Overview

Taiyo Oil and Mitsui Chemicals have embarked on a strategic study aimed at expanding the availability of chemically recycled products. This initiative is rooted in the broader goal of advancing a circular economy, reducing reliance on virgin fossil feedstocks, and repurposing waste materials that would otherwise end up in landfills or incineration.

At the heart of this collaboration is pyrolysis oil—a liquid derived from waste plastics that can be converted into valuable feedstocks such as naphtha and propylene. These feedstocks can then re-enter the chemical value chain, enabling the production of sustainable plastics and chemicals. Chemically Recycled

Certification and Infrastructure

Taiyo Oil has taken significant steps to validate and scale its recycling capabilities. In June 2025, its Shikoku Operations site achieved ISCC PLUS certification, followed by certification at its corporate headquarters in July 2025. ISCC PLUS is a globally recognized
certification system that verifies sustainable raw materials and traceability
throughout the supply chain.

With certification in place, Taiyo Oil is constructing new facilities capable of handling pyrolysis oil. By leveraging its existing refinery infrastructure, the company aims to process pyrolysis-derived fractions more efficiently and at larger scale. This development strengthens its role in supporting chemical recycling in Japan and beyond.

Mitsui Chemicals’ Initiatives

Mitsui Chemicals has been an early mover in adopting alternative feedstocks to lower its environmental footprint. Since December 2021, the company has integrated bio-based hydrocarbons into its Osaka Works cracker, a facility critical to producing core petrochemical building blocks.

Building on this foundation, Mitsui Chemicals began using pyrolysis oil derived from waste plastics in March 2024. This feedstock was sourced from CFP CORPORATION and used to manufacture chemically recycled plastics and chemicals. By incorporating these materials, Mitsui Chemicals is helping create demand for recycled resources while cutting greenhouse gas emissions. Chemically Recycled

Study Objectives

The joint study focuses on how Taiyo Oil’s Shikoku Operations can process the heavier fractions of pyrolysis oil—a task that poses challenges for Mitsui Chemicals’ existing crackers. If successful, this would allow a greater proportion of waste plastics to be converted into usable hydrocarbons, further closing the loop in the recycling process.

The products generated from this process—chemically recycled naphtha, propylene, and others—will be supplied to Mitsui Chemicals for downstream use in plastics and chemical manufacturing. In addition, both companies are exploring ways to diversify waste plastic feedstocks and increase the supply of bio-based products to ensure long-term sustainability.

Broader Impact on the Circular Economy

The collaboration between Taiyo Oil and Mitsui Chemicals highlights a growing recognition of the importance of circular economy principles in the chemical industry.

By treating waste plastics as resources rather than liabilities, the two companies are contributing to a system where materials can circulate repeatedly without diminishing in value. Chemically Recycled

“This project underscores the industry’s shift toward a more resource-efficient, low-carbon future where recycling and renewables play central roles.”

Such initiatives also align with Japan’s national climate strategies and international sustainability frameworks, which emphasize reducing dependence on fossil resources and achieving carbon neutrality.

Future Outlook

Looking ahead, the collaboration could serve as a blueprint for how oil refineries and chemical producers can partner to accelerate recycling technologies. Scaling up pyrolysis oil processing and integrating it into mainstream petrochemical operations may enable industries to meet both regulatory requirements and consumer expectations for sustainable products. Chemically Recycled

Success will depend on addressing technical hurdles, ensuring economicfeasibility , and maintaining transparency across the supply chain. Certification systems like ISCC PLUS will play a key role in building trustamong stakeholders, from businesses to consumers and policymakers.

Key Takeaways

• Taiyo Oil achieved ISCC PLUS certification at two sites in 2025.
• Mitsui Chemicals has been using bio-based hydrocarbons since 2021 and pyrolysis oil since 2024.
• The study aims to process heavy fractions of pyrolysis oil at Taiyo Oil’s Shikoku Operations.
• Resulting products like naphtha and propylene will be supplied to Mitsui Chemicals.
• Both companies are working to expand waste plastic feedstocks and bio-based product supply. Chemically Recycled

Overview of the Deal

Indorama Ventures, through its subsidiary Indorama Ventures Recycling Netherlands, has completed the sale of its Irish PET recycling plant in Mullagh to UK-based UG World.
This transaction ensures that the facility, previously at risk of closure, will continue operations, avoiding layoffs and preserving local recycling capacity. Chemically Recycled

The plant, which specializes in converting post-consumer plastic waste into polyester fiber, boasts an annual processing capacity of 80,000 tons.
The sale is a relief to employees, the local community, and the recycling industry in Europe.

