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.

KUALA LUMPUR, Malaysia, Oct. 9, 2023 /PRNewswire/ --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.

About Mutiara Etnik Sdn. Bhd.

MUTIARA ETNIK is an EPCC Contractor with ISO certification and CIDB Grade 7 registration to undertake Civil Engineering Construction, Building Construction and Mechanical works projects. Our vision is to be the leader in providing green solution through sustainable and path setting initiatives. We specialize in waste-to-energy systems, material handling, port equipment, recycling, recovery, renewable energy, building and infrastructure projects. The company is actively aligning its business with ESG commitments and supporting decarbonization strategies to accomplish its sustainability goals. Our comprehensive project approach ensures feasibility and cost efficiency at every stage.

For more information, please visit https://www.mutiaraetnik.com

About Plastic Energy

Plastic Energy is a global leader in chemical recycling, offering a sustainable solution to help prevent plastic waste, transforming previously unrecyclable plastic waste into a valuable resource. Our patented and proven chemical recycling technology converts end-of-life plastic waste into an optimal feedstock (TACOIL™) for making virgin-quality recycled plastics. Plastic Energy currently has two chemical recycling plants that are in constant operation in Spain and is one of the few companies worldwide that has sold TACOIL™ from the conversion of end-of-life plastic waste to replace fossil oils in the manufacturing of new plastics. We are leading our field in the transition to a low-carbon circular economy for plastics.

Learn more on our website, and follow us on Twitter and Linkedin.

About PETRONAS Chemicals Group Berhad

PETRONAS Chemicals Group Berhad (PCG) is the leading integrated chemicals producer in Malaysia and one of the largest in Southeast Asia. It operates a number of world-class production sites in Malaysia, Asia-Pacific, Europe and North America. With a total combined production capacity of 15.4 million metric tons per annum (mtpa), it is involved primarily in manufacturing, marketing and selling a diversified range of chemical products, including olefins, polymers, fertilisers, methanol, other basic chemicals, derivative products and specialty chemicals.

Listed on Bursa Malaysia with more than three decades of experience in the chemicals industry, PCG is established as part of the PETRONAS Group to maximise value from Malaysia's natural gas resources.

PCG is committed to ensuring that its business practices are in line with globally recognised standards for Economic, Environment, Social & Governance (EESG) practices. It is currently listed in the FTSE4Good Bursa Malaysia (F4GBM) Index and the Dow Jones Sustainability™ World Index.

Further details on PCG can be found at www.petronaschemicals.com.my

SOURCE PETRONAS Chemicals Group Berhad (PCG)