Neste and Ravago combine forces on plastics chemical recycling facility in the Netherlands
26 Oct 2021 --- Neste and Ravago are building an industrial facility for chemical recycling in North Sea Port in Vlissingen, the Netherlands.
The joint venture says the facility will be “the starting point” for global chemical recycling (or “advanced recycling”) activities, based on US-based Alterra Energy’s thermochemical liquefaction technology.
Neste is a world-leading producer of renewable diesel, sustainable aviation fuel, and drop-in renewable feedstocks for the polymers and chemicals industry. Meanwhile, Ravago is a world-leading polymer distributor and recycler.
The partners plan to demonstrate and advance the commercialization of chemical recycling. The transaction is subject to regulatory approval.
Linking value chain expertise
The strategic partnership combines Ravago’s plastic waste mechanical preparation expertise, Alterra Energy’s proprietary liquefaction technology, and Neste’s hydrocarbon processing expertise.
Neste and Ravago are aiming for an annual processing capacity of around 55,000 tons of mixed plastic waste.
The long-term aspiration is “to significantly increase the processing capacity on a global scale and continuously develop the joint venture into a global leader for chemical recycling of mixed plastic waste.”
“By fixing the investment location and scope, we are again one step closer to turning our dream into reality,” says Theo Roussis, Ravago’s CEO. “Together with Neste, we have the necessary ingredients for a successful recipe to create scalable solutions, converting non-recyclable waste streams into valuable end products.”
“Chemical recycling has been a promising technology to accelerate the creation of a circular economy for quite a while,” adds Mercedes Alonso, EVP for renewable polymers and chemicals at Neste.
“Now, it is time to take it to the next level and turn the promise into an industrial solution. By combining the expertise of Ravago and Neste, we have the means to rapidly implement the technology to start production at commercial scale.”
“With joint and dedicated efforts, we can bring together the know-how along the entire value chain to turn waste into valuable resources. Our ambition is clear: to be a global leader in renewable and circular solutions.”
Capacity targets
In 2019, Neste and Ravago set a joint target to process over 200,000 tons of mixed waste plastic per year by 2030.
The companies continue to evaluate technologies, the raw material market and build joint business cases to develop chemical recycling capacities.
Neste also successfully conducted the first of several industrial trial runs with liquefied waste plastic at its oil refinery in Finland in 2020.
Advanced recycling proliferates
PackagingInsights recently explored the proliferation of advanced recycling activity with Susan Hansen, global strategist for food packaging and logistics at Rabobank.
Advanced recycling continues to flourish in 2021, despite criticism from NGOs and media reports challenging the cost-effectiveness and environmental performance of these technologies. The increasing market activity has been documented in Rabobank’s latest report on advanced recycling.
Many see advanced recycling as crucial to establishing a circular plastics economy. Advanced recycling technologies split polymer chains, converting hard-to-recycle plastics into crude oil, naphtha or fuels.
The Dutch bank has monitored “plenty of activity” in 2021, including traceability solution trials, new plant announcements, partnerships, acquisitions and equity stakes. There are also new players entering the industry, especially in Asia.
Edited by Joshua Poole
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