Is Chemical Recycling a Solution?€¦ · WTWE 14% Incineration The ideal circular economy will greatly reduce the amount of virgin feedstocks we use Source: Adapted from the Ellen

Is Chemical

Recycling a

Solution?

Elite Petrochem Conference November 15, 2019

Section Title Area

Slide Title Area

Top Margin of Body Text

Bottom Margin of Body Text

Document Footer and Page No

Left Margin Column width of 3 column layout RightMargin Column width of 3 column layout Column width of 3 column layout

Column width of Double column for Full Page Left Margin RightMargin

Column width of Double column for Full Page

Nexant provides global knowledge and regional expertise

Nexant E&CA has over 120 knowledgeable and responsive consultants that focus on

energy and chemicals, providing global coverage and regional expertise

Our people

Our consultants blend strategic,

commercial, operational and

technical expertise with deep

energy and chemicals sector

knowledge

Proven track record

Have been advising clients in the

energy and chemicals industry

for 50+ years

Highly experienced in investment

development and execution:

• Strategic Planning

• Transaction Support

• Commercial Analysis

• Technology Assessment

• Independent Expert

San Francisco

London

Bahrain

Tokyo

Seoul

Shanghai

Kuala Lumpur

Bangkok

White Plains, N.Y.

Buenos Aires

Rio de Janeiro

Washington, DC

Headquarters

Main Offices

Representative Offices

Project Offices

Pretoria

New Delhi

Beijing

2

Houston, TX

Section Title Area

Slide Title Area







Nexant advises clients across the Global Energy and Chemicals value

chain

3

Section Title Area

Slide Title Area







The Circular Economy

Plastics Recycling Overview

Impact of recycling and legislation on

virgin polymer demand

Mechanical Recycling

Chemical Recycling

PET Recycling

PS Recycling

Mixed Feed Stream Recycling

Conclusion

Nexant’s Special Report

Agenda

4 Elite Petrochem Conference November 15, 2019

44 S Broadway

White Plains NY 10601

T: +914 609 0320

E. [email protected]

Energy & Chemicals Advisory

Priyanka Khemka

Consultant

The Circular Economy

Consumer and Legislation Driven Dynamics

Section Title Area

Slide Title Area







The idea of a Circular Economy was developed with the

aim of reducing plastic waste and encouraging reuse and recycling


1. Anaerobic digestion

2. The role of, and boundary conditions for energy recovery in the New Plastics

Economy need to be further investigated

Recycling

Use Design &

Production

Reuse

Virgin

Feedstock

Other

Material

Streams

AD / Composting

Leakage

Energy Recovery

Future Circular Economy

1. Closed-loop recycling: Recycling of plastics into the same

or similar-quality applications

2. Cascaded recycling: Recycling of plastics into other,

lower-value application

Waste

Generation

98%

Virgin

Feedstock

40%

Landfilled

32%

Leakage

14% Collected

for Recycling

4%

Losses

8%

Secondary

Recycling

2% Closed

Loop

Recycling

WTWE

14%

Incineration

The ideal circular economy will greatly reduce the amount of virgin feedstocks we use Source: Adapted from the Ellen MacArthur Foundation: The New Plastics Economy, Rethinking the Future of Plastics, 2016

Current Status of Circular Economy

Section Title Area

Slide Title Area







Innovation is required across the entire plastic value chain,

including manufacturers, consumers and governments


Resources Operations Customer

Operations Consumer

Use End of Use

Redesign Innovation

Mono-material format

packaging

Reduce uncommon

plastics that escape

collection

Bio-chemicals

Recycle System Innovation

Landfill restrictions

Labeling/marker regulation

Collection infrastructure

Recycling infrastructure

Recycling of plastics to

fuels and chemicals

Reuse Innovation

More durable and

repairable

Transparency of

composition

Ease of disassembly

Collaboration across the plastic value chain is essential, including the petrochemical industry

Section Title Area

Slide Title Area







Governments around the world are taking varied legislative

approaches in order to manage plastic waste


No national laws in the U.S.