Background on Wellman International

The Mullagh site has a long history in recycling and sustainable production. Originally acquired by Indorama in 2011, it was integrated into the company’s global recycling network under the management of Wellman International Ltd. Chemically Recycled

The plant’s core activity has been processing PET waste into fibers for use in textiles, automotive materials, and packaging applications. Its contribution to the circular economy has been recognized both locally and internationally.

Financial Struggles Leading to the Sale

Despite its important role, the plant faced severe financial challenges over the past two years. Rising energy costs, largely influenced by geopolitical conflicts, placed enormous strain on operations.

At the same time, competition from low-cost PET fiber imports from regions like China, Africa, and the Middle East intensified. These pressures led to operating losses in the tens of millions, forcing Wellman International Ltd. to file for receivership in July of last year.

Receivership, under the oversight of the Irish High Court, allowed the company time to restructure and seek new ownership. The ultimate goal was to safeguard the site’s future and protect jobs. Chemically Recycled

UG World: The New Investor

The buyer, UG World, is a UK-based company with a growing presence in the recycling and sustainable materials market. By acquiring the Mullagh site, UG World signals its commitment to strengthening its European operations and expanding its recycling portfolio.

This move also demonstrates investor confidence in the long-term value of PET recycling, despite current challenges in global energy markets and competitive pressures.

Impact on Jobs and Capacity

One of the most immediate benefits of the deal is job preservation. Employees who faced uncertainty over potential layoffs can now look forward to stability under new ownership.

From a capacity standpoint, maintaining the plant’s 80,000-ton-per-year output ensures that Ireland and Europe retain a valuable recycling resource.

Closing the facility would have meant losing significant processing power in the region’s recycling ecosystem. Chemically Recycled

Furthermore, the continuity of operations aligns with the EU’s broader goals of reducing plastic waste and promoting a circular economy.

Future Outlook for the Recycling Sector

The sale of the Mullagh site highlights broader challenges and opportunities in the recycling industry. While rising costs and global competition remain significant obstacles, the demand for recycled PET and circular economy solutions continues to grow.

For Ireland, this transaction secures an important facility that supports both environmental goals and local employment. For UG World, it provides an opportunity to scale operations and demonstrate leadership in sustainable materials. Chemically Recycled

The deal also signals that, even in difficult conditions, strategic investors see value in recycling infrastructure. As governments and corporations increase commitments to sustainability, such facilities will play a critical role in meeting demand for recycled content.

Introduction

Republic Services, Inc. is making strides in sustainable packaging by producing recycled plastic flake at its Las Vegas Polymer Center. This bottle-grade, clear rPET flake offers a significantly lower carbon footprint compared to both representative recycled PET (rPET) and virgin PET used in the U.S. market. Chemically Recycled

A recently completed product carbon footprint (PCF) study confirms the environmental advantages of Republic Services’ rPET, positioning it as a key solution for companies aiming to decarbonize their supply chains and reduce Scope 3 emissions.

Carbon Footprint Study

The independent cradle-to-gate PCF study analyzed rPET flake produced at the Las Vegas Polymer Center during the first seven months of 2024. The study compared Republic Services’ rPET to representative rPET and virgin PET produced in the U.S. and imported from Asia. Chemically Recycled

Key findings include:

• 54% lower global warming potential compared to representative rPET alternatives
• 82% lower carbon footprint compared to virgin PET

These results highlight the potential of Republic Services’ rPET to support climate goals and reduce the environmental impact of packaging materials.

Polymer Centers and Circularity

Republic Services developed its Polymer Centers to enable bottle-to-bottle circularity and meet growing demand for high-quality recycled plastics. These facilities are designed to process post-consumer plastics collected from curbside recycling programs and convert them into reusable materials for packaging manufacturers. Chemically Recycled

Pete Keller, Vice President of Recycling and Sustainability, stated:

“The rPET flake we produce is not only helping customers meet goals and requirements for recycled content in their packaging, but also helping reduce their environmental impact.”

Production Efficiency

Republic Services operates 75 recycling facilities across North America and performs an average of 5 million recycling and waste pickups daily. Plastics collected from these operations are sent to Polymer Centers for secondary processing. Chemically Recycled

At the Las Vegas Polymer Center, PET is shredded and washed to produce bottle-grade, clear rPET flake. This material is ready for remanufacturing into new beverage bottles, supporting closed-loop recycling systems and reducing reliance on virgin plastic.

Energy Use and Grid Impact

The lower carbon footprint of Republic Services’ rPET flake is largely attributed to the energy efficiency of its patented equipment line. This system uses less electricity and thermal energy per kilogram of flake than conventional mechanical recycling processes.

