• Scheduled to finish the design for pilot
  facilities in August to be operated this year ∙∙∙ having secured work process knowhow
  optimal to the domestic environment.

• Low temperature pyrolysis – good quality and
  high productivity ∙∙∙ contributing to a circular economy through commercialization
  by 2023.

SKC (President Lee Wanjae) is engaging in the
business of producing pyrolysis oil from plastic waste. The company has
established systematic cooperation with the city of Ulsan in December last year
and agreed this year to team up with Kankyo Energy, a Japanese venture business
at the forefront of technology in June, to pursue commercialization.

On August 25, SKC decided to build pilot
facilities of plastic waste-derived pyrolysis oil, using Kankyo Energy’s
advanced technology at the SK picglobal factory in Ulsan. The technology
developed by Kankyo Energy enables it to push ahead with pyrolysis at a lower
temperature and more rapidly and engage in constant throughput of plastic waste,
which means a higher yield rate and productivity. Early this year, SKC
ascertained the superior advantage of this technology from Japan and arranged
for the joint ownership of this technology with an exclusive right to use it in
Korea in June.

SKC will finish the facility design this month
and start operating it this year. The Company will produce pyrolysis oil from
plastic waste including vinyl collected locally. It will set up the production
process optimal to local conditions and establish the commercialization
facilities at its factory in Ulsan by 2023. As planned, the facility will
produce more than 35,000 tons of pyrolysis oil with a throughput of more than
50,000 tons of plastic waste a year and use the pyrolysis oil produced as
boiler fuel at SK picglobal’s Ulsan factory.

Currently, plastic waste generated worldwide amounts
to 350 million tons and only 15% of them are recycled. The remaining waste is
demonstrated, buried underground, or flows out sea. SKC has commercialized
eco-friendly HPPO technology for the first time in the world in 2008 as well as
biodegradable PLA film in 2009. Moreover, the Company is the first Korean
business to join the Alliance to End Plastic Waste (AEPW) in 2019 in an effort
to develop technologies to tackle the problem of plastic waste.

The technology of producing pyrolysis oil from plastic
waste pyrolysis is touted as enhancing the efficiency and volume of recycling
plastic waste for its versatility in processing many plastic types. Although
commercialization is in the early stages, SKC will make the program a success
by realizing a synergy with its knowhow in factory operation and the Japanese
partner’s advanced technology. It will also expand this business worldwide in cooperation
with Kuwait PIC, a partner in the chemical business.

An SKC official remarked, “We aim for net zero
in the volume of plastic waste from all of our processes related to our
production, application, and emission by 2030. We continually seek and pursue
optimal production capabilities through pilot facilities with the aim of commercialization
to ensure a virtuous cycle of recycling plastic waste.”