Nestlé launches CHF 2 billion fund to move toward recycled plastics while committing CHF 1.5 billion to pay a premium until 2025

January 17, 2020
Accelerating Materials Innovation More...
Other financial More...
by Gihan Hewage
Very important

While the fund to help develop food-grade recycled plastics will help grow technologies, Nestlé's willingness to pay a premium for new sources of packaging is critical to achieving its 2025 sustainability goals. As it stands today, advanced plastic recycling technologies that result in food-grade plastics are less profitable than incumbent mechanical recycling technologies, resulting in higher-cost recyclates. Although we expect the cost of these technologies to decrease with economies of scale, developers will not reach commercial scales without customers willing to pay premiums at smaller scales. By setting aside CHF 1.5 billion, Nestlé will lead widespread adoption of recycled plastics, as it will be able to tolerate high initial costs.

For the original news article, click here .

Further Reading

Lanxess develops bio-based MDI prepolymer – key for shrinking PU's carbon footprint

News Commentary | August 20, 2020

Feedstock volatility is a long‑term issue that hurts margins and necessitates alternatives in the polymers market. Due to planned and unplanned shutdowns, the price of isocyanates (a key component to PU) reached record highs. At the start of 2020, MDI prices further increased, citing higher raw ... Not part of subscription

Braskem is investing $61 million to expand bio-based ethylene capacity to 260 ktpa

News Commentary | March 02, 2021

This announcement is considered a delay of plans, as the company initially intended to double its capacity after a few years of production over a decade ago. The delay results from the slow‑growing demand for Braskem's materials, as their higher costs have limited their use to niche products. Brands... Not part of subscription

North America's secondary market continues to recover, though polypropylene and films still lag behind

News Commentary | April 30, 2021

April 2021 saw notable scrap price increases across the board; however, polyethylene terephthalate (PET) and high‑density polyethylene (HDPE) continue to recover at a much faster pace than other plastics, especially polypropylene (PP) and films. While traditionally profitable mechanical recycling ... Not part of subscription