Polyolefin solutions firm Borealis recently launched a feasibility study to examine the potential of a project to add a chemical recycling unit at its Stenungsund, Sweden production site in collaboration with partner Stena Recycling. Funding for the construction of the asset will be provided through a grant from the Swedish Energy Agency.

“The project we’re carrying out together with Borealis at Sweden’s first plastic recycling hub is a very exciting and important step in increasing the proportion of recycled plastic.” Martin Leander, head of commodities for Stena Recycling, said in a Borealis release. “Through this cooperation, we can contribute to increased material recycling and reduced climate impact by chemically recycling plastic waste that is currently incinerated. Plastic is an important material, and we now have additional opportunities to help our customers find circular solutions.”

Stena Recycling will carry out the feasibility study, including evaluations of technology for the facility and how to integrate the assets with Borealis’ existing cracker at the site. The recycling firm supply recovered plastic waste to the new chemical recycling unit.

Recycling and plastic waste management services provider Fortum Recycling and Waste is also applying for a grant to conduct another feasibility study at the Stenungsund location. That document will cover technical requirements for plastic pre-treatment, quality control, and sourcing of materials.

“The integration of waste management and processing directly into a steam cracker would be one of the first of its kind,” Borealis said in a release.

Borealis’ Borcycle C portfolio contains chemical recycling solutions for polyolefin-based post-consumer plastic products.

“The integration of Borcycle C into our cracker in Stenungsund is a clear example of our circular efforts: built on innovation and collaboration, it enables us to supply sufficient amounts of chemically-recycled base chemicals and polyolefins in the market,” Martin van Koten, executive vice president, Base Chemicals and Operations for Borealis, said in a statement.

If the company makes a final investment decision on the chemical recycling unit project, the asset will start operations in 2024.