Investments: IRC closes Circular Plastics Fund at EUR175 mn; NatureWorks obtains US$350 mn loan for Thai PLA facility

Growth capital platform Infinity Recycling (IRC) has announced the final close of its Circular Plastics Fund I SCSp (CPF), exceeding the fund's EUR150 million target and securing EUR175 million in committed capital from institutional investors and value chain partners worldwide.

IRC says it welcomed an impressive group of institutional investors since the fund's last close in December 2024 including Dutch insurance group ASR, Danish philanthropic association Realdania, ING Sustainable Investments, the sustainable Investments arm of ING, Danish investment and holding company KIRKBI, and the impact investment initiative of Swiss company Après-demain.

The CPF, an Article 9 'dark green' impact fund under the EU's Sustainable Finance Disclosure Regulation, was established to help accelerate the world's transition to a circular economy of materials. It does this by supporting advanced recycling technologies with the scaling up of their technology and the strengthening of their business propositions.

The successful fundraise is testament to the growing enthusiasm amongst institutional investors for impactful investment opportunities in the circular economy, adds IRC.

This important milestone for IRC coincides with the recent passing of the European Packaging and Packaging Waste Regulation ('PPWR'), itself paving the way for advanced recycling to be counted as recycling. By valorising residual waste streams into primary commodities used in the production of new materials, CPF's investments plays a pivotal role in fostering sustainability and decarbonisation of the chemical industry.

To date the CPF has gained significant momentum, investing in five portfolio companies (Pryme N.V., Itero Technologies Limited, Clariter S.A., DePoly S.A., and Ioniqa B.V.) deploying over EUR45 million and with a strong pipeline of transactions. IRC's unique ability to provide both capital and operational expertise has enabled long-term value creation, generating promising returns while making a tangible impact on sustainability.

In other news, biomaterials firm NatureWorks, a manufacturer of polylactic acid (PLA), has announced financial support from Krungthai Bank PCL to optimise the capital structure for the new fully-integrated Ingeo PLA manufacturing facility in Thailand. The financing from Krungthai Bank, Thailand’s third largest bank, amounting to US$350 million, is one of the singular largest loans in the bank’s decades-long history, it adds.

In alignment with its ESG values and sustainable finance solutions, Krungthai Bank funded NatureWorks’ newest manufacturing facility for Ingeo PLA biopolymer, a biobased material used in plastic and fibre applications. The funding will support the construction of the plant and its ongoing operations.

NatureWorks’ second facility will be located at the Nakhon Sawan Biocomplex, the first bio-complex in Thailand. The area has a strong agricultural base that can provide an abundant, locally available feedstock in the form of sugarcane. NatureWorks chose the site for its proximity to where sugarcane is grown, with established infrastructure for processing sugarcane into a sugar feedstock for the fermentation process, and the availability of desired utilities for the plant’s operation.

The new manufacturing facility is designed to be a fully-integrated PLA complex, including production sites for lactic acid, lactide, and polymer. With an annual capacity of 75,000 tonnes of Ingeo biopolymer, it will produce the full portfolio of Ingeo grades and support the rapid market growth across many markets in the Asia Pacific region, including 3D printing, nonwovens for hygiene, compostable coffee capsules, tea bags, flexible packaging, and compostable food serviceware. Ingeo biopolymers produced at this site will be made from sugarcane sourced from farms within a 50-km radius of the Nakhon Sawan site. Construction is on track to support projected start-up activities and full production in 2025.

“This backing from Krungthai Bank not only validates our strategic global positioning within Thailand and the Asia Pacific region but propels us toward continued expansion to support the worldwide bioeconomy,” said Erik Ripple, President/CEO of NatureWorks.

“Thailand is a regional and global leader in driving the development of a global bioeconomy, and commercial banks play a crucial role in driving this transition,” said Suratun Kongton, Chief Wholesale Banking Officer of Krungthai Bank. “We’ve provided NatureWorks with the financing because it is a world leader in manufacturing biomaterials, meets the requirements to drive our country’s BCG model forward, and aligns with our commitments to address climate change and facilitate the transition to a circular economy. NatureWorks is also creating additional high-value downstream opportunities for existing sugarcane farmers in the Nakhon Sawan region.”

“This investment is monumental for NatureWorks, Cargill, and GC as it moves our joint commitment to environmentally friendly bio-chemicals and biomaterials forward at a time where global demand is increasing,” said Narongsak Jivakanun, NatureWorks Board Chair, CEO of PTT Global Chemical Public Company Limited (GC).

“With this infusion of financial support from Krungthai Bank for NatureWorks’ new PLA manufacturing facility, NatureWorks will continue to be competitive in the biomaterials market, pioneering new frontiers for bioplastic applications and advancing biobased solutions with sufficient capacity to capture customer needs across the growing Asia Pacific bioeconomy.”

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