|
WRAP (Waste & Resources Action Programme) has launched a
new Mixed Plastics Loan Fund worth £2 million to boost reprocessing
in the UK of plastics such as yoghurt pots, margarine tubs
and rigid plastic food trays.
At a time when prices for recovered PET plastics are at an
all-time high and with 90% of mixed plastics in the waste
stream presently going to landfill, the Mixed Plastics Loan
Fund (MPLF) will deliver a shot in the arm to the market by
providing capital support to potential investors in mixed
plastics reprocessing capacity in the UK.
The Fund will also contribute to the Green Economy by stimulating
this area of the micro-economy and creating jobs.
WRAP created the MPLF to supply a source of funding which
had been more difficult to secure through traditional financing
sources due to the emerging nature of the industry.
“A reduction in available capital brought on by the current
economic climate - together with recent market price volatility
in recovered materials - has meant that the risk-reward balance
is still a barrier to private sector investment in mixed plastics
recycling in the UK,” said Marcus Gover, WRAP’s Director of
Market Development.
“By establishing a loan fund - as opposed to offering a capital
grant - investors can pay back the money after they start
making a profit and WRAP can reinvest those funds into more
support for the mixed plastics market,” he said.
Last summer, research undertaken by WRAP proved that it was
technically possible, commercially viable and environmentally
best to recycle mixed plastics on a large scale. WRAP followed
this up with a capital grant awarded to recycling firm Greenstar
WES, which is now commissioning infrastructure for the UK’s
first mixed plastics reprocessing plant. It aims to deliver
20,000 tonnes of mixed plastics reprocessing capacity and
to be processing this material by March 2011.
WRAP’s long-term goal is to see mixed plastics recycling
capacity established and maintained purely by the private
sector. In offering a loan rather than a grant WRAP is taking
an important step in achieving this. WRAP’s 2008-11 business
plan contains a target to deliver 40,000 tonnes of mixed plastics
recycling capacity in the UK by 2011.
Householders in the UK dispose of 1.7 million tonnes of mixed
plastics each year - the majority of which currently goes
to landfill. It’s estimated that only around 20,000 tonnes
of this is diverted from landfill each year.
Paul Davidson, WRAP’s Plastics Sector Specialist commented
that, as high quality recycled plastics can sell at anywhere
between 50% and 100% of virgin polymer prices (at about
£900-£1,000 per tonne), there is a potential market worth
£250-£500 million pounds a year that the UK could benefit
from.
“We know that the general public wants to recycle items such
as plastic yoghurt pots, margarine tubs and rigid plastics
like food trays - but, at present, there is only a 5% recycling
rate on these items,” said Dr Davidson.
“At the moment, the UK exports all of its recovered non bottle
plastics - mostly to China,” he said. “If we closed the loop
through increased collections and reprocessing of mixed plastics
here in the in the UK, the economic benefits could be startling.”
Applications to the Mixed Plastics Loan Fund (MPLF) will
be sought until 31st December 2010 to ensure commissioning
deadlines are met.
For selection criteria and full details of how to apply for
the loan - Click
Here
|