State and local governments set out their

own recycling policies

Some states/cities have implemented

policies tackling the use of and recycling

requirements for

Plastic bags

Styrofoam containers

Plastic bottles

Canada moves to ban single use plastics by

2021

Specifics to be defined

Similar legislation to EU

European Commission’s Plastics Strategy:

By 2030, all plastics packaging sold in EU market to be

reusable or recycled in a cost-effective manner

By 2030, over 50% plastics waste generated in Europe

to be recycled

Ban selected single-use products for which alternatives

exist on the market

Extended Producer Responsibility schemes to cover

the cost to clean-up litter

China Waste Import Bans:

2018: China introduced

“National Sword Policy”,

ban all plastic waste

imports

Thailand announced

implementation similar

plan by 2021, Vietnam

in 2025

India Waste Ban:

2019: Voluntary ban on the

use of single use plastics

6 items included in the ban :

plastic bags, cups, plates,

small bottles, straws and

certain types of sachets

Several states in India have

already banned plastic carry

bags. But enforcement has

been lax.

States educating consumers

about collecting plastics

India imposed ban on import

of plastic scrap in 2019

Bans on Plastic Bags:

Plastic bags banned in 22 African

countries

7 further countries have either

levies or bans only in major cities

Waste Collection Infrastructure:

Small scale recycling

Governments efforts on improving

waste collection infrastructure

Egypt’s national waste

management programme

Algeria launched PROGDEM

Kenya: integrated solid waste

management plan

Section Title Area

Slide Title Area







Corporations are also setting their own targets, while consumers are

expected to adapt their behaviour to facilitate further change


Companies setting own waste management

targets irrespective of local legislature

Consumers showing more efforts in

recycling and adopting new materials

Recycling rates increased globally

Higher consumer awareness of

importance of recycling

Recycling infrastructure develops

making recycling more accessible

Increasing use of reusable items

(e.g., beverage cups reducing

demand for plastic bottles and non-

recyclable cups)

Several instances where move

towards sustainability met with

consumer disapproval, (e.g., paper

straws dissolving in beverage)

Coca Cola launched reusable

drinks bottles, and by 2030 it

set out to collect and recycle a

bottle/can for every one sold

McDonalds aims for 100% of

packaging to originate from

renewable, recycled or

sustainable sources by 2025

Pret a Manger and Costa

seeking to reduce waste

associated with coffee cups

Plastics Recycling Overview

Impact of Recycling and Legislation on Virgin Polymer Demand

Section Title Area

Slide Title Area







0

50

100

150

200

PS PET PVC PP PET

Dem

and

, Th

ou

san

d M

etri

c To

ns

2019 2025 2030

PS will be the most impacted by various

legislations and corporate initiatives

Polystyrene is difficult to recycle

Ban on single-use products in EU targets many

PS-based products

Slow demand growth 1.9% per annum

Robust growth for PET and PVC but strong

recyclates penetration anticipated

PET recycling technology well developed

Bottle collection targets to facilitate production of

recycled PET (r-PET)

Robust PVC growth ( ~3.4%) driven by long term

application in construction sector

PE and PP to grow at rates exceeding 3.9%

PE and PP very versatile and relatively easy to

recycle

Plastic bags ban impact on LDPE demand

mitigated by demand for reusable HDPE plastic

bags

Global demand for key polymers will continue to grow,

but rates will be impacted by polymer recyclability to some extent


Global Polymer Demand, Nexant forecasts

Insert India slides

- Current recycling

rates, the issues and

challenges with it

Section Title Area

Slide Title Area







Developments in waste plastic collection

and recycling technologies will allow for

greater recyclate penetration

rPE market to grow at 8-9% p.a. supported

by legislation and strong waste collection

and sorting infrastructure

rPET has high penetration in W. Europe

(~30%). Recycling rates expected to grow

with increased bottle collection rates

Developments in recycling technology to

improve recyclability of common plastic

items

Further legislation and corporate efforts will

help reduce use of non-recyclable plastics

Current lack of legislation at federal level is

hindering recyclate penetration in the U.S.

