Finland-based VTT spins out new company to revolutionise circular plastic recycling

One of the world’s biggest problems currently is the handling of plastic. According to WWF, only 9 per cent of all plastic garbage produced over the course of history has ever been recycled, which underlines the severity of the issue. In addition, there have also been serious problems with the methods for recycling used plastic as well as the number of times that plastic can be recycled.

To solve this issue, experts at Espoo-based VTT Technical Research Centre of Finland Ltd have developed a new process that can affordably convert most of the world’s waste plastics into usable virgin grade materials an infinite number of times.

To further this technology,  the company announced on Tuesday that it is spinning out a new company, Olefy Technologies in October. This business will use the patent-pending technique to recover over 70 per cent of virgin grade polymers and chemical raw material components from plastic waste.

Olefy’s technology

Currently, 8 to 10 per cent of the plastics produced globally are recycled mechanically. However, only a limited share of plastic waste can be mechanically recycled. Additionally, this recycled plastic is ineligible for use in pharmaceutical and food packaging. Most plastic waste ends up in landfills. 

With Olefy, it will be economically feasible to recycle the majority of the world’s plastics with little sorting required by consumers and businesses. This is because virgin quality plastic can be obtained from previously worthless plastic trash.

Matti Nieminen, Head of Technology at Olefy, says, “The economic benefits of having virgin grade components from recycled materials can completely change the dynamic of global oil consumption. Olefy will significantly reduce the need to use new oil for making plastic and maybe even create a new economic incentive to clean up plastic from land and water as it becomes a valued commodity.”

The process

With Olefy’s technology, the process can be completed in a single step, reducing the price of plastic recycling and making recycling a preferred alternative for massive amounts of landfill-bound plastic waste that current methods are unable to process.

Matti Nieminen says, “One of the problems with current recycling methods is that the quality degrades every time plastic is recycled. After several rounds of mechanical recycling, the quality becomes too poor, and the plastic is no longer usable and goes to a landfill. With the Olefy recycling process, the quality of the plastic is equal to virgin grade, so it can be recycled indefinitely and materials no longer need to end up in landfills. In essence, Olefy will make it possible for plastic to be a true part of the circular economy.”

Major consumer goods businesses have set ambitious goals to use recycled plastic in their products and packaging – a typical target is to use recycled plastic in 25 per cent of their packaging by 2025.

Timo Sokka, Head of Business at Olefy, adds, “Demand for recycled plastics is growing much faster than the supply. All major brand owners are committed to fighting climate change, and they are responding to consumers’ growing concerns on waste accumulation by utilising recycled materials in their products. Olefy responds perfectly to these challenges by making plastics recycling truly feasible on an industrial scale.”  

What’s next?

The operational Olefy pilot is currently running at the VTT Bioruukki Pilot Center in Espoo, Finland. The business is also negotiating licence deals for the technology, increasing its business, and developing partnerships with investors. The first industrial demonstration is expected to be operational by 2026.

Olefy’s technology was created as part of VTT LaunchPad, a scientific incubator where VTT researchers, technology, and commercial know-how are combined to revitalise sectors. VTT LaunchPad assists incubator teams in creating fundable spin-off businesses using VTT-owned intellectual property.

Brief about VTT

VTT claims to be a visionary partner in research, development, and innovation. It promotes sustainable growth while taking on the largest global issues of the day and using them as opportunities for growth. The firm has nearly 80 years of research experience with outcomes that are supported by science.