Recycling: Milliken/Pan Era Group to produce rPP in Indonesia; LyondellBasell to build industrial-scale recycling plant in Germany

One of the largest PE/PP recycling companies in Asia Pan Era Group and chemicals manufacturer Milliken & Company have announced the signing of a Memorandum of Understanding (MoU) to establish a strategic partnership that combines Pan Era Group's expertise in the collection and production of recycled PP (rPP) plastic resin with Milliken's additive technology solutions.

Pan Era Group and Milliken will collaborate to promote a Circular Economy in Indonesia by utiliSing Pan Era Group's extensive local collection network to collect plastic waste and coupled with Milliken's material science technology to produce rPP resin. Further, this collaboration aims to improve the performance of transparent recycled PP resin and increase its market presence.

Under the agreement, Pan Era Group and Milliken will collaborate to enhance the performance of rPP plastic resin by using Milliken's additive technology solution. The partnership aims to improve the market appeal, with Pan Era Group promoting Milliken as a supplier during promotional activities, and vice versa. The collaboration seeks to advance sustainable practices and promote the use of rPP in Indonesia. This collaboration aligns strongly with Indonesia's commitment to promoting a Circular Economy and reducing plastic waste, as well as supporting global sustainability goals of many stakeholders in the plastics value chain.

"Through this strategic partnership, we are excited to combine our strengths and expertise with Milliken's additive technology solutions," said Wilson Pandhika, CEO of Pan Era Group. "Together, we will drive innovation and address the evolving demands of the plastic industry, with a specific focus on transparent PP plastic resin. Our collaboration will enable us to offer enhanced products that meet the highest quality standards and contribute to a more sustainable future"

"We are thrilled to partner with Pan Era Group and combine our expertise to improve and expand the market influence of transparent PP plastic resin," said Vincent Wang, South Asia Commercial Leader of Milliken's Plastic Additives business. "The insights provided by Pan Era Group regarding the Indonesian plastic recycling industry will be instrumental in developing future grades that meet the specific needs and preferences of the market. Together, we will deliver innovative solutions that drive growth and sustainability." 

In other news, chemical firm LyondellBasell (LYB) has announced it has made the final investment decision to build the company's first industrial-scale catalytic advanced recycling demonstration plant at its Wesseling, Germany, site. Using LyondellBasell's proprietary MoReTec technology, this plant will be the first commercial scale, single-train advanced recycling plant to convert post-consumer plastic waste into feedstock for production of new plastic materials that can be ran at net zero GHG emissions. The new plant is expected to have a capacity of 50,000 tonnes/year and is designed to recycle the amount of plastic packaging waste generated by over 1.2 million German citizens per year. Construction is planned to be completed by the end of 2025.

Peter Vanacker, LYB CEO, said, "Scaling up our catalytic advanced recycling technology will allow us to return larger volumes of plastic waste back into the value chain. By doing this, we will have the ability to produce more materials for high-quality applications, retaining value of plastics for as long as possible."

The LYB MoReTec demonstration plant will close the gap for difficult to recycle plastics, such as mixed or flexible materials that are currently sent to landfill or incineration. Source One Plastics, a joint venture of LYB and 23 Oaks Investments formed in October 2022, will supply the majority of the sorted processed feedstock. The advanced recycled feedstock produced by the MoReTec facility will be used for the production of polymers sold by LYB under the  CirculenRevive product line for use in a wide range of applications, including medical and food packaging.  

The MoReTec technology produces pyrolysis oil and pyrolysis gas. Pyrolysis oil is a substitute for fossil-based materials used in polymer production.  Typically, pyrolysis gas streams are consumed as a fuel, however, the MoReTec technology enables the pyrolysis gas to be recovered as well, contributing to the production of polymer and displacing fossil-based feedstocks, which lowers direct CO2 emissions. 

In addition, the proprietary catalyst technology lowers the process temperature, reduces energy consumption and improves yield.  With lower energy consumption, the process can be powered by electricity, including electricity from renewable sources at net zero GHG emissions. 

These differentiating advantages provide a carbon footprint advantage as well. The recovery of pyrolysis gas as feedstock, lower energy demand, electrical heating design, displacement of fossil-feedstocks, and recovery of waste plastic from incineration or landfill result in a significantly lower carbon footprint compared with fossil-based processes. This makes MoReTec a unique value proposition.

(PRA)

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