Low virgin resin prices due to current

oversupply following shale gas

Demand for virgin polymers is expected to continue to grow, but the

penetration of recyclates will impact growth rates

12 Elite Petrochem Conference 20 June 2019

Demand for virgin polymers is expected to continue to grow, but recyclates

will make up a growing proportion of total polymer demand

Notes: Demand figures do not include the impact of legislations passed this year, e.g. EU’s ban on single-use plastics. Polymers included in analysis: PET, LDPE, LLDPE, HDPE, PP and PVC

8% 10% 11% 15% 20%

25%

0

25

50

2019 2025 2030 2019 2025 2030

United States Western Europe

Dem

and

(Mt)

Recyclates Virgin Polymer

Forecast Recyclate Penetration Nexant forecasts

Section Title Area

Slide Title Area







Recycling options depend on the quality of the source material,

and the products decrease in value with declining quality of feeds


Primary

Recycling

Secondary

Recycling

Tertiary

Recycling

Quaternary

Recycling

Post-industrial and post-consumer waste streams are processed into

products with similar or decreased properties compared to the original

application, as they are subject to higher contamination

To recover the energy content of post-industrial and post-consumer waste by

incineration (WTE) or gasification, often considered resource recovery rather

than part of recycling technologies

Production of fuels, basic chemicals, and/or monomers by thermal or

chemical conversion of post-industrial and post-consumer plastic waste.

Pyrolysis and chemolysis are examples

Industrial and manufacturing scrap (pre-consumer) is re-melted and reused

(maintaining high quality). This remolding of fairly uncontaminated in-house

scrap has been intrinsic to plastics conversion for some time

Primary

Recycling

Secondary

Recycling

Tertiary

Recycling

Quaternary

Recycling

Feedstock/Waste

Stream Flexibility

& Quality

Size of

Processing

Plants

Cost of

Processing

Waste

Environmental

Issues

Section Title Area

Slide Title Area







PET, PP and HDPE are commonly recycled plastics, while PVC, LDPE

and PS recycling is more challenging and occurs on a smaller scale


Common Applications Ease of Recycling Recycle Products

PET Plastic bottles, food packaging Easy Fibres, bottles

HDPE Milk cartons, shampoo bottles, plastic

bins, cleaning products Easy

Cartons, bins, pallets,

garden furniture, pipes

PVC Pipe fittings, window fittings, car parts,

food trays, food packaging Moderate/Difficult Pipes, packaging

LDPE Shopping bags, foils Moderate Shopping bags, bin liners,

plastic furniture

PP Tupperware, bottle caps, toys, bumpers,

luggage, carpet fibres and filaments Easy Clothing fibres, car parts

PS Takeaway boxes, plastic cutlery,

protective packaging, toys, insulation Difficult Packaging

Other Crisp packets, salad bags, baby bottles,

CDs Very difficult N/A

Section Title Area

Slide Title Area







Not the first choice for the production of recyclate used in products that come

in direct contact with food (the properties of the recyclate must be close to

those of the virgin material)

After limited lifecycles, some plastics cannot be recycled further. They end up

in the landfills eventually

Mixed plastic waste streams are difficult to separate or there are no

economic uses for the individual components. Sorting equipment is

expensive

Hard to get rid of contamination such as food material, for e.g. in the clam

shells.

Some of the challenges with mechanical recycling


Chemical Recycling

Section Title Area

Slide Title Area







Chemical recycling involves the production

of fuels, basic chemicals, and/or monomers

from plastic waste.

These are higher value items than

generating plastic flakes for fabrication

through mechanical recycling

It provides a means to extract value from so-

called difficult to recycle plastics such PS

Chemical recycling has been viewed as a

way to increase the content of recycled

material in food-contact packaging.

