GLOBAL PLASTIC RECYCLING SET TO REACH $43.5 BN

As plastic manufacturers across the world are actively pursuing circular economy goals, the adoption of plastic is set to rise exponentially over the next few years, industry captains and analysts are saying.

According to a report by Researchandmarkets.com, favourable initiatives to promote the use of recycled plastics in developed countries, growing acceptance of recycled plastics consumption in the textile industry as fibres in developing countries of Asia Pacific, and the costeffective, sophisticated recycling technologies are some of the major factors driving the global recycled plastics market.

Industry analysts are giving a positive outlook for this industry. The global recycled plastics market is projected to grow from $27.9 billion in 2021 to $43.5 billion by 2026, at a CAGR of 9.3% from 2021 to 2026, The Researchandmarkets reports said.

Concerns over the increasing greenhouse gases in the atmosphere along with the growing consumer awareness about environmental sustainability is fueling a boom in the recycled plastics market, SABIC vice president and regional head of South Asia and Australia Janardhanan Ramanujalu says in an interview with S&P Global Commodity Insights while adding that the higher feedstock costs and inconsistency in accreditation remain the biggest hurdle in the largescale adoption plastic recycling technology.

Platts Analytics projects that the combined volume of recycled polyethylene, polypropylene and polyethylene terephthalate produced globally will rise to around 30 million tonnes in 2026 from 20 million tonnes in 2021, and the combined equate to 10% of the virgin demand volume by 2026, up from around 7% in 2021.

“This demand for recycled plastics is supported by advancements in recycling and a stronger awareness of the environmental benefits provided by recycled plastics,” Ramanujalu says.

According to the S&P Global Commodity Insights, the uptrend is being driven by both governments and the corporate sector showing increasing commitment to environmental sustainability driving plastics recycling investment.

However, despite the rapid uptick in production capacity, demand continues to outstrip supply. Feedstock shortages are common, particularly for high-quality bales, lowering conversion yields and capping producer output.

With ever-increasing demand, new feedstock sources will be necessary to sustain the industry’s growth, Ramanujalu said.

Ocean-bound plastics

Ocean-bound plastic (OBP) is used to refer to abandoned plastic waste found in areas up to 50 km inland from waterways that may eventually be washed into the ocean by rainfall, rivers or tides.

Zero Plastic Oceans, a non-governmental organisation dedicated to addressing plastic pollution issues, has estimated that OBP from uncontrolled waste disposal accounts for 80% of marine plastic litter.

According to SABIC, this OBP is also being explored feedstock as an estimated 8 million tonnes of plastic ends up as OBP every year, and it accounts for 80% of marine litter, making OBP a relatively untapped source of post-consumer feedstock.

SABIC has joined an innovative project with value chain partners to help UPM Raflatac launch the world’s first packaging label materials made from SABIC® certified circular polypropylene (PP) based on advanced recycling of ocean-bound plastic (OBP). “The label materials are marketed under the UPM Raflatac Ocean Action trademark,” SABIC said in the statement.

The OBP used in the project is recovered by local partners of Heng Hiap Industries (HHI), a Malaysia-based recycling company. The sustainable sourcing, proper collection, and management of the OBP is certified by Zero Plastic Oceans and Control Union.

“HHI converts OBP into a pyrolysis oil by using advanced recycling, and SABIC uses this oil as an alternative feedstock to produce certified circular SABIC PP polymer for further processing to film by Taghleef. Then, UPM Raflatac produces the label material,” SABIC says while adding that it is also investing in mechanical recycling, which shreds and remoulds plastic waste into new recycled resins.

The plastic waste used here is certified under the Zero Plastics Oceans program, and the final label material is under ISCC PLUS. This means that the material flow is controlled and tracked from the ocean-bound plastic to the final packaging following a set of predefined and transparent rules.

SABIC’S certified circular polymers form part of the company’s TRUCIRCLE portfolio and services for circular solutions.

The offering also includes design for recyclability, mechanically recycled products, certified renewable polymers from biobased feedstock and closed loop initiatives to recycle plastic back into high-quality applications and help prevent valuable used plastics from becoming waste. Although the collection and processing of OBP is in its infancy, SABIC is positioning itself as a firstmover, collaborating with Malaysia’s HHI to produce the world’s first certified Obp-based circular polymers.

Challenges

A continuing challenge for the recycled plastics sector is consistency in accreditation, with accreditation bodies differing in their certification processes and definitions, experts say while adding that this can prove a sticking point in encouraging the adoption of plastics recycling, as it can cause customer confusion and affect perceptions of the robustness of the standards.

