Idemitsu Kosan has initiated the design of its second chemical recycling facility.

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Recently, Japan’s Idemitsu Kosan announced the commencement of basic engineering for a second chemical recycling facility, marking the entry of the company’s capacity expansion in the field of waste plastic chemical recycling into a new phase. Its first facility, located in Ichihara City, Chiba Prefecture, was completed in December 2025 and is scheduled to begin commercial operations in April 2026, with an annual capacity to process 20,000 tons of waste plastics and produce approximately 14,000 tons of recycled oil.

The unit employs catalytic cracking methodology, producing a regenerated oil that is comparable to light crude and free of waxes or heavy fractions. Idemitsu Kosan plans to blend this product with conventional petroleum and process it through its existing refining and petrochemical facilities. At present, the cost of producing plastics from recycled oil is approximately three times that of virgin plastics; the company aims to decrease this ratio to below two times. As the first unit is poised to enter commercial operation, the basic design of the second unit has officially commenced, with the aim of scaling up the validated methodology from the pilot phase to manufacturing-scale mass production.

This investment aligns with the Japanese government’s legislative efforts to promote the circular economy of plastic resources and represents a key measure in Idemitsu Kosan’s transition toward environmentally friendly, low-carbon business activities. With the approval and implementation of the second plant, the company is poised to achieve economies of scale in the chemical recycling sector, further reducing unit costs while providing a replicable solution to plastic discarded materials reduction within Japan.

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