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AS Eesti Energia (Enefit) located in Estonia, took the next significant step by starting the final design phase of the multi-feed Naphtha refinery located in Auvere, with an annual capacity of 168,000 tonnes. This design phase is being taken in collaboration with internationally recognized process technology licensor Honeywell and leading engineering and technology company Technip Energies.

Enefit plans to upgrade its chemical recycling pyrolysis units, thereby providing the output as raw material for the international polymer industry. According to Andres Vainola, a member of the board of Eesti Energia , the chosen direction ensures a smooth transition from oil shale-based fuel production to a more circular solution resulting in lower CO2 emissions and improved unit economics.

“The transition to the chemical industry and the implementation of circular economy solutions means, in the Estonian context, the creation of an entirely new industry, laying the foundation for our long-term competitiveness and helping to find solutions to achieve carbon neutrality,” said Vainola. “The global demand for alternative polymer feedstocks is growing, and at the same time there is an increasing awareness to recycle these products at the end of their life cycle. Our goal is to position the Enefit pyrolysis technology as a scalable and market-tested solution for chemical recycling and to provide high quality raw materials for the plastic industry, for example raw materials used in polyethylene production.”

The planned factory would valorize the entire light fraction of pyrolysis oil, currently marketed as gasoline fuel, along with a portion of the by-product pyrolysis gas, thereby increasing the overall value. This ensures that less CO2 is released into the atmosphere, Scope-3 emissions are reduced, and carbon is instead stored in the chemical products. Additionally, the facility will create an opportunity to develop hydrogen production in Estonia, as hydrogen is a crucial raw material for the refining process of pyrolysis oil into chemical feedstock.

Honeywell is the technology licensor for the plastic feedstock upgrading plant and will design the process – including a Hydrotreatment and Hydrocracking section – to ensure the final chemical feedstock meets quality standards.

Honeywell UOP first introduced its UnicrackingTM and UnionfiningTM technologies more than 50 years ago. Over time, the technologies have advanced through the continuous development of more effective catalysts, better unit designs, enhanced reactor internals and sustainable solutions. These include enhanced energy efficiency designs and solutions to process 100% fossil feed material and co-process a mix of fossil feed material and emerging feed derived material.

Technip Energies is an engineering and technology contractor that has been selected during an international tender held in 2023. Technip Energies will be responsible for the design of the infrastructure, auxiliary units, and integration of the Hydroprocessing unit into the overall plastic feedstock chemical complex. Technip Energies stands out as one of the world's leading engineering and technology companies and has a more than 65-year history of executing major projects all over the world.

"By investing in these technologies, Enefit will be prepared to address fundamental changes in the energy industry, aligning with their long-term strategy of moving into circular petrochemical feedstock markets,” said Kelly D. Seibert, vice president and general manager of Honeywell UOP Refining & Petrochemical Technologies .

Bhaskar Patel, SVP Sustainable Fuels, Chemicals and Circularity of Technip Energies commented: “Enefit is making a decisive step to support its transition towards a more circular feedstock supply model for the petrochemical industry. We will leverage our expertise on fully integrated projects involving technologies in the field of refining, petrochemicals & polymers, as well as circular solutions for molecule transformation. As a leading player in the field of energy transformation, through integrated projects, products and services, we will further support Enefit in its transition”.

In future stages of chemical industry development, Enefit plans to also process the remaining products generated in the pyrolysis process and capture the produced carbon dioxide, which can also be further refined into a chemical product. These developments will likely also increase the demand for hydrogen use.

"The world is increasingly seeking solutions for the chemical recycling of a growing amount of plastic waste. While significant progress is being made in mechanical recycling, the majority of plastic waste cannot be effectively recycled in this way. The use of Enefit pyrolysis technology as a chemical recycling solution and a circular economy approach to the entire process has generated international interest in our future products," added Vainola.

According to the plan, engineering design of the factory and the investment cost will be clarified during the development phase expected to conclude in 2025. Final investment decision is expected to be made in 2026, and if positive, the factory would begin production in early 2030. Simultaneously, Enefit continues other developments related to the chemical industry, including carbon capture and the recycling of carbon into raw materials for the chemical industry.