# Idemitsu Kosan Produces Recycled Naphtha at Chiba Refinery *The Japanese refiner integrated a 20,000-ton chemical recycling unit to crack plastic waste into crude oil substitute, closing the loop on domestic resin supply.* **Published:** October 10, 2026 **By:** Ryo Matsuda **Section:** Energy & Critical Minerals — Japan **Format:** Company Watch **Confidence:** medium **Source:** https://eastasiabrief.com/energy-minerals/idemitsu-kosan-produces-recycled-naphtha-chiba-refinery-639 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - Idemitsu completed commercial naphtha production from plastic pyrolysis oil at Chiba - The Ichihara facility processes 20,000 metric tons of waste plastic per year - Front-end engineering for a second plant began June 30, 2026 ![An engineer inspects a sample of liquid feedstock pouring from a glass cylinder at a petrochemical refinery. (AI-generated image)](https://eastasiabrief.com/media/2026-10-10-d8bcfa7abcaa.webp) *An engineer inspects a sample of liquid feedstock pouring from a glass cylinder at a petrochemical refinery. (AI-generated image)* Idemitsu Kosan confirmed Oct. 9 it has produced commercial naphtha from post-consumer plastic pyrolysis oil at its Chiba refinery, completing Japan's first in-house circular supply chain from waste collection to petrochemical feedstock. The run used oil from a 20,000-ton annual processing facility in Ichihara, which converts shredded plastic trash into synthetic light crude. That unit handles a fraction of Japan's 8.2 million tons of annual plastic waste. Japan incinerates over 50% of its plastic waste for municipal heat recovery. Only about 20% enters mechanical recycling loops, which degrade polymer chains with every melt cycle. Idemitsu and partner Environmental Energy built the Ichihara facility through their joint venture, Chemical Recycle Japan. The partner holds proprietary catalytic cracking intellectual property known as HiCOP. The joint venture started commercial operations on April 27, 2026, after completing trial runs. Workers collect mixed municipal and industrial plastic bales from regional collection partners across eastern Japan. The cracking system heats unsorted polyolefins over a specialized catalyst. The process breaks polymer chains into hydrocarbons without requiring the narrow sorting steps demanded by mechanical recyclers. That catalytic treatment yields a product called chemical recycling oil. The substance exhibits density and boiling curves comparable to imported light sweet crude oil, Idemitsu said. Trucks transfer the synthetic crude across the fence line to the Chiba refinery. Operators blend it directly into the conventional crude distillation column rather than processing it in separate pilot reactors. Refining towers fractionate the mixture into standard cuts, including liquefied petroleum gas, naphtha, kerosene and diesel. The resulting naphtha stream moves into steam crackers to produce ethylene and propylene. The group applies an ISCC PLUS mass-balance chain of custody across its distillation units. The accounting method tracks recycled molecules through mixed refinery streams to certify final circular plastics. Petrochemical converters receive the mass-balanced circular naphtha at contracted delivery gates. They use the input to make circular polymers identical in purity to virgin fossil plastics. Idemitsu has not disclosed the volume of naphtha yielded during the refinery run. The company also withheld its production costs and the purchase prices paid for waste plastic bales. The project insulates Idemitsu from declining domestic gasoline demand. Japanese petroleum refiners face falling fuel sales as the country's population shrinks and hybrid vehicles dominate vehicle fleets. The commercial milestone follows corporate consolidation within the group. Idemitsu renamed Chemical Recycle Japan to Idemitsu Chemical Recycle Japan on Oct. 1, 2026, to solidify corporate oversight. Basic engineering for a second pyrolysis unit started June 30, 2026. Engineering teams are studying site locations near either the Chiba refinery or the Aichi refinery in Chita. A final investment decision on the second unit depends on market adoption and state guidelines. Tokyo plans tighter rules under the Act on Promotion of Resource Circulation for Plastics. Domestic packaging manufacturers face growing pressure to raise recycled resin ratios. Food-contact packaging requires chemical recycling because mechanical methods struggle to eliminate absorbed volatile contaminants. Mechanical recyclers also cannot process layered barrier films commonly used for snack pouches. Pyrolysis handles those mixed laminates, creating a new disposal route for municipal collection centers. Idemitsu plans to use its nationwide fuel transport network to move pyrolysis oil. Rail tank cars and coastal barges can deliver synthetic crude from regional pyrolyzers to coastal refineries. The company intends to commercialize recycled basic chemicals as part of its five-year plan. That corporate strategy runs through fiscal 2030, targeting carbon-neutral refining clusters across central Japan. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | Chemical recycling naphtha production | Competitors LG Chem and SK Geo Centric face Japanese rivalry in certified circular resins | Pyrolysis operators see Japan commercialize closed-loop mass-balance refining infrastructure | Idemitsu processes 20,000 tons of plastic waste annually to replace imported refinery crude | Packaging converters gain certified fossil-substitute polymer feedstock under ISCC PLUS rules | ## In this story - **Companies:** Idemitsu Kosan - **Tickers:** 5019.T - **Exposed:** Environmental Energy - **Policy:** Economic Security - **Impact:** Supply Chain, Cost Structure ## Primary sources 1. idemitsu.com 2. minkabu.jp 3. cehub.jp 4. iru-miru.com 5. iri-group.jp --- Cite as: East Asia Brief, "Idemitsu Kosan Produces Recycled Naphtha at Chiba Refinery," October 10, 2026. https://eastasiabrief.com/energy-minerals/idemitsu-kosan-produces-recycled-naphtha-chiba-refinery-639