In hydrothermal processes, too, a liquid phase is produced from the treated plastic waste. However, a unique feature of this process compared to the others is the use of supercritical water as a reaction aid. 

The plant in Böhlen (Dow) mentioned above is one of two projects in Germany that have been shelved. Why did these plants fail?

The shutdown of Dow’s steam cracker in Böhlen is the reason why the project for the chemical recycling of plastic waste will not be pursued further. Without buyers for the products it would produce and without the synergies with the site’s petrochemical infrastructure, building the recycling plant there no longer makes sense. According to Dow, high energy and operating costs, combined with declining demand for the basic chemicals produced there, are the reasons for the site’s shutdown. 

What lessons can we learn from this to ensure that future projects aren't canceled?

Investments in chemical recycling first require stable demand and corresponding off-take agreements, for example for the naphtha substitutes produced. This demand arises from the regulatory framework, which sets recycling quotas in areas such as plastic packaging. However, there are still uncertainties in the regulatory framework, for example regarding mass balance, the end-of-waste status, or the general status of chemical recycling under the German Packaging Act. 

So, is it a regulatory issue?

No, the example of Böhlen highlights yet another structural problem facing the upstream raw materials industry in Germany and Europe. Among other things, high energy costs lead to higher production costs for the necessary raw materials and, consequently, to reduced competitiveness among plastics manufacturers and processors. If the petrochemical industry in Germany and Europe relocates to non-EU countries due to these adverse conditions, this will affect the entire industry and, ultimately—as in Böhlen—also impact chemical recycling. 

How can this be prevented?

Creating and maintaining a level playing field is an essential prerequisite for the long-term viability of chemical recycling. The regulatory framework must provide sufficient investment security and protect the European market against unfair competitive practices. One example worth mentioning here is the import of government-subsidized recycled materials from China.   

The data also shows that, in terms of volume, chemical recycling still plays a minor role in Germany. What is possible in the future—given the current pace of development and if we really step on the gas?

In addition to the challenging investment conditions described above, regulatory provisions give material recycling priority over chemical recycling processes. In the current draft of the Packaging Law Implementation Act, the recycling rate for plastic packaging is set to increase to 75 percent in 2028 and to 80 percent in 2030. However, the share of chemical recycling in meeting these targets is limited to five percent. 

So there’s certainly no question of a “turbo boost.” Even though it is generally encouraging that chemical recycling processes are now being incorporated into the legislation in a legally sound manner. However, given the looming recycling gap in Germany and Europe, it remains to be seen whether material-based recycling processes alone will be able to meet the quota targets.

Let's assume the turbo does kick in after all. What role will chemical recycling play in the circular economy in the future?

Chemical recycling is ideally suited for producing high-quality recycled materials from plastics that cannot be recycled by material type and from mixed plastic fractions. In addition to mixed plastics and sorting residues from the packaging sector, it can also be used in many other application areas, such as the automotive, medical, and electronics industries, as well as for the recycling of fiber-reinforced plastics. 

That sounds like a "but."

As long as the production of recycled plastics is more expensive than that of fossil-based virgin materials, not only chemical recycling but every recycling technology will depend on a regulatory framework that ensures market demand for recycled materials and the associated investments.

Thank you very much for the interview!