Interview: Borealis’ Craig Arnold on Driving Global Energy Transition Through Innovation

ChemAnalyst Talks with Mr. Craig Arnold, Executive Vice President Polyolefins, Base Chemicals and Circular Economy Solutions at Borealis

Borealis, a global leader in advanced and sustainable polyolefin solutions, is driving the energy transition through innovation and circularity. In Europe, the company leads in polyolefin recycling and produces key base chemicals supporting industries like energy, infrastructure, and mobility. ChemAnalyst spoke with Mr. Craig Arnold, Executive Vice President Polyolefins, Base Chemicals and Circular Economy Solutions at Borealis, about the company’s EUR 200 million “Building for the Future” initiative, which expands XLPE and semicon capacities in Europe and the Middle East to strengthen global power infrastructure. Arnold highlighted the role of Borlink™ technology in ensuring material purity for high-voltage applications and emphasized Borealis’ focus on circular and bio-based materials to support a sustainable, resilient energy system. With investments aligned to new regulations and renewable integration, Borealis is cementing its role as a key enabler of the global energy transition.

Complete Interview with Mr. Craig Arnold

Q: The Stenungsund Sweden expansion in XLPE capacity is part of Borealis and Borouge’s EUR 200 million “Building for the Future” Energy investment initiative. How does this investment align with your long-term goal of supporting the global energy transition through advanced cable materials?

Mr. Craig Arnold: We’re witnessing a fundamental transformation in how energy is produced, distributed, and consumed. The rise of renewable energy, combined with the electrification of everything—from transportation to industrial processes, is placing unprecedented demands on global power infrastructure.

Electricity consumption is surging, driven by three powerful forces: the rapid adoption of e-mobility, the exponential growth of artificial intelligence (AI), and the electrification of industry. These trends are reshaping the energy landscape and accelerating the need for smarter, more resilient systems.

One of the most significant developments in the energy transition is the integration of renewable energy sources into the power grid. On one hand, we see the rise of distributed energy systems; on the other, the rapid expansion of large-scale offshore wind farms generating substantial amounts of electricity, often consumed far from the point of generation.

Both trends demand major investments in grid infrastructure. Among the most notable advancements is the adoption of High Voltage Direct Current (HVDC) technology, which enables efficient transmission of large volumes of electricity over long distances—ideal for offshore wind farms and cross-border interconnectors. That’s where advanced cable materials play a critical role.

Cross-linked polyethylene (XLPE) and semiconductive compounds—commonly referred to as semicon—are essential for building high-voltage cable systems that connect decentralized energy sources to the grid. The global market for these materials is expanding rapidly, driven not only by performance needs but also by sustainability goals.

Q: What does your Building for the Future initiative entail?

Mr. Craig Arnold: To keep pace with accelerating demand, we’re significantly scaling up our production capabilities. By 2027, we will have doubled our capacity to supply advanced materials for high-performance cable systems—including 220 kV subsea cables and extra-high voltage AC and DC applications.

This expansion is made possible through a series of strategic investments across Europe and the Middle East, aimed at strengthening our technical capabilities and supporting long-term growth. We’ve completed a major semicon upgrade at our site in Antwerp, Belgium; we’re actively investing in XLPE capacity in Stenungsund, Sweden; and in partnership with Borouge, we’re on track to expand XLPE production in the UAE by the end of 2025. These initiatives are designed to support the energy transition—not just today, but well into the future.

Q: Are your investments solely focused on increasing production volumes?

Mr. Craig Arnold: Not at all. While expanding capacity is a key objective, these investments go far beyond volume. They’re about enhancing our technical capabilities, improving product performance, and strengthening our global support infrastructure. This robust foundation ensures that our proprietary Borlink™ technology continues to meet the evolving needs of the energy sector—enabling more complex grid interconnections and accelerating the global shift toward renewable energy.

Q: In HV/EHV cable applications, even minor contamination can compromise performance. What quality-control mechanisms are being implemented?

Mr. Craig Arnold: We focus on our ability to produce HV/EHV materials that meet the highest cleanliness standards, and that are suitable for the most sensitive and most demanding applications, such as 220kV subsea and HVDC transmission networks.

