Canada Plastic Waste Pyrolysis Oil Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2025-2034

Canada Plastic Waste Pyrolysis Oil Market was valued at USD 87.76 million in 2024 and is estimated to grow at a CAGR of 15.2% to reach USD 418.86 million by 2034.

This strong growth is being driven by rising concerns over plastic pollution, supportive government policies for sustainable waste management, and the increasing adoption of circular economy practices. Pyrolysis oil derived from plastic waste is gaining momentum as a renewable alternative to fossil-based fuels, offering both environmental and economic benefits. The ability of pyrolysis technology to convert non-recyclable plastics into valuable energy resources is positioning it as a vital solution in tackling Canada’s plastic waste crisis while simultaneously supporting decarbonization goals.

Growing investments in pyrolysis facilities, combined with partnerships between technology providers, energy companies, and municipalities, are further accelerating market expansion. The shift toward advanced recycling methods is reshaping Canada’s waste management landscape, with pyrolysis oil offering applications across multiple industries, including power generation, heating, and petrochemicals. Additionally, the rising demand for low-carbon fuels in transportation and industrial processes is creating new opportunities for pyrolysis oil producers to scale operations and strengthen domestic supply chains.

By plastic type, polyethylene (PE) dominated the market in 2024, generating USD 11.63 million. The dominance of PE is attributed to its widespread use in packaging materials such as plastic bags, bottles, and films, which contribute significantly to Canada’s plastic waste stream. Pyrolysis of polyethylene provides high oil yields, making it a favorable feedstock for pyrolysis facilities. The increasing production and disposal of packaging plastics, coupled with a push for sustainable alternatives, are expected to sustain the demand for PE-based pyrolysis oil throughout the forecast period.

In terms of application, the fuel segment generated USD 44.29 million. The use of pyrolysis oil as a substitute for conventional fossil fuels is gaining traction in the transportation and industrial heating sectors. With rising fuel costs and a strong focus on reducing greenhouse gas emissions, industries are increasingly exploring pyrolysis oil as a cost-effective and sustainable alternative. Moreover, supportive government initiatives promoting renewable fuels are enhancing adoption, making the fuel segment a critical driver of market growth in the country.

Western Canada Plastic Waste Pyrolysis Oil Market generated USD 33.37 million in 2024 supported by its strong industrial base, abundant plastic waste generation, and growing adoption of advanced recycling technologies. Provinces such as Alberta and British Columbia are leading the way, with Alberta leveraging its established petrochemical infrastructure and energy expertise to integrate pyrolysis oil into refining and fuel production. Meanwhile, British Columbia’s progressive environmental policies and focus on circular economy practices are driving investments in waste-to-fuel projects.

Key players operating in the Canada Plastic Waste Pyrolysis Oil Market include Agilyx, Plastic Energy, Nexus Circular, Brightmark, and Alterra Energy, alongside several emerging domestic technology providers and recycling firms. These companies are actively engaged in scaling up pyrolysis capacities, developing modular and advanced reactor technologies, and forming partnerships with oil & gas majors as well as municipal waste management agencies to secure steady feedstock supply. Their strategies focus on long-term offtake agreements for pyrolysis oil with refineries, co-processing collaborations with petrochemical players, and integration of AI-driven waste sorting systems to improve efficiency. Show more