Recon Technology has finished building a 40,000 tonnes pyrolysis plant in Shandong, China.

The China-based oil and gas company said it attached the highest structural feature to the plant’s main manufacturing unit.  

The project has now entered the equipment installation and commissioning phase, with production expected to begin in December 2025.

In 2023, Recon announces plans to move into the plastics chemical recycling business. According to the company, data has shown that the market space for chemical recycling of waste plastics is huge, with an annual new market potential estimated at tens of billions of dollars and a market potential of hundreds of billion dollars.

Recon has invested over $15 million in the Shandong project to date.

The plant will include six pyrolysis units, two distillation units, and corresponding environmental protection facilities. The project is expected to produce 30,000 tons of plastic pyrolysis oil and 6,000 tons of carbon residue annually, generating an estimated $30 million in annual returns. It will use waste plastic film as the main feedstock.

The plant will deploy a dual-process approach combining catalytic pyrolysis and catalytic reforming. Catalytic reforming will increase the olefin content of the pyrolysis oil, substantially enhancing its value and competitiveness in the market, Recon said in a statement.

Recon’s process uses a horizontal screw-type three-stage continuous reactor. This is supposed to address the technical challenge of coking in standard furnaces. When plastic turns into coke and sticks to the walls of the furnace, the required temperature for pyrolysis may not be reached, resulting in reduced production and safety issues.  

Recon is currently in offtake agreement discussions with several multinational chemical giants and leading domestic chemical companies. The company has signed purchase intent and strategic cooperation agreements to jointly explore the applications of its pyrolysis oil.

“We are delighted to announce the successful completion of the main structures of the Shandong project, which marks an important milestone in its construction,” said Yin Shenping, CEO of Recon. “During 2025, our primary objective is to ensure the project’s smooth commissioning and stable production of products that meet stringent standards. We will spare no effort to transform the Shandong Recon plant into a globally leading benchmark facility for the stable and continuous production of plastic chemical recycling. The plastic pyrolysis oil produced here will serve as high-quality, sustainable chemical feedstock for large-scale chemical plants and consumer goods companies both domestically and internationally. We are also striving to meet international certification requirements such as ISCC (International Sustainability and Carbon Certification),” Yin added.

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Source: Sustainable Plastics