PureCycle Technologies, Inc. (PCT) focuses on commercializing a patented dissolution process to physically separate the polymer from other plastics, color, and contaminants (the ‘Technology’), originally developed by The Procter & Gamble Company (P&G), for restoring waste polypropylene into resin with near-virgin characteristics, called PureFive resin.
PureFive resin represents the family of recycled resin products the company produces, including ultra-pure resin and other grades used for compo...
PureCycle Technologies, Inc. (PCT) focuses on commercializing a patented dissolution process to physically separate the polymer from other plastics, color, and contaminants (the ‘Technology’), originally developed by The Procter & Gamble Company (P&G), for restoring waste polypropylene into resin with near-virgin characteristics, called PureFive resin.
PureFive resin represents the family of recycled resin products the company produces, including ultra-pure resin and other grades used for compounding to meet customer specifications, which has similar properties and applicability for reuse as virgin polypropylene. PCT has a global license for the Technology from P&G. In April 2023, the company certified as mechanically complete the Ironton Facility, which it expects to have capacity of approximately 107 million pounds per year when fully operational. Commissioning activities are ongoing, but the plant is not yet operating at the expected full capacity.
PCT’s process includes the following steps:
Feed Pre-Processing (Feed PreP) collects, sorts, and prepares polypropylene waste (feedstock) for purification.
Purification is a dissolution recycling process that uses a combination of solvent, temperature, and pressure to return the feedstock to near-virgin condition through a novel configuration of commercially available equipment and unit operations. The purification process puts the plastic through a physical extraction process using supercritical fluids that both extract and filter out other plastics and additives to purify the color, opacity, and odor of the plastic without changing the bonds of the polymer. By not altering the chemical makeup of the polymer, the company is able to use significantly less energy and reduce production costs as compared to virgin resin.
Compounding is a step which can be used on a case-by-case basis. Compounding allows for the modification of the resin to meet the end-user’s qualifications with melt flow, flexibility, clarity and strength being some of the properties that can be tailored through compounding.
PCT intends to build new recycling purification facilities globally, as project financing becomes available. In addition to the Ironton Facility, the company’s first U.S. facility with multiple lines for purification (multi-line facility) is planned to be in Augusta, Georgia (the Augusta Facility), and Feed PreP facilities are planned to be centrally located. The Augusta Facility will be its first scaled up multi-line facility model. Pre-engineering for the design and installation of multiple commercial lines at the Augusta Facility is underway and is expected to create efficiencies across the construction and permitting processes. Furthermore, the company has placed orders for its long-lead equipment for the Augusta Facility, with additional construction progress expected to continue pending timely completion of project financing. The company expects the first international facility plant to be located in the Port of Antwerp in Belgium.
PCT has partnered with suppliers and has built a Feed PreP facility in Denver, Pennsylvania, which began operating in October 2024, to provide the required mix and quality of feedstock necessary to meet its offtake requirements at Ironton and it will be able to source feedstock sufficient to support future operations in the U.S., Europe, and Asia.
The Technology has been evaluated by third parties with a focus on its efficacy and commercial scalability. Certain of the company's strategic partners have conducted testing on PCT’s PureFive resin. In these evaluations, PCT’s PureFive resin compared favorably to virgin polypropylene in common Food & Beverage industry benchmarks for melt flow and mechanical properties, purity, odor, and function (lift decay, hinge break, and impact resistance).
PureCycle’s Solution: Patented Dissolution Recycling Technology
PCT’s recycling technology is a dissolution recycling process that uses a combination of solvent, temperature, and pressure. Waste stream polypropylene is returned to near-virgin condition through a novel configuration of commercially available equipment and unit operations. The dissolution process puts the plastic through a physical extraction process using supercritical fluids that both extract and filter out other plastics and additives to purify the color, opacity, and odor of the polypropylene plastic with minimal controlled alteration of the physical characteristics of the polymer. By not altering the chemical makeup of the polymer, the company is able to use significantly less energy and reduce production costs as compared to virgin resin.
The company's patented dissolution recycling technology results in near-virgin quality and substantially improved odor profile compared to traditional recycled polypropylene. PureFive resin provides its customers with 100% recycled content without compromising appearance, purity, odor, or performance in finished products.
The Product: PureFive Resin
Polypropylene has multiple applications, including packaging and labeling for consumer products, textiles and plastic parts for many industries and, particularly the automotive industry. It is one of the most used plastics in the world due to its flexibility as a living hinge on consumer product lids (e.g., shampoo and condiments) since it typically will not break when bent even after multiple movements and ranges of motion.
PCT’s unique purification process separates colors, odors, other plastics, and additives through a physical separation process. This process and end product quality have been tested and validated by P&G, prospective offtake partners, and independent third-party labs. When compared to virgin resin, PCT’s PureFive resin expresses near identical mechanical properties across Melt Flow Index (a measure of viscosity), Tensile Modulus (measure of stiffness), and Impact Strength (a measure of sudden resistance to force).
PCT has leveraged strategic partners with expertise in operations, the use of additives to improve the physical properties of polymers, and consumer packaged goods companies to conduct early testing to confirm that the product meets the expectations of the end users and offtake partners.
