At the frontier of a circular economy for plastics

In a scene from a classic American film from the 1960s, a recent graduate is advised at a garden party: 

“There’s a great future in plastics”

When audiences first saw this famous scene from the 1967 blockbuster The Graduate, consumers were craving cheap, versatile plastics to replace traditional materials, and this high-tech industry was booming.

True to prediction, this versatile material is now used across almost every sector, from clothing, packaging and electronics, to transportation, construction, machinery, healthcare and beyond. Since the 1950s, some 9bn tonnes of plastics have been produced globally. About half of that was made in the past 20 years. As the applications of this material multiply, innovations such as self-healing, light-sensitive and bio-degradable polymers continue to arise. Modern life is impossible without plastics. 

But the poor management of plastic production, consumption and waste disposal threatens to outweigh its benefits, with significant impacts on the environment and the economy. 

Just 16 per cent of plastics are recycled globally — the rest is either incinerated, put in landfills or discarded. As the demand for plastics expands, greenhouse gases emitted in the production and incineration of plastics are projected to triple by 2050 compared to 2019 levels, according to the Center for International Environmental Law.

Yet there is no immediate or suitable alternative for many plastics. Thanks to being durable, light and affordable, plastics frequently have a lower environmental footprint across their lifecycle than other materials. Banning them altogether is neither realistic nor desirable.

“We believe that the problem is not plastic itself, but whether it is produced, used and disposed of properly,”  explains Kenichiro Mawatari, director of the Green Transformation division for the Mitsubishi Chemical Group.

“Even after our planet transitions to a circular economy and achieves carbon neutrality, we will continue to have a responsibility to supply industries with these needed materials sustainably.”

Pushing the frontiers of plastic recycling

MCG believes in applying circular-economy principles to the plastics industry. This approach can cut the volume of plastics entering our oceans by 80 per cent, reduce greenhouse gas emissions by 25 per cent and create 700,000 net additional jobs by 2040, according to the Ellen MacArthur Foundation. 

To this end, the company has implemented various chemical and mechanical recycling solutions.

“Among our recent efforts are first-phase projects to commercialise and scale-up chemical recycling for acrylic resins and turning used, mixed plastics back into oil and using them as the raw materials for producing plastics.” explains Mawatari. 

In 2021, MCG partnered with Japanese petrochemical companies to start construction on the country's largest commercial chemical recycling facility. The facility, which will convert used plastics into oil, will have a processing capacity of 20,000 tonnes per year.

As the world’s top supplier of methyl methacrylate (MMA) plastics and acrylic resins, MCG is particularly invested in achieving a feasible recycling loop for this type of plastic. In 2021, the company started a trial aimed at realising chemical recycling in Japan on a commercial basis. Using tail lamps collected from end-of-life vehicles (ELVs) and other used acrylic resin materials, MCG has been exploring chemical recycling and reuse systems in a joint project with a Japanese automotive maker. In the post-covid era, protective acrylic screens will also be recycled.

Elsewhere, the company is working to improve the traceability of biomass and other recycled materials resources using blockchain technology, including a project with Circularise, a Dutch provider of supply-chain transparency software. 

“Such tracking systems will not only help reduce market mismatches for used plastics but also provide certification of recycling to our customers. Ultimately, this forms the basis of a transparent and reliable value chain for customers in the future”. explains Mawatari.

“Mitsubishi Chemical Group has a very large technology platform and contacts with diverse industries and companies in the supply chain. This is both a strength and necessity when trying to propose circular solutions which require collaboration across many actors and technologies — from collecting to sorting and recycling.” 

Towards sustainable plastics

The company’s strategy and activities are anchored in its purpose: using innovation to achieve ‘Kaiteki’, meaning the well-being of people and the planet. 

Under this concept, the chemicals company has pledged to reduce group-wide scope 1 and 2 emissions by 30 per cent by 2030 (compared to 2019 levels) and reach net zero emissions by 2050. These are steep targets for a hard-to-abate sector like chemicals, explains Mawatari. But MCG is determined to reach them by shifting to renewable energies, innovations, and investments — of which it has already earmarked ¥100bn in the 10 years to 2030 from 2021. One of its strategies is to develop artificial photosynthesis technology, producing hydrogen and using carbon dioxide captured in its production processes (CCU) to create chemical raw materials. 

Sustainability-related products currently account for a significant portion of MCG’s revenue. These include its diverse range of recycled materials, bioplastics and functional materials, such as bio-based polycarbonate, which contribute to reducing GHG emissions. For example, cars have a reduced need for fuel as modern materials enable lighter vehicles. The company aims to raise sales of sustainability-related products significantly in the coming years, says Mawatari, making sustainability business the “core” and “success factors” of the company.

The company is also becoming engaged in international partnerships for sustainability. It is a founding member of the Alliance to End Plastic Waste and the sole east Asian member of the World Economic Forum’s Low-Carbon Emitting Technologies initiative, where leading chemical companies collaborate on carbon-neutral solutions. 

A groundbreaking report by sustainability consultants Systemiq and the Center for Global Commons at the University of Tokyo outlines proposals that could make the chemicals industry — responsible for some 4 per cent of global GDP and nearly 6 per cent of emissions — become a carbon sink by mid-century. To do so, the industry must use carbon dioxide from the air and biomass to make plastic. These measures could collectively generate millions of jobs in circular chemicals and waste management.

It's a bold vision that MCG aims to deliver through its slogan “Science. Value. Life.” which embraces circular and sustainable approaches in the attempt to decarbonise the world economy.