diff --git a/config/config.default.yaml b/config/config.default.yaml
index 15ad3dd5..90a086ab 100644
--- a/config/config.default.yaml
+++ b/config/config.default.yaml
@@ -669,6 +669,9 @@ industry:
     2040: 0.12
     2045: 0.16
     2050: 0.20
+  HVC_environment_sequestration_fraction: 0.
+  waste_to_energy: false
+  waste_to_energy_cc: false
   sector_ratios_fraction_future:
     2020: 0.0
     2025: 0.1
@@ -1153,3 +1156,6 @@ plotting:
     DC-DC: "#8a1caf"
     DC link: "#8a1caf"
     load: "#dd2e23"
+    waste CHP: '#e3d37d'
+    waste CHP CC: '#e3d3ff'
+    HVC to air: 'k'
diff --git a/config/test/config.overnight.yaml b/config/test/config.overnight.yaml
index 4b627dd4..604e00d8 100644
--- a/config/test/config.overnight.yaml
+++ b/config/test/config.overnight.yaml
@@ -71,6 +71,11 @@ sector:
   gas_network: true
   H2_retrofit: true
 
+industry:
+  HVC_environment_sequestration_fraction: 0.5
+  waste_to_energy: true
+  waste_to_energy_cc: true
+
 solving:
   solver:
     name: glpk
diff --git a/doc/configtables/industry.csv b/doc/configtables/industry.csv
index d1b560ed..cee06c97 100644
--- a/doc/configtables/industry.csv
+++ b/doc/configtables/industry.csv
@@ -16,6 +16,9 @@ petrochemical_process _emissions,MtCO2/a,float,The emission of petrochemical pro
 HVC_primary_fraction,--,float,The fraction of high value chemicals (HVC) produced via primary route
 HVC_mechanical_recycling _fraction,--,float,The fraction of high value chemicals (HVC) produced using mechanical recycling
 HVC_chemical_recycling _fraction,--,float,The fraction of high value chemicals (HVC) produced using chemical recycling
+HVC_environment_sequestration_fraction,--,float,The fraction of high value chemicals (HVC) put into landfill resulting in additional carbon sequestration. The default value is 0.
+waste_to_energy,--,bool,Switch to enable expansion of waste to energy CHPs for conversion of plastics. Default is false.
+waste_to_energy_cc,--,bool,Switch to enable expansion of waste to energy CHPs for conversion of plastics with carbon capture. Default is false.
 ,,,
 sector_ratios_fraction_future,--,Dictionary with planning horizons as keys.,The fraction of total progress in fuel and process switching achieved in the industry sector.
 basic_chemicals_without_NH3_production_today,Mt/a,float,"The amount of basic chemicals produced without ammonia (= 86 Mtethylene-equiv - 17 MtNH3)."
diff --git a/doc/release_notes.rst b/doc/release_notes.rst
index 3bf1d15c..ef019ad6 100644
--- a/doc/release_notes.rst
+++ b/doc/release_notes.rst
@@ -10,6 +10,16 @@ Release Notes
 Upcoming Release
 ================
 
+* Added option ``industry: HVC_environment_sequestration_fraction:`` to specify
+  the fraction of carbon contained plastics that is permanently sequestered in
+  landfill. The default assumption is that all carbon contained in plastics is
+  eventually released to the atmosphere.
+
+* Added option for building waste-to-energy plants with and without carbon
+  capture to consume non-recycled and non-sequestered plastics. The config
+  settings are ``industry: waste_to_energy:`` and ``industry:
+  waste_to_energy_cc``. This does not include municipal solid waste.
+
 * Bump minimum ``powerplantmatching`` version to v0.5.15.
 
 * Add floating wind technology for water depths below 60m
diff --git a/scripts/prepare_sector_network.py b/scripts/prepare_sector_network.py
index 432d9a82..d35af1c9 100755
--- a/scripts/prepare_sector_network.py
+++ b/scripts/prepare_sector_network.py
@@ -906,8 +906,6 @@ def add_ammonia(n, costs):
 
     nodes = pop_layout.index
 
-    cf_industry = snakemake.params.industry
-
     n.add("Carrier", "NH3")
 
     n.madd(
@@ -2865,7 +2863,7 @@ def add_industry(n, costs):
     if demand_factor != 1:
         logger.warning(f"Changing HVC demand by {demand_factor*100-100:+.2f}%.")
 
-    p_set_plastics = (
+    p_set_naphtha = (
         demand_factor
         * industrial_demand.loc[nodes, "naphtha"].rename(
             lambda x: x + " naphtha for industry"
@@ -2874,7 +2872,7 @@ def add_industry(n, costs):
     )
 
     if not options["regional_oil_demand"]:
-        p_set_plastics = p_set_plastics.sum()
+        p_set_naphtha = p_set_naphtha.sum()
 
     n.madd(
         "Bus",
@@ -2889,7 +2887,7 @@ def add_industry(n, costs):
         spatial.oil.naphtha,
         bus=spatial.oil.naphtha,
         carrier="naphtha for industry",
-        p_set=p_set_plastics,
+        p_set=p_set_naphtha,
     )
 
     # some CO2 from naphtha are process emissions from steam cracker
@@ -2900,19 +2898,114 @@ def add_industry(n, costs):
     )
     emitted_co2_per_naphtha = costs.at["oil", "CO2 intensity"] - process_co2_per_naphtha
 
