Source: Enviroo
Reichmuth Infrastructure, on behalf of its SFDR Article 9 fund and one of its mandates, is Financing the construction of a PET recycling plant in Ellesmere Port (UK). The plant will be located in the Plastic Park at Protos, an energy and resource management hub located in the North West of England. Developed by Peel NRE, Protos clusters innovative technologies, connecting energy-intensive businesses with sources of low-carbon energy.
"The recycling of PET bottles is an excellent example of our investment approach in sustainable infrastructure," says Stefan Hasenböhler, Head of Infrastructure at Reichmuth & Co. "The investment combines stable long-term returns with the support of sustainability goals, fits perfectly into our Article 9 fund and complements our exposure to battery storage, solar projects and clean logistics solutions."
The cooperation partner is the developer and operator Enviroo, a specialist and innovator in PET recycling. Enviroo has identified a process that separates PET plastic from other waste components through a sophisticated synthesized washing process, coupled with a world-class extrusion process. The result is a recycled PET granulate that can be used in direct food contact packaging. The recycled material seamlessly integrates with virgin PET or can be used independently in bottle production.
Core elements of the investment concept are both fixed supply and purchase agreements for a large part of the plant's production. "Through these co-operations, we are creating a genuine recycling loop from bottle to bottle," explains Hasenbö hler. Regulatory requirements for recycling quotas lead to an economic cost advantage and a rapidly growing market.
Enviroo's Founder and CEO, Ahmed Detta, welcomes this investment, which he believes will play a pivotal role in achieving UK's recycling goals. Detta says: "We are excited to partner with Reichmuth Infrastructure, who shares our vision for a truly circular, closed-loop solution to the UK's plastic waste challenge. Together, we look forward to the plant's operation, contributing to the country's ambitious recycling targets, and making a meaningful impact in reducing plastic waste."
Richard Barker, Development Director at Peel NRE, highlights the significance of the project within the UK’s wider recycling infrastructure, stating: "Enviroo’s arrival at Protos marks a major step towards making our ‘Plastic Parks’ vision a reality. By bringing world-class recycling infrastructure to the UK, we’re creating a hub where plastic waste is transformed into valuable resources – supporting a circular economy. This is a significant milestone for Protos, and we look forward to working with the Enviroo team to deliver a sustainable solution to the UK’s plastic waste challenge."
The United Kingdom has one of the highest per capita rates of plastic waste to date, and only 1.3 of the 2.4 million tonnes of plastic packaging waste are currently recycled. The country is pursuing a recycling target of 75 percent of packaging materials by 2030, coupled with an effort to ban waste exports for disposal in foreign countries. Furthermore, packaging waste is expected to increase by around 50 percent by 2035, underscoring the urgent need for expanded domestic recycling capacity.
The investment will be deployed starting in the second quarter of 2025, when the facility's construction will start. Production is scheduled to begin at the end of 2026.
International law firm, Stephenson Harwood, advised the project company. Their expertise in energy transition projects played a crucial role in ensuring a seamless transaction. In addition, Bird & Bird with its energy & utilities and infrastructure teams in London and Frankfurt supported its long-time client Reichmuth & Co in the successful closing of another investment.