Korean chemical makers turn to plastic recycling via pyrolysis oil employment
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Amid deepening energy instabilities from climate changes and geopolitical risks, South Korean companies are discovering new business of producing pyrolysis oil by extracting petroleum from waste plastics to generate carbon source while helping to reduce footprint.
According to industry sources on Sunday, SK geocentric is creating a waste plastic recycling cluster on a 215,000 square meter site in Ulsan. The company aims to recycle about 200,000 tons of waste plastic per year and expects to obtain about 150,000 tons of pyrolysis oil per year from the facility.
Pyrolysis oil is a type of oil obtained by applying high temperature and pressure to waste plastics and vinyl, reversing the process of making plastics from naphtha extracted from crude oil. The pyrolysis oil produced in this way is once again used to make plastics.
Lotte Chemical is the first in the local petrochemical industry to produce plastics by using pyrolysis oil from waste vinyl and supply them to customers.
Hyundai Chemical, a joint venture between Hyundai Oilbank and Lotte Chemical, started producing eco-friendly petroleum products and plastics by using waste plastic-based pyrolysis oil in May.
GS Caltex is conducting a demonstration project to put waste plastic pyrolysis oil into its petroleum refining process. As a first step, the company is testing commercial viability of products from its Yeosu plant, which are formed with about 50 tons of waste plastic pyrolysis oil. Based on the results of the demo project, the company will consider investment in a waste plastic pyrolysis oil production facility with an annual capacity of 50,000 tons. It aims to start operations in 2024.
Some companies leverage pyrolysis oil technology and related solutions to enhance environmental, social and governance (ESG) achievements. Hyundai Oilbank recently obtained certification for the process of producing eco-friendly naphtha from waste plastic pyrolysis oil.
By Song Min-geun, Jung You-jung and Minu Kim
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