Vadxx Energy gets financing to build first commercial plant to turn plastic waste into energy
Cleveland-based recycling company Vadxx Energy said it had obtained financing from private equity firm Liberation Capital for its first commercial-scale plant that can convert plastic waste to energy. The agreement will have Liberation Capital funding the first unit and other commercial units. However, financial terms of the deal were not disclosed.
According to Vadxx, the procurement and construction contractor for the plant is Rockwell Automation. It will also manufacture and commission the facility. The first unit will be constructed in Akron, Ohio and is scheduled to be operational early in 2015. The regional operation will have the capacity to recycle nearly 60 tons of waste plastics each day, allowing them to be diverted from disposal in landfills.
For the past few years now, Vadxx has operated a pilot plant at 1/50th scale. The pilot facility enabled the company to optimize the process, educate investors and test potential plastic feedstocks. Vadxx said economic development entities from Northeast Ohio and the state of Ohio has given it substantial support.
Vadxx Chief Executive Officer Jim Garrett said in a statement, "Vadxx is focused on implementing our first commercial unit in Akron successfully, as an important first step toward global expansion. Liberation Capital, Rockwell Automation, feedstock suppliers, and other partners will play key roles in our growth and success."
Information from its website said that Vadxx follows a three-step process in converting recyclable and non-recyclable plastics into useful products. The first step involves acceptance of the plastic material at the site. The second step is the conversion of plastic to energy. Vadxx said that by reversing the plastic creating process, their technology can transform plastic back to three energy products. These are diesel additive, fuel gas which is similar natural gas and inert char which it likens to carbon black. The final step is the shipment of the converted material to their customers through licensed and fully trained third party tank truck haulers.