Wood plc (Aberdeen, U.K.) has signed a collaboration agreement with OMV AG (Vienna, Austria) for the commercial licensing of its innovative plastic recycling technology, ReOil. This agreement will support significant advancements in chemical-based plastic recycling, helping to build a circular economy solution for end-of-life plastics that would otherwise be sent to landfill or waste incineration.
OMV, the integrated energy, fuels & feedstock and chemicals & materials company, developed the proprietary ReOil technology to convert plastic waste into pyrolysis oil, a valuable resource primarily used to produce high-performing and sustainable plastics. ReOil offers an innovative solution to support the growth of plastic recycling – it is estimated that around 60% of plastics production will come from recycled feedstock by 2050.
Under the agreement, Wood and OMV will bring ReOil jointly to the market, combining Wood’s proprietary heater technology with OMV’s chemical recycling process. The companies have established a combined technology and engineering delivery team to support clients with the implementation of ReOil at their sites. In addition, Wood will work with ReOil licensees to provide full asset lifecycle support globally.
Craig Shanaghey, Wood’s Executive President of Projects, said: “Building on our excellent long-term relationship with OMV, we are excited to formally partner on the ReOil technology. ReOil is a proven solution to the complex problem of plastic waste and aligns with Wood’s strategic priorities to design a more sustainable future. We look forward to working with OMV to deploy this technology at scale.”
Daniela Vlad, Executive Vice President Chemicals & Materials at OMV, said: “We are delighted to enter this long-term relationship with Wood to provide a licensing offer which will further enable global licensees to make use of future circular economy solutions. This is in line with our strategic priorities to establish OMV as a leader in renewable and circular economy solutions and diversify our portfolio by entering adjacent products and business areas.”
A ReOil pilot plant has been operating in the OMV refinery in Schwechat, Austria since 2018 and has processed end-of-life plastics for more than 22,000 hours to date. A 16,000 tons per year ReOil plant is currently in construction at the same site and Wood is working with OMV on the development of an industrial-scale plant with a capacity of 200,000 tons per year.
This collaboration agreement follows a respective Memorandum of Understanding that was signed between Wood and OMV in November 2022.