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Home > News > Corporate News

PCG to construct Asia’s largest advanced chemical recycling plant

Source：Adsale Plastics Network Date ：2023-10-25 Editor ：RC

PETRONAS Chemicals Group Berhad (PCG) has reached the final investment decision (FID) to construct Asia’s largest advanced chemical recycling plant, in Pengerang, Johor, Malaysia.

petronas_signing ceremony_480.jpg

Mohd Yusri Mohamed Yusof, PCG MD/CEO (4th from left) and management team from PCG, Plastic Energy, PETRONAS Downstream and Mutiara Etnik, at the signing ceremony.

The plant will unlock plastics waste chemical recycling capabilities in Malaysia through the conversion of end-of-life plastics into pyrolysis oil or TACOIL, which can be used as chemical feedstock towards of sustainable plastics.

With a capacity of 33 kilotons per annum, the plant is targeted to start operation by the first half of 2026.

“This enables us to propel the nation’s aspiration in phasing out single-use plastics, in line with Malaysia’s Plastic Sustainability Roadmap 2021-2030, while fulfilling the growing demand from major brands for sustainable packaging,” explained Mohd Yusri Mohamed Yusof, PCG Managing Director and Chief Executive Officer.

In addition, PCG’s announcement also saw the signing of the Technology License Agreement (TLA) between PCG’s subsidiary and Plastic Energy and the awarding of the Engineering, Procurement and Construction (EPC) to Mutiara Etnik. Plastic Energy will provide the chemical recycling technology for the plant through its patented TAC process.

The process includes heating mixed post-consumer plastic (PCR) waste in the absence of oxygen. Hydrocarbon vapors are then produced, that are condensed into pyrolysis oil or TACOIL, which can be used as a substitute for hydrocarbon feedstock in the production of food-grade recycled plastics.