Global Plastic Supply Chain Investors Line-up at First Close of Infinity Recycling’s Circular Plastics Fund

Global Plastic Supply Chain Investors Line-up at First Close of Infinity Recycling’s Circular Plastics Fund, Backing Companies Converting Waste to Primary Commodities to Reverse Pollution Crisis

ROTTERDAM, Feb 11, 2022 – Infinity Recycling’s Circular Plastics Fund, which will invest in companies scaling up proven advanced recycling technologies to break down surging plastic waste flows into primary commodities to be reused in perpetuity by the industry as inputs for new products, has received strong backing at its first capital close from global plastic supply chain investors, as well as Invest-NL, the Dutch investment agency.

Investors include U.S. petrochemical companies, Chevron Philips Chemical and LyondellBasell, Singapore-based global materials organisation Indorama and Invest-NL, which have initially committed over EUR 40 million to the fund’s Rotterdam-based investment management team. The Circular Plastics Fund is an Article 9 ‘dark green’ impact fund, the highest designation under the EU’s Sustainable Finance Disclosure Regulation (SFDR), and targets a net IRR of 18% to 22%. The Luxembourg-registered fund has an initial investment target of EUR 150 million.

The ever-linear consumption of plastics is creating an ‘end-of-life’ waste crisis. Approximately 400 million tonnes of plastic waste are created annually, equivalent to over 35 kgs for each person on the planet,[1]but less than 20% of this is recycled globally. The remainder ends up in landfills, incinerators, or being leaked into the environment.[2]?

Jeroen Kelder, Managing Partner at Infinity Recycling, said: “The world is being overwhelmed by plastic waste and supply continues to grow exponentially because demand isn’t slowing down, which means current approaches focused on mechanical recycling will be unable to stem the tide. ?The Circular Plastics Fund addresses this gap in the market by supporting companies with tried and tested advanced recycling technologies and enabling them to scale-up.”

The advanced ‘upcycling’ of waste complements mechanical recycling because it allows the conversion of even the most difficult plastic waste streams into valuable primary commodities and overcomes quality restrictions in the use of recycled materials in the manufacturing of new food packaging, which accounts for around 40% of global plastic demand.3 Management consultancy McKinsey estimates that the global market for advanced recycling plastic will reach 500 million tonnes per year by 2050, generating more than USD 300 billion in revenues and could account for around 40% of total virgin feedstock supply for new products.?

Jan-Willem Muller, Managing Partner at Infinity Recycling, said: “We believe that locally sourced waste can be utilised within the existing petrochemical market infrastructure, and that is the fastest and most scalable solution for this existential crisis. It is very appropriate, therefore, that our Circular Plastics Fund has successfully completed its first capital close in the ‘Week of the Circular Economy’ in the Netherlands.”

Global Plastic Supply Chain Investors and Invest-NL Commit to Circular Plastics Fund

Wouter Bos, Invest-NL CEO, said: “Invest-NL is backing Infinity Recycling's Circular Plastics Fund as a cornerstone investor because the fund will invest in innovative technologies that enable the industry to increase the amount of high quality recycled plastics from low quality plastic waste streams. This fits our goal of creating a more circular and sustainable Dutch economy.”

Benny Mermans, Vice President of Sustainability at Chevron Phillips Chemical (CPChem) said: “Our company is committed to ensuring plastics continue to deliver societal benefits without having a negative impact on the environment by producing our life-enriching products sustainably, leaving behind the lightest footprint and enabling others to do so as well. Plastic waste is a valuable resource and?keeping it in the loop as long as possible will contribute to the creation of a circular economy for plastics. Through this investment in Infinity Recycling’s Fund, our company aims to support the most promising advanced recycling technologies, connect the value chain and prove the complementarity of mechanical and advanced recycling, all important steps to accelerate change for a sustainable future.”

Richard Roudeix, Senior Vice President Olefins and Polyolefins, EMEA and India at LyondellBasell concluded: “We believe collaboration across the value chain is critical to our joint success as we seek to end plastic waste in the environment. LyondellBasell’s commitment to Infinity Recycling, our first fund investment in Europe, reflects our dedication to accelerate efforts to achieve a circular economy for plastics by catalyzing further investment in recycling technologies. Plastics enable a modern society and are essential to developing a more sustainable world. Through this fund, we aim for society to continue to realise the benefits of these materials by supporting the continued development of recycling technologies to increase the recyclability of plastic waste.”?

New Amsterdam is the placement agent for the?Circular Plastics Fund; Loyens & Loeff the legal advisors and Mazars Group provided audit and tax advisory. Trustmoore Luxembourg is the fund’s administrator.