To prevent contamination from entering our production system, we employ closed-loop processes for both XLPE and semiconductive materials used in high-end applications. Furthermore, we have  developed proprietary quality assurance techniques—part of our Borlink technology—to rigorously assess the cleanliness of compounded materials.

Q: How do the XLPE investments complement your semicon upgrade in Antwerp?

Mr. Craig Arnold: XLPE is primarily used as the main insulation layer in power cables. It provides excellent electrical insulation, mechanical strength, and resistance to heat and chemicals. Its role is to prevent current leakage and withstand high voltages, making it essential for medium- and high-voltage cable systems.

Semicon is used in the layers surrounding the XLPE insulation. These materials have controlled conductivity and are designed to manage the electric field within the cable. By reducing electrical stress and preventing partial discharges, semicon supports the safe and efficient operation of the system.

In short, XLPE insulates, while semicon controls and stabilizes the electrical environment surrounding that insulation. Both are complementary and essential, together they enable the performance and reliability of modern power cables.

Q: As Borealis advances both recyclate-based and high-performance materials, how do you envision the interplay between circular polyolefins and advanced XLPE technologies in enabling a sustainable and resilient energy infrastructure?

Mr. Craig Arnold: We’re committed to supporting our customers in the energy sector with a wide range of circular solutions that uphold the highest standards of quality and performance. These include everything from mechanically recycled compounds used in cable sheathing to insulation materials derived from bio-based feedstocks—offering sustainability without compromising reliability.

Looking ahead to the end of this decade, we anticipate a significant rise in demand for these circular alternatives. That’s why we’re continuously refining and expanding our portfolio to stay ahead of evolving market needs. A key factor driving this shift will be the development of regulatory frameworks that prioritize both CO2 emissions reduction and enhanced circularity across the industry.

Q: Can you tell more about those regulations?

Mr. Craig Arnold: We’re definitely seeing a wave of new rules coming in across different regions. There’s a growing push for more sustainable and circular solutions, and while the regulatory landscape varies from place to place, some clear patterns are emerging.

For instance, a lot of countries are tightening restrictions on hazardous materials in cables—things like halogens and heavy metals. That’s driving a shift toward safer, recyclable materials that are halogen-free and low smoke.

We’re also seeing major moves in the EU and US to phase out PFAS—those long-lasting chemicals that have been used in insulation because of their durability and heat resistance. But with growing concerns about their environmental impact and health risks, there’s now a strong push for PFAS-free alternatives, and that’s sparking a lot of innovation.

Another big development is the rise of extended producer responsibility (EPR) schemes. These are encouraging manufacturers to think about the full lifecycle of their products—from design all the way to end-of-life recovery and reuse. It’s a real shift in mindset.

And then there are new standards coming into play around fire resistance and product longevity. These might not seem directly linked to sustainability, but they actually help by reducing how often products need to be replaced and improving overall safety.

While global regulation is not yet fully harmonized, momentum is building. We believe that the convergence of circular polyolefins and advanced XLPE technologies will be instrumental in shaping a more sustainable and resilient energy infrastructure—one that meets both performance and environmental expectations.

ChemAnalyst Insights on Polyethylene Terephthalate (PET)

In Germany, the Polyethylene Terephthalate (PET) market experienced a mild downturn during the quarter, reflecting softer demand conditions. Ample supply and weak trading activity led to a subdued market sentiment, with limited restocking from converters. Production costs eased slightly as monoethylene glycol (MEG) weakness offset stable purified terephthalic acid (PTA) trends, compressing producer margins. Demand remained restrained, as buyers focused on short-term procurement rather than strategic inventory buildup. Competitive offers from Asia and existing inventory overhang continued to pressure local sellers, prompting price adjustments to maintain market share. Meanwhile, intermittent plant turnarounds and port congestion created localized supply constraints, while logistical variability further disrupted delivery schedules and planning across the region. Overall, the near-term outlook for PET in Europe remains cautious, with limited upside potential unless a stronger rebound in downstream consumption or converter restocking emerges.