Circular economy-focused investor Closed Loop Partners announced today an investment of $10 million investment into its Closed Loop Circular Plastics Fund from Japanese financial services institution Sumitomo Mitsui Banking Corporation (SMBC), aimed at supporting innovation and infrastructure for the recovery and recycling of plastics in the U.S. and Canada.
The fund, launched in May 2021, was set up to invest in circular plastics solutions including scalable recycling technologies, equipment upgrades, and infrastructure solutions. The fund is focused on advancing the recovery and recycling of rigid and flexible polyethylene (PE) and polypropylene (PP) plastics, which require additional investment to keep more material in circulation, and to help ensure that industry demand for recycled material will be met.
At launch, Closed Loop set a goal to recycle over 500 million pounds of plastic over the fund’s lifespan.
Jennifer Louie, Head of the Closed Loop Infrastructure Group said:
“SMBC joins our corporate partners, portfolio companies, subject matter experts and experienced Closed Loop Partners team to enhance the ecosystem effect that bolsters our private credit and equity solutions. These solutions can help catalyze additional financial participation––accelerating the projects, infrastructure and innovations needed to close the loop on plastics.”
SMBC joins investors that includes Dow, LyondellBasell, NOVA Chemicals, Charter Next Generation, Chevron Phillips Chemical, SK geo centric Co., and SEE in an attempt to shift to a more circular economy for plastics.
Masayuki Takanashi, Group Chief Sustainability Officer (CSuO), Sumitomo Mitsui Financial Group, Inc, said:
“Our team is proud to partner in the Closed Loop Circular Plastics Fund’s catalytic, impact-first effort to accelerate infrastructure, equipment, municipal services, as well as innovation and enabling technologies related to flexible films and specific plastic types.”
Since its launch, the fund has financed various private and public projects including investing in AI waste analytics platform Greyparrot, a loan to recycling company Myplas USA to facilitate the build of a 170,000 square-foot plastic films recycling plant in Minnesota, and equity investment in recycling and reuse company Circular Services.