-    n.madd(
-        "Link",
-        spatial.oil.naphtha,
-        bus0=spatial.oil.nodes,
-        bus1=spatial.oil.naphtha,
-        bus2="co2 atmosphere",
-        bus3=spatial.co2.process_emissions,
-        carrier="naphtha for industry",
-        p_nom_extendable=True,
-        efficiency2=emitted_co2_per_naphtha,
-        efficiency3=process_co2_per_naphtha,
+    non_sequestered = 1 - get(
+        cf_industry["HVC_environment_sequestration_fraction"],
+        investment_year,
     )
 
+    if cf_industry["waste_to_energy"] or cf_industry["waste_to_energy_cc"]:
+
+        non_sequestered_hvc_locations = (
+            pd.Index(spatial.oil.demand_locations) + " non-sequestered HVC"
+        )
+
+        n.madd(
+            "Bus",
+            non_sequestered_hvc_locations,
+            location=spatial.oil.demand_locations,
+            carrier="non-sequestered HVC",
+            unit="MWh_LHV",
+        )
+
+        n.madd(
+            "Link",
+            spatial.oil.naphtha,
+            bus0=spatial.oil.nodes,
+            bus1=spatial.oil.naphtha,
+            bus2=non_sequestered_hvc_locations,
+            bus3=spatial.co2.process_emissions,
+            carrier="naphtha for industry",
+            p_nom_extendable=True,
+            efficiency2=non_sequestered
+            * emitted_co2_per_naphtha
+            / costs.at["oil", "CO2 intensity"],
+            efficiency3=process_co2_per_naphtha,
+        )
+
+        n.madd(
+            "Link",
+            spatial.oil.demand_locations,
+            suffix=" HVC to air",
+            bus0=non_sequestered_hvc_locations,
+            bus1="co2 atmosphere",
+            carrier="HVC to air",
+            p_nom_extendable=True,
+            efficiency=costs.at["oil", "CO2 intensity"],
+        )
+
+        if len(non_sequestered_hvc_locations) == 1:
+            waste_source = non_sequestered_hvc_locations[0]
+        else:
+            waste_source = non_sequestered_hvc_locations
+
+        if cf_industry["waste_to_energy"]:
+
+            n.madd(
+                "Link",
+                spatial.nodes + " waste CHP",
+                bus0=waste_source,
+                bus1=spatial.nodes,
+                bus2=spatial.nodes + " urban central heat",
+                bus3="co2 atmosphere",
+                carrier="waste CHP",
+                p_nom_extendable=True,
+                capital_cost=costs.at["waste CHP", "fixed"]
+                * costs.at["waste CHP", "efficiency"],
+                marginal_cost=costs.at["waste CHP", "VOM"],
+                efficiency=costs.at["waste CHP", "efficiency"],
+                efficiency2=costs.at["waste CHP", "efficiency-heat"],
+                efficiency3=costs.at["oil", "CO2 intensity"],
+                lifetime=costs.at["waste CHP", "lifetime"],
+            )
+
+        if cf_industry["waste_to_energy_cc"]:
+
+            n.madd(
+                "Link",
+                spatial.nodes + " waste CHP CC",
+                bus0=waste_source,
+                bus1=spatial.nodes,
+                bus2=spatial.nodes + " urban central heat",
+                bus3="co2 atmosphere",
+                bus4=spatial.co2.nodes,
+                carrier="waste CHP CC",
+                p_nom_extendable=True,
+                capital_cost=costs.at["waste CHP CC", "fixed"]
+                * costs.at["waste CHP CC", "efficiency"],
+                marginal_cost=costs.at["waste CHP CC", "VOM"],
+                efficiency=costs.at["waste CHP CC", "efficiency"],
+                efficiency2=costs.at["waste CHP CC", "efficiency-heat"],
+                efficiency3=costs.at["oil", "CO2 intensity"]
+                * (1 - options["cc_fraction"]),
+                efficiency4=costs.at["oil", "CO2 intensity"] * options["cc_fraction"],
+                lifetime=costs.at["waste CHP CC", "lifetime"],
+            )
+
+    else:
+
+        n.madd(
+            "Link",
+            spatial.oil.naphtha,
+            bus0=spatial.oil.nodes,
+            bus1=spatial.oil.naphtha,
+            bus2="co2 atmosphere",
+            bus3=spatial.co2.process_emissions,
+            carrier="naphtha for industry",
+            p_nom_extendable=True,
+            efficiency2=emitted_co2_per_naphtha * non_sequestered,
+            efficiency3=process_co2_per_naphtha,
+        )
+
     # aviation
     demand_factor = options.get("aviation_demand_factor", 1)
     if demand_factor != 1:
@@ -3122,7 +3215,6 @@ def add_waste_heat(n):
     # TODO options?
 
     logger.info("Add possibility to use industrial waste heat in district heating")
-    cf_industry = snakemake.params.industry
 
     # AC buses with district heating
     urban_central = n.buses.index[n.buses.carrier == "urban central heat"]
@@ -3587,6 +3679,7 @@ if __name__ == "__main__":
     update_config_from_wildcards(snakemake.config, snakemake.wildcards)
 
     options = snakemake.params.sector
+    cf_industry = snakemake.params.industry
 
     investment_year = int(snakemake.wildcards.planning_horizons[-4:])