KUALA LUMPUR: Petronas Chemicals Group Bhd (PCG) has reached the Final Investment Decision (FID) to construct Asia's largest advanced chemical recycling plant with a capacity of 33 kilo-tonnes per annum.

The plant will be located in Pengerang, Johor, and is targeted to be operational by the first half of 2026.

The FID announcement also saw the signing of a Technology License Agreement (TLA) between PCG's subsidiary and Plastic Energy Ltd (Plastic Energy) and the awarding of the engineering, procurement and construction (EPC) contract to Mutiara Etnik Sdn Bhd.

In a joint statement, it said the plant will unlock plastic waste chemical recycling capabilities in Malaysia as part of PCG's New Plastics Economy agenda to support the transition towards a circular economy and contribute to a sustainable plastics ecosystem.

"It will be done through the conversion of end-of-life plastics into pyrolysis oil or TACOIL, which can be used as chemical feedstock towards the production of sustainable plastics," it said.

PCG managing director and chief executive officer Mohd Yusri Mohamed Yusof said through the advanced chemical recycling plant, the group envisioned 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.

"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," he said. -BERNAMA

https://www.nst.com.my/news/nation/2023/10/964890/petronas-chemicals-construct-asias-largest-advanced-chemical-plant