Saudi Investment Recycling Company (SIRC), a subsidiary of Saudi Public Investment Fund (PIF), said it has signed a MoU with Saudi petrochemical giant Sabic to help achieve a circular economy, one of the key objectives of Saudi Vision 2030.
As per the deal, SIRC will source, collect, sort and supply the feedstock for the chemical recycling facility from municipal solid waste.
The MoU, which was recently signed at Sabic headquarters in Riyadh, also proposed a feasibility study on building a chemical recycling plant in the kingdom to convert mixed plastic waste (MPW) into pyrolysis oil.
The deal is aligned with Sabic’s Trucircle initiative as part of its vision of a circular economy.
Trucircle covers certified circular products, made through feedstock recycling of difficult to recycle plastic waste; certified renewable products from second-generation bio-based feedstock; mechanically recycled products to improve recyclability and end-use properties; and design for recyclability for products that have better recyclability characteristics.
Its portfolio has applications in key end markets such as packaging, electrical & electronics, transportation, construction and healthcare/medical devices.
"This strategic collaboration will help us in our efforts to contribute to fulfilling the kingdom’s waste management objectives aligned with Saudi Vision 2030," said Yousef Al Benyan, the vice chairman and CEO of Sabic.
"This also reinforces the Saudi G20 Presidency’s commitment to Circular Carbon Economy (CCE) ensuring a sustainable future focusing on environment, energy and climate," he added.
The PIF-owned SIRC aims to use mixed plastic waste collected from Materials Recovery Facility to be used as feedstock to be converted into Pyrolysis oil.
"The initiative will play a vital role in contributing to the Circular Economy of Saudi Arabia, reducing the greenhouse emissions, protecting the environment and creating a sustainable future in Saudi Arabia. SIRC sees the right synergy and our expertise along with Sabic to make this massive project a resounding success and a role model initiative in the Middle East," remarked its CEO Ziyad Al Shiha.
"The collaboration with Sabic will give an impetus to our support to the success of various initiatives identified by the kingdom’s Waste Management National Regulatory Framework," stated the top official.
"It will also help create new opportunities in the waste management sector. We established SIRC with an aim to build, develop and invest in the waste management sector in Saudi Arabia." he noted.
Both SIRC and Sabic will assess project feasibility study and the proposed collaboration, as part of the MoU, beside jobs creation, he added.
Sabic Executive VP (Petrochemicals) Abdulrahman Saleh Al Fageeh said: "We can now clearly foresee a significant role of Saudi Arabia having a tangible part in the Climate Change agenda."
"The new collaboration will be a milestone toward Saudi Vision 2030. We are very much confident of SIRC’s expertise and role in converting the waste into opportunity," he added.