Idemitsu Kosan Produces Naphtha From Recycled Plastics

Idemitsu Kosan Produces Naphtha From Chemically Recycled Oil

Idemitsu Kosan announced September 28 that its Chiba Complex in Ichihara, Chiba Prefecture, successfully produced naphtha by processing chemically recycled oil (CR oil) derived from used plastics through an existing petroleum refining system. The development connects plastic chemical recycling with conventional refining infrastructure and establishes another step toward circulating materials within the company’s operations. The Chiba Complex is also home to an oil-to-chemicals recycling facility operated by Chemical Recycle Japan, creating an integrated system in which used plastics can be converted into CR oil and subsequently processed into a petroleum-derived chemical feedstock.

Chiba Complex Integrates Chemical Recycling With Refining

The latest production demonstrates that CR oil can be processed using the Chiba Complex’s existing petroleum refining system to produce naphtha. This approach allows chemically recycled material generated at the site to enter an established refining process rather than requiring a separate downstream production route. The resulting naphtha represents an intermediate product that can support the broader circulation of materials within chemical manufacturing. By combining the oil-chemical recycling facility with existing refining capabilities, the Idemitsu Kosan Co Ltd group is building a connected supply structure that links used plastic recovery, CR oil production, refining, and chemically recycled products.

Chemical Recycle Japan Begins Commercial CR Oil Production

Chemical Recycle Japan began commercial operation of its oil-to-chemicals recycling facility at the Chiba Complex in April 2026. The facility produces CR oil equivalent to light crude oil from used plastics, providing the feedstock required for the latest naphtha production process. The commercial operation gives the recycling business an established production base within the complex and supports a more seamless flow of chemically recycled material. Chemical Recycle Japan Co Ltd is responsible for producing the CR oil, while the existing refining infrastructure provides the processing route used to convert that material into naphtha.

Idemitsu Group Expands Circular Business Operations

The development forms part of the Idemitsu Group’s broader effort to strengthen its oil-chemical recycling business and support expansion of the circular economy. Instead of treating used plastics solely as waste, the process enables recovered material to be converted into CR oil and then incorporated into a petroleum refining operation. The resulting naphtha can therefore serve as part of a circulation-oriented product chain. The integrated model also demonstrates how existing industrial assets can be connected with newer recycling facilities to create a continuous material flow. This approach is particularly relevant to Japan, where the company is developing its chemical recycling operations at the Chiba Complex.

Existing Refining Infrastructure Supports Recycled Feedstock

The successful production of naphtha is significant because it confirms the practical processing of CR oil through an operating petroleum refining system at the Chiba Complex. The development does not rely solely on producing recycled oil; it extends the recycling chain into an established refining process and creates a route for chemically recycled feedstock to become a refined chemical product. With commercial CR oil production already underway from used plastics, the latest step connects feedstock generation with downstream processing. The Idemitsu Group’s continued development of this model is intended to strengthen its oil-chemical recycling business and contribute to wider circulation of materials.

Industry Impact & Outlook

The development strengthens the connection between plastic chemical recycling and conventional petroleum refining by demonstrating that CR oil can be processed into naphtha through an existing industrial system. For the automotive and chemical industries, the significance is tied to the availability of recycled feedstocks that can enter established manufacturing chains without requiring an entirely separate refining infrastructure. The Chiba Complex provides an integrated base for CR oil production and subsequent processing, while the April 2026 commercial start establishes an operating foundation for the business. The next phase will depend on how the Idemitsu Group expands this circulation-oriented model and develops applications for chemically recycled products.

Frequently Asked Questions

What did Idemitsu Kosan produce from chemically recycled oil?
Idemitsu Kosan produced naphtha by processing chemically recycled oil made from used plastics through the Chiba Complex’s existing petroleum refining system. Chemical Recycle Japan began commercial operation of its oil-to-chemicals recycling facility at the complex in April 2026, producing CR oil equivalent to light crude oil. The latest process connects that recycled feedstock with established refining infrastructure, creating a continuous route from used plastics to CR oil and then naphtha. The development supports the Idemitsu Group’s effort to expand oil-chemical recycling operations and promote a circulation-oriented business model.