PureCycle provides Q2 update

Advanced recycler PureCycle Technologies Inc., Orlando, Florida, has provided a corporate update for the second quarter ending June 30.

During the quarter, the company says it recognized revenue of approximately $1.7 million. It also sold a total of $11.9 million of certain Southern Ohio Port Authority Exempt Facility Revenue Bonds, tax-exempt Series 2020A to a number of qualified institutional buyers. The company says gross proceeds from the sale of revenue bonds were approximately $10.5 million.

RELATED: PureCycle receives GreenCircle certification for multiple grades of PureFive PP resin

In June, PureCycle raised $300 million from the issuance of Series B convertible perpetual preferred stock with a series of new and existing investors.

Commercial movement

Commercially, the company reports it continued to develop a wide-ranging portfolio of PureFive Choice resin grades, including “one-pellet solutions” for food-grade film, injection molded and thermoformed application.

The company has delivered PureFive Choice resin grades to various converters for trials, saying the resin has been successfully molded into storage totes, coffee lids, dairy containers, pens and other polypropylene (PP) packaging applications. The company now is in post-trial negotiations with more than 15 applications with numerous converters or brand owners.

PureCycle previously announced a partnership with Emerald Carpets to drive circularity in the trade show industry. Dalton, Georgia-based Emerald signed its commercial supply agreement for approximately 5 million pounds of PureFive resin over the next 12 months, and that resin will be blended into Emerald’s existing fiber production and allow for trade shows around the world to use carpets made with recycled content.

The company says it also made progress on the use of PureFive resin in biaxially-oriented PP (BOPP) film. The resin grade for film passed an industrial trial for a provider of tapes and films. Work also has continued with German company Brückner Maschinenbau GmbH, which supplies production lines for the manufacturing of stretch films.

“A larger-scale trial with Brückner is scheduled for later this month and, if successful, should provide PureCycle with thousands of meters worth of samples to share with brand owners,” PureCycle says. “BOPP film has a wide range of end-use applications, including food packaging for snacks, candy and baked goods.”

The company has continued to work through a qualification process with Procter & Gamble (P&G) for a variety of applications, with scaled production tests of the spout and dose caps for select bottles of P&G products scheduled for September. Products with PureFive resin are planned to be in production by the end of this year and in stores by early 2026.

Operations update

PureCycle reports it produced 3.4 million pounds of resin in the second quarter. It took a short, planned outage in early June to update and improve certain areas of its Ironton, Ohio, recycling facility, and the plant returned to operations June 9.

The company is continuing to assess the upper limits of the Ironton plant and successfully completed a rate test at 14,000 pounds per hour Aug. 1.

To meet expected demand and better streamline its processes, PureCycle says it will add compounding operations to the Ironton facility and has begun efforts to install a new twin-screw extruder with multiple feeders to bring about 100 million pounds of annual compounding capacity to the location. This will enable the blending of specific resins for customer applications including film, thermoforming and thin-wall injection molding.

The move is expected to eliminate approximately $4 million of annualized third-party costs currently associated with producing the company’s PureFive Choice resin, with PureCycle noting it also could further reduce its overall supply chain carbon footprint. The company expects the integration of compounding in Ironton to be complete by late in this year’s fourth quarter.

“We have begun to implement our growth plans following our successful $300 million capital raise that was executed in June,” PureCycle CEO Dustin Olson says. “Our first expansion steps will be with facilities in Thailand and Belgium. Future facilities, beyond the initial lines in Thailand and Belgium, are expected to house a Gen 2 purification design with a planned capacity of more than 300 million pounds per year. All these projects are currently expected to be online by 2030 and would give us an installed capacity of 1 billion pounds across the United States, Europe and Asia.

“On the commercial front, we continue to make progress with trials in the packaging, film and textile spaces for both food and nonfood applications. Our team is now in negotiations with several companies and working through the process to bring these opportunities to commercialization. We continue to see interest in our PureFive resin and are still confident we will achieve increased sales in the second half of 2025 that should position us well for 2026.”