Omar Khalid
As the world becomes increasingly aware of the harmful impact of plastic on the environment, many companies are investing in plastic innovation to combat this issue. Global plastic sales were estimated at $712 billion in 2023, and the market is forecast to grow at a compound annualized rate of 3.4% through 2028. This presents a massive market opportunity for investors, who can choose from companies that produce raw materials, end products, or both. While some companies are investing in biodegradable bioplastics made from natural materials, others are focused on recycling innovations to help meet the demand for recycled plastics. In addition, financial institutions are deploying capital by investing in early-stage innovation funds to support new technologies and business models in the plastic recycling industry.
| Characteristics | Values |
|---|---|
| Companies investing in bioplastics | Danimer Scientific, Cargill, PTT Global Chemical, NatureWorks, ExxonMobil, Dow, LyondellBasell, NOVA Chemicals, AptarGroup, Trinseo |
| Investment funds | Sky Ocean Ventures Fund, Morova’s Althelia Sustainable Ocean Fund, Closed Loop Partners' Circular Plastics Fund |
| Financial institutions | KFW, European Investment Bank, BNP Paribas Cardif, Garance |
| Types of investors | Corporations, venture capitalists, private investors |
| Types of innovations | Bioplastics, recycling infrastructure, recycled plastics spot market trading venues |
| Markets | The global plastic market is estimated at $600 billion, with total plastic sales of $712 billion in 2023 |
| Demand | Demand for recycled plastic is high, with current supply meeting only 6% of demand |
Explore related products
What You'll Learn
Companies investing billions in bioplastics
In recent years, companies have been investing billions in bioplastics, a type of plastic made from natural, renewable materials such as sugars and starches, rather than oil or gas. Bioplastics do not create any toxic waste during their production and can be safely composted or broken down under the right conditions.
One of the leading companies in the bioplastics industry is NatureWorks, a joint venture between Cargill and PTT Global Chemical. NatureWorks manufactures PLA (polylactic acid), a bioplastic produced by fermenting sugar from corn and sugarcane. The company is building a $600 million plant in Thailand to increase its production capacity by 50%.
Another prominent player in the bioplastics market is Danimer Scientific, a pioneer in the bioplastics and biodegradable/compostable polymer sector. Danimer produces PHA (polyhydroxyalkanoates), a bioplastic made using microorganisms that ferment with canola oil. The company has partnerships with major brands such as Starbucks, Dunkin', and Sofi Stadium, and its products have been shown to biodegrade in marine environments and soil.
Other companies investing in bioplastics include Corbion, a profitable bio-based ingredient company, and BASF, the world's largest chemical producer, which offers high-quality, fully compostable bioplastics derived from renewable sources. Avantium, a spin-off from Shell, is also active in the bioplastics space, having developed plant-to-plastics technology that converts plant-based sugars into FDCA, a base for polyester.
The global bioplastics market is expected to reach USD 25.27 billion by 2027, and companies are recognizing the potential for materials made from renewable sources to capture a larger share of the nearly $600 billion global plastic market.
The Truth About Latex-Free Condoms and Plastic
You may want to see also
Explore related products
Recycling infrastructure
ExxonMobil
ExxonMobil is a founding member of the Alliance to End Plastic Waste, a global organisation that aims to invest $1.5 billion over five years to support projects and solutions that address plastic waste in the environment. ExxonMobil is investing in plastic waste aggregation, sorting technologies, and advanced recycling technologies to increase the waste feedstock available for advanced recycling. They have opened a large-scale advanced recycling facility capable of processing up to 40,000 metric tons of plastic waste annually and plan to expand this amount to 500,000 metric tons per year globally by 2027.
Financial Institutions
Financial institutions also have a role to play in investing in recycling infrastructure. Morova's Althelia Sustainable Ocean Fund, with investors such as the German development bank KFW and the European Investment Bank, has invested $2 million in India to transform informal sector actors into 'waste-preneurs'. The World Economic Forum highlights the opportunity for financial institutions to deploy capital via venture capital/private equity deals, funds, or other vehicles that channel capital to recycling and the circular economy.
U.S. Department of Energy
The U.S. Department of Energy has announced investments of $27 million and $13.4 million in plastics recycling research and development through the BOTTLE Consortium and the Reducing EMbodied energy And Decreasing Emissions (REMADE) Institute. These projects aim to develop affordable solutions for "upcycling," designing new plastics that are more recyclable and biodegradable, and enhancing recycling capabilities to reduce emissions and improve the environment.
America's Plastic Makers
America's Plastic Makers, including Dow, LyondellBasell, and NOVA Chemicals, have contributed an initial $25 million to a catalytic fund managed by Closed Loop Partners. The fund aims to invest in scalable recycling technologies, equipment upgrades, and infrastructure solutions to improve and increase plastic recycling, with a goal of having 100% of U.S. plastic packaging reused, recycled, or recovered by 2040.
Empower
Empower has built a digital infrastructure to enable a circular economy by incentivising different stakeholders in the waste value chain to participate. Their platform has been used in over 40 countries to track the collection of over 450,000 tons of materials.
While these organisations are making significant investments in recycling infrastructure, it is important to note that there is still a lack of capital and investment in emerging markets, which presents a significant barrier to creating a profitable plastics recycling market in these regions.
Acid-Resistant Plastics: Which Polymers Endure?
