SK Incheon Petrochem, Enters Eco-Friendly Recycling Business... Introducing Pyrolysis Oil from Waste Tires

Investment in Pyrolysis Technology Startup Eldicarbon for Waste Tires
Annual Production of 20,000 Tons of Eco-Friendly Products Starting First Half of Next Year

SK Incheon Petrochem plans to introduce tire pyrolysis oil into its process for the first time in Korea in the first half of next year.

On the 5th, SK Incheon Petrochem announced that it signed an equity investment agreement with startup LD Carbon, which possesses tire pyrolysis technology, on the 3rd. The signing ceremony held at SK Incheon Petrochem in Seo-gu, Incheon was attended by Choi Yoon-seok, President of SK Incheon Petrochem; Hwang Yong-kyung and Baek Seong-moon, co-CEOs of LD Carbon; and Park Young-sang, Head of the Central Region of KDB Industrial Bank, among other officials.

Following this investment, SK Incheon Petrochem will secure a long-term stable supply of tire pyrolysis oil produced by LD Carbon. Starting from the first half of next year, the pyrolysis oil will be introduced into the process to produce approximately 20,000 tons of eco-friendly products annually.

On the 3rd, at the SK Incheon Petrochem headquarters in Seo-gu, Incheon, (from left) Park Young-sang, Head of KDB Industrial Bank Central Region, Choi Yoon-seok, President of SK Incheon Petrochem, and Hwang Yong-kyung, CEO of LD Carbon, signed an investment agreement for LD Carbon's eco-friendly recycling using waste tires with SK Incheon Petrochem.
[Photo by SK Innovation]

LD Carbon will raise funds through a combined investment and financing method, including SK Incheon Petrochem’s investment and the issuance of convertible bonds by the Industrial Bank, to newly establish tire pyrolysis facilities.

LD Carbon produces pyrolysis oil called TPO (Tire Pyrolysis Oil) generated during the decomposition of waste tires and supplies it to SK Incheon Petrochem. They plan to complete the value chain from tire collection to decomposition and recycling. Once the facility is completed, it is expected to become the only domestic company producing eco-friendly certified recycled carbon black through tire pyrolysis.

Through this partnership, the two companies have agreed to build a circular economy model for waste tires and work together to realize a carbon-neutral society. The annual amount of waste tires generated domestically is about 300,000 to 400,000 tons. Waste tires are either used simply as fuel or landfilled, causing harmful effects on air and soil environments.

[Image source=Pixabay]

LD Carbon is a materials company with technology to produce eco-friendly carbon black (powdered carbon) and pyrolysis oil through waste tire recycling. The company name LD Carbon stands for ‘Life re-Defined Carbon’ for sustainable living. It was the first in the related industry to receive the global eco-friendly material international certification ‘ISCC PLUS.’ In 2021, it was selected as one of the ‘Top 100 Promising Green New Deal Companies’ by the government, and last year it received awards from the Minister of SMEs and Startups and the Minister of Environment, followed by the Presidential Award at the ‘Challenge K-Startup 2022’ grand finals.

Choi Yoon-seok, President of SK Incheon Petrochem, said, “We will take the lead in eco-friendly business models based on tire pyrolysis oil and expand our business by partnering with global companies. Through eco-friendly portfolio innovation based on resource circulation, we will develop into a company that contributes to the environment and society.”

Hwang Yong-kyung, CEO of LD Carbon, said, “We aim to achieve a resource circulation structure that recycles used resources to create new products, rather than the ‘linear’ structure of fossil fuels that are used once and consumed. Furthermore, we will contribute to national industrial development together with SK Incheon Petrochem.”