Rotterdam-based Pryme, a chemical plastic recycling company, has secured an unsecured term loan facility from Dutch-based Energietransitiefonds B.V. (ETF-R) in either €4M or, at Pryme’s option, €5M, with a term until June 2027. The interest rate of the loan is 9.0 per cent per annum.
Principal payments are deferred until maturity unless early repayment occurs. Interest is paid quarterly, except during a grace period until July 2025.
Additionally, Pryme will issue 300,000 new shares to ETF-R upon loan repayment or early prepayment, as per a decision made in April 2024.
If Pryme opts to build a pyrolysis plant in Rotterdam, Netherlands, the loan term and interest grace period will be extended by one year.
Prior to this, in April 2024, Pryme secured €10M in funding from Taranis Investment Limited via its Taranis Carbon Ventures fund. The funds helped the company accelerate its technology rollout.
Converting plastic waste into valuable products
According to a statement by InnovationQuarter, the need for innovation in plastic recycling is evident as global plastic production has surged from 1.5 million tons in 1950 to 359 million tons in 2018. However, the majority of this plastic waste remains unrecycled, leading to substantial environmental harm.
In Europe, over two-thirds of plastic waste is currently not recycled. To address this issue, the EU has set targets for incorporating recycled material into new plastic products by 2030, while the Netherlands aims for complete recycling of raw materials by 2050.
Pryme’s Rotterdam factory converts 40,000 tons of waste plastic into 30,000 tons of Liquid Plastic Waste (LPW) annually. This LPW is processed into naphtha, a raw material for new plastic with properties equivalent to fossil plastics.
Founded in 2018 and led by current CEO Christopher Hervé, Pryme is a cleantech company specialising in converting plastic waste into pyrolysis oil through industrial-scale chemical recycling.
The company says, “We provide a fast, sustainable and scalable solution to waste plastics by converting PP and PE plastics into reusable feedstock. In short, we’re making plastics circular.”
“We’re on a mission to innovate within the waste plastics treatment cycle and help realise a zero-carbon, zero-waste solution. We take a pragmatic and intelligent approach to pioneering waste solutions, seeking out ambitious companies to partner with and refine waste and recycling methods around the world.”
To foster a low-carbon circular plastic economy, Pryme aims to unlock the expansive potential of its technology. This involves developing a diverse portfolio of owned-operated plants in collaboration with strategic partners.
The company is listed on Euronext Oslo Growth market.
Capital utilisation
Pryme plans to draw a loan from ETF-R before December 2024 to finance the development of new production sites, ongoing improvements to Pryme One, and general corporate expenses.
This includes technology development, site selection and development, permit applications, and front-end plant engineering for new production sites.
In a statement translated from Dutch, Pryme CEO Hervé, says, “This loan facility from Energy Transition Fund Rotterdam is an important milestone for Pryme. It allows us to increase our production and accelerate our plans for a second factory. This brings us one step closer to our mission to provide a sustainable solution to the global plastic waste problem.”
Brief about ETF-R
The Energy Transition Fund Rotterdam is a €100M fund aimed at sustainable investments by scale-ups and large companies. Its goal is to decrease CO2 emissions, minimise raw material usage, and enhance air quality.
The fund management is handled by Innovation Quarter, the regional economic development agency for the greater Rotterdam The Hague area.
Erik van der Zant, Head of Investing at InnovationQuarter, says, “The investment in Pryme fits perfectly with the objectives of the Rotterdam Energy Transition Fund. We want to reduce the CO2 impact of all activities developed in the municipality – with a special focus on the port industrial complex – and use innovations to position the port of Rotterdam as a leading center for plastic recycling.”
“Pryme’s technology turns waste plastic into a valuable, reusable raw material for industry. It, therefore, contributes to reducing the Rotterdam industry’s dependence on fossil raw materials and reducing (fossil) CO2 emissions in our region and the Netherlands.”
Previously, Innovation Quarter helped Pryme in applying for the Demonstration Energy and Climate Innovation (DEI+) subsidy and supported the company in finding a location for PlantOne.
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