[Waste Plastic War] Melt or Burn... Cement, Petrochemical, and Incineration Companies "Secure Waste Plastics"

Survival Battle Among Cement, Petrochemical, and Incineration Companies
Common Challenge of Securing Waste Plastic for Greenhouse Gas Reduction

The cement industry, petrochemical industry, and incineration industry are engaged in a fierce battle for waste plastics crucial to their survival. The petrochemical industry, ranked second in greenhouse gas emissions, and the cement industry, ranked third, began utilizing waste plastics in their core businesses to shed the stigma of being major polluters, which sparked this competition. Currently, before the petrochemical industry fully operates its chemical recycling facilities for waste plastics, the cement industry, which uses waste plastics as auxiliary fuel, is consuming an overwhelmingly larger volume. The incineration industry is the one suffering. As the cement industry sweeps up the limited supply of waste plastics, the incineration industry faces concerns about its survival.

The Korea Petrochemical Industry Association conveyed to the government in September that cement companies should stop incinerating waste plastics. The petrochemical industry argues that waste plastics should not be used as fuel but as raw materials. Petrochemical companies plan to chemically recycle waste plastics to produce pyrolysis oil, which will be used as raw material in petrochemical processes. This is because, starting in 2030, it will be mandatory to use 30% recycled raw materials when manufacturing plastics. Companies such as LG Chem, SK Geo Centric, Lotte Chemical, and Hanwha Solutions are building pyrolysis oil plants for waste plastics or are engaged in technology development and demonstration projects.

The petrochemical industry is requesting the government to allow investment in waste plastic collection and sorting facilities operated by small and medium-sized enterprises. Kim Pyeong-jung, head of the Korea Petrochemical Industry Association, said, "If collection and sorting facilities are scaled up and advanced, more recyclable waste plastics can be secured," adding, "Sorting by material type is also possible, which can improve the quality of recycled products." A representative from a major petrochemical company said, "It is important to nurture collection and sorting companies as partners," and "We need to find points where no single part of the value chain monopolizes but all can win-win evenly."

Prime Minister Han Duck-soo attended the groundbreaking ceremony of the plastic recycling plant (ARC) held at SK Geocentric in Nam-gu, Ulsan, on the afternoon of the 15th of last month, delivering a congratulatory speech emphasizing the establishment of a circular economy for our future.
[Image source=Yonhap News]

The cement industry is rapidly increasing its use of waste plastics, which have a higher calorific value than bituminous coal, as kindling to raise the temperature of the rotary kiln (a cylindrical furnace operating at 2000 degrees Celsius). The amount of combustible waste plastics used in cement plants increased by 164% over five years, from 867,428 tons in 2017 to 2,290,624 tons last year.

The cement industry insists that utilizing waste plastics as circular resources is inevitable to achieve the goal of 'carbon neutrality.' A cement industry official explained, "Using circular resources instead of bituminous coal, which was previously used as fuel, reduces nitrogen oxides during high-temperature heating," adding, "Domestic cement companies are preparing to introduce selective catalytic reduction (SCR) facilities to reduce air pollutants, and it is more effective to use waste plastics rather than bituminous coal in these facilities." Ssangyong C&E plans to invest a total of 800 billion KRW in facilities, including SCR installation, by 2030.

The cement industry is considering a so-called 'gentlemen's agreement' with the petrochemical industry regarding the use of waste plastic volumes. For example, waste plastics from bottled water, which are highly pure, would likely be used as petrochemical raw materials, while waste plastics containing dyes would be used by the cement industry as circular resource fuel.

A cement factory located on the outskirts of Seoul. Photo by Dongju Yoon doso7@

The appearance of waste before being put into the kiln at a cement factory [Photo by Korea Cement Association]

Han Chan-su, director of the Korea Cement Association, said, "When separating waste, bottled water containers are collected separately and are relatively clean, so their recycling rate is likely high, and this portion can be taken by the petrochemical industry." He explained, "Waste plastics or vinyl that require some washing among the remaining materials can be recycled as fuel by the cement industry. If both sides use the waste plastics they need, it can reduce the potential for disputes."

Director Kim said, "From the perspective of greenhouse gas reduction and circular economy, allocating resources in the order of 'physical recycling - chemical recycling - thermal recycling such as cement' is most effective." However, once petrochemical companies begin full-scale operation of chemical recycling facilities, waste plastics are expected to be directed there. The cement industry charges 50,000 KRW per ton to process waste, but the petrochemical industry, conversely, pays to purchase recycled raw materials.

The problem lies with small-scale incineration companies. Until now, sorting companies have paid incineration companies 200,000 KRW per ton to incinerate residual materials after sorting for material recycling. However, since cement companies process waste for 50,000 KRW per ton instead, incineration companies have lost volume and face a crisis. Eleven organizations, including the Korea Resource Circulation Association and the Korea Waste-to-Energy Industry Association, have formed the Environmental Resource Circulation Industry Survival Countermeasures Committee (Saengdaewi) and are urging the government to devise measures.

Plastic recycling waste is piled up at the Recycling Center in Yongin-si, Gyeonggi Province.
[Image source=Yonhap News]

At the first meeting for 'Mutual Growth and Development of the Waste Industry' held in September with about 30 participants including the Ministry of Environment and the Cement Association, Saengdaewi proposed five measures: applying a quota system for waste brought into cement plants, restricting types of incoming waste, and mutual growth agreements, among others. However, the cement industry rejected all proposals, arguing they contradict the principles of a free market economy. The Ministry of Environment also stated that government market intervention is inappropriate. The ministry proposed holding a second meeting with a smaller, elite group to discuss legal standards and is planning to hold the second meeting this month. A Ministry of Environment official from the Resource Circulation Policy Division said, "The government cannot intervene to adjust volumes," adding, "We will continue to provide a forum for discussion to find ways to narrow differences in positions."

Having been rejected on all mutual growth proposals, Saengdaewi has presented only one option deemed most feasible. Jang Ki-seok, secretary-general of Saengdaewi, said, "The biggest cause of the exhaustion faced by 430 incineration companies, material recycling companies, and solid fuel manufacturers participating in Saengdaewi is the government's indifference," adding, "We need to convert the heavy metal inspection of waste, currently left to voluntary inspection by cement plants, into a statutory inspection to at least regulate the circulation path of circular resources." Currently, cement companies conduct their own analyses according to Korea Environment Corporation standards and post the results on their websites. If converted to statutory inspection, the Environment Corporation would collect samples quarterly and the government would manage what waste is being brought in.