Chemical Recycling and plastic dissolution Set to Boom: IDTechEx Report Predicts 35.1% Growth by 2034

Monday, May 20, 2024

In a world increasingly turning away from fossil fuels and grappling with the mounting challenge of plastic waste, a fresh approach to plastic disposal has captured significant interest. Advanced recycling methods like chemical recycling and plastic dissolution aim to enhance the circularity of the plastics industry.

IDTechEx’s latest report, “Chemical Recycling and Dissolution of Plastics 2024-2034: Technologies, Players, Markets, Forecasts,” sheds light on crucial advancements in the chemical recycling sector, forecasting robust market growth at a CAGR of 35.1%. While mechanical recycling remains dominant, its efficacy is hampered by the diminished mechanical properties of the recycled plastic, leading to downcycling. This limitation underscores the need for alternative methods such as chemical recycling and dissolution.

Chemical recycling involves transforming plastic waste into monomers or new raw materials through various chemical reactions like cracking, gasification, or depolymerization, excluding processes like incineration. These technologies enable the recycling of previously unrecyclable plastics, such as multilayer packaging, by converting them into vital feedstocks for the plastics production chain.

This burgeoning interest in chemical recycling has spurred increased investment and expansion plans for new and existing plants. Major companies in petrochemicals, chemicals, and consumer goods sectors, like Dow, ExxonMobil, BASF, and Shell, are heavily involved, often partnering with smaller emerging firms entering the chemical recycling arena to secure funding, forge strategic alliances, and develop feedstock agreements.

Despite the optimism, chemical recycling faces scrutiny over its environmental benefits and economic viability. Critics challenge its efficacy as a solution to plastic waste, highlighting nuanced realities where each technology has its pros and cons. Additionally, notable failures in the field serve as cautionary tales, prompting a closer examination of the sector.

Key technologies in chemical recycling include depolymerization, which breaks down materials into monomers using thermal, chemical, or biological means, albeit requiring relatively homogeneous feedstock. Pyrolysis and gasification convert mixed plastic waste into pyrolysis oil and syngas, respectively, through thermochemical methods, with pyrolysis drawing attention for its potential integration with conventional crude oil hydrocarbon feedstock. Secondary recycling via dissolution involves dissolving polymers and re-precipitating them to recover pure polymer, representing another vital area in advanced recycling.

The IDTechEx report “Chemical Recycling and Dissolution of Plastics 2024-2034: Technologies, Players, Markets, Forecasts” foresees substantial growth in the chemical recycling sector. New facilities are expected to come online, and ongoing technological advancements will continue. By 2034, the report predicts that pyrolysis and depolymerization plants will collectively handle over 17 million tonnes of plastic waste each year. Despite this growth, it’s important to note that this figure represents only a fraction of the total plastic waste generated annually, which exceeds 400 million tonnes. This indicates ample room for further expansion in the sector. However, realizing this potential will necessitate significant investment and sustained commitment throughout the value chain.

The expansion of chemical recycling, particularly in pyrolysis and depolymerization, has been remarkable, with plant capacity increasing by over 60% since early 2021. Nevertheless, there are ongoing debates regarding the economic and environmental impacts of these processes. Critics raise concerns about flawed assumptions in life cycle assessments and question the economic feasibility of chemical recycling.

Recycled materials find applications beyond packaging for fast-moving consumer goods, extending to textiles, automotive parts, electronic equipment, and other industries. Innovations in the field include alternative processes like microwave and enzymatic depolymerization, hydrothermal processes, and advancements in polymer development such as dynamic cross-linked polymers.

For more detailed insights into the chemical recycling market, including discussions on key players, analysis of market trends, and a 10-year market forecast, refer to the IDTechEx market report “Chemical Recycling and Dissolution of Plastics 2024-2034: Technologies, Players, Markets, Forecasts.” The report also provides a comprehensive overview of technology providers, a complete list of operational plants and projects, and an analysis of the latest research and development trends with commercial implications.