PureCycle Technologies is stepping up an effort to open an Ohio plant that would use a polypropylene plastic recycling process based on patented technology developed by Procter & Gamble Co.
The plant would restore used polypropylene plastic to virgin-like quality with a recycling method that is one of a kind, according to the Cincinnati-based maker of Tide detergent and Chicago-based PureCycle.
The P&G technology enabled PureCycle to strike partnerships with Swiss-based food and beverage company Nestlé and South Carolina-based specialty chemicals firm Milliken & Co.
PureCycle is in the midst of building the first plant in the Haverhill area of Lawrence County, which is 123 miles east of Cincinnati. The plant is to recycle 119 million pounds of polypropylene, producing more than 105 million pounds per year starting in 2021.
Moody’s Investors Service today assigned a Green Bond Assessment of GB1 (Excellent) to the $185 million exempt facility revenue bonds to be issued by the Southern Ohio Port Authority to fund construction of the plastic recycling facility by PureCycle, including capitalized interest and meeting related issuance cost and debt service reserve requirements.
“This green bond is the first in our portfolio to specifically target the plastic waste crisis,” said Anna Zubets-Anderson, Moody’s senior analyst. “Since the facility is first of its kind on a commercial scale, the actual environmental benefits may vary depending on project execution. That said, our GB1 assessment reflects our expectation of comprehensive impact reporting practices for the time that the bonds are outstanding.”
Total investment reportedly would be $120 million, with the goal of producing 80 million pounds of polypropylene plastic a year. The original intent was to open a small-scale plant in 2018 and a full-scale plant in 2020.
Nestlé, the world’s largest food and beverage company, is working with PureCycle to develop new packaging materials that help avoid plastic waste. Nestlé brands range from Gerber to Perrier.
Milliken, whose additives will play a critical role in reinvigorating recycled polypropylene, has formed an exclusive supply relationship with PureCycle. PureCycle was launched in 2015 based on P&G research and development.
P&G licensed the technology to PureCycle, a portfolio company of Innventure, a Wasson Enterprise Partnership that commercializes disruptive technologies.
P&G had partnered with Innventure, a group of experts in launching new businesses. Innventure evaluates P&G technology to determine what sort of company could be created. Each startup’s management team will be selected by Innventure, which will help scale the business and have a stake in it.
Source Cincinnati Business Courier