Some 660 billion PET bottles are discarded globally every year. Eight million tonnes of plastic waste land in the oceans every year, causing considerable environmental pollution along shores and riverbanks. Single-use PET bottles account for much of the waste. To mitigate this environmental burden and support a sustainable circular economy, IFU is financing the Indian recycling company Polygenta Technologies Ltd. (Polygenta), a subsidiary of perPETual Technologies GmbH with DKK 107 million. The German development finance institution, DEG, is investing the same amount.
Using a breakthrough chemical recycling process introduced by perPETual Technologies GmbH, Polygenta manufactures rPET chips and sustainable textile filament yarns for the textile industry using post-consumer PET bottles as feedstock. Its customers include several well-known international global fashion and sportwear brands. Growing awareness of sustainability issues is fuelling demand for products made from recycled materials. The financing is earmarked for the construction of two new production lines at the site in Nashik, Maharashtra, allowing the company to significantly increase its recycling capacity and process more than 200 tonnes a day of PET plastic waste.
Recycling technology to revolutionise the Indian textile market
Polygenta has been producing yarn from 100% used plastic bottles since 2014. Their unique technology to produce yarn by chemically transforming used PET bottles consumes 90% less energy and 65% less water compared to conventional production; greenhouse gas emissions are also around a third lower.
“With the support of perPETual Technologies GmbH, Polygenta has built a world class chemical recycling plant to convert used plastic bottles into high quality products for the textile market. The demand for our products is incredible and the financing from DEG and IFU will enable us to meet more of that demand, more than 200 tonnes per day of product.“
Makarand Kulkarni, CEO and Board Member of Polygenta.
“We are delighted to receive the support of DEG and IFU to partner on our growth plans. This is an important technology for India which will help to revolutionise the Indian textile market by producing the highest quality recycled yarn in the world,” said Chetan Gandhi, CFO of Polygenta.
“It is IFU’s ambition to support the green transition in emerging markets. By participating in the expansion of Polygenta’s recycling business, we are contributing to reducing plastic waste and greenhouse gas emissions, as well as supporting a sustainable circular economy. We look forward to following Polygenta’s progress as they expand further into other geographies and hope this can inspire more companies to look for sustainable solutions,” said Deepa Hingorani, VP, Head of Financial Services and Asia at IFU.
Financing through Denmark’s Green Future Fund
IFU’s financing to Polygenta is provided through Denmark’s Green Future Fund, which is set up to support the green transition in Denmark and abroad. The DKK 25 billion fund is partially managed by IFU.
Moreover, IFU’s contribution to Polygenta’s expansion is in line with the India-Denmark Green Strategic Partnership, which was signed by India’s prime minister Narendra Modi and the Danish prime minister Mette Frederiksen, in 2020.
“We are very pleased to be able to support the India-Denmark Green Strategic Partnership through this investment in Polygenta. We stand ready to continue our efforts within other green investments in India,” said Torben Huss, CEO at IFU.
Polygenta Technologies Limited is a subsidiary of the German technology company perPETual Technologies GmbH. Polygenta has been at the forefront of rPET industry with a strong reputation for high-quality recycled yarn and chips manufactured at its integrated site in Nashik, India. Polygenta has a team of circa 250 people and exports more than 50% of its products in more than 10 countries.