Greenstar Recycling, Vadxx Energy agree to joint venture in Ohio.
Greenstar Recycling, Houston, has signed a joint venture with Vadxx Energy LLC, Cleveland, to convert recovered plastic into synthetic crude oil. Through the joint venture, the two companies say they intend to provide a domestic source of fuel.
Matt Delnick, Greenstar CEO, says "Vadxx will help us recover plastics from the material stream and repurpose them as feedstock for the production of oil. This [joint venture] will help us better serve our municipal customers by providing a more consistent market value for their plastics that are otherwise largely unmarketable. It will increase recovery rates by pulling more plastics out of landfills."
Vadxx Engery LLC has agreed to manufacture synthetic crude oil and natural gas by using raw material feedstock consisting of petroleum-based plastics in a process called thermal depolymerization. According to a press release, Greenstar Recycling chose Vadxx Energy LLC as its partner because of Vadxx' potential to scale to commercial size and capacity.
Jim Garrett, Vadxx CEO, says, "Plastics are made from oil, and Vadxx has figured out how to create the lowest-sulfur-content crude oil in the world from a commodity that might otherwise occupy space in landfills."
He continues, "We are thrilled to partner with Greenstar, one of the top recyclers in the U.S. The Vadxx equity partnership with its feedstock suppliers is a key component of our business model, which features a low capital investment compared to the expected return from oil sales.”
Greenstar and Vadxx say they expect to begin producing crude oil by the middle of 2012 and hope to settle the new joint venture in Ohio.