Petronas Chemical signs MOU with Plastic Energy Ltd

Kuala Lumpur, 27 June 2019 – PETRONAS Chemicals Group (PCG), the petrochemical arm of PETRONAS, has inked a memorandum of understanding (MoU) with chemical recycling company Plastic Energy Ltd to collaborate in addressing plastic waste in Malaysia that is unable to be recycled by conventional means.

Both companies will jointly perform a feasibility study to establish a facility to convert plastic waste into Tacoil, which is Plastic Energy’s optimal feedstock to create recycled virgin-quality plastics from low-quality and mixed plastic waste that would otherwise be incinerated or sent to landfills.

Depending on the outcome of the study, PCG and Plastic Energy may consider building a commercial plant in Malaysia.

Once materialised, PCG will be the first petrochemical company in South-East Asia to invest in a chemical recycling project which converts mixed plastics waste into virgin quality polymer.

The collaboration will enable PCG to utilise Tacoil produced by Plastic Energy for polymer production in its petrochemical complex in Pengerang Integrated Complex, as well as obtain the circular polymer certification from International Sustainability and Carbon Certification.

PCG Managing Director/CEO Datuk Sazali Hamzah said PCG had recently established a dedicated team to pursue an active role in the implementation of the New Plastic Economy initiative in addressing issues arising from plastics waste and providing a sustainable solution for environmental preservation.

“Our partnership with Plastic Energy is in line with our purpose towards becoming a progressive energy and solutions partner that enriches lives for a sustainable future.”

Plastic Energy currently has two established commercial plants in Seville and Almeria, Spain.

The partnership is PCG’s initial step towards a circular economy. The Company is
determined to continuously minimise its impact to the environment through best-inclass approach, and sustain its operations in an economically, environmentally and
socially responsible manner.