# Horizon Energy plans to double South Korea plastic pyrolysis capacity *The company supplies recycled crude to petrochemical refiners under long-term contracts while confronting legal disputes over its equity.* **Published:** October 30, 2026 **By:** So-yeon Jung **Section:** Energy & Critical Minerals — South Korea **Source:** https://eastasiabrief.com/energy-minerals/horizon-energy-plans-double-south-korea-plastic-pyrolysis-capacity-1000 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - The expansion targets growing demand from petrochemical producers seeking circular chemical feedstocks to replace fossil crude. - Horizon Energy operates 14 pyrolysis reactors across two production facilities in South Korea. - Together, the two sites process about 140 metric tons of municipal plastic waste daily. ![An operator stands beside processing equipment as plastic waste moves up a conveyor belt at a pyrolysis facility. (AI-generated image)](https://eastasiabrief.com/media/2026-10-29-12b03b55cca8.webp) *An operator stands beside processing equipment as plastic waste moves up a conveyor belt at a pyrolysis facility. (AI-generated image)* Horizon Energy Corp. said Oct. 28 it will more than double its domestic plastic pyrolysis capacity. The expansion targets growing demand from petrochemical producers seeking circular chemical feedstocks to replace fossil crude. Horizon Energy operates 14 pyrolysis reactors across two production facilities in South Korea. Its primary plant in Yeonggwang runs six units. A newer facility in Gunsan operates eight units. Together, the two sites process about 140 metric tons of municipal plastic waste daily. That volume gives Horizon Energy more than 40% of South Korea's plastic-derived pyrolysis oil output. Doubling capacity will push the fleet beyond 28 reactors. That addition would lift daily processing volume to roughly 280 metric tons of discarded film and mixed packaging waste. Petrochemical refiners use pyrolysis oil as circular naphtha. The feedstock allows chemical producers to manufacture virgin-grade plastics that meet mandatory recycled-content rules in export markets. The company feeds sorted plastic film into cylindrical reactors standing more than five meters tall. The thermal conversion occurs under oxygen-deprived conditions at temperatures between 400 and 500 degrees Celsius. The thermal process breaks complex synthetic polymer chains into smaller hydrocarbon compounds over 12 to 13 hours. The resulting gaseous vapors pass through water-cooled condensing systems to yield liquid crude oil. Standard mixed plastic waste yields about 50% of its initial weight in pyrolysis oil. Higher-grade sorted polyolefin feedstocks push oil recovery rates to between 70% and 80%, Chief Executive Kim Jae-heung said. Horizon Energy removes chlorine and malodorous sulfur fractions using proprietary scrubbers before tanker dispatch. Untreated chlorine corrodes refinery steam crackers and poisons hydrotreating catalysts. HD Hyundai Chemical signed a 10-year crude supply agreement with Horizon Energy in 2023. The petrochemical venture processes the recycled oil at its Daesan refining complex to yield circular chemical products. HD Hyundai Chemical processed more than 10,000 metric tons of pyrolysis oil between 2022 and 2024. It blends circular crude into production streams to supply certified polymers to consumer brands. Horizon Energy reported 6.44 billion won ($4.8 million) in revenue for 2025. The company projected sales of 15 billion to 16 billion won ($11.2 million to $11.9 million) by 2027 as new capacity enters service. Beyond domestic operations, Horizon Energy is deploying waste sorting systems and pyrolysis reactors in Uzbekistan under an international demonstration venture. That project exports turnkey recycling technology to municipal waste operators in Central Asia. The company's expansion plans face financial friction from private debt contracts. In August 2024, Horizon Energy raised 8.5 billion won ($6.3 million) by issuing convertible bonds. The Eco Recycling New Technology Investment Association, managed jointly by Faxton Management and Timefolio Capital, purchased the debt notes. The investment syndicate established a maximum collateral mortgage of 11.05 billion won ($8.2 million) on the Gunsan production plant. The lenders subsequently took a collateral pledge on 40,000 shares held by Kim, covering his entire 100% equity stake in the operating business. The investment syndicate declared an event of default in autumn 2026, initiating foreclosure actions to seize the founder's entire shareholding. Kim disputed the foreclosure terms, triggering a legal struggle over ownership and management control. Horizon Energy has not published capital expenditure figures, site allocations or construction start dates for the planned capacity doubling. Regulatory filings on South Korea's Electronic Disclosure System show no public board resolutions regarding plant capital spending. Horizon Energy's corporate site carries no press statements regarding the planned facility expansion. South Korean chemical recyclers must navigate tightening environmental licensing standards as the Ministry of Environment finalizes mass-balance accounting protocols for chemical recycling. A district court review on the equity pledge injunction filed by Horizon Energy's founder remains scheduled for late November 2026. ## Primary sources 1. kedglobal.com 2. hankyung.com 3. horizonenergy.co.kr 4. jobploy.kr 5. ttlnews.com --- Cite as: East Asia Brief, "Horizon Energy plans to double South Korea plastic pyrolysis capacity," October 30, 2026. https://eastasiabrief.com/energy-minerals/horizon-energy-plans-double-south-korea-plastic-pyrolysis-capacity-1000