Chemical recycling is applicable to

condensation and addition polymers, as well

as mixed streams

The best process will depend on the

characteristics of the waste stream and the

target product(s)

Global Polymer Consumption by Type

The alternative, chemical recycling, handles plastics that are

considered hard to recycle

17 Elite Petrochem Conference

Based on global polymer consumption, PET,

polyethylene, and polypropylene account for

almost 80% and have been the targets of recent

chemical recycling activity

PET 30%

PET 26%

PP 21%

PVC 14%

PS/EPS 5%

Other 4%

Section Title Area

Slide Title Area







A challenge with mechanical recycling is that additives to bottle resin, such

as colorants, barrier materials such as nylon, and other chemicals are not

removed.

PET Chemical Recycling produces monomers such as bis HET, PTA, and DMT

depending on the recycling process. These can be converted back into PET

PET can be chemically recycled into monomers


Recycling

Process Product

Qualitative Plant

Cost

Economically Competitive

Scale

Methanolysis DMT High Large plants

Glycolysis Bis HET Medium - low Small plants/batch reactor

Hydrolysis PTA and MEG Highest Large plants

Section Title Area

Slide Title Area







PS disposal in landfills is problematic: bulky and friable nature, compacting

is, shredding releases trapped blowing agents into the atmosphere

Mechanical recycling of EPS is difficult – hard to reprocess due to low

density, can be contaminated with food, and the release of carcinogens to the

environment.

PS depolymerizes easily into styrene monomers through pyrolysis easily

About 60 – 65% of Styrene can be recovered in thermal cracking process

Polystyrene can be depolymerized into styrene monomers


Section Title Area

Slide Title Area







Mixed plastics (mainly PE, & PP; PS, PVC, others) are the targets of plastics to fuel

and feedstock (PTF) pyrolysis technologies.

New technologies focus has shifted from the production of diesel to naphtha, recently.

Pyrolysis facilities are more versatile in the variety of feedstocks they can use

compared to depolymerization plants

Typical conversion rates for PTF are: PS 80-85%, PP 50-60%, PVC 30%, PET 30%,

HDPE (data n/a)

Mixed plastics streams can be chemically recycled


Plastic Feedstock Type and Pyrolysis Product Type (Source: American Chemistry Council)

Plastics to Fuel Conversion Rates (Source: American Chemistry Council)

Plastic Resin Conversion Rate, Plastics to Fuels Plants

PET 30% (not preferred feedstock)

PVC 30% (not preferred feedstock)

PS 80 to 85%

PP 50 to 60%

HDPE Data not available, but preferred feedstock

Plastic Feedstock

Type Pyrolysis Product Type Comments

PE, PP, PS, PMMA Liquid hydrocarbons Most commonly used feedstock in PTF

plants

ABS Liquid hydrocarbons Not preferred as feedstock as nitrogen-

containing fuel produced

PET Solid products Formation of benzoic acid and terephthalic

acid

PU, Phenol Resin Carbonaceous products Not preferred as feedstock

PVC Hydrogen chloride and carbonaceous

products

Not preferred as feedstock

Section Title Area

Slide Title Area







Development Stage # Technology Holders/Producers

Typical Capital

Investment & Plant

Size

PET Recycling Mostly Demo Scale About 50

28,000 tpy

$32 M (2019)

PS Recycling Mostly Pilot. Still

developing

About 10

15,000 tpy

$16 M (2019)

Plastics to

Fuel

Mostly Demo/

Commercial Scale

About 20

21,000 tpy

$51M (2019)

There are many companies in the chemical recycling industry


Section Title Area

Slide Title Area







Currently not economically competitive with conventional processes due to

small plant sizes

Reliable and sufficient supply – in developed countries, this relates to

increasing collection rates, while in developing countries, it relates to

developing infrastructure and developing collection systems

Regulatory and permitting rules hurdles have to be crossed

Project development/timeline is long-term, requiring secure feedstock,

permits, financing, and off-take agreements

Many of the major players, especially for mixed plastics to fuels and feedstocks,

have made little announced progress over the past two years and for even longer

periods

There are challenges associated with chemical recycling too


Section Title Area

Slide Title Area







No sophisticated method exists for waste collection or segregation.

