UBQ Materials, an Israeli company that has developed a conversion technology that transforms household waste into what the company says is a ‘climate-positive, cost-competitive, and fully recyclable’ thermoplastic material, has entered into its first supply agreement with a raw materials producer. Until now, the company has delivered its product to brandowners and manufacturers of durable goods. UBQ has now signed a deal with Carmel Olefins (CAOL), a wholly-owned subsidiary of the Israel-based refinery and petrochemicals conglomerate, Bazan Group - the country’s sole manufacturer of petrochemicals for raw materials in the plastics industry.
Bazan has set an objective of reaching 15% green polymers by 2025 and 30% green polymers by 2030.
CAOL will incorporate the patented bio-based material, likewise called UBQ, with its own resin production. UBQ can be used either on its own and in conjunction with traditional oil-based resins to offset the overall carbon emissions of end-products. The development of reduced carbon resins will be done in cooperation with Ducor Petrochemicals, CAOL’s subsidiary in Rotterdam, the Netherlands.
“Integrating UBQ at the resin production stage, not only expands the distribution of the material across the supply chain, but opens doors for new customers and new applications,” said Tato Bigio, Co-founder and Co-CEO of UBQ Materials.
The initial quantities of UBQ will be supplied by UBQ’s facility in Tze’elim, Israel. Once the company’s Netherlands facility is completed, subsequent deliveries will be made from there. That facility - the first industrial scale UBQ plant in the world - will have an annual capacity of 73,000 tons, and is scheduled to go into operation sometime in the forth quarter of 2022. It will supply an annual ten thousand tons to Ducor Petrochemicals.
CAOL and Ducor’s are working on the development of a new specialty PP, which is to be marketed under the name Eco Capilene and which incorporates UBQ’s material, providing carbon-reduced and recyclable materials to manufacturers.
“This agreement is another step towards implementing our new sustainability strategy. As part of our vision, we are increasing our portfolio of advanced and upcycled polymers to supply the polymers industry with innovative, sustainable options,” said Malachi Alper, CEO of the Bazan Group.
This sustainable strategy, announced in July, formulates a pathway for Bazan’s transition from a company producing refined petroleum products and polymers to a leading supplier of renewable energy for transport and of advanced polymers.
The ability to supply customers with polymers infused with a competitive material that offsets climate emissions and diverts waste from landfills will also allow Bazan to better support its clients’ Sustainable Development Goals, said Asaf Almagor, VP – Director, Polyolefin Business Unit at Bazan Group.
“Bazan supplies the global polypropylene market with more than 500 thousand tons of polypropylene per year, and integrating UBQ will enhance our resins’ environmental profile, driving the industry’s transition to greener initiatives.”