On September 28, 2026, Idemitsu Kosan Co., Ltd. announced that chemical recycling oil (CR oil) derived from used plastics—produced by its subsidiary Idemitsu Chemical Recycling Japan (formerly Chemical Recycling Japan) using oil-conversion chemical recycling facilities at its Ichihara Plant—had been processed at Idemitsu Kosan’s existing petroleum refining unit at its Chiba Plant to produce naphtha.
CR oil is oil obtained by liquefying used plastics, and its properties are relatively close to light crude oil. Idemitsu Chemical Recycling Japan’s Ichihara Plant began commercial operation in April 2026 and started producing CR oil. Through this latest initiative, the Idemitsu group has established an integrated supply chain encompassing everything from sourcing used plastics from partner companies, to oil conversion, processing at the petroleum refining unit, and naphtha production—all conducted in-house within the group. The naphtha produced will once again serve as a feedstock for petrochemical products, being reborn as plastics and other products.
In Japan, other companies are also advancing initiatives to convert used plastics into oil and reprocess it into products using existing petroleum refining and petrochemical facilities. In March 2024, Mitsui Chemicals, Inc. began manufacturing and selling chemicals and plastics derived from chemical recycling using a mass balance approach, by feeding pyrolysis oil derived from waste plastics sourced from CFP into a cracker at its Osaka Plant. In July 2025, ENEOS Corporation and Mitsubishi Chemical Corporation completed construction of chemical recycling facilities at Mitsubishi Chemical’s Ibaraki Plant. The companies plan to convert used plastics into oil using the supercritical hydrothermal decomposition technology of UK-based Mura Technology, and use the resulting recycled oil as feedstock for both companies’ petroleum refining units and naphtha crackers.
In its medium-term management plan (fiscal years 2026–2030) announced in May 2026, Idemitsu Kosan positioned “expanding circular business in anticipation of a broader circular economy” as one of its growth areas. In June of the same year, the company began basic design work on a second oil-conversion chemical recycling unit, which it plans to improve by incorporating insights gained from the first unit.
【Press release】Idemitsu Group achieves integrated production from used plastic-derived oil to naphtha
【Reference】Chemical Recycling Japan Co., Ltd. to change its name to “Idemitsu Chemical Recycling Japan Co., Ltd.” effective October 1, 2026
【Reference】Start of production of chemical recycling products using waste plastic pyrolysis oil, realizing Japan’s first bio & circular cracker
【Reference】ENEOS and Mitsubishi Chemical complete chemical recycling facilities toward the start of plastic oil conversion
【Related article】ENEOS and Mitsubishi Chemical complete plastic oil-conversion facility in Ibaraki, advancing chemical recycling with supercritical water technology
【Related article】Mitsui Chemicals begins production of chemical recycling products using waste plastic pyrolysis oil
