A Leeds startup which has developed an innovative way to convert non-recyclable plastic and bio waste into new plastics and low-carbon fuels is seeking to raise 拢100 million to build its first plant at a site in Humber.
Terrae Novo has already raised a total of 拢7m from Traditum Private Equity to demonstrate its process and gained planning permission on the former BP site at Saltend, near Hull. Ultimately it aims to establish a network of plants around the UK and Europe.
Terrae Novo鈥檚 process brings together a range of existing technologies in an innovative way, and offers a number of key benefits. It uses plastic waste that cannot be recycled using existing processes and has to be either sent to landfill or burnt in energy from waste plants, which are proving to be inefficient and contribute to global warming.
Using the Terrae Novo process, the waste is made into synthetic gas or 鈥榮yngas鈥� and can then be broken down into its original hydrocarbon molecules. Therefore it can be used to create aviation or road transport fuel with a much lower carbon footprint than conventional fossil fuels.
However even greater environmental benefits can be achieved by using it to create the feedstock for new plastic products. Lifecycle analysis shows that by locking in carbon and replacing crude oil, this process would be 鈥榗arbon negative鈥�.
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Established in 2019, Terrae Novo is led by Jason Woods who previously held senior roles in energy and chemical companies including Drax Power, Vattenfall and INEOS. His team have spent two years working with Traditum to further develop the process and draw up an investment proposal to put it into production.
The new plant, situated within the Humber Freeport area, would process around 60,000 tonnes of waste a year and create 25 local jobs with more in the supply chain. It would also generate promising returns for investors, with the risks underwritten by insurance. Terrae Novo has appointed EY to lead the fundraising.
Five million tonnes of plastic is used every year in the UK, with over 1 million tonnes of waste entering UK landfill and over 2.5 million tonnes exported to other countries.
鈥淲e believe our process has the potential to disrupt the traditional waste to landfill and energy markets, and achieve significant reductions in carbon emissions. It also addresses the need to find new sources of recycled fuel and limit the use of food crops, a policy already adopted by the EU and some other countries,” said Woods.
“Thanks to Traditum鈥檚 support, we are now ready to start production. Once the first site is up and running, our aim is to roll it out on a global scale.鈥�
Trevor Sherlock of Traditum (pictured, right, with Woods) added: 鈥淭errae Novo鈥檚 groundbreaking process tackles a number of key issues 鈥� how to deal with plastic waste, reduce carbon use and support our national energy requirements. At the same time it is commercially viable and offers excellent potential returns on investment.
“This shows the positive role that business can play in addressing the big challenges facing society, by encouraging investors, scientists and innovators to work together to find solutions.鈥