Cleanaway and Qenos have partnered for a circular solution to help solve Australia’s soft plastics recycling challenge.
Stephen Bell, Qenos Chief Executive Officer, said the two companies had been working on a Circular Plastics Project for more than nine months that will initially target the collection of 100,000 tonnes of soft plastics per annum – more than ten times the total annual volumes collected through the recently suspended REDcycle collection and recycling scheme.
“Through investment in advanced recycling infrastructure, our companies would together be able to close the loop on soft plastics,” Bell said.
The total investment is estimated at more than $500 million and is projected to create 185 direct and more than 2900 indirect local jobs.
Cleanaway will look to partner with councils and commercial customers to collect the plastics and invest in new infrastructure to process the materials into a form that is suitable for advanced processing.
Qenos and Cleanaway propose to jointly invest in the advanced recycling technology that will convert the plastic into feedstock and produce new plastic through pyrolysis. Qenos, Australia’s only manufacturer of polyethylene and polymers, would also invest in further upgrades to its existing plants to convert this recycled feedstock into a polyethylene called Alkanew, that can be used to remanufacture the very same packaging. This technology is already operating at commercial scale overseas.
The two companies have completed technical and economic feasibility studies covering all aspects of the circular supply chain and are in the final stages of completing a lifecycle assessment of the carbon benefits of the new process. A public summary of the results is expected to be released early 2023 and will be followed by the development of a business case to support the economics of the proposed project.
In a statement, Cleanaway said Australian packaging manufacturers have expressed interest in buying Alkanew circular polyethylene when supply comes online.
Mark Schubert, Cleanaway Chief Executive Officer, said the project was a scalable solution for household soft plastics.
“This will provide major retail customers, food manufacturers, and packaging suppliers with enhanced sustainability outcomes through recycling and reuse with the benefit of diverting these materials from landfill,” he said.
Bell said unsustainably high energy costs that are challenging the viability of Qenos’ operations in Sydney and Melbourne are a major roadblock for investment in the circular soft plastics project within Australia. He has called for the energy price crisis to be resolved urgently, as a key enabler for creating a circular economy for plastics in Australia.
“Ensuring that the unique petrochemical facilities of Qenos are viable into the future will be essential for the creation of a fully circular economy for plastics in Australia,” Bells aid.
For more information, visit: www.cleanaway.com.au
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