Vitol B.V. (“Vitol”) said that it has entered into a conditional agreement to acquire a controlling interest in Waste Plastic Upcycling A/S (“WPU”). On completion, which is subject to certain conditions precedent, Vitol will own 90.36% of the share capital of WPU.
WPU upcycles end-of-life plastic waste to oil, using batch pyrolysis technology, for use as full range Naphtha or to be distilled to kerosene/jet fuel. Based in Denmark, WPU has an operational commercial scale facility in Farevejle with the capacity to recycle 30,000 tonnes of waste plastic a year. An additional two sites are planned, which would bring WPU’s total recycling capacity to 180,000 tonnes p.a. by 2026.
Tom Baker, Head of Naphtha, Vitol said: “Plastic waste is a global problem with some 4001 million tonnes of plastic waste produced each year. At the same time, demand for plastics worldwide continues to grow and will continue, even after demand for other oil products, such as gasoline and gasoil begins to fall.
“Effective and scalable plastics recycling solutions are urgently needed. WPU’s technology turns waste into usable product, creating the possibility of a circular plastics system. We look forward to working with WPU as they expand and develop the business.”
The transaction is expected to close within the next week.