Plastic waste innovator Impact Recycling has secured a £6m investment led by private equity firm IW Capital.
The specialist in plastics separation, which has sites in County Durham and Scotland, already had the backing of IW, which has invested £4.6m in the business since 2019. The latest sum is said to come at a time when the regulatory environment has tightened, particularly given the European Packaging and Packaging Waste directive introduced earlier this year.
New regulations require 35% of recycled content to be used in any plastic packaging by 2030, rising to 60% by 2040. Impact's BOSS, or Baffled Oscillation Separation System, separates mixed plastic water to recover polyethylene (PE) and polypropylene (PP), each with over 95% purity.
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The water-based recycling process is said to capture significant quantities of polyethylene and polypropylene - both used in a wide variety of products - and reduce the need for landfill an incineration. Once diverted, the substances are formed into a resin which is sold to manufacturers.
Applications for the BOSS technology include laminate and multilayer plastic film which are otherwise incinerated or sent overseas and dumped in landfill and waterways which the firm says can create long term environmental problems. It is also being adapted for turning waste fishing nets and waste carpet into recycled materials - a move that is working towards creating BOSS-1D technology.
Last year Impact revealed it had secured investment from South Korean giant LG for the separation tech. The Seoul-based company said it envisaged following its injection with a license agreement. Impact has also received funding through Innovate 海角视频 and the EU’s LIFE programme.
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Christopher Soames, investment director at IW Capital said: “Impact Recycling is operating in a $44bn market, which is growing strongly due to consumer demand, regulatory changes and voluntary industry action. We’re very excited to be backing Impact Recycling as the demand for its patented plastic recycling technology increases and we see major industry players taking sub-licences to involve Impact Recycling in their operations.”
David Walsh, co-founder of Impact Recycling, said: “This follow on investment is a testament to the confidence of investors and the brilliantly supportive team at IW Capital who understand the mission and the vision of Impact Recycling. This is a moment of great opportunity for the company as we look to expand our recycling facilities and increase our operational capacity. Circular economies are becoming increasingly important, and we are very excited about what the future holds.”