ICIS, a global commodity intelligence source, has introduced Plastic Pyrolysis Oil Pricing Indexes to meet growing consumer demand for pricing chemical recycling outputs. This groundbreaking move establishes ICIS as the pioneer in offering such a pricing index.

Plastic pyrolysis oil (PPO) is a sustainable alternative to fossil-based naphtha in plastic production, aligning with the chemical industry’s transition to a circular economy, driven by consumer, investor, and regulatory pressures.

As of September 2023, pyrolysis-based plants targeting mixed plastic waste, primarily polyolefins, represent around 60% of Europe’s operating chemical recycling capacity. The capacity is expected to grow nearly sevenfold by 2028, reaching approximately 600,000 tons/year, based on finalized investment decisions. If the pre-FID project pipeline is realized, the pyrolysis capacity for mixed plastic waste could reach as much as 1.7 million tons/year by 2028.

The introduction of ICIS’ Plastic Pyrolysis Oil Pricing Index fills a crucial gap in the market, providing reliable, independent price indicators. This transparency empowers buyers and sellers to assess opportunities in the chemical recycling market.

For the polyethylene (PE) and polypropylene (PP) sectors, chemical recycling is seen as the most viable route to achieve mass-scale recycled food-contact packaging in Europe. ICIS’ Pyrolysis Oil Pricing Index enhances market transparency, facilitating more effective trading in this sector expected to witness remarkable growth.

ICIS, or Independent Commodity Intelligence Services, offers data and analytics across chemical, fertilizer, and energy markets, serving as a trusted source for price information and insights globally. ICIS is part of RELX, a FTSE15 company with a market cap of £47bn and an employee base of over 35,000 experts across 40 countries.

Press release by ICIS.