Neste, the world’s leading provider of renewable diesel, renewable jet fuel, and an expert in delivering drop-in renewable chemical solutions, and Mirova, a pioneer impact investor in the natural capital space and an affiliate of Natixis Investment Managers, today announce a combined EUR 10 million investment into Recycling Technologies Ltd (‘Recycling Technologies’), a specialist plastic recycling technology provider. The aim is to accelerate the development of chemical recycling and foster the transition to a circular economy for plastic.
This investment, consisting of EUR 5 million from Neste and EUR 5 million from Mirova through the Althelia Sustainable Ocean Fund*, provides the capital to start building Recycling Technologies’ first commercial RT7000 machine in Scotland. The RT7000 is a scalable patented technology that recycles mixed plastic waste into waxes and petrochemical feedstocks, trademarked as Plaxx®, for new plastic production. It enables the creation of value from plastic waste, which is today difficult or impossible to recycle with mechanical recycling, and is therefore currently disposed of through landfilling, incineration or exported.
To complement the investment, Neste signs a joint technology development agreement and a Plaxx® offtake agreement with Recycling Technologies. This will bring Neste’s know-how and extensive expertise in dealing with low-quality waste and residue raw materials into the collaboration aiming to accelerate the deployment of chemical recycling capacity in Europe. The investment follows Neste’s recent announcement on its aim to process over 1 million tonnes of waste plastic annually from 2030 onwards in order to introduce it as a raw material for chemicals and new plastics.
The Althelia Sustainable Ocean Fund’s investment into Recycling Technologies confirms the fund’s specific mission to finance scalable and impact-aligned businesses that provide innovative solutions to protect and restore our oceans. The RT7000 machine is uniquely suitable to addressing the plastic waste issues in Europe and other developed countries as well as in developing countries in line with Recycling Technologies’ aim to build projects in these regions.
“Neste is committed to developing solutions to accelerate plastics recycling. Collaboration with Recycling Technologies enables us to accelerate the development of one of the very promising chemical recycling technologies. It also complements the partnerships we have already established with other forerunner companies within the plastics value chain. Together, we continue to develop scalable chemical recycling solutions to the global plastic waste challenge with great speed,” says Mercedes Alonso, Executive Vice President, Renewable Polymers and Chemicals, Neste.
“There are more than 8 million tonnes of plastic entering our oceans every year, so we are very excited to support Recycling Technologies, an innovative company providing solutions to make plastic more sustainable. Creating circular value from plastic waste is a necessary step to help cut the scourge of plastic pollution reaching our oceans. The RT7000 machine will represent a solution for both developed and developing countries to quickly address plastic recycling.” says Simon Dent, Blue Investment Director at Mirova Natural Capital.
“We are delighted to have secured this important investment in Recycling Technologies by Neste and Mirova, leaders in renewable products and sustainable investments. This shows the value and foresight of industry and finance collaborating to provide strategic and profitable circular solutions for plastic waste. Mirova’s expertise as pioneers in many areas of sustainable finance supports Recycling Technologies’ plans to provide a long-term solution to plastic waste. Neste’s investment, technical skills and commitment to build recycling capacity provides a valuable and defined market route for Plaxx® into recycled plastic. One of our goals is to help the UK plastics pact meet their 2025 targets for 30% average recycled content across all packaging. This can be achieved by combining existing mechanical technology and new scalable chemical recycling capacity.” Says Adrian Griffiths, CEO & Founder, Recycling Technologies Ltd.
*) ALTHELIA SUSTAINABLE OCEAN FUND is a Specialized Investment Fund incorporated as a Luxembourg Limited Partnership with shares (SCA SICAV SIF), open to subscription to eligible investors as defined by the fund’s regulation. Alter Domus Management Company is the management company and Mirova Natural Capital is the financial sub-advisor. This fund is approved by the Luxembourg Commission for the Supervision of the Financial Sector (the “CSSF”).
Neste (NESTE, Nasdaq Helsinki) creates sustainable solutions for transport, business, and consumer needs. Our wide range of renewable products enable our customers to reduce climate emissions. We are the world’s largest producer of renewable diesel refined from waste and residues, introducing renewable solutions also to the aviation and plastics industries. We are also a technologically advanced refiner of high-quality oil products. We want to be a reliable partner with widely valued expertise, research, and sustainable operations. In 2019, Neste’s revenue stood at EUR 15.8 billion. In 2020, Neste placed 3rd on the Global 100 list of the most sustainable companies in the world. Read more: neste.com
Mirova is an investment manager dedicated to responsible investment. Through a conviction-driven investment approach, Mirova’s goal is to combine value creation over the long term with sustainable development. Mirova’s talents have been pioneers in many areas of sustainable finance. Their ambition is to keep innovating to propose the most impactful solutions to their clients. Mirova is a Portfolio management company – French Public limited liability company RCS Paris n°394 648 216 – Regulated by AMF under n° GP 02-014 59, Avenue Pierre Mendes France – 75013 – Pari.s Mirova is an affiliate of Natixis Investment Managers. www.mirova.co.uk
Mirova Natural Capital Limited is a UK Private limited company. Company registration number: 7740692 – Authorized and Regulated by FCA.Registered office: 15-19 Bloomsbury Way, London, WC1A2TH. The services of Mirova Natural Capital Limited are only available to professional clients and eligible counterparties. They are not available to retail clients. Mirova Natural Capital Limited is wholly owned by Mirova.
About Natixis Investment Managers
Natixis Investment Managers serves financial professionals with more insightful ways to construct portfolios. Powered by the expertise of 24 specialized investment managers globally, we apply Active ThinkingSM to deliver proactive solutions that help clients pursue better outcomes in all markets. Natixis ranks among the world’s largest asset management firms1 (€898,2 billion assets under management2). Headquartered in Paris and Boston, Natixis Investment Managers is a subsidiary of Natixis and includes all of the investment management and distribution entities affiliated with Natixis Distribution, L.P. and Natixis Investment Managers S.A. Listed on the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest banking group in France. Provided by Natixis Investment Managers UK Limited which is authorised and regulated by the UK Financial Conduct Authority (register no. 190258). Registered Office: Natixis Investment Managers UK Limited, One Carter Lane, London, EC4V 5ER.
1 Cerulli Quantitative Update: Global Markets 2019 ranked Natixis Investment Managers (formerly Natixis Global Asset Management) as the 17th largest asset manager in the world based on assets under management as of December 31, 2018.
2 Net asset value as at June 30, 2019. Assets under management (“AUM”), as reported, may include notional assets, assets serviced, gross assets, assets of minority-owned affiliated entities and other types of non-regulatory AUM managed or serviced by firms affiliated with Natixis Investment Managers.
About Recycling Technologies
UK-based company, Recycling Technologies, is on a mission to accelerate the evolution of plastic into a more sustainable material. Currently, 88% of the plastic used in the world is either buried, burned or leaked into the environment1. This means that the world recycles only 12% of the 359 metric tons of plastic produced each year2. Recycling Technologies has developed an innovative technology, the RT7000, which turns hard-to-recycle plastic such as films, bags, laminated plastics into an oil, called Plaxx®, used as a feedstock for new plastic production. The RT7000 is modular and small-scale, designed to fit easily onto existing waste treatment and recycling sites, providing a scalable solution to recycle waste plastic anywhere in the world.
1 McKinsey&Co – How plastics-waste recycling could transform the chemical industry
2 Plastics Europe – Plastics the facts 2019