CHEMICAL MANAGEMENT

Repeats Group B.V. to Build European Plastics Recycling Platform

Ara Partners | January 10, 2022

Repeats Group B.V. announced its launch and plan to build a pan-European plastics recycling platform focused on producing high-quality recycled low-density polyethylene with a €100 million equity commitment from Ara Partners. Ara Partners is a global private equity firm that specializes in industrial decarbonization investments.

Repeats utilizes a best-in-class mechanical process to transform post-commercial plastic waste into high-quality resin suitable for commercial and industrial applications. The company is scaling LDPE recycling capacity throughout Europe to address the shortage of supply compared to the growing demand required to meet industry sustainability and net zero targets, increasing consumer preferences for low-carbon products and stricter regulatory requirements around decarbonization.

Operations will be focused on core European markets characterized by dense population and underserved LDPE recycling capacity. Through a combination of greenfield development, acquisitions and strategic partnerships, Repeats and Ara are committed to building a leading LDPE recycling platform in Europe.

Repeats is led by Greg Rung and a team of LDPE recycling executives who collectively have over 80 years of experience in the plastics recycling industry.  Mr. Rung was a Partner at Oliver Wyman, where he developed growth strategies and implemented integration programs for clients across Europe and emerging markets. The Repeats executive team has successfully built, scaled, and monetized plastic recycling businesses across Western Europe. The team is well versed in the different mechanical and chemical technologies at the forefront of LDPE recycling, and they have strong relationships with European plastic collection agencies, converters and consumer product companies driving growth in the recycled LDPE resin market.  

"The need for an effective, circular solution to the growing plastic waste problem is tremendous, and European businesses, consumers and governments are aligned in working towards higher utilization of recycled plastic. We seek to partner with leading CPG, petrochemical and plastic packaging manufacturing companies to create a high-quality supply source that is widely available throughout Europe. We are proud to partner with Ara, which shares this ambition and has expertise and resources to help achieve our objectives."

 Greg Rung, Repeats' CEO

"The Repeats management team has the operational experience, strategic relationships, and drive to transform the European LDPE recycling market," said Tuan Tran, a Partner at Ara Partners. "They have an outstanding reputation in Europe and we are thrilled to partner with the Repeats team to build a pan-European recycling leader."

"Repeats has the opportunity to facilitate a material reduction in green house gas emissions through replacement of virgin plastic resin with recycled LDPE from its facilities," said Katy Boettcher, a Vice President at Ara Partners. "We believe that the platform will have a meaningful impact on the markets it serves."

About Ara Partners
Ara Partners is a private equity firm specializing in industrial decarbonization investments.  Ara Partners invests in the industrial & manufacturing, chemicals & materials, energy efficiency & green fuels and food & agriculture sectors, seeking to build businesses that provide significant decarbonization impact.  It operates from offices in Boston, Massachusetts, Houston, Texas and Dublin, Ireland. Ara Partners closed its second fund with approximately $1.1 billion in capital commitments in September 2021. 

About Repeats
Based in the Netherlands, Repeats — Recycled PE AT Scale — is a pan-European plastics recycling platform transforming polyethylene (PE) plastic waste into resin suitable for a variety of commercial and industrial flexible plastic applications.  

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CHEMICAL TECHNOLOGY

Ricardo Innovative Climate-Repairing Carbon Negative Technology to Support National Energy Security

