Eureka Recycling bolsters US material recycling streams with multi-million financing round
(All image credits: Closed Loop Partners).
22 Jul 2024 --- Eureka Recycling, a non-profit independent regional materials recovery facility (MRF) based in Minneapolis, US, announced a US$10 million financing round led by Closed Loop Partners’ private credit arm, the Closed Loop Infrastructure Group.
The multi-million loan from Closed Loop Partners’ catalytic capital group includes US$3 million from American Beverage and the Minnesota Beverage Association. Alongside the loan, the Recycling Partnership provided a grant to support this project.
“Materials recovery facilities play a key role in driving a circular economy for materials in a region, preventing environmental deterioration from resource extraction, reducing landfill disposal and generating economic benefits across municipalities,” Jennifer Louie, managing director and head of the Closed Loop Infrastructure Group at Closed Loop Partners, tells Packaging Insights.
“Since its founding, Eureka Recycling has been a best-in-class recycling operator in the Minnesota region. The company has maintained strong local support in the Minneapolis-St. Paul area and continues to be a key player in the regional recycling market, processing more than 100,000 metric tons of materials per year at their facility.”
Market and policy shifts
This is Closed Loop Partners’ fourth loan to Eureka Recycling in nearly a decade, supporting the MRF in maintaining its leading position in the region.
The loans, grants and other investments have strengthened infrastructure nationwide to recover materials at their end-of-life, increasing the volume of quality recycled material to meet growing demand for these materials and commitments toward a waste-free world.
Materials recovery facilities play a key role in driving regional circular economies.Closed Loop Partners’ Infrastructure Group, across its Infrastructure, Beverage, Circular Plastics and Local Recycling strategies, will continue to deploy capital into private companies, projects and other recycling-focused nonprofits, such as Eureka Recycling.
“Since our last loan to Eureka, market dynamics, policy shifts and packaging trends have changed, and will continue to change –– with the implementation of extended producer responsibility in Minnesota –– the composition of materials processed by the recycling facility,” Louie tells us.
“To help the facility keep up with changing material flows and growing demand for high-quality recycled material, continued investment is critical.”
“The capital will support additional optical sorters to decrease contamination and increase the quality of recovered materials that can be made into new materials, including mixed paper and old corrugated cardboard, PET, aluminum, PE and PP. Once the upgrade is completed in 2025, the new opticals are estimated to increase the annual collection of PET and aluminum by 222 and 248 metric tons, respectively,” adds Louie.
Local community support
With key infrastructure upgrades, Eureka Recycling can collect, process and return more valuable materials to supply chains and advance a circular economy in the greater Minneapolis-St. Paul area, supporting a cleaner community and bringing revenue to cities.
Investment in regional recycling infrastructure is necessary to keep up with changing material flows and growing demand for high-quality recycled material, says Closed Loop Partners.
“One of our industry’s highest priorities is circularity for our valuable bottles and cans,” says American Beverage’s president and CEO Kevin Keane.
“They are made to be remade, and this investment will help make sure more of this valuable material can once again become a new bottle or can. America's beverage companies are excited to support these important upgrades for the one million Twin City residents Eureka serves.”
Cody Marshall, chief community strategy officer at The Recycling Partnership, adds: “Delivering on the promise of a circular economy requires that we build a better recycling system, and that’s exactly what our support to Eureka Recycling is delivering.”
“By delivering grant funding and forging new partnerships we are providing critical infrastructure that will increase Minnesota’s 20% recycling rate and expand recycling access across the region. That’s good for the people of Minneapolis-St. Paul and for all of us.”
“Eureka aims to create and maintain healthy communities and local economies while keeping materials in the market and out of landfills. The team continues to be thought leaders, leveraging their operational experience to influence systems change by engaging with policymakers, industry leaders and community advocates,” says Louie.
By Natalie Schwertheim
