By Jaime Llinares Taboada

 

Royal Dutch Shell PLC said Wednesday that it has signed a deal with Oslo-listed chemical recycling company Pryme BV for it to supply Shell with pyrolysis oil derived from plastic waste.

The feedstock will be used by the Anglo-Dutch company to make chemicals products at its Moerdijk and Rheinland crackers in the Netherlands and Germany, respectively, from next year.

"With increasing demand for circular chemicals from customers, our agreement with Pryme enables us to significantly grow volumes as early as next year," Shell Chemicals and Products Senior Vice President Thomas Casparie said.

Pryme will produce the pyrolysis oil at its plant in Rotterdam, which is under construction and scheduled to become operational in 2022 with a production capacity of 60,000 metric tons a year. The company has a project to build a second plant with an estimated capacity of 350,000 tons, with start-up planned in 2024.

Pyrolysis is a chemical recycling process that can be applied to low-quality plastic waste that can't be recycled using traditional processes.

Shares in Pryme at 0800 GMT were up 16% at 25.97 Norwegian krone. Shell was down 2.2% at 1,662.4 pence.

 

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

 

(END) Dow Jones Newswires

October 06, 2021 04:53 ET (08:53 GMT)

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