PTQ Q1 2024 Issue

Vol 29 No 1 Q1 (Jan, Feb, Mar) 2024 ptq PETROLEUM TECHNOLOGY QUARTERLY

Challenges to chemical recycling of plastic waste

T he end products obtained through the chemical recycling of plastic wastes can be used as fuels, lubricants, or feedstocks for chemicals production, con- tributing to a more sustainable and circular economy. However, the efficiency and economic viability of chemical recycling processes can vary depending on the specific feedstock and the desired end products. The chemical recycling of pyrolysis oil (from plastic waste) typically involves refin - ing or upgrading the oil to improve its properties or convert it into specific chemicals. This can be done through processes such as hydrotreating, hydrocracking, and other chemical reactions. The goal is to produce higher-quality products that can be used as fuels, chemicals, or feedstocks for various industrial applications. However, some sceptics in Europe, the US, and elsewhere say the technical chal- lenges run much deeper than previously expected, including contaminants poison- ing of hydroprocessing catalysts, energy consumption, and emissions. The landscape of waste management and recycling initiatives can change rapidly, though, and new developments in one small pilot plant or research project could resolve these hurdles. Steady progress is expected in 2024 to fund scale-up to commercial production of chemical recycling of plastic waste-derived pyrolysis oil to its basic monomer. Although there are already proven technologies for producing propylene, polypro- pylene, and other plastics precursors, these are single-use, non-circular routes. Public campaigns to arrive at an international treaty limiting single-use plas- tics production coincide with calls for the implementation of Extended Producer Responsibility policies. This would make plastics manufacturers responsible for the entire life cycle of plastic products, and may incentivise resolutions of the many chal- lenges associated with expanding chemical recycling of plastic wastes. Despite the 2022 Inflation Reduction Act that could provide up to $1 trillion for ‘green’ investments (possibly including biomass or plastics chemical recycling to valuable products like PVC), billions of dollars continue to pour into the conventional fossil fuel industry, including refinery and petrochemical projects in the Middle East, Saudi Arabia, and China. Regardless of the increased use of EVs, solar, and other ‘green’ energy alternatives, global oil demand in 2024 is set to grow year on year by an impressive 2.2 million bpd, supported by steadily rising road mobility in major consuming countries, such as China, India, and the US. The IEA estimated growth in demand for petrochemical products means that petrochemicals are set to account for nearly half of growth in oil demand to 2050, ahead of diesel, SAF, and maritime fuel. It is no secret that refiners can sell fuels for $550/ton or else convert fossil-based feedstocks to petrochemicals and earn around $1,400/ton, such as with the integrated refinery and petrochemical facilities in India. Against this backdrop, it is projected that global production of thermoplastics will amount to 445.25 million metric tons per year (mmtpy) in 2025. Annual production volumes are expected to continue rising in the following decades to approximately 590 mmtpy by 2050. While the percentage from chemical recycling of plastic waste contributing to that 590 mmtpy seems insignificant, the fossil fuel industry seems confident that steady technical improvements will allow the upgrading of higher vol - umes of plastics waste-derived pyrolysis oil through refinery hydroprocessing units. The profitable link between plastics and fossil fuels may have provided a lifeline for Big Oil, including the refining industry. This begs the question: why invest in chemi - cal recycling of plastic waste? With the prospect of a global treaty that limits non- circular, single-use plastics production, it could be a big winner.

Editor Rene Gonzalez editor@petroleumtechnology.com tel: +1 713 449 5817

Managing Editor Rachel Storry rachel.storry@emap.com Editorial Assistant Lisa Harrison lisa.harrison@emap.com

Graphics Peter Harper

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PTQ (Petroleum Technology Quarterly) (ISSN No: 1632-363X, USPS No: 014-781) is published quarterly plus annual Catalysis edition by EMAP and is distributed in the US by SP/Asendia, 17B South Middlesex Avenue, Monroe NJ 08831. Periodicals postage paid at New Brunswick, NJ. Postmaster: send address changes to PTQ (Petroleum Technology Quarterly), 17B South Middlesex Avenue, Monroe NJ 08831. Back numbers available from the Publisherat $30 per copy inc postage.

Rene Gonzalez, Editor, PTQ

PTQ Q1 2024