Closed Loop Fund, an investment fund that finances recycling infrastructure and circular supply chains based in New York, has announced it has invested in PureCycle Technologies, a southern Ohio-based company that produces recycled polypropylene (PP) with virgin-like properties.
PureCycle’s technology could help increase recovery of contaminated and colored PP streams into higher-value applications, Closed Loop Fund says. The investment will help launch its first facility in Ironton, Ohio.
Ron Gonen, CEO of Closed Loop Fund, says, “Our goal is to build circular supply chains. Our CPG (consumer packaged goods) partners want postconsumer recycled PP, but we need technologies like PureCycle’s to ensure enough material is available at the specifications brands need. We anticipate significant market opportunity for PureCycle.”
PureCycle’s facility will open amidst challenging markets for many postconsumer recyclable materials, offering municipalities and material recovery facilities (MRFs) a domestic customer in the Midwest, says Closed Loop Fund. Once it is operational, the facility is expected to be able to take postconsumer mixed rigid plastics from MRFs as well as postindustrial scrap materials. At scale, PureCycle will have the capacity to process more than 105 million pounds of recycled PP each year.
“This is a case where a hundred-billion-dollar industry required new technology to meet a compelling, unmet need,” says Mike Otworth, CEO of PureCycle Technologies. “We’re thrilled to have Closed Loop as an investor and a supporter of PureCycle Technologies. Until now, recycled PP had limited applications. We’re single-handedly removing those limitations and giving companies the choice to use more sustainable, recycled resins.”
Founded in 2014, Closed Loop Fund is a social impact investment fund that provides cities access to the capital required to build comprehensive recycling programs. Closed Loop Fund aims to invest $100 million by 2020 with the goal to create economic value for cities by increasing recycling rates in communities across America and build circular supply chains.