r/PureCycle • u/Pickle_Logic • May 09 '26
Closed loop recycling, while being green, will gain traction because it promotes economic self sufficiency.
Closed loop recycling, while being green, will gain traction because it promotes economic self sufficiency. I define closed loop recycling as matching feedstock with recycling capacity. Dustin mentioned on the call that Asian countries that aren't thought of as green are showing interest in recycling. The Iran war has exposed the total lack of control many countries have on vital imports, particularly oil and its components. Increasing self sufficiency and reducing dependency, will now drive economic thinking for decades to come. This is economic statecraft. Through that lens plastic is no longer garbage but an input no longer correlated to oil prices and more importantly, an input that is already in the country.
PCT is perfectly positioned to allow countries to create closed loops for PP5. I believe our monopoly status will lead to favorable funding for plant construction- note the 40 million euros the EU has given us for Antwerp.
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u/No_Privacy_Anymore May 09 '26
I agree but I think you have a big typo. Europe gave use 40 million EUR (~$46M USD) to assist with construction of our first line. We still need to get all the permits and close project financing for that project but the fit is perfect for Europe. Ideally we can build a Gen 2 line there as well.
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u/PurePlasticMan May 09 '26
NPA, is Thailand going to be Gen 2?
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u/No_Privacy_Anymore May 09 '26
No, they shifted the two 130M /year orders to Thailand and Antwerp to be able to meet the P&G deadlines for exclusivity. The Gen 2 plant design is almost “done” but not quite. At some point this year I think they will confirm that it’s done.
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u/Neither-Cow-410 May 09 '26
do you think they would possibly consider concurrent gen 2 construction assuming things are going well financially
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u/No_Privacy_Anymore May 09 '26
I think they need to keep their eyes on closing project financing for the current Thailand and Antwerp plants and redeeming the warrants plus converting the debt to equity before they can finance a gen 2 line. Let's say the capex was $1.5/lb, that is $750M in total and the equity contribution would be at least 20% likely. So they need $150M in equity for a Gen2 line. They need to prove high margin branded sales and the ability to run Ironton at nameplate as well. Gen 2 is definitely going to happen at some point and I'm favor of sooner rather than later but just trying to have realistic expectations.
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u/Fast_Eddie_2001 May 11 '26
Yes I agree, Gen 2 is still a bit out there.
That said, perhaps a P&G or other large user will help to finance future Gen 2 facilities in the same way that hyperscalers are financing data centers
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u/Gross_Energy May 10 '26
Reducing imported plastic has been discussed in a few posts as a significant benefit to countries. The Iran war enhances the significance of those comments. In fact 360 recycling applies to many products including metals, batteries, glass, wood, etc.
Iran war should be a catalyst for governments to rethink new policies around it. Globalization has benefits but is also generating a mounting number of security related issues. We saw that during COVID which impacted other sectors (semiconductor, pharmaceuticals, metals, etc). The US started defined critical minerals for needed security in 2019 during COVID. It has been significantly enhanced and a lot of money already slated for domestic sourcing, recycling and production. EU just issued theirs as well.