Recycling in Australia: Chemical recycling expands amid plastic waste challenges

Australia’s chemical recycling is in its early stages but increasingly gaining in popularity as a complementary solution to mechanical recycling, according to Toby Manners, CEO of GPT Circular, a plastic waste management company based in Australia and Indonesia.

To scale up these technologies, GPT Circular recently announced a “landmark” agreement with iQRenew, an advanced waste recovery company. The partnership aims to foster a new set of specification criteria for soft plastics in advanced chemical recycling in the country. 

Packaging Insights speaks to Manners about the country’s waste management performance, and how the partnership aims to transform locally collected soft plastics into high-quality recycled materials and tackle contamination in plastic recycling. 

Manner indicates that waste management in Australia faces many challenges, such as logistics, feedstock quality, quantity, pricing, and technology.

“Transporting waste materials to centralized chemical recycling facilities can be costly and inefficient while ensuring a consistent supply of clean and suitable plastic waste remains challenging. Contaminants can hinder processing efficiency, and the cost of chemically recycled plastics can be higher than virgin plastics, which continues to impact market adoption,” he explains. 

“Chemical recycling technologies are still developing, and scaling them up to industrial levels requires significant investment and regulatory approvals.”

The partnership aims to capitalize on iQRenew’s Soft Plastic Engineered Commodity (SPEC) facility, which integrates sorting, washing, and quality control processes to ensure that materials are transformed into renewable products. 

GPT Circular aims to create a feedstock supply model to support the chemical recycling industry in Australia.Chemical recycling 

Chemical recycling converts plastic waste into substances that can be used as raw materials by changing its chemical structure. The process demands that all materials are free from contaminants such as food residues, inks, and adhesives. iQRenew has built Australia’s first site dedicated to processing post-consumer soft plastics

Manner shares: “Chemical recycling is in its early stages in Australia but is gaining traction as a complementary solution to mechanical recycling. Several pilot projects and collaborations, such as GPT Circular and iQRenew, are working to scale up the technology.”

“SPEC sorts, washes, and optically sorts based on polymer type and color. The product can undergo several further processing stages to be squeezed, extruded, and pelletized. SPEC significantly reduces contamination levels, making it a viable solution for further mechanical and chemical recycling.”

Chemical recycling can produce food-grade recycled plastic as it returns soft plastics to their original molecular structure, making them suitable for food packs. 

Integrating recyclates

The partnership between iQRenew and GPT Circular aims to create a feedstock supply model to help remove barriers to investment in Australia and support the chemical recycling industry. 

“A reliable and high-quality supply of feedstock is essential for the success of chemical recycling projects, and our collaboration aims to establish a consistent and scalable approach to sourcing and processing materials,” says Manner. 

“To demonstrate the effectiveness of this model, we are currently utilizing offshore chemical recycling projects. By working with these international partners, we can validate the supply chain and prove that chemically recycled plastics can be successfully reintroduced into the market as high-quality, food-grade material.”

Manner explains that the partnership’s “long-term goal” is to introduce food-grade recycled plastic in Australia and establish domestic production for hard-to-recycle materials. 

The collaboration is set to aid Australian brands and retailers in waste management strategies, helping to divert waste from landfills and into reusable products. 

“For the first time, Australian businesses can integrate high-quality, recycled plastics into their packaging solutions, reducing their reliance on virgin materials while supporting a truly circular economy,” he continues. 

The partnership aims to help Australian businesses integrate high-quality, recycled plastics into their food packaging.“This is a significant win for sustainability, innovation, and consumer demand for environmentally responsible packaging.”

Effective plastic waste management systems 

Packaging companies are increasingly innovating to find realistic solutions to the growing issue of plastic waste in the environment. Greenback Recycling Technologies recently told us that the “demonization” of plastic is a “knee-jerk reaction” to the problem of plastic pollution, said Carlos Ludlow-Palafox, the company’s co-founder and chief technology officer. 

Chemical recycling is one option for tackling plastic waste, but Manner indicates that distinctions must be made in the conversation as it can take many forms.

He says: “It is important to note the distinction between technology projects, such as those being developed by Licella and Plastic Energy, which are striving to establish viable chemical recycling facilities versus enabling partnerships, which focus on ensuring a steady, high-quality stream of feedstock materials for our chemical recycling partners.” 

Environmental benefits of chemical recycling 

Turning plastic back into its raw materials boasts many advantages in waste reduction and recycling. Manner indicates that a consistent and high-quality feedstock supply enables chemical recycling plants to function the most efficiently, maximizing their environmental impact. 

He further details: “The broader benefits of chemical recycling facilities include reducing plastic waste sent to landfills and incinerators, lowering reliance on virgin fossil-based plastic production, enhancing the circularity of plastics by enabling reuse in food-grade packaging and other high-value applications, reducing greenhouse gas emissions compared to traditional disposal methods 

However, some voices caution against chemical recycling as a sustainable method of waste management, promoting a shift toward other packaging materials. On Global Recycling Day 2025, Weyinmi Okotie, clean air program manager at GAIA Africa, told us that the conversation surrounding plastic waste focuses on waste management rather than the issue of waste-to-energy systems, specifically thermal (chemical) incineration, which he said “competes with and undermines mechanical recycling and waste reduction efforts.”