Waste segregation ( of PET bottles, LDPE films etc.) is carried out by rag pickers at

the open dumps/landfills/oceans

No system of segregation at the source level (household, commercial) exists in

India.

Community bin collection is variously practiced in India by civic bodies. But these

bins are neither properly designed as per requirements and quantity nor are they

placed at proper places

India’s major challenge is collection and segregation of waste


Chemical Recycling of mixed waste streams is a potential solution to the lack of

sophisticated segregation infrastructure. PET bottles are heavily collected and

recycled already. Chemical recycling of PET bottles is another option to produce

higher valued items.

Section Title Area

Slide Title Area







If the identified issues with

chemical recycling are addressed,

then chemical recycling has the

potential to have a significant

impact on the end-of-life plastics

stream.

Chemical recycling will

complement conventional

mechanical recycling and there

will always be a need for both.

Overall, chemical recycling is part

of the solution (although not the

only one) to reducing plastics

waste and can help solve the

circular economy dilemma

Conclusion


Nexant’s Special Report Sorting Through Plastic Waste – Is Chemical Recycling a Solution ?

(published October 2019)

Section Title Area

Slide Title Area







This report provides a screening of selected chemical recycling

technologies that target the largest/most difficult waste streams

The report includes:

- An overview of conventional technologies for the production of key virgin polymers

- Recycling technologies for each key polymer is compared (e.g. benefits and drawbacks of

mechanical versus chemical recycling)

- Developed economics of chemical recycling technologies. Analyzed the delivered cost

competitiveness for exporting recycled PET and PS to China

- Examined the MSW stream and provided economics for the incineration of waste with energy

recovery

- A high level profile of selected recycling technology developers is provided, including

process description, key features, and development status

- Screening of the corresponding technologies is developed using parameters (on a best

efforts basis) such as CO2 emissions, capital investment, operating costs, type of feed, plant

size, commercial status, product range/quality, etc.

26 Elite Petrochem Conference

Company A B C D

CO2 Emissions Score 1/5 2/5 3/5 4/5

Development Status Score 2/5 3/5 5/5 1/5

Capital Investment Score 5/5 2/5 4/5 1/5

Additional Criteria Score 2/5 5/5 3/5 2/5

Final Score 10/20 12/20 15/20 8/20

Questions?

Section Title Area

Slide Title Area







Thank you!


44 S Broadway

White Plains NY 10601

T: +914 609 0320

E. [email protected]

Energy & Chemicals Advisory

Priyanka Khemka

Consultant

Nexant, Inc.

San Francisco

New York

Houston

Washington

London

Bahrain

Bangkok

Shanghai

Kuala Lumpur

www.nexant.com

1 King’s Arms Yard,

London, EC2R 7AF

Telephone: +44 20 7950 1600

Facsimile: +44 20 7950 1550

www.nexant.com

“This presentation was prepared by Nexant Limited (“Nexant”). Except where specifically stated otherwise

in the presentation, the information contained herein was prepared on the basis of information that is

publicly available and has not been independently verified or otherwise examined to determine its

accuracy, completeness or financial feasibility. Neither NEXANT, nor any person acting on behalf of

NEXANT assumes any liabilities with respect to the use of or for damages resulting from the use of any

information contained in this presentation. NEXANT does not represent or warrant that any assumed

conditions will come to pass.

This presentation is integral and must be read in its entirety.

The presentation is given on the understanding that the recipient will maintain the contents confidential

except for internal use. The presentation should not be reproduced, distributed or used without first

obtaining prior written consent by NEXANT. This presentation may not be relied upon by others.

This notice must accompany every copy of this presentation.”

Documents

Is Chemical Recycling a Solution?€¦ · WTWE 14% Incineration The ideal circular economy will greatly reduce the amount of virgin feedstocks we use Source: Adapted from the Ellen