Petronas Chemicals Group Berhad (PCG) said Oct. 9 it plans to build Asia’s largest advanced chemical recycling plant in Malaysia with operations scheduled to begin in the first half of 2026.
The plant would have a capacity of 33 kilotons per year, the company said.
PCG, a division of Malaysia’s state-run oil giant Petronas, will convert end-of-life plastics into pyrolysis oil.
The company’s final investment decision includes the signing of a technology license agreement between PCG and Plastic Energy Limited and an engineering, procurement and construction agreement with Mutiara Etnik Sdn. Bhd.
Plastic Energy will provide the chemical recycling technology for the plant through its 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.
The plant will help PCG meet its sustainability goals while contributing to the circular supply chain, said PCG CEO Mohd Yusri Mohamed Yusof.
“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,” he said in a prepared statement. “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.”