PCG To Construct Asia's Largest Advanced Chemical Recycling Plant

• PCG reaches FID for the construction of an advanced chemical recycling plant in Pengerang, Johor, targeted to be operational by first half of 2026.
• The plant will use Plastic Energy’s patented technology to convert end-of-life plastics into pyrolysis oil, which can be used for the creation of recycled plastics.

PETRONAS Chemicals Group Berhad (PCG), has reached the final investment decision (FID) to construct Asia’s largest advanced chemical recycling plant with a capacity of 33 kilo-tonnes per annum (ktpa). The plant which will be located in Pengerang, Johor, is targeted to be operational by the first half of 2026.

The FID announcement also saw the signing of the Technology License Agreement (TLA) between PCG’s subsidiary and Plastic Energy Limited (Plastic Energy) and awarding of the Engineering, Procurement and Construction (EPC) to Mutiara Etnik Sdn. Bhd.

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 unlock plastics waste chemical recycling capabilities in Malaysia through the conversion of end-of-life plastics into pyrolysis oil or TACOIL, which can be used as chemical feedstock towards the production of sustainable 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. 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 PCG Managing Director / Chief Executive Officer Ir. Mohd Yusri Mohamed Yusof.

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 vapours, that are condensed into pyrolysis oil or TACOIL 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, Chief Executive Officer 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.

The advanced chemical recycling plant will benefit Malaysia’s plastics value chain beyond closing the loop of the plastics life cycle by creating an ecosystem that promotes the transition to a circular economy.