Major Corporations Bet on Plastic Recycling Tech Innovators

There is a huge global push, from governments and from industry, to try to solve the enormous problem of plastic waste and pollution. Globabally, less than 10 percent of plastic is currently recycled while plastic production continues to increase. Many countries, and companies that operate within them, are signing on to Plastics Pacts, vowing to make significant headway against the problem by eliminating unnecessary plastic packaging, moving forward with recyclable materials, and pushing toward a 50% rate of recycling - all in the next two years.

It’s an ambitious timeline, especially considering the fact that standard recycling technologies are not capable of effectively or economically processing a majority of the existing types of plastics. In a related but similarly pressing area, the pressure is on to reduce global carbon emissions. A circular plastic economy certainly has the potential to reduce CO2 emissions created by the petrochemical industry, as does the recycling and upgrading of hydrocarbons into sustainable fuels and clean feedstock for recycled plastic production.

With time running short and so much on the line, major corporations from all sectors of the industry, from consumer product packagers to big oil companies, are partnering with and investing in smaller tech innovators seeking to advance plastic and hydrocarbon recycling technologies.

Here, we’ll take a look at a few of these public company upstarts and the bets being placed on them. 

Procter & Gamble, one of the world’s largest consumer packaged goods companies, created a new technology that uses solvents to dissolve polypropylene plastic, remove contaminants, liquefy the remaining polymers, and produce plastic pellets for us in a wide range of products. PureCycle Technologies Inc. (NASDAQ: PCT) was created, in partnership with the tech commercializing firm Innventure, to bring the solution to market.

Polypropylene is known as plastic #5 in the packaging industry, but is also ubiquitous in items like clothing and carpets. Virtually none of it is recycled worldwide, and PureCycle is hoping to have 80 recycling operations worldwide by 2030. Getting there won’t be easy, as the full operation of its initial plant in Ironton, Ohio has been delayed for over two years after the technology was initially tested in a pilot plant. PureCycle has been busy signing agreements in anticipation of a commercial launch at scale while the market awaits further developments.

Shell, the world’s second largest investor-owned oil and gas company, selected Aduro Clean Technologies, Inc. (CSE: ACT) (OTCQB: ACTHF) for participation in Shell GameChanger program. The program is designed to speed Aduro’s path to commercialization of its patented Hydrochemolytic™ technology, a water-based chemical process capable of recycling and upgrading almost any type of plastic. Aduro’s process is touted as a less expensive, more efficient, lower emission, and highly scalable solution compared to competing technologies. 

Shell has promised investment of both money and expertise to help perfect and advance Aduro’s solution. For its part, Aduro has built its R2 Plastic Reactor, a pre-commercial customer engagement unit designed to demonstrate the technology and test the viability of various feedstocks. Aduro also has agreements in place to build the next generation, an R3 unit on a small commercial scale. The company is at a similar stage of development in applying the same technology to the processing and upgrading of heavy crude oils into lighter more valuable oils.

One of Mitsubishi’s several core companies, Mitsubishi Chemical Group is an industrial materials and medical company focused on creating technologies that improve the lives of people and the well-being of the planet. The global giant is partnered with Agilyx (OTCQX: AGXXF) (OSE: AGLX) to develop and perfect a heat-based (pyrolysis) recycling solution for PMMA, or acrylic. The material is commonly used as a replacement for glass in windows, smartphone screens, and aquariums among other applications. Agilyx is also applying its process to the recycling of polystyrene, the material used in styrofoam. 

At the same time, Agilyx has developed a joint venture with ExxonMobil, among other companies, called Cyclyx International. Cyclyx is focused on maximizing the recovery and sorting of plastic waste to provide feedstock for advanced recycling technologies.

Agilyx is just entering the revenue stage, with a commercial-scale polystyrene facility now operating in Oregon.

Chevron is committed to investing $10 billion by 2028 in businesses and technologies that lower carbon emissions, including plastic recycling and hydrocarbon upgrading innovators. One of its most interesting projects is a joint venture with Gevo, Inc. (NASDAQ: GEVO), a company focused on reducing emissions by turning waste products like inedible corn into renewable fuels, including aviation fuel. 

Gevo is in the process of developing its first Net Zero Project in South Dakota. The company envisions using corn, renewable energy, and its proprietary technology to produce alternative liquid hydrocarbons with net zero emissions over the course of production. These hydrocarbons form the basis for fuels, and Gevo has its sights set on replacing petroleum as a source for plastics as well.

These are prime examples of major corporations investing in and partnering with smaller innovators to help reach stated goals of a circular economy for plastics and other petroleum-based products. If net zero emissions are to be even approached, much less reached, ground-breaking technologies will need to be fostered and perfected. Investors may want to follow some of these partnerships to understand where the world’s largest companies are seeing the most potential for viable solutions.