Saudi Arabia-based chemical company Sabic is working with United Kingdom-based Plastic Energy Ltd. in a project that will build a commercial plant in the Netherlands to refine plastic waste into a material for food-safe plastics.
Plastic Energy, based in London, has a patented, low carbon footprint technology called thermal anaerobic conversion (TAC) which converts waste plastic into Tacoil, which will then be used by Sabic as a feedstock for its petrochemical operations in Europe making plastic for food packaging.
Plastic Energy already owns and operates plastic recycling plants in Seville and Almeria, Spain, which have been operational since 2014 and 2017.
The Dec. 4 agreement with Sabic will involve building the first commercial plant in the Netherlands to refine and upgrade Tacoil.
Sabic said the plant, which is expected to begin commercial production in 2021, is a significant milestone for the company's commitment to establishing a circular economy and, more broadly, its sustainability goals.
“Sustainability is a core value at Sabic and the circular economy is a cornerstone of our strategy as evidenced by this unique agreement,” said Frank Kuijpers, general manager for corporate sustainability at Sabic.