Ricardo | July 12, 2022

As part of its mission to support the decarbonisation of the global energy sector, Ricardo, a world-class, strategic environmental and engineering consulting company, has received 3million GBP from the UK Government to design, install and operate a combined heat and power demonstrator plant with a carbon negative footprint which will showcase climate repairing technology. The plant will demonstrate the effectiveness of community scale greenhouse gas removal and clean energy using sustainably-sourced forestry waste. The funding is awarded through the Net Zero Innovation Portfolio under the Department of Business, Energy and Industrial Strategy. Ricardo is leading the consortium delivering the demonstrator plant. The consortium combines an innovative carbon capture system developed by Ricardo with the hot air turbine technology from Bluebox Energy and pyrolysis technology from Woodtek Engineering. The quarter-sized demonstrator plant, which will be located at Holmsted Farm in West Sussex in the UK, will be commissioned and operational in 2023. It will demonstrate not only a highly innovative greenhouse gas removal technology, that in the full-size system can generate renewable heat and electricity for up to 300 local homes and businesses, but also a realistic carbon negative technology that can significantly contribute to net zero targets. “Ricardo is a trusted advisor to governments around the world on climate change policy and the transition to clean energy, and is also well known for its mission to decarbonise the global transport and energy sectors. In partnership with Bluebox Energy and Woodtek Engineering, this project will demonstrate that our innovative and integrated carbon capture system can be used to benefit local communities, bolster the UK’s reputation as a pioneer in negative emission technologies, and provide a sustainable and commercially viable pathway to net-zero while also delivering national energy security.” Tim Curtis, Managing Director, Ricardo Energy and Environment Ricardo’s project is one of several across the UK which will benefit from a share of over 54 million GBP to develop technologies that remove carbon emissions from the atmosphere. Announcing this investment, UK Government’s Energy and Climate Change Minister Greg Hands said: “This 54 million GBP government investment will help establish a greenhouse gas removal industry in the UK, which could be worth billions to our economy, bringing in private investment and supporting the creation of new green jobs.” The technology works by taking sustainably sourced waste wood from domestic timber production and then processing it in three ways: producing biochar (a product similar to charcoal); generating heat and power; and capturing carbon dioxide from the exhaust. The technology, therefore, captures around 95% of the carbon content in the wood. It also produces commercially marketable carbon products: the biochar can be used by farmers to enrich soil and add to animal feed to reduce ruminant emissions. The industrial-grade carbon dioxide can either be used for making low-carbon concrete or in the food and drinks industry to replace carbon dioxide derived from industrial processes which rely on imported natural gas. A full-size system will remove 16,000 tonnes of carbon dioxide per year from the atmosphere. Ricardo has been collaborating with Bluebox Energy since June 2020 to deliver innovative technologies that support the transition to a low carbon future. This project is a further boost to Ricardo’s credentials in tackling climate change and meeting national net zero targets. Ricardo is currently actively supporting clients in Europe in innovative carbon capture technologies and has advised the UK Government on the potential of bioenergy with carbon capture in the UK. Ricardo supports clients across a wide range of industries develop their industrial decarbonisation plans on the route to net zero. About Ricardo Ricardo plc is a world-class strategic, environmental, and engineering consulting company, listed on the London Stock Exchange. With over 100 years of engineering excellence and employing close to 3,000 employees in more than 20 countries, we provide exceptional levels of expertise in delivering leading-edge and innovative cross-sector sustainable products and solutions. Every day, we enable our customers to solve the most complex and dynamic challenges to help achieve a safe and sustainable world. Department for Business, Energy & Industrial Strategy This funding has been made available from the government’s £1 billion Net Zero Innovation Portfolio, which looks to accelerate the commercialisation of low-carbon technologies and systems, through its Direct Air Capture and Greenhouse Gas Removal Innovation Competition. This competition will provide funding for developing technologies that enable the removal of greenhouse gases from the atmosphere in the UK.

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CHEMICAL MANAGEMENT

Callon Petroleum Company Announces Launch of $600 Million Senior Unsecured Notes Offering

Callon Petroleum Company | June 13, 2022

Callon Petroleum Company announced that, subject to market and other conditions, it intends to offer $600 million aggregate principal amount of senior unsecured notes due 2030 in a private offering that is exempt from registration under the Securities Act of 1933, as amended. The net proceeds from the offering, together with borrowings under the senior secured revolving credit facility, are expected to be used to redeem all $460.2 million of the Company's existing 6.125% Senior Notes due 2024 and all $319.7 million of the Company's existing 9.00% Second Lien Senior Secured Notes due 2025. The redemption price of the 2024 Notes is equal to 101.531% of the aggregate principal amount outstanding, plus accrued and unpaid interest to the applicable redemption date. The redemption price of the Second Lien Notes is equal to 100.000% of the aggregate principal amount outstanding, plus an applicable make-whole premium plus accrued and unpaid interest to the applicable redemption date. This announcement is not an offer to purchase or a solicitation of an offer to sell the 2024 Notes or the Second Lien Notes, and it does not constitute a notice of redemption of the 2024 Notes or the Second Lien Notes. The notes and the related guarantees to be offered have not been registered under the Securities Act or any state securities laws and unless so registered, the notes and the related guarantees may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The notes and the related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and outside the United States pursuant to Regulation S under the Securities Act. This press release is being issued pursuant to Rule 135(c) under the Securities Act, and is neither an offer to sell nor a solicitation of an offer to buy the notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the notes and the related guarantees or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful. About Callon Petroleum Company Callon Petroleum Company is an independent oil and natural gas company focused on the acquisition, exploration and development of high-quality assets in the leading oil plays of South and West Texas.

