Release date: 25 November 2020
Promoter – Financial Intermediary
REPETCO INNOVATIONS SLLocation
Description
The project concerns a multi material pots, trays and tubs (PTTs) recycling facility with an input capacity of 100,000 t/yr in Albacete, Spain. The facility will receive PTT waste and convert it with an innovative mechanical recycling method into recycled PET and PE.
Additionality and Impact
The project comprises the financing of a new and innovative recycling facility in Spain under the Innovfin Energy Demonstration Projects (Circular Economy) facility for plastics that today largely is landfilled or incinerated. The project meets the Bank's Paris Alignment criteria, contributes to the EIB's objective of Sustainable energy and natural resources, and it supports EU policy objectives and related plastic recycling targets. The project will contribute to the circular economy transition, and it will generate positive externalities in the form of reduced emissions and climate change impact associated with incinerating plastics.
By supporting a new market player that has developed a new and innovative recycling technology, the project completes a missing link in the value chain for multi-material plastics, and will enable a closed loop recycling of PET pots, tubs and trays.
The project is implemented by an experienced management team that has patented and tested their new technology. The team has done extensive market analysis, dialogue and testing on both feedstock and off-take side.
EIB's involvement will contribute to closing the investment gap and in providing long-term finance that the Promoter has not been able to access from commercial banks, due to the innovative nature of the technology (high technology risk) and market uncertainties (high market risk). The bank also offers diversification of financing sources, sculpted repayments and contributes to the financial structuring.
Objectives
The project comprises of investments in a new innovative recycling facility for multi plastic material pots, tubs and trays (PTT), that up to now have been difficult to recycle. The recycled PET produced in the new facility will provide feedstock to PTT producers enabling closed loop recycling. The facility will also produce some recycled polyethylene. The project will increase the material recovery from waste and contribute to attainment of recycling targets. The project supports the transition to a more circular economy, in line with the EU Circular Economy Package, and contributes to the mitigation of climate change.
Sector(s)
- Industry - Water supply; sewerage, waste management and remediation activities
Proposed EIB finance (Approximate amount)
EUR 31 million
Total cost (Approximate amount)
EUR 62 million
Environmental aspects
The project is expected to fall under Annex 2 of the Environmental Impact Assessment (EIA) directive (Directive 2014/52/EU amending the EIA Directive 2011/92/EU), and EIAs are required/the screening decision has not yet been received. Compliance with the Habitats directive (92/43/EEC), Birds Directive (79/409/EEC) and the Industrial Emissions Directive 2010/75/EU may also be required, where relevant. This will be verified during the appraisal.
Procurement
The Bank will require the Promoter to ensure that contracts for the implementation of the project have been or will be tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/23/EU / 2014/24/EU, where applicable, as well as Directive 92/13/EEC or Directive 89/665/EEC, as interpreted by the Court of Justice of the EU, with the publication of tender notices in the Official Journal of the EU, as and where required.
Status
Signed - 20/12/2021
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).