Austrian chemical company Borealis continues to weigh up the technology pathways for expanding pyrolysis chemical recycling capacity. A plan to build a plant in Stenungsund, Sweden, was put on hold earlier this year, and the company might opt for a different location altogether.
The Stenungsund project has yet to get past the feasibility stage as it had "not yet met the performance requirements expected". The company said earlier this year that it was evaluating different technology options for the site, including the Blue Alp pyrolysis process in use at its majority-owned Renasci plant in Ostende, Belgium, and parent company OMV's ReOil technology, which is to be deployed at small commercial scale in Schwechat, Austria, this year.
Borealis vice-president of circular economy Mirjam Mayer told Argus at PRSE that the chemical recycling investment environment has become more challenging: "A lot of projects across the industry have been delayed... with capital expenditure increases seen recently."
But she said Borealis remained committed to adding chemical recycling capacity and was looking at investment options. These could include new technologies or different locations, Mayer said, noting that there was "greater flexibility for chemical recycling scope in the Nordic area".
Stenungsund was initially due to start up this year, providing recycled feedstock to count towards Borealis' target of producing 600,000 t/yr of recycled and bio-based polymers by 2025. Mayer said the company is still committed to its goal, but acknowledged it could be challenging in current market conditions.
In the last few years Borealis has acquired both chemical and mechanical recyclers and Mayer said Borealis was "still open to mergers and acquisition opportunities, as long as they made sense, but a starting point going forward would be to expand on opportunities from recently bought companies, including Rialti, Renasci and Integra Plastics".
"We have made some good progress, especially with acquisitions in the last year or so, and there seems to have been a real step change in the last year... with current capacity of around 200,000 t/yr [for these products]," Mayer added.
Rising costs, including new projects' capital expenditure requirements and energy prices, have checked progress in recent years, Mayer said, as has competition from cheap virgin material.
Meyer also said EU Packaging and Packaging Waste (PPWR) regulations have bought "clarity and security" to the industry for 2030, but that volatile energy costs might contribute to weak market conditions in the short term. "Regulatory support, like PPWR is something we need to make progress and make these targets a reality," she said.
Some companies have announced closures or strategic reviews of European petrochemical assets in recent months, highlighting the challenge facing the industry, but Mayer said Borealis feels it is in a better position in Europe as it covers "a specialty segment which is valued by customers and sells products that actively support the energy transition". This includes its focus on building a portfolio of sustainable products, including its Borcycle-M mechanically recycled polymer range and Borcycle-C chemically-recycled product line, she said. Borealis recently achieved US Food and Drug Administration approval for some Borcycle-M grades, which Mayer called a "very important step" in being able to take recyclates to a wide variety of consumer applications, including cosmetic, personal care and dry food packaging applications.
