investment supports France’s circular economy goals by enabling the site’s steam cracker to process a higher proportion of sustainable feedstocks derived from recycled plastics and bio-based materials, thereby reducing dependence on fossil-based inputs.
This €300 million initiative builds upon an earlier €250 million investment announced in November 2025, bringing the total planned capital allocation for the Lavera site to more than €550 million. Together, these investments demonstrate a comprehensive approach to industrial transformation, balancing environmental responsibility with economic competitiveness.
INEOS has also emphasized the urgent need for supportive policy measures across Europe to ensure the survival and growth of its chemical sector. Without coordinated political action, the region risks losing millions of jobs, increasing emissions, and becoming overly dependent on imported chemicals and materials. Through this latest announcement, the company reaffirms its long-term commitment to France and its intention to collaborate closely with government authorities to ensure the successful implementation of the Lavera regeneration program.