According to them, even the definition of OBP varies between accreditation bodies. The economic viability of chemical recycling and its associated costs for accreditation can also pose hurdles for recyclers, especially smaller companies. Adopting chemical recycling infrastructure and technologies can be costly, with no immediate economic reward while market share against virgin plastics remains limited.

Given the wide variance in feedstock and labour costs across regions, the pricing of recycled materials can also vary sharply, and the development of pricing standards will be an important step forward for the industry in rationalizing investment costs and setting budgets, Ramanujal says.

He concludes by saying, “As sustainability becomes increasingly entrenched, further growth is expected in the recycled plastics market despite the obstacles, but still we have a long journey ahead in realising a circular economy in Asia.”

Synthomer plc appoints Lily Liu as chief financial officer

State-owned refiner Oil Indian Limited appoints Ranjith Rath as CMD

Energy Institute appoints Juliet Davenport as new president

Adhesive maker Synthomer plc has confirmed the appointment of Lily Liu as the new chief financial officer (CFO) and will join the board with immediate effect.

She succeeded Steve Bennett, who stepped down on 1st July, 2022, and left the business at the end of July following the completion of the handover period.

Synthomer said Lily is a highly experienced CFO with an impressive track record of building strong performing finance teams and creating business value through organic and inorganic growth. She has worked in the manufacturing and engineering sectors for over 20 years and has joined the company from Essentra plc, an FTSE 250 components and solutions business, where she worked as CFO.

Lily has also worked previously as CFO at Xaar plc, a Uk-listed inkjet technology developer, and Smiths Detection business, a division of Smiths Group plc. Lily was born in Beijing and holds a degree in economics from the Shanghai University of International Business & Economics.

She moved to Sydney, Australia where she completed an MBA and developed her career with an investment bank before joining the BOC group, with whom she had a varied and successful career and moved to work in the UK in 2003.

Lily is also working as a non-executive director and member of the audit committee of DCC plc, an FTSE 100 listed international sales, marketing and support services business.

The company develops and markets polymers used in a wide range of industries to create and enhance everyday consumer products.

State-owned refiner Oil India Limited (OIL) has appointed Ranjit Rath, a man with more than 25 years of experience in geosciences, as the new chairman and managing director (CMD). He took charge of the organisation on August 2, 2022.

An alumnus of IIT Bombay and IIT Kharagpur, Rath, prior to his appointment as the Oil India CMD, Rath has worked with various state-owned organisations in senior roles across various ministries.

He has worked as the chairman cum managing director of mineral exploration & consultancy Limited (MECL) under the ministry of mines.

He also worked as chief executive officer of Khanij Bidesh India Limited, managing director of Bharat Gold Mines Limited and has also held additional charge of the director general of a geological survey of India.

The newly appointed OIL CMD has so far been associated with diverse roles spanning from strategy formulation, business development and upstream asset management to the application of geosciences and exploration geology in several important projects including the creation of strategic petroleum reserves (SPR).

The appointment comes at a time as the company is diversifying into renewable energy businesses along with other energy majors. He replaced Sushil Chandra Mishra who retired on June 30, 2022.

OIL is regarded as one of the most valuable companies in India.

Renewable energy pioneer Juliet Davenport OBE has been appointed as the new president of the Energy Institute (EI).

Formally appointed by the members at the professional membership body’s annual general meeting, the founder of Good Energy succeeded former National Grid CEO Steve Holliday FRENG, and she will remain president for the next three years, EI said in statement.

Commenting on her appointment, Juliet Davenport said: “For me, sustainable energy is a life’s passion and I’m honoured to have been appointed as president of the Energy Institute, one of our industry’s oldest and most respected professional bodies. The EI and its council under the stewardship of my predecessor Steve Holliday have moved in exactly the right direction, with a new strategic purpose focused on accelerating the global just transition to net zero. Revolutions require new mindsets and new voices. It’s not the first time the energy industry and its people have changed the world but, more than anything, the EI’S goal of attracting, developing and equipping the diverse future energy workforce is critical. I’m used to challenging accepted thinking, and that is exactly what I plan to do in my new role so that the EI, with its tremendous member and volunteer base, not only stays relevant but becomes a leader in combatting the climate crisis.”

Increasing the diversity of skills and experience, BP’S Aleida Rios has been appointed VP and Equinor’s Lisa Rebora, joins as chair of the scientific and technical advisory committee of Energy Institute.