Vitol B.V., headquartered in Rotterdam, has announced that it has entered into a conditional agreement to acquire a controlling interest in the Danish recycler Waste Plastic Upcycling A/S (WPU). The transaction is subject to certain conditions, but it is expected to close within the next week. At that time, Vitol will own 90.36% of WPU's share capital.
WPU upcycles end-of-life plastic waste to oil using batch pyrolysis technology. The oil can be used as full-range naphtha or distilled to kerosene/jet fuel. WPU runs a commercial-scale facility in Fårevejle with the capacity to recycle 30,000 tonnes of waste plastic a year and is planning to add two more sites—150,000 tonnes of capacity—by 2026.
“Plastic waste is a global problem with some 4001 million tonnes of plastic waste produced each year,” said Tom Baker, head of Naphtha, Vitol. Yet, he added, demand for plastics worldwide will continue to grow even after demand for other oil products, such as gasoline and gasoil, begins to fall.
“Effective and scalable plastics recycling solutions are urgently needed. WPU’s technology turns waste into usable product, creating the possibility of a circular plastics system. We look forward to working with WPU as they expand and develop the business.”