Oil giant BP has signed a 10-year deal to buy the output from Clean Plant Energy’s waste plastic to fuel facility in Teesside.
Clean Plant Energy takes hard-to-recycle plastics and turns them into a petrochemical feedstock called naphtha as well as ultra-low sulphur diesel (ULSD).
The Teesside facility is capable of processing 20,000 tonnes a year of waste plastics into naphtha and ULSD.
BP will also have the opportunity to buy more feedstock from other plants that the UK-based company intends to build.
It is currently building 12 plants globally with the aim of handling 250,000 tonnes of waste plastic.
BP Refinining & Products Trading senior Vice President Sven Boss-Walker said: “This long-term agreement with Clean Planet Energy for the offtake of naphtha will help BP unlock new sources of value through circularity, while helping divert plastic waste away from landfill, incineration and the environment. Clean Planet Energy’s first facility in Teesside should help accelerate this journey.”