Petronas Chemicals Group (PCG), the petrochemical arm of Malaysian energy group Petronas, has signed a memorandum of understanding (MoU) with thermochemical plastics recycler Plastic Energy to collaborate on the recycling of plastic waste.
As part of the agreement, the two companies will jointly perform a feasibility study to establish a facility for converting plastic waste into Tacoil, a feedstock oil produced using Plastic Energy’s patented chemical recycling process.
Headquartered in London with two production plants in Almeria and Seville, Spain, Plastic Energy has developed a thermochemical conversion technology that converts end-of-life, hard-to-recycle plastics into a hydrocarbon oil product called Tacoil.
Tacoil is suitable for use as feedstock to produce either virgin-like recycled plastics (closed-loop Plastic2Plastic) or alternative low-carbon fuel (open-loop Plastic2Oil).
The collaboration will enable PCG to utilise Tacoil produced by Plastic Energy for polymer production at its petrochemical complex in Pengerang Integrated Complex, southern Malaysia.
Using Tacoil, PCG can acquire circular polymer certification from International Sustainability and Carbon Certification (ISCC).
The move is part of PCG’s strategy to become “a progressive energy and solutions partner” with focus on sustainability.
“We have embedded our sustainability agenda within our operations as a critical driver for business growth and in creating value for our stakeholders,” said PCG CEO Datuk Sazali Hamzah.
The Malaysian company also recently established a dedicated team to pursue the implementation of the New Plastic Economy initiative, launched by Ellen MacArthur Foundation (EMF) last year.