Established: 2022
Climate Fund investment decision: 9/2022
Funding target: the construction of new recycling lines
Funding: 4,2 M€ capital loan with a conversion right
Main anticipated impact: The annual emissions reduction generated by a single pyrolysis plant is estimated at 20 t CO2-eq and the estimated ten-year cumulative emissions reduction potential of the expansion at 0,4 Mt CO2-eq.
Wastewise
The amount of plastic waste generated worldwide has doubled over the past 20 years and only a tenth of plastic waste is recycled appropriately. There are hundreds of different plastic types and not all can be recycled with the same methods. Most recycled plastic waste is processed mechanically, but the mechanical process is not suitable for a range of mixed plastics which could be channelled into a chemical recycling process instead of being incinerated with mixed waste.
The technology developed by Wastewise is suitable for hard-to-recycle plastics, and the pyrolysis oil generated by the process can replace crude oil in plastic and other chemical production, and thus decrease the use of virgin materials. Wastewise’s proprietary chemical recycling technology also enables the use of recycled plastic raw material in challenging applications, such as in food-grade plastic or medical applications. This is because our chemically recycled plastic raw material is identical to virgin raw materials in its features and is not degraded in the recycling process like mechanically processed plastic raw materials.
The Climate Fund’s investment decisions are guided by a set of criteria emphasising impact, against which every case applying for funding from the company is evaluated. Preconditions for funding include a credible plan for repayment of the investment, alignment with the six environmental objectives of the EU’s sustainable investment network, i.e. the “do no significant harm” principle, and that with Climate Fund’s investment the project will be realised earlier, on a larger scale or in the first place. When the preconditions are met, the final selection will be made based on impact criteria, such as emissions reduction potential.
The Climate Fund’s €4.2 million capital loan will be used for the construction of new recycling lines, bolstering the circular economy for hard-to-recycle plastics. The interest on the Climate Fund’s capital loan is priced at the market rate and the capital loan also includes a conversion right.