You may want to see also
Explore related products
![Compostable Forks [100 Count, 7In] - Compostable Utensils for Party, BBQ, Daily Use - Recyclable Biodegradable Utensils – No Plastic Forks – Sustainable Eco Friendly Disposable Cutlery](https://m.media-amazon.com/images/I/51LzJTyfNQL._AC_UY218_.jpg)
Innovations in mechanical recycling
Closed Loop Partners, a New York-based investment firm, has launched a multi-million-dollar Circular Plastics Fund in collaboration with Dow, LyondellBasell, and NOVA Chemicals. This fund aims to optimize recovery infrastructure and scale reuse and refill models, while also reducing material usage in design. The initiative focuses on three strategic areas: access, optimization, and manufacturing. By expanding and updating collection infrastructure, improving sorting systems, and investing in manufacturing facilities that utilize recycled plastic, the fund seeks to increase the supply of recycled plastic to meet the growing demand.
The Circular Plastics Fund builds on previous investments in plastic recycling, with billions of dollars already poured into this sector over the years. Initiatives like these are vital to driving changes in existing plastic recycling infrastructure and technologies, fostering innovation, and creating sustainable business opportunities.
Another notable company in the field of mechanical recycling is Danimer Scientific, which has expanded its PHA production capabilities. PHA (polyhydroxyalkanoates) is a bioplastic that can biodegrade in marine environments and soil. Danimer's PHA is being used by companies like Starbucks and Dunkin' for straws and drink stirrers, showcasing the practical applications of mechanically recycled plastics.
Financial institutions also play a crucial role in promoting mechanical recycling innovations. For instance, the Sky Ocean Ventures Fund has invested $25 million in new technologies and companies working on biodegradable materials. Additionally, Morova's Althelia Sustainable Ocean Fund has invested $2 million in India, aiming to empower informal sector actors in the recycling space. These investments demonstrate the growing recognition of the financial potential in tackling plastic pollution.
While significant progress is being made, it is important to address the challenges of early-stage technologies, such as limited capital and the risks associated with transferring innovations to emerging markets. By overcoming these hurdles and continuing to invest in mechanical recycling innovations, we can move closer to achieving a sustainable future and reducing the environmental impact of plastic waste.
Plastic Pistols: Are They Reliable?
You may want to see also
Explore related products
Advancing circular systems for plastics
Plastic pollution is a pressing issue, fuelling climate change, biodiversity loss, and ocean degradation. To combat this, Closed Loop Partners, a New York-based investment firm, has launched a multi-million-dollar Circular Plastics Fund with Dow, LyondellBasell, and NOVA Chemicals. This initiative, Advancing Circular Systems for Plastics, aims to scale reuse and refill models, reduce material usage in design, and strengthen recovery infrastructure to tackle plastic waste. The fund's goal of optimising recovery infrastructure is part of Closed Loop Partners' broader commitment to building a circular economy.
Dow, a diversified materials science company, brings global reach, innovation, and leading business positions to the partnership. With operations in 31 countries and sales of $39 billion in 2020, Dow offers a broad portfolio of differentiated science-based products in high-growth markets such as packaging, infrastructure, mobility, and consumer care.
LyondellBasell, one of the world's largest plastics, chemicals, and refining companies, provides expertise in mechanical recycling, molecular recycling technologies, and the incorporation of renewable feedstocks. The company has a history of strong cash generation, returning profits to shareholders through dividends.
NOVA Chemicals, a company dedicated to building a circular economy for plastics, recognises that innovation is key to success. By creating plastic products that are easier to recycle and use fewer materials, NOVA Chemicals aims to achieve a zero-plastic-waste future.
The Circular Plastics Fund will focus on three strategic areas: Access, Optimisation, and Manufacturing. Firstly, expanding and updating infrastructure to collect more plastic waste. Secondly, upgrading sorting systems to increase the amount of high-quality recycled plastic. Finally, investing in facilities and equipment that use recycled plastic for manufacturing. These investments will help meet the growing demand for recycled plastics, fostering innovation and driving changes in plastic recycling infrastructure and technologies.
Printing on Polyurethane: Techniques and Tricks
You may want to see also
Explore related products
Water-soluble plastic technology
Timeplast, a pioneering polar chemical technology company, stands out in this field. With seven patents granted by the USPTO, they have developed a water-soluble material with controlled water resistance. This material can be transformed into various applications, such as durable products and lightweight films, catering to a wide range of industrial needs. Timeplast's technology introduces a crucial vulnerability to water, ensuring that their products are functional for daily use yet fully dissolvable at the end of their lifecycle.
Northeastern University researchers have also developed MECHS, a water-soluble bioplastic derived from engineered E. coli bacteria and a fiber matrix. MECHS offers strength, flexibility, and customizability, making it suitable for detergent pods, packaging, and other forms of primary packaging.
Additionally, companies like Danimer Scientific are investing heavily in biodegradable bioplastics. Their PHA-based products, such as straws and plastic drink stirrers, are already being used by major brands like Starbucks and Dunkin. NatureWorks, a joint venture between Cargill and PTT Global Chemical, is another key player in the bioplastics industry, focusing on PLA production with a significant global market share.
The investments in water-soluble plastic technology and bioplastics demonstrate a growing trend towards sustainable solutions. With plastic pollution being a pressing environmental concern, these innovations offer a promising future for a cleaner and more sustainable world.
Best Scratch-Resistant Plastics: Tough and Durable
You may want to see also
Frequently asked questions
Many companies are investing in plastic innovation, including Danimer Scientific, which produces PHA, and NatureWorks, which produces PLA.
PHA is a type of bioplastic that can biodegrade in marine environments and soil.
PLA, or polylactic acid, is a type of bioplastic usually produced by fermenting sugar from corn and sugar cane.
In addition to Danimer Scientific, other companies producing PHA include RWDC Industries, a Singapore-registered/US-located facility that raised $133 million in Series B funds in May 2020.
Yes, there are several funds dedicated to investing in plastic innovation, including the Circular Plastics Fund, the Sky Ocean Ventures Fund, and the Althelia Sustainable Ocean Fund.
