Pilot project converts automotive shredder residue into high-quality raw materials through gasification.
First trial to eliminate fossil inputs, relying on bio-based feedstocks such as wood chips.
Results suggest chemical recycling could complement mechanical methods and reduce incineration of complex plastic waste.
New Pathways for Automotive Waste
Porsche AG, BASF SE and Austrian technology firm BEST Bioenergy and Sustainable Technologies GmbH have completed a pilot project demonstrating the chemical recycling of complex plastic waste from end-of-life vehicles. The trial, conducted in late September, focused on automotive shredder residue (ASR), a mixture of foams, plastics, films and paint particles that today is largely destined for thermal recovery.
For Porsche, the initiative marks part of a broader effort to integrate circular economy principles into vehicle manufacturing. The company has pledged to increase the share of recycled inputs across its fleet, aligning with industry trends and regulatory pressure in Europe to reduce waste and resource dependence.
Gasification as an Alternative to Incineration
The partners used advanced gasification technology to process the mixed waste. At high temperatures, the waste was converted into synthesis gas, which can be refined into raw materials of comparable quality to fossil-based feedstocks. Unlike mechanical recycling, which is limited by contamination and degradation, chemical recycling can handle plastic streams considered unrecyclable for technical or economic reasons.
This trial was also the first to dispense with fossil inputs entirely, combining ASR with renewable feedstocks such as wood chips. According to the partners, the resulting materials meet specifications for high-performance plastics, including safety-critical automotive applications.
Corporate Perspectives
Dr. Robert Kallenberg, Head of Sustainability at Porsche AG, said the project provided “a foundation to evaluate how we can further develop the circular economy as a sustainability field at Porsche and how we can anchor chemical recycling in our strategy in the long term.” He added that new approaches are needed to expand access to recyclate streams currently lost to incineration.
Martin Jung, President of BASF’s Performance Materials division, stressed that no single technology can address all waste streams. “We prioritize mechanical recycling and continuously improve its efficiency,” he said. “But complementary technologies like chemical recycling are needed to deal with the remaining waste that is still incinerated today.”
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Implications for Industry and Investors
End-of-life vehicle management is gaining urgency as Europe moves closer to stricter circular economy directives and extended producer responsibility rules. Roughly 6 million vehicles are scrapped in the EU each year, producing hundreds of thousands of tonnes of ASR. Most is currently burned for energy recovery, contributing little to material circularity goals.
If scaled, chemical recycling could shift this balance. For automakers, it offers a route to comply with recyclability targets while reducing dependence on virgin fossil-based polymers. For investors, it highlights growing demand for technologies that expand the usable pool of secondary raw materials.
The pilot also illustrates how collaborative models across OEMs, chemical producers and technology providers can accelerate adoption. Porsche gains access to potential recycled content for future vehicles; BASF expands its recycling solutions portfolio; and BEST demonstrates commercial viability for its gasification systems.
Outlook: From Pilot to Scale
While the pilot has proven technical feasibility, scaling chemical recycling of ASR will depend on cost efficiency, regulatory alignment and infrastructure build-out. Questions remain over collection systems, certification standards for recycled feedstocks, and the emissions profile of chemical processes relative to mechanical recycling.
Still, the outcome adds weight to the case for diversified recycling pathways. For C-suite leaders and investors, it suggests chemical recycling may become an integral component of future waste strategies, particularly for sectors with complex, non-mechanically recyclable plastics.
As Europe tightens recycling mandates and global automakers face mounting scrutiny over supply chain sustainability, projects like this will be watched closely. Whether Porsche and BASF move from pilot to commercial deployment could help determine how circular the automotive industry can become over the next decade.
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