Evonik and QFZ power up to boost smart energy solutions in Qatar

21 May 2024 --- Germany-based Evonik and Qatar Free Zones Authority (QFZ) sign a Memorandum of Understanding (MoU) to explore investment opportunities focusing on sustainable solutions for energy transition.

Signed during the Qatar Economic Forum, the chemicals company seeks to support green transformation, especially noting its Smart Materials portfolio. The division “includes businesses with innovative materials that enable resource-saving solutions and replace conventional materials.”

According to Evonik, the Smart Materials division generated approximately €4.46 billion (US$4.8 billion) in sales during the fiscal year 2023.

The Smart Materials technology platforms are touted to bring “resource efficiency and sustainability” to inorganic materials such as “silica, silanes, peroxides and specialty catalysts, and high-tech polymers such as polyamide 12, polyimide, special polybutadienes and polyesters and compounds, composites and membranes based on them.”

Evonik sees potential future investments in the Umm Alhoul free zone, Qatar. At the signing ceremony in Raffles Doha, QFZ CEO Sheikh Mohammed Bin Hamad Bin Faisal Al-Thani and Evonik EMEA president Joerg Syrzisko formalized the agreement.

Boosting Qatar’s specialty chemicals
Sheikh Mohammed Bin Hamad Bin Faisal Al-Thani expressed enthusiasm for the partnership, highlighting that it aims to establish a manufacturing facility in Qatar’s free zones.

Evonik’s smart materials division aims to support Qatar’s industrial capabilities with innovative products.“The facility is planned to serve the oil and gas and industrial processes sectors in the Gulf Cooperation Council and the Middle East, a market traditionally supplied by the US and Europe. This collaboration aims to significantly contribute to the continued development of Qatar’s industrial capabilities by integrating cutting-edge sustainable technologies into our operations,” he adds.

“The presence of Evonik in Qatar’s free zones will also encourage broader collaboration between Evonik and QFZ on innovative and sustainable solutions in the specialty chemicals sector, driving forward our agenda for economic diversification and long-term resilience in line with the goals of Qatar’s third National Development Strategy 2024 – 2030. 

He believes the partnership will set a new standard for “industrial excellence, sustainability and collaboration in the region, ensuring that QFZ remains at the forefront of industrial innovation and development.”

Sustainable solutions investment
Evonik says its Smart Materials division, which has over 8,100 employees, is “vital” to its Next Generation Solutions portfolio. The company plans to invest over €3 billion (US$3.3 billion) by 2030 in products with sustainability benefits. These products are known for their low energy consumption and extended lifespan. 

The free zones’ location near the Middle East market, Hamad Port and integrated facilities are expected to support Evonik’s regional production and distribution.

Syrzisko emphasized the significance of the MoU for Evonik: “The burgeoning markets represented in the Gulf Cooperation Council offer exciting opportunities for Evonik to expand our regional footprint and convince new customers of our sustainable Next Generation Solutions portfolio.”

“We look forward to partnering with Qatar Free Zones Authority and working together to establish potential investments in the free zones in the State of Qatar. With the right partners on our side, we feel very welcome to identify the best opportunities and needs in the region to situate our advanced manufacturing technologies here. This initiative will stimulate further economic growth and broaden our market outreach in the Middle East.”

With Evonik’s involvement, QFZ aims to enhance its industrial capabilities and promote sustainable solutions that align with Qatar’s economic goals.

In related developments, Evonik’s Q1 beat analyst estimates with robust performance amid job cuts. 

By Venya Patel