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CHEMICAL MANAGEMENT

FMC Corporation significantly expands biologicals platform with agreement to acquire BioPhero

FMC Corporation | June 30, 2022

FMC Corporation an agricultural sciences company, announced a definitive agreement to acquire BioPhero ApS, a Denmark-based pheromone research and production company. The acquisition adds biologically produced state-of-the-art pheromone insect control technology to FMC's product portfolio and R&D pipeline, underscoring FMC's role as a leader in delivering innovative and sustainable crop protection solutions. BioPhero has pioneered a highly efficient yeast fermentation process for manufacturing pheromones at significantly lower costs and with fewer production steps compared to competitors' traditional chemical synthesis methods. Lower costs expand the pheromone addressable market from today's focus on specialty fruit and vegetables to now include the large row crop market. FMC expects pheromones and pheromone-based products to contribute approximately $1 billion in revenue at above company-average EBITDA margin by 2030. "This acquisition demonstrates our continuing commitment to invest in biologicals and adjacent technologies, expanding our world-class portfolio while advancing sustainable agriculture," said Mark Douglas, FMC president and chief executive officer. "BioPhero is a pioneer in the production of pheromones through a unique, highly efficient bioprocessing method—a game-changer in pheromone manufacturing technology. FMC's broad market access, leadership position in the high-value insecticide market, formulation know-how and application expertise provide significant opportunities to bring sustainably advantaged pheromone technology to more agricultural markets around the world. We look forward to adding an extensive pheromone platform to our biologicals business and welcoming the BioPhero team to FMC." "BioPhero is excited by the opportunity to accelerate our development and the road to market with the objective to make pheromones widely available. Given FMC's leadership position in the development of biological plant health products, manufacturing and formulation expertise, and existing operations in Denmark, we believe FMC is an excellent company to take this business forward. FMC's global market access and significant investments in R&D will accelerate our ability to bring highly advanced pheromone insect control technology to growers around the world." Dr. Irina Borodina, co-founder and chief scientific officer of BioPhero Pheromones can be used in an integrated pest management program to control the buildup of insect populations in farmers' fields by disrupting the insect mating process, reducing overall egg-laying by adults and decreasing the next generation of the target insect population. Pheromones do not have an impact on the environment, promote biodiversity and do not harm beneficial insects, such as pollinators, since they precisely target specific pests. "FMC directs 100 percent of its R&D investments to discover and develop more sustainable products," said Dr. Kathleen Shelton, FMC executive vice president and chief technology officer. "We're excited to add BioPhero's innovative pheromone molecules to our new product pipeline, and we expect to launch five new pheromone products over the next three to five years. The opportunities for advanced biomanufacturing technology extend well beyond insect control. Working together, we can significantly expand the use of fermentation technologies across a wider set of crops targeting a variety of pests, including fungi and weeds." Novo Holding A/S, a world-leading science investor focused on creating long-term value, has supported BioPhero for six years. "Novo Holdings believes that biotechnology is a key component in the transition towards a more sustainable society," said Søren Møller, managing partner at Novo Holdings. "The technology developed by BioPhero is an excellent example of using nature's own pheromones to combat pests in a safe and yet efficient way. Novo Holdings has invested in BioPhero since inception and has renewed its commitment to the company in each financing round. We are very satisfied to see the rapid development of the company, and this sale demonstrates that FMC shares our vision of introducing new sustainable solutions in agriculture." The purchase price of approximately $200 million will be paid at closing. Following regulatory approvals and satisfaction of customary closing conditions, the acquisition of BioPhero is expected to be completed by the end of the third quarter 2022.

