Petronas Chemicals Group Partners with Plastic Recycling Company

Jul 2019

Petronas Chemicals Group (PCG), the petrochemical arm of Malaysian state-owned Energy company Petronas, has signed a Memorandum of Understanding with London-based Plastic Energy Ltd to address the issue of plastic waste which cannot be recycled through conventional means in Malaysia.

Plastic Energy uses a patented Thermal Anaerobic Conversion (TAC) technology to convert end-of-life plastic waste into a new feedstock (Tacoil) to create clean recycled plastics or alternative low-carbon fuels. For every ton of plastic waste processed, 850 liters of the chemical feedstock is produced. Its process complements traditional mechanical recycling efforts and Energy recovery activities and it can deal with plastics that are mixed, contaminated, multi-layered, as well as plastics that can no longer be mechanically recycled

The strategic collaboration between PCG and the chemical recycling company will include a feasibility study to establish a facility able to convert plastic waste into Tacoil to develop virgin quality plastics derived from low quality, mixed plastic waste that would otherwise end up in incineration plants or landfills. The outcome of the feasibility study will inform whether PCG and Plastic Energy will build a commercial plant in Malaysia.

The partnership with Plastic Energy  marks PCG’s first step towards a circular economy and will enable PCG to use Tacoil for polymer production in Pengerang Integrated Complex – a petrochemical facility – as well as procure the circular polymer certification from the International Sustainability and Carbon Certification (ISCC), an internationally applicable certification system ensuring compliance with high ecological and social sustainability requirements.

In April 2019, Plastic Energy announced plans to develop five recycling plants in the province of West Java in Indonesia. In addition to their own rising plastic waste generation, the South East Asian countries are struggling to cope with a deluge of plastic waste from developed nations after China restricted plastic waste imports in 2018. 

(Sources: Petronas; The Star; Plastic Energy)

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