New York-based investment company Closed loop partners launched the Closed Loop Local Recycling Fund, a circular economy program to develop recycling systems in underserved US communities. Funding for the launch of the project on January 20, 2022 is a $35 million investment from PepsiCo Beverages North America.
Closed Loop Partners will use the capital to deploy small-scale, modular recycling systems in rural areas and small towns that lack access to recycling due to geographic remoteness from large municipal materials recovery facilities (MRFs) or lack of funding.
Small systems are less capital intensive than conventional MRFs and reduce costs and greenhouse gas emissions associated with transporting recycled materials to distant recycling centers.
Additionally, each of the small systems can recycle at least 8,000 tonnes per year of materials – including plastic, paper, glass and metals – and keep 400 tonnes of recycled polyethylene terephthalate (rPET) in circulation each year.
PepsiCo’s investment in the local recycling fund will support local MRF development projects. fast business recently reported that these smaller projects only cost about $1.5 million each, compared to $30 million for a new full-scale recycling center, an amount confirmed by Closed Loop Partners.
In addition to boosting access to recycling and reducing waste, the Local Closed-Loop Recycling Fund will release a new supply of rPET to support PepsiCo’s pep+ (PepsiCo Positive) sustainable packaging strategy. However, proximity to PepsiCo bottling or bottle molding plants will not be the most important criteria as Closed Loop Partners evaluates potential projects.
Recycling site selection factors.
“The selection of projects to be funded will be more tied to the opportunity for additional rPET capture and the local economy,” for example, transportation distance to the nearest PET collector, said Georgia Sherwin, director strategic initiatives and communications at Closed Loop Partners. plastics today.
“Eligible communities include those that do not have existing curbside recycling programs, those that have recently ended curbside recycling programs, those at risk of ending programs, and those that have curbside recycling programs. but with a demonstrable ability to boost the capture of recycled PET with the addition of a small-scale MRF in the community,” added Sherwin. “Smallest local MRFs are laying the foundation for the future of recycling, introducing a new way to meet and adapt to the diverse needs of communities across the United States.”
Closed Loop Partners is currently accepting apps municipalities and private companies seeking debt financing to build small modular MRFs. Public and private sector entities – including local environmental quality departments, local hauliers and manufacturers of recycling systems – are encouraged to inquire.
In addition to providing funding, Closed Loop Partners will serve as the project developer for the new MRFs, advising on system design and equipment vendors (Revolution Systemsexample), overseeing projects and arranging for the removal of recycled materials.
“We see a lot of opportunity in the space and know that smaller scale, more localized supply chains are key to building resilient circular supply chains,” Sherwin said. “We are excited to build and grow the partnerships needed to make this happen, including with various manufacturers interested in supporting the development of this type of physical infrastructure.”
plastics today reported PepsiCo NA’s $15 million investment in Closed Loop Partners in December.