Offtake and Customers
Based on current offtake subscription agreements and letters of intent, PCT intends to market and sell the PureFive resin to a wide range of industries, including but not limited to resin distributors, resin converters, compounders, consumer goods manufacturers, food and beverage producers, textile and toy manufacturers, and personal care goods producers. Polypropylene is used in a variety of end markets, including consumer packaged goods, electronics, automotive, building & construction, household goods, carpets and clothing, and agriculture.
Feedstock Supply
PCT’s efforts to reliably source high quality polypropylene content waste feedstock are ongoing and primarily consist of purchasing pre-sorted polypropylene waste feedstock from various suppliers and purchasing non-sorted plastic waste that PCT itself sorts through its Feed PreP facilities. PCT’s polypropylene waste feedstock sourcing strategy will evolve as the market for polypropylene waste feedstock evolves.
Intellectual Property
Pursuant to the License Agreement, P&G has granted PCT a license to utilize P&G’s intellectual property, and PCT has granted a sublicense of P&G intellectual property back to P&G under the terms of the License Agreement, with a limited right to sublicense by P&G (the Grant Back) subject to volume and geographic restrictions for future plants outside North America. Under the Grant Back, for five years after the effective date of the License Agreement, the aggregate tonnage that could be produced under the Grant Back was capped at 500,000 metric tons per year worldwide. Beyond year 5, that aggregate annual tonnage will be expanded to enable modest expansion across each of the six regions worldwide (generally, North America, Europe, China, Asia, Africa and Latin America).
PCT and P&G amended the License Agreement to, among other things, waive P&G’s clawback exclusivity for plants in North America. With regard to the other regions of the world, subject to the achievement of certain construction and sales deadlines, P&G retains the right to a license exclusivity clawback, and tonnage limitations under the Grant Back are waived if PCT, a PCT Affiliate, or a sublicensee does not meet the following construction and sales timelines: for Europe and Asia start of plant construction must begin by December 31, 2027 and commencement of sales must occur by December 31, 2030; for Greater China and Latin America, construction must begin no later than December 31, 2032 and commence sales by December 31, 2035; and for Africa start of construction must occur by December 31, 2037 and sales must commence by December 31, 2040.
PCT has a limited right to sublicense the technology to PCT affiliates and select third parties with the consent of P&G. All fourteen filed and granted patents are utility patents (as opposed to design patents and applications). All of the patents relate to the same core PCT technology processes. This patent estate covers the proprietary process by which waste polypropylene is converted into ultra-pure recycled polypropylene, specifically the method for separating and purifying polymers from the reclaimed and contaminated polypropylene, polyethylene and other polymers. The License Agreement also governs the ownership of process improvements. Improvements (as defined in the License Agreement) invented by PCT are owned by PCT and are licensed back to P&G for the purpose of selling licensed product, while Improvements (as defined in the License Agreement) invented by P&G or jointly by P&G and PCT are owned by P&G and licensed to PCT. The license may become non-exclusive if PCT fails to make payments or undergoes a change of control without the prior written consent of P&G.
The License Agreement will terminate upon the later of the expiration of the last Licensed Patent (as defined in the License Agreement) to expire and the expiry date of the warrant between PCT and P&G (which was executed on October 16, 2020). Under the License Agreement, fourteen Utility Patents were filed and granted by the United States Patent and Trademark Office (USPTO). Each Utility Patent will expire on the 20-year anniversary of the original application filing date. Together, these fourteen Utility Patents make up the Licensed Patents.
Government Regulation
On June 11, 2024, the company received an additional LNO from the FDA, which expands upon the previous LNO and allows use of PCT's PureFive resin (to the extent made from food grade post-consumer recycled material) in contact with all food types under FDA's Conditions of Use A through H.
The company’s FDA food contact grades are capable of being used for all food types per the conditions of use listed and per all applicable authorizations in the food contact regulations listed in the 21 CFR (Code of Federal Regulations, Title 21).
The company is conducting additional testing and plans to make further LNO submissions for additional post-consumer recycled feedstock sources and expanded Conditions of Use.
PCT is subject to air, water, waste and other environmental, commercial and workplace safety laws and regulations at the federal, state, and local level in the United States, including requirements of the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), and the Federal Trade Commission (FTC).
Other workplace safety rules, such as those governing confined space entry and process safety management, also apply to PCT’s operations, and PCT’s facility is subject to the Occupational Safety and Health Administration (OSHA) inspection. The company’s FDA food contact grades are capable of being used for all food types per the conditions of use listed and per all applicable authorizations in the food contact regulations listed in the 21 CFR (Code of Federal Regulations, Title 21).
The FTC requires that marketing and advertising by PCT and its feedstock suppliers be truthful, non-misleading, not deceptive to consumers, and consistent with the Guides for the Use of Environmental Marketing Claims, 16 C.F.R. Part 260, concerning recycling claims. The federal Lanham Act and federal antitrust laws govern PCT’s business activities and advertising claims.
History
PureCycle Technologies, Inc. was founded in 2015.