Waste management company Viridor has agreed a deal in principle with chemical recycling firm Plastic Energy which will see it supply a facility with 30,000 tonnes of unrecycled plastic a year.
Under the terms of the arrangement, Plastic Energy will produce recycled oils from the predominantly low-density plastic film, which in turn is to be used as a feedstock to create virgin-quality recycled plastic material.
Feasibility work has begun on the project, which, if successful, would be finalised by the end of 2023, Viridor says. If the project progresses, the facility will be ‘co-located’ with a Viridor energy from waste facility.
Phillip Piddington, managing director of Viridor, said: “This project is further evidence of Viridor’s ongoing commitment to investment and innovation to push the boundaries of what is recycled and reprocessed in the United Kingdom.
“We are very proud to be working with Plastic Energy to develop a project which further demonstrates how all waste can be considered a resource and not rubbish and that collaboration is the key to achieving our green economy goals.”
The two companies have signed a memorandum of understanding (MoU) with regard to the project. While not legally binding, an MoU describes the broad outline of an agreement between the two parties and signals that a binding contract is imminent.
The project envisages a Plastic Energy chemical recycling plant co-located with a Viridor energy from waste facility. The plant would be owned, developed and operated by Plastic Energy.
Carlos Monreal, founder and chief executive officer of Plastic Energy, said: “We are delighted to support the development of an integrated site with Viridor in the UK and provide a solution for plastics previously not recycled.
“Chemical recycling will support government’s goal to move towards a circular economy and to increase recycling rates for plastics”
“Chemical recycling will support government’s goal to move towards a circular economy and to increase recycling rates for plastics, effectively making plastic waste a valuable resource.”
Plastic Energy says it currently operates two commercial plants in Seville and Almeria in Spain.
The company set up its ‘technology HQ’ in London in 2018, at the time stating its aim to establish the firm as a global business.