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CHEMICAL MANAGEMENT

Origin Materials Wins EPA Green Chemistry Challenge Award for 2022 in Partnership with University of California, Davis

Origin Materials, Inc. | June 08, 2022

The U.S. Environmental Protection Agency has awarded Origin Materials, Inc. the world’s leading carbon negative materials company with a mission to enable the world’s transition to sustainable materials, in partnership with Professor Mark Mascal of the University of California, Davis its prestigious Green Chemistry Challenge Award in the category of Specific Environmental Benefit – Climate Change. Origin Materials and UC Davis together were one of just five 2022 Green Chemistry Challenge Award winners who were honored at a ceremony at the annual American Chemical Society Green Chemistry & Engineering Conference that is taking place in Reston, Virginia from June 6-8, 2022. The award recognizes the technology behind Origin’s patented platform for turning the carbon found in sustainable wood residues into useful materials for a wide range of end products, including clothing, textiles, plastics, packaging, car parts, tires, carpeting, toys, and more, while capturing carbon in the process. At commercial scale, this novel chemistry is expected to produce sustainable and recyclable carbon negative materials at a fraction of the cost of other bio-based technologies, making “net zero” possible and helping customers in a wide range of industries to meet their ESG and decarbonization goals. Origin Co-founder & Co-CEO John Bissell and Co-founder & CTO Ryan Smith began collaborating with Professor Mascal while earning degrees in Chemical Engineering at UC Davis over a decade ago. “Origin’s vision is a world where carbon-negative products and materials are the rule, not the exception, and our technology was built around converting low-cost, non-food, and sustainable feedstock into decarbonized, supply chain ready materials. We are honored to earn the EPA Green Chemistry Challenge Award in partnership with Professor Mascal and the University of California, Davis, as we deploy our platform technology to make ‘net zero’ a reality for a growing number of customers and partners around the world.” Origin Materials Co-CEO John Bissell “Tackling environmental challenges like climate change and the disproportionate impact of pollution in communities with environmental justice concerns is going to take creative and innovation solutions – and sustainable, green chemistry is a critical part of that,” said EPA Office of Chemical Safety and Pollution Prevention Deputy Assistant Administrator Jennie Romer. “Preventing waste, reducing energy use, and avoiding hazardous chemicals, all of which we’re recognizing with our awards today, demonstrate the power and potential green chemistry has to protect human health and the environment while providing benefits to businesses and our economy.” The EPA recognizes green chemistry as the design of chemical products and processes that reduce or eliminate the generation and use of hazardous substances. This year’s winners have developed new and innovative green chemistry technologies that provide solutions to significant environmental challenges, and spur innovation and economic development. About Origin Materials Headquartered in West Sacramento, Origin Materials is the world's leading carbon negative materials company. Origin’s mission is to enable the world’s transition to sustainable materials. For over a decade, Origin has developed a platform for turning the carbon found in inexpensive, plentiful, non-food biomass such as sustainable wood residues into useful materials while capturing carbon in the process. Origin’s patented technology platform can help revolutionize the production of a wide range of end products, including clothing, textiles, plastics, packaging, car parts, tires, carpeting, toys, and more with a ~$1 trillion addressable market. In addition, Origin’s technology platform is expected to provide stable pricing largely decoupled from the petroleum supply chain, which is exposed to more volatility than supply chains based on sustainable wood residues. Origin’s patented drop-in core technology, economics and carbon impact are supported by a growing list of major global customers and investors. About EPA’s Green Chemistry Challenge Awards Since the inception of the awards more than a quarter century ago, EPA and the American Chemical Society, which co-sponsor the awards, have received more than 1,800 nominations and presented awards to 133 technologies that decrease hazardous chemicals and resources, reduce costs, protect public health, and spur economic growth. Winning technologies are responsible for annually reducing the use or generation of hundreds of millions of pounds of hazardous chemicals and saving billions of gallons of water and trillions of British thermal units (BTUs) in energy.

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