Canada-based PET recycler Loop Industries announced it has secured €10 million in funding from Reed Societe Generale Group, a European investment firm majority-owned by the bank Societe Generale.
As part of the transaction, Loop has sold its first technology licence, with additional milestone-based payments from Reed Societe Generale Group to follow.
The technology licence will be granted to a European partnership owned 90% by Reed Societe Generale Group and 10% by Loop, which is being formed to develop Infinite Loop manufacturing facilities in Europe.
In January, Loop and Reed signed a non-binding memorandum of understanding (MOU) to commercialise Loop’s chemical recycling technology in Europe. At that time, Reed intended to provide €60 million in funding, with half to be invested in the joint venture and the other half in technology commercialisation.
Plans for Loop’s first announced plant in Europe have since been abandoned due to lack of profitability.
Analysis of Loop Industry’s financial reports reveal that the company was fully relying on Reed’s financing to avoid running out of funds.
“Failure to secure additional financing on favourable terms when it becomes required would have an adverse effect on the Company’s financial position and on its ability to execute its business plan,” the financial statement on Oct. 15 reads.
Now that it has secured funding from Reed, Loop plans to fund its PET recycling project in India and cover operational cash flow needs. That project is a joint-venture with India-based polyester producer Ester Industries. The partners plan to build a 100,000 tonnes/year facility to produce dimethyl terephthalate (rDMT) and recycled monoethylene glycol (rMEG). Operations are expected to begin in 2027.
"The sale of our first technology licence is a transformative milestone, proving the scalability and market readiness of our Infinite Loop technology," said Daniel Solomita, CEO and founder of Loop Industries. "Our financing agreement and partnership with Reed Societe Generale Group propels us into a new phase of growth - expanding into Europe with strategic precision while advancing our flagship Infinite Loop project in India.”