Infinity Recycling secures multi-million financing to boost plastic reduction and recycling efforts
12 Aug 2024 --- Infinity Recycling, a Dutch growth equity investor, has teamed up with Blue Invest and the European Investment Fund (EIF) to tackle the growing global plastic waste problem. As global plastic consumption is expected to double by 2050, there is a need for sustainable and scalable recycling technologies.
Blue Invest is an EU initiative that supports sustainable and innovative technologies for the blue economy. Through this collaboration, the two entities are seeking to identify new investment opportunities within the Blue Invest project pipeline, focusing on projects that can reduce the influx of plastic waste into marine environments.
Infinity Recycling has secured €50 million (US$ 54.6 million) in financing from InvestEU through the EIF. The investment will be channeled into advanced recycling technologies aimed at improving plastic waste recycling and making it profitable.
“Blue Invest brings different stakeholders together, providing a platform to share experiences and best practices with other investors. The fight against climate change has gained significant momentum which means that there is a lot of support available for the right ideas,” says Jeroen Kelder, one of the founders of Infinity Recycling.
Driving technologies with fund
In May, Infinity Recycling closed its Circular Plastics Fund with €175 million (US$190 million). The fund aims to accelerate the development of several advanced recycling projects.
The joint efforts represent a step toward a sustainable future, where plastic waste is no longer a problem but a resource to be harnessed.Through the Circular Plastics Fund, Infinity Recycling is poised to empower European companies to develop and scale up the latest technologies that can fully recycle plastic waste into new plastics with properties equivalent to those of virgin materials. This marks a departure from traditional recycling methods, which often result in plastics losing their original properties, such as food safety, material strength or elasticity.
In spring, EU member states agreed to the new Packaging and Packaging Waste Regulation, solidifying restrictions on plastic packaging for fresh produce, carrier bags, and cosmetics. Aligning with the new rules, the Circular Plastics Fund hopes to contribute to the establishment of a circular plastics industry.
By providing capital, expertise, and access to a network of partners, the fund supports companies in converting plastic waste streams into tradable commodities. Initial investments range from €5 (US$5.5) to €15 (US$16.4) million per company, demonstrating a commitment to rapidly scaling solutions that can make a tangible impact on the environment.
Growing momentum
According to the European Environment Agency, in Western Europe, people use an average of 150 kg of plastic each year — over twice the global average of 60 kg. Yet, it’s estimated that only 9% of all plastic ever produced has been recycled.
Despite challenges, plastic reduction efforts have been gaining momentum, with renewable alternatives becoming more popular in recent years, according to Innova Market Insight. As a result, “plastics circularization” emerged as the top packaging trend in 2023.
Last year, Plastics Recyclers Europe reported that plastic recycling capacity in the EU and the UK has increased due to major investments. As maintained by the organization, the new capacities could provide a stronger foundation for the transition to a circular economy for plastics.
By Sichong Wang
