Saudi chemicals company Sabic has signed a memorandum of understanding (MoU) with UK-based Plastic Energy Ltd, a chemical plastics recycler, for the supply of feedstock to Sabic's petrochemical operations in Europe.
Based in London, Plastic Energy has developed a patented, low carbon footprint technology called thermal anaerobic conversion (TAC), which converts plastic waste into Tacoil for making new virgin food-safe plastics.
The company owns and operates two plastic recycling plants in Seville and Almeria, Spain, which have been operational since 2014 and 2017.
The 4-Dec agreement with Sabic will involve building a first commercial plant in the Netherlands to refine and upgrade Tacoil.
Sabic said the plant, which is anticipated to enter commercial production in 2021, is a significant milestone for the company's commitment to establishing a circular economy and, more broadly, its sustainability goals.
“Sustainability is a core value at Sabic and the circular economy is a cornerstone of our strategy as evidenced by this unique agreement”, said Frank Kuijpers, general manager for corporate sustainability, SABIC.