SKC Launches Full-Scale Eco-Friendly Recycling Business for Waste Plastic Pyrolysis Oil

[Asia Economy Reporter Hwang Yoon-joo] SKC is set to actively promote an eco-friendly business for pyrolysis oil from waste plastics by collaborating with a Japanese venture company possessing unique technological capabilities. Initially, pyrolysis oil such as middle distillates will be extracted from waste plastics for use in boilers, but the long-term goal is to produce plastic raw materials through refining. SKC signed an MOU with Ulsan City in December last year to explore entry into the waste plastic resource recycling business.

On the 8th, SKC held a video meeting with Japan's Kankyo Energy and signed a memorandum of understanding to cooperate on the development of commercial pyrolysis technology for waste plastics, securing joint ownership of the technology and exclusive implementation rights. SKC plans to install a pilot facility this year by combining Kankyo Energy's technology, which is more advanced than existing technologies, with the chemical business know-how of its investor SK PIC Global, and aims to secure commercial technology by the first half of next year.

SKC and SK PIC Global will build a pilot facility at SK PIC Global's Ulsan plant together with Kankyo Energy. By 2022, they aim to secure commercial technology optimized for domestic waste vinyl and establish commercial facilities at the Ulsan plant targeting commercial operation in 2023. Subsequently, the new plant plans to process over 50,000 tons of waste plastics such as vinyl to produce more than 35,000 tons of pyrolysis oil. In particular, after commercial operation, they are also considering expanding the business globally in cooperation with their joint venture partner, Kuwait PIC.

Currently, the global annual plastic consumption is 350 million tons, but the recycling rate is only about 15%. Currently, recycling is centered on single materials, making it difficult to recycle plastics mixed with various materials. SKC, which commercialized the world's first eco-friendly biodegradable PLA film, has been seeking solutions since China banned waste imports in 2018.

Using pyrolysis technology allows recycling of various types of plastics without separation, as it extracts pyrolysis oil by applying heat. This significantly improves the recycling level. However, waste plastic pyrolysis technology is still in its early stages worldwide. SKC is once again challenging the first large-scale domestic commercialization, leveraging the capabilities of SK PIC Global, which successfully commercialized the world's first eco-friendly HPPO process.

An SKC official said, "SKC is fostering eco-friendly materials business as a future growth engine alongside mobility and semiconductors," adding, "We will do our best to establish a virtuous cycle system that massively recycles waste plastics that were previously difficult to process together with our partners and contribute to the environment."

This content was produced with the assistance of AI translation services.