Chinese pyrolysis technology company Niutech said on Thursday it has secured a £22 million ($28.7 million) order from a UK client for an industrial-scale system that converts waste plastics into chemical feedstocks.

The deal covers a 60,000-tonne-per-year continuous pyrolysis production line, Niutech said in a statement. The company stated that the order, valued at 198 million yuan, will strengthen its foothold in Europe as governments tighten regulations on plastic recycling.

Policy Push Drives Demand

Britain and the European Union are stepping up circular economy policies, including the UK’s plastic packaging tax, which rose in April to £223.69 9 ($301.25) per tonne for packaging with less than 30 percent recycled content.

Such measures have driven demand for chemical recycling technologies, which can convert hard-to-recycle plastics into raw materials for the production of new plastics.

Niutech said its large-scale continuous pyrolysis system, developed over 30 years, increases processing efficiency by 30 percent while lowering energy consumption and carbon emissions.

Treating 100,000 tonnes of plastic with the technology can cut 290,000 tonnes of carbon dioxide, according to the company’s research.

Client Selection After Industry Review

The UK customer evaluated projects using Niutech’s systems, including one backed by German chemicals group BASF, before awarding the contract, the company said.

“The signing of this UK order opens up a new growth point for the company in the high-end European market,” a Niutech executive said. “Recognition of Niutech’s technology by leading clients further validates our advantageous position in the pyrolysis equipment sector.”

The company, based in Jinan, China, supplies pyrolysis lines for processing waste plastics, tires and oil sludge. It stated that its latest order bolsters the growing international demand for technologies that reduce reliance on virgin, fossil-based plastics while addressing mounting waste challenges.

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