Freepoint Eco-Systems receives $50M loan for plastics recycling facility

Advanced recycler Freepoint Eco-Systems LLC has announced the closing of a $50 million non-recourse project finance facility for its plastic recycling facility in Hebron, Ohio. The company claims the term loan facility, underwritten by ING Capital LLC, is the first of its kind in the developing plastic reclamation space for hard-to-recycle plastic.

Stamford, Connecticut-based Freepoint’s Hebron facility project broke ground in December 2022 and initially targeted a 2024 startup. The company says the facility spans 25 acres and makes use of an existing 260,000-square-foot warehouse.

Also in 2022, the facility, which will use pyrolysis technology to turn plastic scrap into oil, received International Sustainability and Carbon Certification (ISCC Plus). Freepoint claims the site, located about 30 miles east of Columbus in Licking County, will be one of the largest advanced recycling facilities in the world, capable of processing 90,000 tons of material per year.

“We are excited to be partnering with ING in demonstrating that plastic upcycling facilities that utilize new technology have access to the project finance loan markets,” Freepoint Managing Director Jeff McMahon says. “At 180 million pounds per year of plastic waste processing capacity, our Hebron, Ohio, facility is one of the largest commercial-scale facilities in the world, reclaiming waste plastic destined for landfills or incineration and upcycling it into a hydrocarbon-rich liquid from which our customers make new products. We believe that this transaction is an important first step in executing our strategy to build numerous waste plastics upcycling facilities across the globe.”

In a March 2024 update on the project, McMahon said the plant’s construction was expected to be completed that year and had created 200 construction jobs, with 100 full-time circular economy jobs created once the facility began operations. The facility’s startup date is not yet known.

Subha Pasumarti, managing director at ING Capital, says the firm is “thrilled” to close the loan facility for Freepoint’s first commercial-scale facility. “This transaction reiterates ING’s commitment to support clients active in the circular economy and sustainability sectors. We anticipate demand for debt capital in the plastics recycling market will continue to grow as more waste plastic is recovered and recycled worldwide.”