SK Incheon Petrochem invests in LDC to recycle waste tires

Korea Development Bank Jungbu headquarters chief Park Young-sang, left, SK Incheon Petrochemical President Choi Yun-seok, center, and LDC CEO Hwang Yong-kyung, right, join hands after signing a contract to invest in LDC at the firm's headquarters in Incheon, March 3. Courtesy of SK Incheon Petrochemical

By Lee Kyung-min

SK Incheon Petrochem, the petrol business subsidiary of SK innovation, the energy affiliate of SK Group, has invested in a promising local pyrolysis startup LDC (Life re-Defined Carbon) to produce 20,000 tons of eco-friendly products per year from as early as the first half of next year.

Pyrolysis is a common technique used to convert plastic waste into solid, liquid and gaseous fuels. It helps in the green transformation of the otherwise fossil-fuel-oriented energy firms.

The petrol affiliate said Sunday that it has signed a three-way contract with the startup and Korea Development Bank, in order to establish a pyrolysis facility. The construction of the facility is the first step toward expediting its waste tire recycling business, which the firm says will foster sustainability-driven green future growth.

The SK investment together with the issuance of convertible bonds (CBs) overseen by the state-run lender will help optimize the faster implementation of pyrolysis technology whereby the stable supply of oil made from recycled waste tires will help guarantee effective production planning.

The SK affiliate expects the plan to strengthen the value chain encompassing waste tire collection, decomposing and recycling, as bolstered by the startup which obtained International Sustainability & Carbon Certification (ISCC PLUS), an international certification system that meets the European Union's Renewable Energy Directives.

Also bolstered by the plan is the efficient circulation of waste materials for the faster realization of a carbon-neutral society.

Korea produces between 300,000 and 400,000 tons of waste tires per year, almost all of which have either been burnt for fuel or ended up in a landfill.

SK Incheon Petrochemical President Choi Yun-seok said the project will become the stepping stone for rapid global expansion with like-minded green recycling-driven business partners.

“We will work closely with LDC and expand our business portfolio in the years to come,” he said. “We will strive to become a business that best exemplifies green growth through innovation in waste circulation.”