PureCycle Ironton, Ohio, facility expects solvent circulation as soon as next week

Apr 07, 2023

Emily Friedman

09-May-2023

HOUSTON (ICIS)–PureCycle Technologies first commercial scale recycled polypropylene (R-PP) facility in Ironton, Ohio, will begin circulating solvent for its dissolution process as early as next week, shared company executives in their most recent earnings call.

Though originally slated for Q4 ’22 commissioning and after overcoming several delays, recycled pellet production is expected by the end of May.

The facility capacity was previously disclosed at 105m lb/year.

Despite these delays, PureCycle still plans to produce 45-75m lb of ultra-pure recycled (URP) resin by the end of the year, and had previously shared the goal of reaching at least a 50% operating rate by 30 September.

In order to meet these output targets, PureCycle has been focusing heavily on securing adequate feedstock supply and is confident in their current position.

Furthermore, the company has built relationships with potential feedstock suppliers globally, such that future projects are well supported and at the same time the Ironton facility has built-in contingency.

As the facility begins production, only high quality post-industrial feedstocks will be used, eventually transitioning to a mix of post-industrial and post-consumer feedstocks.

At present, the Ironton facility has roughly 2-3m lb of processed feedstock in flake form on site, and another 2m lb of unprocessed feedstock on site. The Ironton "PreP" facility, where feedstock is further processed prior to being chemically recycled, has been operational for some time.

When discussing offtake and pricing, company representatives reconfirmed that R-PP pellet prices will likely be north of $1.00/lb and they have structured their agreements with buyers such that they can flex the volume of material sold via contract on the spot market, depending which market conditions are advantageous.

Once the Ironton facility is commissioned, the focus will shift to the development of their Augusta facility, with an announced production capacity of up to 390m lb/year at three lines, with the potential to add an additional two lines in the future. During their 9 May earnings call, company representatives shared that the facility location may actually have the capacity for up to eight lines in total.

Land agreements for the August facility could be completed as soon as 30 June, with several modular units already in construction.

Furthermore, PureCycle also has several international facility plans.

In January, PureCycle and the Port of Antwerp-Burges announced a European R-PP facility in the port's NextGen District located in Belgium. Pre-construction engineering work and permitting for the single line, 130m lb/year facility is ongoing.

The facility is expected to break ground in the first half of 2024, and begin production in the first half of 2026.

In Asia, PureCycle has entered a joint venture agreement with Mitsui in Japan for a facility with two to four lines and is developing plans with SK Geo centric in South Korea for a facility with one line.

When asked what lessons have been learned with the Ironton facility design and commissioning as PureCycle continues planning for additional facilities, company representatives note that the Ironton facility may be over-engineered, in that design decisions with regard to feedstock processing are very robust and actual capacity could exceed the initial nameplate estimate.

PureCycle uses an alkane-based solvent process that removes all the pigments and dyes out of the recycled material and produces a relatively clear product. Unlike other solvent-based processes, PureCycle's process does not produce a by-product. Instead, it uses butane in a closed loop-type system.

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