SK Geocentric Signs HOA with UK Plastic Energy to Build Asia's Largest Waste Plastic Pyrolysis Plant

Construction of a 66,000-ton per year pyrolysis oil plant by 2025

Ulsan Recycle Cluster Site and Detailed Plan. Photo by SK Geocentric

[Asia Economy Reporter Jeong Dong-hoon] SK Geocentric is partnering with the UK-based plastic pyrolysis specialist company 'Plastic Energy' to establish the largest pyrolysis plant in Asia.

On the 16th, SK Geocentric announced that it signed a Heads of Agreement (HOA) with Plastic Energy at the Walkerhill Hotel in Gwangjin-gu, Seoul, to establish a pyrolysis plant within the Ulsan Recycle Cluster (a comprehensive plastic recycling complex). The signing ceremony was attended by key executives from both companies, including Na Kyung-soo, President of SK Geocentric, and Carlos Monreal, President of Plastic Energy.

The two companies agreed on ▲introducing Plastic Energy's technology to build the Ulsan pyrolysis plant ▲joint pyrolysis projects in the metropolitan area ▲expanding pyrolysis business across Asia. SK Geocentric plans to utilize approximately 13,000㎡ (4,000 pyeong) within the Ulsan Recycle Cluster site to build Asia's largest pyrolysis plant with an annual capacity of 66,000 tons by the second half of 2025.

Additionally, SK Geocentric will establish an annual 100,000-ton scale pyrolysis oil post-processing plant on the Ulsan site using its proprietary technology. The pyrolysis oil produced from the waste plastic pyrolysis plant will be fed into the post-processing stage to improve its quality significantly. After this process, the pyrolysis oil can be used in various petrochemical product manufacturing processes.

Plastic Energy, founded in 2012 in the UK, currently operates two pyrolysis plants stably for several years in locations including Seville, Spain. The company holds various patents related to pyrolysis technology in the US and Europe and is currently working with global major petrochemical companies to expand by adding five more plants.

Pyrolysis oil is crude oil produced by heating waste plastics and discarded vinyl at high temperatures. It is a core element in building a circular economy by replacing crude oil in petrochemical processes to produce new chemical products. This technology is also called 'urban oil field' technology, as it extracts crude oil from discarded waste.

Due to strengthened regulations in advanced countries, such as mandatory recycled plastic policies, demand for recycled plastics is expected to surge. According to the petrochemical industry, the chemical recycling market for pyrolysis oil is projected to grow from 700,000 tons in 2020 to 3.3 million tons by 2030, with an average annual growth rate exceeding 17%.

Meanwhile, SK Geocentric announced that on the 16th and 17th, Na Kyung-soo, President of SK Geocentric, and Carlos Monreal, President of Plastic Energy, attended the '2022 Korea Eco-friendly Packaging Forum' held at the Walkerhill Hotel in Seoul to discuss future development directions.

The Eco-friendly Packaging Forum is an event attended by numerous experts from corporations, academia, associations, and institutions in fields such as circular economy and carbon neutrality strategies for sustainable growth. This is the fourth consecutive year of the forum, which was held this year under the theme 'Carbon Neutrality and Resource Circulation Activities.'

SK Geocentric hosted the Future Innovation Technology session for the circular economy and held related discussions with global partners collaborating on the Ulsan Recycle Cluster. Representatives from Canadian company Loop Industries and US-based Purecycle Technologies participated via video conference to introduce advanced plastic recycling technologies, while Plastic Energy from the UK explained its advanced pyrolysis technology.

Na Kyung-soo, President of SK Geocentric, emphasized, "Through cooperation with Plastic Energy, which possesses excellent technology in the pyrolysis field, we can accelerate the establishment of the Ulsan Recycle Cluster. We will lead the circular economy by closely collaborating with various partners to recycle waste plastics that would otherwise be incinerated or landfilled."

Carlos Monreal, CEO of Plastic Energy, stated, "Korea is an important market for chemical recycling of end-of-life plastics. SK Geocentric has a unique vision of deploying various technologies in one place for recycling diverse types of plastics, and Plastic Energy is pleased to play a key role in realizing this vision."

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