Is the Circular Economy Becoming a Reality? 4 Amazing Oil & Gas Downstream Projects

In recent years the pressure on the oil and gas industry to adopt a more sustainable approach to production has been growing. In 2018 European Commission presented the ambitious European Strategy for Plastics in a Circular Economy with the focus on fully respecting reuse, repair and recycling needs in plastic production. Now for the Downstream industry the circular economy has become a necessity. 

Here are 4 inspiring circular economy projects from leading O&G companies.

SABIC’s certified circular polymers

In 2019 SABIC pioneered the production of certified circular polymers. SABIC makes pyrolysis oil feedstock out of the mixed plastic waste, including those which are hard to recycle. The polymers are certified through the International Sustainability and Carbon Certification plus (ISCC+) scheme. It uses a "mass balance method” meaning that for each tonne of circular a respective amount of the output should be classified as circular. By 2022 SABIC in partnership with Plastic Energy will build the world’s first commercial unit producing certified circular polymers in Geleen, Netherlands to upscale the production.

Eni’s biofuels from organic waste

Eni manages to increase biofuels production while making no impact on the food chain. In 2019, Syndial, Eni’s environmental services company, began operating at its pilot plant at the Gela refinery. It recycles Organic Fraction of Municipal Solid Waste (OFMSW) into bio-oil, used to produce next-generation fuels. The pilot plant has a production capacity of 70 kg of bio-oil per day. In March 2021 they launched a biomass treatment plant that will enable the use of up to 100% of the biomass at Gela refinery. Eni’s 2021-2024 plan provides for the doubling of the production capacity of their biorefineries to around 2 million tonnes.

OMV’s crude oil from plastic waste

ReOil, OMV’s feedstock recovery pilot project at Schwechat refinery, uses pyrolysis to produce synthetic crude from plastic waste. The recycled crude can be processed into any refinery product. The plant recycled 200,000 kg of plastic waste by June 2020. ReOil reduces the CO2 footprint of OMV’s product by 50%. According to OMV’s goals, by 2025 at least 60% of the product portfolio should consist of natural gas and low/zero-carbon products.

Neste -  biofuel from cooking oil