Hyundai Engineering Wins Basic Design Contract for US Waste Plastic Recycling Plant

Production of 150,000 Tons of Petrochemical Products Including Benzene from 450,000 Tons of Annual Waste Plastic
Basic Design Followed by EPC Contract Expected through Linked EPC Construction Agreement
Discovering Companies with Core Renewable Energy and Eco-Friendly Technologies to Create Synergy

Ko Yuseok, Executive Director of Hyundai Engineering, David Stewart Roesser, CEO of Encina, Hong Hyunseong, Vice President of Hyundai Engineering, Brian Richard Smith, Head of Sales Office in Houston at Hyundai Engineering, Jang Dongwoo, CEO of IMM Investment, and Lee Youngjun, Global CEO of IMM Investment (from left), are taking a commemorative photo after signing the FEED contract for the 'Waste Plastic Utilization Petrochemical Product Production Facility'.

[Asia Economy Reporter Kangwook Cho] Hyundai Engineering announced on the 6th that it has signed a Front-End Engineering Design (FEED) service contract for a 'Waste Plastic Utilization Petrochemical Product Production Facility' commissioned by the U.S. company Encina Development Group.

This is an eco-friendly project to build a facility in Northumberland County, Pennsylvania, USA, that converts 450,000 tons of waste plastic annually through chemical recycling processes into approximately 150,000 tons of benzene, toluene, and other petrochemical products used in the production of pharmaceuticals, synthetic resins, and packaging materials.

In particular, this FEED service contract will be executed using the Open Book Cost Estimation (OBCE) method. The OBCE method involves performing the basic design while transparently sharing detailed estimates of the EPC construction costs with the client, enabling stable profit generation.

Additionally, this FEED service contract is linked to the EPC construction contract, and Hyundai Engineering is expected to undertake the main construction work to be commissioned later.

Encina, the client, is a company possessing core technologies for waste plastic recycling and plans to pursue subsequent chemical plant construction projects related to waste plastic processing in the U.S., South America, and Southeast Asia. Hyundai Engineering plans to fully commit to this project to lay the foundation for additional orders.

David Roesser, CEO of Encina, said, “We judged Hyundai Engineering, which has world-class plant design and construction capabilities, to be the most suitable to perform the FEED service for this project,” adding, “Through close collaboration with Hyundai Engineering, which has extensive project know-how, we will supply customers with higher-quality recycled petrochemical products.”

Previously, in May last year, Hyundai Engineering won the FEED service contract for the 'UrbanX Recycled Diesel Refinery' commissioned by UrbanX, a U.S. eco-friendly renewable fuel startup. This project involves constructing a refinery that produces eco-friendly recycled diesel using waste cooking oil and waste animal fats as raw materials, with an EPC order worth approximately 300 billion KRW expected this year.

In the era of carbon neutrality, Hyundai Engineering is discovering companies with core technologies related to renewable energy and eco-friendly solutions and plans to accelerate the realization and practical advancement of various projects such as eco-friendly recycled diesel and waste plastic utilization petrochemical products based on the synergy between their technologies and Hyundai Engineering’s plant technology and project execution capabilities.

A Hyundai Engineering official stated, “Since this project opens the possibility of confirmed EPC-linked orders and additional project orders, we plan to devote company-wide capabilities to thorough business risk analysis and project execution planning,” adding, “To realize carbon neutrality, which is attracting global attention, we will pursue related businesses and secure core technologies in renewable energy, hydrogen, and eco-friendly sectors.”

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