Viridor ‘backs chemical recycling’ with £90m Quantafuel bid

And, Quantafuel has said the bid has been unanimously recommended by its board of directors and management group.

Viridor explained that it will also provide additional capital support into Quantafuel’s ‘plastic to oil’ portfolio, including an approved 110,000 plant at the Port of Sunderland and operational sites in Scandinavia.

The proposed acquisition reflects Viridor’s “ambition to lead innovation in the plastics recycling sector and deliver full circularity in all four major plastics by 2025”.

It is also hoped that the diversion of plastics away from energy from waste will “drive decarbonisation of residual waste stream”. Plastic packaging accounts for around 70% of EfW fossil carbon footprint, Viridor added.

Kevin Bradshaw, Viridor’s chief executive, said: “Today marks a critical step on Viridor’s growth journey to build a truly circular plastics economy. Plastics are a key solution in so many aspects of our lives. Advanced recycling processes like Quantafuel’s are essential to ensure those plastics can be recycled again and again. Our proposed acquisition and investment represents the strong commitment both businesses have to ensuring we deliver a better environment.”

Plastic

Viridor does also have its own mechanical plastic recycling division, including sites in Avonmouth, Rochester and Skelmersdale.

The move for Quantafuel marks a diversion from this strategy, but it’s hoped that by removing plastic from the waste stream, carbon emissions will fall ahead of a potential carbon trading scheme later this decade.

Viridor group development director Richard Belfield added: “This partnership with Quantafuel will help drive the decarbonisation of our energy recovery facilities by taking plastic wastes away from the non-recycled waste stream and enable us to grow the breadth of our plastic recycling offering.
“The opportunity to deliver a food grade plastics film solution to the market is an exciting opportunity towards building a world where nothing goes to waste.”

Quantafuel

Quantafuel said the offer from Viridor has been unanimously recommended by its board of directors and management group.

The offer concludes a “strategic review” the board has been undertaking since October 2022.

Lars Rosenløv, chief executive of Quantafuel, commented: “We see Viridor’s cash offer as the best available option that resolves both the need for short-term financing as well as providing robust foundations for the company’s portfolio of growth projects.

“Viridor is a good fit and is, just like Quantafuel, determined to play a leading role in transforming the waste sector towards circularity. Plastic waste is one of our time’s most pressing environmental challenges and chemical recycling is key to help solve this. I’m glad that Viridor is eager to position Quantafuel for future growth and take on the next chapter of the company’s journey”.