SK Geocentric, First Export of 'Recycled Benzene' to China

Utilization of Recyclable Naphtha Extracted from Waste Cooking Oil
Establishing Cooperation with German and Finnish Global Petrochemical Companies

2000 tons of renewable benzene produced by SK Geocentric embarked on its first export journey from the Ulsan CLX SK Pier on the 14th. (Photo by SK Geocentric)

[Asia Economy Reporter Moon Chaeseok] SK Geocentric, the eco-friendly chemical business subsidiary of SK Innovation, announced on the 20th that it has exported 'recycled benzene,' an eco-friendly plastic raw material developed together with global petrochemical companies from Germany and Finland, to China for the first time.

SK Geocentric stated that it exported recycled benzene made from recyclable naphtha extracted from waste cooking oil, palm oil, and other sources. A total of 2,000 tons of recycled benzene, produced in collaboration with Neste, Finland's largest oil company, and Covestro, a German chemical company, was shipped on the 14th from the Ulsan CLX SK pier to China, the largest demand market in Asia. Unlike general naphtha extracted from crude oil, recycled naphtha is derived from eco-friendly raw materials. Using this raw material to produce chemical products can reduce carbon emissions compared to conventional fossil fuels. It is reported that demand from customers focusing on low-carbon product production is increasing.

SK Geocentric receives recycled naphtha from Neste and produces recycled benzene at its Ulsan plant, which has obtained the European Union's (EU) internationally recognized eco-friendly certification 'ISCC Plus.' ISCC Plus is awarded only to companies with excellent systems that verify eco-friendliness from production to final products. SK Geocentric exports recycled benzene to Covestro's factory in China, where Covestro produces 'eco-friendly polyurethane' as the final product. Polyurethane is used in automotive interior and exterior materials, electronic products, and medical devices.

SK Geocentric plans to continue producing and exporting recycled benzene through this partnership until the year after next. Having established a stable supply system with leading global petrochemical companies, the company aims to respond to the rapidly increasing demand for eco-friendly products in the Asian market. Choi Woo-hyuk, head of SK Geocentric's Aromatic Business Division, said, "It is highly meaningful to visualize the export of recycled benzene made from eco-friendly raw materials in line with our ongoing 'Green for better life' strategy," adding, "We will strive to create great synergy through global corporate cooperation that produces recycled benzene from recycled naphtha and leads to the production of eco-friendly polyurethane."

Mercedes Alonso, Vice President of Neste, responded, "The chemical industry is entering a new phase as expertise in producing eco-friendly raw materials accumulates," and added, "This tripartite cooperation will play a decisive role in replacing vast amounts of fossil fuels and will serve as a model case for the petrochemical industry’s success in eco-friendly business." Suchita Govil, Chief Commercial Officer of Covestro, also said, "We are pleased to expand the sustainable eco-friendly product market through this collaboration," and noted, "The produced products can be used directly in various finished product manufacturing processes without additional processing, and they can also contribute to achieving greenhouse gas reduction targets."