Petronas Chemicals Group Bhd , a subsidiary of Malaysian state-run energy giant Petronas Chemicals Group (PCG) , has unveiled plans to build the largest advanced chemicals recycling plant in Pengerang, located in Malaysia’s southern state of Johor, as reported by Reuters on October 9. The facility is designed to convert end-of-life plastics into pyrolysis oil or TACOIL, a chemical feedstock for sustainable plastics production. Scheduled to begin operations in the first half of 2026, the plant will have a planned production capacity of 33,000 tons annually. PCG’s subsidiary has entered into a technology license agreement with Plastic Energy Ltd, which will provide the chemical recycling technology for the new plant.

This initiative is part of PCG’s New Plastics Economy agenda, aimed at supporting the shift toward a circular economy and fostering a sustainable plastics ecosystem. The TACOIL produced by the plant can substitute hydrocarbon feedstock in the production of food-grade recycled plastics, contributing to the promotion of sustainable plastic production. Moreover, this project aligns with Malaysia’s Roadmap Towards Zero Single-Use Plastics 2018-2030. Malaysia, ranked eighth among the top 10 countries in the world with the most mismanaged plastic waste, introduced this ambitious roadmap in 2018 with the goal of eliminating single-use plastics by 2030.

Sources:

https://www.reuters.com/sustainability/petronas-unit-build-asias-largest-advanced-chemical-recycling-plant-malaysia-2023-10-09/

https://www.petronas.com/pcg/media/media-release/pcg-construct-asias-largest-advanced-chemical-recycling-plant

https://www.straitstimes.com/asia/se-asia/eliminating-single-use-plastics-by-2030-seen-as-an-uphill-battle-for-malaysia