Rotterdam-based Infinity Recycling’s Circular Plastics Fund, a European impact fund that invests in companies developing new processes for the advanced recycling of plastics has announced the new closing of its Circular Plastics Fund I, achieving €105.3 million in committed capital.
New investors in the fund include the European Investment Fund (EIF) and GC Ventures, the corporate venture capital arm of Thailand-based PTT Global Chemical Public Company (PTTGC). “Applying the circular economy principle to closed-loop plastic waste management, recycling, and upcycling is mandatory. This includes developing new solutions through innovation and their market impact to better meet people's needs,” said Kamel Ramdani, senior vice president of PTTGC and managing director of GC Ventures, explaining his company's decision to invest.
The fund, in which the EIF has signed a €50 million participation, has a target size of €150 million, a third of which is now covered by the EIF’s commitment.The transaction is supported by the InvestEU programme.
“For most Europeans recycling is already an integral part of their daily lives. Establishing a true circular economy also requires industrial solutions that allow plastics to be recycled fully, efficiently and many times over,” said EU Commissioner for Environment, Oceans and Fisheries Virginijus Sinkevičius. “Today’s funding through InvestEU will help innovative European companies advance a circular plastics industry, acting as a booster for the EU’s green transition.”
Jeroen Kelder, managing partner at Infinity Recycling pointed to the fact that while demand for the use of recycled commodities in plastics production is on the rise, only a few advanced plastics recycling technologies have been able to achieve commercial scale. “While these technologies are often viable, many companies lack the specialised financial structuring and business development skills required to scale up production, source high-quality inputs and establish supply agreements with offtake counterparties,” he said
To date the fund, launched in February 2022, has invested in four portfolio companies, with three follow-on investments. Building on the momentum in investor interest and deployment, the fund is well on its way to final closing, projected for Q4 2023.
"We are pleased to have .. the support from new limited partners such as EIF and GC Ventures, who have recognised Infinity Recycling's differentiated investment focus,” said Jan-Willem Muller, managing partner at Infinity Recycling.