Closed Loop Fund, an investment fund that finances circular supply chains and recycling infrastructure, is making a $3 million investment in PureCycle Technologies, which has plans to create a polypropylene (PP) recycling facility in Ohio at a former Dow Chemical Co. polystyrene plant that closed in 2016.
The technology, which was invented by scientists at Proctor & Gamble, will produce recycled PP that has virgin-like properties.
More CPG companies want post-consumer recycled PP, and PureCycle’s technology will help ensure there is more material available for use by increasing the recovery of contaminated and colored PP into applications such as food packaging.
The facility will take in post-consumer mixed rigid plastics from material recovery facilities (MRFs) and postindustrial scrap materials. This will give both municipalities and MRFs domestic markets in the Midwest.
P&G announced the technology in July 2017. When fully operational, the facility expects to have the capacity to handle more than 105 million pounds of recycled PP each year. The Closed Loop Fund plans to invest $100 million USD total by 2020 in projects that advance recycling infrastructure and circular supply chains to increase the limited applications that recycled PP is useful for.
Financial backers of the fund include 3M, Coca-Cola, Dr. Pepper Snapple, Johnson & Johnson, Keurig Green Mountain, Nestlé Waters North America, PepsiCo, Proctor & Gamble, Unilever and Walmart. These partners all want post-consumer recycled PP, but recognize a need for technologies to ensure there is enough materials available.