INEOS Olefins & Polymers Europe and Plastic Energy have announced a Memorandum Of Understanding (MoU) to produce 100,000 tonnes per annum of recycled raw materials from plastic waste.

This will be the largest use of plastic energy technology and will enable a circular approach to produce essential plastic items that meet the requirements of demanding food contact and medical applications.

Production will be based in Koln, Germany and it is targeted to start by the end of 2026. Plastic Energy’s patented TAC recycling technology will turn difficult-to-recycle plastic waste otherwise destined for incineration or landfill, into a valuable raw material TACOIL, a Plastic Energy product that can be used to create virgin-quality polymers.

INEOS will also invest in technology to process the TACOIL further before feeding it to their steam crackers, where it will replace traditional raw materials derived from oil. This use of advanced recycling enables plastic waste to be turned into new, virgin-quality materials that can be used in demanding applications where safety standards require the highest level of product purity and performance.

As well as reducing the risk of plastic pollution and the use of fossil-based raw materials, the circular re-use of ‘end of life’ plastic will also help to reduce total emissions, supporting the transition to net zero.

Rob Ingram, CEO, INEOS O&P Europe North said, “Advanced recycling is an essential part of the solution for turning plastic waste into materials that can be used for demanding applications. Our position is that advanced recycling has to be done at scale in order to make the process environmentally and commercially viable. I’m therefore delighted to take this first step with Plastic Energy towards building that kind of capability from day one.”

“This is further evidence of our commitment to creating a more sustainable future for our industry and in particular developing a circular economy that keeps valuable materials in use and out of the environment,” added Ingram.

Carlos Monreal, Founder and CEO, Plastic Energy said, “We are pleased to announce this project with INEOS to further scale our portfolio of plants in Europe. TACOIL from our recycling process has already been used in products that have been commercialised on the European market, and we look forward to working with INEOS to enable the production of more recycled content.”