S-Oil signs plastic recycling agreement with Korea Blue Energy Ulsan

S-Oil signed a plastic recycling agreement with Korea Blue Energy Ulsan, a local plastic recycling company, the oil refiner said Monday.

Representatives from S-Oil and Korea Blue Energy Ulsan pose for a photo during a MOU signing ceremony at S-Oil headquarters in Mapo District, western Seoul, on Friday. [S-OIL]

S-Oil signed a plastic recycling agreement with Korea Blue Energy Ulsan, a local plastic recycling company, the oil refiner said Monday.

With the signing of the memorandum of understanding, the two companies will utilize waste plastics, which have been largely incinerated or landfilled so far, to jointly produce chemical products.

Korea Blue Energy Ulsan will supply pyrolysis oil — which is produced by heating waste plastics — to S-Oil. S-Oil will then process the oil with crude oil to produce eco-friendly naphtha and polypropylene.

In July, the Ministry of Trade, Industry and Energy granted S-Oil approval for the recycling project under the regulatory sandbox program, as processing alternative fuel materials categorized as waste at conventional oil refineries is not allowed under the current law. The approval will expedite the administrative process involving licensing, according to S-Oil.

S-Oil plans to achieve the ISCC Plus — International Sustainability & Carbon Certification Plus — for recycled products next year.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]