Green tie-ups: Novoloop/Aether break ground on pilot plant in India for green TPUs; LG Chem/CJ CheilJedang join hands for bio-nylon business

US-based circular economy start-up firm Novoloop has announced the construction of a pilot plant in India, in collaboration with Aether Industries, a publicly listed speciality chemical manufacturer and chemical process development provider. It will demonstrate the scalability of Novoloop's Lifecycling technology that transforms post-consumer plastic waste into monomers for the synthesis of materials such as the company’s Lifecycled thermoplastic polyurethanes (TPUs).

The project will unfold in phases, with the start-up of initial operations commencing in Q1 2024 and culminating in a 70-tonne/year plastic intake capacity by the end of 2024. Products generated from this pilot plant will be made available to customers for trial and commercial release.

Equipped with industrially applicable instrumentation, process controls, and safety systems, it will operate continuously confirming the reliability of this first-of-a-kind Lifecycling process, say the companies. This crucial step will demonstrate the technology in a real-world 24/7 operating environment, paving the way for full-scale production. Additionally, the operations at Aether will validate key techno-economic aspects such as product yield and recovery rates, demonstrating the financial attractiveness of Novoloop's proprietary technology.

Novoloop’s Lifecycling technology provides an economical and sustainable solution to hard-to-recycle plastics. By using highly scalable mechanisms of oxidation to convert post-consumer polyethylene into useful monomers for durable materials, Novoloop expects to provide its products at prices competitive with fossil-based products.

Furthermore, an ISO-compliant lifecycle assessment shows that Novoloop monomers can realise a carbon footprint reduction of up to 91% when compared to the conventional process of producing adipic acid.

“Aether Industries is proud to partner with Novoloop on this transformative project,” said Dr. Aman Desai, Director/Senior VP of Research, Manufacturing, and Operations. “Our combined expertise in chemical manufacturing and Novoloop's innovative circular solution creates an ideal platform to usher in a new era of sustainable plastic management.”

“This pilot plant is a testament to the commitment of the Novoloop team and our partners at Aether Industries to tackle the global plastic crisis,” said Miranda Wang, Cofounder and CEO of Novoloop. “By scaling this technology, we are creating a pathway towards a truly circular world, where plastic waste becomes a valuable resource.”

Novoloop is an emerging leader in plastic circularity, transforming post-consumer plastic waste into performance materials. Headquartered in Menlo Park, California, the venture-backed start-up has raised more than US$25 million and is building and scaling new technologies to reinvent the chemical value chain.

In other news, South Korea’s LG Chem has announced that it signed a set of heads of agreement (HOA) with CJ CheilJedang to establish a joint venture to produce and sell eco-friendly nylon based on biomaterials.

The agreement is expected to allow the two South Korean companies to secure stable business competitiveness by establishing a joint venture that produces bio-nylon from raw materials to finished products.

CJ CheilJedang will produce biomaterials using microbial precision fermentation technology and jointly developed technology while LG Chem will polymerise them with its own technology to produce and sell bio-nylon.

Bio-nylon is used in various fields such as textiles, automobiles, and electronic devices because it is heat-resistant and durable like petroleum-based nylon. In particular, it is produced from biomaterials such as corn sugarcane, which has a significant carbon reduction effect.

Global demand for bio-nylon is expected to grow at an annual average of 29% from 400,000 tonnes in 2023 to 1.4 million tonnes in 2028, driven by global eco-friendly policies.

“This agreement is significant in that the two leading companies in each field are collaborating to transition to a low-carbon business structure,” said LG Chem Vice Chairman Shin Hak-cheol. “LG Chem will continue to promote its plastic business with eco-friendly and low-carbon raw materials to position itself as a leader in carbon reduction.”

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