Kuala Lumpur-headquartered Petronas Chemicals Group Berhad (PCG), a unit of Malaysian state-run energy giant Petronas, announced today plans to build what it is calling Asia’s largest chemical recycling plant in Pengerang, a municipality in the Malaysian state of Johor.
The new facility will have an annual capacity of 33,000 tonnes and is expected to be operational by the first half of 2026. SK Innovations is building a chemical recycling facility in another Asian country, South Korea, with an annual capacity of 66,000 tonnes of plastic waste. Nevertheless, the new project would the largest chemical recycling plant in Southeast Asia.
London-based Plastic Energy was selected as the technology provider, adding the mega project to its extensive portfolio, that also includes the SK Innovations plant in South Korea. Its patented TAC process produces pyrolysis oil, or Taicol. Multilayer plastics can be processed together, with no separation by type or colour needed. These are heated in an oxygen-free atmosphere to create hydrocarbon gases, which are then condensed into Tacoil, which can be used by petrochemical companies as a replacement for fossil oils in the production of food-grade recycled plastics.
“Through the advanced chemical recycling plant, we envision driving innovation across the plastics value chain while creating opportunities for all parties, from waste collectors to manufacturers, to jointly contribute to the circular plastics economy,” said PCG Chief Executive Officer Ir. Mohd Yusri Mohamed Yusof. “This enables us to propel the nation’s aspiration in phasing out single-use plastics, in line with Malaysia’s Plastic Sustainability Roadmap 2021-2030, while fulfilling the growing demand from major brands for sustainable packaging,” he added.
The country’s plastic sustainability roadmap was launched by the Ministry of the Environment and Water. It aims to address plastic pollution in a sustainable way, promoting sustainable business practices, and harmonizing approaches along the value chain through the adoption of a life cycle approach. It purposes to phase out the use of virgin plastics through the development of recycled and recyclable products, encouraging reuse, and creating the infrastructure to promote plastics circularity