International Oil Prices Swing Sharply! Huicheng Environmental Protection’s 200,000-Ton Facility Successfully Passes Critical Test—Where Does the Industrial Chain Confidence Come From?

In early 2026, the escalating tensions between the US and Iran led to the disruption of navigation in the Strait of Hormuz, causing significant fluctuations in international crude oil prices. Global energy security and the stability of the petrochemical industry have been pushed to the forefront. As a core raw material for the plastic industry, the sharp fluctuations in crude oil prices directly impact the cost and supply stability of the petrochemical industry. The resource recovery of waste plastics can effectively replace crude oil in producing chemical raw materials, addressing the issue of waste plastic treatment while also serving as an important approach to mitigate fluctuations in raw material prices.

ZhuanSu Vision noted that on March 5, 2026, Huicheng Environmental Protection disclosed on its investor relations platform that its 200,000-ton-per-year industrial pilot plant for comprehensive resource utilization of mixed waste plastics has successfully completed performance testing and passed on-site operational assessment. 3Construction will officially start in mid-month.。

Image source: Hui Cheng Environmental Protection

I. From 20Starting from ten thousand tons, achieving efficient and high-value recycling of waste plastics

In recent years, the disposal and recycling of waste plastics have been a significant issue in the environmental field.

Traditional mechanical recycling of plastics requires meticulous sorting, cleaning, and pelletizing, making it difficult to utilize mixed or contaminated feedstocks, and resulting in low-end products. Conventional pyrolysis processes are complex, involve multiple reaction steps, consume high energy, and produce numerous impurities, with industrial-scale units typically achieving effective product yields of only 60%–80%, making stable industrialization challenging. In contrast, Huicheng Environmental Protection...CPDCCOne-step methodTechnological advancement is significant.No sorting required, no pretreatment required, capable of directly processing various low-value mixed waste plastics, with extremely strong adaptability to raw materials; adoptsOne-step deep catalytic crackingwith a short process and stable operation, it truly meets the requirements of continuous industrial production; verified and calibrated by the plant.Effective hydrocarbon product yield exceeds92%, far exceeding the traditional industry levels, with the product being high-value-added chemical raw materials that can directly connect to the petrochemical industry chain.

In a word, the core advantage of this technology lies inOne-step direct cracking of mixed waste plasticsSignificantly outperforming traditional industry processes, it fundamentally addresses key industry pain points—difficult utilization of mixed waste, high recycling costs, and low conversion rates—enabling efficient and high-value circular utilization of waste plastics.

Image source: Huicheng Environmental Protection

II. 13 kg of waste plastic replaces 3Kilogram of crude oil! CPDCCOne-step technology directly reduces energy dependence

Moreover, Huicheng Environmental Protection’s technological approach has, to a certain extent, reduced the plastic processing industry’s dependence on crude oil.

According to Hui Cheng Environmental's estimation, converting 1 kilogram of waste plastic can produce high-value chemical raw materials equivalent to approximately 3 kilograms of crude oil cracking products. If 50 million tons of waste plastic are processed annually, it would be equivalent to replacing about 100 to 150 million tons of crude oil, accounting for about 20% of China's annual crude oil imports. This provides a feasible solution for China to reduce its dependence on imported crude oil and enhance the resilience of its energy system.

For the plastics industry, this means:Raw material source from“Dependent on oil extractionTurn to “Urban Mineral CirculationIndustrial chain resilience has significantly improved, demonstrating stronger cost hedging capabilities during geopolitical conflicts and periods of oil price surges.

It is worth mentioning that this technology belongs to Huicheng Environmental Protection.Fully independently developed, equipped with proprietary catalysts, reactors, and process patents, is among the few globally to achieveHundred-ton intermediate test→Ten-thousand-ton level demonstration → 2010,000-ton-scale industrializationContinuous and integrated technical approach.

III. Hui Cheng Environmental Protection 20Large-scale promotion of a 10,000-ton waste plastic chemical recycling facility is imminent.

Image source: Huicheng Environmental Protection

Huicheng Environmental Protection System2010,000 tons/Annual Industrial Pilot Plant for Comprehensive Utilization and Resource Recovery of Mixed Waste Plastics, is the world's first large-scale, continuous chemical recycling industrial plant for mixed waste plastics, which, after years of research and engineering validation, will complete a key transition in 2025-2026:

July 2025, Jieyang Demonstration Project in GuangdongTrial production successfulto establish an integrated industrial chain spanning “waste plastics → recycled chemical feedstocks → high-end materials.”

December 2025, approvedChina Petroleum and Chemical Industry Federation72Hourly authoritative assessmentProduct yield and operational stability meet specifications.

February 2026, completed.80Hourly Full-Load Continuous Operation Test100% load stable operation;

In March 2026, it was officially announced that the installation calibration was completed.CPDCCComprehensive validation of the maturity and reliability of deep catalytic cracking technology for mixed waste plastics, ready for industrial promotion.

Hui Cheng Environmental Protection clearly stated that after the 200,000-ton industrial trial facility is calibrated, ...Ready for rapid replication and large-scale rollout.。

Against the backdrop of geopolitical conflicts and accelerated energy structure transformation, the successful commissioning and imminent startup of Huicheng Environmental Protection’s 200,000-ton-per-year facility marks not only the industrial starting point of an entirely new technology route for waste plastic resource recovery, but also a key pathway toward transforming low-value waste plastics—from a long-standing environmental burden on the industry—into a strategically recyclable resource.

Editor: Lily

Source of information: Zhengxing Secretary Interaction, Wind, etc.