Freepoint Eco-Systems to build 80,000 tonne/year chemical recycling plant in Belgium
Mark Victory
31-May-2024
LONDON (ICIS)–Freepoint Eco-Systems Belgium NV is planning to build an 80,000 tonne/year pyrolysis-based chemical recycling plant in Ghent, Belgium, the company announced in a press release.
The plant will use mixed plastic waste diverted from incineration as an input, although there were no further details of the grade of mixed plastic waste that will be used. It will be situated at North Sea Port’s Kluizendok site, following the signing of a long-term concession agreement between the two companies for the development.
Construction on the site will not begin until the permitting process is completed, which is expected in 2025. Freepoint Eco-Systems is currently engaged in feedstock sourcing and financial planning for the site.
The plot at North Sea Port is large enough to potentially expand the capacity to 160,000 tonnes/year.
Freepoint Eco-Systems has several ongoing pyrolysis-based chemical recycling projects at various stages of development in the US, where it has also recently signed an offtake agreement with Dow. This is its first project announced in Europe, but according to the press release, the company is currently developing several European projects.
In Europe, pyrolysis oil prices have remained largely stable across much of 2024 due to ongoing legislative and macroeconomic uncertainty, following a period of high volatility in Q4 2023. Across the past seven months, prices for naphtha substitute pyrolysis oil have traded as low as €1,700/tonne ex-works Europe and as high as €2,200/tonne ex-works Europe on the spot market. Non-upgraded pyrolysis oil, meanwhile has traded as low as €1,200/tonne ex-works Europe and as high as €1,700/tonne ex-works Europe.
Throughout, pyrolysis oil prices have remained disconnected from movements in virgin naphtha. Similar to trends in pyrolysis oil prices themselves, the spread between virgin naphtha and naphtha substitute and non-upgraded pyrolysis oil prices (the amount by which these grades of pyrolysis oil are trading above virgin naphtha) has broadly increased since October, while the spread between virgin naphtha and tyre-derived pyrolysis oil has broadly decreased.
The same trend is also seen in the spread between feedstock mixed polyolefin bale prices and high plastic content RDF bale prices.
Nevertheless, the spread between standard mixed polyolefin bales (which have not been pre-treated) and pyrolysis oil prices has been broadly falling in 2024, following a recovery in demand from the mechanical recycling sector (albeit from a low base), which pushed mixed polyolefin bale prices higher during a period of stability in pyrolysis oil values.
While the spread between mixed polyolefin bales and pyrolysis oil remains wide, these mixed polyolefin bales typically require additional sorting and processing. The challenges involved in sorting and pre-treating material have seen pyrolysis oil producers increasingly target pre-treated forms of mixed polyolefins, such as agglomerates, which trade at higher prices.
Uncertainty over the legal status of pyrolysis oil, and in particular, uncertainty over mass-balance accounting rules, continues to push buyers to the sidelines of the market and limit activity. Spot prices across all grades remained stable this week as a result.
The EU’s Technical Advisory Committee (TAC) had been due to take a decision on mass-balance accounting rules under the Single-Use Plastics Directive (SUPD) at the end of March. It was understood from players familiar with the matter that the TAC decision has been delayed due to ongoing discussions with regulators, but this is yet to be officially confirmed. A final vote on mass balance accounting under the SUPD continues to be expected before the end of the year, but a firm timetable has not been announced.
Tight supply of plastic-derived pyrolysis oil, though, continues to mean there is currently little downward pressure on prices, but this tight supply was largely priced-in during Q4 2023, when testing cycles were at their peak.
ICIS covers 3 grades of pyrolysis oil in its Mixed Plastic Waste and Pyrolysis Oil Europe pricing service. ICIS also offers mechanical recycling, waste bale, biodiesel, hydrogen, and virgin price coverage, giving you the complete picture across the sustainability value chain. For more information, please contact Mark Victory at mark.victory@icis.com.
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