Japanese refining and petrochemical company Idemitsu Kosan has reportedly decided to begin basic design work, together with its subsidiary Chemical Recycling Japan (CRJ), on a second oil-based chemical recycling facility.
The facility is designed to convert waste plastics into “CR Oil,” a crude-oil-equivalent feedstock, which is then used to produce recycled chemical products at Idemitsu’s existing refining and petrochemical facilities under a mass balance approach. Chiba Prefecture’s Ichihara area (near Chiba Works) and Aichi Prefecture’s Chita area (near Aichi Works) are reportedly being considered as candidate sites. The project is being pursued as part of the “circular economy business expansion” growth area outlined in Idemitsu’s 2026–2030 medium-term management plan.
The project is currently at the basic design stage; specific processing capacity or investment amounts have not been disclosed. The final investment decision is reportedly expected to depend on trends in mandatory recycled-plastic-use regulations and demand outlook. The announcement was made on June 30, 2026.
As Japan and other countries tighten regulations mandating plastic recycling, refining and petrochemical companies have been expanding chemical recycling businesses that make use of their existing facilities, and this decision is reported to reflect that trend.
Chemical recycling is seen as having a lower entry barrier than new-build investment, since it can utilize existing refining and petrochemical facilities, and refiners’ participation is expected to grow as related regulations tighten further. If certification systems for the mass balance approach become standardized, growth in the related market is likely to accelerate.
Points to watch include the timing of basic design completion, whether a final investment decision follows, and which of the candidate sites (Chiba or Aichi) is ultimately selected.