KUALA LUMPUR: Petronas Chemicals Group (PCG) yesterday signed a memorandum of understanding (MoU) with Plastic Energy Ltd, a chemical recycling company, to collaborate in addressing plastic waste that cannot be recycled by conventional means in Malaysia.
The strategic collaboration marks the first step towards a circular economy which maximises the plastics value chain.
PCG and Plastic Energy will jointly perform a feasibility study to establish a facility to convert plastic waste into an optimal feedstock (Tacoil) to create recycled virgin-quality plastics from low quality, mixed plastic waste otherwise destined for incineration or landfill.
“Depending on the outcome of the study, PCG and Plastic Energy may consider building a commercial plant in Malaysia,” said PCG in a statement.
The collaboration will enable PCG to utilise Tacoil, produced by Plastic Energy for polymer production at its petrochemical complex, the Pengerang Integrated Complex, and obtain circular polymer certification from International Sustainability and Carbon Certification (ISCC).
Plastic Energy has successfully commercialised a patented thermochemical conversion technology to convert end-of-life, contaminated plastics and plastics that are hardly recyclable for conventional processes into usable feedstock. Currently, Plastic Energy has established two commercial plants in Seville and Almeria, Spain.
Once materialised, PCG will be the first petrochemical company in Southeast Asia to invest in a chemical recycling project which converts mixed plastics waste into virgin quality polymer.
PCG managing director/chief executive officer (CEO) Datuk Sazali Hamzah said the partnership with Plastic Energy is in line with the company’s plan towards becoming a progressive energy and solutions partner that enriches lives for a sustainable future.
Founder and CEO of Plastic Energy, Carlos Monreal said : “Malaysia has shown that it is serious about tackling the challenge of plastics waste.
“We are excited to be part of the solution, and to collaborate with PCG in changing the paradigm and turning plastics waste into a valuable resource, thereby contributing to the creation of a circular economy.” — Bernama