The organisation is now seeking companies willing to take on the project, which could see the plant set up somewhere in the UK by 2008.
The project looks likely to see a single plant set up to turn post-consumer HDPE plastic bottles turned into new food containers. But Paul Davidson, WRAP's material sector manager for plastics, told letsrecycle.com that the project could see a number of smaller facilities set up to provide the capacity.
The financial support is being made available through WRAP's Plastics Capital Support Programme. WRAP – the Waste and Resources Action Programme – is offering funding towards the costs of plant, equipment, land and infrastructure for UK projects.
The organisation can fund up to 30% of the capital set up costs, it said.
Suggestions
Mr Davidson explained: “At this stage it is an open process, we have no fixed ideas about the plant, it us up to the industry to come up with suggestions.”
The funding comes following research carried out in 2005 demonstrating the recycling of HDPE plastic milk bottles into new milk bottles. One stipulation for the project is that the new capacity is created during the period of WRAP's current business plan, which runs until 2008. Ideally, WRAP wants the plant built and operational by December 2007.
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The closing date for applications for the funding is August 28, 2006, after which WRAP will assess received bids and at least one company will be appointed as preferred bidder.
Mr Davidson said the chosen bidder would also need to be able to demonstrate clearly defined and secure end markets for the output – as well as being able to obtain sufficient material to recycle.
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