SABIC Signs Memorandum of Understanding with Plastic Energy for Recycled Feedstock Supply

SABIC announced that it has signed a memorandum of understanding with UK-based Plastic Energy Ltd., a pioneer in chemical plastic recycling for raw material supply to support SABIC's petrochemical operations in Europe. SABIC and Plastic Energy are aiming to build a first-of-its-kind commercial facility in the Netherlands, defining a valuable raw material known as TACOIL as a proprietary Plastic Energy product to be produced from the recycling of low-grade, mixed plastic waste for incineration purposes. The facility, expected to commence commercial production in 2021, represents a significant milestone for SABIC in achieving its commitment to a circular economy and broader sustainability objectives. Frank Kuijpers, General Manager of Corporate Sustainability at SABIC, said: "Sustainability is a core value at SABIC and the circular economy is a cornerstone of our strategy, as demonstrated by this unique agreement. "SABIC is proud to be a pioneering petrochemical company executing a project for chemical recycling of challenging plastic waste into raw material for steam crackers. This exciting project is proof of our commitment to advanced chemical recycling processes of plastics, bringing them back to their original polymer." Carlos Monreal, Founder and CEO of Plastic Energy, said: "We are very pleased to work with SABIC on this exciting project to support petrochemical operations in Europe. "We already have two industrial facilities operating 24/7 in Spain and a technology team with more than 10 years of experience developing this proprietary technology. Our advanced expertise will drive this new opportunity to turn plastic back into plastic as part of a circular economy." Plastic Energy has successfully commercialized a proprietary thermochemical conversion technology that transforms a wide range of end-of-life, soiled and contaminated plastic materials into usable raw materials, materials that are hardly recycled through conventional processes. With this technology, plastics are melted in an oxygen-free environment and then separated into synthetic oils at a point where they need to be refined and upgraded as raw material for conventional petrochemical use.