The Australian company behind a plastics-to-oil machine has reached an agreement with Neste, one of the world’s largest oil refining companies, to work together to use waste plastics as a fuel stock.
Earlier this year, Renew ELP announced that its patented machine, the Catalytic Hydrothermal Reactor (Cat-HTR), will be coming to the UK and will be operational by the end of 2019, at a site at the Wilton Centre, Teeside (see letsrecycle.com story).
Now, the company has signed a memorandum of Understanding with Finnish company Neste, which will see both companies work together to “capitalise on the value” in waste plastic as a raw material feedstock for the production of liquid hydrocarbons, chemicals and virgin plastics.
Neste has publicly set a target of processing more than one million tonnes of waste plastic as a raw material in its refineries globally by 2030.
The agreement between the two parties has followed months of talks and is expected to pave the way for a longer term link-up between the organisations.
It’s also believed that any future agreement with Neste, will see the oil produced in the UK shipped abroad and used in refineries in Finland. The company said it is in discussions with waste management companies in the UK for plastic feedstock, and may potentially strike deals with local authorities.
Commenting on the partnership, Richard Daley, managing director of ReNew ELP, said: “This partnership will enable both companies to leverage our combined expertise to improve sustainable operations and turn end-of-life plastic waste into valuable resources.”
Mr Daley added: “Neste has a deserved reputation as one of the most sustainable companies in the world. As a global leader in the production of sustainable, high quality, low carbon products, they are the ideal partner for ReNew ELP as we move towards the start of construction for our first commercial plant towards the end of this year.”
ReNew ELP is building the first commercial scale Cat-HTR plant at the Wilton International Site in Teesside to recycle end-of-life plastics, which the company has said remains on track to be completed within its original timescale.
The plant will initially recycle 20,000 tonnes of end-of-life plastic per annum but ReNew ELP has planning consent for a further three units, with a potential total processing capacity of 80,000 tonnes per annum.
ReNew ELP’s patented Catalytic Hydrothermal Reactor (Cat-HTR) technology was developed by Australian company Licella over the past 10 years and has already been extensively tested at a pilot plant in Australia.
It uses water at high pressure to chemically recycle a wide range of feedstocks back into a biocrude oil, which can be sold on as a crude oil replacement.