PCG to Build Asia’s Largest Advanced Chemical Recycling Plant

09.10.2023 - Malaysia’s leading integrated chemicals producer Petronas Chemicals Group Berhad (PCG), part of Petronas group, has reached the final investment decision (FID) to construct an advanced chemical recycling plant with a capacity of 33 kt/a. The plant, to be built in Pengerang, Johor, is the largest of its kind in Asia, said Petronas, and is expected to be operational in the first half of 2026.

As part of the investment announcement, PCG signed a technology license agreement (TLA) with Plastic Energy and also awarded the engineering, procurement and construction (EPC) contract to Mutiara Etnik.

As part of PCG’s New Plastics Economy agenda to support the transition towards a circular economy and contribute to a sustainable plastics ecosystem, the plant will enable the chemical recycling of plastic waste in Malaysia by converting waste plastics into pyrolysis oil, which can be used as chemical feedstock towards the production of sustainable plastics, the company said.

“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. 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,” said Mohd Yusri Mohamed Yusof, PCG’s managing director and CEO.

Plastic Energy will be providing the chemical recycling technology for the plant through its patented TAC process, which heats mixed post-consumer plastic waste in the absence of oxygen. This process then produces hydrocarbon vapors, that are condensed into pyrolysis oil which can be used as a substitute for hydrocarbon feedstock in the production of food-grade recycled plastics.

“After starting our collaboration with PCG back in 2019, we are pleased to be chosen as the technology provider for their new chemical recycling plant in Malaysia. Together we share a common goal to reduce plastic pollution in Asia by increasing the amount of plastic waste that can be recycled, and expanding recycling infrastructure in the region,” said Carlos Monreal, CEO of Plastic Energy.

"We are excited to be the EPC partner for this groundbreaking project by PCG. We have always been committed to excellence in every project we undertake, and we will ensure that this plant will meet PCG’s expectations,” said Datuk Surendran Menon, managing director of Mutiara Etnik.