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Saudi Basic Industries Corp. (SABIC) signed a memorandum of understanding (MoU) with UK-based Plastic Energy Ltd. for the supply of feedstock to support its petrochemical operations in Europe, a company statement said on Thursday.
Under the terms of the agreement, the two companies intend to build a first commercial plant in the Netherlands to refine and upgrade a valuable feedstock, known as tacoil, which will be produced from recycling of low quality, mixed plastic waste otherwise destined for incineration or landfill.
The plant is anticipated to enter commercial production in 2021, the statement added.
“This project is a testament to our commitment to scale up advanced chemical recycling processes of plastics back to the original polymer,” Frank Kuijpers, general manager for corporate sustainability at SABIC, said.
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