This VTT Finland spin-out aims to revolutionise circular plastic recycling

Having spent four decades developing and perfecting thermal conversion technology, VTT Technical Research Centre of Finland Ltd has announced its plan to spin out a new company – Olefy Technologies.

Its patent-pending technology can extract over 70 per cent virgin grade plastics and chemical raw materials components from plastic waste. The new process can be done in a single step, significantly reducing the cost of plastic recycling and making recycling a preferred option for landfill-bound waste.

The opportunity to get virgin quality plastic from previously unusable plastic waste means that with Olefy it is economically viable to recycle most of the world’s plastics with minimal sorting by consumers and businesses.

Quantum leap

VTT CEO Antti Vasara said: “Plastic waste is one of the five major global problems that VTT has strategically set itself to solve. Olefy is a quantum leap in recycling that will change the way the world views plastic by making it truly circular and guiding us towards carbon neutrality even faster.”

A major advantage of the virgin quality materials produced enables plastic to be recycled an infinite number of times.

Matti Nieminen, Head of Technology at Olefy, added: “One of the problems with current recycling methods is that the quality degrades every time plastic is recycled. After several rounds of mechanical recycling, the quality becomes too poor, and the plastic is no longer usable and goes to a landfill. With the Olefy recycling process, the quality of the plastic is equal to virgin grade, so it can be recycled indefinitely and materials no longer need to end up in landfills. In essence, Olefy will make it possible for plastic to be a true part of the circular economy.”

Olefy’s technology eliminates the need for naphtha feedstock and is also able to produce enough energy for the process.

“The economic benefits of having virgin grade components from recycled materials can completely change the dynamic of global oil consumption. Olefy will significantly reduce the need to use new oil for making plastic and maybe even create a new economic incentive to clean up plastic from land and water as it becomes a valued commodity,” Nieminen continued.

The Olefy process has shown that it can reduce the cost of production for recycled plastic so significantly that it can lower the bar for global companies to use a higher percentage of recycled material in their products and packaging. With demand for recycled plastics growing much faster than the supply, major brand owners are responding by utilising recycled materials. “Olefy responds perfectly to these challenges by making plastics recycling truly feasible on an industrial scale,” said Timo Sokka, Head of Business at Olefy. “[…] significantly lower capital expenditure requirements, accelerating market demand, and price premiums make these investments also very attractive for the steam cracker operators.”

Olefy’s technology has been developed as part of VTT LaunchPad, a science-based incubator, where VTT researchers and technology are brought together with business expertise and investors to renew industries. The working Olefy pilot is successfully running at VTT Bioruukki Pilot Centre in Espoo, Finland. The company is currently discussing partnerships and negotiating with investors for scaling, business development, and licensing of the technology.

The first industrial demonstration operation is expected to be operational by 2026.