Neste, the world’s leading provider of renewable diesel, renewable jet fuel, and an expert in delivering drop-in renewable chemical solutions, and Mirova, a pioneer impact investor in the natural capital space, announced a combined EUR 10 million investment into Recycling Technologies Ltd (‘Recycling Technologies’), a specialist plastic recycling technology provider. The aim is to accelerate the development of chemical recycling and foster the transition to a circular economy for plastic.
This investment, consisting of EUR 5 million from Neste and EUR 5 million from Mirova through the Althelia Sustainable Ocean Fund1, provides the capital to start building Recycling Technologies’ first commercial RT7000 machine in Scotland. The RT7000 is a scalable patented technology that recycles mixed plastic waste into waxes and petrochemical feedstocks, trademarked as Plaxx®, for new plastic production. It enables the creation of value from plastic waste, which is today difficult or impossible to recycle with mechanical recycling, and is therefore currently disposed of through landfilling, incineration or exported.
To complement the investment, Neste signs a joint technology development agreement and a Plaxx® offtake agreement with Recycling Technologies. This will bring Neste’s know-how and extensive expertise in dealing with low-quality waste and residue raw materials into the collaboration aiming to accelerate the deployment of chemical recycling capacity in Europe. The investment follows Neste’s recent announcement on its aim to process over 1 million tonnes of waste plastic annually from 2030 onwards in order to introduce it as a raw material for chemicals and new plastics.
The Althelia Sustainable Ocean Fund’s investment into Recycling Technologies confirms the fund’s specific mission to finance scalable and impact-aligned businesses that provide innovative solutions to protect and restore our oceans. The RT7000 machine is uniquely suitable to addressing the plastic waste issues in Europe and other developed countries as well as in developing countries in line with Recycling Technologies’ aim to build projects in these regions.
“Neste is committed to developing solutions to accelerate plastics recycling. Collaboration with Recycling Technologies enables us to accelerate the development of one of the very promising chemical recycling technologies. It also complements the partnerships we have already established with other forerunner companies within the plastics value chain. Together, we continue to develop scalable chemical recycling solutions to the global plastic waste challenge with great speed,” says Mercedes Alonso, Executive Vice President, Renewable Polymers and Chemicals, Neste.
“There are more than 8 million tonnes of plastic entering our oceans every year, so we are very excited to support Recycling Technologies, an innovative company providing solutions to make plastic more sustainable. Creating circular value from plastic waste is a necessary step to help cut the scourge of plastic pollution reaching our oceans. The RT7000 machine will represent a solution for both developed and developing countries to quickly address plastic recycling.” says Simon Dent, Blue Investment Director at Mirova Natural Capital.
“We are delighted to have secured this important investment in Recycling Technologies by Neste and Mirova, leaders in renewable products and sustainable investments. This shows the value and foresight of industry and finance collaborating to provide strategic and profitable circular solutions for plastic waste. Mirova’s expertise as pioneers in many areas of sustainable finance supports Recycling Technologies’ plans to provide a long-term solution to plastic waste. Neste’s investment, technical skills and commitment to build recycling capacity provides a valuable and defined market route for Plaxx® into recycled plastic. One of our goals is to help the UK plastics pact meet their 2025 targets for 30% average recycled content across all packaging. This can be achieved by combining existing mechanical technology and new scalable chemical recycling capacity.” Says Adrian Griffiths, CEO & Founder, Recycling Technologies Ltd.