Chinese Firm Niutech Signs Contract for 10,000-50,000 Tons/Year Waste Plastic Pyrolysis to SAF Feedstock

en.Wedoany.com Reported - Chinese pyrolysis technology provider Niutech has signed an equipment supply agreement with a prominent energy company to install an industrial-scale system that converts waste plastic into feedstock for sustainable aviation fuel (SAF). This is the first equipment supply contract between Niutech and the energy company, marking a step toward larger-scale commercial application of waste plastic as an alternative low-carbon fuel feedstock. The project will upgrade an existing refinery, connecting the waste plastic processing unit with a hydrotreating line for SAF production, forming an end-to-end pathway from waste plastic to aviation fuel.

Niutech's continuous pyrolysis system heats waste plastic in an oxygen-free environment, breaking it down into hydrocarbon products, with the pyrolysis oil further processed through hydrotreating to produce SAF. The company states that the technology can process polypropylene, polyethylene, polystyrene, acrylonitrile-butadiene-styrene copolymer, and nylon, either individually or in mixed streams, without requiring extensive washing, sorting, or drying prior to processing. For commercial operations, avoiding complex pretreatment is particularly critical, as waste plastic typically contains different polymers and contaminants.

The planned production line has a single-unit capacity of 10,000 to 50,000 metric tons per year. Niutech has deployed continuous pyrolysis systems in the UK, South Korea, Denmark, Thailand, Vietnam, and China, with multiple projects of approximately 10,000 metric tons per year already delivered. The company states that nearly four decades of pyrolysis technology experience and existing large-scale deployments were key factors in reaching this agreement.

The agreement comes as airlines and fuel producers seek ways to scale up SAF production. The EU's ReFuelEU Aviation regulation requires SAF to account for 2% of aviation fuel supplied at EU airports by 2025, rising to 6% by 2030 and 70% by 2050. While waste oils such as used cooking oil are mature feedstocks, their supply is limited, and waste plastic can provide another source of hydrocarbons for fuel production, particularly aligning with government and industry needs to address both plastic waste and aviation emissions simultaneously.

The project will test, at industrial scale, the integration of waste plastic pyrolysis within a large refinery environment. For large-scale facilities, continuous operation is especially important, as interruptions can significantly impact production economics and throughput. Niutech states that the agreement validates its continuous processing technology and its ability to support refinery-scale projects. The next milestone will be moving beyond a single production line to demonstrate that waste plastic-to-SAF systems can operate reliably and economically, reaching a scale that makes them a meaningful source of aviation fuel.