Veolia is investing £70 million (€81,227,650) into a closed-loop, tray-to-tray PET recycling facility – anticipated to process 80,000 tonnes of mixed plastics annually and result in new, food-grade packaging.
Described as its ‘biggest’ recycling project in the UK, Veolia’s facility in Battlefield near Shrewsbury, Shropshire, is currently under construction. It is set to be operational by early 2026.
The new facility will shred, wash, and flake PET trays and bottles from both domestic and industrial waste streams, with the further use of recycled plastic set to save up to 70% of the CO2 associated with virgin alternatives.
It seeks to rectify the UK’s apparent lack of closed-loop facilities that recycle PET trays into food-grade materials, which is attributed to the challenges of meeting the required standards.
Total investments are expected to reach around £1 billion (€1,160,430,000) by 2030, with Veolia considering the initiative an effort to help establish the circular economy in the UK. In turn, this is hoped to bolster the resilience of the UK recycling industry, thus benefitting the grocery sector and local consumers.
“Today’s announcement marks a major milestone for the UK recycling industry and a key pillar of Veolia’s GreenUp plan to drive sustainable resource management,” said Estelle Brachlianoff, CEO at Veolia. “By becoming the first company in the UK to recycle PET trays through a fully closed-loop process, we are reinforcing our leadership as a pioneer of the circular economy.
“This innovative facility not only advances our commitment to reducing waste and carbon emissions but also positions us to meet the growing demand for effective recycling as Simpler Recycling legislation comes into effect, ensuring more of this material is responsibly recycled for years to come.”
Gavin Graveson, CEO of Veolia UK, added: “At this critical time for the plastics recycling industry, with a number of players exiting the market due to low end market demand and macroeconomic concerns, it is crucial that the UK has innovative domestic recycling facilities. There is significant potential to grow the plastic recycling market, with 2.2 million tons of plastic packaging placed on the market each year in the UK.
“Building a world-leading, profitable circular economy is essential—not only to create jobs but also to support the nation’s net zero ambitions. We would welcome the UK Government’s support in maintaining this momentum with the right incentives, including a timely and meaningful escalation of the current Plastic Packaging Tax.”
This announcement comes after DePoly revealed its showcase plant back in April; the facility is designed to convert PET and polyester waste into 500 tonnes of ‘virgin quality’ fossil fuels every year, all without utilizing fossil fuels.
Additionally, NOVA Chemicals has announced its first polyethylene film recycling facility in Indiana, USA. This location is expected to produce 100 million lbs. of SYNDIGO recycled PE for food- and non-food-grade packaging applications.
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