Workshop Report: Exploring the Upscaling of Pyrolysis in the Chemical Sector
By Dr. Dagmar Kiyar, Wuppertal Institute
In the EU-CHINA BRIDGE online workshop “Upscaling Pathways for Pyrolysis for Chemical Recycling in Europe“, on 17th of September 2025, experts from the German and Dutch chemical sectors came together to discuss the challenges and opportunities surrounding the upscaling of pyrolysis for chemical recycling. The exchange offered valuable insights into closing cost gaps, navigating market uncertainties, exploring mass balance methodologies, understanding regulatory challenges in building a circular chemical industry and discussing potential solutions.
Closing the Cost Gap
Participants highlighted key challenges for the petrochemical industry. Fossil-based production remains the default – cheap, well-understood, and fully optimized. Even though many installations are old, their efficiency and depreciation status keep them competitive. At the same time, societal and environmental pressures are driving the need to reduce CO₂ emissions and hazardous outputs. Although pyrolysis as such is not new, the technology is still evolving – there is a strong need for scalable solutions, though the optimal type of pyrolysis has yet to be determined.
Workshop participants also noted that market demand for recycled ingredients remains limited, and customers are generally unwilling to pay a premium. Policy measures mandating the use of recycled content are therefore essential for advancing circularity in the industry.
On a positive note, collaboration and co-location are emerging as effective strategies to reduce costs and improve outcomes. Unlike a few years ago, when companies pursued individual projects, today’s trend toward cooperation offers promising synergies that can accelerate the transition toward a more circular economy.
Mass Balances: A Systemic Perspective
Workshop participants highlighted the draft Implementing Decision on the calculation, verification and reporting of data on recycled plastic content in single-use plastic beverage bottles as an important factor in improving recycling yields. They agreed that mass balance accounting – the method used to track the proportion of recycled material during production – will be a decisive factor in determining which technologies prevail and which fall by the wayside.
Participants discussed the complexity of using waste as a raw material. Different stakeholders, from private companies to municipal authorities, have different interests and control over waste streams. Not all plastics are as clean or standardized as PET bottles, and the varying quality affects both process efficiency and economic viability.
From a policy perspective, participants pointed out that mass balancing poses sensitive challenges. Environmental taxes or higher costs for sustainably manufactured products can increase overall prices and place additional financial pressure on producers and consumers. They agreed that mandatory recycling quotas could drive system-wide optimization of credits, but that clarity on credit allocation and cost management is essential. The harmonization of metrics – such as emissions versus recyclability or penalties versus credits – was highlighted as crucial in order to effectively support the circular economy.
Market for Chemically Recycled Polymers
A key topic of discussion at the workshop was the lack of market readiness of chemically recycled polymers. Participants noted that without clear legislation, the adoption of higher-cost recycled products remains unlikely, creating a “chicken and egg” problem for investors. Although demand for chemical recyclates is expected to grow significantly by 2030, current supply is insufficient – potentially leaving a gap of up to one million tons. While there is strong interest in securing products for 2028, there is virtually no market for chemical recyclates today.
Uncertainty is a major barrier for investors; they remain hesitant because no technology has yet clearly established itself, and even established industries need further innovation in order to scale. The participants emphasized that this uncertainty increases the investment risk, even if, as shown, there is the prospect of long-term demand.
Harmonized policies – such as consistent landfill bans across Europe – were highlighted as crucial to boost investor confidence. Current delays in EU Circular Economy legislation, which still permits landfilling until 2035–2040, were seen as weakening the business case for new recycling infrastructure. Participants stressed that clear and timely regulatory frameworks, such as Packaging and Packaging Waste Regulation (PPWR), are urgently needed to stimulate investment and accelerate the transition toward a circular chemical economy.
