SABIC, Saudi Investment Recycling plan chemical recycling plant

Saudi Basic Industries Corp. (SABIC), Riyadh, Saudi Arabia, has signed a memorandum of understanding (MOU) with Saudi Investment Recycling Co. (SIRC), a subsidiary of Saudi Public Investment Fund (PIF), to help SIRC set up its first chemical recycling project to enable the use of recycled plastic feedstock.

According to a news release from SABIC, the MOU, signed at SABIC headquarters, also proposed a feasibility study on building a chemical recycling plant in Saudi Arabia to convert mixed plastics into pyrolysis oil.

“The strategic collaboration will help us in our efforts to contribute to fulfilling the kingdom’s waste management objectives aligned with Saudi Vision 2030,” says Yousef Al-Benyan, SABIC vice chairman and CEO. “This also reinforces the Saudi G20 Presidency’s commitment to Circular Carbon Economy (CCE) ensuring a sustainable future focusing on environment, energy and climate.”

The PIF-owned SIRC aims to use mixed plastic scrap collected from a material recovery facility (MRF) to be used as feedstock to be converted into pyrolysis oil.

“The initiative will play a vital role in contributing to the circular economy of Saudi Arabia, reducing the greenhouse emissions, protecting the environment and creating a sustainable future in Saudi Arabia. We see the right synergy and expertise between SIRC and SABIC to make this massive project a resounding success and a role model initiative in the Middle East,” says Ziyad Al Shiha, chief executive officer of Saudi Investment Recycling Co. “The collaboration with SABIC will give an impetus to our support to the success of various initiatives identified by the kingdom’s Waste Management National Regulatory Framework. It will also help create new opportunities in the waste management sector.”

According to the MOU, SIRC will source, collect, sort and supply feedstock for the chemical recycling facility from municipal solid waste. Both SIRC and SABIC will assess a project feasibility study and the proposed collaboration as part of the MOU. SABIC reports that this MOU is aligned with its Trucircle initiative.

Abdulrahman Saleh Al-Fageeh, executive vice president of petrochemicals at SABIC, says, “We can now clearly foresee a significant role of Saudi Arabia having a tangible part in the Climate Change agenda. The new collaboration will be a milestone toward Saudi Vision 2030. We are very much confident of SIRC’s expertise and role in converting the waste into opportunity.”