A memorandum of understanding has been signed by INEOS Olefins & Polymers Europe and Plastic Energy to produce 100,000 tonnes per year of chemically recycled plastic in Germany.
Production will be based in Köln and will use Plastic Energy’s technology to turn hard-to-recycle plastics into its TACOIL product.
INEOS will also invest in technology to process TACOIL further before feeding it into its steam crackers, where it will replace traditional oil-based feedstock.
Since announcing a collaboration in 2020, INEOS and Plastic Energy have been working together to the extent that TACOIL has already been converted into virgin-quality polymers at the Köln cracker.
Production of the chemically recycled plastic product is expected to begin in 2026.
INEOS O&P Europe North chief executive Rob Ingram 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.”