Polystyvert Inc. has raised $16 million in a first tranche of Series B funding to help finance its Montreal commercial-scale plastics recycling facility and further the development of its technology.

Part of the funding will become equity for a joint venture to support the approximately 25,000-square-foot commercial plant.

The first round was led by Netherlands-based Infinity Recycling, with Paris-based SWEN Blue Ocean and Chicago-based Earth Foundry. The Series B is planned to raise up to $30 million when the second tranche closes.

Montreal-based Polystyvert has developed a method that recycles polystyrene, a difficult-to-recycle plastic used to make Styrofoam.

Polystyvert will be implementing the technology at its Montreal facility, expected to produce 9,000 tonnes of recycled polystyrene per year. Construction is to start in the spring of 2025, and operations to begin Q2 2026. The anticipated cost is approximately $45 million.

The cost is “quite small for a commercial-size facility,” Nathalie Morin, president and CEO of Polystyvert, told Sustainable Biz Canada in an interview, but achievable because of its technology.

“We don’t have to build those huge industrial complexes that will cost hundreds of millions."

Reaching the commercial stage

Morin said the commercial facility can be relatively compact because Polystyvert’s technology uses low temperatures and pressure. The facility will use a modular design and fit into an existing building.

The new facility will mark a step up from Polystyvert's pilot plant, also in Montreal, that has a capacity of recycling 1,000 tonnes of polystyrene per year. Morin said the company has processed recycled polystyrene for corporate clients in batches of one to 20 tonnes, for use in construction materials or as packaging.

The pilot plant enabled the company to mature its technology and gain confidence in commercialization, Morin said.

Morin explained the Series B fund was divided into two batches because federal and provincial institutions take more time to finalize investment, and other potential investors expressed interest in joining after the first closing. The fundraise will be open until the end of September.

Polystyvert is in discussions with governments and industrial partners to acquire financing for the facility, she said. Governments must lead with regulations to ensure the company’s success, Morin continued.

“We still need the support of the government regarding recycled content, but having a mature technology, a mature market with the right regulation from the government, and being able to provide a solution that is financially profitable is the key.”

Developing Polystyvert’s technology

Polystyvert’s styrene recycling blends the plastic feedstock with an essential oil called cymene. The cymene dissolves the polystyrene, leaving behind contaminants such as paper and metals that are filtered out. Lingering substances such as ink are removed from the cymene mix.

The liquid plastic is turned into a paste and shaped into plastics, while the cymene is reused.

Such a process can cut greenhouse gas emissions by 90 per cent compared to incineration and conventional production of virgin polystyrene, according to an independent life-cycle analysis. It is also water-free and energy efficient.

The funding will also go toward technology development, such as its method of recycling acrylonitrile butadiene styrene (ABS), a plastic found in cars, electronics and toys.

Since December 2023, Polystyvert has piloted ABS recycling. It is also discussing recycling another type of plastic with the help of its partners.

“It’s the start of a new chapter today,” Morin said about the Series B funding.