Applying science, scaling innovation for plastic circularity

Despite headlines indicating a turning political tide, investment by corporate leaders and science-based innovation for circularity continues. In the May issue of Plastic wrap, we provide a rundown of key deals and technological advances that are driving the growth of the circular plastics value chain. 

Deals and investment

1. LOIM invests in Bloom Biorenewables¹

Our Plastic Circularity strategy participated in the recent Bloom Biorenewables CHF 13 mn series A funding round. The Swiss firm’s innovative bio-based chemistry turns plants into the building blocks for products from plastics to perfumes. The capital raised will be used to scale the company's processes, engineer a first-of-its-kind commercial-scale unit and accelerate market entry.

2. IKEA pledges EUR 1 bn to go fully circular by 2030

IKEA’s investment arm Ingka Group has announced plans to invest EUR 1 bn into recycling ventures as it pursues its target of going “fully circular” by 2030. The money will be allocated to companies specialising in recycling infrastructure for IKEA products including plastic goods and mattresses. The move is part of the firm’s sustainability strategy, which also sets an offset-free net-zero goal by 2050.

Read also: A petroleum alternative: investing in Bloom Biorenewables 

3. Dow makes strategic investment in Xycle

The Dow Chemical Company¹ has purchased a stake in Rotterdam-based chemical and advanced recycling startup Xycle, alongside ING1, Invest-NL, Polestar Capital and Vopak. Xycle will use the money raised towards constructing its first commercial-scale advanced recycling facility, to be located in the Port of Rotterdam. The plant will process 21,000 tonnes of plastic waste annually and is scheduled to be fully operational in the last quarter of 2026.

4. UK firm Epoch Biodesign raises USD 18.3 million

Originating from a high-school science project, Epoch Biodesign’s bio-recycling technology is now set to move from the lab to production thanks to its successful series A raise. The firm aims to have its first small-scale production facility, which will be able to munch through 150 tonnes of waste plastic per year, up and running before the end of 2025. The company harnesses artificial intelligence, synthetic biology and materials science to develop solutions.

5. ReSource attracts USD 15 mn for safer, more sustainable plastics

US advanced manufacturing startup ReSource has pulled in USD 15 mn in funding from investors including Chevron Technology Ventures and Mitsubishi Gas Chemical Company¹. ReSource’s breakthrough technology is a platform molecule that can be used to create plastics and specialty chemicals from low-cost feedstocks including carbon dioxide and agricultural waste, obviating the need to use fossil fuels. the company says its products outperform traditional petrochemicals. 

6. German ‘deeptech’ closes EUR 2.7 mn pre-seed raise

Chemical recycling technology startup Radical Dot has raised EUR 2.7 mn in an oversubscribed pre-seed funding round. The firm’s innovative low-temperature catalytic process aims to address cost challenges in chemical recycling by efficiently transforming mixed plastic waste into chemical building blocks while significantly reducing energy consumption. The firm will use the proceeds to build a continuously operated prototype at its base at the Technical University of Munich, to support future scaling and customer engagement.

Corporate activity

1. Agilyx¹ launches major plastic feedstock supply venture

The Oslo-based chemical recycling technology provider has launched a joint venture with Circular Resources aimed at ensuring the availability of high-quality feedstock for plastic recycling. The long-term objective is for the initiative, Plastyx Ltd, to become Europe’s leading supplier of feedstock to the advanced plastic recycling market, providing consistent high-quality polymers for food-grade and other high-performance use cases. By establishing strategic partnerships and processing capabilities, Plastyx aims to address a key issue that is constraining industry growth. 

2. OMV¹ starts major chemical recycling plant

After 15 years of research and development, Austrian multinational OMV has opened a 16,000-tonne plastic reprocessing plant at its Schwechat refinery near Vienna. The facility is capable of processing a range of hard-to-recycle mixed plastic and can deal with the annual waste produced by 160,000 Austrian households. The firm’s proprietary ReOil^® technology results in circular virgin-quality plastics and is claimed to produce up to 34% less CO₂ emissions than incineration.

3. Nova Chemicals¹ ditches chemical recycling plans

The Canadian firm has cancelled plans for a chemical recycling plant that would have been the largest in Canada. Nova announced a feasibility study for the plant in mid-2023. In an interview with Plastics Recycling Update, a company representative said Nova still sought ways to make a chemical recycling project work, but for the time being would focus on moving “full steam ahead on mechanical recycling”. 

Read also: Investing in innovation to reduce plastic waste

Science and reports

1. US firm scales up production of biopolymer from wastewater

Mango Materials has agreed a deal to purchase biogas from a wastewater treatment facility in Vacaville, California, enabling the commercial scaling up of its process that turns methane into carbon-negative plastic. The company, which was co-founded in 2010 by three female environmental engineers, aims to harness microbes to produce industrial quantities of the biopolymer polyhydroxyalkanoate (PHA) through a decentralised model. Its PHA pellets have already been used to manufacture products for beauty company Natura and fashion brand Stella McCartney. 

2. WEF pushes track and trace for plastic

The World Economic Forum’s Centre for Nature and Climate recently reported on the vital role of traceability in a more sustainable plastics value chain. The WEF highlighted how track and trace technologies can help tackle the issue of transparency in plastics recycling, enabling companies to verify the status of recycled content, ensure regulatory compliance and improve consumer trust, thereby building brand engagement and customer loyalty. For this to happen, the WEF points to the need to foster partnerships, improve regulatory clarity, and agree data standards for traceability.