Jinyoung: "Korea Eco Energy Starts High-Profit Pyrolysis Oil Plant Operation... 'Performance Reflected from Next Month'"

Jinyoung's subsidiary, 'Korea Eco Energy,' announced on the 4th that it has commenced operations of its pyrolysis oil plant. The production facilities that have started operation this time are Pyrolysis Units 1 and 2. Korea Eco Energy expects to generate substantial business performance starting January next year.

Last month, Korea Eco Energy received final approval from the Korea Testing Laboratory (KTL) for the installation inspection of Pyrolysis Units 1 and 2. Based on this, Yeongcheon City approved the operation of Korea Eco Energy's plant. Korea Eco Energy has completed all necessary permits and procedures for plant operation and is accelerating the mass production of pyrolysis oil.

Korea Eco Energy plans to install two additional production facilities by the second half of next year. The Yeongcheon plant site, currently covering 1,100 pyeong, will be expanded with the goal of installing and operating a total of 16 pyrolysis oil facilities by the first half of 2026.

The pyrolysis oil business is a representative high-profit business capable of generating revenue through various processes. It receives various paid supports from the government and local governments during the waste plastic processing. High-purity naphtha and heavy oil extracted through plastic pyrolysis can be sold to refineries. The residue left after pyrolysis can be resold as asphalt material.

Korea Eco Energy has been conducting discussions with large refineries near the Yeongcheon plant regarding the supply of pyrolysis oil. Multiple companies have expressed interest, and the company expects to secure supply channels soon, according to its statement.

A Korea Eco Energy official said, "Starting with the operation of two units in December this year, we plan to expand to four units by the end of 2024, eight units by the end of 2025, and a total of 16 pyrolysis oil facilities by 2026, aiming to achieve annual sales of over 30 billion KRW solely from the Yeongcheon plant." He added, "Since the pyrolysis oil business is a representative high value-added business, a high profit margin of over 45% operating profit is expected."

He continued, "Pyrolysis oil is the first industry among the nine major projects of the government-led K-Circular Economy, and rapid growth is anticipated. Therefore, we will expand the business through aggressive investment. Based on the operational performance and know-how of the Yeongcheon plant, we are also considering constructing additional plants in other regions, and we will achieve performance growth through active expansion by attracting external investments," he emphasized.

The revision of regulatory laws that had been hindering the activation of the plastic pyrolysis oil market is also accelerating. Last month, the amendment to the 'Petroleum and Petroleum Substitute Fuel Business Act (Petroleum Business Act)' passed the National Assembly standing committee. The amended Petroleum Business Act includes biofuels and renewable synthetic fuels as alternative fuels and allows their use in petroleum refining processes.

According to industry insiders, the global market size for pyrolysis oil extracted from waste plastics is estimated to grow from 700,000 tons in 2020 to 3.3 million tons by 2030, with an average annual growth rate of over 17%.

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