seeing green

Global chemicals co. with Houston HQ to build industrial-scale recycling plant in Germany

LYB is building its first industrial-scale catalytic advanced recycling demonstration plant at its site in Germany. Photo via lyondellbasell.com

This month, LyondellBasell has announced it has officially pulled the trigger on a new recycling plant in Germany.

Dutch chemicals leader LYB, as the company has rebranded recently, has made its final investment decision to build its first industrial-scale catalytic advanced recycling demonstration plant at its site in Wesseling, Germany.

The project is reported to be the first "commercial scale, single-train advanced recycling plant to convert post-consumer plastic waste into feedstock for production of new plastic materials that can be ran at net zero GHG emissions," per LYB's news release.

The plant will utilize LYB's MoReTec technology, which targets difficult to recycle plastics like mixed or flexible materials, and have an annual capacity of 50,000 tonnes per year. The amount expected to be recycled annually will equal plastic packaging waste generated by over 1.2 million German citizens per year.

"We are committed to addressing the global challenge of plastic waste and advancing a circular economy, and today's announcement is another meaningful step in that direction," says Peter Vanacker, LYB CEO, in the release. "Scaling up our catalytic advanced recycling technology will allow us to return larger volumes of plastic waste back into the value chain. By doing this, we will have the ability to produce more materials for high-quality applications, retaining value of plastics for as long as possible."

The plant's construction is anticipated to be done by the end of 2025. The majority of the sorted processed feedstock will be supplied by Source One Plastics, a joint venture of LYB and 23 Oaks Investments that formed in October 2022.

A few weeks ago, LYB purchased a 25 percent stake in a joint venture that seeks to accelerate advancements in plastic recycling. The joint venture, Cyclyx International, was formed in 2020 by Spring-based energy giant ExxonMobil and Tigard, Oregon-based plastic recycling innovator Agilyx.

In 2022, Cyclyx announced it had inked a deal with ExxonMobil and LyondellBasell to develop a first-of-its-kind plastic waste sorting and processing plant in the Houston area. The estimated $100 million facility, set to open in 2024, is poised to annually produce 330 million pounds of plastic feedstock, which is made up of recycled materials that can be used to manufacture new plastics.

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A View From HETI

Vicki Hollub, president and CEO of Occidental, said the company's Stratos DAC project is on track to begin capturing CO2 later this year. Photo via 1pointfive.com

Houston-based Occidental Petroleum is gearing up to start removing CO2 from the atmosphere at its $1.3 billion direct air capture (DAC) project in the Midland-Odessa area.

Vicki Hollub, president and CEO of Occidental, said during the company’s recent second-quarter earnings call that the Stratos project — being developed by carbon capture and sequestration subsidiary 1PointFive — is on track to begin capturing CO2 later this year.

“We are immensely proud of the achievements to date and the exceptional record of safety performance as we advance towards commercial startup,” Hollub said of Stratos.

Carbon dioxide captured by Stratos will be stored underground or be used for enhanced oil recovery.

Oxy says Stratos is the world’s largest DAC facility. It’s designed to pull 500,000 metric tons of carbon dioxide from the air and either store it underground or use it for enhanced oil recovery. Enhanced oil recovery extracts oil from unproductive reservoirs.

Most of the carbon credits that’ll be generated by Stratos through 2030 have already been sold to organizations such as Airbus, AT&T, All Nippon Airways, Amazon, the Houston Astros, the Houston Texans, JPMorgan, Microsoft, Palo Alto Networks and TD Bank.

The infrastructure business of investment manager BlackRock has pumped $550 million into Stratos through a joint venture with 1PointFive.

As it gears up to kick off operations at Stratos, Occidental is also in talks with XRG, the energy investment arm of the United Arab Emirates-owned Abu Dhabi National Oil Co., to form a joint venture for the development of a DAC facility in South Texas. Occidental has been awarded up to $650 million from the U.S. Department of Energy to build the South Texas DAC hub.

The South Texas project, to be located on the storied King Ranch, will be close to industrial facilities and energy infrastructure along the Gulf Coast. Initially, the roughly 165-square-mile site is expected to capture 500,000 metric tons of carbon dioxide per year, with the potential to store up to 3 billion metric tons of CO2 per year.

“We believe that carbon capture and DAC, in particular, will be instrumental in shaping the future energy landscape,” Hollub said.

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