SK Geocentric Signs Pyrolysis Technology Agreement with Plastic Energy

License Agreement with Plastic Energy on the 6th
Introduction of Pyrolysis Technology
Ulsan Plastic Waste Recycling Complex 'Ulsan ARC'

Key executives from SK Geocentric and UK-based Plastic Energy are taking a commemorative photo at the SK Group booth exhibited at CES 2023 in the United States.
From the left in the photo, Ying Staton, Head of Corporate Development at Plastic Energy; Bruno Guillon, Chief Commercial Officer at Plastic Energy; Na Kyung-soo, President of SK Geocentric; and Lee Jong-hyuk, Head of Green Business Development at SK Geocentric are posing for the photo. Photo by SK Innovation

[Asia Economy Reporter Donghoon Jeong] SK Geocentric, a subsidiary of SK Innovation, has signed a contract with a UK-based plastic pyrolysis specialist company to apply the technology to the world's first comprehensive waste plastic recycling complex scheduled for completion in 2025.

On the 6th (local time), SK Geocentric announced on the 9th that it signed a technology introduction contract with UK’s Plastic Energy at CES 2023 in Las Vegas, USA, to establish a pyrolysis plant within the Ulsan waste plastic recycling complex. The signing ceremony was attended by Na Kyung-soo, President of SK Geocentric, and Bruno Guillon, Chief Commercial Officer of Plastic Energy, among others.

SK Geocentric will break ground on the pyrolysis plant construction starting this year. By introducing Plastic Energy’s advanced pyrolysis technology in Ulsan, it plans to build the largest plant in Asia with an annual capacity of 66,000 tons (based on waste plastic processing) by 2025. SK Geocentric also plans to simultaneously establish a post-processing plant for pyrolysis oil using its own technology to improve the quality of pyrolysis oil to a higher standard.

On the same day, the two companies also signed an MOU for a ‘Strategic Partnership to Expand the Pyrolysis Oil Business.’ They plan to establish a joint venture within the year and continue cooperation to build new plants in the metropolitan area following Ulsan, as well as in Asian regions such as China and Japan, proactively responding to the increasing global demand. The recycled plastics produced through Plastic Energy’s pyrolysis technology have been recognized for their high quality and eco-friendliness, being used in products such as ice cream and cosmetic containers.

Furthermore, SK Geocentric announced that the official name of the waste plastic recycling complex has been finalized as ‘Ulsan ARC (Advanced Recycling Cluster).’ Through strategic collaborations with global companies such as PCT in the USA, Loop in Canada, and Plastic Energy in the UK, SK Geocentric has gathered three advanced chemical recycling technologies in one place. This is expected to enable efficient plastic recycling.

SK Geocentric is collaborating with Pure Cycle Technologies (PCT) in the USA on high-purity recycled polypropylene (PP) extraction technology that removes contaminants from waste plastics. Following a 68 billion KRW equity investment, they have signed a joint venture agreement. They have also secured exclusive sales rights in Korea and business rights in China and Southeast Asia.

With Loop Industries in Canada, SK Geocentric has formed a partnership on depolymerization technology that breaks down plastic (PET) molecular clusters used in colored PET bottles and polyester fibers back into raw materials. SK Geocentric has invested 10% equity and holds exclusive business rights in the Asian region.

Na Kyung-soo, President of SK Geocentric, said, “It is highly meaningful to have secured core waste plastic recycling technologies that contribute to eco-friendliness and carbon reduction at CES, a stage for cutting-edge technologies. We will continue strategic partnerships with global companies possessing core competencies and do our best to ensure the smooth establishment of Ulsan ARC.”

Bruno Guillon, Chief Commercial Officer of Plastic Energy, said, “We have signed a partnership with SK Geocentric to strengthen recycling business cooperation from Korea to the Asian region, taking a key role in Ulsan ARC. We are pleased to work with SK Geocentric, which has a unique vision for plastic recycling and is building a more eco-friendly and sustainable business model.”

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