- Valoregen is building the largest hybrid recycling plant in Damazan, France, with a processing capacity of up to 70 kilotonnes of plastic waste per year.
- Dow will be the main customer for post-consumer recyclates (PCR) from Valoregen's new facility.
- In the future, the site will combine advanced and mechanical recycling facilities in one ecosystem.
Dow (NYSE: DOW) announces its collaboration with French recycling company Valoregen: the two companies are building the largest hybrid recycling facility in France, which will be owned and operated by Valoregen.
This is another example of Dow's ambition to develop innovative new recycling approaches with companies across Europe and around the world to implement the circular economy and solve the problem of plastic waste.
Fabrice Digonnet, Head of Mechanical Recycling Strategy at Dow Packaging & Specialty Plastics, explains: "We are excited to partner with Valoregen on this innovation project and help promote recycling across Europe. Recycling rates for plastics are far too low and we need to work to spread the technology and make plastic waste marketable. Our investment in Valoregen will help increase mechanical recycling and promote the circular economy for plastics while reducing carbon emissions. It is with vigour that we bring investment and expertise to this groundbreaking initiative to further expand circular economy solutions."
The plant is expected to be operational by the end of the first quarter of 2023 and will deliver its first recycled materials. This will use traditional mechanical recycling, which converts certain plastic waste into secondary products, and advanced chemical recycling processes, which break down mixed plastics into their original naphtha form to produce virgin polymers for plastic production.
Valoregen aims to create a unique ecosystem that can recycle all kinds of plastic waste in one place. Both recycling technologies complement each other and are essential to meet Dow's commitment to incorporate at least 100,000 tonnes of recycled material into the products it sells in the European Union by 2025.
Thierry Perez, President of Valoregen, added: "Working with Dow and trusting in Valoregen's innovative and pioneering model has been key to the success of this project and we are delighted to now make this partnership official. Our dedicated team has developed a concrete, agile solution that drives the circular economy of plastics and decarbonisation. Thanks to this innovation, recycling for high-end technical packaging applications becomes possible. We are happy to work closely with Dow to develop such circular solutions."
Bringing these technologies together under one roof will increase the energy efficiency of the plant by achieving a yield of more than 80% thanks to the intelligent energy management system, while reducing the amount of waste. This is well above the average efficiency of a conventional mechanical recycling plant of around 60-70%. In addition, Valoregen will reduce all carbon emissions from these processes by limiting the transportation of waste products to different sites.
Dow will be the main customer for Valoregen's post-consumer recyclates and will use them to develop new plastic products under the REVOLOOP™ brand. The company will also support Valoregen with extensive recycling technology expertise.
Mechanical recycling is an important element of Dow's circular economy strategy. This means supporting Valoregen in expanding its production to ultimately increase the recycling rate in Europe. Mechanical recycling currently accounts for the majority of plastics recycling, but rates are low. Dow will continue to work with Valoregen to fully develop the ecosystem through advanced chemical recycling. The site has been approved by the competent authority for the protection of the environment (I.C.P.E. - Installation Classée pour la Protection de l'Environnement).
The investment was structured and led by Dow's venture capital division, which focuses on strategic investments in innovative start-up companies that enable and accelerate Dow's business growth and value creation.
The collaboration with Valoregen is another milestone in Dow's efforts to achieve its sustainability, climate and plastic waste reduction goals. These include:
- Closing the loop: Dow is committed to closing the loop by making 100% of Dow's products reusable or recyclable in packaging by 2035. Currently, 85% of its products fit into this category.
- Protecting the climate: By 2030, Dow will reduce its annual net carbon emissions by five million tonnes, or 15%, from a 2020 baseline. In line with the Paris Agreement, the company aims to be carbon neutral by 2050. This includes the introduction of resource-efficient production technologies that help customers reduce their carbon footprint. For example, Dow and Shell are working on an electric heating programme for steam cracker furnaces to significantly reduce CO2 emissions in a key industrial process.
- Reduce plastic waste: By 2030, Dow aims to enable the collection, reuse or recycling of 1 million tonnes of plastic through direct actions or collaborations. The company is committed to investing in key technologies, infrastructure and partnerships to significantly advance plastics recycling globally.