The deal supports Amcor and Licella's commitment to creating a circular economy for soft plastics and will help Amcor to reach its goal of achieving 30% recycled content in its portfolio by 2030
The new plant will use Licella's patented Cat-HTR technology. (Credit: © Amcor plc)
Amcor Australia & New Zealand (ANZ), a business unit of packaging solutions provider Amcor, has signed a memorandum of understanding (MoU) with Australian technology firm Licella to invest in one of the first plastic advanced recycling facilities in the country.
The proposed recycling facility will be situated in Melbourne. The stage one of the facility is anticipated to process 20,000 tonnes per annum of waste plastic leveraging Licella’s patented Catalytic Hydrothermal Reactor (Cat-HTR) technology.
The HTR process can chemically convert low-value and waste feedstocks into high-quality oil, which can be then refined to sustainable and renewable fuels and chemicals, the packaging solution provider said.
As per the firm, the plant will depend on collection activities to divert soft plastic waste from landfill or incineration. The Victorian Environmental Protection Agency has already approved the first stage of the project.
The deal supports Amcor and Licella’s commitment to creating a circular economy for soft plastics. It will also help Amcor to reach its goal of 30% recycled content in its portfolio by 2030.
According to Amcor Flexibles Asia Pacific president Mike Cash, Amcor is proud to be part of the solution, supporting the development of new technologies and creating a local circular economy for soft plastics in Australia.
Cash added: “We are proud to be able to help deliver a local supply of food-grade recycled content that can enable more customers to participate in a circular economy.”
Previously, both firms partnered on Licella’s Feasibility Study, which validated a local supply chain for food-grade recycled soft plastic and showed how important the proposed facility would be for the economy and the environment.
Subject to their own internal approvals, both parties will have more rounds of talks on the final terms and agreement.
Licella CEO Dr Len Humphreys said: “Licella and Amcor share a vision for a more sustainable future for plastic.
“We are delighted to partner with Amcor as we develop our first Australian advanced recycling facility, with our Cat-HTR technology that enables soft plastic to be repeatedly recycled into food-grade post-consumer recycled content, which is rapidly increasing in demand both locally and globally.”