London-based Plastic Energy, a company that offers a global and sustainable solution to prevent plastic pollution, has raised €145M in a fresh round of funding. The investment came from LetterOne, Axens, and M&G.
New investor LetterOne is an entrepreneurial UK-based firm investing through its L1 New Energy arm.
Axens collaborates with Plastic Energy
France headquartered Axens is a provider of technologies, products, services and equipment, for the production of cleaner, renewable, gas, fuels and chemicals. With this direct investment, Plastic Energy and Axens have agreed to collaborate and will market and license Plastic Energy’s patented, industrially proven advanced recycling technology.
The technology uses a thermal anaerobic conversion (TAC) pyrolysis process to recycle end-of-life plastics that would otherwise be destined for landfill, incineration, or end up in the environment. The plastic waste from Plastic Energy’s process is turned into raw materials that can be used to create virgin-quality polymers.
Stephane Fedou, Plastic Circular Economy Director at Axens, says, “We are glad to announce our investment and strategic partnership with Plastic Energy. Achieving a true circular economy of recycled polymers, including for food contact and health care grade, is a largely shared objective. And, leveraging Plastic Energy and Axens complementary operational and technological skills, we can now offer a combination of proven technologies to make it possible.”
Use of the funds
The proceeds from this round will help the company accelerate growth and enable it to expand its technology and global portfolio of recycling plants.
Carlos Monreal, Founder and CEO of Plastic Energy says, “It is encouraging to have the support of these global companies who share our vision in reducing plastic waste and have confidence in our patented and proven chemical recycling technology. This investment will have a big impact, enabling us to recycle more plastics globally, and build a more sustainable and circular economy.”
“Recycling plastics that no-one else can”
Founded in 2017, Plastic Energy claims to be a global leader in chemical recycling, offering a sustainable solution to prevent plastic pollution by transforming previously unrecyclable plastic waste into a valuable resource.
The company has developed a patented technology called thermal anaerobic conversion in which waste plastic is heated in the absence of oxygen to form saturated hydrocarbon vapour which is distilled to produce naphtha and diesel.
Recycled oils, called TACOIL, from Plastic Energy’s process are used in the creation of virgin-quality food-grade packaging, which benefits the circular economy.
Plastic Energy currently has two chemical recycling plants that are in constant operation in Spain and is one of the few companies that has sold TACOIL from the conversion of end-of-life plastic waste to replace fossil oils in the manufacturing of new plastics.
The company also has several plants currently under construction in France and the Netherlands.
Plastic Energy has agreements with key players in the chemical sector, such as SABIC, TotalEnergies and ExxonMobil, and recycled plastic made from its process has already been incorporated into packaging and products for brands such as Unilever and Tupperware.