Shell, PreZero link up on chemical recycling

Waste and recycling management company PreZero, part of the Schwarz Group, and Shell have announced that they have signed a cooperation agreement aimed at the development of a chemical recycling solution for currently unrecyclable plastic waste. As mechanical recycling is unable to handle certain types of plastic waste, this ends up being incinerated or landfilled instead of keeping it in the loop.

The two companies are partnering to bridge this gap in the recycling system and will to that end develop a number of joint projects, with each company bringing its own specific expertise to bear.  PreZero will leverage its experience in feedstock collection, sorting, and pre-treatment to develop new solutions for selecting and converting plastic waste into plastic recyclates. Shell will develop, scale and deploy technologies to establish a process to transform plastic waste into the chemicals needed to produce new plastics. 
The first initiative arising from this collaboration is currently being developed in the Netherlands. 

"Many European countries are significantly increasing their recycling targets for plastic," said Sven Nuener, CSO PreZero International. "To work towards this goal, we not only need to increase the capacity of our recycling facilities but also diversify the types of plastic waste we can process. Our new project ensures broader possibilities for recycling as we work with material that would otherwise remain as waste."

The goal of the new partnership is to develop an economically viable value chain for plastic waste not suitable for mechanical recycling, explained Marco Richrath, senior vice president Chemicals and Products Europe at Shell. “With this cooperation agreement, we are bringing parties in the value chain together to make progress,” he said.
Within the scope of the present agreement, PreZero and Shell will also explore other cross-business connections in areas such as low carbon fuels and renewable energy generation, the companies said.

Recently, Shell's commitment to the environment and to reducing greenhouse gas emissions has been called into question. The company made headlines last month when its CEO Wael Sawan announced a the company's renewed focus on fossil fuels,"to provide the secure energy customers need today and for a long time to come, while transforming Shell to win in a low-carbon future. Performance, discipline, and simplification will be our guiding principles as we allocate capital to enhance shareholder distributions, while enabling the energy transition,” he said.
Further clarification was provided by Sinead Gorman, chief financial officer at Shell, at the company’s Capital Markets Day in New York, who stated that "at the heart of everything we do will be a ruthless approach to capital allocation and a singular focus on creating long-term value".
As well, Bloomberg yesterday reported that Shell is exploring options for its global renewable power operations, including a potential stake sale to outside investors. "The company has approached a number of international investors to gauge interest, while it also considers separating the business into a more independent unit," Bloomberg wrote.
Meanwhile, it was announced 30 June that Shell's head of renewables Thomas Brostrøm has left the company to “pursue an external opportunity,” following a restructuring that eliminated his role. His successor, Greg Joiner, currently VP Shell Energy Australia, has been named 'head Shell Energy Europe and Emerging Markets Power.'