Sadara sign MOU with Gulf Interchem to build chemical by-product recycling facility to produce specialty chemicals for lubricant additives

Sadara Chemical Company, based in Jubail, Saudi Arabia, has signed a Memorandum of Understanding (MOU) with Gulf Interchem, a Bahrain-based technology company focused on innovating in the field of low-value chemical by-product recycling, for a by-products upgrade project based in PlasChem Park, a collaborative industrial park between Sadara and the Royal Commission for Jubail and Yanbu (RCJY) in Jubail Industrial City II.

Under the terms of the non-binding agreement, Gulf Interchem will build an integrated treatment plant to recover valuable molecules from Sadara by-products and convert them into fine chemicals that can be used in the production of specialty chemicals such as corrosion inhibitors, adhesives, lubricants and others.

“This supply agreement with Gulf Interchem carries numerous advantages and benefits for Sadara, its partners and local and regional industries, as it not only allows us to responsibly utilize a portion of our by-products, but also localizes a by-products handling component crucial not only to Sadara, but to many of the chemicals players in PlasChem Park as well,” said Mohammad Al-Azzaz, director of Value Park, Sadara.

Al-Azzaz said that the company will continue to explore further opportunities for the other by-product streams that will be produced by the Sadara Chemical Complex.

The plant will be the first of its kind serving the Jubail petrochemical industry in the recycling of by-products and will help import new technologies for managing by-products. It will also generate value for Sadara through the recycling of its low-value by-product streams, increasing the value of exports, creating jobs and reducing Sadara’s environmental, as well as carbon, footprint, through less waste disposal.

“We strive to explore new and innovative ways to maximize the use of chemical by-products and waste streams, thereby creating value for our partners and reducing their environmental footprint. This project with Sadara is especially exciting for us as it is unique in its approach and its capabilities,” said Bernard van den Wouwer, managing director at Gulf Interchem.

“We will receive various organic chemical by-products streams and through innovative recycling processes, these streams will be converted into finished chemical molecules with multiple market applications. Some of the products will be destined for the commodity market and others for the specialty chemical market,” he said.

Gulf Interchem has developed advanced treatment processes to recycle by-products and waste streams into valuable chemical products. Beyond the economic value creation, the project’s planned recycling solutions will also have an immediate environmental impact, reducing carbon dioxide emissions by approximately 50,000 tons per year. It is also estimated that the project will create 50 highly specialized jobs while supporting Saudi Arabia’s growing and developing downstream manufacturing industries in the long term.

On a related note, Al-Azzaz revealed that many of the investors in PlasChem Park will conclude their planned project’ engineering activities by early next year, with ground-breaking activities to take place in the third quarter of 2018.