$1.6 million loan will be used to build plastics-to-fuel facility in Akron, Ohio.
The state of Ohio’s Controlling Board has approved a $1.6 million loan through the agency’s Commercial Acceleration Loan Fund (CALF) to help fund Vadxx Energy LLC’s plastics-to-fuel facility in Akron, Ohio. The goal of the loan fund is to bridge the gap between an early-stage entrepreneurs’ need for capital and the traditional commercial sources of financing that are primarily reserved for established businesses.
Vadxx Energy, which is headquartered in Cleveland, plans to build a facility in Akron that will allow the company to convert recyclable and nonrecyclable plastics into various energy products. The total project cost is expected to total $2.4 million. Vadxx's technology captures the energy embedded in plastics and returns it to a useful form by essentially reversing the process by which plastics are created. The plastics are cooked, cleaned and cooled in a closed and controlled system. The process converts plastics back into diesel additive, fuel gas (similar to natural gas), and inert char (similar to carbon black).
When fully operational, Vadxx says it expects to produce more than 100,000 barrels of synthetic oil and gas per year. The equipment that will be installed at the Akron plant will cost $17 million and will be funded by Liberation Capital. The building component will be funded by a third party for approximately $4 million and will be leased to Vadxx Akron. The city of Akron will transfer 5 acres of land to Vadxx Energy for $1 per year, plus a percentage of the project's future cash flow.
The company says it expects to complete construction on the facility by the end of 2014 with testing on the facility taking place the first quarter of 2015.