Circular Naphtha BP Enters into Offtake Agreement with Clean Planet Energy
Under a ten-year offtake agreement signed between both the parties, Clean Planet Energy will supply naphtha, produced by processing 20,000 tons of waste plastics, to BP from its Teesside facility in the UK initially. Later on, BP will have the right to offtake from its future plants globally. The circular naphtha can be utilized as feedstock into circular plastics value chains.
London/UK – BP has signed a ten-year offtake agreement with Clean Planet Energy, a UK-based company that is developing facilities to convert hard-to-recycle waste plastics into circular petrochemical feedstocks and also into ultra-low sulphur diesel (ULSD). Clean Planet Energy designs and builds facilities — which they refer to as ecoplants — that are expected to process plastics typically rejected by traditional recycling centres and so would otherwise be sent to landfill or incineration.
Under the new agreement, BP will initially receive the output of Clean Planet Energy’s first facility, currently under construction in Teesside in the north-east of England. The Teesside facility is designed to have the capacity to process 20,000 tons a year of waste plastics into naphtha and ULSD.
The naphtha can be utilized as feedstock into circular plastics value chains, which is aligned with BP’s aim of unlocking new sources of value through circularity, keeping products and materials in use for longer. Clean Planet Energy will provide BP with the opportunity to expand the relationship by offtaking products from its future plants beyond Teesside.
BP is already leading a series of major hydrogen and carbon capture and storage projects being developed in and around Teesside that will support decarbonization of the region’s industries.
Clean Planet Energy is currently in the process of developing 12 of its ecoplants globally. From these facilities alone, the company aims to divert 250,000 tons of hard-to-recycle waste plastic annually from landfills and the environment, creating more than 700 green jobs in local communities. Clean Planet Energy plans to announce further ecoplants in the UK, EU, South-East Asia and the Americas later this year.