Chemical Recycling: A Key to Defossilizing the Chemical Industry

Finding alternative carbon sources is a critical task, including the recycling of waste plastics, biomass, and carbon dioxide. All three methods are needed to drive the transition away from fossil-based carbon. In the plastics industry, recycling technologies have garnered particular interest. While mechanical recycling is already well-established, advanced chemical recycling technologies are rapidly emerging as a promising new carbon source.

The development of chemical recycling technologies is progressing quickly, and the complementarity between mechanical and chemical recycling is gaining wider acceptance. This is expected to positively impact the overall recycling rates of plastics. Currently, waste streams unsuitable for mechanical recycling are sent to landfills or incineration. In Europe, approximately 23% of plastic waste is landfilled, and 42% is used for energy recovery. Chemical recycling can redirect these waste streams, enhancing the recycling and circularity of materials.

At the conference, experts highlighted that "it's not mechanical versus chemical recycling; it's recycling versus fossil." They also outlined plans to use both mechanical and advanced recycling technologies to ensure sufficient recycled content for the plastic packaging market in Europe.

On the second day of the conference, a dedicated session on "Mechanical, Physical, and Chemical Recycling" showcased the latest advancements from technology providers in the advanced recycling sector. One innovative technology stands out due to its use of a low-cost catalyst to break down polyolefins at lower temperatures than traditional pyrolysis. This lower temperature enables two critical reactions: in-situ conversion of hydrocarbon fragments to alkanes, eliminating the need for subsequent hydrogenation, and hydrolysis of PET (Polyethylene terephthalate) and nylon, elegantly removing oxygen and nitrogen heteroatoms without pre-sorting and post-processing.

Chemical recycling is expected to rapidly grow in the next five years. According to a report by nova-Institute, global chemical recycling capacity is projected to double, with a fourfold increase expected in Europe. Technologically, pyrolysis is anticipated to show the strongest growth, followed by solvolysis.

However, uncertainty in the policy framework has been a major obstacle, particularly in the EU's discussions on mass balance methods. The mass balance approach allows credits to be transferred from outputs in categories like 'plastics' and 'other materials' to high-value polymer outputs. Acceptance of this model could help chemical recycling meet the recycled content quotas set by EU packaging and packaging waste regulations.

Textile-to-textile recycling is also a critical future direction. Managing textile waste is a global challenge, similar to packaging waste. Currently, less than 1% of all textiles worldwide are recycled into new products, with the EU generating 12.6 million tons of textile waste annually. While there has been progress in incorporating recycled content in synthetic fibers, most of it comes from bottle-to-textile processes, primarily PET bottles. With the packaging industry focusing on closed-loop solutions and bottle recycling, the textile industry is under pressure to prioritize fiber-to-fiber recycling.

Recently, the EU Parliament's Environment Committee adopted new rules establishing Extended Producer Responsibility (EPR) schemes for textiles, clothing, and footwear, which will help cover the costs of separate collection, sorting, reuse, and recycling in the EU. New regulations regarding recycled content targets are also expected.

Chemical or advanced recycling will play a key role in transitioning the chemical industry towards a decarbonised and circular future. The latest RCI Position Paper on Chemical and Physical Recycling states that "chemical and physical recycling are fundamentally important for the circular economy, sustainable carbon cycles, decarbonisation of the chemical industry, and carbon management. They have significant potential, but substantial investment is needed to fully exploit it. To achieve this, stable demand must be created, particularly through the policy framework."