KUALA LMPUR, November 12 – Petronas Chemicals Group Berhad (PCG) has officially given the green light for the construction of what will become Asia’s largest advanced chemical recycling plant, a visionary project with a production capacity of 33 kilo-tonnes per annum (ktpa). This groundbreaking facility, located in Pengerang, Johor, is slated to commence operations in the first half of 2026. The milestone announcement included the formalization of a Technology License Agreement (TLA) between a subsidiary of PCG and Plastic Energy Limited (Plastic Energy), and the awarding of the Engineering, Procurement, and Construction (EPC) contract to Mutiara Etnik Sdn. Bhd.
In line with PCG’s New Plastics Economy agenda, which champions the transition to a circular economy and a sustainable plastics ecosystem, the plant will serve as a catalyst in Malaysia for chemical recycling of plastics waste. It will convert end-of-life plastics into pyrolysis oil, known as TACOIL™, a versatile chemical feedstock for the production of sustainable plastics. Ir. Mohd Yusri Mohamed Yusof, Managing Director and Chief Executive Officer of PCG, shared his vision for this advanced chemical recycling plant, saying, Through the advanced chemical recycling plant, we envision driving innovation across the plastics value chain while creating opportunities for all parties, from waste collectors to manufacturers, to jointly contribute to the circular plastics economy.
This enables us to propel the nation’s aspiration in phasing out single-use plastics, in line with Malaysia’s Plastic Sustainability Roadmap 2021-2030, while fulfilling the growing demand from major brands for sustainable packaging. The technology driving this ambitious endeavor is the brainchild of Plastic Energy, which will provide its patented TAC™ process. This innovative process involves heating mixed post-consumer plastic waste in the absence of oxygen, yielding hydrocarbon vapors that can be condensed into pyrolysis oil or TACOIL™. This substance can then be used as a substitute for hydrocarbon feedstock in the production of food-grade recycled plastics.
Carlos Monreal, Chief Executive Officer of Plastic Energy, expressed enthusiasm for the partnership, stating, “After starting our collaboration with PCG back in 2019, we are pleased to be chosen as the technology provider for their new chemical recycling plant in Malaysia. Together we share a common goal to reduce plastic pollution in Asia by increasing the amount of plastic waste that can be recycled and expanding recycling infrastructure in the region.”
Datuk Surendran Menon, Managing Director of Mutiara Etnik, the EPC partner for this project, echoed the excitement, emphasizing their commitment to excellence in delivering a plant that aligns with PCG’s expectations. The advanced chemical recycling plant aspires to not only close the loop in the plastics life cycle but also nurture an ecosystem that promotes the transition to a circular economy within Malaysia’s plastics value chain. It’s a monumental step toward sustainable practices and reducing plastic pollution in Asia.
