Question
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Do you see growing investor interest in processing plastic waste-derived pyrolysis oil through refinery assets, such as hydrocrackers? Against this backdrop, how prepared are refiners to invest in contaminants removal systems (for pretreatment of the pyrolysis oils)?
Feb-2023
Answers
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Michael Allegro, BASF - Refining Catalysts, michael.allegro@basf.com
Advanced plastic recycling is becoming an important part of many long-term refinery strategies. One key consideration is how the legislation will pan out. Will plastics-to-fuel be an economical route, or is full plastics circularity the end goal?
With many refineries configured to maximise transportation fuel products, the yield of plastic precursors on a lb-per-lb basis of waste plastics may not be high enough to meet the circularity targets likely to be mandated. However, if fuels produced from waste plastic oils can qualify for renewable credit, the conversation about utilising refinery assets becomes much more attractive.
Contaminant removal is a major challenge for refiners considering processing plastic pyrolysis oils (pyoils). Aside from the associated Capex, these systems may come with unique maintenance requirements, large plot spaces, high Opex, and new environmental impacts that refineries are not prepared to bring inside their battery limits.Additionally, there is uncertainty about waste availability, which could require refiners to purchase from multiple sources. This can lead to increased variability in pyoil quality, which could make investing in the appropriate contaminant removal systems more complicated.
Feb-2023
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