ICIS Launches Pyrolysis Oil Pricing Indexes for Chemical Recycling

Source: www.gulfoilandgas.com 10/3/2023, Location: Europe

ICIS, a global source of commodity intelligence, is proud to announce the launch of its Pyrolysis Oil Pricing Indexes, to help satisfy the increasing consumer demand for the pricing of chemical recycling outputs. ICIS is the first market player to provide this pricing index, which will be part of ICIS' Mixed Plastic Waste – Europe pricing report launched in 2021, now ICIS Mixed Plastic Waste and Pyrolysis Oil report.

The mixed plastic waste pricing service currently includes the key feedstocks for pyrolysis oil - mixed polyolefin bales and high plastic content refuse derived fuel bales. The introduction of a pricing index for pyrolysis oil itself will give unrivalled visibility across this key chemical recycling chain. This sits alongside ICIS' comprehensive coverage of mechanical recycling markets, allowing players to directly compare chemical and mechanical recycling prices and dynamics for the first time.

Pyrolysis oil is used as a drop-in alternative to replace fossil-based naphtha, a flammable liquid hydrocarbon used in the steam cracking process to create plastics, making plastic production more circular.

Consumer and investor pressures along with increasing regulation are driving the chemical industry's transition to a circular economy. This in turn is driving the development of chemical recycling and in particular the pyrolysis oil market is starting to scale as the largest current output of chemical recycling.

As of September 2023, pyrolysis-based plants targeting mixed plastic waste (with a focus on polyolefins) as feedstock account for ~60% of all operating chemical recycling capacity in Europe according to ICIS Recycling Supply Tracker – Chemicalhttps://www.icis.com/explore/services/recycling-supply-tracker-chemical/?intcmp=commodities-mixed-plastic-waste_services-tracker-chemical. The total capacity for such projects in Europe is expected to become almost 7 times larger by 2028 growing to ~600,000 tonnes/year, based on the projects considered as the final investment decision (FID). Moreover, if the pre-FID project pipeline is unlocked, then the total pyrolysis capacity targeting mixed plastic waste can reach as much as ~1.7 million tonnes/year by 2028.

Mark Victory, Senior Editor, Recycling at ICIS says: "The pressure to transition to a circular economy will continue to intensify and we can see how that has impacted the chemical recycling market and in particular the pyrolysis oil market. Despite the negative macroeconomic conditions currently impacting across petrochemical and recycling markets, investment in chemical recycling has continued at pace."

Pyrolysis oil prices do not track their virgin equivalents, meaning that this key emerging market has lacked reliable, independent price indicators to benchmark against. ICIS' Pyrolysis Oil Pricing Index will enable buyers and sellers to assess the overall opportunities in chemical recycling market with transparency and clarity.

"The addition of the new price series gives comprehensive coverage across the chain and compliments ICIS' existing chemical and mechanical recycling supply trackers, alongside mechanical recycling price benchmarks, analytics and consultancy services. This gives customers a full suite of tools to compare and track the development of the various routes to circularity," concluded Victory at ICIS.

For the polyethylene (PE) and polypropylene (PP) sectors, chemical recycling is seen by many as the most viable route to achieving mass-scale recycled food-contact packaging within Europe. ICIS' introduction of pyrolysis oil pricing will bring significant clarity enabling customers to trade more effectively in a sector anticipated to experience remarkable growth in the years ahead.

Australia >>  12/8/2023 - The Directors of the Company provide a notice for the purposes of section 708A(5)(e) of the Corporations Act 2001.

The Company has issued a...

Bermuda >>  12/8/2023 - The board of directors in Borr Drilling Limited (the “Company”) has approved a share repurchase program for the Company’s shares, to be purchased in t...

Brazil >>  12/8/2023 - PRIO S.A. ("Company" or "PRIO") informs its shareholders and the market in general that, at a meeting of the Board of Directors held on this date, the...
New Caledonia >>  12/8/2023 - IFC, a member of the World Bank Group, issued a new Kauri bond, raising 500 million New Zealand dollars to support private businesses and help create ...

Norway >>  12/8/2023 - Reference is made to the BlueNord ASA’s (“BlueNord” or the “Company”) convertible bond loan with ISIN NO0010851520 (the “BNOR13 Bonds”).


United Kingdom >>  12/8/2023 - Greencoat UK Wind PLC (the "Company" or "UKW") announces that, in accordance with the terms of its share buyback programme (the "Programme") announced...

Gulf Oil and Gas
Copyright © 2023 ICT All rights reserved. - Terms of Service - Privacy Policy.