Private investment and alternative finance specialist IW Capital is making a £2 million investment in Impact Recycling Limited.
The investment will be used as development capital to drive growth by upgrading existing equipment in Newcastle, increasing the level of shift patterns, employing additional staff resource, and funding the initial licence opportunities.
Impact Recycling has developed a breakthrough plastic recycling technology which separates the components of post-consumer, mixed plastic waste to recover two consistent streams of PE and PP, each with over 95 per cent purity.
The water based, density separation process is known as Baffled Oscillation Separation System (BOSS), which significantly improves the economics of plastic recycling and is a driver to divert significant quantities of PE and PP away from landfill and incineration.
As the demand for recycled plastic increases, Impact s well placed to deliver high purity levels of plastic.
The mixed plastic that Impact uses as feedstock accounts for 70 per cent of plastics produced, and makes up 60 per cent of the plastic currently sent to landfill or incineration in the EU.
The BOSS technology enables cost effective recycling to develop and makes a significant difference to the volumes of plastic waste sent to landfill or incineration.
Luke Davis, Chief Executive of IW Capital, said: “We are all really excited to be providing this investment for Impact Recycling, both in terms of the inventive service they provide and the exit opportunity that the business presents.”
“In recent years there has been an increasing appetite within investors to support ethical and forward-facing businesses while retaining the same rates of return on their capital. This type of opportunity offers both, through an innovative and scalable solution to one of the biggest problems facing the world today.”
“We have seen tremendous demand for SME investment opportunities in the last 18 months and this is no exception.”
David Walsh, CEO of Impact Recycling, said: “This investment will allow us to accelerate the growth of our breakthrough BOSS technology, significantly increasing the amount plastics recycled in the UK and paving the way to a circular plastic economy.”