Carbios/IVL
(Source: Carbios)
A non-binding Memorandum of Understanding (MOU) to form a joint venture (JV) for the construction of the world’s first PET bio-recycling plant in France has been signed by biotech company Carbios and chemical producer IVL.
Based on and subject to the comprehensive terms set out in the MOU, IVL plans to mobilize about €110 million for the JV in equity and non-convertible loan financing, pending final engineering documentation and final economic feasibility studies. Both parties have acknowledged their mutual support for the implementation of the project and their intent to finalize contract documentation before the end of 2023.
Subject to the successful performance of this first plant in France, IVL confirms its intention to potentially expand the technology to other PET sites for future developments.
Under the agreement, Carbios SA, Clermont-Ferrand/France, which filed for plant permitting in December 2022, should acquire 13 ha land from IVL’s existing PET plant at Longlaville/France and expects to be granted permits by Q3/2023, allowing start of construction by the end of 2023 and targeted commissioning in 2025. The land surface offers the possibility to double capacity. Pursuant to this MOU, Indorama Ventures Public Company Ltd. (IVL), Bangkok/Thailand, shall ensure 100% of output repolymerization and both partners shall collaborate to secure feedstock supply.
The total capital investment for the new plant is re-estimated to be around €230 million, taking into account recent impact from inflation. Project costs shall be financed by the sums mobilized by IVL, the French State and Grand-Est Region subsidies available for the project, and by equity capitalization of the JV by Carbios. Part of Carbios’ equity injection into the JV shall be financed by a portion of the company’s current cash position (i.e. €86 million as of April 30, 2023). It is actively examining the best options to finance its remaining equity injection into the JV.
The project is part of IVL’s Vision 2030 ambition to build on its leadership as a global sustainable chemical company. The company’s ESG commitments include spending $1.5 billion to increase its recycling capacity to 50 billion PET bottles per year by 2025 and 100 billion bottles per year by 2030. To meet these goals, the company the is investing in new recycling technologies, including advanced recycling, in addition to expanding its global footprint of mechanical recycling sites, including 2 in France.
Carbios has developed a disruptive enzymatic depolymerization technology that enables efficient and solvent-free recycling of PET plastic and textile waste into virgin-like products with an aim to achieve true circularity.
After successful ongoing operations in its demonstration plant in Clermont- Ferrand, Carbios has been collaborating with IVL for over a year to assess the commercial and technical feasibility of the technology. The world’s first industrial-scale enzymatic PET recycling plant at Longlaville will have a capacity to process about 50,000 tons of post-consumer PET waste per year, including waste that is not recyclable mechanically, equivalent to 2 billion PET colored bottles or 2.5 billion PET trays.
