
Project Overview
Carbon Recycling is a key technology that effectively utilizes CO2 as a resource for realizing a carbon neutral society. As of 2019, the industrial sector accounts for 29.3% of total CO2 emissions in Japan, and the chemical industry, which accounts for 18.6% of the industrial sector, emits 60.18 million tons on an annual basis.
Most of the raw materials for plastics are derived from naphtha (crude gasoline), which is obtained from refining petroleum, and about half of the CO2 emitted by the chemical industry is due to processes like cracking naphtha to produce basic chemicals such as ethylene and propylene.
In addition, about 84% of waste plastics are recycled, but some 57% of these are used as a heat source for waste-to-energy plants, etc. (thermal recycling), and are eventually discharged as CO2. So drastic measures are therefore necessary.
The aim of this project, therefore, is to develop four carbon recycling technologies related to the manufacture of plastic raw materials: advanced technology for naphtha cracking furnaces by adopting carbon-free heat sources, technology for producing chemicals from waste plastics and rubber, technology for producing functional chemicals from CO2, and technology for producing chemicals from alcohols.

Project Features
Development of advanced technology for naphtha cracking furnaces by adopting carbon-free heat sources
The aim of this project is to develop cracking furnaces and burners by 2030 that thermally decompose naphtha using ammonia and hydrogen as heat sources which emit zero CO2, and develop technologies that realize levels of energy consumption and cost during manufacturing equivalent to those of current naphtha cracking furnaces.
Development of technology for producing chemicals from waste plastics and rubber
Technologies will be developed to significantly reduce CO2 emissions and manufacturing costs for gasifying, pyrolyzing, and then utilizing the biomass of waste plastics and rubber. The aim of the project is to reduce manufacturing costs 20% by 2030 compared to current recycled plastics through demonstrations at a scale ranging from thousands to tens of thousands of tons per year.
Development of technology for producing functional chemicals from CO2
To realize reduced CO2 emissions and improved functionality, technologies will be developed under this project to manufacture polycarbonate and polyurethane from CO2. The aim of the project is to achieve pricing levels equivalent to ready-made products through demonstrations at a scale ranging from hundreds to thousands of tons per year by 2030.
Development of technology for producing chemicals from alcohols
Photocatalysts capable of achieving high conversion efficiency (at least 10%), will be developed under this project with the aim of reducing hydrogen production costs to 30 yen/Nm³ or lower by reducing the manufacturing cost of artificial photosynthesis panels while improving their durability. The aim of the project is also to realize technologies for manufacturing high yields (80 to 90%) of basic chemicals such as ethylene and propylene from hydrogen and CO2 via alcohols and reduce CO2 emission levels during manufacturing to virtually zero.
Project Summary
Budget
Up to 126.2 billion yen
CO2 Reduction Effect (World)
- In 2030
- 40 million tons/year
- In 2050
- 1.1 billion tons/year
Economic Effect (World)
- In 2030
- 10 trillion yen/year
- In 2050
- 360 trillion yen/year
Research and Development Targets for 2030
- Development of furnaces and burners that thermally decomposes naphtha using ammonia or hydrogen as heat sources without emitting CO2 and realization of technology to reduce energy consumption and cost to the same level as those produced from the current naphtha cracking furnace.
- Development of chemical recycling technologies of waste plastics and rubbers to reduces CO2 emissions and manufacturing costs significantly.
- Reduce CO2 emissions by developing technologies to manufacture polycarbonate and polyurethane from CO2 and improve functionality.
- Develop technologies for producing chemicals from CO2-derived alcohols with the following levels of efficiency and durability:
- Develop photocatalysts having solar-to-hydrogen conversion efficiency of 10% or more, and demonstrate the probability of achieving hydrogen production costs to less than 30 yen/Nm3.
- Accomplish the technology that produce basic chemicals such as ethylene and propylene from hydrogen and CO2 via alcohols with production yield 80-90%, catalyst durability of more than 10,000 hours, 20% lower production cost compared with existing CO2-derived methanol to olefin (MTO) process
Assumptions for estimation of CO2 reduction effect
- Estimates calculated on basis of production volumes of olefin, “green” hydrogen, methanol, ethanol, etc. multiplied by amount of CO2 emissions reduction for target date of 2030.
- Estimates calculated by adding amount of CO2 emissions reduction realized through adoption of carbon-free heat sources in naphtha cracking furnaces for target date of 2050.
Assumption for estimates of economic effect
- Estimates for target date of 2030 calculated by assuming demonstration testing will be implemented at one-thirtieth of full scale.
- The market size for plastics in 2050 will be nearly the same as now.
Assumption for estimates of CO2 reduction effect and economic effect
- The impact of global CO2 reduction and the forecast size of global market have been estimated by calculating backwards from Japan’s 2.8% share of current global production capacity of ethylene plants.
Project Implementing Entities
[Research and Development 1]
Development of advanced technology for naphtha cracking furnaces
Theme | Entity |
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Practical application of naphtha cracking furnaces using ammonia fuel |
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[Research and Development 2]
Development of technology for producing chemicals from waste plastics and rubber
Theme | Entity |
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Developing chemical product manufacturing technologies utilizing used tires |
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Development of manufacturing technology for synthetic rubber core chemicals with carbon resource recycling |
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Development of chemical recycling technology using waste plastics |
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[Research and Development 3]
Development of technology for producing functional chemicals from CO2
Theme | Entity |
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Development of technology to manufacture functional plastic materials from CO2 |
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Establishment of mass production processes and development of applications for multifunctional cyclic carbonate compounds |
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[Research and Development 4]
Development of technology for producing chemicals from alcohols
Theme | Entity |
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Development for commercialization of chemical raw material production by artificial photosynthesis (1) Development and demonstration of technology for producing chemical raw materials from green hydrogen (artificial photosynthesis), etc.. |
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Development for commercialization of chemical raw material production by artificial photosynthesis (2) Development and demonstration of technology for producing basic chemicals from CO2 |
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Development of chemical recycling technology for alcohols and olefins using CO2, and other substances as raw materials |
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