Greenstar Recycling (Houston, TX) has signed a Memorandum of Understanding to form a joint venture (JV) with Vadxx Energy, LLC (Cleveland, OH) to convert recovered plastic into synthetic crude oil. Through this JV, Greenstar and Vadxx will work together to provide a domestic fuel, and benefit the environment by repurposing recovered plastic products.
“Vadxx will help us recover plastics from the material stream and repurpose them as feedstock for the production of oil,” said Matt Delnick, Greenstar CEO. “This JV will help us better serve our municipal customers by providing a more consistent market value for their plastics that are otherwise largely unmarketable. It will increase recovery rates by pulling more plastics out of landfills.”
Using proprietary processes, Vadxx manufactures synthetic crude oil and natural gas by using raw material feedstock consisting of petroleum-based plastics in a process called thermal depolymerization. Greenstar chose Vadxx as its partner in plastics to energy because of Vadxx’s potential to scale to commercial size and capacity based on Vadxx’s continuous feed process, flexible design and expandable system. “Plastics are made from oil, and Vadxx has figured out how to create the lowest sulfur content crude oil in the world, from a commodity that might otherwise occupy space in landfills,” stated Jim Garrett Vadxx CEO. “We are thrilled to partner with Greenstar, one of the top recyclers in the U.S. The Vadxx equity partnership with its feedstock suppliers is a key component of our business model, which features a low capital investment compared to the expected return from oil sales.”
Greenstar and Vadxx expect that the JV will begin producing crude oil in mid-2012 with the target location for the project in Ohio.
ABOUT GREENSTAR RECYCLING
Greenstar is one of America’s recycling leaders providing sustainable recycling solutions in the recycle processing, commodity upgrading, managed services and commodity trading sectors of the solid waste market. Greenstar launched its North American operations in 2007 and has grown quickly to become one of the largest recycling companies in America. The company handles two million tons of recyclables per year, servicing over 12 million customers through a network of 14 processing facilities with over 10,000 managed services locations.
For more information visit www.GreenstarRecycling.com.
Vadxx has developed proprietary processes that transform discarded petroleum based products, including plastics, tires, other polymer-based products and oils, into synthetic crude oil and natural gas. The oil is sold through an energy marketer who sells the crude to oil refiners to produce gasoline and other products. The gas is utilized to generate electricity. Vadxx operates a crude oil production demonstration plant at its Akron, OH facility.
Source : www.businesswire.com