Freepoint Eco-Systems has agreed to provide Shell's polymer plant in Pennsylvania with "a steady supply" of pyrolysis oil produced in Hebron, Ohio, from chemically recycled plastic waste.
Under the "landmark agreement", oil will be shipped to Shell's polymer plant in Monaca, Pennsylvania, where it will be used to make plastic, the company said Monday. Shell did not disclose how much supply it agreed to take or for how long.
Freepoint's Hebron plant is still in its commissioning phase, but the company expects to produce up to 130mn lb/yr of pyrolysis oil upon completion later this year.
Pyrolysis uses high heat to break down waste plastic into feedstocks that can be used to make virgin-like plastic material.
Shell said the agreement reflected its commitment to increasing the circularity of plastics in its portfolio.
On 22 April, Freepoint sent its first railcar of pyrolysis oil to Shell's plant in Norco, Louisiana.