Additional factors contributing to the reduced footprint include:

• Shared processing with other recovered materials  Chemically Recycled
• Use of a regional utility grid with a lower carbon intensity than the U.S. average
• Avoidance of high-carbon grid mixes typical in Asian markets

Additional Environmental Benefits

The PCF study also identified several unique advantages of Republic Services’ rPET flake:

• Bottle-Grade Quality: Unlike most mechanically recycled rPET, Republic Services’ flake is bottle-grade, enabling true bottle-to-bottle circularity.
• Integrated Supply Chain: Republic Services manages the entire process—from curbside collection to flake production—ensuring traceability and quality control.
• Enhanced Circularity: The Polymer Center process also recovers and recycles non-PET materials that would otherwise be landfilled or incinerated.

These features contribute to a more robust and sustainable recycling ecosystem, reducing waste and maximizing resource recovery. Chemically Recycled

Scaling Capacity Across the U.S.

Republic Services currently operates Polymer Centers in Las Vegas and Indianapolis, with a third facility under construction in Allentown, Pennsylvania. Each center is designed to produce approximately 120 million pounds of bottle-grade recycled plastics annually.

This expansion reflects Republic Services’ commitment to scaling circular solutions and meeting the growing demand for sustainable packaging materials across North America.

Conclusion

Republic Services’ investment in advanced recycling infrastructure and energy-efficient processing is yielding measurable environmental benefits. The Las Vegas Polymer Center’s rPET flake sets a new benchmark for sustainable packaging materials, offering significant reductions in carbon footprint and enabling circularity at scale. Chemically Recycled

As demand for low-carbon, high-quality recycled plastics continues to grow, Republic Services is well-positioned to lead the industry in delivering scalable, impactful solutions that support climate goals and sustainable development.

Summary

Recupero Etico Sostenibile (RES) has received approval from Invitalia to expand its integrated mechanical-chemical recycling project in Pettoranello del Molise. The project involves the construction of a second chemical recycling plant based on pyrolysis technology, consolidating the Molise hub as a national center for advanced plastics treatment and the circular economy.

Investment and Financing

The plan requires a total investment of about €24.6 million. Thanks to the Development Contract approved by MIMIT and managed by Invitalia, around €18.1 million will be provided as public support:

• €8.3 million in non-repayable grants
• €9.8 million in subsidized loans Chemically Recycled

This financial package is part of a wider European and national strategy to fund “Lighthouse projects” under the PNRR, aiming to accelerate the transition toward a more sustainable, circular economy.

Capacity and Technology

The new plant will complement the BlueAlp unit currently under construction at the Molise site. Together, the facilities will be able to process up to 20,000 tons of plastic waste per year.

From the second plant alone, RES expects to produce approximately 16,000 tons of pyrolysis oil annually. While the BlueAlp plant’s capacity is similar, the specific technical features of the new facility have not yet been publicly disclosed. Nevertheless, the adoption of pyrolysis positions RES as a leader in the shift from linear to circular plastic use. Chemically Recycled

Off-take Agreement with Shell

RES has signed a multi-year agreement with Shell Chemicals Europe for the purchase of pyrolysis oil produced at the Pettoranello site. The agreement ensures:

• Guaranteed purchase of the expected annual production starting in 2026
• Optional purchase of additional volumes from the second plant

This contract secures a stable market outlet, an essential condition for the project’s long-term financial sustainability and bankability.

Timeline and Milestones

The second plant will follow the Development Contract schedule, with completion expected by August 31, 2028. Meanwhile, the BlueAlp-based facility is scheduled to start operations in the summer of 2026.

Construction, testing, and commissioning activities are carefully planned to reduce downtime and avoid overlaps between the two plants. Chemically Recycled

Economic and Environmental Impact

Environmental benefits: Pyrolysis allows RES to treat mixed plastic waste streams that cannot be recycled mechanically. These plastics are converted into feedstock for the chemical industry, reducing reliance on landfill and incineration.

Economic benefits: With Shell’s long-term commitment and public funding support, the project becomes more attractive to private investors and financial institutions. This strengthens the entire advanced recycling value chain and boosts Molise’s industrial ecosystem.

Employment and Territory

RES highlights that the expansion will reinforce Pettoranello del Molise’s role in Italy’s circular economy landscape and its integration with the research and development center in Pozzilli. Chemically Recycled

The investment is expected to generate direct and indirect employment opportunities, both during construction and in long-term operations. Local businesses, suppliers, and institutions will benefit from new contracts and partnerships, strengthening the region’s economic resilience.

Next Steps & Contacts

RES will now move forward with implementing the Development Contract, securing the necessary technical and environmental permits. Upcoming steps include:

• Launching tenders for supplies and equipment
• Selecting contractors for construction and installation
• Coordinating with local authorities to ensure compliance and community engagement