SABIC and Plastic Energy Partnership

As another significant contribution to developing a circular economy for plastics, SABIC and Plastic Energy will begin construction of the first commercial unit producing flagship certified circular polymers, part of the TRUCIRCLE™ portfolio, derived from advanced recycling of mixed and used plastics. SABIC, one of the world's leading firms in diversified chemicals, and Plastic Energy, a pioneer in chemical plastic recycling, will begin the construction phase of this unit, which will be established in Geleen, Netherlands and is expected to be operational in the second half of 2022. Conducted with an Advanced Sector Energy subsidy from the Dutch Ministry of Economy, the project will be carried out under a 50-50 joint venture called SPEAR (SABIC Plastic Energy Advanced Recycling BV). As part of the project's market establishment phase, SABIC has been working with Plastic Energy and leading customers and converters since the beginning of 2019 to produce and commercialize certified circular polymers.  

The new unit will enable SABIC's customers to significantly scale up the production of certified circular polymers to gain greater access to sustainable materials that are recycled, reused and produced in a way that helps protect our planet's natural resources, while also serving as a ready-made solution.

  Fahad Al Swailem, Vice President PE and Sales at SABIC, said, "Progress on this pioneering project brings us one step closer to driving the change needed to become a circular global industry. We have overcome significant external, global challenges to reach this important milestone and are committed to closing the loop on used plastics. To achieve this, we continue to collaborate with our upstream and downstream partners at an unprecedented level."  

Carlos Monreal, Founder and CEO of Plastic Energy, said, "It has been an exciting journey to bring our vision of building advanced recycling facilities to life, and we are pleased to announce with SABIC the construction of this new facility. We have worked with SABIC in line with our shared goal of making plastics more sustainable and advancing towards a more circular economy for plastics."

SABIC's certified circular polymers are produced from TACOIL, created using Plastic Energy's advanced recycling technology to transform low-quality, mixed and used plastics that would otherwise be destined for incineration or landfill. The TACOIL produced at the new commercial unit will be used by SABIC in its production processes as an alternative to conventional fossil materials to create new circular polymers. Circular polymers form part of SABIC's TRUCIRCLE portfolio and services for circular innovation. Launched to market in 2019, the TRUCIRCLE portfolio is an important milestone in the journey to close the loop and create a circular economy for plastics and aims to provide producers access to more sustainable materials. The TRUCIRCLE portfolio includes recyclability by design, mechanically recycled products, certified circular products from feedstock recycling of used plastics, and certified renewable products from bio-based feedstock.